Investing in U.S. innovation

Invesco's Ashley Misquitta cites fair values and powerful macro drivers.

Sonita Horvitch 3 September, 2014 | 6:00PM

Ashley Misquitta, portfolio manager at Invesco Canada Ltd., says that after the huge rally in the U.S. equity market since the 2008 global financial crisis, valuations are generally fair.

"We have to work harder to find high-quality companies trading at reasonable valuations than we did in the aftermath of this crisis," he says. "But there are opportunities that meet our criteria in a number of sectors," says Misquitta, who together with veteran portfolio manager Jim Young manage Trimark U.S. Companies and Trimark U.S. Companies Class.

In stock selection, this duo emphasizes companies with a sustainable competitive edge and that look to innovation to both drive and maintain that edge. "Our target companies," says Misquitta, "are industry leaders that typically enjoy good profit margins, produce a high return on capital and generate substantial free cash flow, which they can reinvest in the business or return to shareholders or both."

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Sonita Horvitch

Sonita Horvitch  

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