National Post (National Edition)
An upbeat outlook from Wall Street
Pine Street Asset Management hosted a dinner recently at Morton’s in Toronto for influencers and clients. With offices in Toronto and New York, Pine Street’s affiliates provide discretionary investment advice to institutions, endowments, fund-of-funds, family offices and high-net-worth individuals both in Canada and the United States.
With more than $2 billion in assets under management, the Pine Street organization has been managing money for more than 40 years. The Pine Street family includes New York-based A.R. Schmeidler & Co., acquired in February; Toronto-based Artemis Investment Management Ltd.; Vestcap Investment Management Inc. and New York-based Somerset Capital Advisers and Pine Street Associates.
Pine Street’s Trevor Maunder, Conor Bill, Brent Strasler and Jay Rosenfeld hosted the event. Wall Street veteran Stephen Burke, president of A.R. Schmeidler, was upbeat even though he anticipates that low interest rates, low inflation rates and a slowing growth environment will be evident for some time.
Burke also said that the impact of China slowing is being witnessed on emerging and commodity-producing nations. However, China has the wherewithal to fight through as it plays the long game in its economic development with US$3.8 trillion in reserves and a current account surplus of more than US$400 billion and a growing services sector. Continued uncertainty and volatility will persist with continued Middle East turmoil, while Europe deals with debt and migration challenges with more fragmentation which will require fiscal stimulus from countries that were part of austerity initiative.
Burke anticipates that the bright light will be the U.S. economy, which will prove resilient, adaptable and benefit from lower commodity prices and capital flows. Although volatility will persist, wages, employment, housing and industrial activity are positives.
Burke is looking at higher cash positions and being more selective in investments, focusing on share gainers and companies with growing dividends, rising cash flows, above average growth rates and with less reliance on capital markets.
“Pine Street is unique as a money management group. Through our affiliates, we bring a true cross-border, multi-discipline approach to planning and managing the financial intricacies for our clients” said managing director, Manager Programs. “Sophisticated investors can select from a broad universe of investment opportunities; picking the right investment can confuse even the most seasoned investor.
By combining talent, a deep pool of intellectual capital and a focus on diversified asset allocation that includes alternative investments, we deliver a custom-tailored client solution. The philosophy is capital preservation and wealth creation.”