1832 Asset Management L P Rotates From Canadian Financials Into Global Growth

The biggest statement this quarter is the aggressive use of winners and ETFs rather than swinging at new stock ideas. The outsized add to IVV, up +832.9% to 0.67%, is a blunt instrument: 1832 clearly wants more US large-cap exposure, fast, without having to pick every marginal name.

On single names, conviction is rising sharply in AI infrastructure and platforms. Nvidia is up +32.8% in shares, now a 2.19% position with almost a 96.6% gain vs cost, while Microsoft is up +12.0% and still being added to despite already being in the money.

The more interesting moves are in health care and health-adjacent industrials, where they are leaning into drawdowns rather than chasing momentum. Thermo Fisher is up +58.3% in shares with a negative gain vs average buy (-13.7%), and Boston Scientific is up +229.4% despite being down -37.4% versus cost — that looks like a conscious averaging down into core secular growth franchises.

They’re also doubling down on idiosyncratic Canadian tech and services under pressure. Shopify is up +30.4% even though it’s underwater by -22.4%, OpenText is up +15.5% while down -33.6% vs cost, and Thomson Reuters is up +37.7% despite a -38.2% mark-to-cost. These adds read as a long-duration thesis on Canadian software/data rather than a short-term trade.

Finally, XOM is up +162.3% in shares and Kinross +78.1%, while Agnico Eagle and Franco-Nevada are modestly increased. That combination — liquid integrated oil plus gold royalty and miners — looks like a deliberate macro hedge around the newly enlarged growth book.

The sell tape is just as revealing: they’re not bailing on losers; they’re mostly harvesting gains from mature winners and recycling capital. Alphabet’s class A line (GOOGL) is the single largest trim, with shares cut -30.7% and an estimated dollar reduction of about $490.7M, even though the position is up roughly 105.6% versus cost.

In Canada, the pressure is squarely on legacy yield plays and cyclicals. Toronto-Dominion is trimmed -6.0%, Bank of Montreal -7.8%, Bank of Nova Scotia -2.7%, Manulife -1.2%, and Sun Life -11.2%, all at healthy gains, suggesting profit‑taking and a subtle downgrade to domestic financial beta.

Energy and midstream see similar treatment. Canadian Natural Resources is cut -11.3%, Enbridge -4.9%, TC Energy -10.1%, Suncor -9.0%, and Pembina is nudged down, shrinking a once-heavier Canada energy sleeve to fund XOM and non-resource growth.

The exits in legacy tech hardware and "old" infrastructure names are more decisive. Cisco is slashed -29.9% after strong gains, Eaton is down -16.0%, and CAE is reduced by -26.2% despite already being below cost — that last cut reads as a thesis downgrade, not mere profit-taking.

On the consumer side they’re trimming around the edges: TJX is down -9.1%, Sherwin-Williams -5.0%, and they’re shaving Mastercard by -3.0% even as Visa is slightly added. Net-net, the sells look like disciplined funding sources and a quiet cull of lower-conviction legacy positions.

Sector-wise, the story is a measured but clear rotation toward global growth and diversification. Technology climbs from an estimated 21.97% to 22.79%, while finance falls from 23.50% to 21.67% and energy slips from 11.09% to 10.54%.

Within tech, the mix is tilting away from "old" comms equipment and search toward AI platforms and Canadian software. They are adding Nvidia, Microsoft, Apple, Shopify, OpenText, and Alphabet class C (GOOG), while cutting Cisco, TSM, and GOOGL — effectively swapping some mature or fully-priced exposures for higher‑conviction AI and software bets.

Health care is one of the biggest proportional winners, rising from 1.66% to 2.11% on the back of the Thermo Fisher and Boston Scientific adds. Basic materials moves from 3.53% to 3.87% as they bulk up gold exposure via Kinross, Agnico Eagle, and Franco-Nevada.

Consumer discretionary edges up from 11.25% to 11.99% as they lean into resilient global brands. Amazon, Costco, Netflix, Home Depot, McDonald’s, and Thomson Reuters all see share additions, while TJX and Sherwin-Williams get trimmed.

Finally, the "Unclassified" bucket jumps from 0.12% to 1.07% purely because of IVV, effectively raising overall US equity beta without committing more to any single sector. Utilities, real estate, and industrials barely move in aggregate, even though there’s a lot of stock‑level turnover inside those sleeves.

This quarter’s -3.4% performance hit is not dissuading 1832 from leaning into its long-term growth tilt; if anything, they are using volatility to reshape the book. The pattern — adding to names like Thermo Fisher, Boston Scientific, Shopify, OpenText, and Thomson Reuters while they trade below cost — suggests a willingness to stomach near-term pain for secular upside.

At the same time, they are visibly less willing to let legacy Canadian exposures dominate risk. The steady bleed out of banks, midstream, and older industrials like CAE, combined with a meaningful IVV build, reduces home‑country bias and anchors the book more firmly in global megacap quality.

The AI complex looks strategically core: Nvidia, Microsoft, Alphabet (via GOOG), Amazon, Apple, and TSM still form a powerful cluster, even with trims in select lines. Layer in the renewed emphasis on health-tech and the bolstered gold and Exxon positions, and you get a portfolio that wants structural growth but is braced for macro shocks.

Going forward, expect incremental capital to continue flowing toward scalable, asset‑light franchises in tech, health care, and consumer platforms, funded by further trims in high‑beta cyclicals and legacy Canadian yield. The big wild card is whether they keep growing the ETF sleeve (IVV) as the primary tool for upping US exposure, or revert to more concentrated single‑name bets once the current rotation is complete.