A concentrated portfolio of attractively priced large-cap Canadian companies held for their high-quality characteristics
What’s the strategy?
The Canadian Concentrated Value Equity (Laketon) portfolio invests primarily in large-cap Canadian companies priced below their intrinsic value given their long-term opportunities for growth.
The portfolio manager applies a deep fundamental analysis approach to stock selection. The process begins with industry-specific quantitative screens, re-drawing the universe to create a subset of companies with attractive valuations. Rigorous fundamental analysis and due diligence on each company ensues. The portfolio is constructed to capture opportunities that are mispriced or not yet priced into the market, while managing both company-specific and portfolio risks. Typical portfolio characteristics include lower valuation, higher quality, and solid earnings prospects compared to the broad Canadian market as measured by the S&P/TSX Composite Index.
This strategy seeks out under-valued companies that are well-managed with strong balance sheets and have the potential to achieve long-term capital appreciation.
What’s the approach?
Laketon applies proprietary criteria to focus stock selection on opportunities not yet priced into the market. We do deep dive analysis on companies and take meaningful positions in large cap companies we believe are poised to outperform.
Laketon’s dynamic financial models and deep dive analysis into companies seeks to capture opportunities and manage risks that are mispriced or not yet priced into the market. It’s a deep fundamental analysis approach to stock selection that results in concentrated portfolios of large cap stocks.
Why invest in this portfolio strategy?
Ideal for investors seeking exposure to high quality Canadian equities that may have been overlooked by the market and offer long-term opportunities for growth.
The Canadian Concentrated Value Equity (Laketon) portfolio strategy offers Canadian equity exposure in a diversified portfolio across sectors.
It’s a concentrated portfolio of high quality companies added to the portfolio at attractive values and strong potential for capital appreciation
Typical portfolio characteristics
Here is what you can expect to see from the Canadian Concentrated
Value Equity (Laketon) portfolio strategy when compared to its benchmark, the
S&P/TSX Composite Index:
■ Lower valuation, higher quality and solid earnings.[MM1] [WC2]
■ Exposure to at least 7 of the 11 industry sectors.
■ An average of 35 to 45 holdings[WC3] .
■ Pure Canadian equity exposure, avoiding foreign currency risk.
Data for institutional investors
Ryan is the lead portfolio manager of Laketon’s Canadian Concentrated Value equity mandate, managing over $2 billion in Canadian equity assets for GLC.
He joined the company in 2004 and his experience has included stock analysis and portfolio management for several North American equity mandates. In addition to a career focus on deep fundamental stock analysis, Ryan has been actively involved in developing both fundamental and quantitative analysis models for a variety of sectors, Canadian and U.S. equity mandates.
Ryan earned an undergraduate degree in commerce from Dalhousie University and an MBA from Wilfrid Laurier University. He is also a CFA charterholder.
Benchmark sources: Copyright®, FTSE is a trade mark of FTSE International Ltd and is used under license. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); and TSX® is a registered trademark of TSX. Copyright®, MSCI Inc.
Portfolio attributes and rates of return reflect the portfolio strategy used by the Canada Life segregated fund shelf.
Past performance is no guarantee of future results.
There is no guarantee that investment objectives, or risk or return targets discussed in this material will be achieved. No part of this material may be reproduced or redistributed in any form without express written permission of GLC Asset Management Group Ltd. The data provided is for information purposes only. This material is not intended to be read in isolation and may not provide a full explanation of all the topics that are presented and discussed. Information contained in this material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur; economic and market conditions change frequently. This material should not be considered a recommendation or offer to purchase or sell any particular investment.
Composite benchmark is 100% S&P/TSX Composite (effective January 1, 2016). Previously the composite benchmark was 100% S&P/TSX60 Composite.