Key Morningstar Metrics for Beutel Goodman American Equity Fund
- : SilverMorningstar Medalist Rating
- : Above AverageProcess Pillar
- : Above AveragePeople Pillar
- : Above AverageParent Pillar
Beutel Goodman American Equity and its US mutual fund and UCITS counterparts, Brown Advisory Beutel Goodman Large-Cap Value and Brown Advisory Beutel Goodman US Value, benefit from a seasoned team and disciplined approach that merit Above Average People and Process ratings.
The investment team is tenured and stable. Comanagers Rui Cardoso and Glenn Fortin each bring more than 20 years of investment experience and have led the strategy for over a decade. Cardoso leads Beutel Goodman’s US and international equity teams, while Fortin has contributed to this strategy since 1997. The duo works with experienced generalist analysts to generate and debate ideas. The team makes decisions collectively and requires full agreement before adding a stock to the portfolio, to mitigate bias and avoid costly mistakes.
The team follows a consistent investment approach. It focuses on durable businesses trading below estimates of intrinsic value and applies strict rules around buying, selling, and downside review. The managers seek significantly undervalued companies, requiring at least 50% upside over three years before initiating a position. The result is a concentrated portfolio of 25–35 stocks with relatively low turnover. This rules-based approach forces partial exits when stocks reach their price targets. That discipline has supported the strategy’s long-term results, but it’s a headwind when momentum stocks are in favor.
Over the long term, the strategy has been dependable, but performance was poor over the past two years as high-momentum stocks led the way. Through March 2026, the Canadian F share class gained 3.8% annualized, which trailed the Russell 1000 Value Index by 11.7 percentage points and the average Canada US equity Morningstar Category peer by 8.7 percentage points. Results suffered owing to weak stock selection across several holdings, and the managers avoided some of the Russell 1000 Value Index’s pricier winners, including Alphabet and Micron. Exposure to mid-cap stocks, which lagged large caps, was a further drag.
This focused value strategy tends to lag in periods dominated by fast-moving stocks with steep valuations, but a tenured team and consistent process underpin the strategy’s reliable record over market cycles.
Beutel Goodman American Equity Fund: Performance Highlights
A difficult couple of years haven’t undermined the strategy’s merits.
The strategy has been dependable over the long term, but it has lagged recently. From manager Rui Cardoso’s July 2013 start through March 2026, the F share class outpaced the Russell 1000 Value Index in 82% of rolling five-year periods and its average Canada US Equity category peer in 79% of those periods, but recent underperformance has left results over his tenure similar to both benchmarks.
Performance fell short over the two years through March 2026; the strategy gained 3.8% annualized in Canadian dollars, trailing the Russell 1000 Value Index’s 15.5% return and the peer average of 12.5%. Stock selection weighed on results, and the concentrated portfolio magnified the impact. Several holdings fell on tariff concerns, while others disappointed as acquisition plans failed to deliver. The team also avoided the value indexes’ recent winners, including richly valued artificial intelligence-driven stocks such as Alphabet and Micron but stuck to their valuation discipline. A tilt to mid-cap stocks, which lagged large caps, added to the shortfall.
The strategy’s quality-focused value approach remains consistent. Relative to category peers, it is likely to outperform when value stocks surpass growth stocks, or when momentum stocks falter. These conditions haven’t prevailed lately, but it should fare better if the backdrop shifts. For example, in 2022, when broad indexes posted losses, the strategy gained 8.6%, outpacing 99% of its category peers.
