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Our investment philosophy is based on the conviction that long-term, consistent earnings growth drives long-term investment returns.
By identifying high quality companies that can grow earnings faster than the market on a sustainable basis, we will be able to achieve superior returns for our clients.
Since our inception, the companies in W.P. Stewart’s U.S. Equity portfolio have exhibited faster EPS growth than the S&P 500 Index in nearly all periods. The current compound annual growth for our U.S. equity portfolio companies through 2017 is 14% compared to a rate of 6% for the companies in the S&P 500 Index. Earnings growth has translated into higher returns, as evidenced by our 15.9% annualized return after fees compared to the S&P 500’s 11.5% return from December 31, 1974 through December 31, 2011.
Also central to our philosophy is the belief that compounding wealth requires preserving capital in down markets. W.P. Stewart (Net) has outperformed the S&P 500 Index by an average of 4.4% per year since inception and, as the graphic shows, we have a compelling record of outperformance during years when the S&P 500 Index is down.
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WPS U.S. Portfolio Companies'
Earnings Compound Annual Growth Rate (through 2017) = 14%
S&P 500 Earnings Compound Annual Growth Rate (through 2017) = 6%
*Historical Earnings CAGR for the period December 31, 1974 to December 31, 2011.
**Earnings projections for WPS U.S. Portfolio companies through 2017 are based solely on assumptions developed by W.P. Stewart & Co., Ltd.; S&P projections are based on the 30 Year Historical Average.
Average Up-Market & Down-Market Performance Annual Periods from 1975 – 2011
Note: Since inception, 12/31/74, there have been 30 calendar years of positive S&P 500 Index
returns and 7 calendar years of negative returns. Data represents average annual returns of the
W.P. Stewart U.S. Composite (Net) versus the S&P 500.
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