Dear Investor:

COTE 100's mission is simple:

We accomplish this mission in two ways.
First, we offer our clients a range of Canadian and U.S. equity portfolios. These funds are managed by my team of four analysts/managers and myself. Also, some pension funds have given us the mandate of managing the "growth" section of their assets. As you will notice by visiting this site, I believe that we have accomplished our mission in the last few years. However, I prefer to look ahead than back.

Second, COTE 100 has a publications division whose objective is twofold: help obtain better returns and instill a better investment philosophy into investors. Since 1988, COTE 100 has been publishing the "COTE 100 Newsletter ". This is a monthly publication where we recommend stocks to individuals who wish to manage their own portfolio or part thereof. Then, in 1996, came "COTE 100 Selections", a complement to the COTE 100 newsletter, where we present various recommendations from different North American brokerage firms.

Another facet of this second part of COTE 100's mission is to give investors a better understanding of the stock market. That is why I wrote La Bourse ou la Vie, a book in which I share my secrets and experience as an investor. This is also what motivated me to write a second book, Les fonds mutuels vus de l'intérieur, which focuses on the world of mutual funds.

Since its creation in 1985, COTE 100 has come a long way. I wish to thank all of those who have stood by us over the years. All of our energy remains focused on the same objective: obtaining superior returns for our investors.
COTE 100's philosophy: Looking for the best bargain

The COTE 100 System

First and foremost, COTE 100's investment philosophy is based on the "COTE 100 System", a computerized model which attempts to recreate a shrewd investor's decisions with respect to a particular stock. The COTE 100 System is based on the principles of the greatest investors of our time: Benjamin Graham, Warren Buffet and Philip Fisher.

First, the System compares approximately 15 objective criteria which are common to all companies. Then it allocates a rating to each company followed by COTE 100, 100 being a perfect rating. The higher the rating, the more a stock is considered a good buy. Generally speaking, a stock becomes attractive when it has a rating of over 80. However, the lower the rating, the more the stock is overvalued.

The COTE 100 System allows us to reduce the number of errors and minimize losses when we make a mistake. The golden rule in the stock market is to preserve one's capital. Therefore, we take no undue risk.

Once the bargain has been found, COTE 100's research really begins. We do a thorough study of the company, its products and the industry. In fact, one of COTE 100's characteristics is its meticulous follow-up of the stocks it owns and the importance it gives to frequent meetings with executives from these companies. In our mind, a share always represents more than a simple piece of paper; it is a part, albeit a small part, of a company.

This is why our team of managers maintains a close relationship with the executives of companies in which we invest. This is also why we hold our investments for several years-as long as the company continues to prosper.

Few stocks

Another facet of COTE 100's investment philosophy is the small number of stocks under management. In fact, we generally have 25 stocks in our portfolios. Obviously, this policy allows us to invest a relatively high percentage of assets in a company. This also forces us to invest in a company only when we are convinced of its long-term potential.

Attractive trends

Our first objective is to obtain superior long-term returns, i.e., for many years. This is why we look for companies with an attractive growth outlook for many years to come. The way we find long-term growth stocks is by focusing on certain growth industries,those who will benefit from major demographic or socioeconomic trends. For example, we are attracted to industries related to health care (because they will benefit from an aging population), outsourcing companies (because we believe that outsourcing represents a strong long-term trend), and companies which can sell anywhere in the world (because market globalization is irrevocable), etc.

Avoid cyclical companies

This policy of investing for the long term also forces us to avoid cyclical companies for the simple reason that these companies are generally incapable of constant and steady growth. Therefore, our portfolios include few oil, mining, paper or real estate companies, if any.

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