CI Financial Corp (CIX-T)

Are very different asset managers. CI's balance sheet is not good. Prefers BAM, but shares have risen to a high valuation. Great managers and earnings stream (asset management fees).

Well established Canadian investment firm. Has watched for a long time, but never attractive enough to justify investment. Good management team with good capital allocation. However, better names in portfolio. 

Building US business dramatically, planning to take public sometime in the future. Canadian side is well run, but the mutual funds business hasn't grown in years, perhaps 10% a year. Big dividend. Combining both sides of the business should garner a $35 stock price easily, $50 if they really tried. Yield is 4.6%.

There have been management changes and it pushed too hard into the U.S. It has a good dividend yield of 5.4% and is buying back stock

Aggressive acquisition hunt for the last decade. Tough to be an independent in Canada, as Canadian banks control so much of net worth. He'd rather own the banks with their broader diversification. Warren Buffet says "A lousy industry will beat great management every time."

A massively levered company, though the business does well and gushes cash glow. But they spend a lot of money to buy asset manager businesses. That has not panned out.

It took on lots of debt at low interest rates which has given it some balance sheet trouble. It has sold some holdings. There isn't growth but debt is OK now. It is exceptionally cheap at 3.9X 2024 earnings. Pays a dividend of 5.6%. He bought some last week.

It used to be a great stock and the earnings ratio of 20X has dropped to 5X. It pays a 5% dividend and is buying back stock. The IPO of the U.S. business part is possible. It sold off part of its business to private equity via preferred shares which have a 14% guaranteed annual minimum return.. This could cause losses to common shareholders. He would prefer IGM.

Company selling off USA business rewarded by market.
Strong fundamentals. 
Likes long term prospects for company. 
Good time to buy shares.

Last quarter was in line, solid improvement in net flows. Fabulous job building out asset management platform. Moved down sharply with the group. Nice dividend of 6%, safe. Ridiculously cheap at 4.8x 2024 estimated earnings. 

Doesn't love the business. Sometimes names get too cheap not to buy. Beta play on improving markets. Not a 10-year hold.

Diversified away from core mutual fund base, which has no growth. Started piling on debt to buy Registered Investment Advisors in the US, which they haven't been able to roll out. Timing was bad. Insiders continue to buy aggressively. Cheap valuation.