CFA candidates must command a wide range of knowledge to earn their charters, ensuring that new members will be able to add value in a diverse range of jobs throughout the finance industry. Although a large number of CFA charterholders work directly in equities, many choose a different focus while still maintaining a keen interest in equity markets—and in individual securities.

The Toronto Investment Analysts Roundtable (TIAR) was founded in September 2014 by members of CFA Society Toronto to create a forum for charterholders to meet and discuss equity markets and individual investment ideas. Although the group is predominantly composed of members working directly in equities, research, and portfolio management, it’s open to Toronto CFA members interested in networking, enhancing their stock-pitching skills, and exchanging investment ideas. All TIAR members share the same passion for capital markets and investing.

TIAR meetings are held twice every month, with a typical attendance of about 12 to 18 individuals, and sessions alternate between industry speaker presentations and stock pitches. Industry speakers are invited to share their experiences working in equities or investment management to give members insight into potential career paths and emerging industry trends. At a recent meeting on Nov. 28, for example, Dale Powell from Citi Private Bank spoke about his 30-plus-year investment career, which has focused primarily on asset allocation and portfolio construction.

It was a broad-based discussion, but centred on those ultra-high net worth individuals who can generate significant revenue for a wealth management platform, but who also require deeper expertise and a wider array of services.

“Although the group is predominantly composed of members working directly in equities, research, and portfolio management, it’s open to Toronto CFA members interested in networking, enhancing their stock-picking skills, and exchanging investment ideas.”

Stock-pitch sessions begin with a general market update, covering some of the key recent developments. A volunteer is appointed ahead of time to prepare a short presentation that will lead discussion. The session structure is fairly informal, and other members are invited to contribute and challenge prevailing views. A recent meeting on December 12 for instance, was focused on small cap outperformance, OPEC’s new production quota, and seasonal trends in historical equity market performance. After a brief review of the recent performance of global indices, commodities, bonds, and currencies, the focus then turned to economic data due to be released in the coming weeks and to other notable items the group is watching.

After the market update, a member is invited to present a stock pitch for the group to review. The scope is very comprehensive, but the purpose is simple: Should this investment be included in a simulated portfolio managed by TIAR? Each pitch requires an extensive amount of research, but members have flexibility to choose their investment idea, which can be either a long or a short equity position.

The December 12 pitch was a long position in Home Depot. In addition to presenting the customary business overview of the company and valuation work (a discounted cash flow was performed), the member focused on four key fundamental drivers: nascent e-commerce business, an opportunity to expand to non-traditional customers (professionals), the company’s recent data breach in 2014, and the broader recovery taking place in the U.S. economy. When a presentation is over, other members are encouraged to challenge the pitch before the group votes on whether or not to include it in the portfolio. (In this instance, the group decided to add Home Depot to the portfolio, with a 10 percent allocation.)

If you’re looking to discuss individual equity investments and economic events and develop skills in research and analysis, TIAR presents a great opportunity to do so. If you wish to participate in future meetings or are interested in presenting an investment idea, discussing a financial topic, or providing a market update, RSVP to TOINVAR@gmail.com to confirm your attendance.