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Update on the Caldwell Canadian Value Momentum Fund

January Recap 

 

The Fund gained 3.1% in January versus a gain of 8.7% for the S&P/TSX Composite Total Return Index ("Index”). Broad-based market weakness in Q4 turned into broad-based strength in January. Health Care, driven by weed stocks, was the best-performing sector (+43.2%). Technology, Consumer Discretionary and Energy all posted gains of 10%+. 

 

Top CCVMF performers in January were North American Energy Group (“NOA”: +13.1%) and Badger Daylighting (“BAD”: +8.4%). NOA moved higher with the broader energy space, while BAD saw management active in the NCIB in early January. There were no company-specific catalysts beyond these. 

 

Three stocks were added to the portfolio in January: Kirkland Lake Gold ("KL"), Empire Ltd. ("EMP.A") and Enerflex ("EFX").

 

Kirkland Lake was added back to the portfolio following their Investor Day which confirmed the company's strong growth profile.

 

Empire was also added back to the portfolio after a strong earnings report that saw EBITDA beat analyst expectations by over 10% on strong same-store-sales growth of 3.2%. The self-help/cost story remains a tailwind, along with inflation returning to the industry.

 

Enerflex provides equipment and services used to build the infrastructure required to support growing global demand for natural gas. The company has done well to shift its revenue mix towards higher-margin and recurring revenue. Recent bookings strength has led to a record-high backlog, which we expect will drive the share price higher. 

 

The Fund held a 38.8% cash weighting at month end. The Fund continues to generate substantial value to 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 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund 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.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 5 of a total of 369 constituents in the Canadian Equity category and 6 of a total of 112 constituents in the Canadian Small/Mid Equity category.

 

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: February 19, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")