PCJ Canadian Equity Strategy

Highlights

  • Bottom-up fundamental security selection
  • Concentrated portfolios maximize alpha opportunity
  • Excels in periods of high volatility
  • Experienced team focused solely on Canadian equities
  • Effective offset to core and value style managers

Objectives

  • Identify high quality companies with superior opportunities for organic growth

Philosophy

  • Market inefficiencies provide opportunities to add value
  • Earnings growth ultimately drives stock prices
  • Concentrated portfolios maximize value from manager insights
  • Catalysts for organic growth are best identified through independent fundamental research
  • Risk management is integral to creating long-term value

Process

  • Goal: Identify high quality companies with superior opportunities for organic growth
  • Screen using growth variables, e.g.; ROE, earnings momentum
  • Identify catalysts for future growth, e.g.; earnings announcements, restructuring
  • Company meetings: validate research, confirm confidence in management
  • Proprietary ranking system: confidence and quality of growth opportunity

Portfolio Construction & Risk Controls

  • Optimize rewards for risk taken
  • Portfolio concentrated (up to 30%) on best ideas
  • Sector weights evaluated relative to macro market themes
  • Absolute and relative stock and sector limits
  • Continuous monitoring of security specific and total portfolio risk
  • Dynamic risk allocation is used to lock in profits and reduce risk

Portfolio Manager

Founded in 1996, PCJ Investment Counsel Ltd. is an independent privately owned investment manager focused solely on Canadian equities. With over $650 million in total assets under management, the firm has a deep, stable portfolio management team headed by two senior investment professionals whom each have over 25 years of experience managing Canadian equities. PCJ is an affiliate of Connor, Clark & Lunn Financial Group.

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