In the age of change, agility is everything.
With uncertainty around inflation rates, central bank policy, an impending recession, and geopolitical developments, equity investors can expect volatility in 2023. Portfolios that can adapt to unpredictable and changing market conditions will be imperative to achieve long-term objectives.
One way to capitalize on change is by looking to the market leaders. Because leaders in one cycle are seldom the leaders in the next one, investors with exposure to these leaders may continue to benefit from potential growth despite volatility or economic weakening. The chart below illustrates how market leaders in one cycle tend to underperform in the next, with bear markets being the inflection point where leadership changes.
Relative Performance of Prior Bull Market Leader vs. Next Bull Market Leader (Beginning of bull market indexed to 100)
Source: Bank of America Merrill Lynch, as of November 11, 2022. The beginning of each bull market is indexed to 100 (base), reflecting the relative performance of the prior bull market leader versus the next bull market leader. The y-axis shows the magnitude of the relative outperformance / underperformance and is expressed as 100 times the ratio to the base value. Past performance is not indicative of future results. One cannot invest directly in an Index. See disclaimers for important information.
Solutions Designed to Capture Leading Growth Companies
A concentrated portfolio with a flexible, go-anywhere approach that seeks to identify companies that exhibit market leadership characteristics and above average growth prospects.
An actively managed high-conviction portfolio that seeks to identify innovative U.S. companies with exceptional corporate leadership and strong growth prospects across market cycles.
View StrategyPortfolio seeks to target market leaders and innovators, to gain exposure to potential growth opportunities in the U.S. Small-Mid Cap space.
View StrategyOur Distinct Approach to Finding the Leaders
True Active Management
Navigating through the different cycles requires dynamic, active management.
The team’s distinct investment philosophy of capturing the market leaders has given them the flexibility to change their views of how the future will unfold. They start each day with an objective view on how the markets will unfold. Working collaboratively with AGF’s Equity Analyst team, the team reviews the “best ideas” from across the investment universes and assesses their conviction level in each stock.
Focus on Innovation
Innovation continues to drive company growth therefore resulting in new investment opportunities. The team believes sustainability, precision medicine, autonomous vehicles, robotics and artificial intelligence, among other innovations, represent a ripe landscape for future investment.
They look for leading U.S. and global companies which they believe exhibit exceptional innovation and corporate leadership. In their view, these innovators have the greatest odds of potential success, regardless of economic and/or political factors.
Upside Participation and Downside Protection
Though equity markets have historically spent more time (and magnitude) in uptrends than they have in downtrends, ignoring defense can also set investors back significantly.
The team seeks to participate on the upside as well as protect investor capital on the downside.
Dynamic Approach to Growth
The team believes a more dynamic approach towards growth is warranted in order to respond in a timely manner to opportunities arising from heightened market volatility.
The stylistic composition of the portfolios can change over time. Take for example, AGF U.S. Large Cap Growth Equity Class, as shown in the style map below. The portfolio has more dynamic allocations compared to its peers and has shifted from growth towards more a more core/growth orientation.
eVestment 10-Year Style Map Trail – AGF U.S. Large Cap Growth (AGF American Growth Class) vs. Large Cap Core Equity Peer Group
Source: eVestment, as of November 2022, portfolio characteristics are based on the AGF U.S. Large Strategy fee-paying representative account.
Mitigating risk is also a key part of the team’s approach. In times of uncertainty, they take a disciplined and cautious approach by repositioning the portfolios, including reducing exposure in companies that may be more vulnerable in the face of a weakening economy, retaining higher levels of cash in order to redeploy upon larger selloffs, and introducing a more diversified sector mix into the portfolios.
Fund Managers & Investment Team / Resources
Tony Genua has been Portfolio Manager of AGF's U.S. growth strategies since he joined the firm in 2005. Throughout his career in portfolio management, Tony has remained committed to his proven investment strategy that identifies leading growth companies in every cycle. Tony is also a member of the AGF Asset Allocation Committee (AAC), which is comprised of senior portfolio managers who are responsible for various regions and asset classes. The AAC meets regularly to discuss, analyze and assess the macro-economic environment and capital markets in order to determine optimal asset allocation recommendations.
Tony's portfolio management experience includes retail mutual fund investments, sub-advisory platforms and institutional portfolios. Tony's direct experience as a portfolio manager is complemented by the three years he spent as a market strategist on Wall Street.
Tony earned his BA in Economics from the University of Western Ontario.
Registered as a Portfolio Manager under AGF Investments Inc. and AGF Investment America Inc.
Sam Mitter is the Co-Portfolio Manager for AGF U.S. Small-Mid Cap Fund and the associated Separately Managed Account (SMA) as well as the Institutional AGF U.S. Small-Mid Cap Growth Equity strategy. In this role, he is responsible for assessing appropriate portfolio positioning and screening the universe of eligible stocks to identify purchase candidates. He also works closely with the research team to identify investment opportunities and monitors the fundamentals of existing holdings. He joined AGF in 2014 and has been working with Portfolio Manager Tony Genua on his mandates since 2016. Sam is also Associate Portfolio Manager on the AGF Global Select and AGF American Growth Fund mandates, and has gained experience as a member of the AGF Equity Research Team covering the Information Technology sector.
He has been actively involved in the investment industry for 20 years. Prior to joining AGF, Sam was Vice-President, Equities & Associate Portfolio Manager at Meadowbank Asset Management, where he was involved with venture capital and early-stage technology companies. He also gained experience with roles at Sentry Investments, Scotia Asset Management and Altamira Management Ltd.
Sam holds a B.Sc. from Culver-Stockton College and an MBA from Santa Clara University.
Portfolio Manager under AGF Investments Inc. and AGF Investment America Inc.
Auritro Kundu serves as Co-Portfolio Manager of the AGF American Growth Strategy, including its related Funds, SMAs and Separate Accounts. A staunch believer that innovation can be found in every industry, his investment philosophy is rooted in identifying innovative companies who boast strong earnings growth, free cash flow and return on equity.
Auritro joined AGF in 2015 and previously served as an Analyst responsible for fundamental research and analysis of the Information Technology and Consumer Discretionary sectors. Prior to joining AGF, he was an Equity Research Associate Analyst at National Bank Financial, where he was responsible for coverage of Canadian Information Technology equipment companies. Prior to that, he worked at Rogers Communications in corporate development and at Research in Motion in product management.
Auritro has a Bachelor of Applied Science degree in Electrical Engineering from the University of Toronto and earned an MBA from the Rotman School of Management at the University of Toronto.
Portfolio Manager under AGF Investments Inc. and AGF Investment America Inc.
Jonathan Lo is Vice-President, Growth Equities supporting AGF’s growth and sustainable investing mandates. He is an integrated member of the Investment Management Team, participating in investment strategy and portfolio management discussions, and is responsible for articulating positioning and investment outlook to clients and prospects.
Prior to joining AGF in 2012, Jonathan worked on the Institutional Equity Research team at CIBC World Markets covering the agriculture and transportation sectors. Prior to that, he worked as a consultant at a private equity firm specializing in turnarounds in London, U.K.
Jonathan has an MBA from Oxford University in England and a B.Sc. from Seton Hall University.