Alex Ruus, portfolio manager at Arrow Capital Management
Focus: North American stocks

MARKET OUTLOOK

The spread of COVID-19 has caused the first major market correction in several years. It will have a negative effect on economic growth in the short term, which is being reflected by the correction. The pullback and associated volatility is providing some attractive investment opportunities for those willing to look through the short term.

TOP PICKS

Alex Ruus' Top Picks

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

FREEHOLD ROYALTIES (FRU TSX)
Last purchased on Feb. 28,  2019 at $5.80.

A leading owner of Canadian oil and gas royalties, Freehold is one of the lowest-cost energy producers Canada. It pays a sustainable 10.4 per cent dividend and trades at a discount to its intrinsic value.

POLARIS INFRASTRUCTURE (PIF TSX)
Last purchased on Aug. 12, 2019 at $13.45.

Polaris is 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 5.2 per cent dividend and trades at a significant discount to other independent power producers.

ANTHEM (ANTM NYSE)
Last purchased on April 25, 2018 at $230.

Anthem is the leading U.S. healthcare insurance provider, operating under the Blue Cross and Blue Shield brands. It’s strategically positioned to benefit from the need for cost controls in the healthcare 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 10 times next year’s earnings.

 

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

 

PAST PICKS: NOV. 28, 2019

Alex Ruus' Past Picks

Alex Ruus of Arrow Capital reviews his past picks: Element Fleet, Microsoft and Enbridge.

ELEMENT FLEET MANAGEMENT (EFN TSX)

  • Then: $11.48
  • Now: $12.69
  • Return: 11%
  • Total return: 11%

MICROSOFT (MSFT NASD)

  • Then: $152.32
  • Now: $164.51
  • Return: 8%
  • Total return: 8%

ENBRIDGE (ENB TSX)

  • Then: $50.46
  • Now: $50.70
  • Return: 0.5%
  • Total return: 2%

Total return average: 7%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
EFN Y Y Y
MSFT Y Y Y
ENB Y Y Y

 

FUND PROFILE

Nr Conservative Growth LP
Performance as of Jan.31, 2020

  • 1 month: -3.4% fund, 1.74% index
  • 1 year: 6.22% fund,  14.98% index
  • 3 years: 0.98% fund,  7.21% index

INDEX: TSX Total Return.
Returns are based on reinvested dividends, net of fees and annualized.

TWITTER: @ArrowCapital
WEBSITE: arrow-capital.com