Canadian Equity Strategies
Our Canadian equity strategies aim to provide long-term capital growth by investing in Canadian companies, offering broad exposure to Canada’s economic opportunities.
Foyston, Gordon & Payne Canadian Equity Funds
Explore our diverse range of Canadian equity investments tailored to meet various investment needs and objectives.
Our Canadian Equity Investment Philosophy
We look to achieve superior investment returns through a disciplined, long-term, bottom-up, value-oriented approach based on detailed fundamental research and analysis.
Understanding Quality
Our quality assessment focuses on key business drivers and financial strength to ensure robust investment decisions.
- We focus on key business drivers such as competitive advantage, pricing, cost structure, and growth, and we assess their predictability.
- We evaluate business performance during economic downturns and subsequent changes to business models.
- We analyze true free cash flow conversion and assess capital allocation history and balance sheet strength.
- We look for a strong track record on governance and shareholder alignment.
Disciplined on Valuation
Our disciplined approach to valuation is geared towards investing when the risk/return profile is most favourable.
- We wait until expectations are low and the risk/return profile is more attractive.
- We assess value relative to the company’s historic valuation, the broader market, and global peers.
- We strive to understand changes in the market and their structural impact on valuation.
- We apply an absolute valuation cap to mitigate downside risk.
Investment Process
- Idea Generation
Our idea generation process includes maintaining a portfolio list and a working list, attending meetings, and participating in conferences to identify potential investment opportunities. - Company Analysis
We conduct thorough company analysis, covering financial metrics, qualitative factors, and valuations, and we complete our Investment Grade Rating (IGR) assessment to ensure a rigorous examination. - Portfolio Construction
We construct portfolios through bottom-up stock selection that drives industry weights, focusing on creating concentrated portfolios with 30 to 50 companies.
Investment Grade Rating (IGR)
Our IGR assessment is a comprehensive framework that evaluates companies based on:
- Business fundamentals
- Growth over the past 10 years
- Financial strength
- Profitability
- Corporate governance
- Share liquidity
Insights
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