Steadyhand Podcasts

In this podcast, we discuss Warren Buffett's recently published annual letter to the shareholders of Berkshire Hathaway. We posted a series of blogs last week on Buffett's recap of Berkshire's operations in 2008, and Tom's Globe and Mail column on the weekend highlighted some of the valuable perspectives and insights that make the letter unique. In this, our last posting on the topic (we promise), Tom explains what draws him to Buffett and why he commends his calmness, candidness and common sense approach toward investing. He also expands on Buffett's view that the investment world has gone from underpricing risk to overpricing it, among other observations. Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

2008 was an ugly year in the capital markets.  In particular, heavy losses were experienced in the fourth quarter, as widespread de-leveraging and indiscriminate selling took place.  Yet, every major market decline presents opportunities and investors should ensure their portfolios are well positioned for the 'other side of the valley'. In this podcast, we review the fourth quarter and provide our thoughts on the markets going forward. Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

In this podcast, Tom chats with Wil Wutherich, the manager of the Small-Cap Fund, about the fund's performance in 2008, the current opportunities in the market, and some of the fund's larger holdings. Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS. 

In this podcast, I expand on my latest Globe and Mail column, where I identify three reasons why investors should be looking beyond the doom and gloom: (1) stock and corporate bond valuations are very attractive, (2) investor sentiment is close to maximum bearishness, and (3) there’s a mound of cash building up on the sidelines.  Investors need to put some perspective on the dire headlines.  At some point, stocks and corporate bonds stop going down on negative news.  They begin to look forward to better times ahead.  It’s time to start preparing for the other side of the valley. Listen now (the file may take a minute or two to download).

In this podcast, we review the second quarter of 2008 and touch on some highlights from our recently published Quarterly Report (available on the Forms & Documents page). Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

Edinburgh Partners' Christine Montgomery was in town last week to present on the Global Equity Fund.  Tom also had a chance to sit down with her to discuss the fund's performance and some of the investment strategies that our Scottish partners are pursuing. Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

The third quarter of 2008 was an extraordinarily volatile period in the equity markets.  In this podcast, we review the quarter and touch on some highlights from our Quarterly Report, which we will be publishing next week.  Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

By Scott Ronalds We met with Edinburgh Partners Limited’s Craig Armour recently for a thorough review of our Global Equity Fund. Craig is an investment partner at EPL and manages the fund. EPL’s investment strategy has been out-of-favour with global markets and as such, performance was a key topic of discussion. Specifically, we reviewed the factors that have led to the poor relative returns (versus the overall market) and whether there have been any changes to the firm’s basic philosophy or decision-making process. It was encouraging to hear that EPL’s philosophy and process hasn’t wavered. The team remains focused on investing in companies they believe are undervalued based on their 5-year earnings potential. As for personnel, the key decision-makers remain in place and have lots of gas left in the tank (the core group of analysts are in their mid 40’s to early 50’s). In the current market environment, EPL is focused on businesses with more cyclical earnings because they are being overlooked by most investors and are trading at attractive valuations. Examples of the types of companies in which EPL is finding value include industrial goods & services (Mitsubishi, ABB, Maersk, Safran), technology (Samsung, SanDisk, Microsoft, Google) and automotive (Bridgestone, Toyota, Dongfeng Motor, Johnson Controls). Conversely, EPL has had only modest investments in defensive stocks, particularly in the last two years. This has hurt the fund’s performance as these stocks have been driving the market’s returns. EPL believes that these more predictable companies (in industries such as health care, food & beverage, and other consumer sectors) are trading at expensive valuations and will generate sub-par returns in the long run. Craig and the team in Edinburgh believe the divergence in valuation between predictable and cyclical stocks is at an extreme based on historic measures (predictability is expensive and cyclical is cheap) and a reversion to the mean is inevitable. They feel risk is being misperceived and the so-called defensive stocks are vulnerable to a re-valuation. Cyclical stocks, on the other hand, will benefit from a more normal investing environment, and will really kick in when the global economy picks up. While we place little weight on short-term returns, it’s heartening to see the portfolio perform better in recent months, with many of the above-noted cyclical stocks being key contributors. Notably, investments in Japan are bearing fruit as share prices in the region are recovering sharply. To bring EPL’s thinking to life, we spent a fair amount of time in our meeting talking stocks. In the video below, Tom and Craig revisit some of the questions from our review, and discuss a few notable holdings. Download, subscribe via iTunes or RSS, or watch now: Management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns.

By Scott Ronalds Christine Montgomery from Edinburgh Partners, the manager of our Global Equity Fund, has been traveling in North America this week meeting with companies (research) and clients (hand-holding). We dragged her out of the San Francisco fog and welcomed her to our sunny (partly) headquarters yesterday, where we reviewed the portfolio and talked shop. In the attached podcast, Tom and Christine discuss a number of issues, including: The recovery in the global equity markets The on-going shift in the portfolio from defense to offense – health care, telecom and cash positions have been reduced, while exposure to cyclically exposed growth businesses and emerging market stocks has been increased The fund’s exposure to Asia and the types of companies that represent compelling investments in the region The attributes that Edinburgh Partners looks for in technology stocks, which have seen their weight in the portfolio double over the past year, from 13% to 26% An update on the fund’s holdings in the financial sector Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

By Scott Ronalds In this podcast, Tom and I review the third quarter of 2009. It was another strong period for equities. U.S. stocks posted their best quarter in a decade, while the TSX and many overseas markets turned in double-digit returns. A rising loonie negatively impacted foreign returns (for Canadian investors), but overall, it was a bright summer for equity investors.  Fixed income investors also had much to cheer about, as improving liquidity conditions and sentiment led to further declines in corporate bond yields. Listen now (the file may take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.