We take a disciplined approach and a long-term view with the goal of generating superior risk-adjusted returns.
We are active investors, the opposite of index-based management. Companies that are part of an index tend to be overvalued since they are over-owned by about every institutional investor, mutual fund and exchange traded fund.
We must look outside the index to beat the market.
We believe the best portfolio managers act like business owners and take a long-term view. Building real wealth requires discipline and patience.
Risky bets, hot stocks, quick profits and speculation have no place in responsible asset management.
Nothing distracts us from the essential: the potential of investments, which is usually hidden in the fundamental value of companies.
That’s why we don’t fear volatility, as it often comes from technical factors (asset flows), behavioral factors (fear or greed) or algorithms. And also because it creates excellent opportunities.
Sustainable investment is not a short-term trend; it is a paradigm based on rational principles that extend well beyond ethical values. Environmental, social and governance (ESG) criteria influence the risk-return profile of issuers.
Those that properly integrate them into their business practices are more resilient and better positioned to deliver long-term outperformance.
A process dedicated to growing investment capital by preserving natural capital
The Lynx Global Biodiversity Fund is also supported by an experienced Advisory Board that has a front row seats to the increasing nature-related regulatory risks facing corporations and how they will need to tackle the challenges of halting and reversing nature loss.
We find investment opportunities based on three main criteria:
We are bargain hunters. As we look to invest in undervalued companies, we favour stocks that are trading at low multiples and are temporarily out of favour. Our process leads to a clear understanding of the business model and industry, which avoids falling into value traps.
While we generally have to pay-up for growth, there are limits that we are willing to pay. We want to buy as much growth as possible for as little as possible. These opportunities need to be captured quickly before analysts and the masses drive up valuations to unreasonable levels. We are able to seize them by using our proven financial analysis methodology to seek companies that have reasonable multiples relative to their growth rates.
We are always on the lookout for events that could increase shareholder value. Dividend increases, share buy-backs, spin-offs, mergers or acquisitions, sales and consolidations... Our deep market experience makes us well-suited to seize opportunities that are missed by many analysts and investors.
Our Canadian equity strategy is offered
as an investment fund or as an individual portfolio.
Our Canadian equity strategy is available as a mutual fund or individual portfolio.
To build our portfolios, we leverage our expertise to analyze interest rate spreads and the yield curve. As fear dominates and spreads widen, we favour higher yielding securities that offer capital protection. When markets are complacent and spreads narrow, we favour higher quality corporate bonds because we are not compensated for taking risk.
We favour companies with improving balance sheets to benefit from potential credit rating improvements. We also have a bias toward securities in less cyclical sectors with long-term recurring cash flows (telecommunications, utilities, real estate, pipelines, etc.).
We favour tangible assets with strong covenants and capital structure, which make it easier for them to weather difficult times. And we take the time to analyze and understand protection contracts to see what the risks are, especially in the energy and materials sectors.
The portfolio is invested in a diversified range of fixed income assets including government and government-guaranteed debt, high-yield and corporate bonds, convertible debentures, preferred shares and money market instruments. We have also established investment constraints that govern the portfolio structure and allow us to mitigate risk. Our Canadian bond strategy is available in both individual portfolios and investment funds.
How to Invest