Month End Recap:
For the third quarter of 2026, the Caldwell Canadian Value Momentum Fund (CVM or Fund) returned -5.4% versus +1.6% for its benchmark, the S&P/TSX Composite Total Return Index1. From a sector standpoint, Information Technology, Materials, Energy were the strongest benchmark sectors, while Utilities, Real Estate, Communication Services were the weakest.
The top contributors during the third quarter were Bird Construction (BDT), Mullen Group (MTL) and Russel Metals (RUS), while the largest detractors were Trekor Metals (TKO), WELL Health Technologies (WELL) and Badger Infrastructure Solutions (BDGI)2.
BDT benefited from sustained demand for infrastructure, institutional and industrial construction projects, supported by its substantial backlog and diversified project pipeline. Investor confidence in the company’s ability to execute on higher-value projects while delivering continued margin improvement supported positive momentum in the shares. MTL benefited from growing optimism surrounding a recovery in Canadian freight markets, alongside improved profitability across its transportation operations. Strong second-quarter results, disciplined cost management and contributions from strategic acquisitions reinforced expectations for stronger earnings and cash flow. RUS benefited from improving sentiment toward the metals distribution industry as investors anticipated a recovery in industrial activity and customer demand. The company’s operating leverage, diversified distribution network and strong balance sheet positioned it to capitalize on a potential recovery in shipment volumes and profitability. TKO detracted from performance amid volatility in the shares, reflecting uncertainty surrounding the development prospects and valuation of an early-stage mining company. The company’s sensitivity to commodity prices, financing conditions and project execution contributed to heightened investor uncertainty during the quarter. WELL weighed on performance as investors reassessed its near-term growth outlook and valuation against a backdrop of uncertainty surrounding the digital healthcare sector. Concerns regarding the sustainability of organic growth and the company’s ability to translate its expanding operations into stronger profitability contributed to weaker sentiment. BDGI detracted as investors remained cautious about the outlook for industrial activity and infrastructure-related spending across its North American markets. Expectations for softer customer demand and potential pressure on equipment utilization weighed on sentiment toward the company’s specialized excavation services.
For the month of September, the Caldwell Canadian Value Momentum Fund (CVM or Fund) returned +2.0% versus a decline of -2.6% for its benchmark, the S&P/TSX Composite Total Return Index. From a sector standpoint, Information Technology, Health Care and Financials were the strongest sectors, while Energy, Materials and Communication Services were the weakest.
The top performers during September were Bird Construction (discussed above), Firan Technology Group (FTG) and Russel Metals (discussed above). Firan Technology Group benefited from its exposure to aerospace and defence markets, where aircraft production requirements and elevated defence spending support demand for its specialized electronic components. The company’s investments in manufacturing capacity and operational efficiencies position it to capitalize on growing order volumes while improving profitability. Its favourable demand outlook, combined with expectations for continued earnings growth, supported positive momentum in the shares.
During September, the Fund initiated positions in Ero Copper (ERO), Great-West Lifeco (GWO), CES Energy Solutions (CEU), Trekor Metals (TKO), Total Energy Services (TOT), Surge Energy (SGY), Altius Minerals (ALS).
ERO is a Brazilian copper producer with operating mines and development assets. The investment thesis centres on higher copper production as ongoing mine investments and ramp-ups translate into increased throughput. Stronger operating execution and favourable copper prices could support improved unit costs and free cash flow.
GWO is a diversified life insurer and wealth manager with operations in Canada, the United States and Europe. Growth in its wealth and retirement platforms offers an opportunity to expand recurring fee-based earnings. Consistent capital generation and disciplined capital deployment support dividends, repurchases and long-term shareholder returns.
CEU supplies specialized drilling fluids and production chemicals to oil and gas producers. Its differentiated formulations and customer relationships provide opportunities to gain market share even in a relatively subdued drilling environment. An expanding production-chemicals business and disciplined working-capital management could support more resilient margins and cash flow.
TKO is an early-stage metals company whose investment case is tied to the advancement of its mineral assets. Successful exploration and project development could increase confidence in the scale and economic value of its resource base. Progress on technical milestones and financing would be important catalysts, although execution and funding risks remain significant.
TOT provides contract drilling and other equipment-based services to the energy industry. Higher equipment utilization and improved pricing could generate meaningful operating leverage as producer activity strengthens. A disciplined approach to fleet investment and capital allocation offers the potential to improve free cash flow across the cycle.
SGY is a Canadian oil producer with a portfolio of conventional assets. Its production base offers leverage to crude oil prices, while operating efficiencies and disciplined spending could improve cash flow per barrel. Free cash flow generation creates capacity for balance-sheet improvement and shareholder distributions.
ALS holds mineral royalties and project interests across a diversified portfolio of commodities and development stages. Its royalty structure provides exposure to future production growth without bearing the full operating and capital costs of mine development. Project advancements and new royalty additions could increase long-term cash flow and the underlying value of its portfolio.
In each of the foregoing cases, the position will be monitored against operating results, valuation and evidence that the expected drivers are translating into sustainable earnings and cash flow.
The Fund held a 3.2% cash weighting at quarter-end. While we remain mindful of the macroeconomic environment, the Fund employs a bottom-up investment approach designed to identify attractive company-specific opportunities. We continue to emphasize disciplined portfolio construction, fundamental catalysts and risk management with the objective of delivering compelling long-term risk-adjusted returns for investors.
1Standard performance as at September 30, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 29.8%, 3 year: 22.2%, 5 year: 13.1%, 10 year: 12.2%, Since Inception (August 29, 2014): 11.1%.
S&P/TSX Composite Total Return Index: 1 Year: 20.0%, 3 year: 25.1%, 5 year: 15.2%, 10 Year: 12.4%, Since Inception (August 29, 2014): 10.2%.
2Actual Investments, first purchased: BDT 3/30/2026, MTL 4/27/2026, RUS 7/16/2026.
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: October 19, 2026.