Stephen Groff, Principal & Portfolio Manager, Cambridge Global Asset Management

Focus: North American dividend stocks

_______________________________________________________________

MARKET OUTLOOK

Markets in general are fairly valued. Volatility remains low and overall complacency is higher. There have been significant flows into ‘low volatility’ products (ETFs) which have bid up companies with these attributes to very high prices, elevating their risk profile. We remain cautious in our overall positioning and are finding more value in unique situations, many of which are considered cyclical or have attributes that require more work to analyze.

Top Picks

Walgreens Boots Alliance (WBA.O)

Most recent purchase: Sept. 1 ($81.22)

Walgreens is undergoing a transition to drive improved profitability out of its existing asset base while also finding creating ways to enhance shareholder value. WBA is led by a well-aligned management team with a clear vision and strong track record of excellent operational execution and capital allocation.

Extended Stay America (STAY.N)

Most recent purchase: Sept. 1 ($14.21)

Extended Stay has a simple but effective model centred around provided value to budget-focused leisure and business travelers seeking accommodations for longer periods of time. The business is completing a major asset refurbishment program and systems investment which will result in a material reduction in capital investment spending and a corresponding increase in free cash flow, much of which will be returned to shareholders.

Cash

This is the largest ‘position’ in many of our funds — including almost 30 per cent (29 per cent at last check) in the Cambridge Canadian Dividend Fund.

Dislcosure Personal Family Portfolio/Fund
WBA N N Y
STAY N N Y

 

Past Picks: April 20, 2016

Brookfield Infrastructure Partners (BIP_u.TO)

  • Then: $53.00
  • Now: $63.07
  • Return: +19.00%
  • TR: +22.07%

Allison Transmission Holdings (ALSN.N)

  • Then: $27.56
  • Now: $27.56
  • Return: +0.11%
  • TR: +1.21%

Walgreens Boots Alliance (WBA.O)

  • Then: $51.13
  • Now: $81.70
  • Return: +0.70%
  • TR: +1.62%

Total Return Average: +12.45%

Dislcosure Personal Family Portfolio/Fund
BIP N N Y
ALSN N N Y
WBA N N Y

 

Cambridge Canadian Dividend Class F: Performance as of July 31, 2016

  • 1 month: Fund 2.3%, Index* 3.9%
  • 1 year: Fund 8.9%, Index* 4.0%
  • 3 year: Fund 15.4%, Index*8.1%

Index* S&P/TSX Composite TR

 

Top 5 Holdings – Cambridge Canadian Dividend Class (as of July 31, 2016)

  1. Extended Stay American Inc – 3.95%
  2. Walgreens Boots Alliance Inc – 3.95%
  3. Canadian Pacific Railway Ltd – 3.77%
  4. Brookfield Infrastructure Partners LP – 3.69%
  5. TransForce Inc – 3.66%

 

Blog: http://blogs.ci.com/cambridge/

Website: http://www.ci.com/web/portfolio_mgmt/cambridge/