| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Rivemont's portfolio is positioned for a great sector rotation in 2026, diverging significantly from major market indices. The manager draws parallels to the 2000-2001 period when the Nasdaq collapsed but Canadian resource and financial sectors rallied. The fund has aggressively overweighted healthcare, focusing on healthcare real estate, pharmaceuticals, and biotechnology, viewing the sector as more resilient and less volatile than broader markets. Holdings include Omega Healthcare, CareTrust, Jazz Pharmaceuticals, and Exelixis. Canadian financials represent the second major overweight, benefiting from near-monopoly positions that enable exceptional profit margins at reasonable valuations. Bank of Montreal and Manulife Financial are key holdings, with BMO gaining approximately 40% since January. The manager feels deeply connected to the market and expects continued outperformance while maintaining lower volatility. Cash remains somewhat elevated as the manager seeks deployment opportunities while prioritizing capital preservation. The fund has consistently delivered expected returns with lower volatility than the broader market.
The fund is positioned for a major sector rotation away from technology and AI toward overlooked sectors, particularly healthcare and Canadian financials, which offer resilience, lower volatility, and attractive valuations with strong profit margins.
The manager anticipates a great sector rotation in 2026, with renewed interest in sectors that have been overlooked during the technology and AI dominance. The manager feels deeply connected to the market and expects the coming years to favor healthcare and Canadian financials. Cash position remains somewhat higher than desired, and the manager is actively looking for opportunities to deploy capital while recognizing that preserving capital is sometimes as important as identifying new opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 1 2026 | 2026 Q2 | BDGI, BMO, CSH.UN.TO, CTRE, EXEL, GILD, GWO.TO, JAZZ, MFC, OHI | Canada, Canadian Financials, dividends, healthcare, sector rotation, value | - | Rivemont is positioned for a major sector rotation away from technology toward healthcare and Canadian financials. The fund has aggressively overweighted healthcare real estate, pharmaceuticals, and biotechnology for resilience and lower volatility. Canadian financials benefit from near-monopoly positions with exceptional margins. Bank of Montreal is up 40% year-to-date. The manager sees parallels to the post-2000 rotation and expects continued outperformance. |
| Jun 1 2026 | 2026 Q1 | AEM, AMD, BDGI, CHGG, CSCO, CSH.UN.TO, CSU.TO, EQIX, ESI, FNV, GILD, IBM, JAZZ, MU, NVDA, NVT, OR.TO, SKYT, TRI.TO, WPM | active management, AI, gold, healthcare, infrastructure, sector rotation, semiconductors, technology | - | Rivemont pivots from gold winners to AI infrastructure plays, eliminating disruption victims like IBM while investing in data center enablers including Nvidia and supporting component companies. Manager sees AI revolution in early infrastructure phase comparable to 1990s internet build-out, positioning for multi-year opportunity while maintaining healthcare exposure and managing semiconductor volatility. |
| Jul 29 2025 | 2025 Q2 | ADYEN.AS, BA, GE, HWM, RHM.DE, ROK, RR.L | aerospace, Automation, defense, Europe, industrials, Onshoring, technology, Trade Policy |
BA HWM ROK GE |
WestEnd outperformed by focusing on onshoring and aerospace themes, actively redeploying cash after US-China tariff de-escalation. The portfolio benefits from rising defense spending and aviation recovery through positions in Boeing (turnaround), GE Aerospace (industry leader), Howmet (advanced materials), and Rockwell (industrial automation). OBBBA fiscal stimulus provides additional manufacturing investment tailwinds. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
HealthcareThe manager has aggressively overweighted healthcare, viewing it as more resilient and less volatile than broader market indices. The focus is on healthcare real estate, pharmaceutical companies, and biotechnology firms, with specific holdings including Omega Healthcare, CareTrust, Jazz Pharmaceuticals, and Exelixis. |
Healthcare REITs Pharmaceuticals Biotechnology Resilience |
Canadian FinancialsThe manager continues to be impressed by Canadian financials, which benefit from near-monopoly positions allowing exceptional profit margins at reasonable valuations. The sector has historically been less volatile than the broader market. Holdings include Bank of Montreal and Manulife Financial, with BMO gaining approximately 40% since January 1. |
Regional Banks Insurance Canada Dividends | |
| 2026 Q1 |
AIManager views AI as transformational, comparing current stage to pre-internet infrastructure build-out. Eliminated vulnerable positions like IBM, Constellation Software, and Thomson Reuters. Investing in AI infrastructure including data centers, semiconductors, and supporting components through companies like Nvidia, Element Solutions, and nVent Electric. |
Artificial Intelligence Data Centers Infrastructure Disruption Technology |
SemiconductorsManager acknowledges missing some semiconductor opportunities due to extreme volatility, citing 40-45% drawdowns. Currently holds Element Solutions and SkyWater as semiconductor plays. Views managing volatility as important priority while recognizing sector's potential. |
Chips Volatility Technology Manufacturing | |
BiotechnologyManager particularly likes healthcare sector and expects fireworks if IBB breaks above all-time highs. Currently holds Gilead Sciences and Jazz Pharmaceuticals alongside traditional healthcare investments in senior residences and hospitals. |
Healthcare Pharmaceuticals Medical Biotech | |
GoldManager's greatest success over past 36 months was gold sector exposure through Wheaton Precious Metals, Osisko, Agnico Eagle Mines, and Franco-Nevada. Purchased during February 2024 breakout and sold last position in April 2025. No longer has exposure despite past profitability. |
Precious Metals Mining Commodities | |
| 2025 Q2 |
OnshoringThe US government's increasing focus on bringing manufacturing and production home due to geopolitical uncertainties and trade issues. Major capital investment is flowing into domestic production capacity, particularly in aerospace and defense industries, with provisions in OBBBA incentivizing domestic investment through favorable tax treatment for factory construction and equipment. |
Manufacturing Domestic Production Reshoring Supply Chain |
Defense SpendingGlobal defense spending rose to $2.7 trillion in 2024 (+9.4%) and is expected to continue rising. The US Department of Defense's 2025 budget request totals nearly $850 billion with meaningful allocations for strengthening industrial capabilities in unmanned systems, hypersonics, and solid rocket motors. |
Military Budget Aerospace Defense Government | |
AerospaceThe rebound in global air travel (up 10.6% in 2024) and structural supply shortages are fueling commercial aerospace activity. Aircraft manufacturers are racing to meet backlogs while investing heavily in domestic production capacity, with companies like GE Aerospace and Boeing positioned to benefit from these trends. |
Aviation Commercial Aircraft Travel Manufacturing | |
Trade PolicyMarkets moved past worst-case tariff scenarios after China and US agreed to de-escalate and pull tariffs back to more sensible levels (30% on Chinese exports, 10% on US exports) in May. The Trump administration's pattern of delaying tariff implementation and framing small agreements as deals signals a strategy focused on extracting concessions rather than major trade deals. |
Tariffs China Negotiations Exports Concessions | |
AutomationCompanies like Rockwell Automation are benefiting from the broader adoption of automation and AI in manufacturing. Rockwell's portfolio includes sensors, software, and control systems that help make domestic manufacturing more efficient and cost-effective, with solutions for predictive maintenance, quality control, and digital twins. |
AI Manufacturing Efficiency Digital Industrial |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 1, 2024 | Fund Letters | Rivemont | BA | Boeing Company | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, China, Commercial Aviation, Defense, manufacturing, Reshoring, turnaround | Login |
| Jul 1, 2024 | Fund Letters | Rivemont | HWM | Howmet Aerospace Inc | Industrials | Aerospace & Defense | Bull | NYSE | advanced materials, Aerospace, Components, Defense, manufacturing, Precision Engineering, supply chain | Login |
| Jul 1, 2024 | Fund Letters | Rivemont | ROK | Rockwell Automation Inc | Industrials | Industrial Machinery | Bull | NYSE | Artificial Intelligence, Defense, Digital Twins, Industrial automation, manufacturing, Predictive Maintenance, Reshoring | Login |
| Jul 1, 2024 | Fund Letters | Rivemont | GE | GE Aerospace | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Artificial Intelligence, Defense, Engine Manufacturing, Joint venture, MRO services, Reshoring | Login |
| TICKER | COMMENTARY |
|---|---|
| OHI | We currently hold Omega Healthcare (OHI) and CareTrust (CTRE), as well as Jazz Pharmaceuticals (JAZZ) and Exelixis (EXEL). |
| CTRE | We currently hold Omega Healthcare (OHI) and CareTrust (CTRE), as well as Jazz Pharmaceuticals (JAZZ) and Exelixis (EXEL). |
| JAZZ | We currently hold Omega Healthcare (OHI) and CareTrust (CTRE), as well as Jazz Pharmaceuticals (JAZZ) and Exelixis (EXEL). |
| EXEL | We currently hold Omega Healthcare (OHI) and CareTrust (CTRE), as well as Jazz Pharmaceuticals (JAZZ) and Exelixis (EXEL). |
| BMO | Bank of Montreal (BMO) and Manulife Financial (MFC) are examples of holdings we own in this sector, which has also historically been less volatile than the broader market. That said, it is important not to get carried away. BMO has gained approximately 40% since January 1, an unusually strong performance. We are keeping a close eye on it. |
| MFC | Bank of Montreal (BMO) and Manulife Financial (MFC) are examples of holdings we own in this sector, which has also historically been less volatile than the broader market. |
| CSH-UN.TO | Chartwell Retirement Residences is listed as the largest holding in the portfolio with a 37% total return since first inclusion. |
| GILD | Gilead Sciences is held in the portfolio with a 0.3% total return since first inclusion. |
| BDGI | Badger Infrastructure Solution is held in the portfolio with a 99% total return since first inclusion. |
| GWO.TO | Great West is held in the portfolio with a 33% total return since first inclusion. |
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