Monthly Message
The Wutherich & Co. Composite was up 0.7% in October. This compares with the S&P/TSX down 0.9% and the BMO Small Cap Index down 2.0%.
The Wutherich & Co. Composite eked out a small gain in October and is now up 16.8% year-to-date. Valuations in our portfolio still look strikingly cheap and we continue to carry a minimal amount of cash.
For the first time in as long as we can remember, we have no US names in the portfolio. There are many that we look at but, in most cases, find it hard to justify their valuations. We still have plenty of US exposure through the Canadian names that we own, but at much cheaper prices. One trader that we talk to referred to a buyers’ strike amongst Canadian small Cap managers, regardless of how cheap the names appear. Though it can test our patience, we can wait this out. We are happily buying names that we believe in, and at great prices. Value will out eventually.
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