May 2024 | Caldwell Canadian Value Momentum Fund Commentary

Month End Recap:

For the month of May, the Caldwell Canadian Value Momentum Fund (“CVM” or “Fund”) gained +3.2% versus a gain of +2.8% for the S&P/TSX Composite Total Return Index (“Index”). From a sector standpoint, Materials, Utilities, and Consumer Staples were relative outperformers, whereas, Healthcare, Information Technology, and Consumer Discretionary underperformed.

Top performers in the month of May were Cameco (“CCO”), Celestica (“CLS”), and Eldorado Gold (“ELD”). CCO continued to perform well, driven by a robust demand backdrop, as the demand for nuclear power generation has been increasing, and supply security has become ever more relevant for utilities, as well as governments around the world, given the current geopolitical landscape. CLS rerated higher as the company confirmed that it continues to benefit from the Generative Artificial Intelligence (“AI”) data spending that is being done by the hyperscalers. ELD performed well as the company’s strong earnings per share considerably exceeded the market expectations, driven by strong gold production. This also signalled a high probability of the company delivering a strong remainder of the year, as management expects this year to be a back-half weighted year.

During the month of May, the Fund initiated a position in Hudbay Minerals (“HBM”). HBM is a producer of copper, gold, silver, zinc, and molybdenum, with its mining operations in Peru and Canada, as well as a copper project in Arizona, U.S.A. Improving operational execution, coupled with the company’s optimization initiatives in Peru, Manitoba, and British Columbia, positions the company well for attractive near-term upside.

The Fund held a 1.8% 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 May 31, 2024:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 14.8%, 3 year: 4.4%, 5 year: 9.5%, Since Inception (August 29, 2014): 8.1%.
S&P/TSX Composite Total Return Index: 1 Year: 17.6%, 3 year: 7.4%, 5 year: 10.1%, Since Inception (August 29, 2014): 6.9%.
Actual Investments, first purchased: CCO 5/31/2023, CLS 1/19/2024, ELD 4/1/2024.

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: June 13, 2024.

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