The fund focuses on high-growth small- and mid-cap companies in emerging and niche sectors
PenderFund Capital Management Ltd. has announced the launch of the Pender US Small/Mid Cap Equity Fund, aimed at providing Canadian investors with access to opportunities in the US small- and mid-cap equity market.
The fund is managed by Aman Budhwar, CFA, who employs a disciplined and repeatable process to identify high-quality businesses in growth industries.
The fund focuses on companies with a market capitalization between US$500m and US$25bn, targeting those with sustainable competitive advantages and the ability to reinvest capital at high rates of return.
According to the announcement, these companies often operate in emerging or niche sectors, benefiting from adaptability and innovation to capitalize on new trends.
Aman Budhwar explained, “The historical premium at which small- and mid-cap stocks traded relative to large caps has turned into a discount following the strong run-up in large caps over recent years.”
He added that small- and mid-cap companies often operate in emerging or niche sectors with high growth potential. These businesses tend to leverage adaptability and innovation to capitalize on new trends and disrupt established industries.
Budhwar emphasized their focus on identifying overlooked opportunities to provide value to investors.
The fund builds on Pender’s existing expertise in the small- and mid-cap space and joins the Pender Small Cap Opportunities Fund and the Pender Value Fund in broadening the company’s equity fund offerings for Canadian investors
David Barr, Pender’s CEO and portfolio manager, commented, “This Fund is a natural fit with our proven small-cap equity investment process and we believe, with the bounty of high-quality small cap companies in the US, we can generate attractive risk-adjusted returns in the US small- and mid-cap space.”
According to the release, the new fund aims to leverage Pender’s track record in small-cap equity investment to identify and capture opportunities in this sector of the US market.
