John Stephenson, president and CEO of Stephenson & Company

Focus: North American large caps and resource stocks
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MARKET OUTLOOK
Political risk remains elevated given the new Trump administration. However, the U.S. dollar and U.S. equities remain very attractive and should be bought on market pullbacks. The most attractive sectors of the economy include financials, technology, energy and, when the dust settles, heath care.

TOP PICKS

KKR & CO. (KKR.N)
Last bought on January 27, 2017 at $17.70

  • The cheapest alternative asset manager
  • A reacceleration of the stock market should be a huge benefit
  • Returns in the most recent quarter showed strong acceleration versus the prior quarter

*SHORT* WAL-MART (WMT.N)
Last shorted on January 27, 2017 at $65.64

  • The company’s productivity loop has entered the phase of diminishing returns
  • E-commerce to continue to gain share versus bricks and mortar
  • A border adjustment tax could be very negative for Wal-Mart

*SHORT* URBAN OUTFITTERS (URBN.O)
Last shorted on January 24, 2017 at $26.57

  • The company is struggling to grow with inconsistent execution across its concepts (Urban Outfitters, Anthropologies, Free People)
  • Suffers from high fashion risk
  • Operating margins are declining
  • Traffic in malls remains extremely challenged
     
DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
KKR N N Y
WMT N N Y
URBN N N Y


PAST PICKS: JANUARY 25, 2016

SLATE REIT (SRT_u.TO)

  • Then: $14.19
  • Now: $14.06
  • Return: -0.37%
  • TR: +7.96%

*Short* GOPRO (GPRO.O)

  • Then: $10.59
  • Now: $10.80
  • Return: -1.98%
  • TR: -1.98%

CASH
We have reduced substantially our cash balances.  

TOTAL RETURN AVERAGE: +2.99%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
SRT N N N
GPRO N N N


FUND PROFILE: STEPHENSON & CO. NORTH AMERICAN OPPORTUNITY FUND 

PERFORMANCE AS OF DECEMBER 31, 2016: 

  • 1 Month: Fund 0.74%, Index 1.36%

* Index: S&P/TSX
* Net of Fees


TOP HOLDINGS AND WEIGHTINGS 

  1. Keycorp 4.6%
  2. Alphabet  4.2%
  3. Citigroup 4.1%
  4. Intel 4.0%
  5. Facebook 3.80%


COMPANY TWITTER: @Stephenson_Co
PERSONAL TWITTER: @StephensonFiles
COMPANY WEBSITE: www.stephenson-co.com
BLOG: Strategic Investor