Our approach to investing begins with more than 20 years of fundamental research experience. Veritas Asset Management was founded to capitalize on the successful fundamental research of our affiliate Veritas Investment Research (‘VIR’). Throughout VIR’s 20+ years of producing independent research, it has proven that detailed, high-quality fundamental research produces better investment decisions. Our goal is to provide our investors with consistent risk-adjusted returns that beat investment benchmarks over the short and long term.
Our portfolios offer concentrated, high conviction positions in companies identified through our research and due diligence work, applying a disciplined and systematic selection process. Through our research, we identify opportunities to profit from mispriced securities, either by buying top-quality companies for long-term capital appreciation or through long-short hedging strategies. While our portfolios are primarily focused on Canadian equities, our portfolio managers also consider opportunities beyond Canada.
We see a stark contrast between the market’s current outlook and its outlook prior to the pandemic. Despite a clear deterioration in growth and inflation forecasts versus pre-pandemic levels, forward valuation multiples for the S&P500 are up more than 25%.
In this month’s commentary, we discuss how we are positioning our portfolios going forward and explain why we are less worried about the Fed tapering, and more about relatively high valuations, rising costs and lofty expectations.