If I had to pick three words to describe the investing vision Erin and I have for our funds, I’d go with opportunistic, concentrated and eclectic. Here’s why:
• Valuation matters. We want to buy companies when they’re cheap
• We concentrate on our best ideas. We have a little over 25 holdings
• We focus on a concentrated number of stocks, but diversify by industry and size
It is inherent in all of this that we don’t really follow or care about benchmarks. We focus on and care about the companies we own. We want to own high-quality companies that can grow.
Is this style unique? Well, let’s be honest. I don’t think any manager is going to say they look for horrible companies at horribly high prices. But it comes down to discipline and a willingness to make decisions that contradict the popular sentiment of the time. Here’s why:
• To find great companies that are undervalued, you have to go off the beaten path
• We have a long-term horizon and so we aim for low turnover rates
• We are not short-term flippers, we’re long term business owners
This is a very competitive market. There’s a lot of information efficiency. So, you have to look where other people aren’t looking. We’ve owned businesses in South Africa, in Mexico, South Korea. And these are markets that are probably off the radar for many other global equity fund managers in Canada.
Erin and I have been on Trimark Global Balanced Fund for two-and-a-half years. And we’ve worked together on Trimark Global Endeavour Fund* for close to five years. I’ve been on Trimark Global Endeavour for over ten years. I like the way we invest, and at the same time, I think we also have the track record over the longer term to back up this vision.
Trimark Global Balanced Fund, Series A provided the following performance returns as at April 30, 2012:
1-year, 2.09%; 3-year, 9.66%; 5-year, -2.19%; 10-year, 2.36%.
Trimark Global Endeavour Fund, Series A provided the following performance returns as at April 30, 2012: 1-year, 2.23%; 3-year, 18.25%; 5-year, -2.62%; 10-year, 3.70%.
*On August 12, 2002, the Fund’s investment objectives were changed. The performance of this Fund for
the period prior to August 12, 2002 would have been different had the current investment objectives been in effect during that period.