Fiera Capital Corp (FSZ.TO)

Pays nearly a 7% yield. Cheap PE, too. They've grown by acquisition, owning hedge funds,. private equity, etc. But can they grow organically and increase margins? If they acquire, they must buy big companies to make enough of an impact. They also face heavy competition from ETFs and companies like Blackrock.

They are in the business of asset management. Their fixed income exposure could be a bit of concern to the market. He is a holder, thinks it is good value and expects a dividend increase going forward. They announced a $5 billion acquisition of a high net worth investment business last week.

He’s been looking closely at this company recently. If you look at total assets under management, they’ve grown a lot, much of that by acquisition. Their margins and expenses seem high. This is probably partially a result of paying top dollar for acquisitions, but he thinks something else is going on too. The compensation number seems very high. He thinks the company will have to digest its acquisitions and improve its profitability before it goes back up.

A money manager based out of Montreal involved in a number of Institutional high net worth. They've been a continual acquirer of other businesses. Pretty solidly managed, and have done well over time. Recently did a financing to shore up the balance sheet and help pay for some recent acquisitions. At these levels, it is a Buy.

It is not his favourite industry with the regulatory changes coming in terms of fee disclosure. Margins are going to get compressed. They have a great dividend growth record. It is a well managed company.

A tough, tough business. ETF’s are taking away mutual fund business. There are new regulations showing how much clients are paying in fees. This company has gone into the US and started buying US money managers. The stock is quite cheap and pays a nice dividend. National Bank (NA-T) owns half the company. Their growth rate has been a little bit higher than the rest of the business, and he likes the acquisitions that they have done. In a tough, tough industry, he would consider this as the best stock right now in that sector.

Asset management. National Bank (NA-T) owns a big chunk. They’ve started to make acquisitions in the US, which is where the growth opportunity really is. Unfortunately asset management is changing. Margins are going down, sales are dropping and everyone really doesn’t like the business right now. This is one of the better ones in the business. Has a decent dividend which is still growing. Own it for the dividend and the long-term story and asset accumulation, but just don’t expect a whole lot in the next year.

They are one of the leading consolidators in the Canadian asset management space. They have been very aggressive. It is probably a good long term one to hold on to. One day they may even be a takeover target themselves.

These are top-notch bond managers and very well respected. The stock chart is sort of meandering downward, and not a trend that he would want to be involved in. It is trying to find some support at the 2014 low. If it manages to hold support and then breaks the last high at around $12 he would consider buying it, but it is very early to make that prediction.

A Montréal-based rollup of investment managers around North America. Mostly pension fund type assets. He much prefers going with an organic growth story. 4% dividend yield.

(Top Pick Oct 25/13, Down 8.17%) He still recommends it. They made two acquisitions that look good and they raised their dividend. No one has really heard of them. People just weren’t paying attention.