Investment process


Investment process

Our portfolio managers follow the principles of the value-based approach developed by the father of fundamental analysis, Benjamin Graham, and followed so successfully by his renowned student Warren Buffett. Applying this method, our managers search foremost for undervalued investments in profitable, quality businesses with robust balance sheets. We are particularly drawn to dividend-paying stocks and our vision is focused on the long-term.

Our stock selection process within the investment universe uses a bottom-up fundamental analysis. It is intended to be rational and is executed with rigor, discipline and independence.


Each year, we produce approximately 300 detailed independent research reports and updates on Canadian and global public companies. Our main assessment criteria are: valuation multiples, balance sheet, profitability, and dividends. Research report presentations and analyst ratings are discussed at investment committees that are held once or twice a week. For idea generation, we use a combination of quantitative filters and qualitative analysis (competitors, suppliers, customers, news).

Portolio construction

Following the investment committees, portfolio managers meet to discuss the ratings, give their final recommendation and update the portfolios. Based on our 5-level rating system (1=strong buy signal, 2=buy 3=hold, 4=reduce and 5 = sell), a security will only enter our portfolio if it receives a 1 or a 2. Our decision-making process is collegial and our portfolios are a reflection of our best ideas, so they are concentrated (between 25 and 45 positions, equally weighted).

Buy and sell

As we keep a long-term view, the turnover of our portfolios is low (< 20% annually). We purchase a new security once its rating reaches or surpasses a 2 on a scale of 1 to 5. We will exit a security if the market price is overvalued (high price-to-earnings ratio), if we observe a deterioration in the balance sheet, or following a take-over.

Portfolio monitoring and Risk management

Following the release of quarterly earnings, the research reports and ratings given by our analysts are updated and presented to the next investment committee.

Our portfolios are monitored in real time (performance, security weights, ratings) through our internal integrated portfolio management system (IPM). Our system allows us to model and track portfolio constraints before and after any transaction (% by security, sector, cash level, market capitalization, restrictions on a specific security, etc.).