A portfolio manager from Canaccord Genuity shares his latest investment tips
Wolfgang Klein, a portfolio manager with Canaccord Genuity Wealth Management, gives WP his latest investment tips.
“Sell in May go away? That is the burning question us traders/investors seem to be asking ourselves each and every spring,” Klein says. “The answer is perhaps, sort of and not really. We have been adding money across the pond, in small amounts albeit, to Europe and the Far East based on better valuations, an improving situation, accommodative money and strengthening emerging market currencies. For this task we of course use ETF’s: XEC-t for emerging markets currency unhedged, XEF-T for EAFE developed markets currency unhedged and XEU for Europe, again currency unhedged.”
“The market has been moving sideways to slightly higher over the past few months however not all is correlated to one, which is good. As technology names push higher, obviously valuations continue to stretch higher while commodity names from metals to oil to grains have trended lower since February and now sit at some decent support. So, if you are underweight commodities, perhaps it’s time to add some oil and metals, copper too, into your mix.
“Last idea, and it’s a favourite long-term hold of mine and that is Zimmer. I tell my team to buy this stock when it is down as it just seems to bounce back and wants to move higher. Zimmer’s integration with Biomet is moving along, its balance sheet is a bit heavier from the acquisition but should right size itself over time. At 15 times forward earnings, this orthopedic healthcare name has years of runway. We are all getting older and our body parts - knees and hips, specifically - are wearing out. Buy Zimmer for longer term investors. It isn’t a drug stock so the politicians are not hovering around it and it isn’t a biotech name so we need not worry about phase one to a hundred getting approved. Zimmer makes mechanical parts for our moving bodies and they are very good at it.”
The views expressed do not necessarily reflect the opinion of Canaccord Genuity Wealth Management. This does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
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A portfolio manager's picks
A portfolio manager's picks
“Sell in May go away? That is the burning question us traders/investors seem to be asking ourselves each and every spring,” Klein says. “The answer is perhaps, sort of and not really. We have been adding money across the pond, in small amounts albeit, to Europe and the Far East based on better valuations, an improving situation, accommodative money and strengthening emerging market currencies. For this task we of course use ETF’s: XEC-t for emerging markets currency unhedged, XEF-T for EAFE developed markets currency unhedged and XEU for Europe, again currency unhedged.”
“The market has been moving sideways to slightly higher over the past few months however not all is correlated to one, which is good. As technology names push higher, obviously valuations continue to stretch higher while commodity names from metals to oil to grains have trended lower since February and now sit at some decent support. So, if you are underweight commodities, perhaps it’s time to add some oil and metals, copper too, into your mix.
“Last idea, and it’s a favourite long-term hold of mine and that is Zimmer. I tell my team to buy this stock when it is down as it just seems to bounce back and wants to move higher. Zimmer’s integration with Biomet is moving along, its balance sheet is a bit heavier from the acquisition but should right size itself over time. At 15 times forward earnings, this orthopedic healthcare name has years of runway. We are all getting older and our body parts - knees and hips, specifically - are wearing out. Buy Zimmer for longer term investors. It isn’t a drug stock so the politicians are not hovering around it and it isn’t a biotech name so we need not worry about phase one to a hundred getting approved. Zimmer makes mechanical parts for our moving bodies and they are very good at it.”
The views expressed do not necessarily reflect the opinion of Canaccord Genuity Wealth Management. This does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
Related stories:
A portfolio manager's picks
A portfolio manager's picks
