May 2018 Commentary

Capital markets regained their footing during the month of May with the first part of the month being dominated by the various narratives around strengthening oil prices while earnings season played out in Canada. Our funds posted a slightly negative month, our first of 2018, as a couple of long positions reported earnings that proved underwhelming to the street. More broadly speaking, the return of low volatility and strength in momentum names characterized the back half of the month, with the VIX (volatility) index continuing its downtrend and the large and mega-cap technology names regaining a bid, rendering the tumult of the first quarter a distant memory. We continue to believe that our acute focus on free cash generation is the single most important factor upon which to focus when investing in equities, and as a result we should continue to outperform throughout both the market and business cycles.

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Emma Querengesser