Some fund managers search the world for the best stocks. Others stick to Canada. But Fiera Capital’s Marc Lecavalier, who oversees National Bank of Canada’s NBI Quebec Growth Fund, has unearthed gems by focusing largely on la belle province. The $542-million fund, which has a bias toward smaller-cap companies, has outpaced both the S&P/TSX SmallCap and S&P/TSX Composite Total Return indexes over 20 years.
Alimentation Couche-Tard, which owns chains such as Circle K and On the Run, is a top holding. What’s the attraction? Alimentation Couche-Tard sells essentials, such as food and gasoline, so it’s recession-resistant. It generates free cash flow to make acquisitions, buy back stock or increase its dividends. It also benefits from past acquisitions, growing its network and capturing synergies. Once you’ve grown that network globally, it gives you lots of opportunities.We have had several takeovers since the start of 2022.