While crude-oil prices have surged this spring to around US$86 a barrel, Jennifer K. Stevenson is counting less on further robust price hikes and more on firms with production growth. "We have an oil focus, and it's not reliant on the price going up. If oil hangs in the US$70-80 range, these companies can produce the growth that we expect."
Stevenson, who is manager of the $34-millionQwest Energy Canadian Resource Class, takes a blended approach to picking stocks in the oil patch. After determining the outlook for the underlying commodities, and developing a price forecast, she selects companies that offer the best growth potential.
"We're looking for valuation versus growth, to get the best value, and best growth profile. There's a bit of give and take," says Stevenson, Calgary-based executive vice-president, Qwest Investment Fund Management Ltd. "Our call on natural gas is quite negative, so we don't have gas in the portfolio."
