Small-Cap Equity Fund
Wutherich & Company
Wutherich & Company is an investment boutique in Montreal that manages money for high-net-worth individuals. The firm’s focus and expertise is in managing small and mid-cap North American equities. The founder, Wil Wutherich, established the firm in 1999 with the goal of managing money in an unconstrained environment. He manages only one model portfolio and has the majority of his wealth invested in it.
In our search for equity managers, we only looked at companies that have a stable and sustainable ownership structure. Generating attractive returns is always challenging and can be all but impossible if the environment around the manager is constantly changing.
There were four other criteria that weighed heavily in our search for equity managers:
Investment Philosophy
Wutherich & Company manages extremely concentrated portfolios (typically 15-20 holdings) with minimal constraints. They are students of absolute return investing and focus on simple, repeatable businesses that they know well. Turnover is low, as stocks are typically held for three to five years. If there are few opportunities in the market, the firm sticks to its best ideas and will maintain a reasonable cash reserve to act when value becomes apparent.
Experience
Wil Wutherich calls the shots. He has over 17 years of experience in the investment industry as an analyst and portfolio manager. Wil has worked in both sides of the business, learning his trade at Standard Life, which is one of Canada’s larger financial institutions and a training ground for successful portfolio managers; and refining his investment process at Van Berkom & Associates, a smaller investment management boutique.
Evidence of Success
Since inception, Wutherich & Company has generated significant added value for their clients in the small-cap arena. Prior to founding the firm, Wil was a key contributor in building an enviable track record at Van Berkom & Associates, a firm that specializes in managing small-cap equities.
Agility
Wutherich & Company is a small player in the business. And they intend to stay that way. Because of the lack of liquidity and limited opportunities in the small-cap market, it’s crucial for a manager to be agile. Wutherich & Company is clear in their conviction that they will not compromise their investment approach or philosophy as their assets grow. Indeed, they plan on closing their doors to new business when they reach capacity. Accordingly, the Small-Cap Equity Fund will be closed to new investors when it reaches capacity.
