“What creates shareholder value is the capital structure and a management team that understands that when equity markets are really low, or prices are depressed, you need to raise money and raise debt. When equity markets are really low, or prices are depressed. Prices are higher or higher, then you go to the equity market to raise equity. A lot of management teams don’t understand that.”
Kadey’s customers add value and knowledge that can be leveraged throughout their business book. Often, if he and his team like a company, it is the founder or major shareholder who has the most extensive knowledge, also becomes the customer.
“It’s all about the people,” Kady says. “That’s my motto – and it’s kept me away from a lot of bad investments. There are a lot of bad actors, especially in the Canadian markets, and you want to avoid those companies. You’re in companies with really smart, ethical people.” Want to invest. Avoid companies with a group of investors who have acquired stock at zero or very low cost because they sell their positions when things change and move on.
Canaccord is the foundation of KD’s approach. Kadey credits the “incredible” support it has received from the firm’s underwriting team, investment bankers and researchers. Canaccord has people and dynamism, he says, that drove him away from Richardson Wealth in 2018 and he credits the vision and leadership of Dan DeViau, president, CEO, and Stuart Raftus of Canaccord Genuity Wealth Management in Canada.
Kady said: “It was so refreshing to find a group that had the attitude to do something. Most other firms, if you go a little out of the way with them, it’s a case of ‘No, we can’t do that,’ and they close your business.”