The Last Word
Dear Shareholders,
As we begin the year 2022 we’d like to take a moment to reflect on one of the biggest changes at Seven Canyons this past year. In November 2021, Sam Stewart, one of our founding partners, unexpectedly passed away.
As reported in many national publications, Sam will be remembered professionally for his impressive accomplishments: founder of Wasatch Advisors, keen investor, mentor to many within the financial community, the man who put Utah money managers on the map.
For those of you who have known Sam Stewart during his 45+ year career in investing, you will have also appreciated his quarterly Chairman’s Commentary letters. Sam offered a respected and trusted take on the markets.
Sam’s inquisitive style of looking at the macroeconomy and desire to simplify and share his findings with shareholders will be greatly missed. Sam often said that being an analyst was most akin to being a private investigator, and an understanding of the macro lay of the land was key to the case. But Sam’s true passion was in the hunt for the critical suspects – the elusive inefficiently priced company. The hidden gem. His love of the markets and his joy in the hunt was infectious. While great returns for investors were a reward, they were merely a byproduct of the love of the chase. It was truly never about the money.
In an interview with Chuck Jaffe in 2018, Sam explained his reasoning for leaving Wasatch Advisors with this self-reflecting question, “Why not try one new adventure before you pass on to the other side? That was the inspiration that got me to move on to Seven Canyons.”
Seven Canyons carries on Sam’s lifelong hunt for the hidden gem. We have made Sam’s methods our own, and they are built into the very foundation of SCA. A process built upon thoughtful and thorough research. A culture where every voice is heard and respected and where debate and skepticism are welcomed as constructive tools. A business that keeps performance at the forefront. We share Sam’s passion for finding the inefficiencies, and our intention is to stay the course.
The quarterly Chairman’s Commentary letters gave readers a peek at Sam’s thought process. His optimism and perspectives reflected both intimate personal musings as well as conclusions drawn from his attention to global events. The letters were as much a journal for him as they were a newsletter for our investors. Sam loved the Chairman’s letter because it gave him an opportunity to share his passion broadly. As a team, we have decided that Sam’s 2021 Q3 letter will be our final Chairman’s Commentary. To borrow a term from that message, it was “quintessential” Sam, and it feels only right to let him have the last word. Fund quarterly commentaries discussing performance and outlook will continue to be available on our website at www.sevencanyonsadvisors.com. If you have any questions, we welcome interaction with our investors and are grateful for your continued confidence.
Sincerely,
The Seven Canyons Team
This letter is for informational purposes only and does not constitute investment advice or a recommendation of any particular security, strategy, or investment product. The expressed views and opinions presented are for informational purposes only, are based on current market conditions, and are subject to change without notice. Although information and statistics contained herein have been obtained from sources believed to be reliable and are accurate to the best of our knowledge, Seven Canyons Advisors cannot and does not guarantee the accuracy, validity, timeliness, or completeness of such information and statistics made available to you for any particular purpose. Past performance is not indicative of future results.