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Jeff Mo, portfolio manager with Mawer Investment Management Ltd.
The Globe and Mail
Portfolio manager Jeff Mo is confident in his investment strategy amidst the market turbulence caused by U.S. President Donald Trump’s trade initiatives which are impacting economic stability.
At Mawer Investment Management Ltd., Mo emphasizes a focus on businesses with robust competitive advantages that can endure a potentially challenging economic landscape marked by slower growth and rising costs.
“Choosing the right companies becomes increasingly critical, as fluctuations in pricing for inputs or outputs can be severe. Companies with competitive edges tend to retain customer loyalty better than others,” explains Mo, who oversees approximately $3.3 billion in assets, including the Mawer U.S. Mid Cap Equity Fund and the Mawer New Canada Fund.
The investment focus includes what they refer to as “wealth-creating companies,” characterized by their returns on invested capital exceeding the cost of that capital.
The U.S. Mid Cap Equity Fund has shown a return of 3.4 percent over the past year, with a three-year annualized return of 7.6 percent and an annualized return of 4 percent since its inception in September 2021. Conversely, the Mawer New Canada Fund, which has been largely closed to new investors since 2004, recorded a 0.5 percent decline over the past year but boasts a five-year annualized return of 12.3 percent.
In a recent interview, Mo, who operates out of Calgary, discussed three key stocks in the U.S. Mid Cap Equity Fund and one that he recently sold.
Investments and Recent Moves
**Amphenol Corp.** APH-N was acquired at $38 per share at the fund’s launch. Its growth trajectory has been boosted by increasing demand for connectors and sensors, particularly in artificial intelligence.
**Interactive Brokers Group Inc.** IBKR-Q is recognized for its innovative electronic brokerage services, having been acquired at $88 in January 2024 and increased to $150 in October 2024.
**Resmed Inc.** RMD-N, a leader in sleep apnea devices, was purchased at $174 and then $183 per share in late 2023 and early 2024, respectively.
Recently, Mo sold **Ulta Beauty Inc.** ULTA-Q, which he originally bought at $379 and sold for $395. Despite historical success, Mo opted to sell due to decelerating growth and increased competition.
