Strategy Overview

Investment Approach

We are fundamental bottom-up stock pickers who invest for the long term. We believe that the best strategy for investment success is investing in high-quality, well-managed small-cap companies that are trading below their intrinsic value.

We look for companies with:

  • Outstanding management teams
  • Sustainable competitive advantage(s)
  • Strong operating cash flows
  • High returns on capital
  • Stock trading below intrinsic value
  • Consistent long-term growth prospects
    Our biggest advantage is the depth of knowledge we develop on our investments.
About the Portfolio
Investment Style Core
Process Fundamental Bottom-up
Turnover Low
Minimum Initial Investment $250K
Reasons to Invest
  • Experienced investment team with unique and focused expertise in the management of small-cap strategies
  • Higher return and lower volatility versus the benchmark
  • Rigorous investment process with a hands-on approach ensuring strong practices
  • Deep knowledge of companies and superior access to their management
  • ESG factors reviewed and analyzed as part of a robust fundamental research process
  • 100% owned by its employees, aligning our interests with those of our clients
Documents
Strategy Profile
Canada Small Cap 2024 Q1

Strategy Features

Sector Allocation (%)
Top Five Stocks (%)
Security Sector Weight
MDA Ltd. Industrials 4.9
Mattr Infratech Energy 4.2
AG Growth International Industrials 3.9
Richards Packaging Income Fund Materials 3.8
Tecsys Inc. Information Technology 3.5
Key Financial Characteristics
Market Cap (weighted average) $2,581 M
Expected EPS Growth Rate (5 yrs fwd, weighted avrg) 21.4%
FY1 P/E (median) 17.5 x
ROE (weighted average) 13.9%
ND/EBITDA 1.1 x
Downside capture (10 yrs) 48
Upside capture (10 yr) 68

Strategy Performance in Various Environments

The strategy outperformed its benchmark in a wide variety of market environments over the years. This was achieved through consistent positioning into attractively valued, high-quality companies, and a balance between high-quality defensive stocks and high-quality growth cyclical stocks at an attractive valuation.

The benchmarks used are the BMO Small Cap Blended Weighted Index from 06/30/1992 to 12/31/1999 and the S&P/TSX Small Cap Equity Blended Index thereafter.

Performance (%) in Canadian dollars

Per period and calendar year performance

Period Van Berkom S&P/TSX SC Value Added
2023 23.67 4.79 18.88
2022 -15.89 -9.29 -6.60
2021 25.17 20.27 4.90
2020 11.06 12.87 -1.81
2019 12.59 15.84 -3.25
2018 -17.28 -18.17 0.89
2017 12.20 2.75 9.45
2016 12.80 38.48 -25.68
2015 9.26 -13.31 22.57
2014 9.72 -2.34 12.06
2013 42.73 7.60 35.13
2012 23.43 -2.23 25.66
2011 1.54 -16.43 17.97
2010 24.25 35.10 -10.85
2009 47.59 62.38 -14.79
2008 -33.81 -45.49 11.68
2007 11.21 0.90 10.31
2006 1.31 11.61 -10.30
2005 16.70 10.60 6.10
2004 16.31 6.50 9.81
2003 28.80 34.35 -5.55
2002 1.39 -3.54 4.93
2001 6.29 4.22 2.07
2000 15.67 7.46 8.21
1999 6.66 20.29 -13.63
1998 -8.00 -17.90 9.90
1997 43.01 6.97 36.04
1996 38.54 28.66 9.88
1995 17.03 13.88 3.15
1994 -12.36 -8.60 -3.76
1993 46.85 48.25 -1.40
1992 18.30 3.44 14.86

Past performance is not a guarantee or indicator of future results. Inherent in any investment is the risk of loss. Composite returns are calculated using the time-weighted method and presented gross of management and trustee fees and withholding taxes.

In Canadian dollars, as at March 31, 2024 (%)

Annualized performance

Period Van Berkom S&P/TSX SC Value Added
YTD 9.81 7.92 1.89
1 Year 27.96 8.22 19.74
3 Years 8.09 3.99 4.10
5 Years 10.30 7.82 2.48
7 Years 7.06 4.23 2.83
10 Years 7.75 3.95 3.80
15 Years 14.79 8.03 6.76
20 Years 10.21 3.84 6.37
25 Years 10.49 5.47 5.02
30 Years 11.28 5.13 6.15
SI 12.44 6.31 6.13

Past performance is not a guarantee or indicator of future results. Inherent in any investment is the risk of loss.
Composite returns are calculated using the time-weighted method and presented gross of management and trustee fees and withholding taxes.
SI = Since inception


Portfolio Management Team

Team Member Role In the Industry Since
Gabriel Bouchard-Phillips* Senior Portfolio Manager 2005
Maxime Robillard* Senior Analyst 2008
François Watier* Senior Analyst 2012
Balal Rasool Analyst 2022

* These team members are also Van Berkom and Associates Inc. shareholders.

Learn more about our investment approach

Approach

Disclaimer

Van Berkom and Associates Inc. (“Van Berkom”) is registered in Canada with the Autorité des marchés financiers (“AMF”), the Ontario, Alberta, British Columbia and Manitoba Securities Commissions as Portfolio Manager and as Investment Fund manager. In the United States, Van Berkom is defined as a Securities Exchange Commission (“SEC”) registered independent investment advisor. The information provided herein is for informational purposes only and is not intended to provide professional advice and should not be relied upon in that regard. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information. Past performance is no guarantee of future results. Performance is presented gross of all management fees. Van Berkom claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Important information about Van Berkom, including a GIPS® Composite Report and additional information regarding policies for calculating and reporting returns, may be obtained from Van Berkom by communicating with Andy Kong, Senior Director, Institutional Markets at akong@vanberkomglobal.com.

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