Pembroke is a bottom-up active manager. That means we look for new investment ideas one idea at a time, company by company. Having said that, there is no denying the mega trends around us and the importance of understanding them. During 2020, we were reminded of the intense interconnectedness of the world, the power of positive collective action and the consequences of its failure. We were reminded of the importance of listening to experts and heeding their counsel. And there is no shortage of experts pointing us in a common direction and urging our collective action.


Beyond the glaring reality of the pandemic which still rages around the world are the other facts of 2020. The pandemic was not the only fire that raged, California recorded five of the six largest wildfires in its history burning approximately 2.5 million acres of land.[1] The World Meteorological Organization reported before the end of the year that, including 2020, the past six years were probably the hottest six years on record.[2] Hurricanes and other storms also had a devastating effect during the year exacerbating property losses, business closures, and high unemployment and economic dislocation caused by the pandemic.


Reviewing the events of the year, the UN’s seventeen Sustainable Development Goals (SDGs) including: no poverty, zero hunger, good health and well-being, affordable and clean energy, sustainable cities and communities, and climate action, are perhaps more widely recognizable as the world’s most urgent challenges.[3] These challenges, if they are to be overcome, will be overcome with human innovation and collaboration. Whole industries including the finance industry are already mobilizing to coordinate standards and systems, to respond to changing regulations, and to build the foundations of a more inclusive and less wasteful global economy based on net zero greenhouse gas emissions and more responsible stewardship of natural resources.  The opportunity to invest in meaningful positive change has perhaps never been better.


In this issue of Pembroke Perspectives, our On The Road article highlights our own commitment to good stewardship and active management with a review of our investment in Collector’s Universe (“CLCT US”). In our Investment Commentary & Outlook, we use 2020 as a case study for the importance of a long-term investment view and the futility of market timing. In our US, Canadian, International, and Fixed Income and Balanced Strategy summaries, we review the themes and investments that characterized 2020. As we enter 2021, we are grateful for our good health, our colleagues and clients, and the opportunity to focus on the themes and opportunities that unify us.  Finally, we remind readers that 2020 was an extraordinary year. The past returns generated by any strategy are never a guarantee or indication of future returns.  


[1] Source: Cal Fire, Top 20 Largest California Wildfires
[2] Source: World Meteorological Association, State of the Global Climate, 2020, Provisional Report.
[3] See United Nations, Department of Economic and Social Affairs, Sustainable Development, for all seventeen Sustainable Development Goals (the SDGs).



December 31, 2020 Issue



TickerCompanyPrice Change (CAD)Revenue Growth, Current Fiscal YearEPS or EBITDA Growth, Current Fiscal YearRevenue growth, next fiscal yearEPS or EBITDA growth, next fiscal year
TCS CNTECSYS77%16%67%15%25%
DOO CNBRP Inc20%-2%17%14%13%
RPI-U CNRichards Packaging Income Fund-9%40%64%-4%-21%
CIGI CNColliers International Group28%-15%-14%22%29%
KXS CNKinaxis Inc.-8%12%-9%15%11%




TickerCompanyPrice Change (CAD)Revenue Growth, Current Fiscal YearEPS or EBITDA Growth, Current Fiscal YearRevenue growth, next fiscal yearEPS or EBITDA growth, next fiscal year
SITESiteOne Landscape Supply30%12%17%8%12%
GMEDGlobus Medical32%0%-13%16%40%
CRLCharles River Laboratories10%10%9%10%12%
AINAlbany International Corp49%-16%-8%2%-9%


Virtual Lunch Series

Managing Portfolios During Uncertain Times

As we continue to share our insights while maintaining appropriate social distance, we invite you to join us for a virtual lunches/brunches:

Thursday, January 21st at 11:00AM (Eastern Daylight Time), focus on Perspectives on Canadian Equity Markets with Jeff Tory

An invitation with details was sent out by email, if you did not receive a copy and wish to join our virtual lunch, please contact your Pembroke Representative for details.

If you missed any of our Pembroke Virtual Lunch Series, you can replay our virtual lunches here.

Business Update

Growing Together – Since 1968

As we enter the 21st year of the 21st century we look back on the year that was with mixed emotions. The Pandemic has been a human tragedy unlike anything that we have personally experienced and while we can celebrate the arrival of several vaccines, the impact of the virus seems far from over. The markets reacted very negatively during the early stages of the Pandemic and the outlook in April appeared bleak. The stock market rally since then has been fueled by low rates, massive stimulus spending and stronger than expected fundamentals, and growth stocks performed well on an absolute and relative basis. While we do not feel it is appropriate to celebrate while so many suffer, we note that 2020 was a surprisingly good year for our clients from an investment perspective. We have always believed that timing the markets is next to impossible, and the experience of this past year certainly supports that belief.

Throughout the Pandemic we have felt that it is important to safely make the most of the situation. Rather than complaining about what cannot be done, we have focused on what can be done, and as a firm we have been able to operate effectively despite the sudden shift to working from home. We are pleased that we have been able to generate strong investment returns for our clients and we are also pleased that we have been able to continue to move forward with important initiatives within the firm. Whether it is refinements to our research process, or an expansion of the wealth management services that we offer, we have continued to move forward despite the Pandemic.

During the past year we have added five people to the firm who collectively bring a wealth of experience that will allow us to better serve our clients by providing them with more advice. Stephanie Pantaleo, who is a chartered accountant with expertise in tax, joined the firm in March as Director of Family Office Services; Salomon Gamache, who has a Graduate Diploma in taxation, joined in September as Director of Financial Planning; Kathy Boubaris joined the Montreal office as an Executive Assistant; Drew Sutherland, who brings experience as an investment advisor, joined our Toronto office in November as a Vice President, Account Manager; and Andrew Bolton, who has significant industry experience and a CFA designation, joined the Montreal office as Vice President Client Services. During a year when so many projects were put on hold, Pembroke pushed forward, and we are very pleased to have added these qualified people to our team and look forward to introducing them to you when the opportunity permits.

For more than 50 years, Pembroke has been investing on behalf of our clients and providing them with advice so that they can attain their financial objectives. While we are pleased with the performance of the past year, we know that long-term results combined with solid advice are what matters most and it is for that reason that we continue to focus on our people and our process so that we can grow together in the years to come.

We wish you and your families health and happiness in 2021 and beyond.