PenderFund

Pender Small Cap Opportunities Fund

The Fund has been capped and is now closed to all purchases. Its sister fund, the Pender Value Fund, shares many of the same characteristics and is open to new purchases.

LIPPER_2015AWARD_VERT_CANADA (2)The award-winning Pender Small Cap Opportunities Fund is an opportunistic, concentrated portfolio. The Fund is focussed on undervalued small and microcap companies predominantly in Canada. The Manager is focused on businesses with strong underlying economics and often seeks out special situations, and has a track record of identifying catalysts, where market-leading companies have been acquired. After deep fundamental analysis these businesses are purchased at a discount to our estimate of intrinsic value.

  • Pender Small Cap Opportunities Fund Performance

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    Returns (%)
    May 31, 2016
    1 Mo.3 Mo.6 Mo.1 Yr.3 Yr.5 Yr.YTDSince Inception1201020112012201320142015
    Class A3.69.86.7-4.019.318.84.618.822.94.731.333.023.86.6
    Class F3.610.17.2-3.120.520.05.019.922.86.732.234.324.88.2
    1Since inception date for Pender Small Cap Opportunities Fund is 1 June 2009

    Growth of $10,000 since Inception (June 1, 2009)

    DateClass F
    Inception10000
    Jul'0910250
    Aug'0910600
    Sep'0910654
    Oct'0910620
    Nov'0910270
    Dec'0910800
    Jan'1010720
    Feb'1010480
    Mar'1010840
    Apr'1011960
    May'1011437
    Jun'1011418
    Jul'1011850
    Aug'1011470
    Sep'1011849
    Oct'1012776
    Nov'1012707
    Dec'1013262
    Jan'1113406
    Feb'1114195
    Mar'1114003
    Apr'1113929
    May'1114315
    Jun'1114308
    Jul'1114816
    Aug'1114125
    Sep'1114225
    Oct'1114688
    Nov'1113599
    Dec'1114157
    Jan'1215247
    Feb'1216042
    Mar'1216387
    Apr'1216037
    May'1216177
    Jun'1216729
    Jul'1216877
    Aug'1216937
    Sep'1217513
    Oct'1217776
    Nov'1217639
    Dec'1218707
    Jan'1319123
    Feb'1319324
    Mar'1319651
    Apr'1319874
    May'1320352
    Jun'1320402
    Jul'1321227
    Aug'1321406
    Sep'1322162
    Oct'1322807
    Nov'1323365
    Dec'1325127
    Jan'1425547
    Feb'1426119
    Mar'1426363
    Apr'1426449
    May'1427094
    Jun'1427217
    Jul'1427576
    Aug'1427926
    Sep'1427203
    Oct'1427520
    Nov'1428586
    Dec'1431353
    Jan'1532471
    Feb'1534081
    Mar'1534576
    Apr'1536931
    May'1536758
    Jun'1536154
    Jul'1534919
    Aug'1532807
    Sep'1532996
    Oct'1532906
    Nov'1533240
    Dec'1533925
    Jan'1632432
    Feb'1632367
    Mar'1633111
    Apr'1634382
    May'1635635
  • Pender Small Cap Opportunities Fund Holdings

    Sector Allocation(%)
    Information Technology42.1
    Healthcare13.6
    Industrials7.2
    Utilities6.4
    Consumer Discretionary6.2
    Energy5.8
    Diversified Financials5.0
    Telecommunications3.1
    Consumer Staples0.2
    Cash10.5
    Sector Allocation(%)
    Information Technology42.1
    Healthcare13.6
    Industrials7.2
    Utilities6.4
    Consumer Discretionary6.2
    Energy5.8
    Diversified Financials5.0
    Telecommunications3.1
    Consumer Staples0.2
    Cash10.5
    Geographic Allocation(%)
    Canada86.6
    United States13.4
    Geographic Allocation(%)
    Canada86.6
    United States13.4
    Top 10 HoldingsFund (%)
    TIO Networks Corp.5.8
    QHR Corporation5.4
    Absolute Software Corporation4.0
    Espial Group, Inc.3.9
    Polaris Infrastructure Inc.3.9
    Medicure Inc.3.6
    Sandvine Corporation3.5
    CanWel Building Materials Group Ltd.3.5
    SodaStream International Ltd.3.3
    Terago Inc.3.1
    Total Percentage of Top 10 Holdings40.0%
    Total Net Assets of Fund$118,763,518
  • David BarrPortfolio Manager

    • David Barr David Barr

      Mr. Barr is the President and CEO of Pender. He is also Co-Chief Investment Officer with Felix Narhi, working together in setting the direction for Pender’s overall value-based investment strategy. He is also the Portfolio Manager of several of Pender’s funds.

      LIPPER_2015AWARD_VERT_CANADA (2)In November 2015, the Pender Small Cap Opportunities Fund, managed by Mr. Barr, won a Lipper Fund Award 2015 for Best Canadian Small/Mid Cap Equity Fund over both three and five year performance periods.

      Mr. Barr has over 17 years of investment experience. He initially worked in private equity which gives him a unique background to investing capital. At the end of 2007 he became a partner at PenderFund Capital Management Ltd and was appointed Chief Investment Officer with the objective of launching Pender’s mutual fund business. In April 2016 Mr. Barr was appointed President and CEO of Pender upon the retirement of Kelly Edmison.

      Read full biography

      Mr. Barr is Portfolio Manager of the Pender Small Cap Opportunities Fund, launched in June 2009 (now closed), the Pender Value Fund, launched in July 2013 and the Pender Select Ideas Fund, launched in September 2014.

      Read full biography Mr. Barr holds a Bachelor of Science degree from the University of British Columbia and an MBA from the Schulich School of Business. He earned his Chartered Financial Analyst (CFA) designation in 2003 and is an active member of the Vancouver chapter. He is a past President of CFA Vancouver, having also served on its Board of Directors for four years. Mr. Barr is a regular guest on BNN’s Business Day program and has been interviewed for his opinions on small cap, the technology sector and value investing by the Financial Post, The Globe & Mail and other media. In December 2012 Mr. Barr was recognised as one of British Columbia’s “Top Forty Under 40” business leaders by Business in Vancouver. The Pender Small Cap Opportunities Fund has received Fundata’s FundGrade® A+ Award in 2012, 2013, 2014 and 2015.

      Value Investing

      Mr. Barr is an advocate of value investing, a strategy to estimate the intrinsic value of a company before looking to invest in that company with a “margin of safety” or a discount to intrinsic value. Mr. Barr believes that investing in a company well below intrinsic value decreases the risk and sets it up for generating long term performance and this approach forms the basis of Pender’s overall investment strategy, which aims to preserve and grow clients’ capital.

      Contrarian

      In order to execute on his value investing strategy Mr. Barr is a true contrarian. To meet his stringent value investing criteria, he looks for value in unpopular places with a view to reducing risk and finding prices that include a margin-of-safety. He refuses to follow the crowds and is driven to find quality at a discount.

    • Manager’s Quarterly Commentary – David Barr – Q1 2016

      Roller Coasters and Small Cap Stocks That was an exciting first quarter. Markets started the year in a steep downturn that was far less thrilling and much more stressful than a roller coaster. The TSX decreased 8.4%, bottoming out on January 20 at 11,843. The ride up the other side from mid-February has been almost as fast as the descent, with the TSX bouncing back and being up 13.9% from the lows at quarter end. The Russell 2000 was down 14.0% from the beginning of the year to February 11, then rebounded 16.8% to end the quarter relatively flat. When prices go down, we get excited and we have taken advantage of the downturn, utilizing our cash positions to deploy capital into what we believe are very attractive opportunities. We believe the funds are positioned very well and are similar to where we were in 2011 after the market sell off in August of that year. Our traditional opportunity set A few years ago, we read “100:1 in the stock market” by Thomas Phelps. It tracked the types of companies which, if you had invested, would have returned over 100 times your original investment over an extended period of time. While such companies are rare, ... Continue Reading

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in net asset value and assumes reinvestment of all distributions and are net of all management and administrative fees, but do not take into account sales, redemption or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.