DM Portfolio Commentary – Q3 2024
Regime Change – In the final paragraph of our first quarter letter, we wrote:
‘In the next issue of this commentary, we could very well be talking about a quarterly decline for your equity allocation, and it may be more than just a speed bump. History and the well documented mistakes of others, however, tell us that our best course will be to stay put, regardless of how bleak things might seem in the moment or how tempted we are to try and outsmart the market.’
While the three months immediately following that report passed without incident, it looked like our warning might be coming to fruition halfway through Q3.
Click here to read more: DM Portfolio Commentary – Q3 2024
Cardinal Update – September 2024
A Double Dose of Good News – Bank of Canada cuts rates again as TSX hits all-time high.
Amid slowing inflation and rising unemployment, the Bank of Canada kicked off September by lowering its benchmark rate by another 25 basis points.
It’s the third quarter-point rate reduction in 13 weeks, bringing the country’s key interest rate down to 4.25 per cent as the central bank continues to walk an economic tightrope with inflation falling to 2.5 per cent and unemployment rising to 6.6 per cent.
Company Focus: Element Fleet Managment – The next time Amazon delivers a package to your door, thank Element Fleet Management for overseeing the vehicle that brought it to you.
Click here to read more: Cardinal Update – September 2024
DM Monthly Report – Sept 2024
SMALL POWER – Partway through the summer, Sleep Country Canada was bought by Fairfax Financial, marking the fifth acquisition of a DM stock position within a 12 month span. The good thing about buyouts is that to convince target company management and shareholders to accept such deals, a substantial price premium is usually required and, as the accompanying table illustrates, recent bids for DM holdings have followed this rule.
Click here to read more: DM Monthly Report – Sept 2024
DM Monthly Report – Summer 2024
WHAT HAPPENS TO STOCKS FEATURED IN THE DM LETTER? It’s a bit of Dixon Mitchell lore (mostly perpetuated by our research team!) that whenever a stock is mentioned in our monthly newsletter, it gets the performance equivalent of a kiss of death. To investigate the validity of the claim, we calculated each stock highlighted since the covid market bottom has faired against its relevant benchmark to the end of May 2024.
Feature Stock – Jamieson Wellness Inc. (JWEL) In May we established an initial position in JWEL in the DM Canadian Equity Portfolio.
Click here to read more: DM Monthly Report – Summer 2024
