Logistics, Data, and Dividends: Chris Blumas Connects the Dots
Raymond James' Chris Blumas bets on Descartes, Alphabet, and Brookfield Infrastructure to navigate inflation, volatility, and policy risk in 2025.
When markets wobble and policy uncertainty runs high, investors turn to voices of clarity. Chris Blumas, Portfolio Manager at Raymond James Investment Counsel, offers exactly that. With a sharp focus on North American large caps, Blumas cuts through the noise with a strategy built on free cash flow, rock-solid balance sheets, and the ability to weather storms. His top picks this time? Descartes Systems, <a class="tvreplink" target="_blank" href="https://www.tradingview.com/chart/?symbol=Nasdaq%3AGOOG">Alphabet, and Brookfield Infrastructure Partners. Let’s break down why he’s leaning into these three powerhouses while the broader market remains uneasy.
Unpacking the Macro Landscape
Economic uncertainty is nothing new, but the stakes feel higher in 2025. With Donald Trump back in the White House and proposing sweeping tariffs on virtually all U.S. trading partners, the implications are profound. The first time Trump imposed tariffs on China, inflation barely moved. This time, the tariffs are broader and steeper. Yet, oddly enough, inflation in the U.S. remains tame for now.
Blumas believes it could take 12 to 18 months before consumers feel the full brunt of these price hikes. Businesses are already struggling to pass on costs. After the COVID-19 price surges, household budgets are tighter than ever. The Federal Reserve is waiting things out, holding interest rates steady and watching how inflation and employment evolve. It’s a market defined by caution, and investors are walking a tightrope between opportunity and risk.
Volatility Isn’t the Enemy—It’s the Opportunity
In a climate like this, volatility becomes a feature, not a bug. Blumas emphasizes that long-term investors should stay engaged. History favors those who remain invested rather than attempting to time the market. He stresses the importance of sticking with quality—companies that are self-funded, cash-rich, and positioned to grow regardless of the cycle.
Defensive positioning isn’t about retreating. It’s about advancing smartly. Blumas favors companies that don’t rely on outside capital to survive. The goal is to own businesses that can use tough times to create value by acquiring distressed competitors, expanding market share, and growing cash flow.
Descartes Systems: A Hidden Giant in the Supply Chain
Descartes Systems might not be a household name, but in the logistics world, it’s a heavyweight. The company provides software solutions that streamline global supply chains. Over 90 percent of its revenue is generated through a recurring SaaS model, which creates predictability and resilience.
Despite its strong fundamentals, Descartes has seen its share price drop more than 20 percent over the past six months. That slump is largely due to fears around tariffs and global trade uncertainty. But Blumas sees that as a buying opportunity. The company has no long-term debt, sits on over $175 million in cash, and is known for its opportunistic acquisitions during downturns.
Trading at about 40 times trailing cash flows and boasting a free cash flow yield of 2.5 percent, Descartes is not a value play in the traditional sense. It’s a quality growth story, built on discipline and strategy. It’s exactly the kind of stock Blumas likes when the seas get rough.
<a class="tvreplink" target="_blank" href="https://www.tradingview.com/chart/?symbol=Nasdaq%3AGOOG">Alphabet: Still the King of Search, but with a New Battlefield
Alphabet needs no introduction. The parent company of Google is a dominant force in digital advertising, accounting for over 90 percent of its own revenue. Online advertising continues to swell, and Google remains the largest player in that space.
Blumas acknowledges the headwinds. Alphabet is facing increasing antitrust scrutiny in both the U.S. and abroad. There’s also the looming threat of AI-powered competitors who could disrupt traditional search behavior. But Alphabet is not standing still. Its investments in cloud computing and a portfolio of early-stage ventures are future-proofing the business.
What investors may overlook is the massive war chest Alphabet sits on. The company holds approximately $85 billion in cash, which translates to about $7 per share. Its valuation, around 20 times forward earnings with a 3.6 percent free cash flow yield, doesn’t even reflect the hidden value embedded in its non-core businesses.
In a world where cash is king, Alphabet’s fortress balance sheet is a strategic weapon. It gives the company optionality—whether that means acquisitions, buybacks, or expanding its cloud and AI footprint.
Brookfield Infrastructure Partners: Built for the Long Haul
If Descartes represents tech resilience and Alphabet represents digital scale, Brookfield Infrastructure is the poster child for stable, real-world assets. BIP owns and operates a sprawling portfolio of infrastructure assets—utilities, railroads, midstream energy, and data centers.
What sets Brookfield apart is its scale and flexibility. It’s not just another dividend-paying utility. Its global footprint, diversified business lines, and access to capital markets make it a unique beast. The company can recycle capital efficiently, buying underpriced assets, improving them, and selling when the time is right.
BIP trades at around 10 times funds from operations, with a five percent dividend yield and a conservative payout ratio of 50 percent. That’s a compelling mix of income and growth potential. In a market starved for yield but fearful of risk, Brookfield Infrastructure provides a rare combination of both.
Final Thoughts: A Blueprint for Navigating the Fog
Chris Blumas isn’t chasing headlines or hype. His investment thesis is grounded in discipline and durability. In a market defined by tariff uncertainty, inflation anxiety, and global unrest, his picks reflect a calm hand steering the ship.
Descartes offers strategic upside through opportunistic growth in a beaten-down sector. <a class="tvreplink" target="_blank" href="https://www.tradingview.com/chart/?symbol=Nasdaq%3AGOOG">Alphabet brings scale, optionality, and resilience in the digital economy. Brookfield Infrastructure provides yield and long-term stability through tangible assets that the world can’t function without.
For investors looking to navigate uncertainty without sacrificing performance, this trio represents a well-diversified anchor. The takeaway? You don’t need to predict the future to profit from it. You just need to invest in businesses that can shape it.