Public equities, also known as stocks, provide HOOPP with long-term growth potential and investment return generation.
HOOPP invests directly in companies that trade on the stock market, and indirectly in the indices comprised of these public companies, in Canada, the U.S. and internationally. This provides the Fund with both diversification and return opportunities.
While the value of public equities fluctuates day-to-day, the combination of liquidity and volatility allows the Fund to increase exposure when the price of quality equities falls and decrease exposure when public stocks are highly priced. The increased
volatility of public equity investments is compensated with higher expected returns over time, which is a key requirement for the Fund.
Balanced portfolio with broad market exposure
Our strategy is to build a balanced, research-based portfolio with broad market exposure to generate returns over time. HOOPP invests in public equities in Canada, the U.S. and internationally, diversifying the Fund and providing return opportunities.
Importantly, public equity investments are a key way that the Fund gains exposure to growing companies, economies and markets around the world.
Research driven
The public equities portfolio is research-based and organized by industry with a focus on medium- and large-capitalization stocks in North America. Our team of experts studies industries to understand the factors that contribute to long-term value
creation. Valuations of individual stocks include an assessment of the company’s strategy and competitive positioning in the industry, historical and anticipated financial results, and the consideration of environmental, social and governance
factors that may influence future returns. For each stock analyzed, a fair or intrinsic value is generated, and special attention is paid when they trade below this value.
Broad index exposure and alpha-generating portfolios
The public equities portfolio includes both broad index exposure and alpha-generating portfolios. In this case, alpha refers to the returns earned on active investing above the benchmark. The size of the alpha-generating portfolios depends on
the number and quality of opportunities the team identifies, which varies considerably in response to market conditions. Ideally, HOOPP aims to invest in quality companies that are undervalued and hold these investments to generate attractive
absolute returns over the long term.
ESG considerations
HOOPP’s public equities team also engages with companies through our proxy votes and through direct communication with corporate management and boards on ESG issues when appropriate. We believe engagement can lead to better investment outcomes.
Learn more about HOOPP’s public equities portfolio and our investment performance in our latest Annual Report.
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.
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