Institutional Investment
Pembroke is a Canadian-based investment management firm that has been providing services to institutional and private clients for almost 60 years.
Pembroke’s competitive strength is rooted in the combination of an independent multi-generational ownership model, an investment-led culture, and long-term thinking. The organizational model promotes alignment between the firm and its clients, while helping to retain the best investment minds.
Over time, Pembroke has evolved beyond its small-cap roots to provide clients a complete public equity investment solution.
Quality
Pembroke invests in quality companies that show a strong history of returns on capital, disciplined capital allocation, and the ability to grow without relying on capital markets.
Alignment
Companies led by owners tend to act in the long-term interests of their stakeholders. They focus on long-term value creation and on prudent stewardship of shareholder capital. Pembroke looks for companies where management has a meaningful ownership stake and appropriate compensation.
Growth
Businesses with durable competitive advantages and long reinvestment runways are better positioned to compound value over time. Pembroke invests in companies that operate in large or rapidly expanding addressable markets and where management is focused on growing cash flow per share.
Approach to Investment
Pembroke has been focused on growth investing since 1968.
Pembroke’s investment philosophy is centred on owning a portfolio of high-quality publicly listed growth companies with durable competitive advantages, strong management teams, and the ability to compound earnings over the long term.
With over six decades of experience investing in smaller North American companies, Pembroke is now applying its expertise to a broader investment universe.
The firm takes a fundamental, bottom-up investment approach and emphasizes a long-term investment horizon. The investment team conducts rigorous due diligence to identify companies with significant growth opportunities, proven products or services, and management teams whose interests are closely aligned with shareholders.
Pembroke aims to establish positions when the risk/reward profile is favourable and maintains valuation discipline through ongoing monitoring, trimming or exiting positions as valuations become less compelling relative to fundamentals.
Institutional Strategies
Pemboke manages institutional equity strategies for pension plans, foundations and private investors.
Canadian All Cap Strategy
Invests in a focused portfolio of high-quality Canadian mid- and large-cap growth companies. The strategy employs a benchmark-agnostic, bottom-up approach to identify differentiated opportunities and deliver long-term capital appreciation.
Canadian Growth Strategy
Invests in high-quality small- and mid-cap Canadian growth companies, often underfollowed and earlier in their growth lifecycle. The strategy emphasizes disciplined, bottom-up research to identify businesses with strong fundamentals and long-term value creation potential.
Dividend Growth Strategy
Invests in a focused portfolio of high-quality Canadian companies, diversified across sectors and primarily in the small- and mid-cap range. The strategy emphasizes sustainable dividend growth and long-term capital appreciation through disciplined, bottom-up research.
International Growth Strategy
Invests across all market capitalization ranges in developed markets outside North America to seek broader diversification and expand the opportunity set by providing access to a wider range of companies, industries and sources of growth.
Select Strategy (formerly Concentrated)
Invests in a highly concentrated portfolio of high-quality growth companies, primarily in the U.S., selected based on the highest conviction in long-term return potential. The strategy emphasizes focused capital allocation to a limited number of businesses identified through disciplined, bottom-up research.
U.S. Growth Strategy
Invests in high-quality U.S. small- and mid-cap growth companies, often underfollowed and earlier in their growth lifecycle. A disciplined, bottom-up approach seeks to identify businesses with strong fundamentals and long-term value creation potential.
Institutional Representatives
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Institutional Information
Auditors and Legal
Auditors
- Deloitte & Touche LLP
Legal
- Lavery, de Billy LLP (Canada)
- Torys LLP (Canada)
- Mayer Brown LLP (U.S.A.)
- Bech-Bruun (Denmark)
- William Fry (Ireland)
Policy Documents
Compliance
Pembroke Management Ltd. is an independent, Montreal-based investment firm, that specializes in US-Canadian small & medium capitalization growth companies. Pembroke treats compliance as a core value.
Pembroke Management Ltd. claims compliance with the CFA Institute Asset Manager Code, a voluntary code of conduct and commitment to commonly held ethical principles.
Pembroke Management Ltd. uses the CFA Institute’s Code of Ethics as a guide to set out specific standards of professional conduct. All employees are required to uphold the spirit of this document and confirm their understanding and acceptance of it on an annual basis.
Pembroke Management Ltd. claims compliance with the Global Investment Performance Standards (GIPS®). Prospective clients can obtain a compliant presentation and/or the firm’s list of composite descriptions by contacting Pembroke Management Ltd.
Registration
Canada
Pembroke Management Ltd. is incorporated under the Federal laws of Canada.
Pembroke Management Ltd. is registered with the Autorité des marchés financiers (AMF), the Ontario Securities Commission, the Alberta Securities Commission, the Manitoba Securities Commission, and the British Columbia Securities Commission. These registrations permit Pembroke Management to provide discretionary portfolio management services to institutional and individual clients in those jurisdictions.
United States
Pembroke Management Ltd. is registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor under Section 203 of the Investment Advisers Act of 1940.
The ADV1 form, which details all pertinent information regarding the firm, has been filed with the SEC and is publicly available.
Denmark
On June 30, 2013, Pembroke Management Ltd. was granted registration by the Danish Financial Supervisory Authority to carry out investment services cross-border into Denmark.
Ireland
On August 19, 2014, Pembroke Management Ltd. was granted authorization by the Central Bank of Ireland to act as an Investment Manager to Irish authorized collective investment schemes.