Month End Recap:
For the month of July, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 1.2% versus a gain of 1.7% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Communication Services, Real Estate, and Information Technology were relative outperformers, whereas Healthcare, Industrials, and Materials underperformed.
Top performers in the month of July were 5N Plus (VNP), Element Fleet Management (EFN), and Badger Infrastructure Solutions (BDGI)2. VNP extended its upward momentum after management delivered an upbeat update supported by stronger demand trends, improved pricing, and disciplined cost control. The company raised its full-year guidance, reflecting confidence in sustained momentum and the successful execution of its strategic initiatives. Investors were encouraged by progress in higher-margin segments and growing traction in key end markets, alongside a healthy project pipeline that supports visibility into 2026. These factors have reinforced confidence in the company’s ability to drive earnings growth and deliver long-term value creation. EFN continued to rerate higher since the company delivered a constructive outlook supported by a growing backlog, stable demand, and disciplined expense control. Management reiterated full-year guidance and highlighted upside potential from expected U.S. tax legislation, which could meaningfully boost syndication revenue in the second half of the year. Investors were also encouraged by the expansion of its digital platform and signs that originations are set to accelerate, reinforcing confidence in its growth trajectory. BDGI maintained its momentum as the company benefits from strong end-market demand and improving operational execution. Its manufacturing segment is delivering enhanced efficiencies, supporting both margin expansion and increased throughput. Management is targeting additional corporate-wide efficiency gains through 2026, which should further bolster earnings, while ongoing fleet utilization optimization is expected to improve asset productivity and capital efficiency. These factors have reinforced investor confidence in the company’s multi-year growth trajectory.
During the month of July, the Fund initiated a position in Hammond Power Solutions (HPS.A). HPS.A is the largest manufacturer of dry-type transformers in North America, serving industries such as oil and gas, mining, steel, waste and water treatment, commercial construction, data centers, and wind power. The company is benefiting from a record backlog, driven by strong demand for higher-margin custom products and accelerating data center activity. Its new custom facility in Mexico, brought online ahead of schedule, is expected to meaningfully expand capacity and support robust growth through 2026. In addition, price increases implemented in April and a favourable sales mix should bolster margins, while the company’s solid balance sheet and M&A optionality provide further avenues for expansion.
The Fund held a 5.0% 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.
1Standard performance as at July 31, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 14.3%, 3 year: 9.7%, 5 year: 10.5%, 10 year: 9.8%, Since Inception (August 29, 2014): 8.7%.
S&P/TSX Composite Total Return Index: 1 Year: 21.4%, 3 year: 15.0%, 5 year: 14.4%, 10 Year: 9.8%, Since Inception (August 29, 2014): 8.5%.
2Actual Investments, first purchased: VNP 6/5/2025, EFN 12/6/2023, BDGI 5/14/2025.
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: August 18, 2025.