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RBC U.S. Mid-Cap Growth Equity Fund Series F (RBF617 $65.93)
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NuScale Power Corporation Class A (SMR $21.35)
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AtkinsRéalis Group Inc. (ATRL $87.92)
Q: Ok, let's try this again.
For the past 2+ years I've been waiting for the RBC US Midcap Fund to pop.
So a "gut" response to my first question: given the recent sell off in the markets, do you see small/midcaps popping or continuing to languish in the shadows of the AI trade? (Although it's early, in terms of seasonality the fund is doing nothing).
Second question: I'm thinking of taking all or half of this position (it's a full position for me), and picking up ATRL based on the nuclear energy/SMR theme. ATRL is up significantly in the past year. Is it fully priced at this point or does it have a lot more to grow in the next five years? Considering the the nuclear/SMR theme, would it be your top pick or do you have other companies (Canada or US) that you favour more?
Thanks in advance,
Pete, Calgary
For the past 2+ years I've been waiting for the RBC US Midcap Fund to pop.
So a "gut" response to my first question: given the recent sell off in the markets, do you see small/midcaps popping or continuing to languish in the shadows of the AI trade? (Although it's early, in terms of seasonality the fund is doing nothing).
Second question: I'm thinking of taking all or half of this position (it's a full position for me), and picking up ATRL based on the nuclear energy/SMR theme. ATRL is up significantly in the past year. Is it fully priced at this point or does it have a lot more to grow in the next five years? Considering the the nuclear/SMR theme, would it be your top pick or do you have other companies (Canada or US) that you favour more?
Thanks in advance,
Pete, Calgary
5i Research Answer:
You and us both; midcaps have had a few starting runs this year, only to be knee-capped by various market/economic events. For now, we do see the current sell-off as a regular correction. Corporate earnings have been good and rates are still likely to move lower. These are the things that count. Midcaps SHOULD still have their day in the sun. But while markets are in 'risk off' mode they are not likely to do much in the short term. So, we would guess they languish for a couple of weeks, with better performance next year.
For nuclear, ATRL makes sense for Canada. SMR may have more torque, but it is smaller and much riskier and with a tiny revenue base. We would not really consider them the same.