Month End Recap:
For the month of March, the Caldwell Canadian Value Momentum Fund (CVM or Fund) declined 3.0% versus a decline of -1.5% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Materials, Energy, and Consumer Staples were relative outperformers, whereas Information Technology, Industrials, and Healthcare underperformed.
Top performers in the month of March were Kinross Gold (K), Agnico Eagle Mines (AEM), and ARC Resources (ARX)2. K rerated higher as a result of a constructive move in the price of gold, which provides the company with a favourable backdrop to continue generating strong free cash flows supporting the company to continue deleveraging its balance sheet. AEM also rerated higher assisted by a constructive move in the price of gold, which provides the company with a favourable backdrop to continue deleveraging and becoming nearly debt neutral. ARX continued its strong performance after having delivered robust quarterly earnings in the prior month, 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 March, the Fund did not initiate any new positions.
For the first quarter of 2025, CVM declined -1.0% versus a gain of 1.5% for the Index. Top contributors to performance were Agnico Eagle Mines (AEM), Kinross Gold (K), and Chartwell Retirement Residences (CSH.UN). AEM and K were also the top performers in the month of March and were already discussed in the monthly section above. CSH.UN rerated higher as the company stands to benefit from favourable demographic tailwinds and improving occupancy, with limited new supply expected to come online in the near term. As its portfolio approaches stabilized occupancy levels, this supports accelerating rent growth and subsequent margin improvement.
The Fund held a 15.0% 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 March 31, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 7.4%, 3 year: 3.2%, 5 year: 14.6%, 10 year: 9.3%, Since Inception (August 29, 2014): 8.2%.
S&P/TSX Composite Total Return Index: 1 Year: 15.8%, 3 year: 7.8%, 5 year: 16.8%, 10 Year: 8.5%, Since Inception (August 29, 2014): 7.7%.
2Actual Investments, first purchased: K 9/16/2024, AEM 4/1/2024, ARX 11/22/2024.
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: April 24, 2025.