Portfolio Performance
The Canada Portfolio has delivered a solid +8.6% return since its inception, outperforming the broader Canadian market. This week, the portfolio was buoyed by strong gains in technology names, particularly Shopify (SHOP) (+29.9%) and Nuvei (NVDA) (+13.0%). These companies continue to benefit from robust e-commerce and payments demand, as well as their global expansion strategies.
On the flip side, MDA Space (MDA) (-12.8%) and Hammond Power Solutions (HPS.A) (-12.0%) have weighed on performance. MDA has faced margin pressure and project delays, while Hammond Power is sensitive to industrial capex cycles and interest rates. Both remain within their minimum holding periods, and we believe their long-term fundamentals remain intact.
Positioning and Diversification
The portfolio is well-diversified across sectors, with a tilt toward technology and innovation. Key holdings include:
- Shopify (SHOP) – E-commerce platform, +29.9%
- Nuvei (NVDA) – Payments technology, +13.0%
- Kinaxis (KXSCF) – Supply chain software, +14.6%
- Descartes (DSGX) – Logistics software, +7.9%
- Stantec (STN) – Engineering services, +8.5%
- Lightspeed (LSPD) – Retail tech, +11.6%
- Celestica (CLS) – Electronics manufacturing, -5.1%
- Alimentation Couche-Tard (ATD) – Convenience retail, -0.3%
- MDA Space (MDA) – Space technology, -12.8%
- Hammond Power (HPS.A) – Power solutions, -12.0%
No single position exceeds 12% of the portfolio, reducing concentration risk. The portfolio remains aligned with the Canadian market’s strengths in technology, infrastructure, and consumer staples.
Risk Considerations
Key risks include:
- Interest rate sensitivity: Hammond Power and Celestica are vulnerable to higher-for-longer rates.
- Cyclical exposure: MDA and Hammond Power are tied to capital expenditure cycles.
- Tech volatility: High-growth names like Shopify and Nuvei can experience sharp pullbacks.
We are monitoring these factors but see no immediate need to close any positions.
What to Watch
In the coming weeks, we will watch:
- Q2 earnings reports from Shopify, Nuvei, and Kinaxis.
- Bank of Canada interest rate decisions and their impact on rate-sensitive names.
- Commodity prices and their effect on the Canadian dollar and export-oriented companies.
- Any geopolitical developments affecting global trade.
Conclusion
The Canada Portfolio remains well-positioned to benefit from Canadian innovation and global demand. We are maintaining all current positions and will continue to monitor for any fundamental deterioration.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.