As we reflect on the announcement that Panera Bread, a holding in several of Pender’s funds, is about to go private thanks to a takeover by European holding company JAB, we are left feeling somewhat bittersweet. While this development is probably perceived as terrific news by most market participants, we believe some investors with a longer time horizon may feel differently. So why would the take-out of Panera, at a decent premium, be less-than-ideal news?Continue Reading
I recently read The Undoing Project: A Friendship That Changed Our Minds by Michael Lewis. When Lewis presented at the CFA Society Vancouver 50th Anniversary Dinner in November 2015, he mentioned that he was working on a book featuring the collaboration between Israeli psychologists, Daniel Kahneman and Amos Tversky. I had previously read Kahneman’s book Thinking, Fast and Slow and was excited to read about how he and Tversky had developed some of the ideas that led to that book.Continue Reading
Congratulations to the Pender Investment Team and Portfolio Managers David Barr and Felix Narhi. Fundata Canada Inc has awarded two of Pender’s funds a FundGrade A+ Award for 2016.
The awards were presented in Toronto on January 25, 2017 and recognize “Canadian investment funds that have maintained an exceptional performance rating over the entire previous calendar year.”Continue Reading
“Warren Buffett credits many of his great money decisions to his voracious reading habit. He … estimates he spends as much as 80 percent of his day reading.” He says, “Read 500 pages … every day. That’s how knowledge works. It builds up, like compound interest.” 1
At Pender, we’re passionate about investing, but we’re also passionate about reading and we are already anticipating the chance to kick back over the holidays with a good book.
Here’s what’s on the reading lists of some of our Investment Team, along with their notes.Continue Reading
There are two different scenarios that we consider when we try to mitigate the effects of risk in the Pender Corporate Bond Fund.
The two chief risks in the bond market – credit risk and duration risk
- Credit risk is the risk that the company that is being lent money is unable to repay the obligation, and further, in the event of default, the risk that the sale of the business and its assets is insufficient to repay the obligation.
- Duration risk is the risk that the price of a bond goes down, based on an increase in its yield to maturity.