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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

Commentary:

May:

In the 1960’s the Baby Boomer Generation started to become of age. For many, the free music concert in the summer of 1969, Woodstock, defined the generation. The “Pleasure Principle” began elevating over puritan ethics of work and community. Doing your own thing was more important than being a good citizen. A point of view at that time as driven by the work of Saul Alinsky in “Rules for Radicals” and Cloward & Piven in their article “The Weight of the Poor, a Strategy to End Poverty”. They put forth a political strategy hat many in today’s alt-right media use as the basis of their conspiracy theory that the world is out to get President Trump. This strategy is simple, create a crisis from within the government that is supported by the media to change society. Friedrich Nietzsche stated, “there are no facts, only interpretations”. As investors, our job is to interpret the facts, and build portfolios. Easy to say, hard to do, in the new world of “fake news”.

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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.

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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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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