Inside the fund’s first year: lessons, opportunity sets, and 2026 themes
Celebrating one year of the Pender US Small/Mid Cap Equity Fund.
In this episode, Laura Baker sits down with Aman Budhwar to reflect on the Fund’s first year, the investment framework behind its early consistency, and how Aman is navigating opportunity and risk across the US small/mid cap space. They discuss AI-driven themes, sector diversification, portfolio construction discipline, and opportunities looking into 2026.
02:09
Key drivers for the Fund’s steady performance in its first year.
03:40
Aman discusses the main contributors to the Fund’s performance during it’s first year and the Fund’s diverse stocks across different sectors.
05:02
A closer look at select consumer holdings, including Estée Lauder, as demand recovered and management actions took hold.
06:56
“How do you see investing in the US small/mid cap space differently in Canada?”
07:49
Comparing benchmarks, Aman highlights how sector concentration in Canada contrasts with the broader diversification available in the US small/mid cap market.
08:42
Aman believes there is a generational investment opportunity that Canadian investors struggle to access directly.
10:12
Long-term undervalued businesses and Pender’s investment framework for identifying companies with sustainable competitive advantages.
11:53
How scenario analysis, including looking at the base case, the bull case, and the bear case helps manage downside risk before a stock ever enters the portfolio.
12:58
Portfolio construction in practice, including position sizing, maintaining a focused list of holdings, and running an active coverage list for future opportunities.
15:19
Looking ahead to 2026, key risks on Aman’s radar are discussed, including stagflation concerns, rate uncertainty, and whether AI-related capital spending remains sustainable.
18:17
Reflecting on lessons from the first year, Aman emphasizes the importance of portfolio sizing and concentration in best ideas as a critical driver of long-term outcomes.
20:33
Where Aman sees the most attractive opportunities today, including overlooked areas of healthcare, demographic tailwinds, and indirect beneficiaries of AI-driven innovation.
