Beutel manager finds 'pockets of value' in U.S.

Glenn Fortin favours fundamentals over fanfare in technology stocks.

Sonita Horvitch 22 June, 2016 | 5:00PM
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Glenn Fortin, vice-president and U.S. equity specialist at Beutel Goodman & Co. Ltd., says the U.S. equity market is finally responding to companies with high-quality business models and overall solid fundamentals.

"These stocks were out of favour last year, as investors chased growth and momentum plays," says Fortin. "Faced with the bumpy start to the U.S. equity market this year, investors have favoured those companies with strong long-term fundamentals, which fits our discipline at Beutel Goodman."

In 2015, there was, he says, a lot of emphasis among investors on the so-called FANGs, the acronym for  Facebook Inc. (FB),  Amazon.com Inc. (AMZN),  Netflix Inc. (NFLX) and  Alphabet Inc. (GOOG/GOOGL). These four stocks did well last year, says Fortin. But this year, they have gone their separate ways, he says. "Only Facebook and Amazon have produced a good showing so far in 2016."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Allegion PLC137.61 USD0.20Rating
Alphabet Inc A2,819.45 USD-0.87Rating
Alphabet Inc Class C2,826.01 USD-0.93Rating
Amazon.com Inc3,371.28 USD-1.58Rating
American Express Co176.61 USD0.51Rating
Cadence Design Systems Inc157.43 USD-3.74Rating
Costco Wholesale Corp458.97 USD-1.88Rating
Facebook Inc A350.83 USD-0.60Rating
JPMorgan Chase & Co166.51 USD2.13Rating
Netflix Inc583.79 USD-1.45Rating
Parker Hannifin Corp295.04 USD2.50Rating
Teradyne Inc117.81 USD-1.27
Trane Technologies PLC180.41 USD-1.54Rating

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Sonita Horvitch

Sonita Horvitch  

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