Includes shares in Andrew Peller Ltd., Big Rock Brewery Inc., Horizon Pharma PLC and Newmont Mining Corp.; also short positions in Wynn Resorts Ltd. and other companies.
Alexander Valtsev majored in finance at the University of Toronto. He now works for an investment bank and plans to launch his own investment fund in September.
How he invests
Mr. Valtsev uses discounted cash flow (DCF) modelling, which projects a firm's cash flows into the future and discounts them with a chosen interest rate to obtain present value. The bar is set high with conservative assumptions and hefty discount rates.
Communicating with shareholders is a key part of his approach. "This is a quick way to find material information without spending a lot of time on research."
Wine producer Andrew Peller trades at a discount of about 20 per cent. There is ample scope to hike the dividend given it is financed with just a third (or so) of the free cash-flow generated by the company every year.
Shares in Big Rock Brewery are down a lot on poor financial results. But the craft brewer has no debt, substantial cash holdings and is trading close to its net asset value.
Gold miner Newmont Mining has "probably the highest operating margins in the industry."
Casino operator Wynn Resorts will be affected by the "turmoil in China's gambling industry."
"Buying Horizon Pharma. … There is a lot of consolidation expected in the pharma sector."
"Selling short the shares of Vale SA [a mining company] and covering for a loss. … Selling short is always a risky business, especially in a bull market."
"There are still opportunities among small-caps because many such companies are underfollowed by major banks, yet remain good businesses with solid cash generation."