2019 has been a successful year for investors by all accounts. As of the end of November, the Toronto Stock Exchange is up 22.28%, S&P 500 Index up 27.63% and Financial Times Stock Exchange Canada Universe Overall Bond Index is up 7.79%. This is an arbitrary end point, as there was tremendous trepidation at the end of 2018, where we saw markets correct by more than 15%1 in December 2018, which gave Cambridge a great opportunity to put capital to work for clients. For Cambridge, 2019 represented a year of growth and evolution towards our goal of adding value to clients through investment excellence and improved client service.
Come February 2020, I’ll be celebrating my nine-year anniversary at Cambridge Global Asset Management (“Cambridge”). During this time, I’ve exclusively covered Canadian and global small/mid-capitalization stocks, and I believe I’ve done my best to deliver on my promise of achieving investment excellence for our clients. A few weeks ago, I held a call with advisors across Canada, and we had a good conversation. I felt that a short recap of part of that discussion was worthwhile repeating here.
Over the past six months or so, energy has become a much larger weight in our Canadian Equity portfolios. Using charts from a data visualization software that we use at Cambridge Global Asset Management (“Cambridge”), I want to describe what has attracted us to find good value in the energy sector and how and why we have built our exposure in this sector.