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Wutherich & Co. February 2018 Newsletter

Monthly Message

The Wutherich & Co. Composite was down 2.7% in February. This compares with the S&P/TSX down 3.0% and the BMO Small Cap Index down 3.9%.
The Wutherich & Co. Portfolio was down along with the markets in February. We don’t make too much of this as we always focus on the fundamentals of the businesses in the portfolio. Many of our companies report quarterly or year-end earnings during February or March and their stock prices often react accordingly. What we have noticed in the last few years is that negative reports cause a much stronger reaction than positive ones do. We always try to look through these short-term reactions and make a thorough re-assessment of our thesis for owning a stock. Over the last few quarters, we generally like what we see, though there are always a few troubled children. The portfolio, in aggregate, is not the cheapest that we have seen over our history of managing portfolios, by a long shot, but we think it should provide good long-term returns. On top of this, we could see a few more “firecrackers” go off (Pure Technologies and Avigilon are recent examples) where some of our undervalued names get taken over at much higher prices.

We would like to say a special Thank You to those clients who contributed to their RRSPs this season. While January and February are a great time of year to do this, contributions can be made all year long.

To view the complete Monthly Message and Factsheet click here