As a portfolio manager, I make a point of regularly taking an inventory of my habits and decisions. The goal is to try to determine which are making me better and which are holding me back.
In taking the time to perform a “look back analysis,” I can examine both my funds and myself. It helps me determine how I have adapted, as the world has evolved. This can range from what sectors I own versus a year ago, to re-examining my biggest market concerns now versus then, and anything in between.
Across our funds at Cambridge, we have been conservatively positioned for some time. In the short term, holding cash has detracted from clients’ potential returns. So, I look back and ask, would or should I have done the year differently? If in a year the stock market is up 20% and 20x EPS, and we only deliver half of that to our clients, how will they feel?
My biggest fear is that of becoming complacent. Of committing to a belief, or view, when the evidence suggests I should be changing course. This is where the look back is helpful. Am I finding value in different areas than a year ago or three years ago? It is easy to keep doing the same thing, but rarely is the easy decision the right one.
This mentality of constant growth and striving for progress over perfection is something I have come to value dearly, and it’s a skill that you never master. You just keep trying to get better and more consistent in the pursuit.
From my seat, I see complacency in the markets at all-time highs (at least in my 10-year tenure to date), and it worries us a lot. The question we ask ourselves often at Cambridge is:
“What can I do to continually improve, so that I stay ahead of the pack in an ever-changing world?”
At Cambridge we know that complacency kills and can cost clients dearly. That is why the line “Always be hungry; complacency kills” is one of our standards of conduct and is printed on the wall just inside the main entryway of our office.
Thank you for your continued support,
This commentary is published by CI Investments Inc. It is provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in this commentary is accurate at the time of publication. However, CI Investments Inc. cannot guarantee its accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. This commentary may contain forward-looking statements about the fund, its future performance, strategies or prospects, and possible future fund action. These statements reflect the portfolio managers’ current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Cambridge Global Asset Management is a division of CI Investments Inc. Certain funds associated with Cambridge Global Asset Management are sub-advised by CI Global Investments Inc., a firm registered with the U.S. Securities and Exchange Commission and an affiliate of CI Investments Inc. Certain portfolio managers of CI Global Investments Inc. are associated with Cambridge Global Asset Management.