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The Portfolio
CFAC Portfolio Management follows a bottom-up fundamental investing strategy, beginning with a screening process to identify stocks trading below their intrinsic value. Our analysts engage in an in-depth research process to evaluate and understand each company, which can take several months for a single investment idea. Before executing any trade, CFAC Portfolio Management ensures a comprehensive understanding of the company's valuation and the primary drivers of its future growth potential. This disciplined research approach is designed to minimize the risk of unforeseen challenges
Fund Structure
The CFAC Portfolio Management fund is guided by strict investment principles, ensuring a balanced and risk-averse approach while capitalizing on growth opportunities. The fund follows a long-only strategy, focusing on Canadian and US equities with a value-oriented approach. Investments are selected based on their potential for long-term sustainable competitive advantages, often referred to as economic moats, and strong cash flows. The team evaluates opportunities with a 3 to 5-year investment horizon, prioritizing businesses with high barriers to entry, consistent economic performance, and proven leadership teams.
Investment Life Cycle
The investment process begins with sector monitoring to identify opportunities that align with the fund’s strategy. These are developed into detailed pitch decks, evaluated by the Investment Committee, and subjected to thorough due diligence before inclusion in the portfolio. Post-investment, the team actively monitors performance to ensure alignment with the fund’s objectives. This disciplined approach enables CFAC to maintain a high standard of professionalism while managing a real-world portfolio.
Investment team monitors their coverage sector, scanning for opportunities of value.
Coverage team transforms thesis into a full pitch-deck, led by the portfolio manager and associate.
Pitch presented to the Investment Committee - vote on inclusion in portfolio (two-thirds vote to passs)
Coverage team spots an opportunity in the market, begins creating thesis.
Coverage team continues due diligence and finds point of entry into the given equity.
Investment Team Overview
Portfolio Managers
Portfolio Managers are responsible for guiding the strategic direction of the investment team. They play a pivotal role in the Investment Committee, where they evaluate and select stock pitches based on the team’s research and analysis. In addition to offering industry-specific insights, Portfolio Managers are tasked with tracking the fund’s portfolio performance and ensuring alignment with investment goals. They also coordinate meetings, mentor team members across all roles, and provide guidance to help junior members develop their skills. As leaders within the investment team, Portfolio Managers work under the Vice President of Investments and ensure the fund’s operations align with its long-term objectives.
Associates
Associates act as leaders in the development of stock pitch deliverables and serve as key contributors to the team’s strategic decisions. They are responsible for providing market insights and ensuring that the stock pitches are backed by sound analysis and thorough research. Associates play an integral role in valuation processes, assist in industry research, and mentor Junior Analysts to help them grow professionally. They also collaborate closely with Senior Analysts and Portfolio Managers to ensure the overall quality of the team’s work. With their strong analytical and leadership skills, Associates help bridge the gap between entry-level roles and senior positions within the investment team.
Senior Analysts
Senior Analysts take on a leadership role in the pitch creation process, overseeing every aspect from PowerPoint design to valuation. They collaborate closely with Associates and Junior Analysts to coordinate research and ensure the quality of data and analysis. Senior Analysts are expected to perform in-depth research and contribute valuable insights that inform the team’s investment decisions. They are also responsible for providing detailed feedback and mentorship to junior members of the team, fostering a collaborative environment that supports growth and learning. Reporting to Associates and Portfolio Managers, Senior Analysts are critical in ensuring that the team’s work meets professional standards.
Junior Analysts
Junior Analysts play a foundational role in the investment team, focusing on building industry knowledge and essential professional skills. Their responsibilities include preparing qualitative aspects of investment pitches, conducting thorough and detailed research, and managing data to support team decision-making. Staying updated on sector-specific news is a key part of their role, allowing them to identify emerging trends and opportunities. Junior Analysts also participate in the Analyst Training Program, where they develop technical skills such as financial modeling and valuation techniques. Reporting directly to Associates and Portfolio Managers, Junior Analysts gain hands-on experience that prepares them for more advanced responsibilities within the team.