Keep connected
Our investment management team is made up of engaged thought leaders. Get their latest commentary and stay informed of their frequent media interviews, all delivered to your inbox.
The fourth quarter of 2014 proved to be the most difficult quarter of the year with many things conspiring together, creating a downdraft in much of the resource sectors. The end result was a loss of 1.5% in the S&P/TSX with resources stocks leading the way (Materials down 7.6% and Energy off by 16.6%) as OPEC came out in November with a decision not to cut its oil production sending oil prices considerably lower. The impact on the S&P/TSX Small Cap Index was even more pronounced with a -8.7% return for the quarter, and an annual return of -2.37%. Below is a chart highlighting the returns for the quarter and year for the Canadian Indices and the JZA Special Equity Fund.
As mentioned above the worst performing sectors in the quarter and the year were materials and energy, with the underperformance coming after July. Given the portfolios positioning in these two groups, the fund underperformed its benchmark.
Below are the sector weightings of the portfolio relative to its benchmark:
The three worst performing stocks for the quarter included Tamarack Valley Energy, Copper Mountain Mining and Mawson West Ltd. These three positions had a -2.12% contribution to the portfolios return.