client login


Member of the
Portfolio Management
Association of Canada

Business news network


Third Quarter Letter 2018


Canadian Equity

For the third quarter of 2018, the Lester Canadian Equity Fund increased by +1.1% net of fees and expenses, versus a drop of -0.6% for the TSX Composite Total Return including dividends. Our outperformance was due to our low weightings in the Energy and Materials sector, a high cash balance, and strong upward moves by several of our small cap holdings. The TSX Energy and Materials sectors were down -8.4% and -13.2% respectively, a sharp reversal from the previous strong quarter. Year-to-date, we are down -1.3% versus +1.4% for the TSX due to having lagged on the upside in the second quarter. Since inception in July 2006, our Canadian equity strategy has produced a cumulative net return of +219%, more than double the +97% for the TSX. This represents an annual compound return of +9.9% per year over 12 years, net of all fees and expenses, versus +5.7% for the TSX Total Return including dividends. Measured in terms of “value added” active net returns, we have generated +4.2% per year over and above the market’s return during this period.