Sam LaBell, our Portfolio Manager, appeared on BNN Bloomberg’s Trading Day show to discuss the state of the Canadian economy
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News and Insights - May 2026
The fund’s top performers included TFI International Inc. (NYSE, TSX: TFII) in April, as the company reported Q1 earnings that exceeded estimates and provided better-than-expected Q2 guidance. Management’s Q2 EPS range reflects a year-over-year EPS growth of 12-19%. Management expects sequential Operating Ratio improvements of 600-700bps in Less-than-truckload, 200-300bps in Truckload and 75-125bps in Logistics. TL volumes
exited Q1 up 8% year-over-year into April, with flatbed contract renewals that are trending to high-single to low-double digit growth.
Bombardier Inc. (TSX: BBD.b) rose in April after the company signed a $300-million services agreement with Vista and increased its free cash flow guidance from a range of $600 million to $1 billion, to over $1 billion, exceeding street estimates. The company increased its order backlog to $20 billion on a book-to-bill of 3.6x. Demand remains strong, particularly at the high end of the market, while services and defence continue to scale as higher-margin, recurring revenue streams.
North American financials: Canadian Imperial Bank of Commerce (NYSE, TSX: CM), Toronto Dominion Bank (NYSE, TSX: TD) and Sun Life Financial Inc. (NYSE, TSX: SLF) rallied in April following the ceasefire deal between the U.S. and Iran, and private credit concerns dissipated after a blowout Q1 U.S. bank earnings season. The U.S. Federal Reserve kept the benchmark interest rate at between 3.50% and 3.75%, which is supportive of stabilizing net interest margins. The insurance and asset management sectors also benefit from higher investment incomes on fixed-income portfolios in a higher-for-longer rate environment.
As mentioned in previous commentaries, the Veritas Next Edge Premium Yield Fund employs an active option strategy to generate efficient yield. Not all equities are created equal, and we typically do not blanket write options on the entire Fund portfolio. Typically, much of the yield is geared towards the higher volatility Fund portfolio names. As a result, we categorize our equities into two distinct volatility buckets: the higher bucket would include names with 60-day implied volatility greater than 35, and a lower volatility bucket would be names that have a 60-day implied volatility under 35. The higher volatility bucket represents approximately 30.3% of the Fund’s portfolio and includes names such as Agnico Eagle Mines Ltd., Bombardier Inc., and Hudbay Minerals Inc. These names have historically generated premiums for the Fund consistently in excess of 4%. For the lower volatility names, we still will write on a number of the names; however, we typically employ a much more opportunistic approach, whereby waiting for potential earnings, or waiting for sharp rallies as opportune times to write on these positions. For example, when Rogers Communications Inc. soared approximately 15% in April, we were unwritten and waited for an opportunity to write post-rally, and we did. A situation where during the month we were able to reap both capital appreciation on the stock and then attractive yield premium shortly after that as well.
Visit Next Edge to learn more about the fund and read the full monthly commentary, including additional options commentary.
Source: Next Edge Capital Corp. & Bloomberg LLP. as of April 30, 2026
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Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to discuss his outlook on the markets
Read moreThe information contained herein is for general information purposes and does not constitute a solicitation for the purchase or sale of securities. The full details of the Fund, its investment strategies and the risks are detailed in the Fund’s current simplified prospectus and fund facts document, copies of which may be obtained from Sedar, your dealer, Veritas Asset Management Inc. (“VAM”) or at Veritasfunds.com. Please read the prospectus before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. All performance data assume reinvestment of all distributions or dividends and do not take into account other charges or income taxes payable by any unitholder that would have reduced returns. The performance of the Fund is not guaranteed, unit values change frequently and past performance may not be repeated. Performance is presented in Canadian dollars, unless otherwise stated, and is net of fees of Series F units of the Fund. VAM is an affiliate of Veritas Investment Research Corporation (“VIR”) by virtue of being under common control that may also from time to time have certain common directors, officers and/or employees. VIR produces and issues independent equity research regarding public issuers to investors and other capital markets participants. VAM is a client of VIR and receives research reports from VIR at the same time as VIR’s other clients. VIR and VAM have implemented policies and procedures to minimize the potential for and to address conflicts of interest, which are available upon request.
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BNN: ‘The question is, what can reboot growth?’: LaBell on Canada’s economy
Read moreVeritas Next Edge Premium Yield Fund April 2026 Top Performers and Options Update
BNN: ‘Very good, well-managed company. You’re getting it at a discount’: LaBell on Linamar
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