Meridian Contrarian Fund on BlackBerry Limited
Thesis
Meridian believes BlackBerry's QNX embedded operating system is a significantly underappreciated asset with broad adoption across automotive, industrial and medical applications. Increasing software complexity in vehicles and connected devices creates a secular growth opportunity, while legacy business headwinds have begun to abate. Strong quarterly results provided evidence of improving operations and highlighted potential exposure to physical AI and robotics. The fund added early in the quarter, later trimmed into appreciation, and still sees the company in the early stages of a durable growth recovery.
“We retain a meaningful position and believe that BlackBerry is in the early innings of a durable growth recovery.”
Key risks
- BlackBerry has faced legacy-business weakness following its failed smartphone pivot.
- The company's prior cybersecurity acquisition was unsuccessful.