| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 4% | 4% |
Pender Small Cap Opportunities Fund delivered 4.0% returns in Q1 2026 amid volatile markets that saw small-cap technology bear significant pressure from AI-driven disruption fears. The managers capitalized on sector rotation toward energy and materials, benefiting from geopolitical tensions and rising commodity prices following the US-Israel-Iran conflict and Strait of Hormuz closure. Top contributors included General Fusion (aligned with energy transition themes), Saturn Oil & Gas (up 150% on oil price surge), and 5N Plus (specialty materials producer with conservative 2026 guidance implying 100% growth). Technology detractors included Coveo and PAR Technology, caught in broader software pessimism despite solid fundamentals. The portfolio rotated back toward core technology expertise, using resource holding strength to fund redeployment into areas with greatest research advantage. With 85.2% Canadian and 14.2% US equity exposure, the managers remain confident that current valuation compression in quality small-cap businesses will create recovery opportunities as companies prove business model durability in an AI-first economy.
The fund focuses on identifying undervalued small-cap businesses with strong economic characteristics trading at attractive valuations, particularly in technology and software sectors where current valuation compression creates long-term opportunities despite near-term AI-driven disruption.
The managers remain confident in the long-term outlook despite near-term volatility. They believe current valuation compression is setting the stage for recovery driven by solid underlying growth and accelerated AI integration. The outlook for the remainder of 2026 hinges on companies successfully proving the durability of their business models in an AI-first economy.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 15 2026 | 2026 Q1 | CVO.TO, PAR, SOIL.TO, SYZ.TO, VNP.TO | AI, Canada, energy, small caps, software, technology, valuation |
SOIL.TO VNP.TO CVO.TO PAR |
Pender Small Cap delivered 4.0% in Q1 2026 despite tech volatility from AI disruption fears. Energy holdings like Saturn Oil & Gas surged 150% on geopolitical supply shocks while software names like Coveo faced pressure. Managers used resource strength to rotate back into undervalued technology opportunities, believing current compression creates long-term value as AI integration accelerates. |
| Jan 13 2026 | 2025 Q4 | DND.TO, FDY.TO, GRID.TO, NGEX.TO, PAR, PNG.TO, SYZ.TO, TCS.TO, VNP.TO | Canada, Defense Spending, Energy Transition, Quality, small caps, value |
VNP CN GRID CN |
Pender Small Cap delivered 5.7% in 2025 despite market volatility, led by defense and energy transition plays including Kraken Robotics and grid modernization specialist Tantalus Systems. After years of small-cap underperformance, managers see improved opportunity sets in quality Canadian businesses trading at compelling valuations, maintaining disciplined focus on competitively advantaged companies. |
| Oct 16 2025 | 2025 Q3 | BDI.TO, CMG.TO, DCBO.TO, DND.TO, DNTL.TO, GRID.TO, MDA.TO, NFI.TO, PNG.TO, QIS.TO | Canada, defense, M&A, small caps, technology, value |
PNG PNG |
Pender Small Cap Fund gained 2.0% in September with small caps outperforming large caps globally. M&A activity drove performance with dentalcorp and Quorum takeouts at significant premiums. Kraken Robotics benefits from defense spending tailwinds. Despite stretched valuations and macro uncertainty, small caps offer attractive relative value with mean reversion potential. |
| Jul 11 2025 | 2025 Q2 | CVO.TO, GRID.TO, HPS-A.TO, LSPD.TO, VNP.TO | AI, Canada, Energy Transition, Enterprise Software, growth, small caps, Trade Policy, volatility |
CVO CN LSPD CN CVO.TO |
Pender's Small Cap Fund rebounded strongly with 11.0% Q2 returns despite tariff-driven volatility. Energy Transition holdings drove outperformance while AI-focused Coveo became the largest position at an attractive valuation. The fund maintains thematic focus on AI, Energy Transition, Enterprise Software and Geopolitics to capture long-term value creation opportunities in Canadian small caps. |
| May 5 2025 | 2025 Q1 | DND.TO, KITS.TO, MAU.V, STC.TO, TVK.TO, VCM.TO, WELL.TO | Canada, healthcare, materials, small caps, technology, Trade Policy, value, volatility | TVK.TO | Small cap stocks are attractively priced despite Q1 underperformance driven by technology exposure and trade policy uncertainty. Market dynamics have shifted toward passive flows and social media narratives, creating volatility that the fund hedges with put options. Management remains cautious but sees opportunity in current valuations for long-term alpha generation. |
| Jan 27 2025 | 2024 Q4 | DTOL.TO, GLASF, LSPD.TO, MDA.TO, NFI.TO, PNG.V, SIS.TO, SYZ.TO, WISH.V | Canada, contrarian, Hedging, small caps, technology, value |
MDA.TO LSPD.TO |
Pender Small Cap delivered 58.8% annual returns through contrarian investing in Canadian small caps. Strong performance from MDA Space, Kraken Robotics, and D2L drove results. Despite portfolio conviction, managers are hedging with puts and trimming winners given market volatility. Added Lightspeed Commerce as M&A candidate while maintaining disciplined risk management approach. |
| Oct 7 2024 | 2024 Q3 | ARR.TO, AVNW, BL, DND.TO, MDA.TO, THNC.TO, TVK.TO | Canada, growth, Resources, small caps, Space, value | MDA.TO | Pender Small Cap delivered 11.3% in Q3, extending strong momentum with 38.4% year-to-date returns. Key highlight was opposing Altius Renewable's opportunistic $12 buyout, believing fair value is $18. Added MDA Space to capitalize on secular space industry growth. Portfolio concentrated in high-quality growth names with strong conviction in current positioning. |
| Jul 29 2024 | 2024 Q2 | AVNW, CHW.TO, CPLF.TO, DND.TO, DTOL.TO, SYZ.TO, TVK.TO | Canada, Education, growth, M&A, small caps, technology, value | DTOL.TO | Pender Small Cap delivered 4.3% Q2 returns driven by Copperleaf acquisition, outperforming TSX Composite's -0.5%. Fund maintains high conviction in quality Canadian small caps with D2L education software addition at significant discount to private valuations. Recent ETF flows favor small caps over large caps, suggesting performance divergence may reverse as headwinds turn to tailwinds. |
| Apr 16 2024 | 2024 Q1 | ATZ.TO, KSI.TO, TCXT.V | Canada, Cannabis, fundamentals, growth, M&A, small caps, technology | KSI.TO | Pender's small cap fund surged 18.9% in Q1 as company fundamentals drove performance, with 55% of holdings reporting record revenues. The managers see early innings of a technology small cap rebound, positioning through M&A beneficiaries and cannabis regulatory catalysts while headwinds reverse and attractive valuations persist. |
| Jan 17 2024 | 2023 Q4 | THNC.TO | Canada, M&A, Risk Appetite, small cap, technology, value | THNC.TO | Small cap fund outperformed in volatile Q4 while concentrating portfolio quality. Despite structural headwinds from passive investing, managers see encouraging signs in market breadth improvement and stabilizing rates. Expect M&A revival and IPO recovery as catalysts. Thinkific exemplifies inflection point strategy with 42% gain on profitability return. Optimistic on three to five year outlook. |
| Oct 12 2023 | 2023 Q3 | HEO.TO | cycle, fundamentals, Quality, small caps, value | - | Small caps are positioned for multi-year outperformance cycle similar to early 2000s setup. Extreme valuation discounts to large caps and trough valuations create opportunity as risk appetite returns. Fund adding high-conviction positions in quality businesses at distressed prices, expecting re-rating and M&A activity to drive returns over next 5-10 years. |
| Jul 13 2023 | 2023 Q2 | CPLF.TO, MAGT.TO, PAR, SYZ.TO | AI, small caps, technology, valuation, value |
IPAR CPLF.TO SYZ.TO |
Small caps trade at historically wide discounts to large caps, reminiscent of early 2000s when small caps subsequently outperformed for six years. Fund maintains AI exposure through data-advantaged companies while focusing on balance sheet quality amid higher rates. Recent board appointment at Sylogist and successful exit from acquired Magnet Forensics demonstrate active engagement approach. |
| Apr 19 2023 | 2023 Q1 | CPLF.TO, MAGT.TO, SYZ.TO | Banking, Canada, M&A, small caps, technology, value | - | Small-cap stocks trade at historic discounts to large caps, creating compelling opportunities for quality companies. The fund returned 2.9% in Q1 despite macro volatility and banking sector stress. Portfolio rotation focuses on higher quality names with strong fundamentals. Increased M&A activity expected as valuations become acceptable to sellers and buyers deploy cash. |
| Jan 18 2023 | 2022 Q4 | BRND/U CN, MAXR CN | - | - | |
| Oct 17 2022 | 2022 Q3 | PAR | - | - | |
| Aug 25 2022 | 2022 Q2 | KXS CN, MAGT CN, STC CN | - | - | |
| May 13 2022 | 2022 Q1 | MAGT CN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIThe fund views AI as both a disruptive force causing near-term volatility in software stocks and a long-term opportunity. They see companies like Coveo as beneficiaries of AI rather than facing existential risk, and PAR Technology's Coach AI product reached deployment across nearly 900 stores. |
Software Technology Disruption Enterprise Deployment |
Energy TransitionGeneral Fusion represents a structural investment theme around global energy transition and rising AI/digital infrastructure energy demand. The company is going through a public listing process expected to close mid-2026. |
Nuclear Infrastructure Digital Structural Public | |
OilEnergy sector outperformed driven by geopolitical backdrop and rising commodity prices. The US-Israel-Iran conflict disrupted global supply chains and triggered a systemic energy supply shock following closure of the Strait of Hormuz. Saturn Oil & Gas benefited significantly from this environment. |
Geopolitical Supply Commodities Canada Shock | |
Small CapsThe fund focuses on identifying opportunities in undervalued small-cap businesses with strong economic characteristics trading at attractive valuations. They believe current valuation compression is setting the stage for recovery driven by solid underlying growth. |
Valuation Growth Recovery Opportunities Compression | |
| 2025 Q4 |
AfricaFund had exceptional performance in 2025 with 67.21% gains, more than doubling 2024's 27% returns and outperforming the 44.7% benchmark. Portfolio remains attractively valued with forward PE of 6.1x and dividend yield of 8.0%, with expected EPS growth of 19.2% in 2026. Manager emphasizes this answers whether it's too late to invest, with emphatic answer being 'No'. |
Frontier Markets Valuation Performance Growth |
LiquidityManager addresses liquidity concerns in African frontier markets, explaining challenges in buying meaningful quantities without affecting prices and potential redemption risks. Notes liquidity varies cyclically and structurally, with theory that bull market should improve liquidity as more investors participate. Discusses how local institutional investors tend to be buy-and-hold, providing structural tailwind. |
Market Structure Trading Redemptions | |
CurrenciesProvides detailed analysis of currency performance across African markets, with West African Franc performing best (0.6% gain vs USD) while Ghanaian Cedi and Nigerian Naira worst performers (declining 12.7% and 10.7% annually). Manager notes active timing strategy to buy when currencies are 'too weak' and emphasizes currency risk exists globally, citing Japanese yen's 31.5% decline. |
Foreign Exchange Risk Management Timing | |
| 2025 Q3 |
Small CapsSmall caps remain attractive on both absolute and relative valuation basis, providing long-term tailwind as mean reversion brings multiples closer to historical averages. US small caps gained 15% in Q3 versus large caps at 10.5%, supported by real earnings growth and attractive relative valuations. |
Value Valuations Mean Reversion Outperformance |
DefenseGlobal defense budgets rising with countries accelerating investment in autonomous undersea systems. Kraken Robotics well-positioned to benefit from mission-critical sonar and battery technologies increasingly integrated across allied naval platforms, supporting modernization efforts amid growing geopolitical and maritime security focus. |
Defense Spending Autonomous Systems Naval Geopolitical | |
Biopharma M&ARenewed momentum in M&A activity unlocking value in several portfolio holdings. dentalcorp acquired by GTCR for 33% premium, Quorum Information Technologies acquired by Valsoft affiliate for 14% premium, demonstrating active consolidation in small cap space. |
Consolidation Premiums Value Unlock Takeouts | |
| 2025 Q2 |
AIThe rapid advancement and adoption of AI technologies across sectors is unlocking new efficiencies, redefining competitive moats and creating outsized growth opportunities, particularly for companies with proprietary data and scalable platforms. Coveo Solutions Inc. is highlighted as an AI-powered enterprise search platform that delivers highly relevant search experiences across websites, e-commerce, customer service and workplace applications. |
Enterprise Software Search Automation Data Analytics SaaS |
Energy TransitionThe global push toward decarbonization is accelerating investment in next-generation energy infrastructure, storage solutions and clean technology enablers, offering compelling tailwinds for innovators in the Energy Transition space. Holdings including 5N Plus Inc., Tantalus Systems Holdings Inc. and Hammond Power Solutions Inc. were among the top contributors to Fund performance. |
Clean Technology Energy Storage Grid Infrastructure Decarbonization Smart Grid | |
Enterprise SoftwareEnterprise Software remains a core pillar of digital transformation, with demand for automation, cloud-native systems and cybersecurity continuing to grow amid transformative shifts driven by AI. The theme is positioned as one of four transformative themes central to driving long-term returns. |
Digital Transformation Cloud Automation Cybersecurity SaaS | |
Trade PolicyThe second quarter was marked by significant volatility driven by Liberation Day tariff announcements on April 2, causing the S&P 500 to plunge nearly 20% before rebounding sharply following the White House's decision to pause most tariffs for a 90-day period. The volatility underscored the market's sensitivity to trade policy developments. |
Tariffs Trade Tensions Policy Uncertainty Market Volatility | |
| 2025 Q1 |
Small CapsSmall cap stocks are very attractively priced on both relative and absolute basis. The small cap universe remains cheap despite macro headwinds and continued market volatility driven by headline news. |
Value Opportunity Pricing Russell 2000 Undervalued |
VolatilityMarket volatility has increased due to passive flows, momentum-based quant funds, and social media driving narratives. The managers are using put options as a strategic hedge to dampen portfolio volatility and take advantage of risk-on/risk-off market moves. |
Put Options Hedging Market Moves Risk Management Uncertainty | |
Trade PolicyTrade policy risks and macroeconomic uncertainty contributed to underperformance, particularly affecting technology stocks. The portfolio is relatively insulated from direct tariff threats due to exposure to technology and healthcare companies. |
Tariffs Policy Risk Uncertainty Technology Healthcare | |
| 2024 Q4 |
Small CapsThe fund focuses exclusively on small cap opportunities, noting that small caps have once again underperformed large caps both in Canada and the US. The managers see pockets of risk-taking emerging in the small cap market, though it is not broad-based as evidenced by overall small cap index performance. |
Small Cap Underperformance Risk Taking Opportunities |
SpaceMDA Space Ltd. was a major contributor, up over 90% from purchase price and contributing 2.4% to quarterly performance. The market quickly repriced the company from an old project-based business to a premium supplier of high margin products to an industry with long-term growth tailwinds. |
MDA Space Aerospace Defense Growth | |
Risk AppetiteThe managers note they are taking a more conservative short-term approach despite high conviction in their portfolio. They have been trimming well-performing stocks and initiated a hedging strategy with Russell 2000 and Nasdaq puts to protect against volatility. |
Hedging Volatility Conservative Risk Management | |
| 2024 Q3 |
SpaceThe space industry is seeing rapid growth driven by growing demand for satellite broadband, declining costs of rocket launches, renewed interest in space exploration and increasing geopolitical importance. The shift to commercialization enables new entrepreneurs to innovate and develop technologies for this fast-growing industry. |
Satellite Broadband Defense Geointelligence Robotics Government IT |
Small CapsSmall caps continue to lag their larger peers despite strong performance in the Canadian market driven by resource-heavy exposure. The fund has outperformed on a relative basis with 11.3% gains in Q3 and 38.4% year-to-date returns. |
Value Growth Canada Outperformance | |
| 2024 Q2 |
Small CapsFund outperformed with 4.3% returns versus -0.5% for TSX Composite. Small cap flows showing strength with $1.9 billion into Russell 2000 ETF while large caps saw $2.1 billion outflows. Significant divergence between small and large cap performance may be reversing. |
Small Caps Russell 2000 Performance Flows Divergence |
Biopharma M&ACopperleaf Technologies acquired for $12.00 per share, representing a major contributor to performance. Manager notes this is an occupational hazard of buying high quality companies as competitors and industry players are motivated to acquire strong early-stage growth companies. |
M&A Takeouts Acquisition Growth Quality | |
Education SoftwareD2L provides cloud-based learning management systems with 14% revenue CAGR and 50% win rate in higher education. Recent spinoff of SkillsWave to focus on core Brightspace platform. Competitor Instructure acquired at 6.6x EV/Revenue versus D2L's 1.9x multiple, highlighting valuation discrepancy. |
LMS Education SaaS Valuation Growth | |
| 2024 Q1 |
Small CapsThe fund focuses on Canadian small cap technology companies that are in the early innings of a rebound from the 2021-2022 selloff. 55% of portfolio companies reported record high revenues, indicating strong fundamental performance. Small caps continue to trade at attractive valuations relative to their history and large cap companies. |
Small Caps Technology Valuations Fundamentals Rebound |
Biopharma M&AM&A activity is returning to the technology sector after a historically slow period. TrueContext Corp was acquired by Battery Ventures at a 39% premium. With stabilized interest rates, both strategic and financial buyers are expected to be highly active, targeting attractively priced small cap companies to revitalize growth rates. |
M&A Technology Premium Growth Acquisition | |
CannabisThe fund initiated a basket position in nine US cannabis companies, anticipating catalysts from potential federal rescheduling and regulatory changes. The industry operates in a grey market due to federal illegality, creating high cost of capital and tax burdens that could be alleviated through rescheduling or legislation like the SAFE Banking Act. |
Cannabis Regulation Rescheduling Banking Legalization | |
| 2023 Q4 |
Small CapsSmall caps continue trading at discount to large caps despite historical outperformance. Market structure changes with passive strategies and HFTs may be creating permanent headwinds. However, Q4 showed encouraging signs with breadth improving and tax loss selling season being less volatile than previous years. |
Small Cap Russell 2000 Valuation Outflows Breadth |
Risk AppetiteRisk appetite increased into year end with small cap flows turning less negative. Canadian market generally lags global markets on risk appetite, which managers view as positive signal heading into 2024. IPO market saw slowest year in Canadian history, indicating extremely low risk appetite in 2023. |
Risk On Fund Flows IPO Volatility Recovery | |
Capital MarketsM&A activity declined 80% from previous year, particularly in technology sector. Rising interest rates and valuation disagreements between buyers and sellers created challenging environment. Stabilizing rates and improved strategic buyer operations expected to drive increased M&A activity in 2024. |
M&A Private Equity Valuations Interest Rates Strategic Buyers | |
| 2023 Q3 |
Small CapsManager believes small caps are at an extreme valuation discount to large caps, similar to early 2000s setup. Historical relationship has moved to an extreme that dramatically favors small cap for the next market cycle. Small caps trading near trough valuations and already priced for uncertain environment ahead. |
Value Cycle Outperformance Discount Rerating |
ValueFund focusing on fundamentals and rotating into high quality businesses at distressed valuations. Manager optimistic about buying businesses they want to own for next ten years at current prices. Companies already discounted and sold off creating opportunity. |
Quality Fundamentals Distressed Long-term Opportunity | |
| 2023 Q2 |
Small CapsSmall caps are trading at historically wide discounts to large caps, with the S&P 600 at 15.2x forward earnings versus S&P 500 at 20.1x. The manager sees parallels to the early 2000s tech bubble aftermath when small caps outperformed for six consecutive years. Most investors are under-allocated to small caps after a decade of large cap outperformance. |
Value Discount Outperformance Allocation |
AIThe fund has exposure to AI through companies like PAR Technologies and Copperleaf Technologies, both of which integrate AI on top of existing proprietary data. The manager believes this approach offers unique advantages as AI innovation accelerates beyond mainstream adoption of ChatGPT. |
Data Innovation Technology Integration | |
| 2023 Q1 |
Small CapsSmall-cap stocks are trading at a significant discount to large caps, with the S&P 600 at 14.5x NTM P/E versus 19x for the S&P 500. This represents a 4.5x discount when historically small caps traded at a premium due to higher growth potential. The manager sees this valuation divergence as creating wonderful opportunities. |
Valuation Discount Premium Growth |
ValueThe fund is rotating into higher quality companies with the best risk/reward profiles during macro-driven markets. Unloved and out of favour stocks are creating opportunities, with the manager focusing on business fundamentals despite macro uncertainty dominating price action. |
Quality Risk/Reward Fundamentals Rotation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 15, 2026 | Fund Letters | Pender Small Cap Opportunities Fund | CVO.TO | Coveo Solutions Inc. | Software - Infrastructure | Application Software | Bull | Toronto Stock Exchange | AI Beneficiary, AI-powered, Customer service, e-commerce, Enterprise Search, Software, Top Ten Holding | Login |
| Apr 15, 2026 | Fund Letters | Pender Small Cap Opportunities Fund | PAR | PAR Technology Corp. | Software - Application | Technology Hardware, Storage & Peripherals | Bull | New York Stock Exchange | AI Product, Coach AI, Data Strategy, High Quality Business, Identity Resolution, Restaurant technology, Store Deployment | Login |
| Apr 15, 2026 | Fund Letters | Pender Small Cap Opportunities Fund | SOIL.TO | Saturn Oil & Gas Inc. | Oil & Gas E&P | Oil & Gas Exploration & Production | Bull | Toronto Stock Exchange | Alberta, Asset Development, Canada, Catalyst-Rich, deleveraging, energy, multiple expansion, Oil & Gas, Saskatchewan | Login |
| Apr 15, 2026 | Fund Letters | Pender Small Cap Opportunities Fund | VNP.TO | 5N Plus Inc. | Specialty Chemicals | Specialty Chemicals | Bull | Toronto Stock Exchange | capacity expansion, Catalysts, conservative guidance, growth, Proprietary Materials, Space Solar, specialty materials | Login |
| Jan 13, 2026 | Fund Letters | David Barr | GRID CN | Tantalus Systems Holding Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | Electrification, Grid, Smartmeters, Software, utilities | Login |
| Jan 13, 2026 | Fund Letters | David Barr | VNP CN | 5N Plus Inc. | Materials | Semiconductors | Bull | New York Stock Exchange | Defense, Energytransition, materials, semiconductors, Solar | Login |
| Oct 16, 2025 | Fund Letters | David Barr | PNG | Kraken Robotics Inc. | Information Technology | Aerospace & Defense Technology | Bull | TSX | autonomous systems, Defense, diversification, EBITDA, growth, robotics, Sonar | Login |
| Oct 16, 2025 | Fund Letters | David Barr | PNG | Kraken Robotics Inc. | Information Technology | Aerospace & Defense Technology | Bull | TSX | autonomous systems, Defense, diversification, EBITDA, growth, robotics, Sonar | Login |
| Jul 11, 2025 | Fund Letters | Pender Small Cap Opportunities Fund | CVO.TO | Coveo Solutions Inc. | Information Technology | Application Software | Bull | TSX | AI, Artificial Intelligence, Canadian, Enterprise software, growth, SaaS, Search Platform, technology | Login |
| Jul 11, 2025 | Fund Letters | David Barr | CVO CN | Coveo Solutions Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | AI, Enterprise Search, growth, Software, valuation | Login |
| Jul 11, 2025 | Fund Letters | David Barr | LSPD CN | Lightspeed Commerce Inc. | Information Technology | Internet Services & Infrastructure | Bear | New York Stock Exchange | growth, Software, strategy, take-private, valuation | Login |
| May 5, 2025 | Fund Letters | Pender Small Cap Opportunities Fund | TVK.TO | TerraVest Industries Inc. | Industrials | Industrial Machinery | Bull | TSX | compounder, energy infrastructure, Fuel Infrastructure, M&A, manufacturing, Metal Manufacturing, North America, serial acquirer | Login |
| Jan 27, 2025 | Fund Letters | Pender Small Cap Opportunities Fund | MDA.TO | MDA Space Ltd. | Industrials | Aerospace & Defense | Bull | TSX | Aerospace, business transformation, Canada, contrarian, High Margin Products, secular growth, Space Technology | Login |
| Jan 27, 2025 | Fund Letters | Pender Small Cap Opportunities Fund | LSPD.TO | Lightspeed Commerce Inc. | Information Technology | Software | Bull | TSX | Canada, Founder CEO, M&A catalyst, Payment Solutions, Point of Sale, SaaS, strategic review, takeover target | Login |
| Oct 7, 2024 | Fund Letters | Pender Small Cap Opportunities Fund | MDA.TO | MDA Space Ltd. | Industrials | Aerospace & Defense | Bull | Toronto Stock Exchange | Aerospace, Canada, Equity, Geointelligence, government contracts, growth, recurring revenue, robotics, Satellite Systems, Space Technology | Login |
| Jul 29, 2024 | Fund Letters | Pender Small Cap Opportunities Fund | DTOL.TO | D2L Inc. | Software & Services | Application Software | Bull | TSX | Cloud software, corporate training, Edtech, education technology, Higher Education, K-12, Learning Management System, recurring revenue, SaaS, valuation discount | Login |
| Apr 16, 2024 | Fund Letters | Pender Small Cap Opportunities Fund | KSI.TO | Kneat.com, Inc. | Software & Services | Application Software | Bull | TSX | Emerging markets, growth, life sciences, Pharmaceutical, Quality Management, recurring revenue, SaaS, Software, Validation | Login |
| Jan 17, 2024 | Fund Letters | Pender Small Cap Opportunities Fund | THNC.TO | Thinkific Labs Inc. | Information Technology | Application Software | Bull | TSX | Cloud software, E-learning, Management Quality, online education, post-COVID recovery, profitability inflection, Rule of 40, SaaS, turnaround | Login |
| Jul 13, 2023 | Fund Letters | Pender Small Cap Opportunities Fund | IPAR | PAR Technologies | Information Technology | Application Software | Bull | NYSE | AI, Artificial Intelligence, commerce platform, Data Analytics, proprietary data, Restaurant technology, SaaS | Login |
| Jul 13, 2023 | Fund Letters | Pender Small Cap Opportunities Fund | CPLF.TO | Copperleaf Technologies | Information Technology | Application Software | Bull | TSX | AI, Artificial Intelligence, asset management, Decision Analytics, infrastructure, proprietary data, SaaS, utilities | Login |
| Jul 13, 2023 | Fund Letters | Pender Small Cap Opportunities Fund | SYZ.TO | Sylogist Inc. | Information Technology | Application Software | Bull | TSX | Activist Investment, board representation, Enterprise software, growth inflection, Non-Profit Software, organic growth, SaaS | Login |
| TICKER | COMMENTARY |
|---|---|
| SYZ.TO | Sylogist Ltd. (SYZ) was a top detractor, contributing -135.1 bps to performance. |
| CVO.TO | Coveo was a detractor in the quarter, caught up in the broader pessimism surrounding the software sector. Coveo is an AI-powered enterprise search platform delivering highly relevant experiences across websites, e-commerce, customer service, and workplace applications. We view Coveo as a beneficiary of AI rather than a business facing existential risk from it. Our thesis remains unchanged, and Coveo remains a top ten holding in the portfolio. |
| PAR | PAR Technology was also a detractor despite continued solid underlying performance. During the quarter, the company announced the acquisition of Bridg, an identity resolution platform, for $27.5 million. While modest in size, the deal is strategically aligned with PAR's data strategy, enhancing the platform's ability to identify and engage non-loyalty customers from previously anonymous transactions. Meanwhile, the company's first major AI product, Coach AI, reached a milestone deployment across nearly 900 stores as of early 2026, serving as a cornerstone of the new PAR Intelligence orchestration layer. Despite the recent selloff, we continue to view PAR as a high-quality business, and our thesis is unchanged. |
| SOIL.TO | Saturn Oil & Gas, a Canadian energy company focused on asset development in Saskatchewan and Alberta was a top performer in the quarter. We view Saturn as a catalyst-rich company that, despite recent price appreciation driven by rising oil prices, continues to trade at dislocated valuations. As the company de-levers, we see the opportunity for multiple expansion, a thesis management has been executing on over recent quarters, accelerated by the surge in oil prices in March. Shares were up nearly 150% in Q1. |
| VNP.TO | 5N Plus also performed well, contributing 206.5 basis points to portfolio performance. The company released its fiscal year 2025 results alongside 2026 guidance that, in our view, remains conservative, implying approximately 100% growth relative to the 2025 guide. The company also announced a 25% capacity expansion in its space solar division. 5N Plus continues to solidify its position as a critical producer of specialty, proprietary materials, and we believe several catalysts remain ahead on both the product and sales fronts. |
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