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.
“It is not a case of choosing those [faces] which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be.” (John Maynard Keynes, General Theory of Employment Interest and Money, 1936).
It is an ancient Mariner,
And he stoppeth one of three.
By thy long beard and glittering eye,
Now wherefore stopp'st me?
The Rime of the Ancient Mariner,
Samuel Taylor Coleridge
Although we are being selective in our choice of verse, Coleridge's eighteenth century poem of guilt, penance and redemption provides a lyrical backdrop to a review of 2007.
November was a volatile month in the Canadian equity market as raw material, energy and financial stocks were all impacted by some combination of a rebound in value of the US dollar, concern over slowing American economic growth, inflation concerns and the continuing global credit crisis.
October was a difficult month for the fund. Key issues included a private company write-down, weakness in the REIT space and two small cap income trusts experienced negative price swings despite significant intrinsic value or decent fundamentals.
The private company that was written down operates in the energy space in Western Canada. The province of Alberta announced details of its new royalty scheme at the end of the month: a move that was one more negative piece of news for a sector that has suffered this year from weak natural gas prices and a high Canadian dollar.
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.
ERIC DZUBA - Q2 2008 COMMENTARY
“It is not a case of choosing those [faces] which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be.” (John Maynard Keynes, General Theory of Employment Interest and Money, 1936).
Eric Dzuba - Q1 2008 Commentary
“Once harm has been done,
Even a fool understands it.”
- Homer
“D'Oh!”
- Homer Simpson
Eric Dzuba - Q4 2007 Commentary
Although we are being selective in our choice of verse, Coleridge's eighteenth century poem of guilt, penance and redemption provides a lyrical backdrop to a review of 2007.
Front Street Long/Short Income Fund Ltd.
November was a volatile month in the Canadian equity market as raw material, energy and financial stocks were all impacted by some combination of a rebound in value of the US dollar, concern over slowing American economic growth, inflation concerns and the continuing global credit crisis.
Front Street Long/Short Income Fund Ltd.
October was a difficult month for the fund. Key issues included a private company write-down, weakness in the REIT space and two small cap income trusts experienced negative price swings despite significant intrinsic value or decent fundamentals.
The private company that was written down operates in the energy space in Western Canada. The province of Alberta announced details of its new royalty scheme at the end of the month: a move that was one more negative piece of news for a sector that has suffered this year from weak natural gas prices and a high Canadian dollar.