{"id":38373,"date":"2018-09-11T11:46:00","date_gmt":"2018-09-11T11:46:00","guid":{"rendered":"https:\/\/wp2.inovestor.com\/2018\/09\/portfolio-manager-commentary-august-2018\/"},"modified":"2022-08-04T18:55:10","modified_gmt":"2022-08-04T18:55:10","slug":"portfolio-manager-commentary-august-2018","status":"publish","type":"post","link":"https:\/\/www.inovestor.com\/en-ca\/2018\/09\/portfolio-manager-commentary-august-2018\/","title":{"rendered":"Portfolio Manager Commentary \u2013 August 2018"},"content":{"rendered":"

The S&P\/TSX Total Return Index ended the month down -0.82% as Canada and the U.S. were unable to come to terms for a trilateral agreement. Moreover, Trump hardened its stance against China by threatening to impose tariffs on $200B worth of Chinese imported goods. Finally, markets experienced jitters as contagion risks from Turkey and Argentina increased. Our Nasdaq Inovestor Canadian Equity Index (NQICA) increased 1.30% for the same period, 212bps above the benchmark. Our sector allocation contributed -26bps as our decision to overweight discretionary and underweight health care was detrimental. However, our stock selection contributed 238bps as a couple of our stocks outperformed significantly. You will find below the top three and bottom three contributors to performance.<\/p>\n

\u00a0<\/p>\n

The top three contributors to performance were:<\/p>\n

    \n
  1. Norbord (OSB:CN)<\/strong>, a manufacturer of wood-based panels, rose 15.4% after releasing a strong Q2 2018 earning: EPS of $2.50 (beat by $0.41) on Revenues of $920.2M (beat by $65.3M).<\/li>\n
  2. Gildan Activewear (GIL:CN)<\/strong>, an apparel manufacturer, gained 15.2% after beating expectations in its Q2 2018 earnings: EPS of $0.99 (beat by $0.29) on Revenues of $994.6M (beat by $48M).<\/li>\n
  3. TFI International (TFII:CN)<\/strong>, a transportation and logistics provider, increased 12.1% after posting strong Q2 2018 results and nominating Leslie Abi-Karam to join its board of directors last month.<\/li>\n<\/ol>\n

    \u00a0<\/p>\n

    The bottom three contributors to performance were:<\/p>\n

      \n
    1. Metro (MRU:CN)<\/strong>, a food retailer, fell -6.8% after the firm reported lower profit in Q3 2018 on Jean Coutu acquisition costs: EPS of $0.75 (miss by $0.03) on Revenues of $4.64B (in line).<\/li>\n
    2. Canadian Tire (CTC.A:CN)<\/strong>, a retail company, declined -7.8% after missing analyst expectations in its Q2 2018 earnings: EPS of $2.61 (miss by $0.45) on Revenues of $3.48B (miss by -$0.06B).<\/li>\n
    3. Magna (MG:CN)<\/strong>, an automotive supplier, dropped -10.3% after posting weak Q2 2018 earnings where EBIT margin fell to 7.8% and the management lowered its guidance for the fiscal year.<\/li>\n<\/ol>\n

      \u00a0<\/p>\n

      Best,<\/p>\n

      Fran\u00e7ois Soto CFA, MBA, FRM, CIM<\/p>\n","protected":false},"excerpt":{"rendered":"

      The S&P\/TSX Total Return Index ended the month down -0.82% as Canada and the U.S. were unable to come to terms for a trilateral agreement. Moreover, Trump hardened its stance against China by threatening to impose tariffs on $200B worth of Chinese imported goods. Finally, markets experienced jitters as contagion risks from Turkey and Argentina […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[123,55],"tags":[163,161,162],"class_list":["post-38373","post","type-post","status-publish","format-standard","hentry","category-featured","category-modelportfolio","tag-canada","tag-model-portfolio","tag-nqicat"],"acf":[],"yoast_head":"\nPortfolio Manager Commentary \u2013 August 2018 - Inovestor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.inovestor.com\/en-ca\/2018\/09\/portfolio-manager-commentary-august-2018\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Portfolio Manager Commentary \u2013 August 2018\" \/>\n<meta property=\"og:description\" content=\"The S&P\/TSX Total Return Index ended the month down -0.82% as Canada and the U.S. were unable to come to terms for a trilateral agreement. 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