Month End Recap:
For the month of February, the Caldwell Canadian Value Momentum Fund (CVM or Fund) declined -1.3% versus a decline of -0.4% for the S&P/TSX Composite Total Return Index (Index). From a sector standpoint, Utilities, Consumer Discretionary, and Materials were relative outperformers, whereas Information Technology, Healthcare, and Energy underperformed.
Top performers in the month of February were RB Global (RBA), Fairfax Financial Holdings (FFH), and ARC Resources (ARX). RBA rerated higher as it delivered strong quarterly results and raised its guidance for 2025. Although the growth in overall transaction volume was modest, the company achieved a significant improvement in its operating margins, underscoring robust operational execution. FFH delivered strong quarterly results, driven by robust underwriting performance coupled with attractive contributions from investment income. ARX delivered robust quarterly earnings as the company’s realized liquids pricing was better than anticipated, whereas its operating and transportation costs came in lower than expectations.
During the month of February, the Fund initiated positions in Alamos Gold (AGI) and Iamgold (IMG).
AGI is a Canadian-based intermediate gold producer operating three mines in North America. Its phase 3 expansion and the development at the Lynn Lake facility are expected to serve as production growth catalysts, positioning the company for enhanced operational capacity and long-term value creation.
IMG is a mid-tier producer generating production across a diversified asset portfolio that spans the Essakane mine in Burkina Faso, the Westwood mine in Canada, and the newly operational Côté Gold mine in Canada. The ramping of the Côté project positions the company well for further balance sheet deleveraging.
The Fund held a 2.6% 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.
Standard performance as at February 28, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 13.7%, 3 year: 5.4%, 5 year: 11.5%, 10 year: 9.8%, Since Inception (August 29, 2014): 8.6%.
S&P/TSX Composite Total Return Index: 1 Year: 22.5%, 3 year: 9.7%, 5 year: 12.7%, 10 Year: 8.5%, Since Inception (August 29, 2014): 8.0%.
Actual Investments, first purchased: RBA 11/2/2023, FFH 3/21/2024, ARX 7/19/2023.
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: March 24, 2025.