Insightful Moves in Q2 2024 Highlight Strategic Adjustments
Mawer New Canada Fund (Trades, Portfolio), known for its strategic investments in smaller Canadian companies, has recently disclosed its portfolio updates for the second quarter of 2024. The fund is managed with a focus on long-term growth, targeting wealth-creating companies with strong management teams, and is known for its disciplined, research-driven investment approach. This quarter, significant adjustments were made, including new stock additions, substantial increases in existing positions, complete exits, and reductions in several holdings.
New Additions to the Portfolio
Mawer New Canada Fund (Trades, Portfolio) expanded its portfolio by adding new stocks during this quarter:
- The most significant addition was Vitalhub Corp (TSX:VHI, Financial), acquiring 2,303,036 shares. This investment now accounts for 1.22% of the portfolio, with a total value of C$17.09 million.
Significant Increases in Key Holdings
The fund has notably increased its stakes in several companies:
- Pet Valu Holdings Ltd (TSX:PET, Financial) saw an addition of 806,030 shares, bringing the total to 888,621 shares. This adjustment represents a substantial 975.93% increase in share count and has a 1.51% impact on the current portfolio, valued at C$23.38 million.
- Another notable increase was in Wajax Corp (TSX:WJX, Financial), with an additional 559,071 shares, bringing the total to 1,687,832. This adjustment represents a 49.53% increase in share count, with a total value of C$43.23 million.
Complete Exits from Certain Holdings
The fund also decided to exit completely from certain stocks during this quarter:
- MTY Food Group Inc (TSX:MTY, Financial) was completely sold off, with all 334,767 shares liquidated, resulting in a -1.38% impact on the portfolio.
- All 162,138 shares of Savaria Corp (TSX:SIS, Financial) were also sold, causing a -0.18% impact on the portfolio.
Reductions in Portfolio Positions
Reductions were made in several key holdings:
- Enghouse Systems Ltd (TSX:ENGH, Financial) saw a reduction of 416,431 shares, resulting in a -70.85% decrease in shares and a -1.06% impact on the portfolio. The stock traded at an average price of C$32.33 during the quarter.
- Parkland Corp (TSX:PKI, Financial) was reduced by 238,588 shares, marking a -19.63% reduction in shares and a -0.74% impact on the portfolio. The stock traded at an average price of C$42.49 during the quarter.
Portfolio Overview and Sector Allocation
As of the second quarter of 2024, Mawer New Canada Fund (Trades, Portfolio)'s portfolio included 40 stocks. The top holdings were 5.6% in TerraVest Industries Inc (TSX:TVK, Financial), 5.28% in Trisura Group Ltd (TSX:TSU, Financial), and 5.08% in Element Fleet Management Corp (TSX:EFN, Financial). The holdings are mainly concentrated across 10 industries, including Energy, Industrials, and Financial Services.
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