Onex Corp (ONEX.TO)

Moderately disposed towards this company. A really, well-run firm. Great insider ownership. Have done a phenomenal job on the deals that they have invested in over the last 5-10 years. Likes what they are doing. His only caution is that they are going to run into problems at some point with some deals, and when that happens you are going to see a pullback.

Although a Canadian company, they have most of their investments outside of Canada. Have done so well that they’ve sold a lot of investments and now have a lot of cash on their balance sheet. Just announced an acquisition and she thinks there are more to come. Yield of 0.31%.

Thinks the way to play this over the cycle is to try and anticipate when a lot of its private equity investments are going to crystallize. That is what generates the profitability and the asset value of the company. If you have a sense of when there is a big IPO cycle, then away you go. His sense is that cycle did probably peak 3-4 months ago, so if you own you probably have had your short-term little pop. Longer-term, this is evolving into a broad based company where they are always launching new funds. This is one that you just salt away and just let it go.

Have done a lot of work in the last couple of years to focus investors on the fact that they actually manage money and have done a good job of it. They now have about 50% of their value in cash. Have the ability to reach their growth target of 15% annually. A decent entry point of 10% premium to their NAV now. Yield of 0.31%.

The one thing this company doesn’t do that some of the US competitors do is the dividend. The free money is off the table with a lot of these quasi private equity guys.

Just raised $5.215 billion in their new fund. Shareholders share with the management team in the revenues from new funds, so this additional money is good news. He bought this because we are in a market period where we are going to see a lot more IPOs. A lot of the companies that are in the Onex stable, which are often carried at cost, when they go public or get sold there is a big bump when people see that they are going to start moving this company up. Has a lot more room to grow. Dividend yield of 0.24%.

This company has assembled a whole group of companies, which he thinks are worth a whole lot more than they paid for them. They carry them on the balance sheet at cost. Feels we are entering a period in the market where it will be opportune to realize values on these companies either by selling them or by taking them public. Feels the 1^st time they spin something out and people realize how much value is sitting there, you are going to see the share price bounce even more than it has.

Really likes the private equity space. This one has done an incredible job of creating value. Still likes this. Thinks it is a very good long-term play. You want to buy these companies when they are trading at or below their NAV. This one is trading at a premium to that. Great management.

Not a huge fan of this. Hard to understand their strategy. They are a big holding company that likes to take private equity positions, likes to try to be a consolidator. Has been a good performer.

(A Top Pick Nov 16/12. Up 35.28%.) At the time, the chart was trying to break out and it was under owned. One of Canada’s few conglomerates. He would still be a Buyer.

Long term well managed company. There is not a lot of information publically available as to their investments until they report results.

(Market Call Minute.) This is a way to get exposure to manufacturing in the US. They have a lot of companies they can spin out.

Likes the private equity space. Starting to monetize a lot of their assets. Likes it long term.

Has had a very good run. If you own, you have to decide if you believe in the management longer-term, but you might want to trim your position a bit but keep a core position. Pretty fairly valued based on what they have.

Got fed up with their inability to raise the dividend. Nothing else wrong with the company. Trades at a discount to its net asset value. Smart guys.