Wall Street Transcript Interview with Robert F. Richards, Rupel M. Ruparelia, and Richard M. Tattersall of Heathbridge Capital Management Ltd.: Concentration and Diversification in Long-Term Investing

Wall Street Transcript

67 WALL STREET, New York - December 6, 2012 - The Wall Street Transcript has just published its Global Investing Strategies Report offering a timely review to serious investors and industry executives. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Global Investing - Investment Risk Management Strategies - Emerging Market Growth Dynamics - High Quality Companies

Companies include: SPDR S&P 500 (SPY), iShares MSCI Canada Index (EWC) and many others.

In the following excerpt from the Global Investing Strategies Report, experienced asset managers discuss their investment philosophy:

TWST: Please give us a little bit of a background and an overview of Heathbridge Capital Management.

Mr. Richards: Heathbridge is a private wealth management company. We do some institutional and foundation types of work, but that's not our focus. Our main interest is segregated portfolios for individuals. We're managing $365 million right at the moment and practice a pretty strong brand of investment medicine. So far, the results of that process have been pretty strong.

TWST: So what are the types of strategies Heathbridge currently offers?

Mr. Richards: We run concentrated portfolios and aim to own 20 to 22 differentiated securities. We have a very strong diversification program. Each of the securities in the portfolio will be as different from one another as possible. We also implement a timing discipline that directs us to buy a stock that we have been following only after it's had a period of price decline. Concentration, strong diversification and buying after price declines are the three elements of our investment strategy. We also have balanced portfolios, but for the equity part of any portfolio, that describes what we do.

TWST: Please summarize the firm's investment philosophy for us.

Mr. Richards: Our belief is that most portfolios tend to mimic indices one way or the other. Our very strong diversification strategy means that our bets aren't duplicated and ensures that index-type weighting doesn't happen in the accounts that we manage.

It also means that, in any particular sector, you're looking for the best of breed. Each security in the portfolio should behave differently from all others. This multiplies the ways that the portfolio can generate returns. We believe that, in the long term, it will result in less volatility, smaller declines in periods when the market goes down and better returns when...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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