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.
Since the end of June, global equity flows have been negative and F23 earnings estimates for the S&P 500 are down 7%, yet the index has rallied. We chalk the move up to two things: lower discount rates and higher risk tolerance, at least on the part of some investors. Meanwhile, Treasury and bond markets are signalling risk-off.
Certainly, staying invested allows investors to participate in the current rally, however long it holds up. We nevertheless advise doing some work now to de-risk portfolios in preparation for tighter monetary conditions and the earnings headwinds ahead.