Gordon Reid, president and CEO at Goodreid Investment Counsel

Focus: U.S. equities
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MARKET OUTLOOK
The result of the U.S. election is the catalyst for secular change in financial markets. Goodreid believes it will usher in a bond market reversal and a return to a more cyclically oriented equity market. Goodreid is positioned well, with our average bond term in the two-year range and our equity exposure favouring pro-cyclical issues. In addition, our active share in both our Canadian and U.S. portfolios is high, indicating a high degree of reliance on individual stock selection versus the current trend of passive investing.

TOP PICKS

BANK OF AMERICA (BAC.N)
Bank of America is a leading money centre bank and the most levered to a changing interest rate environment. As interest rates rise and a higher level of inflation enter the economy, the yield curve will steepen, allowing net interest margins to rise. This is a longer-term thesis and Goodreid is overweight on this sector.

CELGENE (CELG.O)
Celgene develops, collaborates on and markets disease therapies, primarily in the oncology area. Its pipeline is robust and its flagship drug, Revlimid, a treatment for multiple myeloma, is protected from serious competition until the early part of the next decade. The potential for drug price controls has dropped significantly with the Republican sweep.

TUTOR PERINI (TPC.N)
Tutor Perini is a general contractor heavily involved in major public works construction and the repair of domestic infrastructure. With a backlog of $6.7 billion (representing one and a half years of revenue) and earnings pushing above $2 per share, this issue represents excellent value.
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BAC N N Y
CELG N N Y
TPC N N Y


PAST PICKS:  NOVEMBER 27, 2015

DYCOM INDUSTRIES (DY.N)

  • Then: $86.34
  • Now: $73.23
  • Return: -15.18%
  • TR: -15.18%

PRICELINE GROUP (PCLN.O)

  • Then: $1244.99
  • Now: $1503.68
  • Return: +20.77%
  • TR: +20.77%

TUTOR PERINI (TPC.N)

  • Then: $18.48
  • Now: $26.10
  • Return: +41.23%
  • TR: +41.23%

TOTAL RETURN AVERAGE: +15.60%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
DY N N Y
PCLN N N Y
TPC N N Y


FUND PROFILE: GOODREID NORTH AMERICAN BALANCED COMPOSITE 

PERFORMANCE AS OF: SEPT 30, 2016

  • 1 year: Fund 7.2%, Index* 9.1%
  • 3 year: Fund 9.1%, Index* 6.7%
  • 5 year: Fund 10.2%, Index* 7.3%


TOP HOLDINGS AND WEIGHTINGS

  1. Cdn Equities: 34%
  2. U.S. Equities: 37%
  3. Cdn. Fixed Income: 24%
  4. Cash: 5%

*Index: Globe Canadian Equity Balanced Peer Index Average
*Reinvested dividends/net of fees


WEBSITE: www.goodreid.com