Message from Hussein Amad, President & CEO – Yorkville Asset Management Inc.
The markets have had a rocky week, and yesterday was a reflection of what had been anticipated by us for a while - with the S&P 500 selling off 2.23% (1.63 in CAD terms) and the TSX selling off 2.99%. When we wrote to you last we highlighted three major shifts that helped our portfolio shelter this massive volatility.
1.Increased cash going into the summer months. We are roughly at 12 - 15%. Thus cash might be partially deployed on material weakness we expect to see in equity and bond markets.
2.Reduced Canadian equities to the lowest level we can and favoured more defensive dividend paying (and dividend growing) U.S. stock.
3.For clients that permit the use of options for hedging (insurance) we have increased the insurance coverage for the current summer months (May-September).
These three strategies will help us and our clients maintain our strong alpha (outperformance) against our market benchmark and our peers. We are in a much more comfortable position in terms of our stock picks, asset mix, USD allocation and partial hedge than our peers and I wanted to convey this message on behalf of our investment committee to our clients and friends.
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Yorkville Perspective - June 2012
Message from Hussein Amad, President & CEO – Yorkville Asset Management Inc.
The markets have had a rocky week, and yesterday was a reflection of what had been anticipated by us for a while - with the S&P 500 selling off 2.23% (1.63 in CAD terms) and the TSX selling off 2.99%. When we wrote to you last we highlighted three major shifts that helped our portfolio shelter this massive volatility.
1.Increased cash going into the summer months. We are roughly at 12 - 15%. Thus cash might be partially deployed on material weakness we expect to see in equity and bond markets.
2.Reduced Canadian equities to the lowest level we can and favoured more defensive dividend paying (and dividend growing) U.S. stock.
3.For clients that permit the use of options for hedging (insurance) we have increased the insurance coverage for the current summer months (May-September).
These three strategies will help us and our clients maintain our strong alpha (outperformance) against our market benchmark and our peers. We are in a much more comfortable position in terms of our stock picks, asset mix, USD allocation and partial hedge than our peers and I wanted to convey this message on behalf of our investment committee to our clients and friends.