Episode 81 – Small Cap Update
October 21, 2021

Episode 81 – Small Cap Update

Sarah Wildman is joined by David Barr, Sharon Wang and Tracy Tidy for the Small Cap update.

Subtitle: Searching for long runways and strong unit economics

In this episode Sarah Wildman, Director of Institutional & Family Office Wealth Services, is joined by David Barr, CEO and Portfolio Manager of the Pender Small Cap Opportunities Fund, Sharon Wang, Senior Equity Analyst and Tracy Tidy, Equity Analyst. They look back on what happened in the quarter, some key contributors to the Fund, positioning and a few key characteristics of companies poised to scale up, leaning on Sharon’s expertise in the tech space and Tracy’s in-depth knowledge of the food sector.

Key Takeaways

[1:10] Tracy Tidy introduces herself and talks about her areas of focus.
[1:30] David tells us the “Tale of Two Markets” and the impact it has had on small caps.
[3:50] With M&A activity at record highs, David provides some insight on how he aims to take advantage of the current M&A environment.
[5:45] Tracy and Sharon follow up with more insights into the current M&A environment.
[9:45] Sarah asks the team about Sangoma and why it remains an interesting holding for the team.
[12:10] The conversation shifts to the characteristics the team is looking for in potential new small cap investments.
[17:20] Sharon provides an example of a company (WeCommerce) that demonstrates the traits of online commerce in the technology space.
[20:28] Tracy provides an example of an opportunity in the food sector and discusses some of the real drivers of growth she is seeing.
[24:50] David provides some final thoughts on how the Pender portfolios are currently positioned.
[25:35] The team provides book recommendations.