Alex Ruus, portfolio manager at Arrow Capital Management

Focus: North American stocks

MARKET OUTLOOK:

Global economies are recovering from the COVID recession and the financial markets alongside them. General stock market indices have recovered strongly, but over the coming year to succeed picking undervalued stocks will be much more important than just buying the general market as there are now many overvalued stocks mixed in with the many undervalued opportunities. 2021 is starting to see wide divergences in performance between managers that know how to value stocks and last years all out scramble to just buy growth with no regard for earnings or cash flow.

TOP PICKS:

Alex Ruus' Top Picks

Alex Ruus, portfolio manager at Arrow Capital Management, discusses his top picks: Freehold Royalties, Canfor and Enbridge.

FREEHOLD ROYALTIES (FRU TSX) – A super undervalued owner of oil and gas properties throughout North America. The company trades at half of the valuation of comparable companies and pays a growing five per cent dividend.

ENBRIDGE (ENB TSX) -  North America's largest operator of oil and liquids pipelines, alongside assorted other energy assets. The company has seemingly irreplaceable infrastructure assets that trade at a discount to intrinsic value.

CANFOR (CFP TSX) – One of North America’s largest operators of lumber mills with a low cost position. After a decade of generally low lumber prices and continual harassment by U.S. lumber interests and the U.S. government, Canadian lumber capacity has been severely curtailed, but now the americans are building more houses and they are short lumber, so we are set up for an extended up cycle in lumber prices which makes Canfor very inexpensive.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 FRU TSX Y  Y  Y 
 ENB TSX Y  Y  Y 
 CFP TSX Y  Y  Y 

 

PAST PICKS: March 3, 2020

Alex Ruus' Past Picks

Alex Ruus, portfolio manager at Arrow Capital Management, discusses his past picks: Anthem, Freehold Royalties and Polaris Infrastructure.

FREEHOLD ROYALTIES (FRU TSX)

  • Then: $6.01
  • Now: $9.77
  • Return:  64%
  • Total Return: 77%

POLARIS INFRASTRUCTURE (PIF TSX)

  • Then: $15.31
  • Now: $19.16
  • Return: 25%
  • Total Return: 33%

ANTHEM (ANTM NYSE)

  • Then: $256.38
  • Now: $382.43
  • Return: 49%
  • Total Return: 52%

Total Return Average: 54%

 

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

 

Company Website: NR Conservative Growth LP | ArrowCapital (arrow-capital.com)