HOOPP invests in public equities in Canada, the U.S. and internationally, providing the Fund with diversification and return opportunities. Importantly, public equity investments are a key means through which the Fund obtains exposure to growing economies and markets around the world.
Our investment team focuses on medium-to-large capitalization stocks using a team-based approach to assess industry dynamics, the quality of specific companies and the valuation of their stock prices. Ideally, HOOPP aims to invest in quality companies that are undervalued, and hold these investments to generate attractive absolute returns over the long-term.
Some of the factors assessed in judging quality include balance sheet strength, returns on capital, the level and stability of margins, and free cash flow generation and management strength. The industry context is also considered. For each stock analyzed, a fair or intrinsic value is generated, and special attention will be paid when they trade below this value.
HOOPP’s Public Equity team also engages with corporate management on ESG issues when appropriate.