August 2008 Newsletter
August 1st, 2008
CANADIAN ADVANTAGE FUND
With a continued defensive stance, the Canadian Advantage Fund ended the month of July almost flat, down 0.7%, sharply outperforming the S&P; TSX Index which fell 5.8%. A strong relative outperformance attributed to our diversified core holdings focused on non-commodity sectors of the Canadian marketplace. The energy and material sectors finished the month down 12% as concerns of a slowdown in overseas growth dampened enthusiasm for commodities. The market seems to be undergoing a change in sentiment from growth to value, which definitely favours our investment approach. Once commodity and energy stock valuations come back to attractive levels we expect to accumulate industry leaders. The next few months will likely have a few road bumps but we are optimistic that our core holdings will deliver superior long term returns while preserving capital as the market stabilizes and turns around.
US ADVANTAGE FUND
Solid returns from our holdings in the health care and consumer staples sector helped lift the US Advantage Fund up 2.6%, while the S&P; 500 Index fell 1%. Energy, materials and utilities were the main drag on the index last month as growth names fell sharply while value names saw steady gains. The month of July was once again volatile in the financial and energy sectors, which we remain underweight. Our US portfolio continues to significantly outperform the market indices, by over 10% year to date, while keeping volatility low. The US dollar seems to be stabilizing after hitting record lows and looks set to rally as international currencies are just beginning to feel a slowdown and will eventually need to follow the US in cutting interest rates. We see the US dollar gaining more ground on the Canadian Loonie in the second half of this year, which is all the more reason we see US equities as very attractive with plenty of diversified opportunities.
EURO ADVANTAGE FUND
The Euro Advantage Fund finished July relatively flat, up 0.3%, while the S&P; Euro Index fell 1.5%. July marks the sixth month in a row that we have outperformed the index as blue chip value companies continue to lead a tough Euro market. The portfolio’s diversified approach should continue to deliver stable returns as the Euro market begins to turnaround. Last month’s best performers were technology provider Indra Sistemas and drug maker Sanofi-Aventis both rising 6%. Our focus towards industry leader equity selection remains even more important in this macroeconomic challenging environment and should continue to help lead to strong relative outperformance.
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- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- June 2006
- May 2006
- April 2006
- March 2006
- February 2006
- January 2006
- December 2005
- November 2005
- October 2005
- September 2005
- August 2005
- July 2005
- June 2005
- May 2005
- April 2005
- March 2005
- February 2005
- January 2005
- December 2004
- November 2004
- October 2004
- September 2004
- August 2004
- July 2004