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.
• Why he has a cautious outlook for the TSX;
• The biggest challenge for Shopify Inc. (NYSE, TSX: SHOP);
• Why there is pressure on Canadian bank earnings;
• Sectors that we like, including Consumer Staples (grocers), REITs and Utilities.
• Canadian Tire's (TSX: CTC.a) weak sales and financial services exposure;
• Brookfield Corp.'s (NYSE, TSX: BN) problems in real estate;
• Of the Big Six Canadian banks, why Canadian Imperial Bank (NYSE, TSX: CM) and Bank of Nova Scotia (NYSE, TSX: BNS) are the weakest;
• Why Air Canada (TSX: AC) looks fully valued.
Sam Labell is an Advising Representative with Veritas Asset Management Inc., an Investment Fund Manager, Portfolio Manager and Exempt Market Dealer registered in the provinces of Ontario and Manitoba. The opinions and statements expressed by Sam in his appearance are his personal views and do not necessarily reflect those of the Veritas Group of Companies. They are effective as at the date of the broadcast only and may be subject to change.
Suncor Inc (TSX, NYSE: SU) was the top contributor in the month, as it reported its second quarter, which included $2.7 billion of adjusted funds from operations and $1.4 billion in returns to shareholders, split roughly 50/50 between dividends and share buybacks. We continue to like SU’s free cash generation.
Other top contributors included Canadian Natural Resources Ltd. (TSX, NYSE: CNQ), Alimentation Couche-Tard Inc (TSX, NYSE: ATD), CGI Inc (TSX: GIBa, NYSE: GIB) and Boardwalk REIT (TSX: BEI-u).
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation, and uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.