The primary objective of the strategy is the achievement of long-term growth of capital through investments in a concentrated portfolio of high quality Canadian companies.
The Guardian Canadian Focused Strategy is a best-ideas portfolio that holds 15-20 high quality companies, trading at attractive valuations, in a diversified range of businesses. The primary driver of the investment process is bottom-up stock selection.
Our key determinants of quality include: long-term growth opportunity; profitability and sources of sustainable competitive advantage; financial and business model risk; and quality of stewardship. Our valuation work focuses on the current earnings power of each business and how this is expected to change over time.
By focusing on fewer opportunities, we are able to spend more time researching each company, which helps us build conviction, both in terms of opportunities and risks. To control risk, we focus on economic diversification within the portfolio i.e. making sure we own businesses that are different from one another.