Month End Recap:
For the month of June, the Caldwell Canadian Value Momentum Fund (CVM or Fund) declined 2.2% versus a slightly positive return of 0.5% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Financials, Consumer Staples and Health Care outperformed while Gold, Materials and Communications Services were relative underperformers.
Top performers in the month of June were Bird Construction (BDT), Hammond Power Solutions (HPS) and Exchange Income Corporation (EIF)2. Momentum in BDT was primarily driven by continued post-earnings tailwinds and macro industry updates highlighting resilient Canadian infrastructure and manufacturing spend. Following a massive Q1 earnings beat (EPS beat consensus by ~30% alongside a record $5.4 billion backlog), analysts continued to aggressively revise targets upward through June. Expectations for a sharp acceleration in project execution and margin expansion heading into Q2 and the second half of 2026 pushed the stock higher. HPS closed the acquisition of AEG power solutions which bolsters the company’s presence in Europe, expands the product portfolio beyond the core transformer business and improves the revenue mix by adding higher-margin services and aftermarket capabilities. We believe HPS is a well-run company and remains one of the few pure-play ways to capitalize on the AI infrastructure buildout in Canada. EIF’s business model is built entirely around resilient, non-discretionary operations that generate highly visible and durable cash flows across economic cycles which were well appreciated given a softening macro environment in Canada. 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.
During the month of June, the Fund initiated positions in Manulife Financial (MFC), Badger Infrastructure (BDGI), Finning International (FTT), Hudbay Minerals (HBM) and Capital Power (CPX).
MFC is a major Canadian diversified financial services group providing life insurance, wealth management, and retirement solutions globally, MFC capitalizes on long-term structural demographic growth and accelerating insurance penetration across its high-margin Asian markets. Its massive wealth and asset management segments yield resilient, recurring fee-based income that balances cyclical underwriting segments, while its aggressive deployment of AI-driven underwriting platforms continuously expands operating efficiency and customer retention.
BDGI is the largest provider of non-destructive hydrovac soil excavation services in North America, BDGI benefits from highly resilient demand driven by the continuous buildout of data center megaprojects, grid modernization, and municipal utility infrastructure. Its specialized, high-margin excavation fleet commands severe pricing power over alternative mechanical digging methods by significantly reducing underground pipeline damage and corporate liability, while its expanding capacity and capital flexibility position it to easily scale operations without diluting utilization rates.
FTT is the world’s largest premier distributor and dealer of Caterpillar heavy machinery, power systems, and aftermarket support, FTT captures multi-year secular tailwinds from Western Canadian LNG projects, South American copper mining expansions, and global infrastructure investments. The company utilizes a highly integrated, recurring parts and predictive maintenance services model to lock in enterprise clients and insulate its aggregate cash flows from the standard cyclical volatility of heavy equipment purchasing, while its advanced digital telematics continuously improve fleet utilization and client operating margins.
HBM is a diversified base and precious metals mining company focused on the exploration, development, and production of copper, gold, zinc, and silver across the Americas, HBM serves as a premier institutional vehicle for structural global electrification and grid modernization trends. Its exceptional asset mix—anchored by record EBITDA performance from its Constancia and Snow Lake operations—balances base industrial metal volatility with defensive, high-margin precious metals exposure, while imminent grade improvements and mine-life extensions across its Copper Mountain asset lock in long-term production growth.
CPX is a growth-oriented independent power producer that develops, acquires, and operates utility-scale renewable and flexible natural gas generation facilities across Canada and the United States, CPX utilizes long-term contracted and merchant power portfolios to capture reliable cash flow insulation amid volatile energy rotations. The corporate transition away from coal-fired generation to 100% natural gas and scalable battery storage positions it perfectly to meet the soaring load requirements of industrial data centers, while its disciplined history of accretive M&A roll-ups supports a predictable, multi-year dividend growth profile.
Quarterly Performance
For the second quarter of 2026, CVM outperformed the benchmark, returning 7.5% vs. 7.0% for the Index. Top performers in the second quarter were Hammond Power Solutions (HPS), Bird Construction (BDT) and Aritzia (ATZ). HPS and BDT were discussed in the monthly performance section above. ATZ continues to execute on its U.S. growth strategy. The company has consistently grown at 30%+ over the last six quarters and the U.S. now accounts for two thirds of total sales. We expect the company to continue producing industry-leading growth driven by multi-year share gain opportunity ahead. Momentum was supported by strong FY 2027 sales guidance and numerous analyst upgrades and price target increases.
The Fund held a 5% 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 June 30, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 53.6%, 3 year: 25.0%, 5 year: 14.4%, 10 year: 13.7%, Since Inception (August 29, 2014): 11.9%.
S&P/TSX Composite Total Return Index: 1 Year: 32.9%, 3 year: 23.5%, 5 year: 14.9%, 10 Year: 12.8%, Since Inception (August 29, 2014): 10.3%.
2Actual Investments, first purchased: BDT 3/30/2026, HPS 7/17/2025, EIF 5/27/2026.
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: July 10, 2026.