Based in Toronto, Canada, our team has a long track record of successfully managing North American equity portfolios. We invest in the strategies we manage alongside our clients.
- Collegial, systematic, iterative and repeatable
- We are strongly committed to understanding a wide variety of outcomes for the stocks we follow, based on scenario analysis leading to favourable risk/reward trade-offs, and seeks to deliver strong risk-adjusted results over the long-term
Portfolio positioning – structured according to opportunity
We think about companies in three buckets: those with stable cash flow, higher growth than their peers and sensitivity to the business cycle.
Companies that pass our “good company” checklist are put on this grid. We build portfolios from the “Opportunity” and “Fairly Valued” boxes, which include companies trading at below-average valuations on pessimistic earnings valuations. We avoid companies trading at a high multiple on an optimistic earnings outlook, as there often isn’t much upside optionality available.
|Below average||Average||Above average|
|Base case||Fairly Valued|
Fair value generally grows with passage of time unless buiness is facing structural or competitive decline