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Philosophy:

“It is not the strongest that survive, nor the most intelligent but the ones most responsive to change.”
- Charles Darwin

Pendragon Investment Strategy: For Accredited Investors Only

The Pendragon Fund is a global macro hedge fund focused on finding undervalued assets. The Fund begins with a top down view of the global economy, followed by in-depth fundamental research at the industry and company specific level. Pendragon looks for opportunities around the world where other investors start to feel uncomfortable. Investing means taking advantage of change, changing economies, changing companies and changing markets. Change is good, but the dynamic nature of the markets can result in short-term investors acting on emotions, which offers Pendragon opportunities as fundamentals are eventually restored over the medium and long-term.

It’s these emotions, along with the global economic cycles, that we thrive on.

Having the right world view is essential to making the right decision.

We are realists, not bulls or bears.



Investment Objective

The investment objective of the Fund is to provide superior longer-term capital appreciation with less volatility and lower correlation to major equity markets than traditional long only global investment funds.



Interested Investors

If you are interested in the Pendragon Fund please contact your financial advisor. Accredited Investors Only.

Pendragon FundServ Codes:

Builders Class Series A Units: CWF1400
Builders Class Series F Units: CWF1401

For more information on the Pendragon Fund call us at 416-593-1798 or 1-800-256-2441 or send us a message. Back to top

Management Team:

James E. Thorne, Ph.D.

Chief Capital Market Strategist & Senior Portfolio Manager
Dr. James Thorne has a PhD in Economics and is the former Chief Investment Officer of Equities at M&T Bank and its wholly owned subsidiary, Wilmington Trust, in the U.S., where he was responsible for the management of more than $23 billion in assets under management.

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Commentary:

April:

The liberal international order, that has characterized and formed the global economy since 1945, has recently come under fire due to the election of Donald Trump and the Brexit vote. Populism was seen as a major threat to globalization being replaced by economic nationalism. It is true that the global economy has reached a tipping point, the point at which it needs to evolve. The policies of zero interest rates and austerity ushered in 8 years of chronic slow economic growth, which left the middle class in the western world with little hope. The American dream has died. Yanis Varoufakis’ book “Adults in the Room”, is an inside story of high politics told by an outsider. Mr. Varoufakis was the Greek Finance Minister, who in 2015, was involved in the negotiations with the International Monetary Fund (“IMF”), European Central Bank (“ECB”) and the European Union (“EU”). He suggests that the previous bailout for Greece was really just an implicit bailout of the financial institutions that held Greek debt.

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Why Global Macro?

Malcom Gladwell (Gladwell, 2000) introduced the concept the “Tipping Point”, the point at which a series of small changes or incidents become important enough to cause a larger significant evolutionary change. For many the dual crises of the popping of the Technology Bubble in 2000 and the Global Financial Crisis in 2008, created a tipping point causing modern portfolio management to experience a significant regime change and evolve. Portfolio Management1 theories were developed in the mid to late 1960’s and taught at universities. They were based on the simple assumption that markets were efficient and investors were rational, non-emotional, decision makers. In that controlled environment, optimal portfolio performance and diversification was largely achieved by using the traditional asset allocation mix of 60% stocks and 40% bonds.

The Fund is available on a private placement basis only to residents of Canada who are qualified “accredited investors” as defined under National Instrument 45-106 Prospectus Exemptions and who are resident in Canada. This material is for information purposes only and does not constitute an offering memorandum or an offer or solicitation in any jurisdiction in which an offer or solicitation is not authorized. Please read the Fund’s Offering Memorandum before investing. Prospective investors should rely solely on the Offering Memorandum which outlines the risk factors in making a decision to invest. The indicated rates of return are historical annual compounded total returns net of fees and expenses paid by the Fund, including changes in unit value and reinvestment of all distributions, but do not take into account sales charges or income taxes payable by any security holder that would have reduced returns. Investments in the Fund are not guaranteed, their values change frequently and past performance may not be repeated. Investment losses do and may occur, and investors could lose some or all of their investment in the Fund. The information herein does not consider the specific investment objectives, financial situation or particular needs of any prospective investor. No assurance can be given that the Fund’s investment objective will be achieved or that investors will meet their investment goals. Prospective investors should consult their appropriate advisors prior to investing. Information presented herein is obtained from sources we believe reliable, but we assume no responsibility for information provided to us from third parties. Caldwell Securities Ltd. and Caldwell Investment Management Ltd. are wholly-owned subsidiaries of Caldwell Financial Ltd. Officers, directors and employees of Caldwell Financial Ltd. and its subsidiaries may have positions in the securities mentioned herein and may make purchases and/or sales from time to time. This information may not be reproduced for any purpose or provided to others in whole or in part without the prior written permission of Caldwell Investment Management Ltd. All information and opinions indicated herein are subject to change without notice. Inception date: September 15, 2016.

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