Edison Research Highlights Canadian General Investments' Strong Performance

Edison Investment Research's latest review praises Canadian General Investments (CGI) for its robust long-term performance against the Canadian market. Managed by Greg Eckel of Morgan Meighen & Associates, CGI has effectively navigated stock market volatility with a fundamental, long-term stock selection strategy. Eckel's skillful utilization of the allowed 25% allocation to U.S. stocks has notably included NVIDIA since 2016, contributing to CGI’s enhanced returns.

The company’s approach includes non-conformity to index sector weightings, with historical underweighting in financial sectors. Recently, CGI has adjusted its position in energy stocks due to increased dividends and share repurchases by major companies in the sector. Moreover, the introduction of two new stakes in uranium firms reflects a strategic response to favorable industry supply-demand dynamics.

CGI has also demonstrated commitment to shareholder returns with a progressive dividend policy, leading to increased annual payouts over the past decade and securing its spot among the AIC’s next-generation dividend heroes. Despite a wider discount in recent years, CGI’s consistent delivery of share price and NAV total returns over the last decade showcases its enduring value, viewed by the manager as a current investment opportunity.