Steadyhand Podcasts

By Scott Ronalds Don Cranston, one of the founding partners of CGOV Asset Management (the manager of our Equity Fund) was in town last week enjoying some of our rain. We put Don in front of the microphone and asked him a few of the questions that are at the top of investors’ minds these days: How and why does CGOV incorporate foreign holdings into the fund? What were some of the disappointments in the portfolio last year? How is the fund currently positioned? And, as is customary with a visit from one of our managers, we closed with some rapid fire questions to get to know the real Don Cranston. Evidently, he’s not a fan of synchronized swimming. Download, subscribe via iTunes or RSS, or listen now:

By Scott Ronalds Many studies on active vs. passive management draw the conclusion that the latter strategy (more commonly known as ‘indexing’) is superior because it generates higher returns. Notwithstanding the ‘sloppiness’ of some of these comparisons, it is true that many active managers underperform their benchmark. But it doesn’t have to be this way. Most active managers aren’t given a fighting chance. They are burdened by impediments such as high fees, tight constraints and a focus on short-term performance. When these issues are addressed, it’s a different ball game. In this podcast, Tom expands on the active vs. passive debate. In doing so, he sheds some light on his Globe and Mail article from last weekend, and points to a recent piece on the topic published by Morningstar. 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 highlight some of the key messages from our Quarterly Report. We also discuss our three-year performance (Steadyhand marked its third anniversary in the quarter) and provide an overview on the advice we are currently providing to clients. Download, subscribe via iTunes or RSS, or listen now:

By Scott Ronalds We recently stopped by CGOV's office to talk with Gord O'Reilly (the lead manager) about the Equity Fund. We discussed a number of topics, including CGOV's definition of core vs. opportunistic holdings, their strategy with respect to dividends, and what surprised them most in 2011. Download, subscribe via iTunes or RSS, or watch now:

By Scott Ronalds Edinburgh Partners’ Craig Armour was in Toronto recently where Tom caught up with him to talk about the Global Fund. Topics of discussion include Europe, the U.S., the emerging markets and Japan. While the cinematography and sound are admittedly poor, the content is rich. Download, subscribe via iTunes or RSS, or watch now:

By Scott Ronalds It was a skittish quarter for stocks. The Canadian market had a rough spring, as commodity-related stocks gave back some of their gains from earlier in the year. The U.S. and Japanese markets were largely unchanged, while Europe was mixed. Bonds, on the other hand, had a strong quarter, as investors embraced safety and yields declined further. Our funds held up relatively well, given our managers' focus on high-quality companies and lack of exposure to the mining sector. In this podcast, we review the quarter in further detail and highlight some of the key takeaways from our Quarterly Report. Download, subscribe via iTunes or RSS, or listen now:

By Scott Ronalds Small cap stocks were hit particularly hard during the credit crisis of 2008/09.  In this update, Tom talks with Wil Wutherich (the manager of the fund) about the current financial shape of the businesses in the portfolio and how they weathered the storm. Wil also shares a few anecdotes on some of the fund's holdings to bring his investment philosophy to life, and discusses why he's optimistic (and comfortable) about select oil stocks in Colombia. Download, subscribe via iTunes or RSS, or watch now:

In this podcast, Tom and Scott review the second quarter of 2009. The equity markets rebounded sharply in the quarter, with many stocks posting strong gains.  The corporate bond market also enjoyed a long-awaited recovery, as yields declined and the credit environment improved.  Our funds bounced back to varying degrees, with the Global and Income funds posting notable advances and the Small-Cap fund turning in a more modest gain.  Listen now (the file many take a minute or two to download), or subscribe to our podcasts via iTunes or RSS.

By Tom Bradley Steadyhand Increases its Fund Lineup by 20%! Yes, we’re introducing a new addition to our lineup - the Founders Fund. The fund is a balanced mix of our income and equity funds (it is a fund of funds) that best reflects my views on market fundamentals, valuation and ultimately asset mix. The fund’s target asset mix is 60% equities and 40% fixed income. Our clients, and advocates of the firm, have been asking for a vehicle that captures all of what we do – the ‘undexing’ approach to fund management and professional oversight on asset allocation and rebalancing. We’ve been slow to react, rightly or wrongly, because the words balanced fund have always made me cringe. Balanced funds carry with them perceptions of mass market, over-diversification and steep fees (the balanced category of mutual funds is one of the most overpriced). But the fact is, a balanced fund that has a clear investment approach, an experienced manager, charges a low fee and is not pinned down to a rigid mandate makes good sense. As we grow, there are an increasing number of Steadyhand clients who fit the profile of the Founders Fund. One of the key features of the fund is that I will be making tactical shifts based on my long-standing approach to asset allocation, which I call ‘Approximately Right’. A majority of the time, I’ll run the Founders Fund at or close to its Strategic Asset Mix, or SAM, which is an educated guess as to what will be the best asset mix for the fund holders over the long term. Unless there are extremes in the market, I’ll stick close to it and let our fund managers do their thing. When inordinate opportunities or risks arise, however, I will act. Conceivably, the fixed income portion could be as low as 25% and as high as 60%, while the equity portion may range from 40% to 75%. The video below provides further info on how the fund is currently positioned and who it may (and may not) be appropriate for. You can also visit the Founders Fund page on our website for further details on the fund. Download, subscribe via iTunes or RSS, or watch now:

By Scott Ronalds In this update, Tom discusses the Equity Fund with Ted Ecclestone, a partner at CGOV (the manager of the fund). The portfolio has an emphasis on high-quality stocks, which have underperformed the broader market over the past several quarters. Ted reviews where CGOV stands today on this positioning. He also discusses some of the recent changes in the fund and addresses a few stock specific glitches (Manulife and Shoppers Drug Mart) and a key win (Potash Corp). Download, subscribe via iTunes or RSS, or watch now: