[…] absolute returns over the course of 2021. Two stocks made significant additive contributions to returns of the Fund in the fourth quarter Trex Company (“TREX”), a long -time Pembroke holding and manufacturer of composite decking products, had positive developments during the quarter, bringing its stock price to higher levels. The company announced the addition […] […]
[…] to 2021 after posting strong absolute and relative returns in 2020. While the firm’s portfolios trailed their benchmark over the past three months, the jump in low -quality, indebted, and cyclical companies made the Russell 2000 a difficult benchmark during this period. The firm has no exposure to energy and limited exposure to financials, […] […]
[…] have no energy stocks and to be meaningfully underweight the financial sector served as mild headwinds. Generally, the past three months saw profitable companies outperform their loss -making peers. Furthermore, heavily shorted stocks, which enjoyed a strong start to 2021, came back to earth relative to less controversial companies. Pembroke seeks businesses that meet […] […]
Pembroke’s Canadian equity portfolios posted strong gains in the third quarter of 2021, outpacing broader Canadian equity markets which posted flat returns. Canadian equity indices reached all -time highs in early September but declined late in the quarter as uncertainty created by the fourth wave of the COVID pandemic, evolving monetary and fiscal responses […] […]
[…] performance across sectors. Pembroke’s security selection stood out in this environment. In the case of several holdings that were challenged by COVID, but still had compelling long -term opportunities, the investment team’s patience was rewarded. The US portfolio’s key underlying metrics, such as growth, balance sheet strength and returns on capital, remain healthy and […] […]
[…] trailing broader Canadian equity markets, which ended the period in positive territory. Markets were volatile through the quarter, as the emergence of the Omicron variant of COVID -19 added to ongoing challenges with supply chain disruptions, emerging inflationary pressures, and ever evolving monetary and fiscal policies. Moreover, market breadth was narrow, with returns tilted […] […]
[…] Fund (“PCF”) posted strong absolute and relative performance in the third quarter of 2021, compared to its benchmark, the Russell 2000 Index (“R2000”), which declined. On a year -to–date basis through September 30, 2021, the PCF gained in absolute terms, but lagged the Russell 2000 Index. 3–Month YTD 1–Year 3–Year Since Inception, annualized Since Inception, cumulative […] […]
[…] Portfolio Commentary Pembroke’s Canadian equity portfolios gained during the first quarter of 2021, building on the momentum enjoyed in 2020 following the market trough at the onset of the COVID -19 pandemic. Optimism regarding the effectiveness of worldwide vaccination campaigns buoyed market sentiment though the emergence of a third COVID wave has increased uncertainty about the eventual path to normalization. Market participants also grappled with the implications of coordinated monetary and […] […]
The Pembroke Concentrated Fund (“PCF”) modestly underperformed its benchmark in Q2 2021, as growth stocks continued to lag value stocks, and high -quality stocks broadly lagged low–quality stocks.    With the positive vaccine announcements and Democratic sweep in the November US elections, North American stock markets simultaneously experienced a reflationary  rally through the end […] […]
[…] relative performance in the fourth quarter of 2021. For the year, PCF gained over 14% in absolute terms, and performed in line with the Russell 2000 Index. 3 -Month YTD 1–Year 3–Year Since Inception, annualized Since Inception, cumulative PCF A, CAD 4.3 14.6 14.6 25.5 20.7 108.7 PCF A, USD 4.4 15.5 15.5 28.4 19.8 […] […]
Equity markets around the globe climbed the proverbial “wall of worry” in the fourth quarter of 2021. Faced with the COVID -19 Omicron variant wreaking havoc, fears of rising interest rates and their impact on asset valuations, and ongoing geopolitical tensions between China and the US, investors focused their attention on the prospect of […] […]
[…] at the end of this tunnel. It flickers at times, casting doubt on when it will shine brightest. But it is there. And rarely has the forward -looking nature of equity markets been on more full display than it is today. Long–term investors do not focus on the past or even the present. As […] […]
Equity markets around the globe climbed the proverbial “wall of worry” in the fourth quarter of 2021. Faced with the COVID–19 Omicron variant wreaking havoc, fears of rising interest rates and their […]
[…] Pembroke’s Canadian equity portfolios built upon the gains generated earlier in the year. Investors reacted favourably to progress regarding the reopening of the global economy from COVID -19 lockdown measures, despite challenges with new variants and a third wave of infections. While debates regarding emerging inflationary pressures, monetary policy and fiscal stimulus continued, market […] […]
[…] hydrological events is tracked by global insurance and reinsurance risk experts, and their databases show the growing economic cost of climate change. The rising social and economic costs of climate change are driving global policy -makers to take more aggressive action to reduce carbon emissions, to direct financial flows to low carbon technologies and adapt to climate change, while managing a global transition to climate […] […]
[…] very modest advance by the MSCI World Index. Investors are dealing with several obvious crosscurrents, with opposing implications for markets. Current Market Conditions Inflation expectations, the COVID -19 pandemic and geopolitics will all play an important role in determining the outcome of the current situation. Inflation. The spectre of rising inflation looms over equity […] […]
Crosscurrents With the introduction of the COVID -19 vaccines in late 2020, the equity markets quickly took stock of the changing relative investment opportunities. That is, companies and sectors left by the wayside during the period of unprecedented uncertainty were suddenly given new life. In the first six months of this year, the top–performing […] […]
Fixed -Income Outlook In a clear sign that the Federal Reserve is shifting to tighter monetary policy, the Fed Chair Jerome Powell recently decided to retire the word “transitory” and acknowledge that inflation is proving to be more persistent than expected. Stubborn inflation readings have been the result of strong demand and supply side […] […]
The Pembroke International Growth Fund outperformed the MSCI ACWI ex -US Small Cap Index during the second quarter of 2021. Relative performance was enhanced by favourable stock selection within the healthcare and industrial sectors. Two stocks that made positive contributions to performance during the quarter Within the healthcare sector, Italy–based Amplifon (“AMP IM”) was […] […]
During the third quarter of 2021, the Pembroke International Growth Fund outperformed the MSCI ACWI ex -US Small Cap Index. Overall, relative performance was enhanced by favourable stock selection within the healthcare and industrials sectors. The Fund’s financial sector exposure was increased during the third quarter through the purchase of Indian Energy Exchange. Information […] […]
