Alex Ruus, portfolio manager, Arrow Capital Management 

FOCUS: North American stocks  

MARKET OUTLOOK:

Expect markets to be choppy over the coming year with wide divergences between various sectors of the market. Individual security selection will be key to generating strong returns as there are both tremendous areas of undervaluation and overvaluation in the market.

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TOP PICKS:

Freehold Royalties (FRU TSX)

A leading oil and gas royalty company designed to prosper in all markets. The company is way undervalued trading at a double-digit free cash flow yield and an attractive 7.5 per cent dividend.

Polaris Renewable Energy (PIF TSX)

A growing green power producer with geothermal, hydro, and solar projects in South and Central America. The company is undervalued trading at just six times EBITDA and a 5.6 per cent dividend.

Keyera (KEY TSX)

A growing provider of critical midstream infrastructure to the energy sector. The company is undervalued trading at just 15 times earnings and a 5.9 per cent dividend. 

PAST PICKS: October 19, 2022

Enbridge (ENB TSX)

• Then: $51.35
• Now: $47.86
• Return: -7%
• Total Return: -0.2%

Tourmaline Oil (TOU TSX)

• Then: $75.00
• Now: $69.32
• Return: -8%
• Total Return: 3%

Element Fleet (EFN TSX)

• Then: $17.72
• Now: $20.73
• Return: 17%
• Total Return: 19%

Total Return Average: 7%