The Wutherich & Co. Composite was down 9.2% in May. This compares with the S&P/TSX being down 8.7%.
Two steps forward, two steps back. Sometimes I hate being right (please don’t tell that to my wife) as we clearly experienced the latter part of this pattern in June.
Last month, we wrote the above lament observing that we have seen large monthly gains offset large losses in the Wutherich & Co. Composite for some time. It is extraordinary to see these swings while little has changed for the companies that make up our portfolio. While there is no question that macro-economic and geo-political issues will affect our names to varying degrees, their prospects are simply not being swung about the way their stock prices are indicating. As always, we do our homework, we determine where we are comfortable buying or selling a name and add or reduce accordingly.
One of our holdings, Points.com (PTS-T) is being taken over. This should generate about 10% additional cash in the portfolio. We hope to re-deploy this in some of our favourites and maybe even add one or two names. This may not pay-off tomorrow, next week or next year but we do think it will make us money over the long-term.
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