Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities

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MARKET OUTLOOK
As markets reward, it becomes increasingly important that investors renew their dedication to appropriate portfolio management. First and foremost, is your asset mix in line with stated targets? Do you have appropriate diversification geographically and from a sector and industry standpoint? Is your portfolio properly dollar-balanced? Finally, are you actively working to reduce company-specific risk by filtering in lower beta stock opportunities?

Avoid market timing. This is not an exercise of flicking a switch from risk on to risk off, but rather it’s a dial where you flavour your portfolio to reflect current realities.

TOP PICKS

WALT DISNEY CO (DIS.N)
Latest purchase: January 2018 at $110.

Disney has been repurchased in the Goodreid portfolio. The catalyst is the pending merger with Twenty-First Century Fox. This acquisition essentially takes the shackles off, because the exposure to ESPN and ABC subscriber losses is diluted and, with a more robust media platform, Disney will compete with Netflix and other streaming offerings.

TIME WARNER (TWX.N)
Latest purchase: January 2018 at $92.

Another former holding in the Goodreid U.S. Large cap portfolio, Time Warner was sold early in 2017 at $99 in anticipation of a merger with AT&T. The U.S. Justice Department is attempting to block the merger, with the case currently before the courts. We expect AT&T to prevail, but in the event they don’t, Time Warner represents excellent value here with expected earnings in 2018 of $6.70 per share and a price-to-earnings multiple 20-per-cent below the general market.

HEXCEL (HXL.N)
Latest purchase: October 2017 at $62.

Hexcel is a structural materials company with about two-thirds of its business coming from commercial aerospace. Its major customers, Boeing and Airbus, have record backlogs for airplanes built with lighter, stronger and more sound-proof materials. Earnings are expected to grow at a mid-teens clip through the end of the decade.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
DIS Y N Y
TWX Y N Y
HXL N Y Y

 

PAST PICKS: JAN. 30, 2017

FACEBOOK (FB.O)

  • Then: $132.78
  • Now: $187.12
  • Return: 40.92%
  • Total return: 40.92%

ALPHABET (GOOGL.O)

  • Then: $856.98
  • Now: $1177.37
  • Return: 37.38%
  • Total return: 37.38%

UNITED RENTALS (URI.N)

  • Then: $127.06
  • Now: $182.14
  • Return: 43.34%
  • Total return: 43.34%

TOTAL RETURN AVERAGE: 40.54%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
FB Y N Y
GOOGL Y N Y
URI N Y Y

 

FUND PROFILE

Goodreid’s balanced approach allows investors to participate in the potential growth of equity holdings while mitigating risk through ownership of quality fixed income instruments.

Goodreid’s North American Balanced
Net (after fees) performance as of: Dec. 31, 2017 (incl. reinvested income)

  • 1 year: 10.5% fund, 6.1% index
  • 3 year annualized: 7.5% fund, 4.7% index
  • 5 year annualized: 10.7% fund, 7.1% index

*Index: Globe Canadian Equity Balanced Peer Index Average

TOP HOLDINGS AND WEIGHTINGS

  1. U.S. equities: 40%
  2. Canadian equities: 33%
  3. Canadian fixed income: 17%
  4. Cash: 10%

WEBSITE: http://www.goodreid.com/