Opportunity
Inefficiency in the small/mid cap space is not only a Canadian phenomenon. It exists globally for small/mid cap equities. In fact, global smaller companies are often even more overlooked by investors than in Canada. The large universe of global equities means the portfolio managers can identify almost any growth trajectory in any sector to take advantage of the best valuations in offering investors a valuable complement to their Canadian equity investments.
Strategy
We search the globe to identify markets where small/mid cap equity valuations are mismatched for the region's economic growth profile. Growth is important, but the price of growth already reflected in equity valuations is more important. To screen a large universe of investment candidates and construct a portfolio of 30 to 40 securities, we apply quantitative and deep fundamental analysis. We employ a value investment philosophy, ensuring that our investments are reasonably valued on a market, sector, and historical basis. An experienced management team, a clean balance sheet and a strengthening competitive position in the industry are all key factors in our fundamental analysis.
The Norrep advantage
Niche expertise: With over a decade of proven outperformance in small/mid cap equity investing, our portfolio managers excel at identifying undervalued securities with significant growth potential before the market recognizes their value.
Focused and independent insight: Our investment management group has a deep roster of experienced professionals that allows the portfolio managers to objectively view an investment's merits in making informed decisions. We choose to know a lot about niches like global small/mid cap equities, rather than a little about everything.
Proven and repeatable methodology: Our portfolio management team ensures that we build portfolios that are more attractive than the market based on the key value and momentum metrics that have been proven historically to result in favourable investment outcomes.
Long-term focus: We focus on each investment's long-term prospects and not necessarily the next quarter's earnings. Short-term market turbulence is often viewed as an opportunity to profit from inefficient markets by selectively adding to positions in our favourite investments.