DM Monthly Report – May 2018
MANAGING RISK THROUGH INTERIM POSITION MANAGEMENT – In June of 2013, we first purchased shares in IAC/Interactive Corp., a company that owns more than 150 media and internet brands and which had established a long history of creating shareholder value through the management of its assets. Our investment thesis at the time said that the company would provide our portfolios with exposure to two of the fastest growing online business segments:
Search – IAC’s “Ask.com” is a niche offering, providing search functionality based on natural language questioning; it’s the world’s fourth most popular search engine.
On-line personals – IAC was (and is) the global leader in online dating, both through its flagship “Match.com” and other brands at the top of the space.
Click here to read more: DM-Monthly-Report-May-18
Provisus Monthly Insight – May 2018
CLOSING THE GAP – Dividend paying stocks have been very popular with investors in recent years due to weak returns in the bond market. That picture appears to be shifting in Canada for the first time in almost a decade. As the Bank of Canada has slowly tightened monetary policy, bond yields have naturally risen, yet still remain well below the levels seen before the financial crisis. As bond yields rise, investors may cut their exposure to equities. Historically bull markets tend to end once interest rates have risen too much, too fast. The current long-lasting uptrend is beginning to show signs of entering the euphoria stage. If dividend yields drop below bond yields it could be another indication that the high-flying stock market is headed for a correction.
Click here to read more: Monthly Insight – May 2018 – Closing the Gap
Provisus – Q1 Investment Review
Market Comment – The turbulent start for financial markets so far in 2018 has left few places to hide. Investors have had a lot thrown at them; escalating tensions over global trade, major tech sector wobbles, increasing turmoil at the White House and an onslaught of stock volatility. Certainly, the markets were overly greedy and downturns are normal but what has investors in a tizzy is the abrupt and perhaps savageness of the swings. However, while the ride was bumpy the final outcome was not overly hideous or cataclysmic.
Last year the Canadian economy expanded at a much stronger pace in comparison to the previous year and the outlook for 2018 remains positive…..
Click here to read more: Investment Review – Q1 2018
DM Monthly Report – April 2018
DM SMALL CAP FUND CELEBRATES ITS 7th ANNIVERSARY – Seven years ago, we launched the DM Small Cap Fund to access an important part of the Canadian equity market and to round out diversification within client portfolios. The Fund would be managed according to the investment philosophy guiding all of DM’s equity mandates, but would only invest in publicly traded companies with market capitalizations below $2bn. We viewed this market segment as attractive for a number of reasons:
Growth—smaller companies tend to be at the higher growth stage of their life cycle and can often seize opportunities and react to industry developments more nimbly than larger firms;
Click here to read more: DM-Monthly-Report-Apr-18
