Episode 73 – Quarterly Equity Update
July 15, 2021

Episode 73 – Quarterly Equity Update

Sarah Wildman is joined by David Barr and Felix Narhi for the Quarterly Equity Update.

Subtitle: Key themes for the quarter, M&A and Special Situations.

In this episode Sarah Wildman, Director of Institutional & Family Office Wealth Services, is joined by David Barr, President, CEO and Portfolio Manager of the Pender Small Cap Opportunities Fund and Felix Narhi, Pender’s Chief Investment Officer and Portfolio Manager, who manages the Pender Global Focused Fund and Pender Strategic Growth & Income Fund. Together, they co-manage the Pender Value Fund. They revisit the quarter’s performance, look at key contributors and identify which ones would fall into the special situations bucket. The team also takes a moment to talk about M&A and the number of take-outs they have had this quarter.

Key Takeaways

[01:25]David and Sarah talk about special situations and what qualifies as one.
[02:30]David provides examples of holdings that are special situations as well as their performance for the quarter.
[04:15]Felix talks about Texas Pacific Land and what makes it different.
[06:20]Felix and David dive into Spartan Delta and why they consider it a special situation.
[07:02]Sarah asks David about M&A and if the last quarter has brought M&A back to life.
[08:20]The role Pender Ventures has had in Pender’s M&A activity.
[10:07]Bill Gurley and Stitch Fix.
[11:50]David revisits some of the key points mentioned during the Pender Investment Conference on M&A
[14:15]Felix revisits his conference session with Ron Shaich and provides some highlights and updates on the restaurant sector.
[19:00]Felix explains the thesis behind Pender’s investment in PAR, which is associated with Ron Shaich’s holding company, ACT III Holdings.
[20:18]David elaborates on how hard the pandemic hit the restaurant industry and its need for digitization.
[24:00]Felix and Sarah talk about the Pender Global Focused Fund, formerly the Pender US All Cap Equity Fund, and why the name was changed.
[26:15]David gives a sneak peak at the two new funds launching this fall.
[28:45]Final thoughts and book recommendations from Felix and David.