High-quality small-caps are "pricey"

Beutel Goodman's Stephen Arpin finds value in selected cyclical names.

Sonita Horvitch 15 October, 2014 | 6:00PM

 Stephen Arpin, vice-president and portfolio manager at Beutel, Goodman & Co. Ltd., says the pullback in the Canadian small-cap universe in September has provided select opportunities in cyclical stocks.

"But it remains challenging to find high-quality companies that trade at reasonable valuations," says Arpin, a small-cap specialist and member of Beutel Goodman's Canadian equity team. The firm uses a value approach to equity investing.

Up until the beginning of September, the Canadian small-cap universe was outperforming its bigger-cap counterpart, says Arpin. "The Canadian market retreated during September, with a steeper decline in small-cap versus large-cap stocks."

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Sonita Horvitch

Sonita Horvitch  

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