Pembroke’s Virtual Lunch Series: Managing Portfolios During Uncertain Times

Pembroke's Virtual Lunch Series

Virtual Brunch – Pembroke’s Perspective on Investing in Growth and Disruption

On Thursday, July 23rd, Matthew Beckerleg, Partner and Portfolio Manager, and Andrew Garschagen, Partner and Portfolio Manager, provided an update on Pembroke’s Perspective on Investing in Growth and Disruption.

Key Takeaways

1. The current and expected economic backdrop is favorable for growth stocks;
2. While technology product disruption often captures popular attention, disruption takes multiple forms and is found in a variety of industries beyond technology;
3. Pembroke has a long and successful history investing in disruptive business across many industries;
4. The increasingly short-term nature of markets advantages long-term investors like Pembroke, who have a demonstrated competency analyzing multi-year opportunities.

To learn more, please view the recording here:

Virtual Lunch – View from the West Coast

On Wednesday, June 17th, Stephen Hui, CFA, Partner and Portfolio Manager provided an update on the View from the West Coast.

Key Takeaways

1. Uncertainty surrounding the pandemic is expected to persist, and investors must look beyond short-term market gyrations to businesses multiple years out;
2. Strong bottom-up homework on our holdings has paid dividends during the indiscriminate sell off in March;
3. The Pembroke portfolios are positioned for a multitude of different outcomes by backing flexible business models, solid balance sheets and talented management teams.

To learn more, please view the recording here:

Virtual Brunch – Canadian and US Market Updates

On Wednesday, June 3rd, Jeff Tory, Chairman, Partner and Portfolio Manager and Andrew Garschagen,Partner and Portfolio Manager provided an update on the Canadian and US markets.

Key Takeaways

1. As we are in a low growth environment, this is an attractive time to invest in more rapidly growing companies;
2. Predicting short term market moves is virtually impossible which is why we continue to recommend dollar cost averaging;
3. With interest rates at very low levels, stock market valuations are more reasonable than the appear at first glance.

To learn more, please view the recording here:

Virtual Lunch – International Growth Equities with Simon Fennell

On Wednesday, May 20th, from his office in London, UK, Simon Fennell, Partner and co-portfolio Manager at William Blair LLC shared his perspectives on international growth equities and the Pembroke International Growth Fund.

Key Takeaways

1. The Covid-19 virus has accelerated many trends that had previously existed in markets, economies and in society as well;
2. In an era of deglobalization, there are still excellent opportunities in high quality companies;
3. With massive government intervention in economies around the world, there is a blurring between the state and the private sector.

To learn more, please view the recording here:

Virtual Lunch – The Pembroke Global Balanced Fund

On Wednesday, May 13th, David Whittall, Partner and Chief Risk Officer, introduced the Pembroke Global Balanced Fund.Matthew Beckerleg, Partner and Portfolio Manager discussed the equity component of the fund and Richard Usher-Jones, Portfolio Manager at Canso Investment Counsel shared his perspectives on the fixed income component of the Pembroke Global Balanced Fund.

Key Takeaways

1. The Pembroke Global Balanced Fund is diversified across multiple asset classes to provide broad exposure, reduced risk, and more stable returns;
2. The fund uses active management where it makes sense to add value and passive management to reduce fees;
3. The fund is re-balanced automatically to remove human emotion from weighting decisions and is designed to be a key building block in most clients’ portfolios.

To learn more, please view the recording here:

 

Virtual Lunch – US Market Strategies with Jim Furey

On Wednesday, May 6th, investment strategist  James Furey, CFA Managing Partner at Furey Research Partners shared his perspectives on the economy and the drivers for Stock market performance in the coming years.

Key Takeaways

  1. Growth stocks are well positioned to maintain their recent leadership over value stocks given low interest rates, poor demographic trends, and challenged global economies;
  2. Sectors with asset light businesses models operating in secular growth markets, particularly technology and healthcare, are best positioned to prosper in the years ahead;
  3. The COVID-19 pandemic resulted in pressure on small-cap stocks, but history indicates that coming out of most bear markets, small caps outperform their large-cap brethren.

To learn more, please view the recording here:

 

 

 

Virtual Lunch – Pembroke Concentrated Fund – Q1 Update Call

On Wednesday, April 29th, Andrew Garschagen, Partner, Director and Portfolio Manager of Pembroke, discussed Pembroke’s concentrated fund strategy and provided a Q1 update on the Fund

Key Takeaways

  1. The Fund selects 12 to 18, high-quality businesses with long term secular growth opportunities from Pembroke’s existing portfolios, with each stock having 100% upside potential over the next 3-4 years;
  2. To address the risks associated with concentration, it invests in conservatively financed companies and strives to engineer out binary risk from the portfolio while adhering to a strict sell discipline;
  3. The Pembroke Concentrated Fund was launched on February 1st, 2018 and to date, it has achieved its objective of beating its benchmark by 400 – 600 bps annually.

To learn more, please view the recording here:

Virtual Lunch with a focus on Life After COVID-19

On Wednesday, April 23rd, Nicolas Chevalier, Partner, Director and Portfolio Manager of Pembroke, shared a framework for analyzing the pandemic’s evolution and its related impact on the economy as well as the issues around government debts and business involvement.

Learn more about the current and future environment, and various trends affected by the pandemic across different industries..

Key Takeaways

  1. We will be living in a part lock-in, part lock-out world until a virus is readily available;
  2. Pembroke is parsing between temporary changes versus those where the pandemic is accelerating long term secular changes across all sectors;
  3. Historically, Small Cap stocks outperform coming out of bear markets and recessions.

To learn more, please view the recording here:

Wednesday, April 24th, 2020

Virtual Lunch with a focus on Behavioural Finance

On Wednesday, April 15th, Jeff Tory, Chairman and Portfolio Manager of Pembroke, discussed how, why and to what extent our “humanness” affects decision making pertaining to financial issues and how this can impact the decisions we make during uncertain times.

Key Takeaways

  1. Markets have rallied strongly since March 18th, but continued volatility is expected;
  2. Common biases include loss aversion, confirmation bias, framing errors, group-think, overconfidence and regret;
  3. Focus on the overlap between things that matter and things that you can control.

To learn more, please view the recording here:

Wednesday, April 15th, 2020

Virtual Lunch with a focus on the Governments Response

One of the events that Pembroke had to cancel due to the COVID-19 pandemic was a client lunch with Pierre Fitzgibbon, Quebec Minister of Economy and Innovation. 

Nicolas Chevalier, Portfolio Manager and Partner at Pembroke spoke to the Minister on the phone and, with his permission, we are pleased to present a summary of that conversation. To learn more, please click here

Monday, April 6th, 2020

Virtual Lunch with a focus on International Equities

On Monday, March 30th, Andy Flynn, CFA, Portfolio Manager at William Blair LLC recapped what had taken place during the past month and how the GBC International Growth Fund was managed during a period of heightened uncertainty.

Key Takeaways

  1. William Blair remains close to their companies and has been actively managing the portfolio;
  2. They currently estimate that 10-20% of the companies they hold will emerge from this period in a stronger position;
  3. They expect a trend towards local manufacturing but caution that it is too early to predict the long term impact of the pandemic.

To learn more, please listen to the replay here:

Monday, March 30th, 2020

Virtual Lunch with a focus on Fixed Income

On Friday, March 27th, Richard Usher-Jones, Portfolio Manager at Canso Investment Counsel and Ian Aitken, Managing Partner of Pembroke, hosted a virtual client luncheon to discuss the active management of fixed income portfolios during times of crisis.

Key Takeaways

  1. Canso is using market volatility to improve the characteristics of the portfolio;
  2. Canso relies on its own assessment of each bond in the portfolio rather than relying on the rating agencies;
  3. Active management of fixed income portfolios is even more important during periods of great uncertainty;

To learn more, please listen to the replay here:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Virtual Lunch Text Summary

Friday, March 27th, 2020

Virtual Lunch with a focus on Equities

On Tuesday, March 24th, Jeff Tory, Ian Aitken and Matthew Beckerleg, hosted a virtual client luncheon discussing Pembroke’s approach to managing portfolios during uncertain times and how we are positioning the portfolios for the eventual recovery of the economy and the markets.

Key Takeaways

  1. Pembroke is deemed an essential service and remains open for business;
  2. The tremendous volatility in the financial markets that we are witnessing is caused by the high degree of uncertainty;
  3. In times of crisis, stocks get very cheap and investor despair. Historically, this has created opportunities for Pembroke and its clients.

To learn more, please listen to the replay here:

Virtual Lunch Text Summary

Tuesday, March 24th, 2020