Manager focuses on risk management

Beutel Goodman’s Pat Palozzi keeps an eagle eye on the risk/reward scenario for every stock in the portfolio at any given time

Jade Hemeon 30 May, 2019 | 5:00PM

Stock markets are characterized by volatility, but gold-rated  Beutel Goodman Fundamental Canadian Equity Cl F has managed to smooth the roughness of the ride and still achieve the superior long-term returns offered by equities.

The drop in major market indices in late 2018, their subsequent runup in early 2019, and recent erratic bounciness have seen Pat Palozzi, vice president of Canadian equities and co-manager of the fund, hold firmly to the firm’s disciplined bottom-up process, focusing on industry leading companies, all with a history of healthy cash flow growth, superior capital allocation and the ability to withstand up and down economic cycles.

“Managing risk is critical for us,” says Palozzi, who is also co-manager of gold-rated funds Beutel Goodman Canadian Equity F and Beutel Goodman North American Focused Equity F. “Our focus is on capital preservation. We know the risk/reward scenario for every stock in the portfolio at any given time, and also know the risk/reward profile of the entire portfolio.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Bank of Montreal71.06 CAD4.79
IGM Financial Inc23.35 CAD-0.17
Metro Inc56.91 CAD0.14
Nutrien Ltd48.11 CAD4.72
Quebecor Inc Class B31.11 CAD-0.58
Rogers Communications Inc62.00 CAD5.08
Royal Bank of Canada87.17 CAD2.79
Saputo Inc33.84 CAD1.65
Sun Life Financial Inc45.27 CAD2.42
The Toronto-Dominion Bank59.83 CAD2.34

About Author

Jade Hemeon

Jade Hemeon