Wutherich & Co. May 2014 Newsletter

Wutherich & Co. May 2014 Newsletter

by wilwutherich on June 12, 2014 · 0 Comments

Monthly Message
The Wutherich & Co. Composite was up 0.2% in May. This compares with the S&P 500, up 2.3%, the DJIA up 1.2%, the NASDAQ up 3.1%, the S&P/TSX down 0.2%, while the BMO Small Cap Index was down 1.2%. Oh, but for a crisis of some kind! We haven’t had a good scare in the financial markets for a while. Careful what we wish for? We would welcome the opportunity to buy more of our favourite stocks. The fundamentals of most of our companies remain very robust and we would be happy to take advantage of any price weakness. In the meantime, we pick away at some of our cheaper names and trim some of the more expensive ones.
The following table illustrates the performance of the Wutherich & Co. Composite to the present:
(unaudited, since Sep.30/01)*

	Month	1YR	3YR	5YR	10YR	Inception
Wutherich & Co.	0.2%	25.9%	16.6%	19.4%	12.3%	15.9%
BMOSCI-wtd	-1.2%	21.8%	0.9%	14.8%	7.8%	10.8%
S&P/TSX	-0.2%	19.0%	5.0%	10.2%	8.5%	8.8%

Wutherich & Co. Factsheet
Company Objective
Our goal is to seek prosperity for our clients through participation in stable, growing companies in North America, led by strong management teams that we consider our partners for the next five or more years.
Investment Philosophy
Our style can be described as concentrated, disciplined, long-term growth stock investing. The focus is on established companies that generally have a demonstrated track record in revenue, cash flow or earnings per share growth, with strong managements and solid balance sheets. The current emphasis in the portfolio is on the equity of small to medium capitalization companies, defined roughly as $50 million to $5 billion in market capitalization. The portfolio may include large capitalization companies if the right elements are there. Stocks are bought with a keen eye to valuation, so you’re not likely to find many high multiple stocks here. The portfolio will likely maintain a significant percentage in foreign securities, providing exposure to investment returns outside of Canada.

Portfolio Composition (as a percentage of net assets)
Canadian Stocks		63.76%
	Energy	25.86%
	Financials	0%
	Information Technology	0%
	Communications and Media	0%
	Consumer	0%
	Healthcare	5.43%
	Industrials	20.02%
	Materials	7.12%
	Telecom	0%
	Transportation	5.34%
	Utilities	0%
U.S. Stocks		19.58%
	IndustrialS	6.52%
	Specialty Retailers	5.76%
	TRANSPORTATION	7.29%
Cash and OtheRS		16.66%

Performance

(unaudited, the growth of $100,000 invested as at Sep. 30/01)*

Your account with us

Wutherich & Company is an independent investment counsellor. We do not hold assets for our clients, but simply exercise trades over your account as per an agreed upon investment policy statement and portfolio management agreement. Your account is held at National Bank Correspondent Network in your name. Withdrawals from that account can only be sent to you at your designated bank account and/or address of record. Wutherich & Co. may also do withdrawals from your account to satisfy any fees that may apply to your account. All accounts are cash accounts. Unlike hedge funds, we do not use leverage or derivatives to manage your money. Also, we are not a fund company – if you are a private investor with us, your account will mirror the Model Portfolio but your investments are not pooled.

Other Facts

	Annual fees are 1.5% of assets on a quarterly basis in arrears, plus applicable taxes.
	Clients qualifying for an institutional account would be charged 1.5% for the first $1 million, 1.0% from over $1 to 10 million and 0.5% for the next $40 million.
	Fees on any accounts over $50 million would be subject to negotiation.
	Minimum account size is $250,000.
	Investments are 100% RSP eligible.

*The Wutherich & Co. performance shown here is of a composite which combines the performance of all of the accounts managed by Wutherich & Co. that have been invested according to the Wutherich & Co. Portfolio throughout their history. These accounts vary greatly in the size of assets that they contain and whether or not fees have been deducted directly from the accounts during their history. BMOSCI-wtd = BMO Small Cap Index, Total Return, weighted. This index is currently the most comparable to the Wutherich & Co. portfolio due to its average market capitalization, though it may differ greatly in its sector weightings; TSX = S&P/TSX Total Return Index. Due to its large capitalization nature and substantially different sector weightings, this index may not be considered comparable to the Wutherich & Co. Portfolio.