The three-year performance of Trimark Global Endeavour Fund (as at March 31, 2012) was 26.29% compared with 11.36% for the MSCI World Mid Cap Index, the benchmark for the fund.
I was asked in a recent interview what led to these numbers and my answer was simple. We stuck to our guns. When things bottomed out around March 2009, I think a lot of other fund managers probably went defensive. We really didn’t change our investment style during those rough times.
In the same interview, my colleague Erin Greenfield explained, “We weren’t afraid to look different. We weren’t paying attention to what the sell-side brokerage companies wanted us to do. We weren’t paying attention to what our buy-side competitors were doing. We were just doing our own thing.”
There are many things that can make investors queasy about a particular company. It could be a one-off event like a product recall, a regulatory investigation, management turnover or a company missing its earnings guidance, etc.
Around here, we tend to get excited by situations like these because a stock’s price can decline a great deal, often for reasons that are only temporary.
In a sense, we’re looking for great companies that have slipped on banana peels. Our ability and willingness to take advantage of market overreactions like these gives us an edge – not a queasy stomach.