'Valeant Sale One of Many That Need to Get Done'

Jason Mann, Chief Investment Officer at Edge Hill Partners, discusses his shorting strategy and the financial challenges faced by Valiant. He evaluates Valiant's performance using metrics like fundamental value, price momentum, and volatility. Mann explains the conditions under which he would cover a short position, emphasizing the importance of price momentum and cash flow stabilization. He also discusses Valiant's debt management and asset sales strategy, highlighting the challenges of maintaining a sustainable debt level. Finally, Mann addresses market overvaluation and identifies investment opportunities in cyclical sectors.

What are the three key metrics used by Jason Mann to evaluate stocks for shorting?

• Fundamental Value, Price Momentum, and Volatility

• Revenue, Profit Margin, and Market Share

• Growth Rate, Return on Equity, and P/E Ratio

• Debt Ratio, Earnings Per Share, and Dividend Yield

Under what condition would Edge Hill Partners consider covering a short position?

• If the stock price remains stable for 6 months

• If the stock price drops by 20% in a month

• If the stock price shows positive momentum over 12 months

• If the stock price enters the top 10% of performers

How does the cyclical nature of the Canadian market affect Edge Hill Partners' evaluation period for price momentum?

• It requires a focus on annual reports only

• It has no effect on the evaluation period

• It shortens the evaluation period to 3-6 months

• It extends the evaluation period to 18 months

What is the primary strategy of Edge Hill Partners when dealing with overvalued and undervalued stocks?

• Avoid both overvalued and undervalued stocks

• Invest only in undervalued stocks

• Balance overvalued stocks with undervalued ones

• Invest only in overvalued stocks

Which sectors are identified as having potential for gains due to good cash flows and reasonable valuations?

• Real Estate and Telecommunications

• Energy and Utilities

• Industrials and Consumer Discretionary

• Technology and Healthcare