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Welcome to the RBC Global Asset Management site for Institutional Investors

In order to proceed to the site, please accept our Terms & Conditions.

This RBC Global Asset Management (U.S.) Website is intended for institutional investors only.

For purposes of this Website, the term "Institutional" includes but is not limited to sophisticated non-retail investors such as investment companies, banks, insurance companies, investment advisers, plan sponsors, endowments, government entities, high net worth individuals and those acting on behalf of institutional investors. The Website contains information, material and content about RBC Global Asset Management (collectively, the “Information”).

The Website and the Information are provided for information purposes only and do not constitute an offer, solicitation or invitation to buy or sell a security, any other product or service, or to participate in any particular trading strategy. The Website and the Information are not directed at or intended for use by any person resident or located in any jurisdiction where (1) the distribution of such information or functionality is contrary to the laws of such jurisdiction or (2) such distribution is prohibited without obtaining the necessary licenses and such authorizations have not been obtained. Investment strategies may not be eligible for sale or available to residents of certain countries or certain categories of investors.

The Information is provided without regard to the specific investment objectives, financial situation or particular needs of any specific recipient and does not constitute investment, tax, accounting or legal advice. Recipients are strongly advised to make an independent review with an investment professional and reach their own conclusions regarding the investment merits and risks, legal, credit, tax and accounting aspects of any transactions.

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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

Checklist

We use an initial checklist that rewards characteristics that many good stocks have in common while penalizing those that many likely poor performers share.

Fundamental analysis

We use fundamental analysis to focus on good quality companies with attractive returns on capital and appropriate financial and operating leverage.

Scenarios

We understand a range of fundamental scenarios for each position and avoid anchoring positions around a single forecast.

Technical analysis

We have a strong appreciation for technical analysis, utilizing both absolute and relative strength as a foreshadowing of potential shifts in the stock market.

Construction

We construct the portfolio to reward good stock selection and avoid heavily relying on the correctness of a strong point of view.

Decision-making process

Our decision-making process is ongoing and constantly circling through the process.

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.

three types of companies buckets en

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.

Forward Earnings

Valuation Range

Below average Average Above average
Optimistic case Caution
Base case Fairly Valued
Pessimistic case Opportunity

Fair value generally grows with passage of time unless buiness is facing structural or competitive decline

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