DM Monthly Newsletter – Oct 2016

IN Q3, PREY BECAME PREDATOR – It’s not uncommon for Canadian companies to be swallowed up by their larger, often foreign, peers. Names such as Alcan, Inco, and Rona have met such a fate in recent years and in DM portfolios, we’ve lost great firms like St. Lawrence Cement, Teranet, and Shoppers Drug Mart to acquisition. Though the hefty premiums that these deals usually carry are a nice bonus in the short term, we often find ourselves lamenting the loss of a difficult to replace cash flow producer once the dust has settled.

In the third quarter, however, the shoe was on the other foot in our Canadian equity mandates, as several of our positions announced significant purchases.

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