Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 15.3% | 7.1% | 13.2% |
| 2025 | 2024 | 2023 |
|---|---|---|
| 19.7% | 13.1% | 15.8% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 15.3% | 7.1% | 13.2% |
| 2025 | 2024 | 2023 |
|---|---|---|
| 19.7% | 13.1% | 15.8% |
The Langdon Canadian Smaller Companies Portfolio returned 5.7% in Q4 2025, bringing full-year performance to 19.7% and lifting since-inception returns above 15%. The strong performance was broad-based and diversified across holdings, with top contributors including founder-led specialty retailer Groupe Dynamite, diversified industrial manufacturer TerraVest Industries, and hardware distributor Richelieu Hardware. Real estate holdings StorageVault Canada and FirstService were notable drags but remain compelling long-term compounders led by proven value creators. The portfolio added PharmaCorp, a Canadian pharmacy acquisition platform, reinforcing the manager's view that the sub-$1 billion Canadian equity market remains materially underfollowed and inefficient. The investment approach centers on ensuring appropriate compensation for risks taken rather than avoiding risk altogether, with disciplined portfolio construction anchored in business fundamentals. The manager believes patient and flexible capital will be rewarded as similar opportunities with unique structures continue to emerge in this inefficient market segment.
Focus on Canadian smaller companies under $1 billion market cap in an underfollowed and inefficient market segment, emphasizing disciplined portfolio construction based on business fundamentals and appropriate risk-return compensation.
The manager believes patient and flexible capital will be rewarded in the years ahead as similar opportunities with unique structure continue to emerge in the sub-$1 billion Canadian equity market. The portfolio is positioned so that risks taken are thoughtful and well understood while providing opportunity to generate returns consistent with internal expectations over time.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 14 2026 | 2025 Q4 | FSV.TO, GYM.TO, RCH.TO, SVI.TO, TVK.TO | Canada, Pharmaceuticals, real estate, retail, small caps, value | - | The portfolio focuses on Canadian smaller companies with market caps under $1 billion. The manager emphasizes that this segment remains materially underfollowed and inefficient, providing opportunities for patient and flexible capital to be rewarded. The investment approach centers on ensuring appropriate compensation for risks taken rather than avoiding risk altogether. The manager focuses on disciplined portfolio construction anchored in business fundamentals and clear assessment of downside risk. Top contributors included Groupe Dynamite, a founder-led specialty apparel retailer operating the Garage and Dynamite banners, demonstrating the portfolio's exposure to retail businesses with strong fundamentals. |
| Sep 30 2025 | 2025 Q3 | GCGA CN, GRGD CN, TVK CN | AssetManagement, CashFlow, gold, retail, SmallCaps | - | Gold: A dominant market narrative driven by gold equities is described as stretched, reinforcing the managers avoidance of narrative-driven commodities in favour of fundamentals. Compounding: The letter highlights businesses like Groupe Dynamite and Guardian Capital as examples of patient compounding where free-cash-flow growthnot macro callsdrives multi-year value realization. SmallCaps: The manager emphasizes under-researched Canadian small caps where intrinsic value realization occurs suddenly, underscoring their discipline of owning founder-led, cash-generative companies. :contentReference[oaicite:1]{index=1} |
| Jul 1 2025 | 2025 Q2 | ATS CN, DFY CN, EQB CN, GRGD CN | Automation, Canada, insurance, Logistics, SmallCaps | - | Canadian small caps rebounded sharply as businesses demonstrated pricing power, margin resilience, and management depth despite tariff disruptions. Several holdings showed structural advantagessuch as scale in insurance, automation, and logisticssupporting long-run growth and consolidation. Small caps remain attractive for disciplined investors seeking mispriced, founder-led companies with asymmetric upside. |
| May 12 2025 | 2025 Q1 | AND CN, ATZ CN, TVK CN | Canada, Logistics, SmallCaps, takeover, valuation | - | The portfolio experienced unexpected drawdowns across several small-cap holdings despite strong underlying fundamentals and management access providing conviction. Acquisitions like UPS buying Andlauer highlight asymmetric upside inherent in undervalued niche leaders. Small caps remain attractive for long-term investors focused on intrinsic value gaps and high-quality management teams. |
| Jan 30 2025 | 2024 Q4 | AW CN, WED CN | Beverages, consumer, Margins, retail, valuation | - | The letter highlights pressure across consumer holdings, where companies like Royal Unibrew and FeverTree face margin compression despite strong long-term revenue growth. Management remains confident that normalized margins and strong balance sheets will drive value recovery. The consumer sector remains a source of selective opportunity as valuations sit at decade-low multiples. |
| Oct 23 2024 | 2024 Q3 | ATS CN, ATZ CN | Canada, CashFlow, compounders, management, SmallCaps | - | The portfolio focuses on long-duration, cash-generative Canadian businesses with strong management teams capable of compounding value through cycles. The letter highlights variant perception, maintenance research, and the search for non-obvious compounders that can inflect after investment cycles. Small-cap compounders remain compelling for disciplined investors willing to look beyond short-term volatility. |
| Jul 31 2024 | 2024 Q2 | BYD CN, TVK CN | AutoRepair, CapitalAllocation, FreeCashFlow, IndustrialConsolidation, SmallCaps | - | FreeCashFlow: The Canadian portfolio is explicitly organised around businesses that generate and grow free cash flow through cycles, contrasting its largely cash-generative holdings with many Canadian small caps whose recent share price strength masks negative free cash flow, and arguing that FCF growth is the main driver of intrinsic value. SerialAcquirers: TerraVest is showcased as an industrial consolidator in tanks and fuel-handling equipment that is integrating its largest deals yet, such as Highland Tank and AEP, with improving margins and free cash flow and significant runway to roll up fragmented niches under an aligned management team with substantial insider ownership. DownsideProtection: Examples like Boyd Group and net-cash 'tugboat' holdings such as Guardian, Westaim and Enghouse illustrate the focus on strong balance sheets, disciplined capital allocation and multiple growth avenues, which the manager sees as essential to avoiding being shaken out in drawdowns and allowing earnings compounding to show up in share prices over time. :contentReference[oaicite:4]{index=4} |
| Apr 17 2024 | 2024 Q1 | ATS CN, TOI CN | FactoryAutomation, SerialAcquirers, SmallCaps, VerticalSoftware, WesternCanadaEnergy | - | SmallCapQuality: The manager emphasises underfollowed Canadian small caps with limited or no sell-side coverage, backing aligned owner-operators with significant insider stakes who can compound capital over long periods. SerialAcquirers: The portfolio includes industrial and software serial acquirers such as an undisclosed Canadian industrial roll-up and Topicus, which deploy capital into niche vertical-market software and operating companies using disciplined M&A playbooks and deep on-the-ground diligence across multiple cities. Energy: Select Western Canadian energy exposures like PrairieSky and private Storm Development are owned for their leverage to improving LNG export demand and strong management teams, providing diversification while keeping overall commodity and rate sensitivity modest. :contentReference[oaicite:1]{index=1} |
| Jan 29 2024 | 2023 Q4 | ATZ CN | Canada, CashFlow, Compounding, Quality, SmallCaps |
ATZ CN ATS CN TOI CN TVK CN BYD CN AND CN DFY CN EQB CN |
Canadian small caps offer proven, cash-generative businesses with long operating histories and durable competitive advantages despite market misconceptions around volatility. Portfolio companies demonstrate resilience through cycles and benefit from mispricings created by short-term investor behavior. Small caps remain attractive for long-term compounding driven by disciplined capital allocation. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy |
Specialty RetailFocus on value-oriented retailers, franchise models, and premium brands including Boot Barn for western wear, Warby Parker for eyewear, and Ollie's Bargain Outlet for closeouts. Consumer behavior shifts toward lower-priced inventory are impacting performance, with mixed results across positions. |
Consumer Behavior Franchise Models Premium Brands Trade Down Retail | |
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 |
GoldGold returned +65% in dollars in 2025, driven by broadening demand from central banks, professional and retail investors. Central banks now hold 24% of reserves in gold versus 23% in US Treasuries for the first time. Maintained 12% portfolio allocation throughout the year. |
Central Banks Reserves Diversification Demand |
| 2025 Q2 |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy |
| 2025 Q1 |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy |
| 2024 Q4 |
MediaWarner Bros Discovery was the top contributor as multiple parties submitted acquisition offers, with Netflix acquiring the Streaming and Studios business while Global Networks spins to shareholders. Paramount Skydance made a $30 per share offer for the entire company, creating a bidding war that unlocked shareholder value. |
Streaming M&A Content Entertainment Bidding |
| 2024 Q3 |
ChinaChina's economic rebalancing appears to be moving forward. Market liquidity, anti-involution and a measured consumer policy are likely to drive a sustained market performance in 4Q. Fiscal support and ongoing reforms in China is supportive of a stronger currency. |
Growth Policy Currency |
| 2024 Q2 |
Innovation |
|
| 2024 Q1 |
EnergyBHE operates regulated utilities serving 5.4 million customers and natural gas pipelines. The business faces significant investment needs driven by AI computing demand and wildfire risk mitigation, particularly in the Western U.S. |
Regulated Utilities Natural Gas Renewable Energy Grid Infrastructure |
| 2023 Q4 |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 1, 2025 | Fund Letters | Greg Dean | DFY CN | Definity Financial Corporation | Financials | Property & Casualty Insurance | Bull | TSX | capital allocation, consolidation, Insurance, synergies, underwriting | Login |
| Jul 1, 2025 | Fund Letters | Greg Dean | EQB CN | EQB Inc. | Financials | Thrifts & Mortgage Finance | Bull | TSX | Challenger, credit quality, digital banking, Payments, ROE | Login |
| Jan 29, 2024 | Fund Letters | Greg Dean | ATZ CN | Aritzia Inc. | Consumer Discretionary | Specialty Stores | Bull | TSX | Apparel, ecommerce, growth, retail, turnaround | Login |
| Apr 17, 2024 | Fund Letters | Greg Dean | ATS CN | ATS Corporation | Industrials | Industrial Machinery | Bull | TSX | Automation, backlog, Cyclicality, diversification, EVs, Industrials | Login |
| Apr 17, 2024 | Fund Letters | Greg Dean | TOI CN | Topicus.com Inc. | Health Care | Application Software | Bull | TSX | Acquisitions, compounding, Fragmentation, Free Cash Flow, Recurring, Software | Login |
| Jul 31, 2024 | Fund Letters | Greg Dean | TVK CN | TerraVest Industries Inc. | Energy | Oil & Gas Equipment & Services | Bull | TSX | Acquisitions, Alignment, consolidation, Fragmentation, Free cashflow, Industrials | Login |
| Jul 31, 2024 | Fund Letters | Greg Dean | BYD CN | Boyd Group Services Inc. | Consumer Discretionary | Auto & Truck Dealerships | Bull | TSX | Alignment, Collision, compounding, consolidation, Free cashflow, services | Login |
| May 12, 2025 | Fund Letters | Greg Dean | AND CN | Andlauer Healthcare Group Inc. | Industrials | Health Care Technology | Bull | TSX | acquisition, Culture, growth, healthcare, Logistics, management, Margins, Moat, Outsourcing, Returns, Transportation, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| FSV.TO | The top detractors for the last twelve months included Thomson Reuters, Enghouse Systems and FirstService Corporation. FirstService Corporation released earnings in late October and while the quarter was not bad, with small misses primarily due to low catastrophic/weather-related business being low, the stock was punished as a result. |
| GYM.TO | Groupe Dynamite – a founder-led specialty apparel retailer operating the Garage and Dynamite banners. |
| RCH.TO | Richelieu Hardware – a leading distributor of specialty hardware and related products to furniture manufacturers and builders. |
| SVI.TO | StorageVault is a national owner and operator of self-storage facilities. We believe both companies are led by proven value creators — Steve Scott at StorageVault and remain confident in their ability to compound intrinsic value over time. |
| TVK.TO | TerraVest Industries, TFI International and Loblaw Companies were the top contributors to performance. TerraVest Industries struggled for the first half of the quarter before a materially better second half. The company released strong fourth quarter earnings with sales for Q4 and FY2025 up 82% and 50% year-over-year. The board of directors declared a dividend increase of 14% over the prior quarterly dividend in mid-December during the latest quarterly earnings. |
| 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 | |||