Dan Rohinton, vice president & portfolio manager at iA Global Asset Management, shares his outlook on Canadian & Global Large Caps.
Dan Rohinton, Vice President & Portfolio Manager, iA Global Asset Management
Focus: Canadian & Global Large Caps
Top picks: CRH Plc, LSEG Group, Apollo Global
MARKET OUTLOOK:
A Tale of Two Markets
The dominant theme in the current market is one of bifurcation. A select group of “haves” is flourishing, driven by the massive investment wave in Artificial Intelligence. This includes stocks in semiconductors, cloud computing, and software that are experiencing immense growth and valuation expansion. These market leaders are absorbing a disproportionate amount of investor capital and attention, pushing major indices higher.
The “Have-Nots” Struggle
On the other side of the spectrum are the “have-not” sectors—a broad range of stocks with no direct or indirect AI exposure. These companies, despite solid fundamentals, are experiencing low investor interest and stagnant valuations. Many are in traditional sectors or are consumer-facing businesses grappling with lingering inflation and a more cautious consumer. This has created a significant valuation gap between the market leaders and the rest of the pack.
Macroeconomic Headwinds & Tailwinds
The good news is that central banks are pivoting towards a more accommodative stance. With inflation showing signs of cooling and rate cuts expected over the next six to 12 months, this could be a major catalyst. If interest rates come down, it may provide the necessary tailwind to broaden the market rally beyond the tech giants and re-engage investors in overlooked sectors, potentially narrowing the valuation gap between the “haves” and “have-nots.”
TOP PICKS:
Dan Rohinton’s Top Picks: CRH Plc, LSEG Group & Apollo Global Dan Rohinton, vice president & portfolio manager at iA Global Asset Management, shares his top stock picks to watch in the market.
CRH Plc (CRH NYSE)
CRH is a leading global provider of building materials solutions, from aggregates and cement to asphalt and concrete. They are a critical player in infrastructure, commercial, and residential construction projects across North America and Europe.
Why we like it: We like CRH for its strong exposure to multi-year infrastructure spending trends and its market-leading positions in key regions. The company’s focus on essential materials and its vertically integrated model provides stable, predictable cash flows. Additionally, CRH’s strategic acquisitions and capital allocation strategy are expected to drive margin expansion and shareholder returns, making it a defensive yet growth-oriented play in the industrials sector.
LSEG Group (LSEG LON)
The London Stock Exchange Group (LSEG) is a global financial markets infrastructure provider. Beyond operating exchanges, it’s a major player in data and analytics, offering financial data, post-trade services, and clearing solutions through platforms like Refinitiv.
Why we like it: LSEG is a diversified, defensible business with a powerful data moat. While its traditional exchange business provides a stable foundation, the true growth engine is its data and analytics division. This segment benefits from recurring revenue and is a critical tool for financial institutions. The company is poised to capitalize on the increasing demand for real-time market data and data-driven insights, giving it a strong competitive advantage and high-margin growth.
Apollo Global (APO NYSE)
APO is Apollo Global Management, a global alternative asset manager. It specializes in private equity, credit, and real estate, managing funds for institutional investors and pension plans. A key part of its business is its retirement services platform, Athene.
Why we like it: We like Apollo for its dominant position in the expanding private credit market and its innovative asset management model. The company’s Athene platform provides a large, sticky pool of capital that can be deployed into high-yield, private credit strategies. This “insurance-with-a-twist” model generates stable fee income and strong investment performance, making Apollo a high-growth, high-margin alternative to traditional asset managers. It’s well-positioned to benefit from the ongoing institutional shift away from public markets.
DISCLOSUREPERSONALFAMILYPORTFOLIO/FUNDCRH NYSENNYLSEG LONNNYAPO NYSENNY
PAST PICKS: SEPTEMBER 30, 2024
Dan Rohinton’s Past Picks: LVMH Louis Vuitton, Visa & TransDigm Group Dan Rohinton, vice president & portfolio manager at iA Global Asset Management, discusses his past stock picks and how they’re doing in the market today.
LVMH Louis Vuitton (MC EPA)
Then: €688.50
Now: €509.90
Return: -26%
Total Return: -24%
Visa (V NYSE)
Then: US$274.95
Now: US$339.36
Return: 23%
Total Return: 24%
TransDigm Group (TDG NYSE)
Then: US$1427.13
Now: US$1301.50
Return: -9%
Total Return: 3%
Total Return Average: 1%
DISCLOSUREPERSONALFAMILYPORTFOLIO/FUNDMC EPANNYV NYSENNYTDG NYSENNY