| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Donville Kent sees the current market correction as a compelling opportunity similar to 2022, when indiscriminate selling created substantial value for patient investors. The fund's core holdings continue to report record revenues and earnings growth, yet their stocks have declined 18-59% alongside the broader market. This disconnect between fundamental performance and stock prices mirrors 2022, when similar dynamics led to 325-394% gains in individual positions over the subsequent 24 months. The managers highlight that small caps are positioned for higher earnings growth than large caps for the first time in years, while trading at historic valuation discounts. Key holdings like VitalHub, Propel, and Enterprise Group are delivering strong operational results despite stock price weakness. The fund expects 2026 revenue growth of 40% and earnings growth of 56% versus much lower growth rates for major indices. With tax loss selling creating additional downward pressure, the managers are aggressively positioning for what they believe will be a significant rebound, particularly benefiting from Canada's commitment to LNG infrastructure development.
High-quality small-cap compounders with strong fundamentals are trading at historically cheap valuations due to indiscriminate market selling, creating a setup similar to 2022 that should lead to substantial rebounds as the market eventually discriminates between winners and losers.
The managers expect significant stock returns based on record fundamentals and cheap valuations, with their top 10 investments representing 80% of the fund set to have record years in 2026. They are leaning hard into the opportunity set and positioning for a rebound similar to the 325-394% gains seen in individual positions following the 2022 correction.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 13 2026 | 2025 Q4 | CIGI.TO, CPH.TO, E.TO, GSY.TO, MDA.TO, PNG.TO, PRL.TO, VHI.TO, ZDC.TO | Canada, Corrections, earnings, LNG, small caps, technology, value |
GSY PRL E VHI ZDC |
Small caps are set to have higher earnings growth than large caps for the first time in a long time, while the valuation mismatch between… |
| Nov 19 2025 | 2025 Q3 | CEG, CPH CN, E CN, FORA CN, GRID CN, GSY CN, MDA CN, PRL CN, TGH CN, VHI CN, ZDC CN | CashEarnings, cybersecurity, SmallCaps, software, VerticalMarket |
VHI CT CSU CT MDA CT E CT GSY CT |
Software: The letter focuses heavily on AIs impact on SaaS, arguing that vibe-coding cannot replicate secure, regulated, mission-critical software, protecting vertical-market vendors like VitalHub and… |
| Jul 9 2025 | 2025 Q2 | E CN, GRID CN, GSY CN, MDA CN, VHI CN, ZDC CN | Balance Sheets, earnings growth, inflation, outlook, stock selection |
E CN VHI CN GRID CN GSY CN |
The letter highlights company-level growth opportunities supported by strong balance sheets and easing inflation pressures. Management expresses optimism for the second half of the year… |
| Apr 16 2025 | 2025 Q1 | CPH CN, CSU CN, E CN, FORA, GAMB, GSY CN, MDA CN, PRL CN, VHI CN, ZDC CN | - | - | - |
| Feb 7 2025 | 2024 Q4 | AEP CN, CTS CN, E CN, FORA, GSY CN, MDA CN, PMG CN, PRL CN, SECU CN, VHI CN, ZDC CN, ZPH CN | - | - | - |
| Oct 7 2024 | 2024 Q3 | BYD CN, E CN, GSY CN, MTY CN, PRL CN, VHI CN, ZDC CN | - | - | - |
| Jul 18 2022 | 2024 Q2 | - | - | - | - |
| Apr 23 2024 | 2024 Q1 | NVEI, VHI CN, ZDC CN | - | - | - |
| Jan 29 2024 | 2023 Q4 | CSU CN, DE CN, GSY CN, KUT CN, NVEI CN, PAY CN, PRL CN, SECU CN, VHI CN | - | - | - |
| Oct 26 2023 | 2023 Q3 | CTS CN, KUT CN, RET CN | - | - | - |
| Oct 7 2023 | 2023 Q2 | DE CN, HPS/A CN, RET CN, SANG, TCX | - | - | - |
| Jan 5 2023 | 2023 Q1 | CSU CN, CTS CN, GSY CN, KUT CN, NVEI CN, RET CN, VHI CN | - | - | - |
| Jan 31 2023 | 2022 Q4 | RET CN | - | - | - |
| Nov 17 2022 | 2022 Q3 | SECU | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
LNGNatural gas exports represent a key growth driver for the midstream sector. However, concerns about LNG supply/demand fundamentals weighed on some stocks, and potential Russian gas returning to Europe could negatively impact US natural gas exports. |
Exports Natural Gas Global Supply Demand |
Small CapsThe fund invests in a portfolio of competitively advantaged small and medium-sized businesses, which remained out of favor for most of the quarter. The strategy of owning leading small-cap businesses has been the foundation since inception, delivering 354 basis points of annual outperformance over the benchmark since inception despite recent headwinds. |
Growth Outperformance Benchmark Russell Businesses | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
Software |
|
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 13, 2026 | Fund Letters | J.P. Donville | E | Enterprise Group Inc | Energy | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | cashflow, Energyservices, infrastructure, LNG, recovery | Login |
| Jan 13, 2026 | Fund Letters | J.P. Donville | VHI | VitalHub Corp | Health Care | Health Care Technology | Bull | New York Stock Exchange | Healthtech, Margins, Mna, Software, valuation | Login |
| Jan 13, 2026 | Fund Letters | J.P. Donville | ZDC | Zedcor Inc | Industrials | Security Services | Bull | New York Stock Exchange | cashflow, growth, Operatingleverage, Security, Surveillance | Login |
| Nov 19, 2025 | Fund Letters | J.P. Donville, Jesse Gamble | VHI CT | VitalHub Corp | Materials | Health Care Technology | Bull | TSX | AI, compounding, cybersecurity, Digitalization, Government, healthcare, SaaS, Software | Login |
| Nov 19, 2025 | Fund Letters | J.P. Donville, Jesse Gamble | CSU CT | Constellation Software Inc. | Information Technology | Application Software | Bull | TSX | Acquisitions, AI, cashflow, compounding, Moat, Software, Vertical | Login |
| Nov 19, 2025 | Fund Letters | J.P. Donville, Jesse Gamble | MDA CT | MDA Space Ltd. | Industrials | Aerospace & Defense | Bull | TSX | Aerospace, backlog, Defense, growth, infrastructure, Re-rating, Space | Login |
| Nov 19, 2025 | Fund Letters | J.P. Donville, Jesse Gamble | E CT | Enterprise Group Inc. | Energy | Oil & Gas Equipment & Services | Bull | TSX | cashflow, Decarbonization, energy, Equipment, infrastructure, Power, Smallcap | Login |
| Nov 19, 2025 | Fund Letters | J.P. Donville, Jesse Gamble | GSY CT | goeasy Ltd. | Other | Consumer Finance | Bull | TSX | consumer, Credit, Finance, Re-rating, ROE, Smallcap, valuation | Login |
| Jul 9, 2025 | Fund Letters | J.P. Donville | E CN | Enterprise Group Inc. | Energy | Construction & Engineering | Bull | TSX | Contracts, growth, Installations, LNG, Turbines | Login |
| Jul 9, 2025 | Fund Letters | J.P. Donville | VHI CN | VitalHub Corp. | Materials | Health Care Technology | Bull | TSX | Acquisitions, AI, Margins, Referrals, Software | Login |
| Jul 9, 2025 | Fund Letters | J.P. Donville | GRID CN | Tantalus Systems Holding Inc. | Other | Electronic Equipment & Instruments | Bull | TSX | Grid, IoT, Modernization, Recurring, utilities | Login |
| Jul 9, 2025 | Fund Letters | J.P. Donville | GSY CN | GoEasy Ltd. | Other | Consumer Finance | Bull | TSX | Credit, Delinquencies, Demand, growth, Lending | Login |
| Jan 13, 2026 | Fund Letters | J.P. Donville | GSY | goeasy Ltd | Financials | Consumer Finance | Bull | New York Stock Exchange | compounding, Consumerfinance, Nonprime, ROE, valuation | Login |
| Jan 13, 2026 | Fund Letters | J.P. Donville | PRL | Propel Holdings Inc | Financials | Consumer Finance | Bull | New York Stock Exchange | Fintech, growth, Lending, ROE, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| CPH.TO | The business continues to generate cash flow (US$21m of free cash flow in the first 9 months this year) and uses it to pay down debt. It should be in a net cash position by their December 31 reporting period with most likely all of their debt paid off around that time. They will then have access of up to $90m in financing to be put to use if they wish. |
| E.TO | Enterprise reported a great bounce back quarter. There were three headwinds outside of their control earlier this year that have now been resolved. First, the price of Canadian natural gas was temporarily low (below $0) for a fraction of time which slowed overall sector activity. Natural gas is now at multi-year highs and activity is ramping higher. |
| GSY.TO | GoEasy has a high rate of asset backed loans as well as insured loans. Their loan book is much more resilient than one might think. Large Canadian banks tighten their lending standards in downturns, which shifts a relatively higher quality borrower down to GoEasy. In their most recent quarter, they reported a 23% ROE versus an expected ROE of 25% and now the stock has corrected to its historically low-end level PE of 6x. |
| MDA.TO | MDA is a publicly-traded Canadian company ($4.6 billion equity capitalization) that manufactures and provides services in satellite systems, robotics and space operations, and geo-intelligence for a broad range of customers, including governments, space agencies, and defence and aerospace contractors. |
| PNG.TO | Kraken Robotics designs and manufactures advanced subsea robotics, sonar systems, and batteries used in autonomous underwater vehicles for defense, offshore energy, and infrastructure applications. It is positioned to benefit from heightened geopolitical tensions and increased global defense spending, particularly in undersea and autonomous systems. |
| PRL.TO | Propel's quarter was impressive, especially considering the macro backdrop. Their story is different from GoEasy because most of the business is done in the US and the UK. They recently announced receiving their US banking license, which allows them to reach new customers and geographies they previously couldn't. |
| VHI.TO | VitalHub's quarter beat expectations on every metric. Profit margins have now bottomed after integrating their recent acquisitions and margins will improve from here. VitalHub is sitting on more than $124M in cash with no debt and have spoken to how they're seeing a significant increase in M&A activity. |
| ZDC.TO | What is most impressive is that their Canadian business is their most mature segment and still growing 30% year over year but most importantly has 67% EBITDA margins and 50% IFRS reported Net Income margins. As their US business, which is growing 363% year over year with 33% segment EBITDA margins, hits critical mass, their profit margins in the US should trend much higher. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
