Wutherich & Co. September 2013 Newsletter

Wutherich & Co. September 2013 Newsletter

by wilwutherich on October 7, 2013 · 0 Comments

Monthly Message
The Wutherich & Co. Composite was up 4.0% in September. This compares with the S&P 500, up 3.1%, the DJIA up 2.3%, the NASDAQ up 5.1%, the S&P/TSX up 1.4%, while the BMO Small Cap Index was up 0.4%. Wow, if September is supposed to be the worst month for stocks, what happened? And this, with the back drop of US budget dysfunction and all of the geopolitical and growth concerns that exist out there. Best not to think too much about these things. We focus on the individual companies that we invest in. Sure, they will have some sensitivity to the macro-economic issues affecting our planet, but if we do our homework, most of them will do just fine over the long-term. We still have close to 20% cash in the Wutherich & Co. Portfolio and would like to buy more of our favourite stocks at steep discounts to recent prices. Hopefully, the current environment provides us with that opportunity
The following table illustrates the performance of the Wutherich & Co. Composite to the present:
(unaudited, since Sep.30/01)*

	Month	1YR	3YR	5YR	10YR	Inception
Wutherich & Co.	4.0%	19.3%	18.9%	12.7%	13.8%	15.6%
BMOSCI-wtd	0.4%	-0.4%	2.0%	9.2%	8.1%	9.9%
S&P/TSX	1.4%	7.1%	4.1%	4.8%	8.4%	8.0%

Wutherich & Co. Factsheet
Company Objective
Our goal is to seek prosperity for our clients through participation in stable, growing companies in North America, led by strong management teams that we consider our partners for the next five or more years.
Investment Philosophy
Our style can be described as concentrated, disciplined, long-term growth stock investing. The focus is on established companies that generally have a demonstrated track record in revenue, cash flow or earnings per share growth, with strong managements and solid balance sheets. The current emphasis in the portfolio is on the equity of small to medium capitalization companies, defined roughly as $50 million to $5 billion in market capitalization. The portfolio may include large capitalization companies if the right elements are there. Stocks are bought with a keen eye to valuation, so you’re not likely to find many high multiple stocks here. The portfolio will likely maintain a significant percentage in foreign securities, providing exposure to investment returns outside of Canada.

Portfolio Composition (as a percentage of net assets)
Canadian Stocks		61.06%
	Energy	23.53%
	Financials	0%
	Information Technology	0%
	Communications and Media	0%
	Consumer	4.17%
	Healthcare	4.54%
	Industrials	17.38%
	Materials	6.60%
	Telecom	0%
	Transportation	4.84%
	Utilities	0%
U.S. Stocks		19.91%
	Energy	7.47%
	Specialty Retailers	6.68%
	TRANSPORTATION	5.76%
Cash and OtheRS		19.03%

Performance

(unaudited, the growth of $100,000 invested as at Sep. 30/01)*

Your account with us

Wutherich & Company is an independent investment counsellor. We do not hold assets for our clients, but simply exercise trades over your account as per an agreed upon investment policy statement and portfolio management agreement. Your account is held at TD Waterhouse Canada Inc. in your name. Withdrawals from that account can only be sent to you at your designated bank account and/or address of record. Wutherich & Co. may also do withdrawals from your account to satisfy any fees that may apply to your account. All accounts are cash accounts. Unlike hedge funds, we do not use leverage or derivatives to manage your money. Also, we are not a fund company – if you are a private investor with us, your account will mirror the Model Portfolio but your investments are not pooled.

Other Facts

	Annual fees are 1.5% of assets on a quarterly basis in arrears, plus applicable taxes.
	Institutional clients qualifying for a segregated fund account would be charged 1% for the first $10 million and 0.5% for the next $40 million.
	Fees on any accounts over $50 million would be subject to negotiation.
	Minimum account size is $250,000.
	Investments are 100% RSP eligible.

*The Wutherich & Co. performance shown here is of a composite which combines the performance of all of the accounts managed by Wutherich & Co. that have been invested according to the Wutherich & Co. Portfolio throughout their history. These accounts vary greatly in the size of assets that they contain and whether or not fees have been deducted directly from the accounts during their history. BMOSCI-wtd = BMO Small Cap Index, Total Return, weighted. This index is currently the most comparable to the Wutherich & Co. portfolio due to its average market capitalization, though it may differ greatly in its sector weightings; TSX = S&P/TSX Total Return Index. Due to its large capitalization nature and substantially different sector weightings, this index may not be considered comparable to the Wutherich & Co. Portfolio.