Front Street Capital

Commentary

Norm Lamarche
Commentary: Norm Lamarche November 18, 2008

NORM LAMARCHE - Q3 2008 COMMENTARY

The governments inability to contain capital market issues, accentuated the spiral in September, sending share prices tumbling worldwide for the quarter. Government Treasury offices, as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion, as evidence mounted quickly of its spread into the “real” economy. Falling prices for energy, metal and grains led commodity share prices to sharp corrections during September. On the energy front, WTI crude dropped from $145/bbl in July to close just above $100 at the end of September.

Frank Mersch
Commentary: Frank Mersch November 18, 2008

FRANK MERSCH - Q3 2008 COMMENTARY

During the third quarter of 2008, the Canadian equity market slid into bear-market territory, declining 18.76%, while the S&P 500 fell 8.88%. Over the first half of the quarter, some of the negative forces faced by Canadian equities included weaker commodity prices, a stronger U.S. Dollar, slowing global growth (particularly in China), and a collapse in inflation expectations.

Eric Dzuba
Commentary: Eric Dzuba November 13, 2008

ERIC DZUBA Q3 2008 COMMENTARY

This September was among the worst for Canadian equities in the last ten years. The S&P/TSX Composite Index fell 14.6%, as energy and materials stocks came under pressure as the U.S. credit crisis became global and companies outside of financial services began to face the reality of a significant slowdown in the global economy. As we wrote in our second quarter report, the discrepancy between the Canadian equity market and those of other developed markets had to close: as it turned out, our market dropped to fall in line with others.

Frank Mersch
Commentary: Frank Mersch September 30, 2008

Front Street Canadian Hedge Monthly Commentary

Over the past couple of months we have outlined some of the negative forces faced by Canadian equities, including weaker commodity prices, a stronger U.S. Dollar, slowing global growth (particularly in China), and a collapse in inflation expectations. These forces had sent the TSX index lower, but they paled in comparison to the havoc unleashed this past month as the financial system itself came under severe strain, resulting in the demise/forced sale of Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac, AIG, Washington Mutual and Wachovia.

Norm Lamarche
Commentary: Norm Lamarche September 30, 2008

Front Street Resource Hedge Fund - Monthly Commentary

Falling prices for energy, metal and grains led commodity share prices tumbling for the month. The governments’ inabilities to contain their capital market issues, accentuated the spiral in September and into October. Government Treasury offices as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion as evidence mounted quickly of its spread into the real economy. On the energy front, WTI crude dropped $15/bbl to close above $100 at the end of September. Nat Gas dropped 6.3% to close at $7.44/Gj.

Norm Lamarche
Commentary: Norm Lamarche September 30, 2008

Front Street Energy Venture Fund Ltd. - Monthly Commentary

Falling prices for energy, metal and grains led commodity share prices tumbling for the month. The governments’ inabilities to contain their capital market issues, accentuated the spiral in September and into October. Government Treasury offices as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion as evidence mounted quickly of its spread into the real economy. On the energy front, WTI crude dropped $15/bbl to close above $100 at the end of September. Nat Gas dropped 6.3% to close at $7.44/Gj.