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Fundamental Perspective

PCJ Large Cap Equity

Product 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

Investment Objective

Our strategy is designed to identify high quality companies with opportunities for organic growth

Investment 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

Investment Process

  • Goal: Identify high quality companies with 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 and 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
Quick Facts
Inception Date August 30, 1996
All data as at: May 25, 2018
Sector Allocation
% of Portfolio
Financials 35.50%
Energy 18.47%
Industrials 18.46%
Materials 10.75%
Information Technology 5.46%
Consumer Discretionary 3.99%
Telecommunication Services 3.54%
Consumer Staples 1.83%
Utilities 1.30%
Cash 0.70%
Health Care 0.00%
Real Estate 0.00%
Top 10 Securities
% of Portfolio
Toronto-Dominion Bank 8.76%
Royal Bank of Canada 6.61%
Bank of Nova Scotia 5.88%
Canadian Pacific Railway Ltd. 4.71%
Suncor Energy Inc. 3.87%
Manulife Financial Corp. 3.74%
Waste Connections Inc 3.53%
Brookfield Asset Management Inc. 3.36%
Canadian Natural Resources Ltd. 3.31%
Enbridge Inc. 3.25%
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