What is the V-List?
Our model portfolio, the Veritas V-List, has outperformed the S&P/TSX Composite Index in 15 of the past 17 years.
The V-List is a concentrated portfolio of 12 to 25 companies recommended by Veritas Investment Research as the best investment opportunities drawn from our firm’s research.
Stocks are selected based on their potential for long-term capital appreciation, using bottom-up fundamental analysis and a strict review of accounting and disclosure practices to identify companies with defensible competitive advantages and the ability to generate meaningful cash flow.
“Our companies generate more cash, so they can either directly return more of cash to you, the investor, or if they’re in growth industries, they can invest in growth.”
– Darryl McCoubrey, Head of Research.
“Our level of diligence is deeper. Our analysts cover fewer names, and they spend more time looking at the details associated with those names.”
– Anthony Scilipoti, President and CEO
Why We Favour Energy:
V-List Performance Overview February 2022
In this 9-minute video conference (above), Anthony Scilipoti, Veritas President and CEO, and Darryl McCoubrey, Head of Research and Head of our Investment Committee, discuss the performance and approach of our V-List model portfolio.
They discuss:
• What is the V-List? The process is a bottoms-up, equally-weighted model portfolio of 12-25 companies. Names must be large caps and liquid. The V-List is also sector agnostic and has low turnover.
• Performance: Our V-List model portfolio is up 3.06% year to date, versus the S&P/TSX Composite negative 0.12%, as of the end of February. Since its inception in 2004, the V-List has outperformed S&P/TSX Composite by 335 basis points annually.
• Defensive bias: “We’re favouring stocks with downside protection with catalysts to the upside,” Anthony said.
• Energy: Why the V-List went overweight energy and avoided technology in 2021. “If we don’t drill more, we’re going to have a lot more inflation. That’s clearly going to be a big issue given affordability constraints,” Darryl said.
• The War in Ukraine: How the spike in energy prices affects our outlook on the sector.
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Our Long-Term Buy, Sell and V-List Performance
Veritas Sells underperformed by 5.06% CAGR
Veritas Buys outperformed by 3.38% CAGR
V-List Buys outperformed by 3.47% CAGR
Explanation:
- An equal-weighted portfolio of Veritas Sells would have underperformed the S&P/TSX index by a compound annual growth rate of 5.06%.
- An equal-weighted portfolio of Veritas Buys would have outperformed the S&P/TSX index by a compound annual growth rate of 3.84%.
- Our model V-List portfolio has outperformed the S&P/TSX index by a compound annual growth rate of 3.47% since inception (Oct. 31, 2004).
March 25, 1999 to April 30, 2022
Notes
Returns are calculated using model portfolios that include all Veritas calls in each category (Buys/Sells//V-List). Veritas Buy and Sell returns reflect equal-weighted portfolios that are rebalanced each month and on dates where recommendations change. Sell recommendations include Reduce recommendations when Reduces were added to our rating system in 2021. V-List portfolio returns reflect published weighting changes and recommendation dates, rebalanced monthly and on recommendation changes. CAGR = Compound Annual Growth Rate Returns for each rating and the benchmark includes dividends. All our calls are backed by published research that is available to our clients. Source: Bloomberg dates, Veritas Investment Research