PenderFund Capital Management's Greg Taylor is accumulating liquidity to shield his portfolios from upcoming market instability. The Vancouver-based CIO is moving capital into uranium, gold, and satellite tech to navigate periods of high volatility.
A 20 per cent cash buffer against September volatility
Taylor is proactively increasing liquidity within his portfolios, with some funds now maintaining cash positions as high as 20 per cent.. according to the report, this tactical move aims to provide a buffer against heightened volatility expected as the calendar turns to September. This caution stems from several looming risks, including escalating geopolitical tensions with Iran and the potential for unpredictable U.S. trade policies.
The move comes at a time when many market sectors are considered "priced for perfection." Taylor suggests that any deviation from an ideal economic scenario could trigger a sell-off, particularly as investors weigh rising global debt and the possibility of further interest rate hikes. This defensive stance is a hallmark of his momentum management style, which seeks to build reserves during uncertainty to buy quality assets on the dip. The Pender Alternative Select Equity Fund has leveraged this disciplined approach to achieve a 57 per cent return over the last year.
The NexGen Energy bet on AI-driven power needs
A central pillar of Taylor's current strategy is a significant allocation to the uranium sector, specifically through NexGen Energy.. He posits that the global rise of artificial intelligence will create a massive demand for sustainable energy, necessitating a multi-year expansion of nuclear power capacity.
Because global uranium supply is constrained and new projects face long lead times, Taylor expects a significant supply-demand imbalance. He identifies the Arrow project in Saskatchewan as a primary beneficiary, noting that with permits secured and construction underway, it represents one of the most significant mining developments in the commodity space.
From Yukon gold to Ottawa's Telesat infrastructure
In the gold market, Taylor is rotating capital away from senior producers and toward development-stage companies to minimize political and geographic risk. A key component of this is Banyan Gold, which operates the AurMac gold project in the Yukon. Taylor is waiting on the release of a preliminary economic assessment for the project, which he believes will validate its value and potentially attract larger mining firms for consolidation.
Beyond commodities, Taylor has been adding to his position in Telesat, the satellite operator based in Ottawa. while Telesat has faced short-term pressure from debt restructuring and funding gaps, Taylor views the company through the lens of sovereign defense. he believes the growing global emphasis on secure, made-in-Canada infrastructure makes the satellite operator a vital long-term asset.
Exiting Canadian banks due to high valuations
The Pender Alternative Select Equity Fund has notbly eliminated all exposure to the Canadian banking sector. As reported by the source, Taylor argues that Canadian banks have reached valuation levels that are unprecedented compared to their international peers. While he does not believe the banks represent a short opportunity, he expects them to perform merely in line with the market until earnings growth can catch up to their current high prices.
The Banyan Gold assessment and Telesat's debt unknowns
Despite the fund's strong performance—including a 31 per cent return year-to-date—several variables remain unverified.... The market's reaction to the upcoming preliminary economic assessment for Banyan Gold's AurMac project remains a critical unknown. Furthermore, it remains to be seen if Telesat can successfully navigate its current funding gaps and debt restructuring to realize its long-term thesis in the sovereign defense sector.
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