Hudson Portfolio Update

Good day,

The Hudson Total Mandate Portfolio is one of our two portfolio models with Hudson generally available only to accredited investors, or those who qualify for certain exemptions. I’ve attached below comments from one of our Portfolio Managers, Matt Levy.

Have a great weekend!


Hudson ended last week with a Net Asset Value of $10.3065 up from $9.794 at the end of June, an increase of 5.1%.

As I write, only 3 equity positions are showing a loss while 19 positions are showing as a gain. EWU iShares MSCI UK Index (down 6.95%), EWG iShares MSCI Germany ETF (down 0.81%), and Morgan Stanley (down 4.29%) are the laggards in the portfolio overall. The European landscape has been challenging, due to several economic events as well as a strong decline in some European currencies. Most notably, the UK’s GBP post-Brexit move:











Morgan Stanley, on the other hand, has lagged the overall market along with the financials sector. However, our decision to keep financials in the portfolio has paid off this quarter. Morgan Stanley is up 37% from its Brexit low on June 27, on the back of continued strength of the US economy and the potential for interest rate increases. In addition, fears over the affect of Brexit on the world economy seem to have been overblown initially. MS also has a current yield of >2.5%. Chart below:











Enbridge is up on news this week of a potential $59 billion acquisition of Spectra Energy. Despite being an all-equity offering, we see this as a positive for Enbridge as this will diversify their asset base and growth platform going forward. National Bank Financial Markets upgraded Enbridge to an Outperform rating (from Neutral) with a price target of $63. Enbridge is up over 21% since our purchases on Jan 22 and Feb 9, YTD chart below:













Matthew Levy BSc, CIM, CFA
Portfolio Manager, Branch Manager

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Daniel Popescu CFP, CIM, FMA, FCSI
President & CEO

MNP Tower, 3100-1021 West Hastings St.
Vancouver, BC V6E 0C3
T: 604-558-6830/1(877) 588-6822
F: 604-558-6823


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