theglobeandmail.com
Long-Term Investment Strategy Yields Strong Returns for Portfolio Manager
Jason Del Vicario, a portfolio manager at Hillside Wealth Management, reveals his long-term investment strategy focused on high-quality, founder-led companies; his fund has achieved substantial returns since its inception in 2014, with three core holdings making up one-third of his portfolio; he recently trimmed holdings in Heico Corp due to high valuation.
- What are the significant risks associated with Del Vicario's portfolio holdings, and how does he manage these risks?
- Del Vicario's approach focuses on high-quality, founder-led companies with consistent high returns on invested capital. This strategy has yielded strong returns, exemplified by three core holdings—Constellation Software, Meta Platforms, and Alimentation Couche-Tard—that represent one-third of his equity portfolio and have been held since 2014.
- What are the key factors driving the success of Del Vicario's long-term investment strategy, and what specific impacts have these factors produced?
- Jason Del Vicario, managing $275 million in assets, employs a long-term stock-picking strategy, holding some equities for over 11 years. His firm's all-equity fund boasts impressive returns: 9 percent this year, 18.9 percent in one year, and annualized returns of 22.5 percent and 15.9 percent over three and five years, respectively.
- What are the potential future implications of Del Vicario's investment strategy given the current market conditions and long-term economic forecasts?
- While acknowledging the risks associated with high valuations (like Constellation Software), Del Vicario emphasizes a long-term outlook. His recent sale of a portion of Heico Corp. highlights a willingness to trim positions when valuations become stretched, showcasing a disciplined approach to risk management.
Cognitive Concepts
Framing Bias
The article's framing is overwhelmingly positive, emphasizing the impressive returns of Del Vicario's fund and highlighting his successful long-term investment strategy. The headline (not provided, but inferred from the context) likely emphasizes the high returns. The article focuses on Del Vicario's positive choices and successful investments, while downplaying potential drawbacks or risks. This positive framing could lead readers to overestimate the ease and certainty of achieving similar returns.
Language Bias
The language used is largely neutral, but certain phrases lean towards positive framing. For example, describing the returns as "impressive" and the acquisitions as "fabulous" introduces subjective judgment. While these terms aren't overtly loaded, they contribute to the overall positive slant of the article. More neutral alternatives would include 'substantial' or 'significant' instead of 'impressive,' and 'successful' instead of 'fabulous.'
Bias by Omission
The article focuses heavily on the successes of Del Vicario's investment strategy and the high returns of his fund. However, it omits discussion of potential downsides or risks associated with his concentrated approach, such as vulnerability to significant losses if one or more of his top holdings underperform. There is also no mention of the fees associated with the fund, only that the returns are "net of fees." More detail on the fee structure would provide a more complete picture of the fund's performance. While acknowledging space constraints is valid, the omission of these key pieces of information limits the reader's ability to make a fully informed assessment.
False Dichotomy
The article presents a somewhat simplistic view of long-term investing, implying that a buy-and-hold strategy with a focus on high-quality companies is always successful. It doesn't fully explore alternative investment strategies or acknowledge that even high-quality companies can underperform in certain market conditions. The framing suggests that long-term investing is a straightforward path to success, neglecting the complexities and potential risks involved.
Sustainable Development Goals
The article highlights a long-term investment strategy that has yielded significant returns (9% this year, 18.9% in one year, 22.5% annualized over three years, and 15.9% annualized over five years). This demonstrates the potential for sustainable economic growth and the creation of wealth, aligning with SDG 8's goals of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The focus on high-quality, founder-led companies suggests a commitment to responsible business practices that contribute to economic stability and job creation.