September 2019 | Caldwell Canadian Value Momentum Fund Commentary

September Recap:

The Fund declined 1.4% in September versus a gain of 1.7% for the S&P/TSX Composite Total Return Index (“Index”).

The Index saw widespread dispersion of performance with Financials (+6.4%) and Energy (+5.0%) posting strong gains while Materials (-7.5%), Health Care (-7.4%), and Technology (-7.1%) saw substantial declines.

Much of the movements were macro-driven, with Financials responding to a sharp reversal in interest rates, while investors revisited the beaten-down Energy sector following a drone strike on Saudi oil production. Meanwhile, Industrials (-2.4%) moved lower with weak global industrial production data and continued trade uncertainty, while Gold (-10.6%) led the Materials sector lower.

Top CCVMF performers in September were GoEasy (“GSY”: +10.7%) and Metro (“MRU”: +3.3%).

GSY entered into a strategic partnership agreement that will expand its distribution into point-of-sale consumer financing.

We saw no news on Metro.

The Fund was led lower by Kirkland Lake (“KL”: -8.3%) and Cargojet (“CJT”: -8.6%), both of which were top performers in August. We look forward to this upcoming earnings season as a catalyst for investors to re-focus on company-specific fundamentals. 

No stocks were added to the portfolio in September. 

The Fund held a 20.8% cash weighting at month-end. The CCVMF has generated substantial value to 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 2019 and beyond.

We thank you for your continued support. 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund 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.

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 368 constituents in the Canadian Equity category and 5 of a total of 110 constituents in the Canadian Small/Mid Equity category.

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: October 15, 2019.

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

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