Oct 30, 2017
Top Picks from Stephen Groff, Jordan McNamee and Danesh Rohinton
BNN Bloomberg
Stephen Groff, principal and portfolio manager at Cambridge Global Asset Management
Jordan McNamee, analyst at Cambridge Global Asset Management
Danesh Rohinton, analyst at Cambridge Global Asset Management
FOCUS: Canadian and global equities
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INVESTING IDEAS
- What goes into the research process of investing in a stock?
- How do you research a stock?
- How do you debate the idea with the team?
TOP PICKS
Stephen Groff – Auto Trader (AUTO.LN)
High-quality business with their strong brand, network effect and low capital intensity, resulting in strong free cash flow per share growth. Macroeconomic events in the U.K. and competitive concerns have resulted in a meaningful derating of the shares. At current prices, we believe the issues are priced in and view the risk/reward as attractive for investors with a longer time horizon.
Jordan McNamee – Palo Alto Networks (PANW.N)
Share gainer in a growing market. Free cash flow is +20 per cent while trading under 13 times free cash flow. Due to execution issues in early 2017 investors are still skeptical they can outgrow the market, hence the valuation discount. Management has a very strong track record. Following considerable due diligence, we are comfortable the sales problems early last year are behind them and see this as a compelling value.
Danesh Rohinton – Athene Holding (ATH.N)
Leading fixed annuity platform in the U.S. in a growing market with long-term demand from aging demographics. No legacy issues distracting management or impairing the financial performance of the company. Considerable dry powder on the balance sheet to accelerate growth both organically and through acquisitions.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AUTO | N | N | Y |
| PANW | N | N | Y |
| ATH | N | N | Y |
FUND PROFILE
Cambridge Canadian Dividend Class F
Performance as of: September 30, 2017
1 Month: 1.9% fund, 3.1% index
1 Year: 10.9% fund, 9.2% index
3 Year: 11.4% fund, 4.5% index
*returns are based on reinvested dividends and net of fees
TOP HOLDINGS AND WEIGHTINGS
- Fairfax Financial Holdings Ltd: 5.4%
- Canadian Natural Resources Ltd: 3.9%
- TFI International In: 3.6%
- Store Capital Corp: 3.6%
- Walgreens Boots Alliance Inc: 3.6%
WEBSITE: www.ci.com
