Monthly Message
The Wutherich & Co. Composite posted a 0.5% drop in March versus the S&P/TSX being up 4.1%.
The Wutherich & Company Composite definitely sat-out the March rally in North American markets. The companies in our portfolio finished reporting their most recent quarters during the month. For the most part, the numbers were good. A bit of weakness is showing up in a few names though nothing appears to be a significant detriment to their long-term prospects.
We have recently added Propel Holdings (PRL-T) to the portfolio. We think of this as a similar story to goeasy LTD. (GSY-T), a position that we have held for many years. Like GSY, PRL is a sub-prime lender, though focused mostly on US borrowers and is strictly on-line. We think they have the ability to grow even more quickly than GSY which bodes very well for returns over time.
A strong US economy and hopes for interest rate cuts keep markets buoyant and willing to ignore a gloomy geopolitical environment. Regardless of what happens on the macro front, we continue to think that our companies are well positioned to thrive for years to come and that this should provide us with good long-term returns.
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