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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: Aug 17, 2018
Sector Allocation
% of Portfolio
Financials 34.32%
Energy 19.63%
Industrials 15.95%
Materials 8.76%
Information Technology 6.19%
Consumer Discretionary 4.11%
Telecommunication Services 4.02%
Consumer Staples 3.20%
Utilities 1.45%
Cash 1.29%
Real Estate 1.07%
Health Care 0.00%
Top 10 Securities
% of Portfolio
Royal Bank of Canada 7.88%
Toronto-Dominion Bank 7.77%
Bank of Nova Scotia 5.95%
Enbridge Inc. 4.08%
Canadian Pacific Railway Ltd. 4.04%
Canadian Natural Resources Ltd. 3.85%
Suncor Energy Inc. 3.68%
Bank of Montreal 3.66%
Waste Connections Inc 3.09%
Brookfield Asset Management Inc. 3.07%
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