For the third quarter ended September 30th, 2026, KVF lost $1.74 per share, decreasing the value of each share to $93.65. This represents a pre-tax loss of 2.3%, falling short of the respective 2% and 1% gains of the S&P 500 and S&P/TSX, but bettering the 8% loss experienced by the Russell 2000.
KVF's entire decline in the quarter can be explained by the 20% decline in its largest holding, ADF Group. This company is doing fine, but its price volatility will continue to affect KVF's quarterly returns by virtue of its size in the portfolio due to its massive gains in the last few years.
Mitigating these losses were gains in Beazer Homes (BZH) and Sangoma (STC), which announced friendly takeover deals at premiums to their market prices. KVF also realized a loss in Resources Connection Group (RGP) as the company has struggled to reduce its costs as much as anticipated.
With the prices of many stocks being lower, there have been opportunities to add to the current portfolio at better prices, particularly in international markets. As the cost of debt rises, it becomes even more important to avoid companies that are over-leveraged in order to maintain focus on KVF's core principle: don't lose money!
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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