Strategy Overview
A Quantitative Canadian Equity Strategy Designed to Outperform the TSX.
True North Alpha is a disciplined, rules-based investment strategy focused on Canadian equities. It systematically selects a concentrated portfolio of companies that are trading significantly above their long-term historical valuation averages. The strategy is built on a contrarian but data-supported thesis: that companies with sustained high valuation multiples, when backed by strong fundamentals, tend to continue outperforming.
Unlike many Canadian investment products that overweight traditional value metrics, dividend yield, or the Big 6 banks, True North Alpha offers a differentiated approach. It avoids narratives, discretionary bets, or macro commentary. Instead, it leverages a quantitative model that ranks TSX-listed companies on the basis of valuation premiums, momentum, and earnings strength.
Strategy Thesis
True North Alpha is based on the insight that markets often correctly re-rate companies upward when fundamentals improve. High multiples are not inherently a warning sign. They can reflect durable earnings power, institutional accumulation, and a shift in how the market values specific business models.
By focusing on companies with high valuation relative to their own history—not versus peers—True North Alpha captures this structural repricing dynamic. The result is a portfolio that historically delivers stronger and more consistent returns than traditional value or dividend-focused strategies.
Backtested Performance Summary
Annualized Return (Since 2000): 12.2%
TSX Benchmark: 7.2%
Sharpe Ratio: 0.69 (vs. TSX 0.33)
Information Ratio: 0.80
5-Year Annualized: 16.1% (vs. TSX 11.1%)
10-Year Annualized: 11.6% (vs. TSX 8.7%)
See full performance table for year-by-year results and benchmark comparison.
How to Implement
You can mirror this strategy in your RRSP, TFSA, or brokerage account:
- Allocate equal weights across the recommended stocks.
- Hold for 12 months.
- Rebalance annually based on the updated model list.
If you receive quarterly updates during your holding period, you may optionally adjust if deploying new capital or realigning your portfolio. The strategy is designed to be simple, structured, and low-maintenance.
What Subscribers Receive
Every quarter, subscribers receive:
- A curated list of 10–12 Canadian stocks selected using a transparent, rules-based model
- Intended for 1-year holding periods, with rebalancing annually from your own entry point
- Quarterly updates with the latest model output and commentary on significant changes
- Performance tracking with full transparency
There are no daily emails, stock tips, or macro speculation. Just a single objective: help investors outperform the TSX through disciplined implementation.
Ready to Join?
True North Alpha is for investors who want signal over noise, data over opinion, and process over guesswork.
Subscribe to receive the latest model portfolio and quarterly updates.
Disclaimers & Disclosures
True North Alpha is a model portfolio strategy provided for informational and educational purposes only. It does not constitute investment advice or an offer to buy or sell securities. Past performance is not indicative of future returns. Please consult a licensed financial advisor before making investment decisions. Investing involves risk, including the potential loss of principal.