Month End Recap:
For the month of May, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 4.5% versus a gain of 5.6% for the S&P/TSX Composite Total Return Index (Index)¹. From a sector standpoint, Industrials, Consumer Discretionary, and Information Technology were relative outperformers, whereas Healthcare, Consumer Staples, and Utilities underperformed.
Top performers in the month of May were Atkinsrealis (ATRL), Fairfax Financial (FFH), and Element Fleet Management (EFN)². ATRL moved higher after its earnings release as investors responded positively to strong results and an improved outlook, particularly in the nuclear segment, which delivered standout growth and continues to benefit from long-term industry tailwinds like electrification and decarbonization. Management raised its multi-year expectations for this segment, highlighting sustained demand momentum. The company also reported robust backlog growth and solid execution across core operations, reinforcing confidence in its strategy and margin trajectory. FFH rose following earnings as results eased concerns around the California wildfire-related losses and highlighted the strength of its diversified insurance platform. Despite elevated catastrophe costs, the company posted an underwriting profit, while strong investment gains and stable income from core insurance operations further supported sentiment. The quarter demonstrated the company’s resilience in volatile conditions, reinforcing investor confidence. EFN rerated higher as 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.
During the month of May, the Fund initiated positions in Stantec (STN), Badger Infrastructure Solutions (BDGI), and Thomson Reuters (TRI).
STN provides consulting, engineering, and design services to private and public clients in the infrastructure, commercial, environmental, and energy end markets. The company is benefitting from a strong demand backdrop, supported by a healthy project pipeline. Additionally, its mergers & acquisitions activity is expected to pickup as its balance sheet continues to strengthen.
BDGI is North America’s largest hydro-excavation service company targeting construction, infrastructure, utilities and oil & gas end markets. The company is well-positioned for continued upside, driven by strong end-market demand and improving operational execution. Its manufacturing segment is benefiting from enhanced efficiencies, supporting margin expansion and throughput. Its management is targeting additional corporate-wide efficiency gains through 2026, which should further bolster earnings. Furthermore, ongoing fleet utilization optimization is expected to enhance asset productivity and capital efficiency.
TRI is a leading global provider of intelligent information services, holding a top two market position across most of the key sectors it serves. Its core end markets include legal and tax & accounting. The company has significant balance sheet capacity to pursue tuck-in acquisitions that enhance its strategic positioning. It is increasingly allocating both organic and inorganic investment toward higher-growth segments benefiting from long-term secular tailwinds. Additionally, its AI-powered CoCounsel platform is experiencing strong adoption and rapid growth, reinforcing TRI’s competitive edge in legal technology.
The Fund held an 8.1% 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 May 31, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 13.9%, 3 year: 6.3%, 5 year: 11.6%, 10 year: 9.6%, Since Inception (August 29, 2014): 8.6%.
S&P/TSX Composite Total Return Index: 1 Year: 21.0%, 3 year: 11.5%, 5 year: 14.9%, 10 Year: 9.0%, Since Inception (August 29, 2014): 8.1%.
2Actual Investments, first purchased: ATRL 5/27/2024, FFH 3/21/2024, EFN 12/6/2023.
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: June 18, 2025.