Direct Stock-Holding Portfolios
We pride ourselves on our research-centric approach to investment management.
Balancing traditional research techniques with modern portfolio science allows our team to find companies that demonstrate and maintain solid investing fundamentals. We look for less volatile and proven earnings combined with long-standing stable dividend policies. Share prices need to be justified on a combination of current earnings and reasonable growth possibilities. Quality financial statements, coherent management and an operational business plan need to be in place before we rank a company as a buy.
Kaleo consists of a portfolio of stocks that are selected using an investment approach that applies company-specific fundamental analysis, and strategic macroeconomic positioning. The model invests in a mix of domestic and international equities, with geographic weighting subject to change intermittently.
Our Kaleo Full model is composed of 35 stocks + 5 index ETFs. For clients with invested funds in the $250K to $1M range, we offer a subset 22 stocks + 5 index ETFs subset of this model (Kaleo A) in order to reduce brokerage fees.
Returns since inception for each of our Kaleo models are similar by design.
We currently aim to hold a stock for 3-5 years in our Kaleo models. This means that we have an average portfolio turnover of 25%.
We purposefully chose our benchmark to more accurately represent the broad geographic diversification of our holdings in Kaleo. Our benchmark for Kaleo is defined as 50% of the S&P 500 (in CAD$) and 50% of the S&P TSX.
Qatalyst consists of a portfolio of stocks we believe to represent the best opportunity for positive returns within a 3-5 year investment horizon, regardless of short-term volatility. Companies are selected using an investment thesis that primarily includes the realization of a catalyst.
Qatalyst is a concentrated portfolio, oftentimes consisting of between 10 and 20 stocks. While we aim to offer diversification amongst various market and geographic sectors, it is not assured.
Due to the less conservative nature of the portfolio, clients are encouraged to also hold a mixture of fixed income investments, as well as our more diversified and less concentrated Kaleo model in order to moderate and match investor specific tolerance for risk.
The S&P 500 (currency adjusted) is applied as our benchmark for Qatalyst due to the higher relative concentration of US companies held in this model.