Q: After holding for a few years, I am up on both these positions. P/E ratios for both still look very reasonable - I'm trying to decide if I should realize some of the gains, or let these winners ride. What are your views on these stocks?
5i Research Answer:
Both FFH and SU are solid names in their industries. SU is generating healthy cash flow and is in the process of returning it to shareholders, while FFH is currently experiencing a tailwind in both investment income and underwriting results. Both names do not look too expensive to us, and we are okay to hold them both, but open to trim either one of them if better opportunities present themselves. Generally we would let winners run until weightings get out of line, or there is a shift in fundamentals.