Contrarian investor Hugo Lavallée shares his outlook on where he is finding opportunities that fit his mandate in reopening economies. Hugo has a foot in both value and growth stocks and can tilt either way. The course of the pandemic has played into his investment style: looking for good businesses that are facing what are likely to be temporary issues (difficult quarters or years). While bad events come and go, affecting volatility in the now, Hugo is focused on the later. His top holdings right now are companies selling small-ticket items, such as Five Below, Dollarama and Chipotle. Looking at ESG investing, Hugo’s main focus is on the “E” (environmental), but he notes that his peers at Fidelity do a great job looking at the “S” and “G” (social and governance). It’s also important to remember Fidelity has its own ESG ratings and doesn’t just follow the MSCI assessments.
Recorded on June 12, 2020.