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Vito Maida - Patient Capital - Globeinvestor.com


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Additional information from the Horizons AlphaPro North American Value ETF that Vito Maida manages.

http://jovian.transmissionmedia.ca/fundprofile_hap.aspx?f=HAV&c=&lang=en

 

Top Equity Holdings & Cash Weight

Data as at February 28, 2011

 

1 US BANCORP DEL COM NEW 6.30 %

2 IBM CORP COM 5.70 %

3 WELLPOINT INC 5.59 %

4 PFIZER INC COM STK USD0.05 5.43 %

5 DIAGEO PLC SPONSORED ADR NEW 5.35 %

6 KELLOGG CO COM 5.28 %

7 STRYKER CORP 5.26 %

8 LOWES COS INC COM 5.20 %

9 CINTAS CORP 4.96 %

10 GENERAL DYNAMICS CORP COM 4.92 %

 

TOTAL FOR TOP EQUITY HOLDINGS 48.8 %

CASH & EQUIVALENTS 24.2 %

 

 

Portfolio Commentary 1/31/2011

 

North American markets continued to gain during January. The S&P /TSX Composite Index™ (“TSX”), and the S&P 500® posted gains of .99%, and 2.37% respectively for the month. In Canadian dollar terms, the S&P 500® increased 3.15%% during the month due to a slight pullback in the valuation of the Canadian dollar vs. the U.S. dollar.

 

January’s positive performance reflected a continued improvement in both consumer and business confidence that the U.S. economy would continue its slow expansion translating into improved revenue and earnings for equities. Investors continued to react positively to the Federal Reserve’s quantitative easing program in the anticipation that increased liquidity would spur equity markets upward. Markets seem to be ignoring the negative consequences of the Federal Reserve’s policies, namely inflation. Euro zone consumer prices rose by 2.4% in January, well above the European Central Bank’s preferred 2% ceiling. U.K. inflation rose to 3.7% in December, almost double the Bank of England’s target. China’s December inflation rate of 4.6% has prompted authorities to increase banks’ reserve requirements, the seventh time since the beginning of 2010.

 

Increased inflation will inevitably lead to higher interest rates which will slow down economic growth. Another possible drag on growth is further government fiscal restraint as governments try to repair stretched balance sheets which resulted from the massive fiscal stimulus spending over the past two of years. State governments in the U.S. are slashing their spending and starting to consider increasing taxes as a way to repair their finances. Both actions act as a drag on economic growth. We continue to believe that we may experience some volatility as some of these issues attract investor attention over the next few months.

 

During January several of the companies in the portfolio contributed to the positive performance. IBM Corp., Stryker Corporation and General Dynamics Corporation all had gains in their share prices during the month. We also reestablished positions in Nokia Corporation, Hewlett-Packard Corporation, Wellpoint Inc., and Pfizer Inc. which we sold in December to offset substantial capital gains in the portfolio. We believe each of these companies offer substantial value.

 

We are very optimistic for the Horizons AlphaPro North American Value ETF’s long term prospects. The companies in the portfolio have strong business franchises supported by very strong balance sheets and continue to trade at prices well below their intrinsic value.

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man, I see lots of macro and timing talk from him. ;D

 

well, macro talk anyways.

 

but thats not very surprising considering his time at hamblin watsa. macro views inform alot of their investment analysis too. or else, how could they possibly justify their large holdings in long dated us treasuries whcih are near historic lows, yielding a pittance? only a strong conviction that the seesawing inflation/defation battle will be ultimately & overwhelmingly won by the deflationary forces could justify it. those munis backed by brk with a 9% tax equivalent yield look sweet tho.

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