Leon Frazer companies

The portfolio management team will take into account a number of quantitative factors when determining Leon Frazer companies.

  • What is the five-year growth record in terms of cash flow, earnings and dividends?
  • What is the momentum on an annual basis in cash flow, earnings and dividend growth?
  • What is the current yield?
  • What is the company’s earnings variability?
  • How liquid is the stock?

This disciplined, conservative approach results in a generally low turnover of less than 15% annually in the portfolio.

Portfolio Manager discussing stocks in boardroomA number of factors may lead the portfolio management team to sell or reduce a position. Such factors include changes in the economic environment or in the company’s strategic direction‎; as well as; the health of the sector in which the company operates.

“If a position becomes over-valued we will trim it,” says Douglas Kee, Managing Director and Chief Investment Officer. “But we generally won’t sell it all — that’s part of discipline. If a 5% weighting rises to 6%, we will trim it back to 5%. We will take the money and put in a stock that is undervalued.”