Strategic Adjustments and Key Exits Highlight Latest Investment Moves
Leith Wheeler Canadian Equity (Trades, Portfolio), known for its disciplined value investment approach, has made significant portfolio adjustments in the second quarter of 2024. Since its inception on April 27, 1994, the fund has focused on acquiring undervalued Canadian equities, aiming for superior long-term returns. The team, celebrated for their extensive experience and deep market knowledge, invests in companies they believe are priced below their true business value, often capitalizing on market misjudgments.
Introduction to Leith Wheeler Canadian Equity (Trades, Portfolio)
Leith Wheeler Canadian Equity (Trades, Portfolio) operates with a clear objective to outperform by investing in a diversified mix of Canadian stocks, convertible debentures, and other equity-related securities. The fund remains fully invested in equities, seizing opportunities presented by market fluctuations and investor sentiment shifts. Their investment philosophy centers on fundamental research with a strong value orientation, buying into companies that are temporarily out of favor but have strong potential for recovery.
New Additions to the Portfolio
During the second quarter of 2024, Leith Wheeler Canadian Equity (Trades, Portfolio) expanded its portfolio by adding three new stocks:
- TELUS Corp (TSX:T, Financial) was the largest new addition with 1,455,010 shares, valued at C$30.13 million, making up 0.66% of the portfolio.
- BRP Inc (TSX:DOO, Financial) followed, with 315,311 shares worth C$27.64 million, representing 0.61% of the portfolio.
- Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN, Financial) was also added with 508,700 shares, valued at C$22.61 million, accounting for 0.5% of the portfolio.
Significant Increases in Existing Positions
The fund also increased its stakes in several key holdings:
- The most notable increase was in Royal Bank of Canada (TSX:RY, Financial), where 253,950 additional shares were acquired, bringing the total to 2,257,095 shares. This adjustment increased the share count by 12.68% and had a 0.82% impact on the portfolio, with a total value of C$328.75 million.
- Bank of Montreal (TSX:BMO, Financial) saw an addition of 258,300 shares, resulting in a 22.46% increase in share count and a total value of C$161.70 million.
Complete Exits from Holdings
In a strategic move, Leith Wheeler Canadian Equity (Trades, Portfolio) exited its position in:
- Lumine Group Inc (TSXV:LMN, Financial), selling all 792,448 shares, which impacted the portfolio by -0.59%.
Reductions in Key Positions
The fund also reduced its holdings in several companies:
- Canadian Tire Corp Ltd (TSX:CTC.A, Financial) saw a significant reduction of 228,172 shares, decreasing its share count by 83.2% and impacting the portfolio by -0.8%.
- Constellation Software Inc (TSX:CSU, Financial) shares were reduced by 3,646, a 5.56% decrease, impacting the portfolio by -0.3%.
Portfolio Overview and Sector Allocation
As of the second quarter of 2024, Leith Wheeler Canadian Equity (Trades, Portfolio)'s portfolio comprised 42 stocks. The top holdings included 7.25% in Royal Bank of Canada, 6.33% in Toromont Industries Ltd (TSX:TIH, Financial), and 5.38% in Constellation Software Inc (TSX:CSU). The investments are predominantly spread across 10 sectors, excluding only one of the 11 major industries.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
