The Wutherich & Co. Composite was up 7.9% in November. This compares with the S&P/TSX up 3.6% and the BMO Small Cap Index up 2.9%.
The Wutherich & Co. Composite continues to recover from its May to August swoon and is now up 26% year-to-date, just 2 percentage points below its all-time high.
Cash has moved up a little as we have trimmed several positions. This basically happens for three reasons: 1) a stock has performed much better than expected and we start to sell it because expected future returns are significantly lower than our 15% target rate; 2) the company faces increasing fundamental challenges, making it more difficult for us to ascertain its future return potential; 3) we are sitting on a large capital loss in the position and the company’s outlook is sufficiently blurry that we aren’t willing to be patient.
There are a few other names that we may trim in the coming months for the above reasons. Luckily, there are still many cheap stocks in the portfolio which should absorb much of the cash that may build up.
Lastly, we welcome all our clients and friends to celebrate our 20th Anniversary at our Wutherich & Co. Annual Update to be held at the Mount Stephen Hotel on Thursday January 23rd, 2020. Cocktails 5:30pm. Presentation 6:00pm. RSVP at firstname.lastname@example.org or 514-924-4438.
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