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Fundamental Perspective
 

PCJ Small 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 small capitalization companies with superior 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 with a market capitalization ranging from $100 million to $1.5 billion.
  • 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 July 31, 2000
All data as at: Dec 07, 2018
Sector Allocation
% of Portfolio
Materials 24.06%
Energy 18.49%
Industrials 18.45%
Real Estate 12.63%
Consumer Discretionary 7.60%
Consumer Staples 6.04%
Information Technology 4.68%
Health Care 2.53%
Cash 2.10%
Financials 1.29%
Communication Services 1.16%
Utilities 0.97%
Top 10 Securities
% of Portfolio
Badger Daylighting Ltd. 3.04%
InterRent REIT 2.72%
SSR Mining Inc 2.67%
Kinaxis Inc. 2.62%
Gran Tierra Energy Inc. 2.60%
Kelt Exploration Ltd. 2.59%
Cargojet Inc 2.51%
NuVista Energy Ltd. 2.51%
Boyd Group Income Fund 2.41%
Interfor Corporation 2.39%
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