Andy Nasr, vice president and investment strategist at Sentry Investments

Focus: REITs, global equities and macro strategy
_______________________________________________________________

MARKET OUTLOOK
Despite the year-to-date rally, we remain constructive on U.S. and Canadian equity markets, which should offer investors attractive risk-adjusted returns. Although we’re mindful of fiscal policy changes, we have not reoriented our portfolios in anticipation of reform, which could be less impactful than many investors anticipate. While the likelihood of recession remains low, volatility may increase throughout the year due to policy or political risk, which could provide investors with an attractive buying opportunity in domestic and/or international equities. In the interim, asset class diversification and security selection, with an emphasis on well-capitalized issuers, should significantly mitigate portfolio volatility. We continue to leverage our “house style,” which has produced excellent long-term returns, to find compelling equity and fixed-income investments in various geographies.

TOP PICKS

LABORATORY CORP. (LH.N)
The company performs drug diagnostics and clinical testing for various clients, including pharmaceutical companies and managed care organizations. We believe that Laboratory Corp’s infrastructure and expertise will generate substantial free cash flow as laboratory and clinical research is outsourced to minimize drug development timelines and costs.

AUTOCANADA INC. (ACQ.TO)
AutoCanada owns and operates over 50 franchised auto dealerships in Canada. While vehicle sales in Western Canada have declined, we believe that the company is well positioned to consolidate a fragmented industry through acquisition, with an emphasis on diversifying its brand and geographic footprint.   

NEWELL BRANDS (NWL.N)
Subsequent to the acquisition of Jarden, we believe that Newell will be able to deliver substantial free cash flow growth as the company strives to achieve its long-term, low-single-digit sales growth target, and post-acquisition synergies approximating $1 billion.
 

PAST PICKS: MARCH 30, 2016

FORTIS (FTS.TO)

• Then: $40.47
• Now: $44.27
• Return: +9.38%
• TR: +13.56%

CCL INDUSTRIES (CCLb.TO)

• Then: $243.15
• Now: $290.00
• Return: +19.26%
• TR: +20.27%

LIQUOR STORES N.A. (LIQ.TO)

• Then: $7.78
• Now: $9.47
• Return: +21.72%
• TR: +26.25%

TOTAL RETURN AVERAGE: +20.02%