Q1 2026 Portfolio Update

Key Takeaways

• Portfolio up 10.8% Q1, beating major indices.
• Cipher and Viemed each delivered >20% gains.
• OFS basket averaged ~35‑40% return, driven by oil stocks.
• Geodrill fell 27.5% amid gold price pullback.
• Cash held at 3‑5%, showing confidence in new ideas.

Pulse Analysis

The first quarter of 2026 has proven a proving ground for selective small‑cap strategies, as Dean’s portfolio outperformed the TSX Composite (+3.3%), Nasdaq (-7.1%) and S&P 500 (-4.6%). This divergence underscores the value of concentrating on niche sectors that react differently to macro‑economic pressures, such as commodity price swings and geopolitical events. By maintaining a disciplined allocation and trimming positions that become overbought, the portfolio leveraged volatility rather than being dragged down by broader market weakness.

Energy‑linked equities were the engine of growth. Cipher’s post‑acquisition stability and Viemed’s renewed market sentiment delivered double‑digit gains, while the OFS basket—comprised of ESI, MCB, TOT, PHX, PSI, PSD and ACDC—captured the upside from the Iran conflict‑driven oil supply concerns, with individual stocks like PHX soaring 85% and TOT climbing 55%. Conversely, the cannabis basket stalled, reflecting lingering regulatory uncertainty and pricing pressure. These dynamics illustrate how sector‑specific catalysts can outweigh traditional index movements, especially in a year where commodity cycles dominate investor attention.

Risk management remains critical. Geodrill’s 27.5% decline, tied to a gold price pullback, and Dirtt Environmental’s 9.9% loss highlight the volatility inherent in mining and environmental service stocks. Maintaining a modest cash buffer of 3‑5% provides flexibility to seize emerging opportunities without forcing premature exits. Looking ahead, continued monitoring of oil geopolitics, metal price trends, and financing activity in junior mining will be essential for sustaining the portfolio’s outperformance throughout 2026.