Canadian Equities

Top Reasons for Choosing Addenda Capital to Manage your Canadian Equities

• Research is our Strength - We conduct extensive fundamental industry and company level research with discipline and rigor.
• Our emphasis is on valuing all sources of future free cash flow that will accrue to common shareholders and constantly comparing this to market prices to allow a relative ranking of market price to underlying intrinsic value.
• We are not generalists - Our team of Portfolio Managers is made up of seasoned investors that are specialists in their areas of expertise. We focus not only on calculating underlying valuation but also strive to understand the drivers of the mismatch between market prices and our valuation.
• We embed sustainable investment into our research and valuation process, and maintain a significant database of ESG factors for all of the companies we monitor and research.

We believe that:

• Day-to-day market activity can create significant opportunities as security prices deviate from underlying value.
• Diligent, in-depth, independent, insightful, and disciplined research creates strong conviction in the underlying intrinsic value of companies in our investment universe.
• Constructing portfolios of stocks with the most attractive price-intrinsic value relationship will generate superior returns over investment cycles.

• Research
  Detailed fundamental research at both an industry and company level to assess a company’s ability to generate free cash flow in the long term. Our analysis is based on a mosaic of information, including interviews with management teams, competitors and industry consultants, as well as macro economic factors and ESG (environmental, social, governance) variables. The primary output of our research activities are detailed financial models of each company we consider investing in.
• Intrinsic Value
  Financial modeling that delivers the inputs required for our 4-stage Discounted Cash Flow model, the output of which is our estimate of a company’s underlying intrinsic value.

• Ranking Investment Opportunities
  Ranking all companies under coverage by discount to intrinsic value, utilizing current share prices.
• Portfolio Construction
  The output of our price-intrinsic value rankings combined with appropriate risk controls are the primary factors utilized in the construction of client portfolios.