Month End Recap:
For the month of July, the Caldwell Canadian Value Momentum Fund (“CVM” or “Fund”) gained 2.5% versus a gain of 5.8% for the S&P/TSX Composite Total Return Index (Index). From a sector standpoint, Real Estate, Materials, and Consumer Staples were relative outperformers, whereas, Information Technology, Industrials, and Energy underperformed.
Top performers in the month of July were Agnico Eagle Mines (“AEM”), Eldorado Gold (“ELD”), and Constellation Software (“CSU”). AEM rerated higher as the company achieved record operating margins and generated strong free cash flows aided by favourable gold prices. Additionally, investors appreciated its continued focus on capital discipline and cost control actions, which ensure that the benefit from favourable commodity prices efficiently flows through to shareholders. ELD was also able to benefit from favourable gold prices, which helped the company maintain its balance sheet as it continued funding its Skouries Mine project. CSU rerated higher as the company in its recent Annual General Meeting communicated that it is strategically focusing on enhancing organic growth through manager incentives, embracing AI across its businesses, and leveraging its strong reputation to secure valuable acquisitions. Additionally, the company’s openness to spinouts and greater use of leverage for high-return investments positions it well for continued growth and value creation, making it an attractive prospect for investors.
During the month of July, the Fund initiated a position in Stantec (“STN”). STN provides consulting, engineering, and design services to private and public clients in the infrastructure, commercial, environmental, and energy end markets. The company is well positioned to maintain its high organic growth rates driven by the tailwinds from strong fiscal spending.
The Fund held a 1.2% 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 2024 and beyond.
Standard performance as at July 31, 2024:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 10.3%, 3 year: 4.3%, 5 year: 8.8%, Since Inception (August 29, 2014): 8.2%.
S&P/TSX Composite Total Return Index: 1 Year: 15.7%, 3 year: 7.7%, 5 year: 10.5%, Since Inception (August 29, 2014): 7.2%.
Actual Investments, first purchased: AEM 4/1/2024, ELD 4/1/2024, CSU 10/16/2023.
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: August 15, 2024.