Morningstar Awards: Edgepoint's managers of the year

Tye Bousada and Geoff MacDonald, EdgePoint Global Portfolio, win Foreign Equity Fund Manager of the Year in their first year being nominated.

Ashley Redmond 1 December, 2014 | 6:00PM

 

 

Ashley Redmond: I'm Ashley Redmond for morningstar.ca and I’m here with EdgePoint’s Tye Bousada and Geoff MacDonald. They just picked up Morningstar’s Foreign Equity Fund Manager of the Year award. Congratulations guys.

Tye Bousada: Thanks very much Ashley.

Geoff MacDonald: Thanks.

Redmond: Our analysts attribute your win [in part to your] willingness to look different. Where does this stem from?

Bousada: It really all stems from our investment approach. We’re very focused on trying to identify businesses that are going to look very different five years from now, meaning much bigger, and trying to identify how we’re not being asked to pay for that growth today. So, essentially buying that difference for free or buying that growth for free. So, it all comes back to the investment approach.

Redmond: And what’s your goal with this fund? What do you want to bring to the investor with this fund?

MacDonald: A goal when we started six years ago was to be at the top of our peer group over 10 years and truth be told we’re still six years in and it hasn’t been 10 years, so we call this a good start. I think there has been such a short term focus in the investment industry on short term results over time, we really wanted to be at the top of our peer group over 10 years and that still to this day is our goal.

Redmond: You do have a short track record, less than six years, so where does this chemistry come from? Have you worked together before?

Bousada: Geoff and I have worked together, dating back to 1996, so we’ve had a lot of experience working with one another. In addition to that, a number of the members of the team we’ve worked with for over a decade [like one of our portfolio managers Ted Chisholm] And in Frank [Mullen’s] case we’ve worked with him for five years, and in Andrew [Pastor’s] case it has been two, two and a half [years]. So, we’ve had a good amount of time to work together and understand how to function together.

Redmond: What should investors expect from EdgePoint in 2015?

MacDonald: We can’t predict any one year number or one year results, it’s very difficult to do that. We certainly expect and we hope for volatility. The truth is the investment results over the last six years have been helped by the volatility that we’ve experienced. Volatility is not risk if you know the worth of a business. So I would expect volatility. We had it every year and we certainly hope for it and we will embrace it as it comes.

Redmond: Congratulations guys. It’s a pretty big night for you.

Bousada: Thanks very much Ashley.

MacDonald: Thank you.

Bousada: Good night.

About Author

Ashley Redmond

Ashley Redmond  Ashley Redmond is a Vancouver-based freelance writer.