In the first step of Introducing GuruFocus Global Membership – Canadian Markets we made available all GuruFocus screeners and analytical tools to the stocks that are traded on TSX. As the second step, we are now adding Canadian Gurus. With this feature you will be able to track what some of the most successful Canadian Equity funds are investing in.
Canadian investors seem to have even high incentive to invest themselves instead of buying mutual funds as it is very hard to find Canadian equity funds that have outperformed Canadian benchmark over the last 10 years. Furthermore, Canadian investors pay a much higher fee for their poorly performing funds. These are the Canadian Funds that have done relatively well over at least 10 years.
These are their performances:
|Fund Name||Fund Size ($billion)||Inception Date||Fee||3-Year Performance||5-Year||10-Year|
|Leith Wheeler Canadian Equity||1.5||1994||1.57%||7.1||1||9.4|
|Mawer Canadian Equity Fund||1.26||1991||1.25||9.3||3.5||9.7|
|Mawer New Canada Fund||0.84||1988||1.47||13.4||6.3||13.4|
|Signature Select Canadian Corporate Class||1.37||2001||2.43||4.8||0.85||12.95|
|CI Can-Am Small Cap Corporate Class||0.11||1997||2.42||8.5||4.57||12.29|
|Chou RRSP Fund||0.1||1986||1.87||14.3||4.7||5.3|
These are the details of the Canadian Gurus. GuruFocus Global Membership is required to gain access to Canadian Guru portfolios and value screeners for Canadian stocks.
Leith Wheeler Canadian Equity
Leith Wheeler Canadian Equity's inception date is April 27, 1994. The total fund size is $1.5 billion. Within this fund, the top four sectors are Financials (33.3%), Energy (19.0%), Industrials (17.2%), and Consumer Discretionary (11.7%). The investment objective of Leith Wheeler Canadian Equity is to provide superior long-term investment returns by investing in a diversified portfolio of Canadian common shares, convertible debentures and other equity related securities. Under normal circumstances the Fund will keep its portfolio fully invested, to the greatest extent possible, in equity and equity related securities. Leith Wheeler Canadian Equity is managed by a team of investment professionals. The team members are Bill Dye, CFA, Head of Canadian Equities, David Jiles, CFA, Canadian Equity Analyst, Richard Liley, CFA, Canadian Equity Analyst, Patrick Reddy, CFA, Canadian Equity Analyst, Nick Szucs, CFA, Canadian Equity Analyst, and Bob Lau, CFA, Head of Equity Trading. They are well recognized within the investment community for their depth of knowledge and experience.
Philosophy: "Our approach to stock picking is based on fundamental research with a strong "value" bias. Our test for value is viewing any investment we make as if we were "buying the whole business". Our experience has been that the price of a company in the stock market does not always reflect its real value. This discrepancy between price and value creates excellent investment opportunities. As value investors, we tend to include companies in the portfolio when they are "out of favor" by the market and have declined in price. Companies can become undervalued when there is a lack of investor awareness; when an entire industry is out of favor with investors; or when a company experiences a short-term difficulty which, following careful analysis, we believe can be overcome. By purchasing these companies after a price decline, we find we are able to control risk in the portfolio as these investments often have less downside risk while offering a decent potential return."
Mawer Canadian Equity Fund
Profile: Mawer Canadian Equity Fund's inception date is June 3, 1991. The fund net asset value is $1265.1 million and the total net asset value for class A is $206.3 million. Within this fund, the top three sectors are Financials (37%), Energy (17%), and Industrials (13%). It is managed by Jim Hall, CFA, and Vijay Viswanathan, CFA. The investment objective of the Mawer Canadian Equity Fund is to invest for attractive long-term returns in equity securities of mid-large capitalization Canadian companies. Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time. This fund is suit for Investors seeking long-term, above average growth who can tolerate equity volatility, which means moderate to high risk.
"The Manager systematically creates a broadly diversified portfolio of wealth-creating companies with excellent management teams bought at discounts to their intrinsic values. The Manager employs a highly disciplined, research-driven, bottom-up process and long-term holding period to allow for investor recognition or corporate growth, and to minimize transaction costs."
Mawer New Canada Fund
Mawer New Canada Fund's inception date is January 8, 1988. The fund net asset value is $835.3 million and the total net asset value for class A is $149.0 million. Within this fund, the top four sectors are Financials (27%), Industrials (22%), Energy (17%), and Information Technology (10%). It is managed by Martin Ferguson, CFA, and Jeff Mo, CFA.
The investment objective of the Mawer New Canada Fund is to invest for above average long-term returns in securities of smaller Canadian companies. Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time. This is a smaller capitalization fund and it is suit for investors seeking long-term, above average growth who can tolerate significant volatility, which means higher risk.
"In order to achieve its investment strategy objectives, the Manager systematically creates a broadly diversiﬁed portfolio of wealth-creating companies with excellent management teams bought at discounts to their intrinsic values. The Manager employs a highly disciplined, research-driven, bottom-up process and a long-term holding period to allow for investor recognition or corporate growth, and to minimize transaction costs.
Signature Select Canadian Fund
Signature Select Canadian Corporate Class is an open-end fund incorporated in Canada. Its inception date is August 10, 2001. The fund asset value is $1437.02 million (on 2012-12-31). Within this fund, the top four sectors are Financials (28.0%), Energy (18.8%), Materials (12.5%), and consumer Staples (10%). The fund is managed by CI Investments Inc. and its advisor is Signature Global Advisors. Signature Global Advisors of Toronto, a division of CI Investments Inc., manages more than $35 billion in assets across all asset classes, including fixed income and Canadian and global equities. Signature's advantage is its approach in which portfolio managers and analysts specializing in each asset class and sector combine their research to develop a comprehensive picture of a company and its securities. The team is led by Chief Investment Officer Eric Bushell.
The fund's objective is to seek capital appreciation over the long-term coupled with dividend income. It invests primarily in common shares and convertible securities of Canadian companies and preferred shares that pay regular income. The fund's investments are diversified across industry sectors. Any change to the investment objective must be approved by a majority of votes cast at a meeting of unitholders held for that reason.
"The Signature approach has two key elements: 1) making investment decisions based on an analysis of the full capital structure of a company, 2) pursuing broad mandates.
The Security selection process are as follows:
1. Develop a comprehensive global outlook, factoring in economic growth, interest rates, capital market conditions and geopolitical tensions. 2. Determine the appropriate investment risk profile for this outlook. 3. Select the industries that should benefit from this outlook and discuss trends and sector weights with the group's industry experts. 4. Monitor current and potential investments on a constant basis to ensure that the initial investment rationale is intact and targets are achieved. 5. Narrow the focus to securities that offer the most compelling risk-reward on a global basis, given relative or absolute valuations. Qualitative characteristics such as management, financial disclosure and governance structures are important parts of the security selection process."
CI Can-Am Small Cap
CI Can-Am Small Cap Corporate Class is an open-end fund incorporated in Canada. Its inception date is December 29, 1997. The fund asset value is $115.54 million (on 2012-12-31). Within this fund, the top four sectors are Financials (20.3%), Information Technology (14.8%), Energy (13.4%), and Materials (11.3%). The fund is managed by CI Investments Inc. and its advisor is QV Investors Inc.
The fund's objective is to seek long-term capital growth by investing primarily in equity and equity-related securities of Canadian small capitalization companies. The fund may also invest in foreign securities. The fundamental investment objective of the fund cannot be changed without obtaining security holder approval.
QV Investors Inc. is a Calgary-based firm that manages over $800 million in investment portfolios for institutional and private clients. QV is an independent manager and makes a specialty of small-cap equity and balanced fund management. QV employs disciplined risk-management techniques to assure returns and has earned top-quartile results over the longer term. The fund selects companies by QV's fundamental tests of management commitment, financial and operational records or business franchise, balance sheet quality, valuation, dividend record, and overall quantitative contribution to the portfolio. Its investment philosophy is embodied in its name - selecting investments of quality, value, and growth to build diversified, low-risk portfolios.
Chou RRSP Fund
Chou RRSP Fund's inception date is October 30, 1986. The fund total asset value is $109.74 million (on 2012-12-31). Within this fund, the top two sectors are Consumer Cyclical, and Basic Materials. The fund is managed by Chou Associates Management Inc. The Fund's objective is to provide long-term growth of capital by investing in equity and debt instruments of primarily Canadian businesses. The Fund may invest in equity and debt instruments of U.S. and foreign businesses. Investments may include common and preferred shares, convertible debentures, government and corporate bonds and short-term indebtedness. Unitholder approval is required in order to change the fundamental investment objectives of the Fund.
"The investment process followed in selecting equity investments for the Funds is a value-oriented approach to investing. This involves a detailed analysis of the strengths of individual companies, with much less emphasis on short-term market factors. Far greater importance is placed upon an assessment of a company's balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential and management ability. No more than 49% of the net assets of the Fund, at the time of purchase, will be invested in equity and debt instruments of U.S. and foreign businesses.
The investment strategy follows strong disciplines with regard to price paid to acquire portfolio investments. The level of investments in the company's securities is generally commensurate with the current price of the company's securities in relation to its intrinsic value as determined by the above factors. That approach is designed to provide an extra margin of safety, which in turn serves to reduce overall portfolio risk.
Once an investment is made, the Fund is expected to be a patient, long-term investor, which results in low portfolio turnover, reduced transaction costs and deferred realization of accrued capital gains. Portfolio holdings are typically concentrated within a limited number of companies, usually 25 to 35 per Fund portfolio. This helps to maintain awareness of corporate developments and communication for each company.
The Manager may decide to maintain a larger portion of the Fund's assets in short-term fixed income securities during periods of high market valuations and volatility. This temporary departure from the Fund's core investment strategy may be undertaken to protect capital while awaiting more favorable market conditions."
If you think that there are other Canadian Gurus that we should add, please suggest in the comment area below. In the meantime, if you are not subscriber of GuruFocus, we invite you for a 7-Day Free Trial.