The Veritas Next Edge Premium Yield Fund’s position in Shopify Inc. (NYSE, TSX: SHOP) was a top contributor to the fund’s June performance. SHOP rebounded in June as U.S. retail sales data strengthened and investors continued to weigh management’s Q2 revenue guidance. Despite near-term economic headwinds and the company’s projected increased marketing spend, we note that SHOP is still growing at a healthy clip, with first-quarter Subscription Solutions revenues increasing 34% year-over-year and Gross Merchandise Value (GMV) up 21%.
Restaurant Brands International Inc. (NYSE, TSX: QSR), Constellation Software Inc. (TSX: CSU), HydroOne Ltd. (TSX: H) and AtkinsRealis Group Inc. (TSX: ATRL) were also amongst the top performers.
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. The fund 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.
The Veritas Next Edge Premium Yield Fund’s position in Bombardier Inc. (TSX: BBD.b) was its biggest contributor to fund performance in May. At its May investor day, the company laid out its plans to grow its high-margin aftermarket and defense businesses, as well as increase its presence in the pre-owned jet market. Bombardier’s success in building out its backlog and generating free cash flow has created renewed enthusiasm for the company, narrowing its valuation gap against peers.
Shares of Dollarama Inc. (TSX: DOL) continued to gain momentum in May following very strong Q4 earnings in early April. This saw the retailer boost EBITDA by 20% year-over-year on 8.7% same-store sales growth. Dollarama continues to pick up traffic from value-conscious shoppers looking to stretch their budgets in the face of inflationary pressures.
Nutrien Ltd. (TSX, NYSE: NTR), Agnico Eagle Mines Ltd. (TSX, NYSE: AEM) and Rogers Communications Inc. (TSX: RCIb, NYSE: RCI) were also amongst the top performers.
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. The fund 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.
Our Portfolio Manager, Sam LaBell, appeared on BNN Bloomberg with Andrew Bell to discuss how high, sticky inflation is good for commodities, provided the economy continues to hold up.
“Ultimately, we think we’re entering a nice stable period for oil,” Sam said.
The Veritas Next Edge Premium Yield Fund’s positions in Agnico Eagle Mines Ltd. (TSX, NYSE: AEM), Wheaton Precious Metals Corp (TSX, NYSE: WPM) and Lundin Gold Inc. (TSX: LUG) were among the top contributors to Fund performance in March as gold prices crossed US$2,200 per ounce, rising more than 8% on the month. We continue to be constructive on gold prices, given the tight supply and renewed central bank purchases. Gold is also an important hedge against potential inflation and the relative strength of the U.S. Dollar.
At the same time, it is no secret that mining companies are capital and labour-intensive businesses that carry very high operating and geopolitical risks. To counter these negatives, we have chosen our mining picks for their operating consistency and ability to manage costs. We continue to like AEM’s lower-risk mining footprint in Canada, Australia, Finland and Mexico, while WPM benefits from a royalty streaming model that focuses on top-line exposures. The addition of LUG adjusts our positioning towards exploration and development, giving us greater leverage as gold prices rise.
Bombardier Inc. (TSX: BBD.b) and PrairieSky Royalty (TSX: PSL) were also amongst the top performers.
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. The fund 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.
Constellation Software Inc. (S&P/TSX: CSU) was the largest contributor to fund performance in January. With over $500 million in deals lined up for the first quarter of 2024, CSU’s acquisition strategy shows no signs of slowing. To further its growth, CSU has recently upgraded its credit facility limit from US$840 million to US$1.08 billion and moved the facility to an unsecured basis, which we view as a vote of confidence from its lenders.
Other top contributors included ARC Resources Ltd. (S&P/TSX: ARX), CGI Inc. (S&P/TSX: GIB.a), Suncor Energy Inc. (S&P/TSX: SU) and Loblaw Cos Ltd. (S&P/TSX: L).
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. The fund 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.
Our portfolio manager, Sam LaBell, was a guest on BNN Bloomberg to discuss our outlook for the market for 2024. He also discussed rate cuts, why he likes Air Canada over U.S. airlines and his take on gold companies and banks.
“The consumer in Canada is obviously facing headwinds,” Sam said. “We like stocks here in Canada that have a global outlook because we do see some pockets of strength in the global economy.”
Shares of Bombardier Inc. (TSX: BBD.b) rose in December as the Dubai Air Show kicked off and the company highlighted growing interest in its aircraft for military applications. In early January, BBD closed a contract to sell up to three Global 6500 jets to the U.S. army, each carrying a $75 million list price. We continue to like Bombardier’s prospects and free cash flow potential
supported by its current backlog.
Other top contributors included Manulife Financial Corp. (TSX, NYSE: MFC), Loblaw Companies Ltd. (TSX: L), Canadian Pacific Kansas City Ltd. (TSX, NYSE: CP) and Restaurant Brands International (TSX, NYSE: QSR).
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.
The top contributor to the fund in October was Alimentation Couche-Tard Inc (TSX: ATD), which rose after unveiling an updated five-year plan at its October Investor Day. The plan anticipates double-digit EBITDA growth, driven 75% by organic initiatives and 25% by potential acquisitions. On the organic side, the ongoing roll-out of Fresh Food and private labels are pushing up C-store margins, while ATD continues to enjoy very strong fuel margins. ATD remains a best-in-class operator in the retail fuel business.
Other top contributors included Tourmaline Oil Corp (TSX: TOU), Fortis Inc (TSX: FTS), Wheaton Precious Metals Corp (TSX, NYSE: WPM) and Agnico Eagle Mines Ltd (TSX, NYSE: AEM).
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.
Our portfolio manager, Sam LaBell, was a guest on BNN Bloomberg to discuss our outlook for the market.
Individual stocks discussed included Agnico-Eagle Mines Ltd. (NYSE, TSX: AEM), RioCan REIT (TSX: REI.un), Fortis Inc. (TSX: FTS), TransAlta Corp. (TSX: TA), Canadian Natural Resources Ltd. (NYSE, TSX: CNQ), Suncor Energy Inc. (NYSE, TSX: SU) and Cenovus Energy Inc. (NYSE, TSX: CVE).
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.
Our portfolio manager, Sam LaBell, was a guest on BNN Bloomberg to discuss our outlook for the market. He discussed the health of Canadian and U.S. consumers and economies, as well as the third-quarter results for Canadian Pacific Kansas City Ltd. (NYSE, TSX: CP).
Sam said he is looking beyond the short-term issues the railway had this quarter, such as with the Port of Vancouver strike.
Railway stocks are usually correlated with the economy, but in the case of CPKC, it has many opportunities to improve its operations after its merger with Kansas City Southern. “We’re looking for self-help opportunities or things that that company can do that other companies cannot that can give them a better performance and outrun any headwinds that might arise.”
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
