Based in Toronto, Canada, our team has a long track record of successfully managing North American equity portfolios. We invest in the funds we manage alongside our clients. Fifteen members of the team were selected as 2024 TopGun Investment Minds of the Year by Brendan Wood International. Stu Kedwell was selected for the sixth time as the number one TopGun Investment Mind of the Year.* We’ve been honing our practices and processes since 2002, drawing on lessons from our past and the habits of successful money managers.

• Collegial, systematic, iterative and repeatable
• We are strongly committed to understanding a wide variety of outcomes for the stocks we follow, based on scenario analysis leading to favourable risk/reward trade-offs, and delivering strong risk-adjusted results over the long-term

Checklist

We use an initial checklist that rewards characteristics that many good stocks have in common while penalizing those that many likely poor performers share.

Fundamental analysis

We use fundamental analysis to focus on good quality companies with attractive returns on capital and appropriate financial and operating leverage.

Scenarios

We understand a range of fundamental scenarios for each position and avoid anchoring positions around a single forecast.

Technical analysis

We have a strong appreciation for technical analysis, utilizing both absolute and relative strength as a foreshadowing of potential shifts in the stock market.

Construct

We construct the portfolio to reward good stock selection and avoid heavily relying on the correctness of a strong point of view.

Decision-making process

Our decision-making process is ongoing and constantly circling through the process. 

Portfolio positioning – structured according to opportunity

We think about companies in three buckets: those with stable cash flow, higher growth than their peers and sensitivity to the business cycle.

We employ scenario analysis to establish a range of fundamental outcomes likely to be realized by a company and then work to understand the degree to which these outcomes may or may not be factored into the current stock price.

If the market is always anticipating future events, then spotting opportunity in the stock market requires thinking about how the future might unfold. While most investors understand that there are more things that can happen than will happen, most still insist on believing in their ability to forecast what will happen. While dampening this instinct is hard, we believe that focusing on what can happen pays large dividends when thinking about stock prices.

The idea of the stock market as a handicapping machine is a powerful one and scenario analysis is a critical tool to assist in successfully calibrating the odds in our funds. It helps to understand when good companies have the potential to be great stocks.

Funds we manage (33)

Fund name
RBC U.S. Mid-Cap Growth Equity Currency Neutral Fund
RBC U.S. Mid-Cap Growth Equity Fund
RBC U.S. Equity Value Fund
RBC U.S. Mid-Cap Value Equity Fund
RBC Trend Canadian Equity Fund
PH&N Canadian Equity Value Fund
RBC Canadian Dividend Fund
RBC Canadian Small & Mid-Cap Resources Fund
RBC Global Energy Fund
RBC Global Resources Fund
PH&N Canadian Growth Fund
PH&N U.S. Growth Fund
RBC Global Technology Fund
RBC Life Science and Technology Fund
RBC North American Growth Fund
RBC Balanced Growth & Income Fund
RBC Canadian Equity Fund
RBC Canadian Equity Income Fund
PH&N U.S. Dividend Income Fund
RBC U.S. Dividend Currency Neutral Fund
RBC U.S. Dividend Fund
RBC U.S. Equity Currency Neutral Fund
RBC U.S. Equity Fund
RBC U.S. Monthly Income Fund (US$)
PH&N U.S. Equity Fund
RBC Long/Short North American Equity Fund
RBC Private U.S. Large-Cap Core Equity Pool
PH&N Currency-Hedged U.S. Equity Fund
RBC Balanced Fund
RBC Global Balanced Fund
RBC North American Value Fund
RBC Monthly Income Fund
RBC Global Precious Metals Fund