Yorkville Asset Management

We favour U.S. equities but still have a very negative view on the U.S. economy and we feel that this economic crisis will take longer to resolve than what policymakers are hoping for. We are looking to names that are fundamentally sound and have a better opportunity for outperforming during this cycle. We have also added to names that were already in our portfolio, some of which include Bank of America and Las Vegas Sands. This is consistent with our Shunned Stocks strategy.

Concerns over the possibility of Greece defaulting will continue to cast its shadow near term and volatility will rise and fall based on perceived outcomes. We tactically added to some current equity positions as markets sold off, however, we are only adding to conservative names which pay us dividends as we wade through the markets and are trading below their long-term historical valuations.

The US Unemployment Rate peaked in 2009 at 10.1% and has since dropped to 8.5%. This is highlighted by many analysts as a sign of recovery. And it has been a sign of recovery in every business cycle in post-WW2 history…but not this time. The Participation Rate is the % of the population that is either working or looking for work. As the economy recovers, the Participation rate rises as people are encouraged to enter the workforce to find jobs. The Participation Rate peaked in 2000 at 65%. In this cycle it has fallen to 58% and has not moved higher as the Unemployment Rate has dropped. This has never happened in post-WW2 history. What is happening is workers are giving up looking for work in a dismal labour market and are no longer being counted as part of the labour force in the official employment survey. If the participation rate was assumed to have remained constant at 63% (average between 1988-2008) the Unemployment Rate would be closer to 12%, unchanged from 2009. In addition, those jobs that are being created are typically lower pay work with limited benefits.

Our fixed income portfolios continue to be underweight credit and overweight duration with a US and Canadian dollar bias relative to the global benchmark. Our equity portfolios are positioned in a similar defensive fashion with material underweighted toward cyclical sectors such as industrials, energy, and materials, and material overweights in cash and consumer discretionary and staples, with a US bias relative to Canada.

Ruben is the Portfolio Manager for Yorkville's equity portfolios and a member of the Investment Committee.  He brings over fifteen years of investment and banking experience at major Canadian banks and financial institutions.  Most recently Ruben was the Investment Strategist at a medium sized hedge fund in Toronto, and prior to that role had worked for a leading wealth management firm advising high net worth families on portfolio investment strategies.  

Ruben is a graduate of Schulich School of Business at York University with a major in Finance.  He holds the Chartered Investment Manager (CIM) designation and has successfully completed his Derivatives Fundamentals and Options Licensing course.  

Hussein Amad is co-founder of Yorkville Asset Management and serves as President and CEO. Hussein brings over 20 years of investment and banking experience in senior positions at major Canadian and international banks. Prior to joining Yorkville, Hussein was the Chief Investment Strategist and member of the Board of Directors at UBS Investment Management Inc. Hussein has also served as National Director of the Institutional Portfolio Group at Scotia Cassels Investment Counsel, a subsidiary of Scotiabank. Hussein is an award winning instructor at the University of Toronto where he lectures in the area of Enterprise Risk Management.

Gary has been Chairman since October 26, 2012. Gary is best known as a visionary and a builder of top management teams. Among his many accomplishments, Gary spearheaded the creation of Alterna Bank of Canada, and the successful merger of CS CO-OP and Metro Credit Union to create the new entity Alterna Savings and Credit Union. Under his stewardship, Alterna rose to 'top of mind' recognition nationally, as an industry leader.

Gary was instrumental in achieving legislative change at both the provincial and federal levels as it
pertains to the financial services industry. He has been an active spokesperson for industry vision and regulatory change, and has appeared before House of Commons Committees and Senate Committees.

In March 2007, Gary Seveny retired as President and Chief Executive Officer of Alterna Bank of Canada and Alterna Savings and Credit Union, both headquartered in Ottawa with operations in west Quebec and throughout Ontario; a career that spanned 35 years. Gary remains active in business, currently a founder of the Odawa Group Inc., actively planning the creation of a new Canadian bank that will be focused on infrastructure lending. His devotion to community work remains impressive, having added additional Boards and Foundations to his roster.

Gary’s awards and industry recognitions include the Community Builder Recognition (United Way Ottawa, 2007), the Business Person of the Year – Silver Award (Ottawa Chamber of Commerce, 2002), the Co-operative Lifetime Achievement Award (Ontario Co-operative Association, 2003) and the Angel Award (Fay Bisaillon Memorial Fund, 2004).

Gary has been an active member of his community. Professional, philanthropic and board affiliations include:

• TelPay Board of Directors, 2007 - current
• Excellence Canada, Board of Directors 2001 - current
• Bruyère Foundation Board 2008 - current
• Cooperative Development Foundation, 2007 - 2013
• Funeral Co-operative of Ottawa 2010 - 2012
• 3Vista Board of Directors, 2007 - 2008
• Ottawa Cancer Survivor Park 2005 - 2008
• University of Ottawa, Telfer School of Management Adv. Board, 2002 - 2008
• United Way Ottawa Board of Directors, 2000 - 2007
• Ottawa Regional Cancer Foundation, 1998 - 2007
• Rideau Club, Membership Committee, 2003 - 2005
• Canadian Payments Association, 1988 - 2004
• Association of Ontario Credit Unions, 1990 - 2004