Bermuda-based investment firm WP Stewart & Co. Ltd. marked its 35th anniversary by announcing a net return of 33.7 percent for its clients in 2009.

The company has been through a difficult period in recent years, having posted some hefty losses as assets under management shrank dramatically. A year ago, it switched its primary listing to the Bermuda Stock Exchange, after delisting from the New York Stock Exchange.

Yesterday, WP Stewart bosses reflected on the company's investment performance over three-and-a-half decades, which has consistently outperformed the S&P 500 Index.

WP Stewart clients' 33.7 percent net return in 2009 — as reflected by the company's US Equity Composite — compared to the S&P 500's 26.5 percent return. Since the inception, the company has achieved an annualised 16.4 percent return — 470 basis points better than the S&P 500's 11.7 percent yield.

WP Stewart aims to provide its clients with "better than average long-term returns and lower than average risk by investing in a concentrated portfolio of 15 to 20 high-quality companies with predictable and sustainable earnings growth".

Chairman and co-founder William Stewart said: "I am pleased that the firm provided its clients with the results we set out to make them 35 years ago and am particularly happy that we were able to at least hold things together for them over the past two exceptionally trying years, when they outperformed the S&P 500 by more than 600 basis points per year on average. On behalf of the firm, I would like to thank all of the clients, shareholders and employees who have helped us achieve this milestone."

Chief executive officer Mark Phelps added: "The firm's ability to outperform the S&P 500 by nearly 500 basis points per year, on average, for 35 years stems from our belief that identifying consistent earnings growth over time drives long-term investment performance. We are fortunate to have a great team of seasoned analysts dedicated to advancing the firm's time-tested investment philosophy and process."

Portfolio manager and analyst James Tierney pointed out that the firm's strategy had performed especially well during difficult years.

"Our performance amid the tumult of the recent past has been particularly validating for WP Stewart," Mr. Tierney said. "The firm's record serves as a powerful reminder of the risk-management benefits of focusing on companies with sustainable earnings growth, high quality management teams and conservative balance sheets. Looking back at the years since 1975 when the annual S&P 500 return was negative — '77, '81, '90, '00, '01, '02 and '08 — W.P. Stewart has beaten that index on average by over 1000 basis points per year."

As of December 31, 2009, W.P. Stewart managed approximately $1.6 billion in assets. The company releases composite portfolio investment returns on a monthly basis on its website at www.wpstewart.com.