Norrep II opened in 2001 with the identical investment mandate and style as Norrep's first product, the Norrep Fund, which closed to new investors in 2005. Norrep II offers the added benefit of a tax-efficient corporate class structure.
Opportunity
Invest with specialists who create efficiency in the inefficient small/mid cap market and make active management truly count for investors.
Many of Canada's smaller public companies are unfamiliar to investors and vary in investment quality, requiring proper due diligence from a specialist portfolio manager. As a result, the fund is often able to buy shares in successful companies at low prices well before the market recognizes their value.
Strategy
We blend fundamental research and quantitative analysis to identify key factors that drive the historical outperformance of small and mid capitalization companies. A value overlay ensures the portfolio’s investments are reasonably valued on a market, sector, and historical basis. We carefully consider investments that may be undervalued due to a lack of sell-side analyst coverage, mistakes by management teams no longer in charge, or simply a misunderstood business model.
The result is a concentrated portfolio of 30 to 40 companies that represent well-priced companies with great management teams that are growing faster than the industry average.
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 small/mid cap equities, rather than a little about everything.
Proven and repeatable methodology: Our portfolio management team ensures that we build portfolios which 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.