Funds

Goodwood Fund

Portfolio Manager:

Peter H. Puccetti, CFA

Fund Objective/Description:

The Goodwood Fund (the “Fund”) investment objective is to maximize long-term total return through the purchase and short sale of primarily North American exchange-listed securities based on a bottom-up, company specific approach. The portfolio is relatively concentrated with 8-10 core positions typically representing over 50% of the portfolio. The value-oriented stock picking strategy allows the manager to focus on a limited number of ideas and build strong relationships with senior management of investee companies. The Fund is offered to certain eligible investors (Accredited investors with a C$25,000 minimum, and other subscribers (other than individuals) investing a minimum of C$150,000) through an offering Memorandum.

Key Reasons to Own this Fund:

  • Long-term track record of out performance
  • Bottom-up, company specific investment approach
  • Diversification vs. major Canadian indices
  • Stock picking with active approach to ensure value realization
  • Management alignment
  • RRSP eligible
Compound Return (%) YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Goodwood Fund -2.65 -1.49 -4.97 -2.18 0.39 7.12%
S&P/TSX SmallCap TR Index 7.01 -0.85 -1.59 1.46 3.53 N/A
S&P/TSX Composite TR Index 18.08 13.25 6.84 5.57 7.32 7.62%

As at October 31, 2019

Current FundSERV Codes

Company Code GWD GWD GWD
Fund Class Class A Class B Class F
Code: 002 022 222
NAV 11/8/19 $24.0353 $10.4402 $9.3688

PERFORMANCE DISCLAIMER:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the offering memorandum or prospectus before investing.  The indicated rates of return of the Fund are the historical annual compounded total return including changes in unit value and assume that all distributions made by the Fund were reinvested in additional units of the Fund.  The rates of return do not include deduction of sales, transfer, redemption, income taxes payable, or other charges (which distributors may charge) that would have reduced returns.  The rates of return are net of all management fees, performance incentive fees and expenses.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Investment funds can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance. An investment in the Fund is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors.

Performance data from certain market indices (S&P/TSX Composite TRI, S&P/TSX SmallCap TRI) are provided in this presentation for information purposes only. These Indices are not benchmarks of the Funds but rather are displayed for comparison purposes to the broad market. A comparison of the Fund’s performance to such market indices is of limited use because the composition of the Fund’s portfolio may contain other securities not found in the market index. As a result, no market indices are directly comparable to the results of the Funds.

Goodwood Capital Fund

Goodwood Inc. Appoints Gajan Kulasingam as Lead Portfolio Manager of the Goodwood Capital Fund

Portfolio Manager:

Gajan Kulasingam, CFA, CPA, CA

Fund Objective/Description:

The Goodwood Capital Fund (the “Fund”) investment objective is to achieve capital appreciation by investing primarily in equity securities of North American companies over a broad range of industry sectors which the Portfolio Manager believes to have superior growth potential. In making investment decisions on behalf of the Fund, the Portfolio Manager utilizes a “bottom-up” approach involving intensive analysis of the individual company and associated industry conditions. The Portfolio Manager focuses on companies and industries that it believes, as a result of such analysis, can deliver superior risk adjusted returns, rather than focus on the general direction of the overall market.

Purchased directly through Goodwood or through Investment Advisors, the Prospectus sold, RSP eligible Fund provides investors with exposure to a unique and value add investment strategy that cannot be replicated by passive or quantitative vehicles. The Fund focuses on undervalued small-to-mid capitalized businesses that:

  1. have secular growth opportunities or ability to grow market share in a fragmented industry,
  2. identify small-mid cap companies trading at a material discount to larger cap peers,
  3. generate strong ROIC & excess free cash flow allowing for growth, debt repayment and dividends / buybacks,
  4. are run by exceptional management teams,

Alpha generation focuses on company specific catalyst events such as rapid deleveraging, dividend recapitalization, capital recycling cycles, business transformations, balance sheet restructuring, spin-offs, etc. The Fund aims to generates an idiosyncratic return profile and low correlation to broader equity markets or macroeconomic factors.

Key Reasons to Own this Fund:

  • Tax-effective carryforwards protects capital gains
  • Bottom-up, company specific investment approach
  • Diversification vs. major Canadian indices
  • Portfolio Manager and Management alignment
  • RRSP eligible
  • Weekly Liquidity
Compound Return (%) YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Goodwood Capital Fund 0.46 -0.43 -3.42 -0.88 1.70 3.44%
S&P/TSX SmallCap TR Index 7.01 -0.85 -1.59 1.46 3.53 N/A
S&P/TSX Composite TR Index 18.08 13.25 6.84 5.57 7.32 6.11%

As at October 31, 2019

Current FundSERV Codes:

Company Code: GWD GWD
Fund Class: Class A Class F
Code: 001 004
NAV 11/8/19 $15.9125 $10.5379

PERFORMANCE DISCLAIMER:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the offering memorandum or prospectus before investing.  The indicated rates of return of the Fund are the historical annual compounded total return including changes in unit value and assume that all distributions made by the Fund were reinvested in additional units of the Fund.  The rates of return do not include deduction of sales, transfer, redemption, income taxes payable, or other charges (which distributors may charge) that would have reduced returns.  The rates of return are net of all management fees, performance incentive fees and expenses.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Investment funds can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance. An investment in the Fund is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors.

Performance data from certain market indices (S&P/TSX Composite TRI, S&P/TSX SmallCap TRI) are provided in this presentation for information purposes only. These Indices are not benchmarks of the Funds but rather are displayed for comparison purposes to the broad market. A comparison of the Fund’s performance to such market indices is of limited use because the composition of the Fund’s portfolio may contain other securities not found in the market index. As a result, no market indices are directly comparable to the results of the Funds.

Goodwood Milford Fund LP & Goodwood Milford Fund Trust

Goodwood launches RRSP eligible Goodwood Milford Fund Trust

Goodwood Inc.’s Fixed-Income Strategy Continues Success at Canadian Hedge Fund Awards with 5th Consecutive Award

Portfolio Manager: Christopher Currie, CFA

Fund Objective/Description:

The Goodwood Milford Fund LP (the “Fund”) and RRSP eligible version of the long/short investment Fund, the Goodwood Milford Fund Trust (together, the “Funds”) seek to maximize capital appreciation and income while offering investors the benefit of portfolio diversification and capital growth. The core strategy consists of investing primarily in liquid fixed income securities issued by Canadian corporations that are selected to provide higher coupon income and capital gains due to credit upgrades or other credit enhancing events.

The portfolio asset allocation is typically 70%-to-80% short-term investment-grade corporate bonds with 20%-to-30% invested in mid-to-large cap dividend-paying equities, thereby seeking to provide inflation protection and portfolio growth. The investment team incorporates credit income and equity analysis through fundamental securities selection to determine the most attractive capital structure investment for a given public company. This investment methodology has consistently generated superior risk-adjusted results. The investment team actively reallocates the fixed-income and equity asset allocation percentage to reduce risk and augment return. As such, the Fund can be used as a core investment (balance fund) or included as a complementary investment within a portfolio’s fixed-income allocation sleeve.

The Fund has provided investors with a first quartile, net +12.6% compound annual return with low monthly return volatility since its inception in 2006. The Fund has won multiple industry awards for best Sharpe ratio beating other leading alternative credit-focused and balanced Canadian funds.

The Funds offer weekly liquidity and the strategy is available to registered and taxable accounts (RRSP, TFSA, RESP, RRIF) and provides a 4% annual cash distribution yield or total return unit.

The Key Reasons to own the Goodwood Milford Fund Strategy:

  • Offers investors a unique and proven strategy with a long-term track record of return outperformance
  • Provides investors access to the institutional fixed-income market
  • Provides investors with a return profile that cannot be manufactured by passive or quantitative vehicles
  • Adding the Fund provides existing portfolios with a higher return potential per unit of risk
  • The Fund has a low correlation to broader equity or fixed-income macro factors
  • Balanced approach provides investors with an actively managed investment throughout business cycles
Compound Return % YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception Distribution Yield Effective Duration
Goodwood Milford Fund LP* 16.34 13.87 5.41 5.25 14.28 13.23% 4.0%* 8.1
iShares Core Canadian Universe Bond ETF 7.58 10.15 2.80 3.54 4.09 N/A 2.8% 8.0
iShares Canadian Corporate Bond ETF 7.60 9.09 3.15 3.59 4.37 N/A 3.0% 6.6
S&P/TSX Composite TR Index 18.08 13.25 6.84 5.57 7.32 5.80% N/A N/A

*Performance returns above are calculated for the founding Class of Units for the Fund – Goodwood Milford Fund LP Class S Units.  Other classes or series, including the Goodwood Milford Fund Trust may charge different fees and therefore returns between classes and Funds may vary.  The returns are net of all management fees, expenses, and incentive performance fees.

As at October 31, 2019

FundSERV Codes:

RRSP Eligible Goodwood Milford Fund Trust:
Company Code: GWD GWD GWD
Fund Class: Series A Series F Series FD
Code: 600 601 603
NAV 11/8/19 $10.5586 $10.7595 $9.7212

PERFORMANCE DISCLAIMER:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the offering memorandum or prospectus before investing.  The indicated rates of return of the Fund are the historical annual compounded total return including changes in unit value and assume that all distributions made by the Fund were reinvested in additional units of the Fund.  The rates of return do not include deduction of sales, transfer, redemption, income taxes payable, or other charges (which distributors may charge) that would have reduced returns.  The rates of return are net of all management fees, performance incentive fees and expenses.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Investment funds can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance. An investment in the Fund is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors.

Performance data from certain market indices (S&P/TSX Composite TRI, iShares Core Canadian Universe Bond ETF, iShares Canadian Corporate Bond ETF) are provided in this presentation for information purposes only. These Indices are not benchmarks of the Funds but rather are displayed for comparison purposes to the broad market. A comparison of the Fund’s performance to such market indices is of limited use because the composition of the Fund’s portfolio may contain other securities not found in the market index. As a result, no market indices are directly comparable to the results of the Funds.

Goodwood SPValue Fund

Portfolio Manager:

Peter H. Puccetti, CFA

Fund Objective/Description:

The Goodwood SPValue Fund (the “Fund”) investment objective is to generate attractive long-term total returns through selective investments in companies deemed by the manager to be undervalued and that offer potential of being positively influenced by the manager taking an active role in seeking to implement changes in the areas of corporate governance, capital allocation, strategic and operational issues, management and other related activities.

Key Reasons to Own this Fund:

  • Track record of similar style investment success
  • Bottom-up, company specific investment approach
  • Event driven returns as compared to market driven
  • Concentrated and active approach to investments to ensure long-term value realization

Current FundSERV Code:

Available upon request

 

PERFORMANCE DISCLAIMER:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the offering memorandum or prospectus before investing.  The indicated rates of return of the Fund are the historical annual compounded total return including changes in unit value and assume that all distributions made by the Fund were reinvested in additional units of the Fund.  The rates of return do not include deduction of sales, transfer, redemption, income taxes payable, or other charges (which distributors may charge) that would have reduced returns.  The rates of return are net of all management fees, performance incentive fees and expenses.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Investment funds can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance. An investment in the Fund is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors.

Performance data from certain market indices (S&P/TSX Composite TRI) are provided in this presentation for information purposes only. These Indices are not benchmarks of the Funds but rather are displayed for comparison purposes to the broad market. A comparison of the Fund’s performance to such market indices is of limited use because the composition of the Fund’s portfolio may contain other securities not found in the market index. As a result, no market indices are directly comparable to the results of the Funds.