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Jan 21, 2015 9:05 AM Heathbridge Capital Management
“Pleasure is none, if not diversified.”
John Donne, Elegy XVIII
John Donne was undoubtedly talking about something else. On the other hand, pleasure was none for portfolios that were not diversified in the last half of 2014.
In all periods ended December 31, 2014, Heathbridge portfolios experienced returns that, in general, were better than 95 percent of our measurable competitors. In the recent time frames, this was not because of magical stock picking on our part, but rather because our portfolio diversification strategies minimized the impact of the commodity price collapses that undermined a huge portion of the Canadian stock market. The industry tends to manage with reference to index weightings, and many managers were caught with investments in oil and gas and metal stocks, that, in retrospect, proved to be too heavy. Our more balanced portfolios pulled their loads well.