Episode 37 – Quarterly Equity Update
April 30, 2020

Episode 37 – Quarterly Equity Update

Sarah Wildman is joined by David Barr and Don Walker to provide a quarterly equity update.

Subtitle: Making hard decisions and the right decisions to build value going forward.

Sarah Wildman, Director of Institutional Family Office Wealth Services, is joined by David Barr, Portfolio Manager of the Pender Small Cap Opportunities Fund and the Pender Value Fund, and Don Walker, Portfolio Manager of the Pender Small/Mid Cap Dividend Fund, to provide a quarterly equity update. They look back on the events of late March, their impact on small cap markets and our portfolios, and discuss potential trends and opportunities coming out of the crisis, and the steps they are taking to position portfolios for an eventual recovery.

Key Takeaways

[01:20] Sarah asks David and Don to look back at Q1, the events of March and their effects on our funds.
[02:57] David and Don discuss how the current “recovery has been a lot more pronounced with large caps than it has been with small caps”, and how they are navigating through this.
[04:14] Sarah asks David and Don to share their thoughts on the characteristics of the current rally and reasons to retain small cap investments despite short-term pessimism.
[07:50] Don shares how business leaders are navigating the downturn in business, noting that “management were a lot more proactive through this, [than they were in the 2008-2009 financial crisis]”.
[13:55] David touches on some of the trends that are likely to come out of the COVID-19 crisis and which have caught the eye of Pender’s investment team.
[19:41] Don outlines what he considers are the characteristics of companies that he believes are going to succeed on the other side of the global health crisis.
[23:30] Don and Dave highlight some new ideas in their portfolios, including Sylogist, Macro Enterprises, Mullen Trucking and Avante Security.
[33:40] The conversation closes with book recommendations from Don and David.