Month End Recap:
For the month of October, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 4.9% versus a gain of 1.0% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Information Technology, Healthcare, and Utilities were relative outperformers, whereas Materials, Real Estate, and Consumer Staples underperformed.
Top performers in the month of October were Hammond Power Solutions (HPS.A), Enerflex (EFX), and Badger Infrastructure Solutions (BDGI)2. HPS.A moved higher as its quarterly earnings highlighted strong demand for its transformers used in data centers and electrical infrastructure. The company reported a sharp rebound in its order backlog, with new bookings after the quarter already exceeding half of its quarter-end backlog, giving strong visibility into future shipments and revenue strength. Temporary margin pressure was offset by expectations for recovery as recent price increases take hold and new facilities operate at higher utilization. With capacity expansion underway and data center projects growing rapidly, the outlook for continued volume growth and improving profitability strengthened investor confidence. EFX continued to rerate higher as it is benefiting from a strong recovery in its Engineered Systems segment, supported by improved bookings and healthy margins, while its recurring Energy Infrastructure and After-Market Service platforms provide a stable earnings base. Rising natural gas demand, underpinned by the buildout of North American LNG (Liquefied Natural Gas) capacity, positions the company well for multiyear growth. Management has expanded the U.S. contract compression fleet and strengthened the balance sheet, enabling increased shareholder returns alongside growth investments. BDGI maintained its momentum as the company benefits from strong end-market demand and improving operational execution. Its manufacturing segment is delivering enhanced efficiencies, supporting both margin expansion and increased throughput. Management is targeting additional corporatewide efficiency gains through 2026, which should further bolster earnings, while ongoing fleet utilization optimization is expected to improve asset productivity and capital efficiency. These factors have reinforced investor confidence in the company’s multi-year growth trajectory.
During the month of October, the Fund initiated positions in Extendicare (EXE), OceanaGold (OGC), and K92 Mining (KNT).
EXE is a leading Canadian provider of senior care services, operating long-term care homes alongside home healthcare and managed service platforms. The company is benefiting from ongoing industry consolidation, which supports scale, efficiency, and stronger competitive positioning. Its strategic shift toward a capital-light model—driven by increased exposure to Home Healthcare and Managed Services—enhances margins, improves returns, and lowers earnings volatility. A joint-venture approach to redeveloping assets further reduces capital requirements while maintaining growth optionality, supporting a more efficient balance sheet and a more durable long-term growth profile.
OGC is a multinational gold and copper producer with a diversified portfolio of long-life assets across North America and Asia-Pacific. The company is entering a period of elevated 2025 capital spending designed to advance key growth projects and meaningfully expand its production profile. This investment phase sets the foundation for a strong inflection in output and free cash flow in 2026, improving operating leverage and strengthening the balance sheet. With a clear path to higher volumes and lower unit costs, the company is positioned to deliver stronger financial performance and enhanced shareholder outcomes.
KNT is a junior gold and copper producer operating a high-grade mine with a large and expanding resource base in Papua New Guinea. The company offers substantial production and exploration upside, supported by ongoing expansions that enhance throughput and unlock additional high-grade zones. Strong drilling success continues to extend mine life and improve the scale of future development, reinforcing a long runway for growth. With meaningful resource optionality and a proven ability to convert exploration into production, it is well positioned to sustain momentum and build long-term value.
The Fund held a 4.7% 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 October 31, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 31.1%, 3 year: 15.5%, 5 year: 14.3%, 10 year: 11.9%, Since Inception (August 29, 2014): 10.0%.
S&P/TSX Composite Total Return Index: 1 Year: 28.7%, 3 year: 19.5%, 5 year: 17.6%, 10 Year: 11.7%, Since Inception (August 29, 2014): 9.3%.
2Actual Investments, first purchased: HPS.A 7/17/2025, EFX 8/8/2025, BDGI 5/14/2025.
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: November 20, 2025.