Where Buy-And-Hold Works

Abdulai Mohamed makes the case for StonePine’s time-tested approach.

Abdulai Mohamed, CFA 21 April, 2023 | 4:29AM
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Abdulai Mohamed: When markets are tumultuous and uncertain, it's easy to get swept up in the noise and make impulsive investment decisions. But a time-tested, buy-and-hold approach at StonePine Asset Management shows that the right strategy can keep even the most seasoned portfolio managers from making rash choices.

Focusing on high-quality companies with competitive advantages, Nadim Rizk hasn’t had to worry as much as other managers, as his US, International, and Global Equity strategies have weathered market ups and downs and generated strong long-term returns.
StonePine sub advises several funds offered in North America, including National Bank Investment’s NBI US Equity F. There and elsewhere, Rizk relies on his two decades of experience, robust investment process, and accomplished team to hold stocks for the long term.

To find his high-conviction picks, Rizk uses fundamental analysis to identify firms with durable competitive advantages, such as strong brand recognition, pricing power, and high barriers to entry, that allow them to compound returns over time.
Just as deliberately as he constructs his portfolios Rizk has built a lasting team with co-manager Andrew Chan, now StonePine's head of investment research, whom he’s worked with since 2009.

Today, more than half the holdings in StonePine’s strategies are more than a decade old, so turnover is about 10%. However, the team also remains flexible; it trims or adjusts holdings based on valuation and fundamentals. Rizk's steady hand continues to help deliver consistent long-term performance for investors. Between December 2013 and March 31, 2023, the F share class of the NBI US Equity strategy outperformed its U.S. equity Morningstar category peer by more than 5 percent annually. So, StonePine’s patient, disciplined investment approach is worth considering for long-term investors.

For Morningstar, I’m Abdulai Mohamed.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
NBI US Equity F47.68 CAD0.13Rating

About Author

Abdulai Mohamed, CFA  is a Manager Research Analyst for Morningstar.  

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