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Alex RuusTibor Kolley/The Globe and Mail

Alex Ruus is portfolio manager at Arrow Capital Management. His focus is North American equities.

Top Picks:

Gilead Sciences Inc. (GILD-Nasdaq)

Gilead is the world leader in developing and selling AIDS and Hepatitis medicines. The company is growing swiftly on the back of the launch of 2 new "best in class" Hepatitis medicines that are going to be the most successful drug launches in history. Gilead trades at an inexpensive 10 times earnings.

Neptune Technologies & Bioressources (NTB-TSX)

Neptune is an emerging neutraceutical/pharmaceutical company producing Neptune Krill Oil (NKO), a proprietary omega-3 phospholipid. The company is substantially undervalued and the stock is poised to outperform as its new manufacturing plant has recently comes into production and it's potentially revolutionary new drug, CaPre, approaches launch of crucial Phase 3 clinical trials.

Magna International (MG-TSX)

The world's fourth-largest auto maker, Magna continues to grow as it takes advantage of the globalization of the automobile business. It continues to grow profitably and trades at an inexpensive 10 times earnings and pays a growing dividend.

Past Picks: December 6, 2013

Alaris Royalty (AD-TSX)

Then: $34.25; Now: $33.49 -2.22%; Total return: +2.73%

Magna International (MG-TSX)

Then: $85.81; Now: $122.16 +42.36%; Total return: +44.45%

LyondellBasell Industries (LYB-NYSE)

Then: $76.55; Now: $74.62 -2.52%; Total return: +0.28%

Total return average: +15.82%

Market outlook:

The global economy continues its slow, steady recovery from the "Great Recession" of 2008-09. A recent pullback in the price of oil will put more money in consumers' pockets, helping to stimulate growth. This provides a perfect economic backdrop for leading companies with sustainable competitive advantage to thrive and grow shareholder value. Current equity markets are modestly undervalued with large divergences in valuations between companies providing excellent opportunities for disciplined investment funds like Exemplar Leaders and Northern Rivers Conservative Growth LP to continue to build client wealth.