Episode 86 – Quarterly Equity Update
January 13, 2022

Episode 86 – Quarterly Equity Update

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

Subtitle: The popularity cycle and optionality – finding opportunities in 2022.

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 and Felix Narhi, Pender’s Chief Investment Officer and Portfolio Manager of the Pender Global Focused Fund and Pender Strategic Growth & Income Fund. Together, they co-manage the Pender Value Fund. They look back on 2021 as a whole and provide their approach to 2022.

Key Takeaways

[01:15]David provides his perspective on equity and small cap markets during 2021.
[03:55]Felix talks about popularity cycles as a driver of returns, and how to factor this into the analytics of investing and navigating these cycles.
[09:55]The conversation comes around the opportunity when strong fundamentals are not always baked into prices.
[11:10]Felix provides an example, Peloton, where the fundamentals are not being reflected in trading.
[13:20]Davide chimes in on Peloton by providing some insight into the process behind our investment, in particular following a business, building conviction while waiting for a pricing opportunity.
[14:58]David discusses an example the small cap world, Sylogist.
[17:01]Felix discusses optionality with examples and explains how Peloton fits the bill for optionality.
[20:08]Sarah asks the team where else they are seeing opportunities that are going under the radar, with David and Felix both provide their thoughts on markets outside North America, and our belief in mean reversion.
[23:05]The team provides a book and a show recommendation.