Mike Vinokur, portfolio manager and senior wealth advisor with Propellus Wealth Partners at iA Private Wealth Inc. in Toronto. Illustration by Joel KimmelThe Globe and Mail
Money manager Mike Vinokur isn’t one of those investors concerned about holding cash right now, even as stock markets trade near all-time highs, despite recent volatility.
“We don’t suffer from FOMO [fear of missing out],” says the portfolio manager and senior wealth adviser with Propellus Wealth Partners at iA Private Wealth Inc. in Toronto, who oversees about $200-million in assets.
“We’re tactical in our approach and unafraid to hold cash as an asset class when warranted,” adds Mr. Vinokur, whose all-equity growth portfolio is about 29 per cent in cash right now.
He’s expecting a “healthy” correction of up to 10 per cent to happen in the near term, which he views as an opportunity to deploy some of that cash.
“We’re ready to pounce,” says Mr. Vinokur, adding he has a “buy list” of about 10 to 15 stocks for when the time comes.
He hasn’t started buying, even after Thursday’s selloff.
“We are more concerned about stepping in front of a freight train than missing out on upside at this juncture,” he says. “Our technical indicators are still showing warning signs, so we prefer to sit on the sidelines for the time being.”
The strategy is part of his approach to protect his clients from the full impact of a steep market drop while also preparing to buy quality securities when they appear to be on sale.
Mr. Vinokur describes himself as a “fundamental value manager,” who also relies on some technical analysis and seasonality to pinpoint entry and exit points for stocks.
His average growth portfolio, which includes about 40 to 60 stocks, has returned 12.1 per cent year-to-date and 14 per cent over the past 12 months. Its annualized return since inception in June, 2023, is 16.2 per cent. The performance data is based on total returns, net of fees, as of Oct. 31.
The Globe spoke with Mr. Vinokur recently about what he’s been buying and selling.
Name three stocks you’ve been buying.
Merck & Co. MRK-N, the Rahway, N.J.-based multinational pharmaceutical company, is a stock we bought last month at US$86.97 a share.
The health care industry, especially in the U.S., has been out of favour for a while, in part due to some Trump administration policies that have affected it. We think the sector will stabilize. Also, as baby boomers age, health care is a fairly recession-resistant industry.
Merck is a well-diversified pharmaceutical company with a strong drug pipeline, a strong balance sheet, and a healthy dividend yielding about 3.8 per cent. The stock is also trading at a reasonable valuation of about 10 times forward earnings.
We’re cognizant of the risks associated with the pending patent expiration for Keytruda, its blockbuster oncology drug, but the recent U.S. Food and Drug Administration approval of Keytruda Qlex – a subcutaneous way to administer Keytruda – has reduced those risks somewhat.
Lincoln National Corp. LNC-N, the Radnor, Penn.-based insurance company, is a stock we bought twice in the past year – once in December, 2024, and once in January – at an average cost of US$32 a share. The company provides life, health and disability insurance as well as some retirement products.
It has undergone a turnaround in recent years, including the appointment of a new chief executive officer who has boosted capital and increased margins.
Earlier this year, investment firm Bain Capital LP took a 9.9-per-cent equity stake in Lincoln at US$44 a share, a huge premium to the then-trading price. The new partnership with Bain Capital also increases the company’s ability to make non-dilutive investments.
Lincoln maintains a healthy regulatory-based capital position of more than 420 per cent, trades at approximately 5.25 times forward earnings, and has a dividend yield of about 4.3 per cent.
We believe this is a solid business capable of generating higher returns over time.
Russel Metals Inc. RUS-T is a stock we bought in August for $41.39 a share. It’s the type of company we don’t think investors have been paying enough attention to. It has carved out a niche: not producing metals, such as steel, but housing and distributing them. It has become one of the largest metals distribution and processing companies in North America.
The company has proven to be an excellent acquirer, eking out synergies through integrations and economies of scale. Its latest deal to acquire seven service centre locations from Kloeckner Metals Corp. shows the market how its management team will take advantage of opportunities when the price and geography are right.
We view the company’s strong balance sheet, low debt, high returns on capital, solid 4.4-per-cent dividend yield and regular share buybacks as an enticing combination. What’s more, given its expanding footprint in the U.S., the tariff situation doesn’t have a meaningful impact on its business.
Name a stock you sold recently.
Alcoa Corp. AA-N, the giant Pittsburgh-based aluminum company, is a stock we sold recently after owning it for less than a year. We bought it in December, 2024, for US$38.30 a share and sold it for US$39.48 in October. We really liked the company’s deleveraging strategy and, given the stock had fallen from its 2022 peak of US$98, our entry point made sense.
However, as 2025 progressed, we realized that although demand for aluminum may be strong, the tariffs the Trump administration imposed may not be resolved soon and will continue to impede our earnings projections and, therefore, valuation. [Although Alcoa is a U.S. company, a significant portion of its North American aluminum production is in Canada, which the Trump administration hit with 50 per cent tariffs.] We took the opportunity to walk away with a small profit.
This interview has been edited and condensed.
Editor’s note: A previous version of this article said the U.S. Food and Drug Administration had recently approved Keytruda, an oncology drug. The approval was for Keytruda Qlex, a subcutaneous way to administer Keytruda.