Monthly Message

The Wutherich & Co. Composite was down 0.3% in April. This compares with the S&P/TSX up 1.8% and the BMO Small Cap Index up 3.8%.
The Wutherich & Co. Portfolio drifted down slightly during the month on very little news. The Canadian Indexes benefitted from a very strong move in Energy stocks, which we own comparatively little of.

With Avigilon (AVO-T) and Pure Technologies (PUR-T) now gone from the portfolio and the elimination of one or two other names, we sit on a lot of cash. Fear not! We have ideas to plow the money into and we hope to share more information about these in the coming months.

In the meantime, a few of our existing names have performed very well. CBIZ (CBZ-N) and Gran Tierra Energy (GTE-N) are two long-time denizens of the portfolio. CBZ is one of the largest providers of accounting services in the U.S. They also provide employee services such as benefits and insurance consulting. The company has grown steadily, albeit slowly, for years. That growth now appears to be accelerating along with continued growth in the US economy, especially amongst the small and mid-sized businesses that they focus on. We have owned GTE, on and off, for many years. It is a Columbia focused oil and gas producer. After a major restructuring about 3 years ago, the company is regaining traction. Production and cash flow are growing, the balance sheet is in good shape and oil prices are providing a strong tail wind.

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