Taking advantage of volatility

Why William Dye and his Leith Wheeler team are holding beaten-up names like RIM, and taking profits on the likes of IGM.

Sonita Horvitch 18 November, 2009 | 7:00PM
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William Dye, chief investment officer at Leith Wheeler Investment Counsel Ltd., is looking for the firm's Canadian equity portfolio to produce compound annual total returns of 10% over the next three years.

"It has been a challenging year in the Canadian equity market," says Dye. The extreme volatility of the market so far this year has resulted in a higher than average turnover in the portfolio, he says. "There were opportunistic purchases in the first half of the year and subsequent sales or trims to take advantage of the market surge."

In selecting Canadian equities, Dye and other members of the Canadian equity team assess a company's prospects over a three-year term horizon. They estimate the earnings growth potential of a company three years out, establish a target price for the stock and then calculate the expected compound annual total return over the three-year period. Qualitatively, the Canadian equity team seeks to invest in companies with a commanding business franchise and solid management.

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Sonita Horvitch

Sonita Horvitch  

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