For the 12 months ending August 30 2021, Bridgeport’s Small and Mid-Cap Equity Fund has generated a net rate of return over 34%. While contributions to this performance have been broad based, one investment in particular stands out: Trisura Group (Ticker: TSU.TO). Trisura’s shares have generated a 107% return on investment since our original purchase in the summer of 2020 and the position is now our second largest holding in the Small & Mid-Cap Equity Fund. Trisura is a specialty insurance company with operations in Canada and the US, which was spun out of Brookfield Asset Management (another Bridgeport investment) [...]
Few people outside investing circles seem to have noticed the death of David Swensen this past May. Unlike Warren Buffet, Swenson was not a widely known name among the general public, despite having made a significant contribution to the world of institutional investing. From 1985 until his recent death, Swensen had been the Chief Investment Officer for Yale University’s endowment fund, which today is valued at approximately US $31 billion. His major innovation was inventing the Endowment Model style of investing. The Model emphasizes that investment portfolios should include a wide variety of assets classes beyond traditional stocks and bonds, [...]
“What is your most important financial asset?” Many will respond with “My home” or “My savings”. In many cases however, an individual’s most important financial asset is really their ability to earn an income over a 40 to 50-year career. And, it is an asset well worth protecting. Whereas life insurance is designed to protect others from financial hardship when the insured person passes, disability insurance is designed to protect the insured person and their family if their ability to earn an income ceases as a result of accident or illness. We find it interesting that we often consult with [...]
Investment funds with a focus on Environmental, Social and Governance (ESG) concerns have become increasingly popular over the past few years as shareholders have begun to pay greater attention to the impact their investments have on society as a whole. It is perfectly understandable, and indeed commendable, that investors seek to invest in companies that try to have a positive impact on the world. At the same time, the idea that companies which are ESG-compliant also represent better investments and outperform broader stock market indexes has also begun to gain traction. The basic pitch is that companies and their shareholders [...]
Bridgeport’s Alternative Income Fund: An Attractive Investment Opportunity In A Low Interest Rate World
It’s no secret that those who have traditionally looked to invest money in bank savings accounts, Guaranteed Investment Certificates (GICs) and high-quality government and corporate bonds face a difficult environment with interest rates at such low levels.
Investment in private equity has grown nearly eight-fold since 2000 and now represents a significant portion of global capital market activity. But what is private equity?
While the COVID-19 pandemic has caused significant economic disruption and led to increased stock market volatility, it has also created more opportunities for fundamental bottom-up stock pickers like Bridgeport. This is because the initial decline in the stock market in the first quarter of 2020 and its subsequent recovery has been particularly uneven with some stocks increasing significantly in price, while other less prominent companies lag.
After registering the swiftest 35% decline on record, the S&P 500 — a stock market index that measures the stock performance of the 500 largest U.S. publicly traded companies — has rallied more than 25% and now sits only about 15% from its most recent all-time high. Many are wondering how the market could be performing so well in the face of COVID-19 and the resulting economic shutdown. There are a few points to consider on this matter:
As the year end approaches, Canadians who celebrated their 71st during the year are likely in discussion with their advisor or custodian about the mandatory conversion of their Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF). The exercise can be an intimidating one for those whose talents and interests lie outside the financial arena, but the event is really quite straightforward.
One of the most common questions we receive from clients relates to whether they should contribute to a spousal RRSP, especially in light of the new pension income splitting rules introduced by the Canada Revenue Agency (CRA) a few years ago. The new rules allow spouses to share up to 50% of eligible retirement income — RRIF, pension or annuity income — with each other. Couples get to choose whether to split the income and, if so, how much to split, when their taxes are filed each year. Our answer to the spousal RRSP question, like most other financial planning questions, is: it depends!