Most recent newsletter
Tell an
March 2006 Newsletter
Wednesday, March 01, 2006
CANADIAN ADVANTAGE FUND
The Van Arbor Canadian Advantage Fund continues to post returns despite the pullback in the Canadian energy sector. The Fund gained 0.38% for the month to close at $17.47. Despite strengthening in healthcare (+8.5%) and financials (+3.4%), the S&P TSX Equity Index was unable to offset the losses that stemmed from the plunge in the energy sector (-7.3%) and the telecom services sector (-4.8%). As a result the S&P TSX retracted 2.13% for the month. The Fund's gains resulted from a recent spark in the consumer sector led by Reitman's Canada (+8.5%, RET/NV/A:TSX) and Alimentation Couche Tard (+7.6%, ATD/SV/B:TSX). Similarly shares of the recently beat-up supermarket chain Loblaw (L:TSX) had a good month and closed up 4.5%. Most of the financials also fared well this past month averaging gains of 3%, while the Fund's recent trimming of energy holdings (to inline with the Index - 25% weighting) reflected a more comfortable allocation and cushioned the blow from the pullback in energy related shares. The Fund's top performer for the month was SNC Lavalin (SNC:TSX), Canada's biggest engineering company. After reporting a 43% gain in fourth-quarter profit, shares of SNC hit an all-time high of $100 and closed up 20% for the month. Holdings of Russel Metals and Imperial Oil were sold and proceeds were used to establish positions in Toronto-Dominion Bank (TD:TSX) and Alimentation Couche Tard (ATD/SV/B:TSX), operator of a network of 24-hour convenience stores across Canada.
Fund Performance Summary (Benchmark is S&P TSX Index)
US ADVANTAGE FUND
The Van Arbor US Advantage Fund ended the month of February down 5.94% to close at $11.57. During the same period the S&P 500 Index was up 1.1%. The pullback this past month was a result of the lackluster performance of energy and medical related products. Shares of Exxon Mobil (XOM:NYSE), Apache Corp. (APA:NYSE) and Murphy Oil (MUR:NYSE) were down 5.4%, 11.4% and 17.7% respectfully for the month, while shares of Stryker Corp (SYK:NYSE), ended the month down 7.4%. Large refiners and drillers of crude haven't been able to fully recover from the hurricane season yet as some are anticipating higher costs this year due to non-recoverable insurance claims from damaged oil rigs and tanks. Furthermore, refining margins known as crack spreads have been deteriorating in the last while as prices of crude have haven't nearly come down as much as prices of refined products such as gasoline. This coupled with a rather warm winter and reduced winter gas demand, have all contributed to a hefty pullback in share prices of many oil and gas companies. Three trades took place during the month. Holdings of Newfield Exploration, Walgreen, and Murphy Oil were sold and proceeds were used to buy positions of Brown & Brown (BRO:NYSE), Dentsply (XRAY:NYSE), and MDU Resources (MDU:NYSE).
Fund Performance Summary (Benchmark is S&P 500 Index)
EURO ADVANTAGE FUND
The Van Arbor Euro Advantage Fund remained relatively flat at $10.49 after a strong month of January. While seven of the Fund's companies advanced in excess of 10% for the month, the Fund's energy related holdings and a weak Euro currency held back the portfolio from posting larger gains. The top Fund performers for the month were industrial and construction related companies. Shares of K+S AG (SDF:GR) and YIT-Yhtyma Oyj (YTY1V:FH) ended the month up 12.9% and 11.5% respectively. The Fund and the Euro market in general saw advances in multiple industries including industrials, financials and utilities. While the S&P Utilities Index advanced 6.8%, the Financials Index was not far behind and trailed at a 6.5% gain for the month. The S&P Euro Energy Index was worst hit and closed down 4.5% this past month, while the Fund's energy holdings, as a group, fell roughly 5% for the month. Throughout the month the Euro also depreciated 2% against the Canadian dollar and this created a gap between the favorable equity selection and the Canadian dollar denominated returns. Two trades occurred during the month. Holdings of Cia Espanol de Petroleos and Abertis Industries were sold and replaced by Pernod-Ricard (RI:FP), a manufacturer of wines and spirits, and Banco Pastor (PAS:SM), a Spanish commercial bank.
Fund Performance Summary (Benchmark is S&P Euro Index)
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. |
