Monthly Message

For May, the Wutherich & Co. Composite was up 9.2%.

Reprieve from Trump Chaos 2.0? Temporary or lasting? We don’t know. We focus on the health of our individual holdings. Given that many of them have just reported their most recent quarters, we have a pretty good snapshot of how they are doing. For the most part, our companies continue to do well. While all are somewhat cautious with the macro-economic environment, most have strong outlooks for the continued growth of their businesses.

A good example of how our companies are coping is Black Diamond Group Ltd. (BDI-T). BDI is a Calgary based provider of modular space units and related services. They do this for markets as diverse as construction, mining, utilities, schools, temporary housing and many other applications. BDI operates in Canada, the US and Australia but moves very little across borders so tariffs don’t have a significant direct impact on them. They may experience secondary impacts of tariffs as these may affect some of their customers. So far, they have not seen any of that as demand and pricing continue to remain strong.

Most of the names in the portfolio show similar resilience. This should provide the foundation for good long-term returns though it is anyone’s guess what will happen in the near-term.

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