Investment Overview

A U.S. equity strategy (max. of 10% in non-U.S. countries)
A contrarian, and primarily top-down macrodriven investment approach
Fundamental research is based on three vectors: macroeconomic environment, valuation of financial markets and sentiment of investors
Focused on exploiting anomalies across sectors and industries and, to a lesser extent, excesses at the stock level
Rebalancing of the portfolio occurs when the team’s outlook on the three vectors changes

Portfolio Construction

Typically, 80-120 positions
Alpha target: ~2% over a full market cycle
Tracking error range typically 3%-5%
Maximum position size of approximately 3% over security’s weight in the benchmark
Sector weights can reach a maximum deviation of +/- 10% versus the benchmark
Maximum foreign equity exposure of 10% of benchmark
Cash maximum position is 10% of the portfolio

Investment Team

Vital Proulx, CFA, Chairman & Co-Chief Investment Officer, Hexavest
28 years of industry experience
26 years with the team
B.B.A. Laval University
Jean-René Adam, CFA, Co-Chief Investment Officer & Portfolio Manager, Hexavest
15 years of industry experience
11 years at Hexavest
B.Comm. Sherbrooke University
M.Fin. Sherbrooke University
Kevin LeBlanc, CFA, Portfolio Manager, Hexavest
9 years of industry experience
2 years at Hexavest
B.Comm. Concordia University

Benchmark

S&P 500 Index