As Director of Research of both Generation PMCA Corp. and our affiliated investment dealer, Generation IACP Inc., RJ oversees Generation’s equity and income research processes, risk management framework, and strategy development. RJ is registered as a portfolio manager at Generation PMCA.
RJ is passionate about financial literacy and education and volunteers at academic institutions helping the next generation of Canada’s financial and business leaders.
RJ graduated with a BBA from Wilfrid Laurier University in 2004 and is a CFA charterholder.
Outside of the office RJ enjoys kayaking, biking, Hellenistic history and spending summers at the cottage with his wife, four boys, and two dogs.
SELECT POSTS BY RJ STEINHOFF, CFA
The ‘High-Low’ Approach to Identify Outperformers
A simple approach we call “High-Low” identifies companies that generate high return on invested capital (ROIC) with low year-to-year variability in their ROIC. These companies tend to have strong franchises with loyal customers and pricing power that enables them to generate healthy free cash flow even as the overall economic landscape is challenging.
Accounting for Interest Rates
Some argue that the major market indices are not as expensive as their multiples suggest because interest rates are so low. Implied growth expectations, which accounts for interest rates, is near peak levels, in agreement with valuation multiples.
A Cautious U.S. Economic Outlook
With global equities hitting new all-time highs, investors are clearly not worried about an economic slowdown in the near term. Our view is that this is far from certain and the high current valuations pose a risk of a correction if the economy fails to get back in gear.