Canadian small-cap stocks go on sale

Beutel's Stephen Arpin says he's taken advantage of market pullback.

Sonita Horvitch 2 September, 2015 | 5:00PM

Stephen Arpin, vice-president and portfolio manager at Beutel Goodman, says the recent sharp pullback in the Canadian equity market resulted in some irrational pricing of high-quality small-cap businesses with strong fundamentals.

"Investors were selling stocks indiscriminately and we selectively took advantage of the weakness in the stock prices, to add to holdings," says Arpin, who is a small-cap specialist and value manager.

There has been much discussion about the potential for a material slowdown in China's economic growth, says Arpin. "If this comes to pass, this will likely put additional downward pressure on commodity prices."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BRP Inc22.99 CAD5.12
Canadian Western Bank18.94 CAD1.88
CCL Industries Inc B- Non-Voting42.54 CAD-0.58
Colliers International Group Inc72.00 CAD4.03
Equitable Group Inc57.56 CAD6.26
FirstService Corp106.10 CAD2.02
Home Capital Group Inc15.75 CAD5.35
Linamar Corp31.56 CAD2.43
Uni-Select Inc4.50 CAD2.97
Winpak Ltd43.37 CAD0.46

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Sonita Horvitch

Sonita Horvitch