You Won't Believe Why This Money Manager Is Investing in Discovery Silver and Premium Brands!

In the dynamic world of investment, making informed decisions can set successful portfolio managers apart from the rest. Kelsey Dunwoodie, a prominent money manager, is currently making waves in the financial scene with her strategic selections that focus on Canadian small- and mid-cap companies. Her insight into the market showcases the importance of understanding specific sectors and the potential they hold. Let’s explore her investment philosophy and the companies she believes are worth considering.

Investment Philosophy: A Unique Approach to Success

Kelsey Dunwoodie, who serves as the portfolio manager and chief operating officer at Deans Knight Capital Management Ltd., has developed a distinctive approach that emphasizes the value of personal expertise and market understanding. Managing approximately $700 million in assets, Dunwoodie has achieved impressive double-digit returns in recent years without relying on trending sectors like artificial intelligence.

She attributes her success to a strategy that focuses on her "circle of confidence," which allows her to concentrate on sectors where she possesses the most knowledge and insight. This approach exemplifies the belief that successful investing does not require owning the same assets as others.

Her firm primarily invests in Canadian small- and mid-cap companies, with particular focus on sectors such as:

• Natural resources
• Industrials
• Consumer staples
• Consumer discretionary

Why Canada? The Potential of Homegrown Opportunities

Dunwoodie expresses a strong bullish sentiment towards Canada, citing its abundant natural resources and the potential for growth by accelerating resource projects. Her confidence is rooted in Canada’s economic landscape, which she believes is ripe for unlocking further value through strategic investments in local enterprises.

“We are optimistic about our portfolios, which, while containing Canadian-listed stocks, represent international businesses,” she explains. This perspective reinforces her commitment to supporting Canadian companies while acknowledging their broader global implications.

Performance Highlights of Deans Knight Funds

Under Dunwoodie's management, Deans Knight’s funds have performed remarkably well. For instance, the Deans Knight Equity Growth Fund, Series F, saw an impressive return of 54.5% in 2025, with annualized returns of 25.7% and 23.6% over three- and five-year periods, respectively.

Some of the top holdings in this fund as of December 31 included:

• Kinross Gold Corp.
• Aritzia Inc.
• Premium Brands Holdings Corp.
• West Fraser Timber Co. Ltd.

Similarly, the Deans Knight JDS Resource Fund, Series F, reported a staggering return of 77.3% in 2025, showcasing three- and five-year annualized returns of 28.4% and 27.3%, respectively. Key holdings include:

• Lundin Gold Inc.
• Heliostar Metals Ltd.
• Lundin Mining Corp.
• Taseko Mines Ltd.
• Equinox Gold Corp.

Investment Choices: Spotlight on Key Stocks

Dunwoodie is keen on investing in companies with solid management teams, often led by founders who have a significant equity stake. Her focus is on long-term value creation rather than short-term market fluctuations. Recently, she discussed three notable stocks in her portfolio:

Discovery Silver Corp.

Discovery Silver Corp., a company focused on precious metals, has captured Dunwoodie’s interest due to its strategic acquisitions, including the Porcupine gold mine and the Cordero silver project. This investment aligns with her belief in the potential for significant value creation driven by strong leadership. CEO Tony Makuch, with his extensive experience and community ties, enhances the company’s prospects.

Paramount Resources Ltd.

Another cornerstone of Dunwoodie’s portfolio is Paramount Resources Ltd., an established energy producer based in Calgary. With a history dating back to 1998, Dunwoodie has consistently added to her position in this company. The Riddell family, its founders, have a proven track record in exploring and developing oil and gas fields in Western Canada, further solidifying its place in her portfolio.

Premium Brands Holdings Corp.

Premium Brands Holdings Corp., a producer and distributor of specialty food products, has also gained Dunwoodie’s attention. She initiated her position in the company after recognizing its growth potential and strong management led by George Paleologou. The company’s strategic direction, with a focus on disciplined acquisitions, positions it for long-term growth.

Decisions in the Market: Recent Exits

In addition to making strategic investments, Dunwoodie is also vigilant about her portfolio management, evidenced by her recent decision to sell MEG Energy Corp. Following its acquisition by Cenovus Energy Inc., Dunwoodie chose to exit, citing that Cenovus did not align with her investment criteria due to its large market cap.

This highlights her strategy of maintaining a focused portfolio that reflects her investment philosophy and understanding of the market dynamics.

Conclusion: A Focus on Core Values and Strategic Growth

Dunwoodie's investment approach exemplifies a commitment to understanding the companies in her portfolio deeply. By focusing on Canadian small- and mid-cap sectors, she believes in unlocking the potential of local businesses while achieving significant returns.

Her success story serves as an inspiring example for investors who aspire to make informed decisions based on a solid understanding of their investments and the markets in which they operate.