Greg Dean's blog
Well, so much for a quiet summer! Throughout the last few months we’ve remained highly focused on making the best long-term investment decisions for our clients amid ever-growing risk appetites and return expectations. In order to support that, we’ve also been extremely busy developing our hiring plans.
The purpose of this letter is to provide you with an update on first-half results across the Canadian and Global small-cap portfolios. But first, I’d like to start by discussing an important upcoming anniversary that serves to highlight two key things: the benefit of taking a long-term approach when investing; and the importance of well-reasoned decision-making.
I’ve been fortunate over the years to meet many of our clients – both advisor partners, and the families and individuals who own our funds directly. Collecting feedback and thanking those who trust us with their hard-earned savings is one of my favourite parts of the job. Often on these visits I’m asked, “So, which fund should I buy?” This is usually met with a blank stare by myself or a member of my team because the honest answer is, “it depends”. That’s rarely the answer people expect, so I want to provide some context and draw parallels to a different industry in order to illustrate why I believe the investment professionals at Cambridge are not always best positioned to answer that question.
2017 was a very transformative year for investor psychology, in my opinion. The lingering fears of the Great Recession finally began to fade, and for the first time I would characterize the behaviour of market participants and the average investor as “risk-seeking” and no longer “risk-avoiding.”
I was interviewed by CI's Monthly Review on the Cambridge Small & Mid-Cap Equity Suite (formerly known as the Growth Suite) for their August issue. There simply was not enough room to include the entire interview in the print version, so here is the full text, complete with additional examples and context.