LionGuard Canadian Small Cap Fund

LionGuard Canadian Small Cap Fund has the objective to achieve long-term growth of capital through disciplined investing in Canadian small-capitalization equities. The Fund is managed using a fundamental bottom-up stock selection approach with emphasis on high-quality firms with proven business models and solid management teams in place.

Fund Information

  • Number of Holdings 40
  • Average Market Cap $2.6B
  • 5-Year Value Added 2.74%
  • Since Inception Value Added 2.77%
  • Fund Description
  • Investment Process
  • Risk Management
  • Fund Reports

The Fund invests in the best-in-class public equities available on the Canadian market. The Fund is built using bottom-up individual securities selection. The Fund’s benchmark is the S&P/TSX Small Capitalization Index.

Fund Characteristics


    • Open

    • Institutional Allocators & Family Offices

    • Daily Liquidity

    • None

    • Long Equities Portfolio

    • Canada

    • Small Cap

    • S&P/TSX Small Cap Index

    • Canadian Dollars

Our investment process includes the following steps:

1. Fundamental Research & Analysis

We conduct detailed fundamental research and analysis on companies before they are included in the portfolio.

2. Calculation of Intrinsic Value

With the help of our in-house financial models, we compute the intrinsic value of the business.

3. Risk Management Analysis

We identify and quantify risks that have an impact on the intrinsic value of the business.

4. Portfolio Construction Considerations

We build our portfolio using a bottom-up stock selection approach by adding one company at a time.

5. Monitoring, Re-balancing, Exiting

We monitor all positions in the portfolio and incorporate all relevant new information in our analysis and decision making.

Our risk management process includes the following steps:

1. Focus on Capital Preservation

We invest in high-quality companies that fall within our circle of competence.

2. Minimize Risk of Changes in Fundamental Characteristics

We minimize this risk by conducting detailed fundamental research and analysis.

3. Manage Single Risk Factor Exposures

We monitor and manage single risk factor exposures within the portfolio.

4. Manage Single Name Exposures

We actively monitor the size of each position in the portfolio in relation to the level of confidence in our investment thesis.

5. Monitoring & Analysis

We monitor other relevant risks and conduct risk management meetings on a regular basis.

Fund Report (Monthly)

Fund Reports (Quarterly)

Fund Reports (Annual)

Legal Disclaimer

Accredited Investor Status Questionnaire

Units of the Funds are offered to qualified investors resident in the provinces and territories of Canada (the “Offering Jurisdictions”) pursuant to applicable exemptions from the prospectus requirements of the securities laws in the Offering Jurisdictions. Qualified investors must rely on one of the following exemptions available to purchase units of the Funds:

1. ACCREDITED INVESTOR EXEMPTION:
The Funds will accept subscriptions from investors who qualify as an “accredited investor” under the meaning of National Instrument 45-106 Prospectus  Exemption ("NI 45-106") or, for Ontario residents, Section 73.3 of the Securities Act (Ontario). Some of the most common ways to qualify as an accredited investor are:

(d) a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer;

(e) an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);

(j) an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

(k) an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

(Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialed.)

(l) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;

(m) a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;

(n) an investment fund that distributes or has distributed its securities only to:

(i) a person that is or was an accredited investor at the time of the distribution,

(ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment] or 2.19 [Additional investment in investment funds] of NI 45- 106, or

(iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106;

(o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

(p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;

(q) a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction;

(r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

(s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;

(t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;

(u) an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or;

(v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor.