The Rational Reminder Podcast
A weekly reality check on sensible investing and financial decision-making, from three Canadians. Hosted by Benjamin Felix, Cameron Passmore, and Dan Bortolotti, Portfolio Managers at PWL Capital.
Total Ideas
2
With Returns
1
Equal-Weighted Return
+0.16%
All Ideas (2)
2 Total
OneDigital Recapitalization Validates Business Strength
"So on September 19th, OneDigital announced a majority investment from funds managed by Stonepoint Capital and CPP Investments. ... This transaction is a testament to the quality of OneDigital's business."
The hosts discuss OneDigitals recent recapitalization involving Stonepoint Capital and CPP Investments that valued the firm at over $7 billion. They highlight that the event provides a market-tested valuation, demonstrates the companys strong growth potential, and reinforces confidence in its business model. The commentary stresses that the recap is good news for PWL shareholders and underlines the strategic nature of such private equity transactions.
Caution on High Yield Covered Call ETF JEPI
"JEPI, the JP Morgan Equity Premium Income ETF, showcases a high distribution yield but has underperformed by about 5.92 percentage points since inception compared to its benchmark, indicating the high yield is a misleading metric."
The panel provides critical commentary on JEPI, highlighting how its marketed high distribution yield masks an underlying issue: the capped upside inherent in covered call strategies leads to lower total returns. The commentary suggests that investors should be cautious of such products as the high yield does not translate into superior performance.