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

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 PLC94.49 USD12.43
Alphabet Inc A1,183.19 USD8.28
Alphabet Inc Class C1,186.92 USD8.11
Amazon.com Inc1,997.59 USD4.77
American Express Co83.87 USD13.95
Cadence Design Systems Inc69.42 USD8.59
Costco Wholesale Corp305.12 USD5.71
Facebook Inc A165.55 USD7.37
Ingersoll-Rand PLC87.04 USD8.76
JPMorgan Chase & Co89.46 USD6.44
Netflix Inc379.96 USD5.03
Parker Hannifin Corp130.77 USD12.92
Teradyne Inc59.20 USD11.99

About Author

Sonita Horvitch

Sonita Horvitch