Portfolio manager Hugo Lavallée shares his contrarian viewpoint as markets and economies adapt to living in the time of COVID-19. Hugo notes that IPOs have been a great source of alpha for Fidelity Greater Canada Fund, which has flexibility to invest up to 49% in foreign markets. He considers some Asian IPOs to be interesting prospects, and is also looking at some Norwegian companies. He is currently maximizing opportunities in foreign markets where reopening seems to be happening faster than in Canada, but notes as well that Canadian growth stocks are often overlooked. Hugo is bullish on leisure stocks in reopening economies. Quality stocks, which are currently out of favour, are also of interest to him. They offer high free cash-flow yield: low-volatility names are offering 5%-plus.
Recorded on February 24, 2021.