Bryden Teich, portfolio manager at Avenue Investment Management

Focus: North American equities
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MARKET OUTLOOK

After the return of volatility in 2018, we are still positive on stocks and took an opportunity to add to some positions during the market weakness at the beginning of February. Growth remains strong around the world which we expect to result in another year of strong corporate earnings. Inflation also remains under control despite recent fears that wage inflation is heating up in the United States.  

TOP PICKS

ALIMENTATION COUCHE-TARD (ATDb.TO)
We like Couche because of its strong earnings growth after its recent acquisitions. It is well diversified outside of Canada with 85 per cent of gross profit being generated between the U.S. and Europe. There is still a large opportunity for it to continue to consolidate the gas bar/convenience store space as it remains highly fragmented south of the border. Shares trade at 15 times earnings and yield is 0.7 per cent.

BROOKFIELD BUSINESS PARTNERS (BBU_u.TO)
Brookfield Business Partners is the private-equity arm of Brookfield Asset Management. It has a very strong management team that made a number of smart transactions over the past year to increase value for unitholders.

ENBRIDGE (ENB.TO)
Enbridge has come under pressure recently because of higher interest rates and its debt load. We think with its planned asset sales, it will put concern over their funding profile to rest. It pays a strong dividend yield of 6.4 per cent and we think it has gained a very diversified network after its acquisition of Spectra last year.
 

PAST PICKS: JANUARY 12, 2018

CVS HEALTH (CVS.N)

• Then: $78.78
• Now: $67.20
• Return: -14.69%
• Total return: -14.16%

BLACKSTONE GROUP (BX.N)

• Then: $35.39
• Now: $33.56
• Return: -5.17%
• Total return: -2.72%

ALIMENTATION COUCHE-TARD (ATDb.TO)

• Then: $65.11
• Now: $62.56
• Return: -3.91%
• Total return: -3.91%

TOTAL RETURN AVERAGE: -6.93%