Investment Strategies
Brownstone Large-Cap Mandate & Brownstone Founders Fund
Brownstone applies a long-term investment horizon to construct a portfolio of primarily large-cap Canadian stocks that exhibit attractive risk/reward dynamics. The main objective is long-term wealth creation, with dividend income being a meaningful contributor to total return. Generally, between 30 and 55 individual positions are held at any one time, and select mid-cap companies are included in the portfolio to facilitate capital growth. The firm utilizes a position-sizing framework to take advantage of market mis-pricing and to allocate a larger portion of capital to top ideas. Brownstone utilizes a bottom-up research approach, so sector weightings are an outcome of security selection. However, individual holding weights and sector weights are monitored from a risk management perspective to ensure the portfolio is not over-exposed to any one company or sector. The Brownstone Founders Fund replicates the Large-Cap mandate and is currently only available to Brownstone clients.
Brownstone Small-Cap Mandate
Brownstone applies a long-term investment horizon to construct a portfolio of primarily small-to-mid cap Canadian stocks that exhibit attractive risk/reward dynamics. The main objective is long-term capital appreciation. Brownstone seeks to identify smaller Canadian companies that are overlooked by the broader market or are difficult for larger investment managers to invest in. The portfolio is position-sized to take advantage of mis-pricings and to allocate a larger portion of capital to top ideas. Brownstone utilizes a bottom-up research approach, so sector weightings are an outcome of security selection. However, individual holding weights and sector weights are monitored from a risk management perspective to ensure the portfolio is not over-exposed to any one company or sector.
Brownstone US Equity Dividend Mandate & Brownstone US Equity Fund
Brownstone offers a US Equity Dividend mandate exclusively through the Brownstone US Equity Fund. The Manager applies a disciplined and repeatable bottom-up research process to select stocks and construct a concentrated portfolio of US equities, while maintaining appropriate levels of diversification. The Manager is biased towards dividend growth and focuses on high-quality, profitable companies that are willing to return increasing amounts of wealth to the shareholders over time in line with sustainable earnings growth. The Manager emphasizes low turnover, a long-term holding period, and a tax-conscious approach to trading, while minimizing transaction costs.