Exploring the Strategic Moves of Mawer New Canada Fund (Trades, Portfolio) in Q4 2024
Mawer New Canada Fund (Trades, Portfolio) recently submitted its report for the fourth quarter of 2024, shedding light on its strategic investment decisions during this period. The fund primarily focuses on smaller Canadian companies, aiming for long-term, above-average growth. It is designed for investors who can tolerate significant volatility, implying a higher risk profile. The fund manager employs a disciplined, research-driven, bottom-up approach, creating a diversified portfolio of companies with strong management, purchased at discounts to their intrinsic values. This strategy aims to minimize transaction costs while allowing for investor recognition or corporate growth over a long-term holding period.
Summary of New Buy
Mawer New Canada Fund (Trades, Portfolio) added a total of three stocks, including:
- The most significant addition was Kraken Robotics Inc (TSXV:PNG, Financial), with 7,425,711 shares, accounting for 1.44% of the portfolio and a total value of C$20.42 million.
- The second largest addition was WELL Health Technologies Corp (TSX:WELL, Financial), consisting of 14,643,391 shares, representing approximately 1.04% of the portfolio, with a total value of C$14.64 million.
- The third largest addition was Blackline Safety Corp (TSX:BLN, Financial), with 702,900 shares, accounting for 0.34% of the portfolio and a total value of C$4.80 million.
Key Position Increases
Mawer New Canada Fund (Trades, Portfolio) also increased stakes in a total of 13 stocks, including:
- The most notable increase was Stella-Jones Inc (TSX:SJ, Financial), with an additional 373,827 shares, bringing the total to 1,005,471 shares. This adjustment represents a significant 59.18% increase in share count, a 1.88% impact on the current portfolio, with a total value of C$71.58 million.
- The second largest increase was Parex Resources Inc (TSX:PXT, Financial), with an additional 1,585,123 shares, bringing the total to 3,415,002. This adjustment represents a significant 86.62% increase in share count, with a total value of C$49.79 million.
Summary of Sold Out
Mawer New Canada Fund (Trades, Portfolio) completely exited three holdings in the fourth quarter of 2024, as detailed below:
- Sleep Country Canada Holdings Inc (TSX:ZZZ, Financial): Mawer New Canada Fund (Trades, Portfolio) sold all 1,490,855 shares, resulting in a -2.77% impact on the portfolio.
- Cogeco Inc (TSX:CGO, Financial): Mawer New Canada Fund (Trades, Portfolio) liquidated all 199,376 shares, causing a -0.68% impact on the portfolio.
Key Position Reduces
Mawer New Canada Fund (Trades, Portfolio) also reduced positions in 24 stocks. The most significant changes include:
- Reduced TerraVest Industries Inc (TSX:TVK, Financial) by 373,018 shares, resulting in a -34.26% decrease in shares and a -1.92% impact on the portfolio. The stock traded at an average price of C$98.63 during the quarter and has returned 30.19% over the past three months and 33.95% year-to-date.
- Reduced Parkland Corp (TSX:PKI, Financial) by 443,139 shares, resulting in a -45.38% reduction in shares and a -1.21% impact on the portfolio. The stock traded at an average price of C$35.4 during the quarter and has returned 12.95% over the past three months and 14.34% year-to-date.
Portfolio Overview
At the end of the fourth quarter of 2024, Mawer New Canada Fund (Trades, Portfolio)'s portfolio included 40 stocks. The top holdings included 5.66% in TerraVest Industries Inc (TSX:TVK), 5.5% in Element Fleet Management Corp (TSX:EFN, Financial), 5.06% in Stella-Jones Inc (TSX:SJ, Financial), 4.69% in Mainstreet Equity Corp (TSX:MEQ, Financial), and 4.61% in Trisura Group Ltd (TSX:TSU, Financial).
The holdings are mainly concentrated in nine of the 11 industries: Energy, Industrials, Financial Services, Technology, Consumer Cyclical, Real Estate, Basic Materials, Consumer Defensive, and Healthcare.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
