Donville Kent Capital Ideas Fund commentary for the month ended June 30, 2016.

Dear Partners and Friends,

For the second quarter of 2016, the Capital Ideas Fund LP was down 0.25%* and the Capital Ideas Trust was also down 0.25%*. The S&P/TSX Composite Total Return Index was up 5.07%** for the quarter.

*All Figures are time weighted weights of return, net of all fees and expenses, in Canadian dollars, based on Class A Series 1
**Source: S&P/Capital IQ

During the quarter we were quite active with respect to repositioning the portfolio.  This included trimming a few of our larger positions, selling some of our lower conviction holdings, initiating positions in a small number of new names and raising our cash weighting to 15% for the start of Q3.

Donville Kent Capital Ideas Fund – Investment Strategy

The Fund invests long and short in a concentrated group of publicly listed securities. Through the application of our focused investment strategy, we search for companies that possess high levels of return on equity, reasonable valuations and positive share price momentum. Portfolio companies typically have a track record of achieving high returns on equity, and are capable of generating high returns on equity for many years without the addition of significant amounts of equity capital other than that which is being generated internally. These companies are run by strong management teams that have a significant ownership stake in the business.

Donville Kent, Capital Ideas Fund

Donville Kent, Capital Ideas Fund

Firm Profile

Donville Kent is a highly specialized asset management firm that manages investments on behalf of individual investors as well as select institutions. Collectively, our principals have extensive experience in portfolio management, equity research and trading. Unlike many traditional investment firms, our principals are the largest investors in our funds. This commitment results in the highest possible alignment of interest with our clients and is a key component of our success.

Donville Kent, Capital Ideas Fund