Norman MacDonald dials up his energy exposure

Nexen's "world-class" assets lauded. Taking profits in gold stocks. Uranium giant still favoured after its huge run-up.

Sonita Horvitch 8 July, 2009 | 6:00PM

The long-term case for investing in commodity-related stocks geared to the industrialization of China, India and other emerging economies remains intact, says Norman MacDonald, vice-president and portfolio manager at Toronto-based Invesco Trimark Ltd.

"These economies have withstood the global recession and are growing." Against this, the supply of most commodities essential to their growth "remains constrained," says MacDonald, who assumed the lead management role ofTrimark Canadian Resources at the end of May. He had been co-manager of the fund since joining the firm in late 2008.

A value manager, MacDonald's discipline is to buy companies with "good assets and good management at a substantial discount" to his estimated value of the business. He adds that there are times when a company with a strong suit of assets can trade at a discount to his estimated net asset value per share, because of investor concerns about management quality. "This can provide a buy opportunity."

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Sonita Horvitch

Sonita Horvitch