VINY 2026 – Beutel Goodman’s Rui Cardoso On Two Out Of Favor Stock Ideas

At the Value Invest New York 2026 conference, Rui Cardoso, Managing Director and Head of Global Equities at Beutel Goodman, presented his firm’s approach to uncovering mispriced opportunities in one of the market’s most unloved corners, healthcare. With over 25 years of investment experience and a career spanning CI Investments, KBSH Capital Management, and now Beutel Goodman, Cardoso focuses on fundamentals-driven stock selection that prioritizes downside protection and asymmetric upside.

Beutel, Goodman & Company Ltd. is a privately owned, independent Canadian investment manager with $52.2 billion in assets under management as at December 31, 2024.

Cardoso’s presentation centered on a theme that has frustrated many value investors in recent years: the persistent underperformance of healthcare stocks despite strong  business fundamentals. While growth investors have flocked to expensive momentum names, Cardoso argued that the resulting capital flight from pharmaceuticals and medical devices has created a rare fishing ground for patient, quality-focused investors willing to look beyond near-term sentiment.

His framework is straightforward, every investment must offer at least 50% upside over a five-year horizon, paired with high-quality businesses that sport clean balance sheets, strong returns on capital, and management teams aligned with shareholders. Within that structure, Cardoso walked the audience through two specific healthcare names where he sees structural change being dramatically underpriced by the market.

The Three Buckets: How Beutel Goodman Sources Ideas

Cardoso outlined three distinct categories that generate the firm’s best investment ideas. The first bucket are firms where something has gone temporarily wrong, a cyclical downturn or one-time disruption that causes the market to overreact. The second, and his personal favorite, is out-of-favor sectors, areas where an entire industry has fallen from grace, allowing disciplined investors to pick up high-quality names at steep discounts. The third bucket involves visible turnarounds, companies where the restructuring is clearly underway but the stock price has yet to reflect the progress.