Michelle Smith, CFA
BCV Asset Management Inc. follows a value investment style, seeking to purchase undervalued or fairly-valued companies that have long-term earnings and dividend growth potential.
We are a research-driven firm, performing original and exhaustive fundamental security analysis on the companies in which we invest, and we consider the research of outside firms in order to gain a broader perspective on these companies. We also perform economic forecasting of the key macroeconomic indicators in the countries and regions in which we invest. We continuously research and evaluate the companies in which we invest to ensure that the reasons for making the original investment remain valid and to ensure that the companies have not become overvalued. We apply the same level of detail in our research of the governments and corporations that issue the bonds in which we invest to ensure that these issuers will be able to pay the periodic interest payments and return the principal at the maturity of the bond.
We invest in shares of companies with a view to the total return provided by the capital appreciation and dividend income from these shares. We follow a long-term buy and hold investment approach and we prefer to remain fully invested at all times. We seek to maximize long-term returns while minimizing risk and we typically construct equally-weighted portfolios concentrated in a small number of companies. We believe that by focusing on the 20 to 25 companies in which we invest, we are making only the most compelling investments and we are sufficiently diversified at the same time. We also invest in the bonds of companies and governments with a view to the total return provided by the return of the principal amount of the bond and the interest income earned. We create well-diversified portfolios of bonds, diversifying by both issuer and term to maturity. We use a laddered approach to creating these portfolios in order to minimize reinvestment risk and we generally hold bonds to maturity.