Month End Recap:
For the month of December, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 1.0% versus a gain of 1.3% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Financials, Materials, and Healthcare were relative outperformers, whereas Utilities, Information Technology, and Energy underperformed.
Top performers in the month of December were Electrovaya (ELVA), Enerflex (EFX), and iA Financial (IAG)2. ELVA performed strongly as quarterly results and outlook reinforced confidence in its accelerating growth trajectory and expanding end-market exposure. Revenue continued to scale strongly, supported by sustained demand in material handling and improving visibility into new verticals such as robotics, energy storage, and defense. Management signaled revenue growth exceeding 30% year over year while maintaining solid gross margins and continued profitability, reflecting disciplined cost control and favorable product mix. Progress toward ramping domestic manufacturing further strengthened confidence in margin expansion, supply chain resilience, and long-term operating leverage as volumes grow. EFX maintained its positive momentum as quarterly results highlighted strong execution across its core engineered systems and recurring infrastructure businesses. Revenue and earnings exceeded expectations, supported by solid project delivery, healthy margins, and continued strength in contracted and service-based activities that provide earnings stability. Demand for natural gas processing, compression, and related infrastructure remained robust, with additional upside tied to power generation and data center related opportunities. With improving visibility across its backlog and durable end-market demand, the balance sheet remained in good shape, allowing for continued capital returns alongside growth investments. IAG performed well as results highlighted strong organic capital generation and continued momentum across its diversified insurance and wealth platforms. The completion of the RF Capital acquisition strengthened its wealth management offering and positioned the business for future earnings accretion, while integration remained on track. Capital strength improved further, supported by regulatory alignment that enhanced solvency and increased flexibility for deployment. Performance in auto finance and U.S. dealer services remained solid, reinforcing earnings diversification.
During the month of December, the Fund initiated a position in CES Energy Solutions (CEU).
CEU is a provider of proprietary drilling and production fluid systems, serving oil and gas operators across North America. The company is benefiting from offshore growth initiatives and expanding opportunities within Canadian production chemicals, which represent meaningful new avenues for revenue diversification. In the U.S., heightened bidding activity in the drilling fluids market points to improving competitive positioning and potential share gains. Together, these drivers support a constructive outlook as activity levels and end-market demand continue to build.
For the fourth quarter of 2025, CVM gained 7.4% versus a gain of 6.2% for the Index. Top contributors to the performance were Enerflex (EFX), Spartan Delta (SDE), and Hammond Power Solutions (HPS.A). EFX was also among the top performers in December and was previously discussed in the monthly section above. SDE performed well as its quarterly results exceeded expectations for both production and cash flow, reflecting strong execution and continued operational momentum. The company advanced its liquids-rich growth strategy with new wells coming online and strengthened its land position through a strategic swap. Strong outcomes across several emerging zones pointed to potential inventory upside, even as development plans remain disciplined. Capital spending was higher due to targeted land investments, but underlying asset performance stayed robust. HPS.A rerated higher as its quarterly earnings highlighted strong demand for its transformers used in data centers and electrical infrastructure. The company reported a sharp rebound in its order backlog, with new bookings after the quarter already exceeding half of its quarter-end backlog, giving strong visibility into future shipments and revenue strength. Temporary margin pressure was offset by expectations for recovery as recent price increases take hold and new facilities operate at higher utilization. With capacity expansion underway and data center projects growing rapidly, the outlook for continued volume growth and improving profitability strengthened investor confidence.
The Fund held a 9.4% 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 December 31, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 27.3%, 3 year: 16.9%, 5 year: 12.9%, 10 year: 11.5%, Since Inception (August 29, 2014): 10.0%.
S&P/TSX Composite Total Return Index: 1 Year: 31.7%, 3 year: 21.4%, 5 year: 16.1%, 10 Year: 12.7%, Since Inception (August 29, 2014): 9.7%.
2Actual Investments, first purchased: CEU 12/4/2025.
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: January 19, 2026.