The fund is actively managed and is benchmark agnostic. Unlike the
CI Cambridge Pure Canadian Equity Fund, this mandate has more flexibility, and can invest up to 49% of the fund
outside of Canada. Regardless of the geography, the managers look for
companies that have a management team that is aligned with shareholders, a
history of sound capital allocation, and a strong competitive advantage.
The investment process is very much a bottom-up approach, and the portfolio
tends to be divided into a couple of buckets. The first is core holdings,
which they consider to be longer-term, well-managed, attractive
investments. The second bucket is what they consider to be opportunistic
holdings, which they view as short-term trading opportunities that are the
result of a mispricing in the market. The allocation between the two will
be the result of the available opportunity set.
As of the end of November, top holdings included
Middleby Corp. (NASDAQ: MIDD),
TFI International Inc. (TSX: TFII),
Athene Holding Ltd. (NYSE: ATH),
Auto Trader Group Plc (LON: AUTO), and
Tourmaline Oil Corp. (TSX: TOU).
The approach tends to skew a bit more to the growth side of the spectrum,
as they are looking to find companies that have the potential to move their
share prices upwards. That said, valuation is still a consideration, and
they want to avoid overpaying for that potential growth.
They tend to carry more cash than some of their peers. There are a couple
of reasons for this: first, to play some defense in volatile times; and
second, to make sure they have sufficient “dry powder” to take advantage of
opportunities as they arise. At the end of November, cash sat at 14%.
Volatility can run a bit higher than average, with a 3-year average
standard deviation of 10.14%. But if you have the stomach for it, this can
be an excellent addition to a well-diversified portfolio
CI Cambridge Canadian Growth Companies Fund
Canadian Focused Small/Mid Cap Equity
FundGrade A+ Award:
Greg Dean since September 2012
CIG11358 (low load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
Notes and Disclaimer
© 2017 by Fund Library. All rights reserved. Reproduction in whole or in
part by any means without prior written permission is prohibited.
Commissions, trailing commissions, management fees and expenses all may be
associated with fund investments. Please read the simplified prospectus
before investing. Mutual funds are not guaranteed and are not covered by
the Canada Deposit Insurance Corporation or by any other government deposit
insurer. There can be no assurances that the fund will be able to maintain
its net asset value per security at a constant amount or that the full
amount of your investment in the fund will be returned to you. Fund values
change frequently and past performance may not be repeated. No guarantee of
performance is made or implied. This article is for information purposes
only and is not intended as personalized investment advice.