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Langdon Canadian Smaller Companies Portfolio Q1 2026 Investor Update

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Langdon Canadian Smaller Companies Portfolio Q1 2026 Investor Update

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Dear Partners,

The Canadian Smaller Companies Fund declined 1.5% in the first quarter of 2026, compared to a 7.3% increase for the benchmark.

Langdon Canadian Smaller Companies Portfolio

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Net Performance ¹(CAD, Class F) Q1 2026 1 Year 3 Year Since inception ²
Langdon Canadian Smaller Companies Portfolio ³ -1.5% 27.1% 13.3% 13.7%
MSCI World Small Cap Net Index 7.4% 52.2% 25.5% 22.7%

Net Calendar Year Performance(CAD, Class F) ¹ 2025 2024 2023 2022 ²
Langdon Canadian Smaller Companies Portfolio ³ 19.7% 13.1% 15.8% 2.6%
MSCI World Small Cap Net Index 42.5% 24.3% 10.4% -0.7%

Over the past several quarters, we have discussed how the Canadian market has been driven largely by gold-related equities, with that narrative continuing to influence returns. We have also outlined why the core tenets of Langdon’s approach lead us away from businesses where revenues are primarily dependent on inputs outside of management’s control.

What we have not emphasized and what is worth highlighting is the common thread between what gold investors seek and what we seek at Langdon: scarcity.

For gold investors, scarcity is straightforward. It is rooted in the finite supply of the underlying asset.

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At Langdon, we think about scarcity differently.

We look for businesses where scarcity is reflected in a combination of characteristics that are difficult to replicate:

  • Resilient and compounding free cash flow
  • Strong balance sheets
  • Talented and aligned management teams
  • Attractive valuations relative to intrinsic value

Individually, these attributes are not rare. In combination, they are.

In our view, it is this combination that allows businesses to adapt, evolve, and compound value over time.

Portfolio Attribution

Performance during the quarter was driven by the following key contributors and detractors across the portfolio.

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Leading contributors included:

  • PrairieSky Royalty Ltd. — a royalty business generating revenue from oil and gas production without direct operating exposure
  • Logan Energy Corp. — a growing platform focused on Western Canadian oil and gas development
  • EQB Inc. — a challenger bank continuing to scale deposits and lending through its digital platform

Detractors included:

  • TerraVest Industries Inc. — a diversified industrial business serving energy and infrastructure markets
  • Definity Financial Corporation — a P&C insurer focused on disciplined underwriting and long-term book value growth

In the case of the detractors, short-term share price movements diverged to varying degrees from underlying business performance. Our focus remains on the latter.

Company Commentary – Prairesky Royalty LTD.

PrairieSky Royalty Ltd. embodies the core tenets of scarcity that we believe underpin successful long-term investing. Our history with this company (slightly) predates its 2014 IPO. We wanted to get more time with the very talented CEO before the 100+ meeting roadshow, so we arranged to meet for coffee at the Starbucks on Yonge and King just before the day started at 7 am. Sometimes, very unique leadership teams and assets require very unique access.

The company owns one of the largest portfolios of fee simple mineral title in Canada. Unlike traditional energy companies, PrairieSky does not operate wells or spend money drilling, completing or tying in wells. Instead, it collects royalties on production from third-party operators across its land base.

This model results in a business with high margins and resilient free cash flow. Because PrairieSky does not bear the capital costs of drilling and is not exposed to operational execution risk, its economics are structurally different from those of traditional producers.

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The strength of the business is rooted in its low capital intensity. With no requirement to fund development activity, PrairieSky maintains flexibility through cycles while preserving the ability to allocate capital toward acquiring additional royalty interests.

Management’s role is not to operate assets, but to allocate capital and manage the asset base with discipline. Over time, outcomes are driven by decisions around royalty structures, acquisitions, and the stewardship of a finite resource.

The asset base itself is difficult to replicate. PrairieSky’s land position has been assembled over decades and represents a finite resource with perpetual ownership, providing long duration exposure to production without requiring ongoing capital investment.

Importantly, the business benefits from industry activity without requiring capital, a combination that is difficult to replicate. We have already earned a handsome return on our investment with this company, but we felt that coming into 2025, the liquids growth and corresponding cash flows were not being appreciated by the market, so we decided to add to our investment, and it’s now the largest holding in the fund.

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In our view, PrairieSky reflects the type of business we seek to own: one where resilient cash flows, capital efficiency, and disciplined capital allocation support long-term compounding of free cash flow per share.

Looking Ahead

Periods like the past quarter are frustrating. They are also part of the price of investing with discipline.

We do not build the portfolio around forecasts of commodity prices, interest rates, or macroeconomic outcomes. Our returns do not depend on getting those calls right.

Instead, we focus on owning a concentrated group of businesses that can compound free cash flow per share over long periods, with strong balance sheets and management teams we trust to allocate capital well.

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That will sometimes lead to periods of divergence, particularly when markets reward a narrow set of exposures. We are comfortable with that. It is a feature of a differentiated approach, not a flaw. At quarter-end, amid all the volatility and narratives, we sit right around our targeted return since inception of 15% and are very comfortable with the risk we have taken to deliver it.

Our process remains unchanged. We continue to do what we have always done: concentrate capital behind high-quality businesses and let time work in our favour.

Greg Dean, Founder and Lead Investor


References

  1. Performance as at December 31, 2025. Returns greater than one year are annualized. Past performance is not indicative of future performance. Please see the important information in the endnote below.
  2. Since inception date of August 26, 2022.
  3. LEP110 (Class F) – performance is net of fees.

DISCLAIMER

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This article is prepared by Langdon Equity Partners. Content in respect of the Langdon Smaller Companies Fund (ARSN 657 901 614 (the Fund) is issued by Pinnacle Fund Services Limited ABN 29 082 494 362 AFSL 238 371 (‘PFSL’) as responsible entity of the Fund. PFSL is not licensed to provide financial product advice. It contains general information only, including any companies identified by name and/or their respective trademarks. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so.

All statistical figures (exact and/or approximate) referenced throughout this article including all tables, charts and graphs, have been derived from publicly available sources, our own internal research/analysis, or a combination of both, unless described otherwise. Underlying data can be provided upon written request.

Past performance is for illustrative purposes only and is not indicative of future performance.

While Langdon Equity Partners Limited (‘Langdon’) and PFSL believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Langdon and PFSL disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

For Australian Clients:

The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Link to the Product Disclosure Statement: here

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Link to the Target Market Determination: here

For historic TMD’s please contact Pinnacle Client Service Phone 1300 010 311 or Email service@pinnacleinvestment.com

For Canadian Clients:

Important information about each Langdon mutual fund is contained in its prospectus, fund facts document and in its management report on fund performance. Any potential investor should review these documents prior to making any investment decision relating to such fund. You can view copies of these documents by following the links below:

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Link to the Langdon Global Smaller Companies Portfolio Disclosure Documents: here

Link to the Langdon Canadian Smaller Companies Portfolio Disclosure Documents: here



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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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Top 10 AI Companies Leading New Zealand’s Tech Boom in 2026
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From autonomous digital humans to precision farming tools and advanced analytics platforms, Kiwi AI companies are attracting international investment and talent while solving real-world problems unique to New Zealand’s economy and environment. Here are the top 10 AI companies making the biggest impact this year, based on innovation, funding, market traction and industry influence.

1. Soul Machines (Auckland/Wellington) Soul Machines remains New Zealand’s AI flagship. The company, known for creating autonomously animated “digital people” with emotional intelligence, continues to lead in humanized AI interfaces. Its technology powers customer service avatars for major banks, healthcare providers and retailers worldwide. In 2026, Soul Machines expanded its emotionally intelligent agents with improved real-time responsiveness and cultural adaptability, securing major enterprise contracts across Asia-Pacific. The company’s biologically inspired models are considered among the most advanced in conversational AI globally.

2. Halter (Auckland) Halter solidified its status as New Zealand’s first agritech unicorn with its AI-powered virtual fencing systems for cattle. Using solar-powered collars and sophisticated algorithms, Halter enables farmers to manage herds remotely, improving animal welfare and pasture utilization. The company raised significant funding in 2025 and expanded internationally in 2026. Its technology is now used on thousands of farms, demonstrating how AI can transform traditional industries like agriculture, which remains vital to New Zealand’s economy.

3. Yabble (Auckland) Yabble has emerged as a leader in insight-driven AI analytics. The platform uses generative AI to automate qualitative research and data interpretation, helping brands extract actionable insights from customer feedback at scale. In 2026, Yabble launched new features for real-time sentiment analysis and predictive trend modeling, winning major clients in retail and consumer goods. Its user-friendly interface has made advanced AI accessible to non-technical teams.

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4. Thematic (Auckland) Thematic specializes in AI-powered customer experience analytics. Its platform automatically analyzes feedback from surveys, reviews, and support interactions to identify themes and trends. The company reported strong growth in 2026 as businesses increasingly prioritize customer intelligence. Thematic’s ability to turn unstructured data into strategic insights has made it a go-to solution for enterprises seeking to improve retention and satisfaction.

5. Starboard Maritime Intelligence (Auckland) Starboard leverages AI for maritime domain awareness, using satellite data and machine learning to track vessels, detect illegal fishing, and enhance maritime security. The company has gained international recognition for its work supporting Pacific Island nations and environmental monitoring. In 2026, Starboard expanded its predictive analytics capabilities, helping governments and commercial fleets optimize routes and reduce environmental impact.

6. Arcanum AI (Wellington) Arcanum AI focuses on explainable AI for regulated industries. Its platform helps organizations deploy transparent machine learning models in finance, healthcare, and government sectors. The company’s emphasis on ethics and auditability has driven adoption among institutions requiring compliance and trustworthiness. Arcanum reported strong revenue growth in 2026 as demand for responsible AI solutions increased globally.

7. Custom D (Christchurch) Custom D delivers tailored AI solutions for insurance, logistics, and manufacturing. Known for practical, industry-specific applications, the Christchurch-based firm combines machine learning with deep domain expertise. In 2026, it launched new computer vision tools for quality control and risk assessment, helping clients reduce costs and improve safety.

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8. Quantiful (Auckland) Quantiful uses AI to optimize retail and e-commerce operations through demand forecasting and personalized recommendations. The company’s technology helps retailers reduce waste and improve customer experiences. Strong partnerships with major New Zealand and Australian brands have fueled steady growth throughout 2026.

9. Avertana (Auckland) Avertana applies AI to resource recovery and circular economy solutions. Its intelligent systems identify and sort materials for recycling with high accuracy. The company’s work supports New Zealand’s sustainability goals and has attracted international interest from waste management firms seeking smarter processing technologies.

10. NextWork (Auckland) NextWork focuses on AI-driven workforce upskilling and talent development. Its platform uses adaptive learning algorithms to create personalized training programs for companies undergoing digital transformation. The company raised significant funding in 2025-2026 to expand globally, capitalizing on the growing need for AI literacy in the workforce.

New Zealand’s AI Ecosystem Thrives

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New Zealand’s AI sector benefits from strong government support, world-class universities (particularly the University of Auckland and University of Otago), and a collaborative startup culture. The country’s focus on ethical AI, combined with expertise in agriculture, environmental science, and healthcare, has created unique advantages in vertical AI applications.

Investment in AI startups has surged, with venture capital firms showing strong interest in companies addressing climate challenges, sustainable agriculture, and responsible technology development. Auckland remains the primary hub, but innovation is spreading to Wellington, Christchurch, and Dunedin.

Challenges remain, including talent retention (many graduates are lured overseas by higher salaries) and access to large-scale computing infrastructure. However, partnerships with international tech giants and a growing emphasis on domestic capability building are helping address these gaps.

Future Outlook

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As 2026 progresses, New Zealand’s AI companies are poised for even greater impact. The combination of technical excellence, ethical focus, and practical problem-solving positions the country well in the global AI race. From Soul Machines’ empathetic digital humans to Halter’s intelligent farming systems, Kiwi innovation is proving that smaller nations can lead in specialized, high-value AI applications.

For businesses and investors looking at the AI space, New Zealand offers a compelling mix of cutting-edge technology, stable governance, and a collaborative ecosystem. The top 10 companies listed here represent only a fraction of the talent and ambition emerging from this South Pacific tech powerhouse. As the year unfolds, expect more breakthroughs from these leaders and the next wave of startups following closely behind.

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“No waiting rooms. No scheduling conflicts,” they add. “Just a process that moves.”

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RX Pros has built much of its growth around GLP-1 medications, including compounded semaglutide and tirzepatide.

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“We saw a huge demand for weight loss solutions that people could actually access,” the company shares. “Not everyone can afford or get approved for brand-name options.”

This gap created an opening. By focusing on compounded alternatives and telehealth delivery, the platform offers another pathway for patients seeking treatment.

But the company does not limit itself to one category. It also supports other common needs like erectile dysfunction, hair loss, and hormone therapy.

Still, weight loss remains the core driver.

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“It’s where the need is highest right now,” they explain. “And where we can make the biggest impact.”

How the Online Process Actually Works

The system is designed to be simple. Each step removes a traditional barrier.

First, the patient fills out an online questionnaire. This replaces the initial office visit. Next, a licensed provider reviews the information. Depending on state rules, communication may happen through messaging, audio, or video.

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“If it’s approved, the prescription moves forward right away,” they say.

From there, a compounding pharmacy prepares and ships the medication directly to the patient.

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This structure also supports users who may not have insurance coverage. The platform operates on a cash-pay model, with revenue coming from consultation fees and program subscriptions.

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The company’s value proposition centers on four ideas: convenience, speed, affordability, and accessibility.

“Everything we do ties back to those four things,” they say.

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Screenshot 2026-04-28 061938Agencies

Valuation Discipline
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Iran has continued to insist that vessels obtain its approval before passing through the Strait of Hormuz, while Trump said the U.S. has “total control” over the route. At the same time, the U.S. Navy has maintained its blockade targeting Iranian ports and vessels.

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Goldman Sachs raised its fourth-quarter oil price forecasts to $90 a barrel for Brent crude and $83 for WTI, citing reduced Middle East output.“The economic risks are larger than our crude base case alone suggests because of the net upside risks to oil prices, unusually high refined product prices, products shortages risks, and the unprecedented scale of the shock,” Reuters reported, citing Goldman Sachs analysts.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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