Month End Recap:
For the month of April, the Caldwell Canadian Value Momentum Fund (CVM or Fund) outperformed the benchmark, returning 7.2% versus a return of 3.8% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Health Care, Financials and REITs were relative outperformers, whereas Gold, Communication Services and Materials underperformed.
Top performers in the month of April were Hammond Power Solutions (HPS), Aritzia Inc. (ATZ) and Enerflex (EFX)2. HPS is a prime “pick-and-shovel” play on the electrification super-cycle, benefiting from a record $310 million backlog driven by surging demand for custom transformers in data centers, electric vehicle (EV) infrastructure, and renewable energy grids. The company’s recent Q1 2026 results showcased impressive operating leverage as they successfully pass through raw material costs while increasing manufacturing capacity in Mexico and Canada. A fortress balance sheet and a dominant market position in North America perfectly position HPS to capture multi-year secular tailwinds as the aging electrical grid undergoes crucial upgrades to prepare for the future. ATZ’s continues to execute on its successful high-growth expansion into the U.S. market, which now accounts for over 50% of total revenue and continues to see double-digit comparable sales growth. Management has effectively cleared legacy inventory issues, leading to materially improved gross margins. With a robust pipeline of new store openings and a highly profitable e-commerce segment, ATZ remains a top-tier retailer play with significant room for multiple expansion as earnings accelerate. EFX is a major beneficiary of the global “Gas-to-Power” transition, leveraging its record-high $1.5 billion recurring revenue backlog in energy infrastructure and water solutions to provide growing, high-visibility cash flows. The successful integration of the Exterran has unlocked significant synergies and accelerated debt reduction, moving the company toward its target leverage ratio of below 1.5x. As natural gas remains the essential bridge fuel for global energy security, Enerflex’s dominant position in modular treated gas processing and cryogenic facilities makes it an indispensable partner for LNG exporters and decentralized power producers alike.
During the month of April, the Fund initiated positions in Athabasca Oil Corp (ATH), Bombardier Inc. (BBD), Mullen Group (MTL) and Toromont Industries (TIH).
ATH is a pure-play Canadian energy company focused on the development of light oil and thermal bitumen assets in the Western Canadian Sedimentary Basin. Higher realized oil prices support the outlook for robust earnings growth and despite recent margin compression, the company remains a high-beta vehicle for crude price exposure with a robust balance sheet and a clear path to returning 100% of free cash flow to shareholders as they reach their net debt targets.
BBD is a global leader in manufacturing business jets through their industry-leading Challenger and Global aircraft families. The company delivered very strong Q1 results with a 3.6:1 book-to-bill ratio that drove their total backlog to a record $20.3 billion. With aftermarket services revenue growing 25% year-over-year and full-year free cash flow guidance raised to $1B+, BBD’s aggressive deleveraging and expansion into high-margin military and services segments serve as catalysts to a major structural re-rating.
MTL is one of North America’s largest logistics and transportation providers, offering specialized services ranging from less-than-truckload (LTL) shipping to oilfield services and warehousing. The company’s recent results beat analysts’ expectations despite a flat macroeconomic environment by prioritizing margins over market share. The company’s disciplined M&A strategy and new AI integration initiatives are driving operational efficiencies that position the firm to capture significant upside as infrastructure projects gain momentum.
TIH is a diversified industrial giant that operates one of the world’s largest Caterpillar dealerships and is a leader in industrial specialized refrigeration systems through its CIMCO segment. The company’s bookings grew 44% in Q1 2026 and pushed its total backlog to $1.7 billion on the back of resilient power systems and mining demand. Strong growth also drove a 44% increase in operating income and gross margins expanding by 340 basis points. Toromont’s integration of AVL Manufacturing and its $1.2 billion of cash on the balance sheet create a formidable platform for both organic growth and accretive acquisitions in the infrastructure super-cycle.
The Fund held a 12.5% 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 2026 and beyond.
1Standard performance as at April 30, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 61.9%, 3 year: 25.2%, 5 year: 16.2%, 10 year: 13.9%, Since Inception (August 29, 2014): 12.0%.
S&P/TSX Composite Total Return Index: 1 Year: 40.1%, 3 year: 21.5%, 5 year: 15.5%, 10 Year: 12.6%, Since Inception (August 29, 2014): 10.2%.
2Actual Investments, first purchased: HPS 7/17/2025, ATZ 3/16/2026, EFX 8/8/2025.
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 21, 2026.