| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.4% | 5.7% | 1.8% |
The Bristol Gate Canadian Equity Strategy returned 5.7% net in Q2 2026, trailing the S&P/TSX Composite's 7.0% return by 123 basis points. The quarter saw a sharp reversal from Q1, with commodity trades unwinding as WTI crude fell over 20% following a US-Iran agreement to reopen the Strait of Hormuz, and gold retreated from record highs. The portfolio's underweights in Materials and Energy contributed approximately +258 basis points as those sectors declined. However, a powerful re-rating of Canadian banks, which drove nearly all the benchmark's gains with a +25.6% sector return, created significant headwinds. All six major banks beat earnings and raised dividends, but the portfolio's underweight positioning resulted in approximately -340 basis points of stock selection drag, concentrated in Financials and Consumer Discretionary. The manager exited Thomson Reuters and Canadian National Railway, redeploying capital into Cenovus Energy and Cameco to capture dividend-growth opportunities in energy and uranium. The portfolio maintains its focus on approximately 20 high-quality, dividend-growing companies with 10.3% trailing dividend growth versus 5.0% for the index.
The Bristol Gate Canadian Equity Strategy focuses on high-quality, dividend-growing Canadian companies with durable cash flows and conservative balance sheets, designed to compound attractive risk-adjusted returns across full market cycles through disciplined concentration in approximately 20 equally-weighted positions.
The portfolio remains concentrated in high-quality Canadian companies with durable cash flows, conservative balance sheets, and clear dividend-growth visibility. This construction will trail in narrow, commodity- or momentum-led markets and is designed to compound attractive risk-adjusted returns and growing income across full cycles. The manager remains committed to executing this strategy with discipline.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 17 2026 | 2026 Q2 | CCL-B.TO, CCO.TO, CNR.TO, CP.TO, CVE.TO, EFN.TO, JWEL.TO, PET.TO, SJ.TO, TIH.TO, TRI.TO, X.TO | banks, Canada, dividends, energy, financials, materials, Quality, value |
CCL.TO JWEL.TO TIH.TO X.TO PET.TO EFN.TO CVE.TO CCO.TO TRI.TO CNR.TO |
Bristol Gate's Canadian equity strategy trailed by 123 basis points net in Q2 as commodity trades reversed and Canadian banks surged +25.6%, driving nearly all benchmark gains. The portfolio's Materials and Energy underweights added +258 basis points, but underweight bank exposure cost -340 basis points. New positions in Cenovus and Cameco target dividend growth in energy and uranium. The concentrated, quality-focused approach remains unchanged. |
| Apr 21 2026 | 2026 Q1 | CM.TO, CP.TO, EFN.TO, PET.TO, TFII.TO, TIH.TO, TRI.TO, TVK.TO | Canada, commodities, dividends, energy, industrials, materials, Quality | - | Bristol Gate underperformed by 745bp in Q1 as commodity sectors surged while quality dividend-growth stocks lagged. Energy's 30% rally and gold hitting $5,000 drove narrow market leadership that penalized the strategy's structural underweights. Stock-specific weakness in TerraVest and Pet Valu compounded allocation headwinds. Management maintains conviction in high-quality holdings positioned for full-cycle outperformance. |
| Jan 20 2026 | 2025 Q4 | CLS.TO, CM.TO, DOL.TO, EFN.TO, ENGH.TO, EQB.TO, FSV.TO, L.TO, OTEX.TO, PBH.TO, PET.TO, RY.TO, SHOP.TO, TFII.TO, TIH.TO, TRI.TO, TVK.TO | Banking, Canada, commodities, Copper, dividends, gold, materials, value |
TVK CN FSV TRI CN OTEX CN RY CN PET CN CM CN TFII CN |
Bristol Gate's Canadian Equity strategy significantly lagged the S&P/TSX's 31.68% gain in 2025, primarily due to missing the commodities boom in gold and copper. The dividend-focused manager made strategic portfolio adjustments, exiting companies with deteriorating dividend growth while adding quality Canadian banks and retailers. Materials sector dominance highlighted the challenge of maintaining dividend discipline during commodity cycles. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
FinancialsCanadian banks drove the quarter with approximately +25.6% sector returns. All six major banks beat earnings expectations and raised dividends, supported by lower credit loss provisions and resilient capital markets revenue. The portfolio's underweight positioning in banks was the primary drag on relative performance. |
Banks Dividends Earnings Capital Markets Credit Stress |
EnergyEnergy sector fell approximately -5.0% as WTI crude dropped over 20% in June to around US$70/bbl following a US-Iran memorandum to reopen the Strait of Hormuz. The portfolio's underweight in Energy contributed about +86 basis points of positive allocation. Cenovus Energy was added as a new position to capture expected free cash flow and dividend growth. |
Oil Exploration & Production Dividends Integrated Oil & Gas | |
MaterialsMaterials fell approximately -11.5% as gold retreated from early-year records and precious metals miners declined sharply. The portfolio's 9.8% average weight versus 18.1% benchmark weight contributed about +172 basis points through allocation. The portfolio lacks precious metals exposure, holding only CCL Industries and Stella-Jones. |
Gold Gold Miners Copper Mining Services | |
DividendsThe portfolio maintains focus on high-quality dividend-growth companies with 10.3% trailing twelve-month dividend growth versus 5.0% for the index. Dividend visibility and growth potential remain central to positioning, with new additions Cenovus and Cameco selected partly for dividend growth prospects. |
Buybacks Earnings Quality | |
NuclearCameco was added as a new position, representing the highest quality pure-play uranium company. The thesis centers on tightening uranium markets, utility contracting below replacement rates, and increased global nuclear demand driven by decarbonization, energy security, and AI/data center power needs. |
Uranium Energy Transition Data Centers AI | |
AIThomson Reuters was exited after approximately five years due to concerns that generative AI tools would intensify competition and erode its legal data moat. The AI debate's uncertain timeline and deteriorating dividend-growth profile prompted capital redeployment. Toromont's AVL data center enclosure business continues to ramp production. |
Data Centers Cloud Semiconductors | |
| 2026 Q1 |
DividendsThe portfolio's dividend-growth framework is central to stock selection, focusing on companies with internally generated free cash flow supporting dividend growth. This approach creates structural underweights to commodity sectors while identifying high-quality businesses with pricing power and recurring demand. |
Dividend Growth Free Cash Flow Quality Income |
OilEnergy sector surged 30.1% driven by geopolitical risk in Middle East and rising crude prices. The portfolio maintains a structural underweight to Energy due to commodity price volatility and mean-reverting nature of commodity-driven free cash flows. |
Energy Crude Oil Geopolitical Risk Commodity | |
GoldGold surpassed $5,000 per ounce for the first time, driven by central bank buying in emerging markets and structural shift away from US dollar reserves. Portfolio maintains limited precious metals exposure due to commodity price dependency and modest dividend yields from miners. |
Precious Metals Central Banks Reserve Currency | |
QualityPortfolio focuses on high-quality Canadian companies with durable cash flows, conservative balance sheets, and clear dividend growth visibility. This quality-focused approach creates temporary underperformance during commodity rallies but delivers attractive risk-adjusted returns over full cycles. |
Balance Sheet Cash Flow Competitive Advantage | |
| 2025 Q4 |
AIManager views AI as a classic capital cycle bubble comparable to past infrastructure manias. Sees improbable returns on massive capital spending, creative financing, and energy constraints pushing physical limits. Expects this to end badly for early investors despite societal benefits. |
Artificial Intelligence Data Centers Capital Cycle Bubble Infrastructure |
ValuePortfolio trades at 12.2x earnings with 8.2% earnings yield versus S&P 500's 26x multiple and 3.9% yield. Active value management maintains undervaluation through trimming expensive positions and adding to undervalued ones. Businesses reinvest at 19.6% return on equity. |
Value Investing Earnings Yield Active Management Undervalued Price to Earnings | |
GoldGold mining companies Kinross and Newmont delivered exceptional returns with gold reaching $5,000 per ounce. Mining profitability surged with net margins rising to 30%+ range. Manager constructive on long-term gold price for various unfortunate reasons. |
Gold Mining Kinross Newmont Commodity Cycle Precious Metals | |
RetailIncreased allocation to dollar stores and retailers from 17.1% to 25.9% of portfolio. Added to Five Below during tariff volatility. Retailers earn good returns on capital despite low profit margins through efficient capital turnover and working capital management. |
Dollar Stores Retail Five Below Tariffs Working Capital |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | TIH.TO | Toromont Industries | Industrial Distribution | Trading Companies & Distributors | Bull | Toronto Stock Exchange | AI infrastructure, Caterpillar Dealer, Data Centre Infrastructure, earnings growth, Equipment Distributor, Industrials, M&A Consolidation, Record Backlog | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | X.TO | TMX Group | Financial Data & Stock Exchanges | Financial Exchanges & Data | Bull | Toronto Stock Exchange | Data Services, Exchange Consolidation, Financial Exchanges, financials, M&A growth, Market Infrastructure, Record Earnings, Valuation Digestion | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | PET.TO | Pet Valu | Specialty Retail | Specialty Stores | Bear | Toronto Stock Exchange | Consumer Caution, Consumer Discretionary, earnings decline, margin compression, Pet Products, Promotional Intensity, Specialty retail, Weak Same-Store Sales | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | EFN.TO | Element Fleet Management | Rental & Leasing Services | Specialized Finance | Bull | Toronto Stock Exchange | Active Overweight, capital-light model, Dividend Growth, financials, Fleet Management, recurring revenue, Sector Rotation, Specialized Finance | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | CVE.TO | Cenovus Energy | Oil & Gas Integrated | Integrated Oil & Gas | Bull | Toronto Stock Exchange | Balance Sheet Deleveraging, Canadian Producer, Dividend Growth, energy, Free Cash Flow, Integrated Oil & Gas, M&A Consolidation, Oil sands | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | CCO.TO | Cameco | Uranium | Uranium | Bull | Toronto Stock Exchange | AI infrastructure, Data Centre Power, Decarbonization, Dividend Growth, energy, Energy security, Net Cash Balance Sheet, Nuclear Power, Supply Discipline, uranium | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | TRI.TO | Thomson Reuters | Specialty Business Services | Research & Consulting Services | Neutral | Toronto Stock Exchange | AI disruption risk, Business Information Services, Competitive Moat Erosion, Dividend Growth Deterioration, generative AI, Industrials, Legal Technology, Position exit, proprietary data | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | CNR.TO | Canadian National Railway | Railroads | Railroads | Neutral | Toronto Stock Exchange | Dividend Growth Comparison, freight transportation, Industrials, Lower Growth Profile, portfolio optimization, Position exit, railroads, Sector Rotation | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | CCL.TO | CCL Industries | Other | Metal & Glass Containers | Bull | Toronto Stock Exchange | Defensive positioning, Label Solutions, materials, Non-Commodity Exposure, Relative value, Sector Outperformance, Specialty Packaging | Login |
| Jul 17, 2026 | Fund Letters | The Bristol Gate Canadian Equity | JWEL.TO | Jamieson Wellness | Packaged Foods | Personal Products | Bull | Toronto Stock Exchange | Canadian Consumer, consumer staples, Health & Wellness, M&A Target, Strategic Buyer Interest, Takeover Premium, Vitamins & Supplements | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | TVK CN | TerraVest Industries Inc. | Industrials | Industrial Conglomerates | Bull | New York Stock Exchange | Acquisitions, buybacks, cashflow, growth, Industrials | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | FSV | FirstService Corporation | Industrials | Industrial Services | Neutral | NASDAQ | Cyclicality, earnings, Propertyservices, valuation | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | TRI CN | Thomson Reuters Corporation | Industrials | Research & Consulting Services | Neutral | New York Stock Exchange | AI, cashflow, Government, Info_Services | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | OTEX CN | OpenText Corporation | Information Technology | Application Software | Neutral | New York Stock Exchange | ARR, cloud, dividends, Retention, Software | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | RY CN | Royal Bank of Canada | Financials | Diversified Banks | Bull | New York Stock Exchange | banking, Capitalstrength, dividends, scale | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | PET CN | Pet Valu Holdings Ltd. | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | cashflow, dividends, expansion, Petcare, retail | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | CM CN | Canadian Imperial Bank of Commerce | Financials | Diversified Banks | Bull | New York Stock Exchange | banking, Capital, dividends, oligopoly | Login |
| Jan 20, 2026 | Fund Letters | Achilleas Taxildaris | TFII CN | TFI International Inc. | Industrials | Integrated Freight & Logistics | Bull | New York Stock Exchange | cashflow, Freight, Logistics, Margins, recovery | Login |
| TICKER | COMMENTARY |
|---|---|
| X.TO | TMX Group was the single largest detractor from relative performance, returning approximately -5.5% on an average weight of about 5.2%. The decline was not fundamental. TMX reported record first-quarter 2026 results in early May, revenue of roughly C$488M, up about 16% year-over-year, with diluted earnings per share more than doubling - and announced an agreement to acquire CBOE Canada in April, extending its market structure footprint. The share price weakness reflected valuation digestion after a strong prior run. |
| PET.TO | Pet Valu returned approximately -13.5% on an average weight of about 4.2%, extending the weakness that began in Q1. The proximate cause was the company's first-quarter 2026 result reported May 12, which showed revenue growth of roughly 3% but a decline in adjusted EBITDA and adjusted earnings per share (to about C$0.31 from C$0.36), flat same-store sales, and roughly 160 basis points of margin compression amid heightened promotional intensity and cautious consumer demand. The shares fell about 14% on the release. |
| EFN.TO | Element Fleet returned approximately -2.5% on an average weight of about 4.3%. As a large active overweight in a name that drifted lower while its sector advanced, it registered a negative relative contribution despite no change in the underlying capital-light, recurring revenue model or its dividend-growth trajectory, the same rotation dynamic described in Q1. |
| CCL-B.TO | CCL was the largest positive relative contributor in the portfolio. A modest absolute gain of about +6.5% translated into a large relative benefit because CCL sits in Materials - the benchmark's worst sector - while carrying none of the precious-metals exposure that drove that sector down. |
| JWEL.TO | Jamieson was a portfolio standout, returning approximately +22.0%. In late June the company confirmed it had received an unsolicited acquisition proposal and was exploring a potential sale, retaining BMO Capital Markets and Canaccord Genuity to advise; press reports placed a potential transaction above C$2 billion. The company cautioned that there is no assurance a transaction will result. |
| TIH.TO | Toromont returned approximately +20.0%. Its first-quarter result (reported April 28) showed net earnings up about 25% and record bookings, with backlog reaching roughly C$1.7B, up about 30% year-over-year, driven substantially by the AVL data centre enclosure business, whose production continues to ramp. Toromont raised its ownership of AVL to 80% during the quarter. |
| CVE.TO | Cenovus is a leading Canadian integrated energy company and the country's second largest oil and gas producer. Following its 2021 merger with Husky Energy and the late-2025 acquisition of MEG Energy, we see an opportunity in the name despite the recent run in the shares on higher oil prices. The expected free cash flow windfall should accelerate balance sheet deleveraging following the MEG acquisition, which in turn should support growing capital returns to shareholders, principally through dividend growth. |
| CCO.TO | Cameco is the highest quality pure play public uranium company, with Canadian mining assets, a fuel services business, and a 49% interest in Westinghouse that extends its reach across the nuclear value chain. It potentially stands to benefit from a tightening uranium market, utility contracting remains below replacement rate and long-term prices are moving higher, and increased global nuclear demand, which is increasingly underpinned by decarbonization, energy security, Western supply-chain diversification, and AI/data centre power needs. Management's supply discipline, adding production only when supported by long-term contracts, should protect margins, and a net cash balance sheet with limited internal capital needs supports high dividend growth potential. |
| TRI.TO | Thomson Reuters - exited after roughly a five-year holding period. The name was long regarded as an artificial intelligence beneficiary given its proprietary data, particularly in the legal vertical; more recently it de-rated on fears that generative AI tools would intensify competition and erode its moat. With that AI debate likely to take time to resolve, and the name's forward dividend-growth profile deteriorating, we elected to redeploy the capital. |
| CNR.TO | Canadian National Railway - sold after nearly a decade in the portfolio. We continue to find the freight-rail space attractive and retain exposure through Canadian Pacific Kansas City, re-introduced earlier this year, which offers higher growth potential, evident in recent dividend increases of approximately 18% at CP versus roughly 3% at CN. |
| CP.TO | We continue to find the freight-rail space attractive and retain exposure through Canadian Pacific Kansas City, re-introduced earlier this year, which offers higher growth potential, evident in recent dividend increases of approximately 18% at CP versus roughly 3% at CN. |
| SJ.TO | The portfolio's Materials exposure, which lacks exposure to precious metals miners, held through CCL Industries (+6.5%) and Stella-Jones (-15.4%), generated a return of approximately -4.5%, well ahead of the benchmark. |
| 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 | |||
