Issue link: http://resourceworld.uberflip.com/i/229125
in the position to further consolidate the Canadian diamond industry and become a more important global force in the diamond business. Several Canadian companies advanced their projects to important milestones last year, notably Lucara Diamond [LUC-TSX] and Mountain Province Diamonds [MPVTSX] and will continue to do so in 2014. In the meantime, for the sixteenth year in a row, no major new diamond deposits were discovered. We think this bodes well for those select few companies that have proven to have found rich diamond deposits and are advancing those projects or are already in production. DEALING WITH THE VOLATILITY Instability leads to volatility. Given that we believe the world is inherently unstable, we expect continued volatility in 2014. We have found that the volatility created by market uncertainties can lead to opportunities and we have found many of those opportunities exist in the options market. 18 www.resourceworld.com RW December 2013.indd 18 We have been able to generate enhanced returns for our clients through a very conservative strategy of writing puts on the highest quality companies when market conditions for those companies are the most negative. Our Option-Enhanced Growth Portfolio has taken advantage of that volatility and continues to do so. As the VIX declined, so did option premiums and we have added a third option strategy in addition to our at-the-money Put writing and Covered Call Writing. We have started to buy long-dated, deep in-the-money Calls on high quality companies and have found that we can get the optionality (the advantage) and leverage with little or no time value premium. So while the world is unstable and unpredictable, it is also in the eternal throes of economic development and the pursuit of the economic betterment of global citizens. This means that, over time, the wealth of the world will continue to increase and we can use the unpredictable and unstable nature of events to discover excellent investment opportunities. Prentice Lee, FCSI, CIM, is a Portfolio Manager, Senior Investment Advisor, at Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp., Member of Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness is not guaranteed, nor in providing it does Prentice Lee Wealth Management, Canaccord Genuity Corp., or its subsidiaries, or affiliated companies, assume any liability. This information is current as of the date appearing in this article, and we do not assume any obligation to update the information or advise on further developments relating to these securities. This report should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities mentioned herein. The views expressed are those of the author and not necessarily those of Canaccord. Prentice Lee can be reached at 604-643-7682 or at prentice.lee@ canaccord.com n DECEMBER/JANUARY 2014 12/11/2013 6:11 PM