A contrarian
journey to riches
Markets are rear-view mirror driving
What has worked over the past 10 years:
• Currency: Canadian, Australian, Russian
(a commodity trade)
• Real estate: Asia, Toronto, Sydney
• Emerging market stocks
• Bonds: Canadian, Australian, German
Markets are rear-view mirror driving
What hasn’t worked over the past 10 years:
• Real estate: U.S., Irish, Spanish
• Japanese equities
• European banks
• Building materials
• Health care & tech stocks
“As time goes on, I get more and more convinced that the right method in
investment is to put fairly large sums into enterprises which one thinks one
knows something about and in the management of which one thoroughly
believes. It is a mistake to think that one limits one’s risk by spreading too
much between enterprises about which one knows little and has no reason
for special confidence… One’s knowledge and experience are definitely
limited and there are seldom more than two or three enterprises at any
given time in which I personally feel myself entitled to put full confidence.”
John Maynard Keynes
Black Creek’s
competitive advantages
• Structure: Privately owned-less pressure to
conform
• Integrity: Invest own money in funds – interests
aligned with investors
• Experience: 50 years’ combined experience,
numerous performance awards – seen a lot, already
made a lot of mistakes
• Conviction: Concentrated portfolios made up of
distinct, proprietary global ideas
• Long-term investment horizon: this makes us
different/contrarian
What we deliver
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Focused approach
Tracking error
Independent minded
Bottoms up – company focused
Long term outperformance
Low turnover
Black Creek portfolios
• Flexible all-cap go-anywhere mandates allow the
managers to avoid areas of high valuation risk
• 20-25 leading companies by market share – each a
proprietary idea
• Fewer companies to follow = depth of
research/competitive analysis = conviction in our
choices
• High deviation from index results in longer term
outperformance
• Disciplined BUY/SELL process – replace our least
favourite idea with our newest idea
Things happen
How the year felt – why we diversify
What worked – what didn’t
Portfolio performance & positioning
top holdings at March 31, 2012
Castlerock
International Equity
Castlerock Global
Leaders
Castlerock Global
Balanced
Pronova BioPharma
Wienerberger AG
Wuxi Pharmatech Inc.
Wuxi Pharmatech Inc.
Archer Daniels Midland
Archer Daniels
Midland Co.
Makita Corp.
Ebay Inc.
Galp Energia
Carnival PLC
Adobe Systems Inc.
Makita Corp.
Wienerberger AG
Carnival Corp.
Pronova BioPharma
Hamamatsu
Photonics
Hamamatsu Photonics
Carnival Corp.
Galp Energia
Makita Corp.
Micronas
Semiconductor
Erste Group Bank AG
Galp Energia
FTI Consulting Inc.
Randstad Holding
Invensys
Weinerberger AG
Invensys
Northrop Grumman
Invensys
Black Creek performance
1YR
2YR
3YR
5YR 10YR**
Castlerock Global Leaders B
-8.9%
1.6%
7.8%
-1.4%
-0.3%
MSCI World NR (C$)
-0.5%
4.7%
8.6%
-4.0%
0.2%
** Black Creek Investment Management took over management of Castlerock
Global Leaders Fund on June 15, 2006; inception date is May 2000.
Castlerock International Equity B
-5.6% 1.4%
8.9%
-
-
MSCI EAFE NR (C$)
-9.0%
0.5%
5.0%
-
-
Castlerock Global Balanced B
-3.3% 1.4%
6.3%
0.6%
-
3.5% 5.7%
5.7%
0.0%
-
Global Balanced Index*
Source: Paltrak
Fund returns shown are for Series B at April 30, 2012.
* 60% MSCI World Index CAD/40% JPM GBI C$.Net Return
Looking forward…
Thank you
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less than one year, the indicated rates of return are the historical annual compounded total returns including changes in
security value. All performance data assume reinvestment of all distributions or dividends and do not take into account
sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have
reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be
repeated.
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