Cutting Through the Noise
May 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...
Read MoreMarch 31, 2011
There was an article in yesterday’s Globe on closed-end bullion funds that are trading at a premium to their underlying value. Unlike mutual funds, closed-end funds have a fixed number of units available (in the short term at least) and trade on the market like...
Read MoreMarch 30, 2011
Wil Wutherich, the manager of our Small-Cap Equity Fund, is in town this week on a research trip. We booked an afternoon of his time to review the fund and get some further insights on some of the stocks in the portfolio. Topics of discussion include: performance, valuations, and the resource sector, among others. Listen now...
Read MoreMarch 23, 2011
If you drive by 3rd & Burrard in Vancouver, you’ll sometimes hear a loud reverberating sound coming from a stand-alone building nestled between the car dealerships and art galleries. Don’t be alarmed. It’s just us screaming our investment philosophy and industry observations from the rooftop. Some of our neighbours (and competitors) find it annoying, while other observers find it refreshing...
Read MoreMarch 21, 2011
When I was a stock analyst at Richardson Greenshields in the 1980’s, I was forced to spend more time analyzing the Federal Budget than I ever wanted to. Everyone in the research team had to determine how the Finance Minister’s words would affect the...
Read MoreMarch 18, 2011
Over the last two years, I’ve spent most of my time encouraging people to get invested. As a result of the 2008-09 market meltdown, there were, and still are, too many investors who have strayed significantly from their long-term asset mix and are out of the...
Read MoreMarch 17, 2011
While it’s still premature to evaluate the impact that the tragedy in Japan will have on businesses and the economy, Edinburgh Partners (the manager of our Global Equity Fund) has conducted a preliminary assessment. Before addressing specifics, EPL notes...
Read MoreMarch 16, 2011
As the Japanese disaster unfolds, we are dealing with many cross-currents in the capital markets. The pictures, dramatic news stories and unknown nuclear dangers are all part of a mix that has the potential to create an overreaction by investors. In our case...
Read MoreMarch 11, 2011
As we watch the horrific destruction in Japan, we are well aware that our Global Equity Fund owns a number of businesses in that country. Roughly 20% of the fund is invested in Japanese stocks. At this time, we don’t have any information or insight to pass...
Read MoreMarch 10, 2011
Subsequent to posting my last blog (Hocus Pocus but no Magic), I came across some weighty comments that relate to the topic of fancy, highly-marketed investment products. In his latest piece, James Montier of U.S.-based GMO says, “If something seems too...
Read MoreMarch 7, 2011
I just read an article by Jade Hemeon in the February issue of Investment Executive, a trade magazine aimed at financial advisors. The piece was on a new product called BMO Lifetime Cash Flow. My experience with the article went something like this...
Read MoreMarch 4, 2011
In addition to my day job, I sit on investment committees for two institutional funds, so every quarter there is a pile of manager reports to read and many different perspectives to assimilate. Unfortunately, if I try to do too much in a short time, as I did this week...
Read MoreMarch 1, 2011
Tom discussed Longleaf Partners’ annual letter to shareholders in a blog posting yesterday. Today, the grand-daddy of all shareholder letters is in the news – Warren Buffett’s. I’m beating Tom to the punch for a synopsis, as his posts in previous years...
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