Month End Recap:
For the month of May, the Caldwell Canadian Value Momentum Fund (CVM or Fund) outperformed the benchmark, returning 2.6% versus a return of 2.5% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Communication Services, Materials and Financials were relative outperformers while Health Care, Energy and Consumer Staples underperformed.
Top performers in the month of May were Firan Technology Group (FTG), 5N Plus (VNP) and Hammond Power Solutions (HPS)2. FTG supplies high-reliability printed circuit boards, illuminated cockpit panels, and electronic subsystems for the global aerospace and defense sectors. The company’s balance sheet is strong with low leverage and ample liquidity to fund ongoing organic expansion. FTG is riding a multi-year structural upswing supported by robust backlogs tied directly to high-profile space and military cockpit programs. Lastly, recent strategic facility expansions and international acquisitions are boosting its production footprint to capture a greater share of western defense spend which is expected to remain elevated over the medium term given the heightened global threat environment. VNP produces high-purity specialty materials and advanced semiconductor substrates utilized in advanced electronics, clean energy, space hardware, and pharmaceutical end markets. Accelerating artificial intelligence (AI) infrastructure spending drives significant secular demand for advanced electronic materials, supporting strong demand visibility. Additionally, VNP is benefiting from Western governments aggressively prioritizing domestic supply chain security and friend-shoring initiatives for critical minerals which adds to a durable demand outlook over the medium to long term. Lastly, VNP’s earnings in May highlight accelerating growth momentum, as evidenced by a strong beat and raise quarter. HPS is a prime “pick-and-shovel” play on the electrification super-cycle, benefiting from a record $310 million backlog driven by surging demand for custom transformers in data centers, electric vehicle (EV) infrastructure, and renewable energy grids. Momentum in the shares continued to build off the company’s strong Q1 2026 results which showcased impressive operating leverage as they successfully pass through raw material costs while increasing manufacturing capacity in Mexico and Canada. A fortress balance sheet and a dominant market position in North America perfectly position HPS to capture multi-year secular tailwinds as the aging electrical grid undergoes crucial upgrades to prepare for the future.
During the month of April, the Fund initiated positions in Exchange Income Corp (EIF), Calian Group (CGY) and Russel Metals (RUS).
EIF is a diversified, acquisition-oriented conglomerate focusing on essential regional aerospace services, northern aviation transportation and niche industrial manufacturing. The company’s business model is built entirely around resilient, non-discretionary operations that generate highly visible and durable cash flows across economic cycles. Its aviation segment continues to unlock premium growth levers via new specialized defense contracts and high-barrier infrastructure additions like Canada’s first Level D King Air pilot simulator. These predictable cash flows and ample liquidity support the company’s dividend and acquisition program, which drives future growth.
CGY delivers specialized business services and engineering solutions across health care, defense cyber and space/satellite end markets. The company’s strong beat on Q2 F26 earnings in early May build upon robust results in recent quarters and highlight the robust demand environment. Earnings growth is fundamentally secured by a massive, high-margin record backlog of $1.5B, which features over $1B in pure defense and space sector components. To sustain this growth path, management maintains a clean balance sheet to aggressively execute accretive M&A strategy.
RUS operates as one of the largest metals distribution, steel service center, and value-added metal processing solutions providers in Canada and the United States. The company is experiencing immediate thematic tailwinds from the peak physical construction phase of mega-cap industrial policies – such as the CHIPS Act and the Inflation Reduction Act – which demand unprecedented volumes of precision-engineered, laser-cut structural steel for localized semiconductor fabrication plants and advanced data centers. Furthermore, a generational expansion across the continental energy grid and pipeline networks to support AI-driven power infrastructure provides a long-term, non-discretionary volume floor for the firm’s specialized industrial metals division.
The Fund held a 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 May 31, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 58.9%, 3 year: 27.6%, 5 year: 15.6%, 10 year: 13.9%, Since Inception (August 29, 2014): 12.2%.
S&P/TSX Composite Total Return Index: 1 Year: 36.1%, 3 year: 24.6%, 5 year: 15.3%, 10 Year: 12.8%, Since Inception (August 29, 2014): 10.3%.
2Actual Investments, first purchased: FTG 8/21/2025, VNP 6/5/2025, HPS 7/17/2025.
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: June 8, 2026.