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Randal van Eijnsbergen

Focused Growth Investing with the Comfort of

Diversification and the Advantage of Active Management

MGP Overview

The MGP is a fully managed, growth equity portfolio.  It targets stocks of all sizes that appear under-valued and have potential near-term catalysts.  The MGP enhances performance through diversification and active management.

Haywood is well known for its ability to profit from mispriced, or under-covered, investment opportunities.  The MGP gives The Manager the ability, and structure, to invest and trade for your account as he does for his own. 

MGP Investment Selection Strategy

The Manager looks for equities with:

  • Near-term growth expectations;
  • Significant developments and catalysts;
  • Proven management;
  • Increasing demand for shares, products and/or services.

To best achieve high performance & controlled risk, The Manager employs:

  • Fundamental Analysis;
  • Technical Analysis (charts;)
  • Disciplined Buy and Sell Strategies.

Active Management

The Manager, at times, capitalizes on perceived short-term fluctuations in the MGP’s holdings through shorter-term trades.  This is known as ‘trading around positions’ and can serve to lock in profits and/or reduce the breakeven point prior to an investment’s ultimate sale.  In other words, the manager often sells into price spikes or buys into dips.  Do not underestimate the impact this can have on ultimate performance.

The MGP vs. Mutual Funds

The Managed Growth Portfolio:

  • Combines our expertise in growth stocks with the stability of established blue chip stocks, thus diversifying risk and increasing growth potential.
  • Disciplined investment criteria to minimize risk, and active management to enhance returns.
  • Competitive and performance-driven fees that best align our objectives.
  • Liquidity - due to its small size.
  • Transparency - all securities are held in your account, visible on our website daily.  You do not just own shares in a fund.

Mutual Funds:

  • Most mutual funds are too big to capitalize on shorter-term trading opportunities and are therefore stuck in “buy and hold” scenarios – which begs the question: “Why the fees?”
  • Liquidity constraints cause funds to be over-diversified, or concentrated in larger companies. 
  • Funds charge higher, non-deductible fees that restrain performance.
  • Funds have poor transparency.

Performance

The MGP has outperformed the S&P TSX Composite, the S&P TSX Small Cap Index and RBC’s Best Ideas since inception in April of 2005.  Furthermore, the maximum drawdown in the second half of 2008 was comparable with that of any of the above.  The MGP has outperformed in rising markets and performed on par in falling ones.  Not bad, considering markets historically rise most of the time.

Eligibility

Participation in the MGP is available to qualified investors with a minimum investment of C$100,000, and can be applied to RSP accounts.  Contact the manager for details.

 

Cautionary Note (Disclaimer): The MGP exposes clients to securities that typically exhibit high levels of volatility, or risk. The Portfolio should only be considered by investors who are not risk averse and are familiar with the dynamics of public equity markets.While the manager will make every effort to avoid capital losses, the nature of the underlying investments make it possible that losses will occur.  Past performance is no guarantee of future results.