BNN's portfolio manager interviews are a great repository of investment ideas from across the asset management spectrum.
Today we feature Robert (Hap) Sneddon FCSI, principal of Castlemoore Inc., a Toronto-based private asset manager. During the September 20, 2010 appearance, Sneddon, a frequent guest on BNN, discussed his 3 top picks for the coming period.
Sneddon likes $5.3-billion energy and services company, Emera Inc. (EMA-T, 27.900) The company's holdings (mainly electrical utilities in the Maritimes and New England) are "regulated by government" and he believes, "ROEās (Return on Equity) allowed are about to be raised from 9% to about 10.5%." Sneddon loves the dividend (0.1875/quarterly). He added, that "utilities, in general, have done very well."
Sneddon's second top pick for the period ahead is the HAP Seasonal Rotation ETF (HAC-T, 11.160) Seasonal Rotation ETF, managed by Don Vialoux and Brooke Thackray. Up 11% year-to-date. [note from the issuer about the ETF] This fund seeks to benefit from seasonal investing with historically demonstrated buy and sell dates during times of the year when markets and sectors have traditionally outperformed because of one or more recurring annual events.
He also likes the CurrencyShares Japanese Yen E.T.F. (FXY-N, 115.400) Currency Shares Japanese Yen ETF. Sneddon likes to diversify holdings. [The yen's] had a nice breakout. In his opinion, FXY offers "Good risk reward from here."
Report Card (How Did Last Year's Top Picks Do?)
CGI Group (A)(GIB.A-T, 14.900) A Top Pick Aug 4/09. Up 32%. Sneddon said, "Looks like it is base building now and would be interested if it came back and little." He added, "CGI is in a strong category and its a well run company."
Transalta Corp (TA-T, 21.620) A Top Pick Aug 4/09. Up 9.0%. Sold this to get into Emera (EMA-T). (See Top Picks.)
iShares 20+ yr Tr. Bond (TLT-N, 102.260) A Top Pick Aug 4/09. Up 15.6%. 20+ yr Treasury Bond ETF. Until he sees an issue with inflation, he will continue to hold.
Data: Stockchase.com
