Teresa Lee Returns to Lead PenderFund's Small-Cap Ambitions

VANCOUVER, BC – January 21, 2026 – In a significant move signaling a deepened commitment to its core strategy, PenderFund Capital Management Ltd. has appointed esteemed investment veteran Teresa Lee, CFA, as its new Head of Equity Research. Lee, who brings over 25 years of industry experience, will also join CEO David Barr at the helm of the Pender Global Small/Mid Cap Equity Fund, marking her return to full-time portfolio management after a brief retirement.

The appointment is being viewed as a strategic masterstroke for the independent, employee-owned Vancouver firm, which has long championed the potential for outsized returns within the less-trafficked small and mid-capitalization equity markets.

The Return of a Small-Cap Stalwart

Teresa Lee is a well-regarded figure in the Canadian investment community, particularly for her deep expertise in small-cap equities. Her career began in 1995, but she quickly found her niche in 1998, dedicating her focus to the small-cap segment. Her most notable tenure was a 16-year stint at Sionna Investment Managers, where she led small cap, all cap, and high-conviction mandates, culminating in her appointment to Co-Chief Investment Officer in 2015.

After retiring in 2020 to pursue private investments and other projects, Lee remained an active observer of public markets. Her decision to return to the demanding world of full-time asset management was not taken lightly. The choice of PenderFund was a deliberate one, driven by a mutual philosophy and a shared passion for a specific market segment.

“I have always admired Pender because of its small cap specialization and independence,” commented Lee in the official announcement. “I am passionate about small cap investing and believe that this under-followed, often ignored segment of the investing universe is the best place to hunt for outperformance. With their decades of expertise, Pender is very well positioned to leverage this opportunity.”

Her return is not just a personal comeback but a strong endorsement of Pender's specialized approach in a market often dominated by larger, more generalized firms.

A Strategic Play for Market Dominance

PenderFund's decision to bring Lee aboard is a clear doubling-down on its foundational investment thesis. The firm, founded in 2003, has built its reputation by actively managing funds that exploit inefficiencies in the market, with a particular focus on small-cap companies since 2009. The fund Lee will co-manage, the Pender Global Small/Mid Cap Equity Fund (formerly the Pender Value Fund), is a prime example of this strategy in action.

The concentrated, North American-focused portfolio has a history of strong performance, notably returning an impressive 55.9% for the full year of 2024, a period where it significantly outpaced benchmarks like the S&P/TSX Composite Index. Lee will co-manage this fund alongside David Barr, Pender's President and CEO, a noted value investor known for his contrarian approach and search for companies trading below their intrinsic value.

This hire is about more than just adding another portfolio manager; it's about amplifying the firm's core competency. Pender's CIO, Greg Taylor, emphasized the strategic importance of the timing and the individual.

“We are delighted that Teresa is joining Pender,” Taylor stated. “We believe there is an incredible opportunity in small caps and are excited to have Teresa, a highly respected small cap investor, join to strengthen and develop the team and further hone our fundamental process.”

Unlocking Alpha in an 'Ignored' Market

The conviction shared by Lee and PenderFund's leadership is underpinned by a growing consensus that small-cap stocks are poised for a period of significant outperformance. This segment, often described as 'under-followed' and 'ignored' by the broader analyst community, is precisely where active managers believe they can generate alpha—returns above the market benchmark.

This view is supported by external market analysis. In late 2024, prominent market strategists like Tom Lee of Fundstrat Global Advisors highlighted a stark valuation gap, noting that small caps were trading at a significant discount to large-cap stocks despite having stronger earnings growth profiles. Some analysts have projected that small caps could outperform their larger counterparts by a wide margin over the next several years, suggesting that Pender's reinforced focus is exceptionally timely.

Pender's investment process is tailor-made to capitalize on this environment. The firm employs a disciplined, fundamentals-driven research methodology to identify mispriced companies. Its core risk management framework, the "Trinity of Risk," focuses on meticulously assessing and avoiding valuation risk, business risk, and balance sheet risk. Lee’s role as Head of Equity Research will be pivotal in enhancing this process, adding her seasoned perspective to the firm's analytical engine and mentoring its team of analysts.

Bolstering an Established Team

Teresa Lee is not joining a nascent operation but rather fortifying an already robust and experienced team. She will work alongside a deep bench of investment professionals, including CIO Greg Taylor, CEO David Barr, and a team of portfolio managers and analysts who have been cultivating the firm's small-cap strategy for over a decade.

Her dual responsibilities as Head of Equity Research and fund co-manager are designed for maximum impact. In her research leadership role, she will be instrumental in shaping the firm-wide investment process, ensuring a consistent and rigorous application of Pender's fundamental principles. As a co-manager, she will bring her hands-on stock-picking expertise directly to bear on a key portfolio, translating research insights into tangible investment decisions.

This strategic integration of a veteran investor with a proven track record is intended to add both depth and breadth to Pender's capabilities. It enhances their ability to identify unique growth ideas and navigate the complexities of the small-cap universe, reinforcing the fund's position as a differentiated offering for investors seeking to complement their existing portfolios and diversify their sources of equity growth.