Digging Beyond Profit Margins

Profit margins for the S&P 500 constituents, excluding financials and companies in volatile sectors such energy and materials, have been steadily rising since the end of the 2001-2002 recession (Chart 1). The median 2016 EBITDA margin for this group was 22.6%, an all-time high. The median net margin came in at...

Continue reading

Yield Curves Shifting and Flattening, but No Signs of Recession

We pay close attention to global yield curves. Yield curve inversions (i.e., short rates higher than long rates) have been reliable business cycle peak indicators in the past (see our previous Insight, How We Monitor the Economy). Canadian and U.S. yield curves have converged over the last couple of years...

Continue reading

Most Valuable Brands Fully Valued

We seek to invest in undervalued companies with durable competitive advantages, clear growth prospects and positive industry dynamics. We pay close attention to companies with leading brands and loyal customers (think Apple, Nike) as these companies typically generate high returns on capital and strong free cash flows...

Continue reading


Value Approach

As value investors we tend to be contrarian, investing in undervalued companies that we believe are temporarily out-of-favor but misunderstood. We prefer businesses with strong moats and competitive advantages, led by management teams incentivized to maximize return on capital.

Canada comprises only 4% of global stock market capitalization. Our go anywhere approach provides more opportunities.
Trade Optimization

Proprietary models are used in an attempt to optimize the timing of buys/sells of our investment ideas.

Market Risk Management

Proprietary models are used to monitor numerous global markets and commodities, alerting us to potential bear markets.

Economic Risk Management

Proprietary economic models are used to monitor the business cycles of the major global economies. 


We may consider employing short positions, option positions or other strategies, either opportunistically or for risk management, to reduce volatility, mitigate drawdowns and lower correlations to the overall market.