For the third quarter ended September 30th, 2025, KVF gained $5.13 per share, increasing the value of each share to $84.16. This represents a pre-tax return of 8.1%, roughly matching the S&P 500's 7.8% return, while trailing the ~12% returns of the the Russell 2000 and the S&P/TSX. Whenever KVF's eclectic mix of sleepy/boring industrials can match the returns of the index which contains the darling tech megacaps when they are in favour, it is a good one.
Usually there are a couple of major stock movements which are responsible for the majority of KVF's gains in a quarter such as this one, but this quarter was instead characterized by broad-based gains throughout much of the portfolio. Gains in the share prices of Perdoceo, Rayonier, Mastercraft and ZoomD contributed some, but were only responsible for part of this quarter's gains.
Another positive contributor this quarter was the performance of Paramount Skydance, which KVF has now completely sold out of. This was originally purchased as Viacom a few years ago, and overall has caused major losses to KVF (this quarter aside). Investing in companies facing obsolescence in parts of their business, where there is supermajority management control, may not be the best way to generate stock market gains. If only such a large tuition payment wasn't required to educate your humbled manager on this point.
Prices are currently elevated in developed markets. As such, KVF's cash position has been growing and will continue to do so if general equity prices remain strong.
KVF's income statement, balance sheet and pre-tax/post-fee returns since inception are included below (click to enlarge). Note that securities are marked to market value, and amounts are in thousands of $CAD:
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