Pender Value manager targets high-growth small-cap stocks

David Barr applies a long-term value approach to find companies that will grow over 20 to 30 years.

Diana Cawfield 30 August, 2018 | 5:00PM

David Barr, president and portfolio manager at PenderFund Capital Management, uses a long-term value approach to drive the returns in the Pender Value mandate. However, he and his team focus most of their attention on growth companies.

Barr, who is based in Vancouver, looks at two broad buckets of stocks: what he calls the "close-the-discount" companies and the compounders. Small-cap growth companies characteristically make up about 75% of the portfolio.

According to Barr, when people talk about value investing, close-the-discount is what they traditionally think of. Those are the "bottom-of-the barrel," out-of-favour companies that are trading really cheap. According to Barr, you figure out what the value of it is and you buy it at a big discount to that.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Transat A.T. Inc Class A3.88 CAD-2.02
TripAdvisor Inc19.35 USD-2.64

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

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