BCV Bulletin - Recent Trading Activity - May 26, 2026
PARTIAL SELL: Bank of America (NYSE: BAC)
We reduced our position in Bank of America (NYSE: BAC) and reallocated the proceeds toward what we view as a more favourable risk/reward opportunity. Within our portfolio BAC functions largely as a broad proxy for the U.S. consumer with little differentiation from our other financial holdings. The shares now trade at a premium valuation following strong results in its wealth management and capital markets businesses, and with that strength now well recognized by the market we believe much of the potential upside is already reflected in the price. We view this capital as better deployed in another financial-sector holding offering a stronger risk/reward profile and a higher dividend yield.
PARTIAL SELL: Accenture (NYSE: ACN)
We also reduced our position in Accenture (NYSE: ACN), a global leader in IT consulting and professional services. Our decision reflects growing uncertainty around how generative and agentic AI will reshape the business, creating new advisory demand but also threatening the labour-based economics that have long driven it. The central risk is disintermediation: as these tools mature, clients may access and implement AI capabilities directly and bypass the integrator layer Accenture has traditionally provided. Because so much of the company's value rests on distant cash flows, that uncertainty lowers our conviction in their durability and makes this as much a risk decision as a fundamental one.
BUY: Ares Management (NYSE: ARES)
With the proceeds from Bank of America and Accenture, we initiated a position in Ares Management (NYSE: ARES), a leading global alternative asset manager. Ares preserves exposure to both areas we trimmed: it is a financial, and its shares have been pressured by a software-related lending narrative within private credit that we view as overdone given its small and well-contained software exposure and an otherwise sound credit book. We believe this leaves Ares with better risk/reward , alongside durable recurring fee earnings and a large pool of capital to deploy into today's dislocated lending market. Mindful of the credit cycle and its private-credit concentration, we view the current weakness as an attractive entry into a best-in-class operator trading below our estimate of intrinsic value.
This BCV Bulletin is intended for residents of the provinces and territories in which we are registered, is not meant to be a solicitation to any persons not resident in those jurisdictions and does not constitute an offer to buy or sell our products or services. Any opinions expressed are just that and are subject to change. Information is provided on a best-effort basis and its accuracy cannot be guaranteed. Information may also be provided from third party sources which are believed to be reliable, but we do not guarantee its accuracy or completeness. Certain statements may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This BCV Bulletin has been prepared for general informational purposes only, is not intended as investment and/or financial advice on any subject matter and the securities mentioned should not be construed as a recommendation for any specific securities. ©BCV Asset Management Inc. 2026.
