March Market Update
A few key developments from March:
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Concerns around the Trump administration’s tariff path have heightened market volatility, with a further sell-off following official announcements in early April.
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The NASDAQ dropped over 8% in March, with Technology and Consumer Discretionary sectors underperforming. Canadian equities were more resilient, buoyed by strength in Energy and Materials. Defensive sectors like Utilities and Healthcare gained traction.
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Fixed income saw modest declines as widening credit spreads signals growing caution, even as U.S. 10-year yields held steady.
A Letter for the CEO - The Case Against Tariffs
A Case Against Tariffs, Hussein Amad explains how rising tariffs could lead to higher consumer prices, slower economic growth, and increased global tension. Despite the uncertainty, he sees opportunity: Yorkville is actively using hedged strategies - such as selling puts on high-quality stocks - to manage downside risk while positioning for long-term upside.
Our CEO, Hussein Amad, shares his insights on these shifting dynamics in his letter, How to Thrive in a Changing World Order. He discusses the impact of U.S. policy on global markets, the growing importance of local investment, and how Yorkville is adapting its strategies - placing a strong emphasis on Canadian healthcare and long-term care investments to generate sustainable growth and returns.
TORONTO – March 24, 2025 – Yorkville Asset Management Inc. (“Yorkville”) is pleased to announce that it has received regulatory approval to complete the acquisition of 21 long-term care homes from Revera, with an expected closing date of May 1, 2025. CLICK HERE TO READ MORE
Yorkville Market Update - February 2025
Key highlights from February market trends:
- Markets dipped as tariff concerns led investors to play it safe. Defensive sectors like Healthcare and Consumer Staples did well, while big tech stocks like Tesla (-28%) and Amazon (-11%) saw sharp declines.
- Bond markets rose as investors moved to safer assets, pushing the US 10-year yield down by 33 basis points.
- The Canadian dollar fell 0.6% due to trade uncertainty, while the US dollar weakened as Trump’s policies aimed to lower its value.
- Bitcoin dropped 17.5% in a market correction, while gold gained over 2% as investors sought stability.
Yorkville Market Update - January 2025
Key highlights from January’s market trends:
- Equity markets saw positive gains, with Communication Services and Healthcare leading while IT lagged due to concerns over China’s new AI model, DeepSeek.
- The US Federal Reserve held rates steady, while the Bank of Canada cut by 25 basis points, adding pressure to the Canadian dollar.
- The Trump administration’s announcement of tariffs on Canada, Mexico, and China caused initial market fluctuations, though a one-month delay has eased concerns.
- Bitcoin surged again, benefiting from optimism around new US crypto policies.
Press Release - Yorkville Health Care Fund Added to Wellington-Altus Private Wealth Platform
February 12, 2025 – Yorkville Asset Management Inc. (“Yorkville”) is pleased to announce that the Yorkville Health Care Fund (the “Fund”) has been added to Wellington-Altus’ Private Wealth Platform (“the Wellington-Altus Platform”). READ MORE
Insights - Trump 2.0
An article written by Derek Brenzil discussing the potential market impacts following Donald Trump’s inauguration in 2025.
Some key highlights:
- Tariffs and Trade Policy: The possibility of significant tariffs being implemented raises concerns about inflation and economic instability.
- Inflation Concerns: There is a risk of a second wave of inflation, which could affect interest rates and market performance.
- Energy Sector: The focus on US energy independence may lead to changes in oil prices and production dynamics
- Defence Spending: Increased NATO spending could benefit the defence sector.
- Market Volatility: We anticipate continued market volatility, making diversified and prudent investment strategies essential.
Accelerating Growth - Health Care Fund Update
December Market Update
After the strong initial rally following Donald Trump's successful US Presidential race, we saw markets take a slight breather in the final month of the year. Nonetheless, major indices ended the year in positive territory across the board and the macroeconomic backdrop is broadly constructive for 2025. While we remain cautiously optimistic for risk assets over the next 12 months, we continue to closely monitor new developments as we have experienced two very strong year of equity market returns and valuations are somewhat elevated compared to historical levels.
More...
The Surprising Trump Trade
November Market Update
Markets rallied strongly in November following Donald Trump's re-election, driven by optimism about his business-friendly policies, despite uncertainty about which campaign promises will materialize.
Press Release - Yorkville Health Care Fund and Southbridge Health Care Announce the Acquisition of 21 Long-Term Care Homes from Revera
Yorkville Health Care Fund, alongside Southbridge Health Care, has acquired 21 long-term care homes from Revera, marking one of the largest transactions in Ontario's history. The expanded portfolio now includes 57 homes with a resident capacity of approximately 6,500, positioning Southbridge as a leading owner-operator in Canada.
Key highlights:
- Portfolio Growth: The acquisition strengthens Yorkville’s presence, enhancing capacity, density, and land utilization.
- Modernization: Yorkville has raised $275 million in equity since 2020, modernizing 70% of its Class C homes to meet updated long-term care standards.
- Development Initiatives: Southbridge is advancing with eight new homes in development and a commitment to improving senior living conditions.
The transaction, pending Ministry of Long-Term Care approval, was facilitated by Yorkville Asset Management and Canaccord Genuity Corp.
October Market Update
October saw a pause in the strong rally across equities as investors shifted focus to key November events: the U.S. Presidential Election and the Federal Reserve's interest rate decision.
Despite the lull in markets, the macroeconomic environment remained robust, driven by:
- Positive economic indicators: A strong U.S. jobs report early in the month, better-than-expected Chinese GDP growth, and surprising U.S. retail sales data.
- Cooling inflation: Both Canadian and UK inflation figures came in below estimates, alleviating some concerns.
- Corporate strength: U.S. Q3 earnings showed resilience, with S&P 500 companies reporting sales growth of +5.1% and earnings growth of +7.8%.
This combination of strong fundamentals and corporate performance created a supportive backdrop for risk assets going forward.
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