Andrew Marchese, President and Chief Investment Officer at Fidelity Canada Asset Management (FCAM), is proud to work with a team that is highly skilled and diverse at what they do, which thrives off a foundation made from a strong research staff. Andrew uses price-to-book as a cheap valuation metric to find securities with strong financials at almost floor price. The second the market starts to take off, he has noticed the liquidity of the market has not been that great. Andrew counsels his portfolio managers to not chase securities in a heavy fashion when liquidity is not that great, because market impact may be high. Implementation short fall may also be high, which Andrew illustrates as you may believe you are buying a stock at “x” price, but you may actually be paying 10% more than that price, because of market movements. Andrew notes that FCAM is fortunate to have a great trading desk that knows the investment teams’ intentions and executes accordingly, which benefits performance and clients.
Recorded on May 5, 2020.