A Message to Our Clients

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We wanted to provide an update on how we are adapting to the rapidly changing environment. These are challenging times with a tremendous amount of uncertainty, but also different from past experiences in that it is impacting us all personally in our day-to-day lives. We know that many of you are concerned not only about your health, but also about your portfolios during this period of market volatility.

The Cambridge team wants you to know that we are here to support you through this time of uncertainty. We are closely monitoring the situation and have taken the necessary steps to protect the health and safety of our team, while remaining diligently focused on executing our investment process to deliver on our goal of investment excellence.

As part of that process, we are reviewing each investment thesis and stress testing the businesses we own under the new reality. The environment has changed, and we need to adapt our assumptions to meet these changes. As part of our process, we have been in regular contact with management teams. This is a very fluid situation and we want to hear from management in as close to real time as possible. This helps us better understand the direct impact of a dramatic slowdown in activity on their business and the steps they’re taking in response. These discussions help inform our financial models where we are stress testing the businesses under varying degrees of punitive scenarios. Understanding a businesses’ operating leverage, financial leverage and debt maturity profiles are critically important. Cash flow has always been at the centre of our analysis and that is even more vital in today’s environment. We want to ensure our businesses have the capacity to weather the storm and participate in the eventual recovery.

These are truly unprecedented times and we take our job to protect and grow our clients’ capital seriously.  Although no one has seen anything quite like this before, markets do go through cycles and this is no different. We appreciate that recent market activity may create investor uneasiness. The entire Cambridge team is doing everything we can to support everyone’s investment portfolios, and we continue to stay true to our disciplined investment process.

We appreciate your support and confidence in Cambridge as we work through this together.

Should you have any questions related to your portfolio, please do not hesitate to reach out.

Geoff Scott
Institutional Portfolio Manager



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The author and/or a member of their immediate family may hold specific holdings/securities discussed in this document. Any opinion or information provided are solely those of the author and does not constitute investment advice or an endorsement or recommendation of any entity or security discussed or provided by CI Investments Inc.

This commentary is published by CI Investments Inc. The contents of this piece are intended for informational purposes only and not to be used or construed as an endorsement or recommendation of any entity or security discussed. The information should not be construed as investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. Some conditions apply.

Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Investments Inc. has taken reasonable steps to ensure their accuracy.

Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Investments Inc. and the portfolio manager believe to be reasonable assumptions, neither CI Investments Inc. nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.

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Published April 6, 2020

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