Most recent newsletter
Tell an
December 2004 Newsletter
Wednesday, December 01, 2004
"I have probably purchased fifty "hot tips" in my career, maybe even more. When I put them all together, I know I am a net loser."
- Charles Schwab
CANADIAN PORTFOLIO HIGHLIGHTS
NET ASSET VALUE $ 11.53
Global demand for Canadian products continues to boost the economy which grew at an annual rate of 3.29% in the third quarter. If the Canadian currency continues to strengthen against the US dollar, David Dodge, Governor of the Bank of
Canada (BOC), may elect not to raise rates on December 7th. Higher rates at this time don't seem to be necessary as inflation is tracking below the 2% target set by the BOC. The market moved higher over the month with the S&P TSX closing up 1.8%. As you can see from the chart, the Van Arbor Canadian Advantage Portfolio continues its strong performance, both in absolute terms and against the bench-mark. The Van Arbor Canadian Advantage Fund delivered a 2.85% return for the month of November and has returned 5.25% over the S&P TSX since inception. With oil prices hovering either side of $50 a barrel, the average return for the oil and gas related equities in the Fund was 2% in November. Canadian bank stocks retracted this month as higher rates and the expectation of a slowdown in demand for mortgages filtered into the market. The average 30 day return for bank related stocks in the Fund was -4.4%. The fund's biggest advancers were retailers reporting a 19% increase in operating profits over the third quarter last year, Loblaw Companies (L:TSX) appreciated over 3% last month. The Fund's biggest gainer was Reitman's Canada Ltd (RET/NV/ACN:TSX) appreciating over 16% in the last 30 days. Utilities and transportation related companies were the Fund's second biggest advancers for the month posting gains in excess of 4.5%, with the shares of CHC Helicopter (FLY/SV/ACN:TSX) and Enbridge Inc. (ENB:TSX) appreciating over 5% this month. No changes in the portfolio holdings occurred during the month.
US PORTFOLIO HIGHLIGHTS
NET ASSET VALUE $ 10.84
Similar to Canada, the US economy grew at a 3.9% annual rate in the third quarter. Consumers however, grew more cautious as indicated by the consumer confidence index falling 2.3% to 90.5%. The US Portfolio, and the market, moved higher over the month. The portfolio was up 7.2% beating the DJIA by 3.8% for November and since inception the portfolio is higher by 4.3% over the Dow. The biggest contributors to the November performance were healthcare related companies despite their pullback last month. The Fund's average return for healthcare and medical equipment related companies was in the magnitude of 9.5%. The Fund's biggest advancers in this sector over the last 30 days were WellPoint Health Networks (WLP:NYSE) and United Health Group (UNH:NYSE), posting gains of 28% and 14% respectively. The WellPoint Health Networks merger with Anthem Inc. (ATH:NYSE) was completed on November 30th and the new company, WellPoint remains very highly ranked and in the portfolio. The exception to the stellar performance of this sector was Medtronic Inc. (MDT:NYSE), it's share price depreciated 6% this month, following the company's release of poorer than expected second quarter earnings. The second biggest advancers for the month were manufacturers, contributing an 8% return to the Fund. Ball Corp (BLL:NYSE) and Johnson Controls Inc (JCI:NYSE) advanced 12% and 7% respectively. Banks and financials contributed a 4% return to the overall Fund performance, with the leaders being Legg Mason (LM:NYSE), up 7% and Wells Fargo (WFC:NYSE), up 3%. There were no changes to the portfolio holdings during November.
Van Arbor Asset Management is an independent Asset Management company dedicated to creating wealth using a disciplined, proprietary investment strategy with an emphasis on preserving capital while generating superior long-term returns.
Click here to download a PDF
|
|
|
|
|
|
Explore
Request More Information
Attend a Meeting
Newsletter Mailing List |
Adobe Acrobat Reader or Exchange is required to view PDF documents. You may download the free document viewer (Acrobat Reader) from Adobe's web site. |
