Manager’s Q4 Commentary – Felix Narhi

Written on . Posted in Commentaries, Pender Strategic Growth and Income Fund, Pender US All Cap Equity Fund, Pender Value Fund

“Since 1871, the market has spent 40% of all years either rising or falling more than 20%. Roaring booms and crushing busts are perfectly normal.” – Morgan Housel

Last year was a banner year in the US markets. Following the election of Trump, the S&P500 bolted out of the gates on initial optimism for deregulation across many sectors and ended the year with investors cheering huge US corporate tax cuts. In what has become a familiar refrain, a handful of mega cap internet and technology stocks continued their momentum.

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Pender Corporate Bond Fund – Manager’s Commentary – February 2018

Written on . Posted in Commentaries, Insights & Ideas, Pender Corporate Bond Fund

The Pender Corporate Bond Fund returned 0.5% in February, not a large gain but, within the context of generally weak market conditions, an acceptable result. 

Strong performers for the Fund in February included our position in the distressed General Obligation bonds of Puerto Rico which rallied on investors’ more positive view as the island’s recovery and debt restructuring efforts showed progress. Our position in Rite Aid 2023 bonds rallied over 10% on the news of that company’s merger with Albertson’s, an event that triggers a work-out of this issue at (or above) 101% of face value. In addition, our position in the 2019 convertible notes of Synchronoss Technologies rose strongly on news of a credit-positive equity financing, combined with that company’s progress in addressing corporate reporting issues. Our interest in post-petition claims of Samson Resources also rallied on expectations of higher recovery from legal claims.

The gains above were offset to a degree by some weakness in investment grade credit and certain closed-end funds.

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Pender Corporate Bond Fund – Manager’s Commentary – January 2018

Written on . Posted in Commentaries, Insights & Ideas, Pender Corporate Bond Fund

The Pender Corporate Bond Fund returned 2.2% in January, a very strong result which was aided by a few key catalyst events that allowed us to overcome somewhat difficult credit market conditions.

Strong performers for the Fund in January included our position in the heavily discounted convertible notes of Primero Mining, which rallied towards par on a takeover. Inotek convertible notes also moved up strongly on the company’s merger with Rocket Pharmaceuticals. Still more strength came from our positions in a number of floating rate Canadian preferred shares as this group rose sharply on a higher Bank of Canada overnight rate.

Offsetting the strong performance, to a small degree, was generally weaker pricing in investment grade bonds, particularly those of more than three years in duration.

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Manager’s Quarterly Commentary – David Barr – Q4 2017

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

Who is the better hockey player? Wayne Gretzky or Sidney Crosby.

Since the teams I usually cheer for have demonstrated a complete inability to compete for the Stanley Cup this year, I’m left to ponder more meaningful long-term questions about the game of hockey such as, is Sidney Crosby today better than Gretzky was in his day? The fun part about this question is that we will never know. What we do know is that the game of hockey has changed a lot in the last 30 years. The skill level has increased dramatically over the years. As a result the worst players in the NHL today are significantly better than the worst players of 30 years ago and so the whole basis of competition has changed. 

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