| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 3.67% | 3.67% |
Jemekk Hedge Fund posted a positive 3.7% return in Q1 2026 despite significant market volatility from the Iran conflict that shut down 20% of global oil production. The fund outperformed the S&P 500 (-4.4%) while matching the TSX (+3.9%), benefiting from Canada's resource-rich economy. The managers maintain an optimistic outlook on Canadian equities, noting that US market valuations have contracted from 23x to 19x P/E while Canadian multiples remain attractive in the mid-teens. The portfolio is positioned across four core themes: Defense spending driven by Canada's commitment to reach 5% of GDP by 2035, Build Canada infrastructure investment supported by government initiatives, Resources particularly precious metals which increased in weight during the quarter, and Healthcare targeting aging demographics. Key new positions include Telesat benefiting from satellite industry growth and government backing, and CAE leveraging defense spending and pilot training demand. The fund added Discovery Silver and Troilus Gold, shifting toward smaller-cap precious metals names. Despite geopolitical risks from the ongoing Middle East conflict, the managers view any weakness as buying opportunities while maintaining high exposure levels and staying nimble given market volatility.
Canadian equities offer superior value and growth prospects compared to stretched US markets, with the fund positioned across four key themes: Defense spending driven by NATO requirements, Build Canada infrastructure investment, Resources benefiting from commodity price strength, and Healthcare serving aging demographics.
The managers remain enthusiastic about Canadian equities, viewing the backdrop as improved with attractive valuations, earnings growth exceeding the US, and continued flows into Canada. They expect the resource theme and Build Canada pivot to continue benefiting the portfolio, while maintaining vigilance around geopolitical risks and the need to stay nimble.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 12 2026 | 2026 Q1 | CAE.TO, TSAT.TO | Canada, commodities, defense, energy, Geopolitical, healthcare, Resources, Space | - | Jemekk delivered 3.7% in Q1 2026, outperforming during Iran conflict volatility. The fund targets four Canadian themes: Defense spending reaching 5% GDP, Build Canada infrastructure, Resources especially precious metals, and Healthcare. New positions Telesat and CAE capitalize on satellite growth and pilot training demand. Managers remain bullish on Canadian valuations versus stretched US markets. |
| Jan 14 2026 | 2025 Q4 | CNQ.TO, EIF.TO, FFH.TO, GS, MEG.TO, RTX | aerospace, Canada, commodities, defense, energy, infrastructure, Precious Metals, Resources | RTX | Jemekk Hedge Fund posted 18.3% returns in 2025, capitalizing on Canadian outperformance driven by energy, precious metals, and financials. The fund is positioned for Build Canada infrastructure themes and elevated defense spending globally through holdings like Exchange Income Fund and RTX Corporation. Managers expect continued Canadian outperformance in 2026 despite macro headwinds from inflation and tariffs. |
| Sep 30 2025 | 2025 Q3 | AC.TO, AEM, AMZN, ATD.TO, BTG, CRM, EFN.TO, FFH.TO, FNV, GDXJ, GS, MEG.TO, SSL.TO, V, WMT, ZZZ.TO | Canada, financials, gold, Hedging, materials, rates, Resilience | - | Jemekk posted strong Q3 returns of 5.51% despite hedging costs, driven by three market pillars: declining rates as Fed shifts to labor focus, surprising earnings growth, and positive fund flows. Portfolio emphasizes Financials, precious metals benefiting from all-time highs, and resilient consumer plays. Managers remain constructive but maintain defensive positioning for inevitable volatility. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
DefenseCanada strives to meet newly established spending goals of $200 billion or 5% of GDP by 2035. The fund holds long-term positions in MDA, RTX, and new position CAE. Defense training and simulation complex is re-rating as allies invest in military readiness. |
Defense Spending NATO Military Simulation Training |
ResourcesPrecious metals remain a significant weight in the portfolio, with new names Discovery Silver and Troilus Gold marking a shift to move down cap and away from royalty companies. All commodity prices moved higher in Q1 driven by the Iran conflict. |
Gold Silver Precious Metals Commodities Mining | |
CanadaBuild Canada theme continues as Canadians turn inwards to boost economy due to increasing US tariffs and CUSMA negotiations. Fund holds Exchange Income Fund and Telesat as plays on this theme with government support including $3 billion loan participation. |
Infrastructure Spending Government Domestic Investment | |
SpaceTelesat is shifting from legacy GEO satellite constellations to cutting-edge LEO constellation focused on Enterprise, Aviation, Maritime and Defense applications globally. The company benefits from $3 billion government loan and equity participation. |
Satellites LEO Constellation Commercial | |
| 2025 Q4 |
AIAI was a dominant market driver of U.S. stocks and continues to influence market leadership. The AI-driven rally led to historic levels of market concentration with just five stocks accounting for nearly 45% of the S&P 500's total return in 2025. Strong AI-related investment was the backbone of U.S. growth in 2025. |
Artificial Intelligence Technology Market Concentration Growth Innovation |
InflationThe inflation storm that dominated recent years appeared to be easing, at least in the short term. November and December inflation surprised to the downside, easing investor concerns about persistent inflation pressures. However, a risk continues to be a repeat of the 1960s and early 1970s pattern. |
Inflation Federal Reserve Monetary Policy Economic Data | |
RatesThe Federal Reserve has cut interest rates 1.75% since 2024, easing financial conditions and supporting markets. The Fed resumed rate cuts in September and markets expect further easing into 2026, albeit at a slower pace. Historically, equities have responded favorably following the restart of easing cycles. |
Interest Rates Federal Reserve Monetary Policy Financial Conditions | |
DollarThe U.S. dollar fell more than 9% during 2025, which supported international markets outpacing the U.S. by the widest margin since 2009. The dollar was pressured by high starting valuation and mounting concerns about global investor concentration in U.S. assets. |
US Dollar Currency International Markets Valuation | |
| 2025 Q3 |
GoldThe Gold and Silver theme has begun to play out after years of unsuccessful positioning. A weaker USD, inflationary fears, flow of funds, and rising demand from both Central Banks and retail have pushed prices to all-time highs, significantly rewarding participants. |
Gold Silver Precious Metals Central Bank Inflation |
ResilienceThe consumer has proven much more resilient than expected, leading to increased exposure to Consumer Cyclicals. Companies like Walmart, Air Canada, Alimentation Couche-Tard and Amazon represent core positions benefiting from this resilient consumer theme. |
Consumer Resilient Cyclicals Retail | |
RatesInterest rates remain stubbornly high but are poised to move lower as labor concerns grow and a new Fed chair takes the reins in 2026. The Fed's focus is shifting from inflation to the labor market, supporting the case for lower rates. |
Interest Rates Fed Labor Market Monetary Policy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 14, 2026 | Fund Letters | Gerard Ferguson | RTX | RTX Corporation | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, aftermarket, backlog, Defense, Rearmament, visibility | Login |
| TICKER | COMMENTARY |
|---|---|
| TSAT.TO | Canadian bred and based, Telesat is a leading global satellite operator that is shifting from legacy (GEO – think Direct TV) satellite constellations to a newer, cutting-edge LEO (Lightspeed) constellation focussed on Enterprise, Aviation, Maritime and Defense applications globally. The success, and near-term IPO ($2 TRILLION), of Elon Musk's SpaceX has shone a light on the satellite industry and its' commercial applications. TSAT has a long history in space and clearly has the expertise, trading at a fraction of other players, and is a great alternative to the behemoth of US domiciled Starlink. A beneficiary of both the Build Canada and Defence themes, TSAT is set to be a big recipient of the increased Canadian government focus on supporting home-grown stories, as evidenced by the $3 billion loan and equity participation of the Federal and Ontario governments. A possible recapitalization via a debt renegotiation could unlock valuation upside, but this seems fleeting now as the stock has moved higher (as has the value of their debt). The emergence of the new Military market and bandwidth provides yet another avenue of significant upside, upon the launching of the constellation which is expected to be fully operational in 2028. |
| CAE.TO | CAE Inc. (CAE) is a Canadian multinational simulation and training company headquartered in Montreal, Quebec. The company is the global leader in pilot training and flight simulation, serving civil aviation operators, defense forces, and healthcare customers across more than 40 countries. Recurring Revenue Anchored by Regulation: The civil aviation business is underpinned by global regulatory requirements mandating recurrent training — typically every six months — for pilots and crew to maintain certification on each aircraft type. This built-in regulatory cadence provides a stable, recurring demand base that makes the segment inherently less cyclical. This is not discretionary spending — it is a legal requirement. Secular Pilot Shortage & Long-Term Training Demand: The Civil segment benefits from long-term secular growth factors, including rising global passenger traffic, mandatory pilot retirements, and the need to train over 280,000 new pilots over the next decade. With a record $8.8 billion adjusted Civil backlog, the outlook for civil aviation training solutions remains highly compelling, supported by strong and durable fundamentals. Defense Up-Cycle & NATO Spending Surge: CAE is well positioned for long-term growth and enhanced profitability in Defense, supported by an adjusted backlog of $11.0 billion and a prolonged up-cycle driven by rising budgets across NATO and allied nations, many of which are now targeting spending levels approaching 5% of GDP. Escalating geopolitical tensions are driving demand for simulation-based readiness solutions across air, land, and naval platforms — exactly where CAE operates. The entire Defence training and simulation complex is re-rating as allies invest in military readiness without proportionally expanding headcount, making simulation a cost-effective force multiplier. We like CAE for the above reasons and add that the company's two distinct segments — Civil and Defense — provide a complementary balance between a highly recurring, regulation-driven revenue stream and a long-cycle government backlog business now accelerating. With CAE's highly cash-generative business and the completion of a significant multiyear investment cycle, management expects continued growth in fiscal 2026 supported by higher margins and a strengthening balance sheet. At 12x EBITDA, we believe the company is not pricing in the material improvements we see unfolding over the next two years. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
