Cutting Through the Noise
June 24, 2011
We’ve had low interest rates for years, and really low rates for almost three. We’re used to them, and may even be getting complacent. I had more questions and concerns from clients about rising interest rates a year or two ago than I do now. Well, I’m here to...
Read MoreJune 22, 2011
Fund (as in mutual) has become a dirty word. I was reminded of this the other day when Tom was lamenting over all the negative connotations associated with mutual funds. What was once a beautiful concept – investors pooling their money in a shared vision...
Read MoreJune 20, 2011
In his June 6th letter, Tim Price of PFP Wealth Management in the UK provides a thoughtful take on our debt burden. “From a narrowly financial perspective, government debt is an asset class, albeit an asset class now offering vast potential for capital...
Read MoreJune 16, 2011
June 14, 2011
When I was an analyst on the brokerage side of the business (1980’s ... I was a teenager), there were a few iconic people that we all looked up to. Hugh Brown, who was with Burns Fry (now part of BMO), was one such person. He was the guy on...
Read MoreJune 13, 2011
Our Global Equity Fund has had a poor stretch of performance since early 2010. The fund’s manager, Edinburgh Partners Limited (EPL), is the first to admit this. While they don’t manage the fund with a close eye on what the index is doing, any sustained period of under-performance...
Read MoreJune 10, 2011
We heard this week that Vanguard, the giant U.S. asset manager, is coming to Canada. As a permanent student of the business, I’ve been fascinated by Vanguard for many years. It’s an example of a company that grew through word of mouth. It went viral...
Read MoreJune 8, 2011
A 7-game playoff series is a unique animal. It’s a roller coaster ride with potential mood swings after each game. It reminds me a lot of investing actually. As I sit here with my Canucks jersey on, I feel like the boring realist. I’ve celebrated each victory and got pissed off after each loss, but in between, I've refused to get too caught up in the hyperbole. I've found myself in a few conversations that go...
Read MoreMay 31, 2011
I learned last week that the HealthShares Dermatology and Wound Care ETF has been shut down. A shame, really. Seemed like a solid backbone for a portfolio. Investors who like their ETFs sharp and narrow need not fret, however, as the Direxion Daily Daily Agribusiness Bear 3X Shares ETF is still around (for the time...
Read MoreMay 27, 2011
“What I find of particular interest is the speed at which changes in communication technology are happening. It’s causing a great intergenerational knowledge gap, which is rather worrisome because many decision makers are still part of my old-fart...
Read MoreMay 19, 2011
In Connor, Clark & Lunn’s latest outlook, they assess the recent pullback in commodity prices. After a sharp run-up that began in early 2009, many commodities have been in retreat recently. Silver has grabbed the headlines, falling over 30% since late April, but...
Read MoreMay 13, 2011
Personal disclosure: I’m a dyed-in-the-wool active manager, but admit to having used exchange-traded funds in my portfolio. I’ve tread on the dark side for tax planning purposes and, occasionally, to hedge certain long-term positions. I also must...
Read MoreMay 10, 2011
“If I’m curt, then I apologize. But as I understand it, we have a situation here and time is of the essence.” - Newman. I’m a Seinfeld junkie. One of my favorite episodes was “The Muffin Tops”, in which Elaine’s former boss (Mr. Lippman) decides to open...
Read MoreMay 4, 2011
There was news today that two private equity firms, Berkshire Partners LLC and OMERS Private Equity, are buying Husky International from Onex, another private equity company. This secondary buyout (defined as one private equity firm buying a company...
Read MoreApril 29, 2011
I’ve enjoyed watching the federal election campaign, but that’s where it ends. It will have no impact on markets (for more than a day), and my interest in being a public official has never been lower (it’s a brutal job). The office I’m interested in running for, however, is...
Read MoreApril 27, 2011
In this space, we’ve talked often about the conundrum cash-rich investors face. If they’ve been out of the market, or are sitting on a high proportion of cash, what do they do? This week there were some comments from Earl (the Pearl) Bederman at Investor...
Read MoreApril 25, 2011
How’s this for two totally different customer experiences. Recently I went into Sigge’s, a local cross-country ski store, to buy some equipment. I’ve been a ‘classic’ skier for years, but am increasingly feeling the pressure to keep up with my ‘skate skiing...
Read MoreApril 19, 2011
On the plane yesterday I was scanning the list of Canadian exchange-traded funds (ETFs). There were 145 funds on the list from four providers (BMO, Claymore, BlackRock and Horizons BetaPro). I know the numbers are higher now because I...
Read MoreApril 18, 2011
The following is a recap of Edinburgh Partners Limited’s (EPL) investment in Carlsberg. It’s an example of a turnaround opportunity, which is a common theme in our Global Equity Fund. To re-state the obvious, the recession and credit crisis of 2008/09...
Read MoreApril 15, 2011
Value managers make a habit of scanning the 'new lows' list on the stock page. They’re hoping to find good companies that have stumbled and are oversold. Buyers of the funds run by those same managers, however, rarely do that. They most often go for the...
Read MoreApril 12, 2011
Stock markets pushed forward in the first quarter despite some strong headwinds, including revolutions in North Africa, a powerful earthquake and tsunami in Japan, and lingering sovereign debt issues in Europe. It goes to prove that the linkage between headlines and market returns is anything but precise. In this podcast, we...
Read MoreApril 8, 2011
Tom was on BNN earlier today discussing how Steadyhand’s funds are positioned to tap into the global recovery and growth in the emerging markets. Unlike some managers, our approach isn’t focused on loading up on mining stocks and direct...
Read MoreApril 7, 2011
Irony n. incongruity between what might be expected and what actually occurs. My brother-in-law and I have an on-going banter going over the usage, or should I say incorrect usage, of the word irony (I lose regularly). Waking up this morning to an...
Read MoreApril 4, 2011
As managing director of a firm that manages US$1.2 trillion, Bill Gross’ words carry a lot of weight. Indeed, we blog on his writings often. In his April letter, he closes with a tight and powerful summary: “I am confident that this country [U.S.] will default on...
Read MoreApril 1, 2011
In Toronto last week, I was waiting for a friend at my Starbucks office. As I browsed the Sports section, I couldn’t help but overhear a nearby conversation between two investment types. The checked shirt was leading the discussion. “My overweight in...
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