Jason Del Vicario, Portfolio Manager, Hillside Wealth Management, iA Private Wealth
Focus: North American and global growth stocks
Top picks: Kaspi.kz, Calnex Solutions, Curves Holdings
MARKET OUTLOOK:
Our thoughts never waver regardless of the macro backdrop. If anything, we favour challenging economic periods as such periods present high quality assets at prices we find favourable. Our key defining factor of a “high quality” business is one that consistently generates strong returns on invested capital.
We run a concentrated portfolio of 28 global businesses that meet our strict quality criteria. Our top 10 positions represent 75 per cent of our equity weighting. We view multiple currency exposure as a strength (no hedging). We think and behave with a long-term mindset. When one’s investment time frame is decades and not months or weeks, short term factors beyond our control such as interest rates, inflation and geopolitics become irrelevant, as we assume we’ll encounter all sorts of macro regimes over time.
We own a collection of businesses that we feel can compound shareholder wealth strongly over decades. We have added one business in 2025 and have generally been inactive in terms of trading but very active in terms of research.
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TOP PICKS:
Kaspi.kz (KSPI NASD)
A Kazakh-based super app that we’ve featured in the past. The company has a dominant position in their home market where the average user uses the app over 70 times a month so more than twice a day. The company has recently entered the Turkish market through an acquisition and if they are able to replicate their domestic success this should add a second growth pillar for them. An extremely well-run company that we could caution to be sized small given there are unknowns to investing in areas of the world where geopolitical risk can be high. At a PE of 7.5, we believe shares represent strong value at these levels. We have held shares since 2021.
Calnex Solutions PLC (CLX LON)
Calnex is a telecom equipment testing company based in Scotland. They have had a tough time of late given the downturn in telecom CAPEX spending but are market leaders in higher end testing equipment. Assuming we continue to use our phones more and require more data, demand for their products should continue to remain strong. Founder run/owned with no debt, we have held shares since 2022 and added to them through 2023 on weakness. With shares near those levels today, we feel Calnex represents strong forward returns.
Curves Holdings (7085 TOKYO)
This is a new position for us. Most will be familiar with Curves gyms which are gyms targeted to attract middle aged women. While the franchise petered out in North America, it has flourished in Japan. The company boasts around 2000 locations which are attended by over 800,000 members. The company acquired the worldwide master franchise in 2018 thereby controlling the future of the brand. They have also expanded to Europe and added men’s clubs in Japan potentially providing further pillars for growth. At a PE of 16 we feel the valuation is attractive.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| KSPI NASD | Y | Y | Y |
| CLX LON | Y | Y | Y |
| 7085 TOKYO | Y | Y | Y |
PAST PICKS: May 27, 2024
Evolution AB (EVO SWE)
Then: SEK1166.50
Now: SEK651.80
Return: -44%
Total Return: -41%
Alimentation Couche-Tard (ATD TSX)
Then: $80.55
Now: $72.63
Return: -10%
Total Return: -9%
Tobila Systems (4441 TOKYO)
Then: ¥784.00
Now: ¥952.00
Return: 22%
Total Return: 24%
Total Return Average: -9%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| EVO SWE | Y | Y | Y |
| ATD TSX | Y | Y | Y |
| 4441 Tokyo | Y | Y | Y |
