One must go on working silently, trusting the result to the future. – Vincent van Gogh
The model portfolios saw gains in March, with Growth up 3.83%, American Growth up 4.49%, Income up 2.69% and Small Cap up 4.11%, as of the writing of this commentary. As we noted in the last commentary, we saw a cluster of signals suggesting pessimism had peaked in late February, setting the stage for a broad market rally that is now underway. Our businesses were mostly spared from the volatility, and continue to generate cashflow while trading in uptrends. We believe this is an opportunity to put any cash on the sidelines to work with us.
Model Portfolio Highlights
Growth Portfolio
We booked a 46% gain on Aritzia, held over the last nine months. With the proceeds we purchased a new position in Winpak which manufactures packaging materials and related machines. In our view revenue growth is surprising to the upside while the shares are breaking a years-long downtrend on strong buying volume.
American Growth Portfolio
We booked a 20% gain on Service Corp, along with gains on two other positions still in the portfolio. With the proceeds we purchased shares of Hormel Foods. We observed that Hormel is breaking out into new highs after a years-long period of consolidation. As food inflation picks up, we expect continued interest in packaged food companies from investors.
Income Portfolio
We sold our basket of US dividend companies and replaced it with a basket of utilities and infrastructure stocks. This new basket made new all-time highs in March while the rest of the market was still overcoming February’s volatility. It appears to us that bond investors, experiencing volatility of their own these days, are seeking alternative safe havens in the form of utilities.
Small Cap Portfolio
We made no changes to the portfolio this month. Our large positions in fertilizer and lithium continue to drive portfolio results higher.
Across all portfolios I look for mispriced opportunities, considering only those with a significant margin of safety and minimal risk of permanent capital loss. After identifying such opportunities, patience is the most important factor in realizing our expected long term return.
If you have any questions about your portfolio, financial planning or investments please be in touch. Click to book a meeting: https://calendly.com/bwk-wapw
Thank you.
Yours,
Ben
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth
Office: 416.369.3024
Email: bwk@wellington-altus.ca
Book a meeting
Ben Kizemchuk offers full service wealth management for high net worth Canadians including families, business owners, and successful professionals. Ben and his team provide investment advice, financial planning, tax minimization strategies, and retirement planning.
Market Commentary
April 2022 Update
One must go on working silently, trusting the result to the future. – Vincent van Gogh
The model portfolios saw gains in March, with Growth up 3.83%, American Growth up 4.49%, Income up 2.69% and Small Cap up 4.11%, as of the writing of this commentary. As we noted in the last commentary, we saw a cluster of signals suggesting pessimism had peaked in late February, setting the stage for a broad market rally that is now underway. Our businesses were mostly spared from the volatility, and continue to generate cashflow while trading in uptrends. We believe this is an opportunity to put any cash on the sidelines to work with us.
Model Portfolio Highlights
Growth Portfolio
We booked a 46% gain on Aritzia, held over the last nine months. With the proceeds we purchased a new position in Winpak which manufactures packaging materials and related machines. In our view revenue growth is surprising to the upside while the shares are breaking a years-long downtrend on strong buying volume.
American Growth Portfolio
We booked a 20% gain on Service Corp, along with gains on two other positions still in the portfolio. With the proceeds we purchased shares of Hormel Foods. We observed that Hormel is breaking out into new highs after a years-long period of consolidation. As food inflation picks up, we expect continued interest in packaged food companies from investors.
Income Portfolio
We sold our basket of US dividend companies and replaced it with a basket of utilities and infrastructure stocks. This new basket made new all-time highs in March while the rest of the market was still overcoming February’s volatility. It appears to us that bond investors, experiencing volatility of their own these days, are seeking alternative safe havens in the form of utilities.
Small Cap Portfolio
We made no changes to the portfolio this month. Our large positions in fertilizer and lithium continue to drive portfolio results higher.
Across all portfolios I look for mispriced opportunities, considering only those with a significant margin of safety and minimal risk of permanent capital loss. After identifying such opportunities, patience is the most important factor in realizing our expected long term return.
If you have any questions about your portfolio, financial planning or investments please be in touch. Click to book a meeting: https://calendly.com/bwk-wapw
Thank you.
Yours,
Ben
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth
Office: 416.369.3024
Email: bwk@wellington-altus.ca
Book a meeting
Ben Kizemchuk offers full service wealth management for high net worth Canadians including families, business owners, and successful professionals. Ben and his team provide investment advice, financial planning, tax minimization strategies, and retirement planning.
Recent Posts
December 2024 Update
If you’d like to add friends or family to this email list, please sign up
November 2024 Update
If you’d like to add friends or family to this email list, please sign up
October 2024 Update
Join the mailing list here The Growth and Income model portfolios performed well in September,
September 2024 Update
Join the mailing list here We are pleased to report that our Growth and Income
GDPNow: Shaping Perceptions and Influencing Markets
Join the mailing list here Today we are witnessing a cultural shift where institutional authority
The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts 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. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.