Chris Hensen
Member since: Oct '14
Co-Manager of the Manulife International Focused F at
Manulife Asset Management

Latest Top Picks

(A Top Pick Oct 20/14. Up 20.87%.) Have done a great job of leveraging the balance sheet, making strategic acquisitions, doing strategic spinouts, buying back stock and increasing the dividend. Since he picked this, same store sales are accelerating. They have a full integration of Safeway, so there are a lot of cost synergies. At these levels, he doesn’t see as much upside as before, but wait for the right entry point.
(A Top Pick Oct 20/14. Up 7.45%.) This industry is highly consolidated and this company controls 40% of the global ratings. They do 45% EBITDA margins. Putting that into context, the other 200 largest companies in the US have an average EBITDA margin of about 25%. This is a business that can increase prices every year. In the last couple of quarters, they announced an additional $1 billion buyback and increased the dividend by about 20%.
(A Top Pick Oct 20/14. Up 23.64%.) The King of the food courts. Dominant franchises within the quick serves. Have been doing some acquisitions which will grow the top line by about 25%. Have about a 3% market share in Canada, and he could see them doubling that. Could see them doubling their revenue base over the next 7 years. Yield of 1.12%.
Because of the recent volatility and lower energy prices, this company got hit. Most recently they had to cut their build rate from 3 to 5 trucks to a lower level, to account for the slowdown they are seeing out West. Their exposure to oil sands is about 15%. Energy end market exposure is around 50%, but this is more about large pipelines that are in the ground and active, regardless of what the price of oil does. On top of this, their expansion opportunities in the US are 5-10 times greater than in Canada, and they are starting to gain more traction in the US marketplace. They are able to redeploy their hydro-vac trucks in other regions, where there is demand. 1.45% dividend yield.
This recently traded below Book Value. This is one of the largest commercial real estate operators in Québec. $8 billion portfolio, 75% exposed to Quebec, and the rest to Ontario, Maritimes and a little bit out West. Trading at Price to Book of around 1 and paying a dividend yield of 7.59%, and he doesn’t feel you can go wrong.