Call him old school, but money manager Tim McElvaine prefers to pick stocks based on price, staying power and the people behind the companies rather than computer models.

“I’m not a fan of Excel spreadsheet-style investing. I think those models are inherently fragile,” says the founder, president and portfolio manager at McElvaine Investment Management Ltd. in Victoria, who oversees about $50-million in assets.

“I’d much rather invest with people who have skin in the game. That’s a big deal in my mind. I’d rather outsource my worries to them. Let them try and figure out how they will navigate Trump.”

McElvaine Value Fund, which he founded in 1996 after working with the late value investor Peter Cundill, includes a mix of 12 to 20 small- and large-cap companies. Its current holdings include 63 per cent Canadian companies, 10 per cent U.S. and 7 per cent overseas holdings. The other 20 per cent is currently in cash, which is on the higher end of the fund’s regular 10 to 20 per cent range.

Mr. McElvaine says his higher cash position isn’t a macroeconomic call or a flee to safety but rather a wait-and-see approach. He’s looking for buying opportunities that align with his three main criteria: strong management teams, cheap valuations and companies that can withstand market uncertainty.

The fund has returned 15.5 per cent over the past year. Its three-year annualized return is 7.1 per cent and its five-year annualized return is 16.4 per cent. The performance is based on total returns, net of fees, as of Feb. 28.

Name three stocks you own today and why .

Canfor Corp. CFP-T , the Vancouver-based lumber company, is a stock we first bought in December and we added more in February. Canfor makes up about 5 per cent of our fund today.

There’s been a lot of news around softwood duties and tariffs, but Canfor is a much different company today than it was a few years ago. It significantly reduced its business in British Columbia – mostly due to B.C.’s higher-cost operating environment – and significantly increased its business in the U.S.

About 40 per cent of its capacity today is in the U.S., 30 per cent in Sweden, and 15 per cent in each of Alberta and B.C. While tariffs and duty increases will have an impact, we think this will be less than generally perceived due to the changes in Canfor’s business.

Canfor has a great balance sheet and low-cost mills in Sweden and the U.S., and has rationalized its Canadian operation. Its management team includes practical business people whom we trust.

Knight Therapeutics Inc. GUD-T is a stock we’ve owned for a couple of years but we recently tripled our position in it. It makes up about 7 per cent of the fund today.

On the surface, you might say Knight is a specialty pharmaceutical company, but it’s more of a licensor and marketer of drugs in Canada and Latin America.

I have a lot of confidence in its management team, particularly chairman Jonathan Goodman and chief executive officer Samira Sakhia. They had previously sold Paladin Labs Inc. for about $3-billion in 2014 and then founded Knight. It’s their second company.

I’ve always had a lot of luck with people who were successful in an industry the first time and decided to do it again. Interestingly, Knight bought Paladin back earlier this month for about $120-million. It’s not the same Paladin as the one they sold a decade ago, but it increases their Canadian business significantly.

Knight has a great balance sheet, aligned and thoughtful management, minimal tariff issues, a long growth runway and, most importantly, what we thought was an attractive price, which is why we added more.

Fairfax India Holdings Corp . FIH-U-T is a stock we first bought two years ago. We increased our position to about 5 per cent of our portfolio in recent months.

Fairfax India’s largest holding is a 74-per-cent interest in the Bangalore International Airport, which we think is a good investment. We also like its management team. Ben Watsa [son of former chair and director Prem Watsa] became chair of Fairfax India last summer. Fairfax India’s largest shareholder is Fairfax Financial Holdings Ltd. FFH-T .

I have invested in several Fairfax-related companies over the years and I trust its governance. I like Fairfax India for the same reason as Canfor and Knight: it has a strong balance sheet, good governance, strong growth prospects, and I think it’s worth a lot more than what it’s trading at today.

Name a stock you sold recently.

Warner Bros. Discovery Inc. WBD-Q is a stock we sold last fall at a loss. We bought the stock shortly after it went public in 2022. [It was formed from WarnerMedia’s spin-off by AT&T Inc. T-N and merger with Discovery Inc.] Unfortunately, I misjudged how difficult the media environment was.

Peter Cundill and I often talked about the difference between hoping things will improve and the facts. When I find myself relying more on hope than the facts, it’s time to sell.

This interview has been edited and condensed.