We often call the holdings in our funds our “best ideas”. This may seem obvious – why invest in anything else? The distinction is this. While we have lots of potential investment ideas, Pender manages concentrated portfolios.
We focus on ideas that fall within our “Circle of Competence“. As such, we do not invest in all our ideas, only the ones in which we have the highest conviction, where we think we have an investment edge and as a result, the potential to outperform – our “best ideas”. Often we would rather invest more capital into one of our “best ideas,” than diversify into new, lower conviction ideas.