David Burrows, President and Chief investment strategist, Barometer Capital Management

FOCUS: North American Large Caps

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MARKET OUTLOOK:

We are long term bullish on North American equities though markets will be news-driven in the near term until after the “Brexit” vote. We see equity valuations as attractive relative to little-to-negative yielding sovereign debt and expect equities to be revalued over time.

Top Picks:

Honeywell (HON.N)

last bought June 7- $115.46

A high quality Industrial that has managed to grow EPS at an impressive 12 per cent rate over the past 12 years. They are an enabler of the Internet of Things and we expect this to be a growth driver going forward.

Bristol-Myers Squibb (BMY.N)

Last bought June 7- $74.59

They are the leader in immuno-oncology and can double their revenue over the next 10 years.

Broadcom (AVGO.O)

Last bought June 7- $164.72

Leading semiconductor company with strong exposure to both next generation data centres and mobile phones. Potential for margins to be much higher once they complete the integration of legacy Broadcom.

 

Disclosure Personal Family Fund/Portfolio
 HON Y Y  Y 
BMY  Y  Y  Y 
AVGO  Y  Y  Y 

 

Past Picks:  July 9, 2015

Electronic Arts (EA.O)

  • Then: $70.50
  • Now: $74.52
  • Return: +5.70%
  • TR: +5.70%

Goldman Sachs (GS.N)

  • Then: $204.81
  • Now: $146.19
  • Return: -28.61%
  • TR: -27.52%

UnitedHealth (UNH.N)

  • Then: $119.34
  • Now: $137.87
  • Return: +15.53%
  • TR: +17.00%

Total Return Average: -1.61%

 

Disclosure Personal Family Fund/Portfolio
EA Y Y Y
GS N N N
UNH Y Y Y

 

 

Fund Profile

Barometer Tactical Balanced Pool Class A

Performance as of: May 31, 2016

1 month: Fund 2.1%, Index* 1.5%

1 year : Fund 2.8%, Index*-1.9%

3 year: Fund 8.6%, Index*5.2%

* Index: Globe Tactical Balanced Peer Index

* Based on reinvested dividends and net of fees

Top Holdings

  • Penske 2.95% coupon, June 2020 Bond- 3.54%
  • Franco-Nevada - 3.36%
  • Sleep Country Canada- 3.27%
  • Great Canadian Gaming Corp. 6.25% coupon, July 2022 Bond- 3.09%
  • Milestone REIT - 3.04%

Twitter: @BarometerCapital

Website: www.barometercapital.ca