Full episode: Market Call for Friday, August 16, 2019
James Hodgins, president and chief investment officer at Curvature Hedge Strategies
Focus: Small- and mid-cap stocks
We remain very bearish on risk assets as the end of the record bull market that began in 2009 comes to a close. The misallocation of resources during bubble phases is cumulative in nature. Fixed Income markets are screaming global recession as most of the worlds debt markets are in inversion and many have negative yields.
CHORUS AVIATION (CHR.TO)
We like Chorus for its ultra-safe yield now that their contract with Air Canada has been extended out to 2035. Even in a recession, Chorus gets paid. Assuming the yield trades down to 5 per cent implies a $10 stock price.
MAG SILVER (MAG.TO)
MAG is one of the highest-grade developers in the world with recent step out holes indicating an exciting new zone. It’s likely to be eventually taken over by its partner Fresnillo. We could see over $23 on a takeover.
LUNDIN GOLD (LUG.TO)
Another world class asset formerly owned by Aurelian, Lundin is initially pursuing a scaled-back mine plan. However, we believe future exploration upside could double the current resource and stock price.
PAST PICKS: NOV. 27, 2018
CORBY SPIRIT AND WINE (CSWa.TO)
- Then: $19.23
- Now: $17.59
- Return: -9%
- Total return: -4%
CIPHER PHARMACEUTICALS (CPH.TO)
- Then: $2.15
- Now: $1.21
- Return: -44%
- Total return: -44%
SILVERCREST METALS (SIL.V)
- Then: $3.09
- Now: $7.37
- Return: 139%
- Total return: 139%
Total return average: 30%
Curvature Fund LP
Performance as of: July 31, 2019
- 1 month: -0.13% fund, 0.15% index
- 1 year: -9.38% fund, -0.17% index
- 3 years: -3.43% fund, 4.01% index
INDEX: TSX Composite.
Returns are based on reinvested dividends, net of fees and annualized.
- Chorus Aviation: 3.42%
- Knight Therapeutics: 3.37%
- Goeasy 5.75% 07/31/2022 Bond: 2.62%
- MAG Silver: 2.36%
- SilverCrest Metals: 1.58%