Donville Kent Asset Management Sees Opportunity in Small-Cap Stocks

Fund manager highlights productivity gains, tax benefits, and resilient small-cap earnings amid Middle East tensions.

Apr. 1, 2026 at 1:05am

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Donville Kent Asset Management's March 2026 commentary analyzes the impact of the Middle East conflict on markets, while also highlighting tailwinds for the economy and small-cap stocks. The firm sees opportunities in companies benefiting from productivity gains, tax incentives, and resilient earnings, even as broader market volatility persists.

Why it matters

Donville Kent's insights provide a window into how active managers are navigating the current market environment, marked by geopolitical tensions, inflation pressures, and shifting monetary policy. Their focus on fundamentals and small-cap opportunities offers a counterpoint to broader market concerns.

The details

The commentary examines how the Middle East conflict has impacted inflation, interest rates, and stock market performance. While acknowledging the risks, Donville Kent sees pockets of strength, including tax incentives for capital investment, a productivity boom driven by technology, and small-cap companies poised to outperform larger peers. The firm has reduced exposure to some holdings but remains bullish on several of its largest investments, which it expects to deliver record revenues and earnings in 2026.

  • Donville Kent published the March 2026 commentary on April 1, 2026.
  • The firm sold its entire position in GoEasy in December 2025 and reduced its Propel holding in January 2026.

The players

Donville Kent Asset Management

A Canadian investment management firm that publishes market commentary and manages the Donville Kent Capital Ideas Fund.

GoEasy

A Canadian consumer lending company that Donville Kent previously invested in but has since sold.

Propel

A Canadian fintech company that Donville Kent has reduced its position in.

Constellation Software

A Canadian software conglomerate that Donville Kent sold its position in during 2025.

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What they’re saying

“We're being selective, but this is the best opportunity set we've seen since at the 2022 bottom. We remain focused on the trajectory of revenue growth and earnings and see each of our largest investments having record revenues and earnings in 2026.”

— Jason & Jesse, Donville Kent Asset Management

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Donville Kent's focus on fundamentals and small-cap opportunities provides a counterpoint to broader market concerns, highlighting how active managers are navigating the current environment marked by geopolitical tensions, inflation, and shifting monetary policy.