DM Monthly Report – March 2023
VPI Balanced Pool Wins Industry Award – for 5th straight year – In late 2007, Value Partners Investments launched its VPI Canadian Balanced Pool and hired DM as the mandate’s sole manager. In VPI’s words, the intent of the fund was to “deliver long-term capital appreciation and income generation by investing primarily in large, medium, and small companies that generate sustainable cash flow, are operated by competent management teams, and have track records of wealth creation. The portfolio manager will also purchase fixed income securities that provide attractive returns through both capital appreciation and interest payments.”
Click here to read more: DM Monthly Report -March 2023
DM Commentary on US Bank Failure – March 2023
Slowly, then all at once – At the end of last week, the 16th largest bank in the US, Silicon Valley Bank, was shut down by regulators when it became clear that it wouldn’t be able to stem a run on deposits. Rumors had been swirling for some time that SVB was headed toward (if not already in) violation of its regulatory capital requirements, which was precipitated by a significant duration mismatch between its liability book – i.e. customer deposits – and its asset base, represented primarily by mortgages purchased near the top of the fixed income market.
Click here to read more: DM Commentary – US Banking Update – Mar 2023
Cardinal Update – February 2023
When Inflation is in Fashion – What’s Driving Rising Prices and What Will It Take to Rein It In? The countdown to spring has begun and we’re optimistic that forecasts for lower inflation will continue to ring true. There’s still some work to do to get to the Bank of Canada’s target inflation rate of 2.0 per cent but at least things are moving in the right direction. While there are some positive signs that commodities are coming down, the fact remains that our dividend-focussed investment approach seems to be in fashion these days with the world looking for ways to keep pace with longer term inflation.
Our company focus this month: Sony Group – the Japan-based electronics giant that many of us have known since our Walkman days. Sony has three undervalued world-class businesses which have been enjoying high growth: Music, Gaming, and Imaging. And speaking of dividend growth, four of our companies increased their dividends in January, led by NXP Semiconductors at 20 per cent.
Click here to read more: Cardinal Update – February 2023
Cardinal Quarterly – January 2023
Market Outlook – BULLS ARE BACK IN 2023 – We believe the challenges of 2022 will
lead to opportunities in 2023.
There’s no question that a rash of negative economic news and political unrest dragged global stock markets down for much of last year. A year ago, the virtual consensus among economists and central bankers was that inflation would be transitory but instead rising prices picked up speed. Russia’s invasion of Ukraine was certainly one of the contributing factors but it also created more geopolitical instability.
Click here to read more: Cardinal Quarterly – January 2023
