Glossary

The Tide Goes Out Investing

The Tide Goes Out Investing

Written by Investment Team

In extraordinary times, when markets are stressed the broad opportunity set widens. But from a psychological perspective, it sure doesn’t feel like an opportunity. “The tide goes out” in periods like the financial crisis of […]

May 1, 2019
Needle in the Haystack Investing

Needle in the Haystack Investing

Written by Investment Team

In normal times, when markets are relatively tranquil the opportunity set is narrow. Armies of smart analysts and investors do their research and stocks are priced much more efficiently than less followed stocks. It’s challenging […]

May 1, 2019
Protecting Capital

Sharpe Ratio

Written by PenderFund

Almost all investments come with an element of risk but does this risk contribute to your return? Sharpe ratio is one of the calculations available to investors to assess returns on a risk-adjusted basis – […]

October 4, 2016
Protecting Capital

Beta

Written by PenderFund

Beta is a measure that investors can use when assessing a potential investment for volatility. Beta measures correlation to the market (or a benchmark) and how susceptible a stock or fund is to the fluctuations […]

October 4, 2016
Protecting Capital

Alpha

Written by PenderFund

Alpha is the measure of a fund’s actual performance above its anticipated performance, as predicted by beta. Take the fund’s performance against its benchmark on a risk-adjusted basis to ascertain the excess. This relative outperformance […]

October 4, 2016
Protecting Capital

Risk

Written by PenderFund

At Pender, we consider ourselves owners of a business, not just its stock, which means that when we think about risk we believe that real investment risk is not measured by fluctuations in a stock’s […]

October 4, 2016
Growing Capital

Close the Discount

Written by PenderFund

The classic investing advice is to “buy low and sell high”. The objective of investing in “Close the Discount” ideas is to buy a stock when it is trading at a substantial discount to a […]

July 30, 2015
Growing Capital

Compounders

Written by PenderFund

Compounding is one of the bedrock concepts of investing – “the ability to generate earnings from previous earnings”1. For us, “Compounders” are those companies that can internally compound their intrinsic value at a mid-teens annualized […]

July 30, 2015
Protecting Capital

Duration

Written by PenderFund

Duration is a measure of a bond’s price sensitivity to a change in interest rates. It is a key factor in differentiating how funds are positioned for interest rate risk. The longer the duration (the […]

May 5, 2015

Active Share

Written by PenderFund

Active share is a relatively new calculation1 and provides a measurement of whether or not a portfolio “hugs” an index or not, which is an indication of how actively a portfolio is being managed. An […]

February 27, 2015
Why Pender

Best Ideas

Written by PenderFund

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 […]

February 20, 2015
Forward Thinking

Too Hard Pile

Written by PenderFund

The “too hard pile” is a phrase we first heard coined by Charlie Munger, Berkshire Hathaway, “At Berkshire we have three buckets: yes, no and too hard.” In order to find potential investments for our […]

February 20, 2015
Forward Thinking

Opportunistic

Written by PenderFund

Being opportunistic in the world of finance is generally associated with an aggressive strategy to make money by taking advantage of something that is undervalued, vulnerable or depressed. Property, securities or companies are targeted, bought, […]

March 18, 2014
Forward Thinking

Special Situation

Written by PenderFund

In finance a security that is labelled a “special situation” is generally undergoing a perceived value changing event such as a restructuring, merger or acquisition and even bankruptcy proceedings. The situation could have positive or […]

March 18, 2014
Why Pender

Circle of Competence

Written by PenderFund

Warren Buffett and Charlie Munger said it best when they recommended that investors stay within their “Circle of Competence”. Your circle of competence is the knowledge base you have developed, over and above the average […]

March 18, 2014
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