Patient. Disciplined. Distinct.

We believe that superior equity portfolios are built by investing in a focused number of companies that have great management and operate in diverse industry sectors.

"As conservative investors we must diversify, but as effective investors, we must focus and diversify wisely. This has been our investment philosophy since 1995."

Gord O'Reilly

 

 

Our investment process is:

• Disciplined

• Patient

• Repeatable

 

Investment ideas come to us from industry contacts, screens, reading, and competitors. We have a diligent, internal research process that we follow strictly, and form independent judgments about the companies in which we invest.

Our investment process balances the science of quantifiable, financial metrics and the art of evaluating the people that make up the management of businesses. We evaluate three critical ingredients: people, business and price.

Because the traditional definitions of “value” and “growth” have become so blurred, we have developed the nomenclature of Core Companies and Opportunistic Companies to categorize the two types of companies we purchase.

 

"Limiting the number of companies in a mandate to a maximum of 25 allows us to become familiar with all aspects of a business. Our limits also ensure each client’s portfolio does not exhibit index-like characteristics, thereby giving the portfolio a greater chance of outperforming over the long term."

ROY HEWSON

CGOV Asset Management believes that a superior equity portfolio can be built by investing in a focused number of companies run by great management teams diversified across globally recognized industry sectors.

There is a wide body of research extolling the virtues of diversification, but far less has been devoted to the risks of being overly-diversified. Over-diversifying is probably the single most influential reason that the vast majority of professional managers under-perform their targeted benchmark after fees. As conservative investors we must diversify, but as effective investors we must focus and diversify wisely.

Limiting our equity holdings to a maximum of 25 companies per mandate allows us to become familiar with all critical aspects of a business including:
 
• management
• business plan execution
• employees
• customers
• suppliers
• board members
• capital structure
• competitive advantage