As we close out an eventful 2024, we’re excited to share how the year’s developments have shaped our strategies and portfolios. This year presented both challenges and opportunities, and we’re pleased with the progress made toward positioning your investments for continued growth and resilience.

 

2024 in Review

 

The past year saw dynamic market conditions shaped by shifting interest rates, technological advancements, and geopolitical factors. Our approach remained rooted in adaptability and diversification, ensuring we captured opportunities while managing risks.

 

Q1 Highlights

  • Digital assets and technology led portfolio performance, with strategic rebalances conducted to lock in gains.
  • A tactical hedge in energy yielded strong results as oil prices surged.
  • Fixed income solutions were enhanced with two new public fixed income funds and a new private credit manager, improving income potential.

 

Q2 Highlights

  • Profits were taken from energy and base metal producers, while exposure to technology increased, notably in artificial intelligence (AI)-driven sectors.
  • Digital assets were rebalanced again as Bitcoin and Ethereum surged higher early in the year.
  • Fixed income strategies shifted to higher credit quality assets, while the portfolio was optimized for tax efficiency in light of new capital gains rules.

 

Q3 Highlights

  • A defined outcome ETF matured and was replaced with a low-volatility U.S. equity fund.
  • Exposure to commodities was increased, focusing on energy and metals.
  • Fixed income credit quality was upgraded with government debt and shorter-term bonds to maintain flexibility amidst increase in interest rate volatility.

 

Q4 Activities

  1. Cash Enhancement Adjustments
    With declining interest rates impacting cash enhancement solutions, we retooled our offering to generate competitive income on cash while preserving flexibility.
  2. Rebalance and Profit-Taking
    In November, we conducted a firm-wide rebalance to capture gains amidst positive market conditions. The U.S. election results provided a boost to sentiment, creating opportunities to lock in profits while realigning portfolios.
  3. Digital Assets Strategy Shift
    A pro-digital asset stance from the President-elect’s administration inspired a strategic shift in November. We transitioned from an actively managed digital asset solution to a market-weighted allocation focused on Bitcoin and Ethereum. This approach reflects our confidence in the sector’s regulatory and growth prospects while maintaining target exposure to manage risk.
  4. Enhanced Equity Positioning
    Reflecting our bullish outlook for early 2025, we adjusted a portion of our equity exposure by transitioning to a solution with an increased market participation. This adjustment aligns with our view that equities are well-positioned for growth in the near term.
  5. Energy Sector Assessment
    With signs of increased global stability and softer demand expectations into 2026, we are carefully evaluating our energy exposure. While energy remains an important part of our portfolio, we are considering adjustments to align with evolving market conditions.

 

Looking Ahead to 2025

 

We enter 2025 with optimism, particularly for the first half of the year. Strength in equities, continued advancements in technology, and opportunities within digital assets underpin our positive outlook.

 

At the same time, we are mindful of potential headwinds on the horizon into 2026, including geopolitical risks and economic shifts. Our proactive approach ensures we’re preparing portfolios to navigate these challenges effectively.

 

As always, we deeply value your trust and partnership. Should you have any questions or wish to discuss your portfolio further, we’re here to help.

 

Wishing you a prosperous and fulfilling new year.

Sincerely,

 

The Team at Stonehaven Private Counsel

 

About the Authors
This commentary was prepared by Jeff Sproul, PFP®, CIM®, Victor Kuntzevitsky, CFA, CAIA, and Grant Dawes, CIM®, CFP®, TEP of Stonehaven Private Counsel at Wellington-Altus Private Counsel. Together, they provide portfolio management and wealth planning guidance to business owners, executives, affluent families, retirees, and multi-generational wealth clients. Learn more about their experience, credentials, and areas of expertise and explore how Stonehaven supports different client needs through its work with business owners, retirees, professionals, families, and next-generation wealth clients.

The material contained herein has been provided for information purposes only.  The information has been drawn from sources believed to be reliable.  Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment.  The information does not provide financial, legal, tax or investment advice.  Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance.  This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document.  Wellington-Altus Private Counsel  (WAPC) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions.  Before acting on any of the above, please contact your financial advisor.