Manager’s Quarterly Commentary – David Barr – Q2 2017

Written on . Posted in Commentaries, Pender Canadian Opps Fund, Pender Select Ideas Fund, Pender Small Cap Opps Fund, Pender Value Fund

We are well into summer now, our favourite time of year for taking a step back and reading about bigger picture topics that deepen our investing skill set. Halfway through the year we can assess how a couple of trends we have discussed in the recent past are either playing out as we anticipated or have continued on their merry way. We think it would be useful to revisit our last two manager’s commentaries to provide an update on current situations.

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Pender Corporate Bond Fund – Manager’s Commentary – July 2017

Written on . Posted in Commentaries, Pender Corporate Bond Fund

The Pender Corporate Bond Fund returned 0.5% in July, a reasonable result in a market that saw significant drawdowns in the benchmark credit indices.  Driving the performance of the Fund in July was strong appreciation in floating and fixed-reset rate preferred shares, as these rose with rising Government of Canada bond yields.  In addition, certain individual credit positions performed well.  For example, Grupo Famsa 7.25% notes of 2020 rallied over 10% as the Mexican furniture retailer and consumer finance company raised long-term bank debt, and consequently was able to announce a partial redemption of these US dollar notes at 103% of face value.  Offsetting these gains, to a degree, was a decline in some longer-duration credits that were affected by rate increases.

Download the full commentary as a pdf.

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EnerNOC – A Double-Take

Written on . Posted in Featured Company, Pender Blog

A first for Pender as a company held in both our Equity and Fixed Income portfolios gets taken out.

Demand-side energy management firm, EnerNOC, has announced it is being acquired by Enel Group, a European utility operator. The company was held in both the Pender Corporate Bond Fund and the Pender Value Fund, and this investment showcases the unique cross-over approach of the Pender investment team.

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Pender’s Summer Holiday Reading List 2017

Written on . Posted in Book Reviews, Pender Blog

Summertime is a slower time of year for travel for us. Fewer companies to see, conferences to attend or clients to meet with. This gives us the opportunity to use this time to dive deeper into areas or topics that can “sharpen the investing knife”. This summer there are a couple of books on our list that are relevant to the current market environment.

We have signed up with so that any time one of the books featured is purchased using the embedded links, Pender’s portion of the profits will be donated to the Vancouver Food Bank.

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Whole Foods – Amazon’s big move into the grocery value chain

Written on . Posted in Featured Company, Pender Blog

Whole Foods (NASDAQ: WFM) is the second announced takeout of a top five Pender Value Fund holding last quarter (following the Panera deal – see our blog post). WFM is also a holding in the Pender US All Cap Equity and the Pender Strategic Growth & Income Funds. But unlike PNRA, we are pleased about this announcement.

WFM is a great company, but in our view, as an independent entity, it was no longer a compounder because its best growth days were in the rear view mirror. Nevertheless, we are always on the lookout to buy a cheap stock if we believe it can reach its fair value in a timely fashion and provide a reasonable return. WFM was an attractively priced stock because the company was going through some challenging times. Ultimately, we believed that either management would be able to fix the issues, or someone else would. That “someone else” is now Amazon.

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