Month End Recap:
For the month of April, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 1.2% versus a decline of -0.1% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Consumer Staples, Utilities, and Consumer Discretionary were relative outperformers, whereas Healthcare, Energy, and Communication Services underperformed.
Top performers in the month of April were Kinross Gold (K), Lundin Gold (LUG), and Loblaw (L)2. K rerated higher, aided by a constructive move in the price of gold, which provides a favourable backdrop for the company to continue generating strong free cash flow and further deleveraging its balance sheet. LUG also rerated higher, assisted by a constructive move in the price of gold, providing the company with a supportive environment to operate in. L performed well as its quarterly earnings reflected continued strong sales momentum, further supported by higher-than-expected contributions from recently opened stores.
During the month of April, the Fund initiated positions in North West Company (NWC), Torex Gold Resources (TXG), Great-West Lifeco (GWO), Lundin Gold (LUG), TC Energy (TRP), Sprott (SII), Peyto Exploration & Development (PEY).
NWC is a leading retailer serving rural and urban communities across Canada, Alaska, the South Pacific, and the Caribbean, with over 225 stores under several banners. The company is well-positioned to capitalize on an unprecedented influx of money into First Nations communities, as a result of several landmark settlement agreements.
TXG is a Toronto-based intermediate gold producer with assets located in Mexico’s Guerrero Gold Belt. The de-risking of its Media Luna project creates further room for its share price to appreciate through multiple expansion.
GWO provides life and disability insurance, investment and retirement savings plans, group benefits, and mutual funds. The company also operates in Ireland under the Irish Life banner and has a presence across Europe. The company is improving its product mix by shifting toward the faster growing retirement and other capital light businesses, in addition to optimizing its costs.
LUG operates the single asset, high-grade Fruta del Norte project located in Southern Ecuador. The company’s throughput as well as recoveries are on track to trend higher for the remainder of this year.
TRP owns and operates a broad portfolio of energy infrastructure assets across North America, including natural gas pipelines, storage facilities, and power generation. Its over 93,000 km pipeline network delivers over 25% of the natural gas consumed daily across the continent. The company provides attractive exposure to the growth in natural gas demand due to the rising energy needs.
SII is a global independent asset manager focused on precious metals and energy transition metals strategies, with over $35 billion in assets under management. The company is driving margin expansion through a favourable shift in product mix and the benefits of increasing scale.
PEY is a natural gas focused exploration and production company, with operations concentrated in Alberta’s Spirit River and Cardium formations. The company provides good exposure to the growth in natural gas demand driven by the rising energy needs.
The Fund held a 19.9% cash weighting at month-end. While we remain mindful of the macro environment, the Fund employs a bottom-up investment approach designed to seek out attractive investment opportunities in any market. CVM has generated substantial value for investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2025 and beyond.
1Standard performance as at April 30, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 12.5%, 3 year: 4.5%, 5 year: 12.2%, 10 year: 9.4%, Since Inception (August 29, 2014): 8.2%.
S&P/TSX Composite Total Return Index: 1 Year: 17.8%, 3 year: 9.6%, 5 year: 14.4%, 10 Year: 8.3%, Since Inception (August 29, 2014): 7.7%.
2Actual Investments, first purchased: K 9/16/2024, LUG 4/8/2025, L 1/24/2024.
The CVM was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.
Unless otherwise specified, market and issuer data sourced from Capital IQ & Morningstar Direct.
The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated.
Publication date: May 20, 2025.