Full episode: Market Call for Wednesday, February 14, 2018
Stephen Groff, principal and portfolio manager at Cambridge Global Asset Management
Focus: North American dividend stocks
We’ve maintained elevated levels of cash across funds due to fewer attractive investment opportunities. We view the recent volatility as healthy, given the considerable speculation seen in the market lately. Please visit the Cambridge Global Asset Management Blog for our market insights.
We’ve been finding good opportunities to invest lately. This has resulted in cash positions coming down across the different funds.
BLACK STONE MINERALS (BSM.N)
Black Stone is a high-quality royalty business that’s well-diversified geographically and has a long history of prudent capital allocation. We view the shares as attractively valued. Most recent purchase was on Feb. 13, 2018 at $17.40.
Verizon benefits from substantial scale in U.S. wireless. Their enviable margin and cash flow profile allow them to invest heavily in their network, which further builds their moat. This will be important as the industry moves towards 5G implementation. Most recent purchase was on Feb. 6, 2018 at $50.28.
WALGREENS BOOTS ALLIANCE (WBA.O)
While the stock has been weak for some time, the business has continued to compound earnings despite a number of headwinds and remain well-positioned strategically to handle a wide variety of competitive scenarios. We have considerable respect for management and view the current valuation as highly attractive. Most recent purchase was on Nov. 7, 2017 at $67.02.
PAST PICKS: MARCH 15, 2017
STORE CAPITAL (STOR.N)
- Then: $23.25
- Now: $23.31
- Return: 0.25%
- Total return: 5.26%
Sold down position during the year at prices in the $42-47 range.
- Then: $40.57
- Now: $38.56
- Return: -4.65%
- Total return: -3.41%
Total return average: 0.9%
Cambridge Canadian Dividend Fund Class F
Performance as of Jan. 31, 2018
- 1 Month: -1.5% fund, -1.4% index
- 1 Year: 7.8% fund, 6.7% index
- 3 Year: 8.7% fund, 5.9% index
* Index: S&P/TSX Composite Index
* Fund’s returns are based on reinvested dividends and net of fees.
TOP 5 HOLDINGS AND WEIGHTINGS
- Walgreens Boots Alliance - 4.78%
- Fairfax Financial Holdings - 3.89%
- Canadian Natural Resources - 3.79%
- Keyera Corp - 3.60%
- RioCan REIT - 3.57%