IA Clarington Q2 newsletterhttps://iaclarington.com/docs/default-source/active-insights/quarterly-commentaries/ia-clarington-canadian-small-cap-fund.pdf
The Fund built a position in Enghouse Systems Ltd. during the most recent quarter. Enghouse is a consolidator of software serving verticals primarily in the contact centre, telecommunication and transportation markets. The company is diverse from both a geographic and customer perspective. Enghouse is a business focused on growth through acquisition, demonstrating an above-average capital deployment track record compared to most Canadian companies, which has allowed for mid-teensgrowth in annual earnings per share ( i.e., a company's profits per share of common stock outstanding)over the past decade. The company generates ample cash and has a large cash balance. Importantly, as a consolidator in the software sector, Enghouse should be able to deploy more capital at increasingly attractive rates if broader technology industry valuation multiples continue to face pressure.