Month End Recap:
During the first quarter of 2026, the Caldwell Canadian Value Momentum Fund (CVM or Fund) generated an notable 18.6% return, significantly outpacing the return on the S&P/TSX Composite Total Return Index (Index)1 of 3.9% over the same period. For the month of March, the Fund performed generally in-line with the Index, posting a decline of -4.8% versus a decline of -4.3% for the Index. From a sector standpoint, Energy, Information Technology, and Utilities were relative outperformers, whereas Materials, Consumer Discretionary, and Healthcare underperformed.
Top performers in the month of March were Spartan Delta (SDE), Tamarack Valley Energy (TVE), and CES Energy Solutions (CEU)2. SDE continued to perform well as it advanced its liquidsrich growth strategy with new wells coming online and strengthened its land position through a strategic swap. Strong outcomes across several emerging zones pointed to potential inventory upside, even as development plans remain disciplined. Capital spending has been higher due to targeted land investments, but underlying asset performance stayed robust. TVE moved higher as results reinforced the strength of its low-cost, high-return asset base, with reserve growth across all categories and strong recycle ratios highlighting the quality of the portfolio. Operational momentum remained strong, supported by continued Clearwater development, expanding waterflood activity, and lower operating costs, which improved capital efficiency and helped sustain top-tier profitability. With production guidance maintained, reserve value continuing to build, and active share repurchases supporting capital returns, sentiment strengthened around the durability of free cash flow. CEU performed well as record results reinforced its strong competitive position across both production chemicals and drilling fluids. Market share gains in Canada and the U.S., together with strong margins, supported another quarter of top-tier profitability despite a mixed industry backdrop. The company also increased its dividend and continued to buy back shares, reinforcing confidence in free cash flow generation and capital returns.
During the month of March, the Fund initiated positions in Cenovus Energy (CVE), Aecon Group (ARE), Aritzia (ATZ), and Bird Construction (BDT).
CVE is an integrated oil and gas company with a high-quality portfolio of long-life oil sands assets and downstream refining operations. The company is expected to realize significant cost synergies from the MEG acquisition, with additional upside possible as integration progresses and redevelopment performance improves. It also offers meaningful free cash flow leverage to stronger oil prices and refining crack spreads, supported by growing upstream production, improving downstream reliability, and a strengthening balance sheet.
ARE is a leading construction and infrastructure development company with expertise across civil, nuclear, utilities, and industrial markets. The company’s risk profile is improving as legacy fixedprice project exposure continues to run off, with the final large legacy project nearing substantial completion. At the same time, its business mix is increasingly shifting toward utilities and nuclear, where secular demand trends remain strong and backlog visibility is high. With a near-record backlog, improving margin outlook, and growing exposure to more attractive end markets, it is well positioned for stronger growth and a narrowing valuation discount.
ATZ is a vertically integrated apparel retailer with a strong omni-channel model and a growing portfolio of exclusive brands across North America. The company has significant expansion opportunities in the U.S. market, where its store base remains well below that of major peers and new locations continue to drive brand awareness and customer acquisition. Strong execution across inventory, digital engagement, and marketing is supporting momentum, while a high-return store rollout strategy provides a long runway for profitable growth.
BDT is a Canadian construction services provider with growing exposure to industrial, infrastructure, and specialized end markets. The company enters 2026 with a record backlog and strong fiscal tailwinds, supporting a clear path to double-digit revenue growth as delayed maintenance work returns and activity ramps through the year. Its revenue mix is also improving, with a greater contribution from specialized and recurring work such as nuclear remediation, defence infrastructure, and other higher-quality programs. With strong backlog visibility, favourable end-market demand, and an improving margin profile, it is well positioned for sustained growth.
For the first quarter of 2026, CVM outperformed its benchmark by 14.9%, with a return of 18.8% versus a return of 3.9% on the Index. Top contributors to the performance were Spartan Delta (SDE), CES Energy Solutions (CEU), and Firan Technology Group (FTG). SDE and CEU were also among the top performers in March and were previously discussed in the monthly section above. FTG moved higher as strong orders and new defence program wins reinforced confidence in the durability of demand across its aerospace and defence end markets. Backlog expanded meaningfully and provided improved visibility into near-term revenue growth, while increasing exposure to classified defence programs and broader NATO-related spending supported a more constructive medium-term outlook. With demand remaining robust across market segments and growth opportunities expanding in both existing and new programs, sentiment strengthened around the durability of growth and returns.
The Fund held a 1.4% 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 2026 and beyond.
1Standard performance as at March 31, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 52.8%, 3 year: 22.8%, 5 year: 15.9%, 10 year: 13.1%, Since Inception (August 29, 2014): 11.5%.
S&P/TSX Composite Total Return Index: 1 Year: 34.8%, 3 year: 21.2%, 5 year: 15.2%, 10 Year: 12.6%, Since Inception (August 29, 2014): 9.8%.
2Actual Investments, first purchased: SDE 8/6/2025, TVE 8/6/2025, CEU 12/4/2025.
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: April 14, 2026.