Stephen Groff, principal and portfolio manager at Cambridge Global Asset Management
Focus: North American dividend stocks
_______________________________________________________________

MARKET OUTLOOK

Valuations and risk levels remain elevated. We are holding higher levels of cash across the Cambridge Dividend Suite of funds. We remain disciplined in following our bottoms-up process for evaluating businesses and are finding attractive investment opportunities globally despite a less attractive market environment. 

TOP PICKS

PRAXAIR (PX.N)

  • High-quality global industrial business with a business model capable of generating attractive and consistent returns on invested capital.
  • Linde merger enables them to drive material incremental value for shareholders.
  • Management are solid executors and very good stewards of shareholder capital.
  • Most recent trade: Buy on August 30 at $130.64

VIPER ENERGY PARTNERS (VNOM.O)

  • The capital light business model is attractive as it leverages the capital of producers on their land.
  • Cash flow is returned to shareholders through an attractive & growing dividend.
  • Viper has a beneficial relationship with Diamondback Energy, which helps to accelerate development and drive incremental investment opportunities.
  • Most recent trade: Buy on August 30 at $16.60

FLUOR (FLR.N)

  • Fluor is a high-quality global engineering and construction firm.
  • Their scale, vertical integration, and historical execution has enabled them to earn attractive returns over time.
  • Recent end market weakness and uncharacteristic operational issues have created an opportunity for longer term-oriented shareholders.
  • Most recent trade: Most recent trade on August 30 at $38.63
     
DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
PX N N Y
VNOM N N Y
FLR N N Y

PAST PICKS:  SEPTEMBER 7, 2016

WALGREENS BOOTS ALLIANCE (WBA.O)

Some position resizing but no major changes.

  • Then: $82.88
  • Now: $81.76
  • Return: -1.35%
  • Total return: 0.47%

EXTENDED STAY AMERICA (STAY.N)
The position size was reduced into the high teens on less attractive risk/reward.

  • Then: $14.41
  • Now: $19.16
  • Return: 32.96%
  • Total return: 39.45%

CASH

TOTAL RETURN AVERAGE: 13.30%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
WBA N N Y
STAY N N Y

PAST PICK UPDATES

STORE CAPITAL CORP. - The position was added to as the shares pulled back from the mid $20’s down to $20. The position was resized lower as the shares have rebounded.

METRO - The position was trimmed when the shares rebounded into the mid $40’s on less attractive risk / reward.


FUND PROFILE

Cambridge Canadian Dividend Fund Class F
** Part of the Cambridge Dividend Suite of funds **
Performance as of: July 31, 2017

1 Month: -1% fund, 0.1% index
1 Year: 8.7% fund, 6.8% index
3 Year: 10% fund, 2.6% index
*Index: S&P / TSX Index

TOP HOLDINGS AND WEIGHTINGS

  1. Store Capital Corp. - 4.37%
  2. Fairfax Financial Holdings - 4.20%
  3. TFI International - 4.07%
  4. Canadian Natural Resources - 3.86%
  5. Walgreens Boots Alliance - 3.77%


WEBSITE: www.ci.com