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.
Coming into 2022, prevailing wisdom held that strong household balance sheets and sustained reopening spending would be counterweights to rising interest rates at the Fed. With more than two thirds of North American GDP still driven by Personal Consumption Expenditures (PCE), these arguments were at least plausible. In May, however, a series of corporate profit warnings have shaken confidence in the consumer, with key companies citing slowing demand and higher costs in the face of sustained inflation.
Our market commentary also contains links to our performance sheets, including which positions contributed the most to last month's performance (Canadian Equity Fund: Suncor and Capital Power; Absolute Return Fund: SNAP and Carvana).