Jason Donville is president and CEO of Donville Kent Asset Management. his focus is on growth and financial stocks.
CGI Group Inc. (GIB.A-TSX)
There are two reasons to own this stock. First, its arguably one of the cheapest growth stocks on the TSX. Second, the company is likely to make a significant acquisition in the coming year which will give the stock a further boost. CGI is our third largest position.
Direct Cash Payments (DCI-TSX)
The company boasts an 8.8-per-cent yield and has improved its disclosure relative to a year ago. Management thinks the stock is undervalued and if Direct Cash's yield returned to a more normal 5.5 per cent%, the stock would trade at more than $25.00.
Valeant Pharmaceuticals International Inc. (VRX-TSX)
High quality earnings and a driven management team. Stock is cheap given its strong growth rate.
Past Picks: October 17, 2013
Home Capital Group (HCG-TSX) 2 for 1 stock split 2/28/2014. (This is our sixth largest position)
Then: $76.02; Now: $52.15 +37.20%; Total return: +39.68%
Constellation Software (CSU-TSX) (This is our second largest position)
Then: $185.84; Now: $331.56 +78.41%; Total return: +81.67%
Parkland Fuel (PKI-TSX) took profit about six months ago
Then: $18.59; Now: $21.35 +14.85%; Total return: +22.07%
Total return average: +47.81%
For the second consecutive year in a row, the DKAM Capital Ideas Fund won the "best opportunistic hedge fund" in Canada at the Morningstar Awards on Wednesday night.
The global economy is growing slowly. Thus, the likelihood that the Central Bank or the Federal Reserve will raise interest rates is low and therefore the equity bull market has further to run. The recent drop in oil prices is like a massive tax cut that will be very positive for consumers everywhere. I think the short-term outlook for stocks (six-month view) is very positive.
Donville Kent Capital Ideas Fund
Top 5 Holdings
Concordia Healthcare – 13.3%
Constellation Software – 12.5%
CGI Group – 10.1%
Open Text – 9.2%
Enghouse – 8.0%