Alex Ruus, portfolio manager, Arrow Capital Management

Focus: North American equities

MARKET OUTLOOK

2019 has started strong, and while we expect mixed economic news over the coming year, many compelling opportunities remain in the market for those willing to dig. This summer, the U.S. Federal Reserve cut interest rates for the first time in many years, and with a looser monetary policy a significant headwind to the economy has been removed, which will help offset some economic weakness from current trade disputes. With stable and, by historical standards, low interest rates in place, there is a backdrop for good returns for those willing to search for the investment opportunities available. Given continuing fundamental value building among the holdings of the NR Conservative Growth fund, the coming year should be rewarding for holders of the fund.

TOP PICKS

Alex Ruus' Top Picks

Alex Ruus, portfolio manager at Arrow Capital, shares his top picks: Freehold Royalties, Anthem and Polaris Infrastructure.

Freehold Royalties (FRU:CT) – Last purchased on August 26, 2019 at $6.97

A leading owner of Canadian oil and gas royalties. One of the lowest cost producers of energy in Canada that pays a sustainable nine-per-cent dividend and trades at a discount to its intrinsic value.

Anthem (ANTM:UN) – Last purchased on April 25, 2018 at $230

The leading U.S. health care insurance provider operating under the Blue Cross and Blue Shield brand. Strategically positioned to benefit from the need for cost control in the health care system. The company produces prodigious amounts of free cash flow, which translates into growing dividends and share repurchases to return capital to shareholders. The stock is undervalued at 11 times next year’s earnings.

Polaris Infrastructure (PIF:CT) – Last purchased on August 12, 2019 at $13.45

A growing producer of environmentally-friendly electric power in Central and South America, with both geothermal and run-of-river hydroelectric projects in its portfolio. The company pays a sustainable and growing 5.7-per-cent yield and trades at a significant discount to other independent power producers.
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
FRU Y Y Y
ANTM Y Y Y
PIF Y Y Y


PAST PICKS: SEPT. 5, 2018

Alex Ruus' Past Picks

Alex Ruus, portfolio manager at Arrow Capital Management, reviews his past picks: Magna International, Element Fleet Management and United Parcel Service.

Magna International (MG:CT)

  • Then: $69.97
  • Now: $63.69
  • Return: -9%
  • Total return: -6%

Element Fleet Management (EFN:CT)

  • Then: $6.98
  • Now: $10.39
  • Return: 49%
  • Total return: 53%

United Parcel Services (UPS:UN)

  • Then: $124.66
  • Now: $114.36
  • Return: -8%
  • Total return: -5%

Total return average: 14%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
MG Y Y Y
EFN Y Y Y
UPS Y Y Y


FUND PROFILE: NR CONSERVATIVE GROWTH LP

Performance as of July 31, 2019:

  • 1 month: 2.7% fund, 0.2% index
  • 1 year: -0.8% fund, -0.2% index
  • 3 years: 4.4% fund, 4.0% index

Index: TSX
Returns are based on reinvested dividends, net of fees and annualized


TOP HOLDINGS AND WEIGHTINGS

  1. Freehold Royalties: 8.5%
  2. Anthem: 6.8%
  3. Element Fleet Management: 6.3%
  4. Polaris Infrastructure: 5.7%
  5. Microsoft: 5.2%


WEBSITE: arrow-capital.com/nr-conservative-growth