CRESCENT SCHOOL INVESTMENT TEAM
The Update The Update is a bi-weekly publication (once every two weeks) summarizing the performance of the portfolio of the Crescent School Investment Team (CSIT). The Update measures the portfolio against two specially-designed benchmarks - Crescent TSX 60 Benchmark (BM), taking into account the performance of the TSX 60 as a whole and a Crescent Alternative Benchmark (XIU) composed of iShares S&P/TSX 60 Index Funds in place of our holdings. Additionally, it will include commentary from certain members of the Executive Team regarding the state of the portfolio, the markets and our outlook on the future. For any questions regarding The Update, please do not hesitate to contact any member of the Executive Team.
Executive Team: Jordan Abramsky, Chief Executive Officer • jordanabramsky@crescentschool.org Ryan Boyd, Chief Operating Officer • ryanboyd@crescentschool.org Ronald Chow, Chief Marketing and Strategy Officer • ronaldchow@crescentschool.org Jake Erdman, Portfolio Manager (Financial Sector) • jakeerdman@crescentschool.org Josh Limpert, Portfolio Manager (Energy Sector) • joshlimpert@crescentschool.org Ryley Mehta, Portfolio Manager (Industrial Sector) • ryleymehta@crescentschool.org Christian Metivier, Portfolio Manager (Diversified Sector) • christianmetivier@crescentschool.org Mr. Gavin Muranaka • gmuranaka@crescentschool.org Mr. Michael Stephens • mstephens@crescentschool.org Ms. Mita Bhattacharrya • mbhattacharyya@crescentschool.org
Current Holdings Stock Name
Purchase Price
# of Shares
Total Cost
CASH BALANCE
Current Price
Total Market Value $22,482.11
$ Change
% Change
-$250.80
-1.10%
TOTAL
$22,732.91
$22,482.11
Recent Activity On January 20, 2016, we sold our 30 shares of Magna International (MG) at $49.15 per share, realizing 14.5% loss on the investment (purchase price - $57.51 per share). The sale was executed at market open, with MG being sold at a pleasantly higher price than our commitment to $48.75 per share. It is with great satisfaction that we stand by our decision to sell with the intention sever further losses – MG did in fact tumble 3% in the hours following our sale. - Ronald Chow, Chief Marketing and Strategy Officer CRESCENT SCHOOL INVESTMENT TEAM
JANUARY 24, 2016
CRESCENT SCHOOL INVESTMENT TEAM
The Update Portfolio Performance % Change – Past Week % Change – Past Month % Change – Past Three Months % Change – Since Inception
CSIT Portfolio *Blue Line* +0.09% -1.11% -1.10% -1.10%
Crescent TSX 60 Benchmark *Red Line* +3.20% -4.85% -10.44% -4.59%
Crescent Alternative Benchmark *Orange Line* -0.07% -0.77% -0.73% -0.73%
Comments: Global stock markets rebounded at the end of last week, following the attempts of reassurance by many policymakers (BoC, ECB) that the world was not on the brink of another financial crisis. With that said, the 2016 year has certainly had a dramatic start – trillions of dollars were wiped off the value of global shares and oil continued to tumble. With that said, we have exited from our position in MG after sustaining 14.5% losses, with the decision to sever potentially greater losses. MG may not have been the best pick, as noted by the poorer performance of our portfolio than XIU. - Ronald Chow, Chief Marketing and Strategy Officer The outlook for the Canadian economy is fairly dim. The Bank of Canada cut growth forecast for 2016 from 2% to 1.4%, citing concerns about low oil prices and economic uncertainty. Oil prices likely will rise as many OPEC nations’ budgets cannot handle prices this low. However, this is far from certain, as supply still continues to outpace demand, and the addition of Iranian oil to the market only exacerbates this issue. The Liberals’ proposed stimulus measures will help to kickstart the economy, which will be especially important if oil prices stay low. The Investment Team is currently investigating into investments in Toronto Dominion (TD), Brookfield Asset Management (BAM.A), iShares Short Term Bond Fund (XSB), Gildan (GIL) and Crescent Point Energy (CPG). - Ryan Boyd, Chief Operating Officer CRESCENT SCHOOL INVESTMENT TEAM
JANUARY 24, 2016