PenderFund Capital Management’s Global Small Mid Cap Equity Fund returned 1.4% in August 2026, narrowly beating the MSCI World SMID Cap Gross Total Return USD Index’s 1.3%. It was a photo finish, but a win still counts. The portfolio allocated 42.7% to US equities, 32.4% to Canadian equities, and 13.5% to international equities.
Meanwhile, investors had plenty to keep their blood pressure busy, including inflation readings, rising oil prices, and another round of central bank commentary. Hawkish remarks from Fed Chair Kevin Warsh heightened expectations for a September rate hike, yet US stocks rallied as strong earnings from major technology companies gave the AI trade fresh fuel. Apparently, enthusiasm for artificial intelligence can still compete with anxiety over actual interest rates.
Against that backdrop, PenderFund maintained its long-term approach, concentrating on factors within its control as market volatility and the approaching US midterm elections supplied the distractions. Readers can also explore the fund’s top five holdings for a closer look at its leading positions in 2026.
A copy of Pender Global Small Mid Cap Equity Fund’s August 2026 investor letter can be downloaded here.
In its third quarter 2026 investor letter, PenderFund mentioned StandardAero Inc. (NYSE:SARO). SARO is an aerospace aftermarket services company specializing in aircraft engine maintenance, repair, and overhaul, along with engine component repair. It serves commercial airlines, business aviation operators, and military customers, helping keep aircraft engines operational throughout their service lives. Its business connects engine manufacturers with aircraft operators through ongoing maintenance and technical support. On November 6, 2026, the stock closed at $27.63, an increase of 9.21%, or $2.33, from the previous session. Its market capitalization was approximately $8.91 billion.
Here’s what PenderFund has to say about StandardAero Inc. (NYSE:SARO):
“StandardAero Inc. (SARO) – Was another detractor in the month, despite reporting a solid quarter that came in ahead of Street expectations and management raising full-year guidance. SARO announced a $180MM license expansion with a key OEM partner covering multiple turbofan and turboprop platforms; the company expects the investment to contribute approximately $10MM of incremental adj. EBITDA in 2027, rising to $20MM in 2028 and roughly $25MM annually thereafter. Despite this, the stock sold off in the month, with investors seemingly more focused on the pace of top-line growth and mixed segment performance than the margin and guidance beat. It’s also worth noting that, following month-end, CEO Russell Ford announced his retirement after 13 years, with Lead Independent Director Paul McElhinney set to succeed him effective October 1.”
StandardAero’s November 5 earnings release showed third-quarter revenue increasing 4% year over year to $1.557 billion, while net income rose 36.2% to $92.8 million. Adjusted earnings per share increased 30% to $0.39, supported by stronger profitability in its Engine Services business. The company raised its full-year outlook to revenue of $6.525 billion–$6.645 billion and adjusted earnings per share of $1.57–$1.62. It also expanded its total share repurchase authorization to $1 billion and announced plans for a $350 million accelerated share repurchase, pairing its improved earnings outlook with a larger capital-return program.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
