Why this money manager owns health care supply company Thermo Fisher Scientific and recently sold Nike

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Daymon Loeb of Ravenstone Capital Management in Toronto, also owns Canadian Pacific Kansas City, Canadian National Railway and cable-connector giant Amphenol

Portfolio manager Daymon Loeb doesn’t allow election results, the latest inflation numbers or jobs reports determine which businesses to buy and sell.

Instead, Mr. Loeb and his investment team prefer to pursue companies they can buy and hold long-term. He says the strategy has been successful over many years and through various market cycles. Ravenstone’s equity portfolio, which usually includes 18 to 25 stocks, has returned 18.5 per cent so far this year and increased 29.1 per cent over the past 12 months. The portfolio’s three-year and five-year annualized returns were 6.4 per cent and 13.1 per cent, respectively. The performance is based on total returns, net of fees, as of Sept. 30.

As the old investment saying goes, ‘When everyone’s digging for gold, we prefer to sell them shovels,’ meaning that when we’ve identified a long-term secular growth opportunity, we figure out ways to invest in suppliers and companies that support that growth.

 

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