Dear Unitholders, The Pender Alternative Absolute Return Fund returned 0.4%1 in January. Robust inflows into risk assets drove returns in January, with the first two weeks of the year being particularly strong. The ICE BofA US High Yield Index reached a spread of 264bp Govt OAS mid-month before widening to finish the month at 288bp […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned 0.5%1 in December, bringing year to date returns to 2.2%. The bid for risk in late November continued into December with equity indices, excluding Nasdaq hitting new all-time highs. The high yield market produced another positive month with the ICE BofA Index seeing spreads compress by […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned 0.7%1 in November, bringing year to date returns to 1.7%. Market volatility picked up in November, driven by high issuance and concern around the business models of certain segments of the AI industry. A strong final week supported by US Thanksgiving and limited investor engagement allowed […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned -0.3%1 in October, bringing year-to-date returns to 0.7%. October was a choppier month for markets, with weakness early in the month, a bounce in the middle and a weaker tone late in the month following a hawkish turn from the Fed.  The high yield market had […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned 0.0%1 in September, bringing year to date returns to 1.0%. September saw robust risk appetite met with record high yield issuance. The ICE BofA US High Yield Index returned 0.8%, despite giving up some gains in the last week of the month. Spreads tightened by only […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned 0.0%1 in August, bringing year to date returns to 1.0%. August was an encouraging month for risk assets, the catalyst being Jerome Powell’s speech at Jackson Hole with more than half of the 7% monthly return of the Russell 2000 Index coming on August 22, the […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned 0.3%[1] in July, bringing year-to-date returns to 1.0%. Credit markets saw tighter spreads in July and positive absolute returns, but by late in the month there were signs of exhaustion as historically expensive spread levels were met with mixed earnings from cyclical market segments and significant […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned -0.3%[1] in June, bringing year to date returns to 0.8%. Markets continued to rally in June as seemingly any positive macro news event continued to drive asset prices higher despite some negative economic data points, concerns about fiscal stability in several developed economies and ongoing trade […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned -0.3%[1] in May, bringing year-to-date returns to 1.1%. Following on from the strong rebound in the second half of April, risk assets performed quite well in May with the S&P 500 generating its best monthly return in a year and a half. High yield credit spreads […]

Dear Unitholders, The Pender Alternative Absolute Return Fund returned -0.6% in April, bringing year to date returns to 1.4%[1]. Wild swings in risk assets and market tone induced by US President Trump’s “Liberation Day” announcement created opportunities for the Fund to both add on weakness and sell into strength. The ICE BofA US High Yield […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished March with a return of 1.2%, bringing year to date returns to 2.0%[1]. Risk assets performed poorly in March as euphoria surrounding Donald Trump’s inauguration was replaced by concern about the potential impact of tariffs on the global economy. The ICE BofA US High Yield Index […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished February with a return of 0.9%, bringing year to date return to 0.7%[1]. Credit markets produced positive returns in February as lower government bond yields offset widening credit spreads. The ICE BofA US High Yield Index returned 0.65% in February as spreads finished the month at […]

Dear Unitholders,  The Pender Alternative Absolute Return Fund finished January with a return of -0.1% [1].  Markets rebounded in January following a soft end to 2024. High yield spreads tightened 24bp in January to finish the month at 268bp Govt OAS, after hitting a multi-decade low of 259bp on January 22. The HFRI Credit Index, […]

Highlights The Fund generated a positive December and found opportunities in the new issue markets in both Canada and the US that included Wolf Midstream Canada LP (private) and Diebold Nixdorf Incorporated (NYSE: DBD). Our position in Neiman Marcus Group’s bond was called in late December which generated an IRR of more than 10% since […]

Highlights The riskiest segments of the high yield market performed the best in November, continuing a trend that started in July. We added to our holdings in Wolf Midstream Canada LP (private) in early December. At this time, we prefer the bonds of larger, higher quality issuers like Hilton (NYSE: HLT) with a much larger […]

Highlights Credit markets had their second negative month of 2024 in October as government bond yields reversed all the decline of the summer months. Credit spreads continued to grind tighter, with high yield spreads hitting new post 2007 lows in October. Selling activity included positions in Canadian bank low reset Limited Recourse Capital Notes (“LRCNs”) […]

Highlights With the global rate cut cycle now well underway we have been actively reducing our exposure to broadly syndicated loans. The Fund closed out a small, long position bond issued by a stressed US office REIT. It now has two positions in securities issued by office REITs, both of which are modest short positions. […]

Highlights Market returns were driven by a combination of positive carry, narrowing spreads and lower base government bond yields. Short positions in credit were detractors on the portfolio. Contributors to the Fund included a position in Legends Hospitality 5% 2026 bonds, and from several new issues in Canadian and US high-yield markets at particularly attractive […]

Highlights We have put capital to work in new issues in the Canadian dollar high-yield market as some higher quality issues have come to market at meaningfully wider spreads than similar issues in the US high yield market In July, our position in the Austin Fairmont CMBS issue was redeemed, realizing a holding period return […]

Highlights The Fund participated in new issues from Saturn Oil & Gas Inc (TSX: SOIL) and G. Cooper Equipment Rentals (private). Currently, the Fund is focused on shorter duration and event-driven positions with good carry and minimal downside. The Pender Alternative Absolute Return Fund finished June with a return of 0.0% bringing year to date […]

Highlights Despite historically expensive valuations at the start of the month, risk assets performed well. The Fund benefitted from several individual long positions where catalysts played out consistent with or even quicker than our initial investment thesis in May. The Fund added to two positions in May where we expect a combination of attractive carry […]

Highlights The Fund added to some higher quality, high yield positions in April. Following a market rebound, we raised cash in the later part of the month. We closed our short position in Charter Communication’s unsecured bonds, and our capital structure trade in CSC Holdings LLC, a subsidiary of Altice USA. The Pender Alternative Absolute […]

Highlights Cash and T-bill holdings have been reduced by about 20% of net asset value to improve portfolio yield. Additions to loan holdings, with current yields from mid-7% to mid-8%, include high quality businesses like Hilton Worldwide Holdings Inc. (NYSE: HLT) and Transdigm Group Inc. (NYSE: TDG). The Pender Alternative Absolute Return Fund finished March […]

Highlights Cash and T-bill holdings have been reduced by about 20% of net asset value to improve portfolio yield. Additions to loan holdings, with current yields from mid-7% to mid-8%, include high quality businesses like Hilton Worldwide Holdings Inc. (NYSE: HLT) and Transdigm Group Inc. (NYSE: TDG). The Pender Alternative Absolute Return Fund finished February […]

Highlights A major theme in January was the reopening of the primary market in North American liquid credit, following limited issuance in late 2023. The Pender Alternative Absolute Return Fund selectively participated in new issues in both investment grade and high yield markets. We focused on high-yield bonds with all-in yields of 7% or more, […]

Highlights One of the drivers of market performance in December was strong inflows for risk assets combined with limited new issue supply in credit markets. Despite our generally defensive positioning there are some areas of markets where we see value and opportunities. We continue to like our holdings in high quality term loans which trade […]

Highlights In November we significantly added to our US Treasury Bill holdings as well as high-quality term loans. Our purchases included loans backed by Hilton Worldwide Holdings Inc. (NYSE: HLT), TransDigm Group Inc. (NYSE: TDG) and Four Seasons Holdings Inc. (private). We also topped up long positions in the Canadian dollar high yield market that […]

Highlights Both widening credit spreads and higher government yields negatively impacted returns for the month. The Fund increased market exposure with the focus on high-quality, high yield bonds trading at attractive discounts to par. The Fund finished the month with our highest exposure to the market all year - about 80% net long excluding positions […]

Highlights The primary driver of returns in September were higher interest rates, as 2024 rate cuts are being priced out in favour of a “higher for longer” for reality. The Fund continued to sell into market strength early in September before increasing exposure as markets sold off towards the end of the month. The Fund […]

Highlights • The Fund benefited from volatility in credit markets with a bias to protecting capital. • The Fund’s exposure to event-driven positions was significantly reduced. The Pender Alternative Absolute Return Fund finished August with a return of 1.2%, bringing year-to-date returns to 5.2% . Following two months of decreasing risk premiums and volatility, both […]

Highlights The broad-based rally provided an opportunity to sell liquid high-yield positions at prices that we viewed as fully valued. There were several positive developments within our Event Driven book including Black Knight Inc. (NYSE: BKI), Arconic Corp. (NYSE: ARNC), and PDC Energy Inc. (NASDAQ: PDCE) We are watching commercial real estate where defaults mount […]

Highlights The Fund added to event-driven holdings, most notably the 5.75% 2026 notes issued by PDC Energy Inc. (Nasdaq: PDCE) which is in the process of being acquired by Chevron Corp. (NYSE:CVX). New issue activity picked up and we participated in several transactions, most notably Northland Power Inc.’s (TSX: NPI) inaugural hybrid issue which priced […]

Highlights With improved valuations, the Fund added to long credit positions, while also topping up short positions in equity index ETFs. We believe that the divergence between credit and equities, which has been widening since March, will eventually mean revert, as credit conditions are typically a leading indicator of economic activity and asset prices. The […]

Highlights Several of our shorter duration holdings experienced solid gains in April, including secured bonds of Greystar Real Estate Partners LLC (private) and Life Time Group Holdings Inc. (NYSE: LTH). In banks, our focus was on AT1 securities issued by the two largest Canadian banks trading prices of 75% of par or lower. We established […]

Highlights The Fund added back a position in Valvoline Inc. 4.25% 2030 (NYSE:VVV) that we had sold out of in February. This bond is expected to be called in Q1 2024 with the proceeds from the already-completed asset sale to Saudi (Aramco).  We exited our position in Rogers Communications Inc. special mandatory redemption bonds, as […]

Highlights The Fund’s positioning was very defensive to start the month and finished with more market exposure compared to the end of January. However, we remain positioned defensively as spreads are tighter than the historic average, with near-term risks for asset prices skewed to the downside in our view. We added to holdings that are […]

Highlights January 2023 was the strongest start to the year for credit since 2019 and the second strongest year since 2009. We added or established positions on bonds issued by SECURE Energy Services Inc. (TSX: SES), Superior Plus LP (TSX: SPB) and Keyera Corp. (TSX: KEY). In the new issues market, we participated in bonds […]

Highlights The Fund added to loan exposures, participating in the TransDigm Group Incorporated (NYSE: TDG) new term loan, and added a position in Maxar Technologies Inc. (Nasdaq: MAXR) 2027 bond. We exited our position in Open Text Corp. (TSX: OTEX) unsecured bonds on strength. The Fund entered the commercial mortgage-backed securities (CMBS) market, buying a […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished November with a return of 0.3%[1], bringing year-to-date performance to 5.1%. November was one of the more difficult market environments for the Fund to navigate, as a market that is historically not cheap experienced sharp rallies. The high yield market was up for a second consecutive […]

Highlights There was a significant bounce in most asset classes, as dip buyers emerged following significant repricing from mid-August to mid-October Large macro moves have created pockets of dislocation within credit markets, especially between Investment Grade and High Yield credits We believe that a large driver of the divergence between investment grade and high yield […]

Highlights: September proved to be another challenging month for markets. It was the third worst month for the high-yield market since 2008. Early September presented the Fund with some good relative value trading opportunities. If there were a significant spread-widening event for large, well-capitalized Canadian banks, we expect to be buyers on weakness. It was […]

The Fund has marked one year since its inception and we are happy to now report the performance of the Fund. The Pender Alternative Absolute Return Fund finished August with a return of 1.5% bringing year to date performance to 2.9%[1]. Credit markets experienced a sharp reversal in August with a very strong tone in […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished July with a unit price of $9.81 and distributions of $0.04 per unit[1]. Download PDF July 2022 saw a strong rebound across most asset classes following a historically weak first half of 2022. The ICE BofA US High Yield Index returned 6.02%, the best monthly return […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished June with a unit price of $9.70 and distributions of $0.03 per unit[1]. Download PDF June 2022 saw significant weakness in the high yield market as the strong bounce in late May faded ahead of US CPI which came in much hotter than expected. This erased […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished May with a unit price of $9.86 and distributions of $0.06 per unit[1]. May 2022 brought a wild swing to markets with rates, credit and equities all selling off before rebounding sharply late in the month. The ICE BofA US High Yield Index returned 0.25%, which […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished April with a unit price of $10.00 and distributions of $0.05 per unit[1]. Download PDF April 2022 was a volatile month for markets as the rubber starts to meet the road with monetary policy normalization accelerating. The very sharp rebound for risk assets in late March […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished March with a unit price of $10.01 and distributions of $0.05 per unit[1]. Download PDF March 2022 was a volatile month for markets with a dramatic pivot from “risk off” to “risk on” in the middle of the month. Risk assets were not deterred by the […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished February with a unit price of $10.01 and distributions of $0.02 per unit[1]. Download PDF February 2022 was a volatile month for markets with the high-yield market putting up its second consecutive negative month and fifth negative month out of the last six. The ICE BofA […]

Dear Unitholders, The Pender Alternative Absolute Return Fund finished January with a unit price of $10.02 and distributions of $0.06 per unit[1]. Download PDF January 2022 was the worst month for the high-yield market since March 2020 and the worst January total return ever. The ICE BofA High Yield Index returned -2.75%. The negative total […]

Combining the best of both a mutual and a hedge fund into one. In this episode Geoff Scott chats with Justin Jacobsen, Portfolio Manager of the Pender Alternative Absolute Return Fund. Together they discuss Justin’s background in investing, his shift from equity to credit and introduce the Pender Alternative Absolute Return Fund. Geoff and Justin […]