The Globe and Mail reports in its Tuesday edition that David Barr has his eye on small-cap companies he believes can outperform their larger peers. The Globe's Brenda Bouw quotes the chief executive officer at PenderFund Capital in Vancouver saying: "One of the key reasons we focus on the small-cap space is that the market is less efficient. ... We believe we have an analytical edge and can hopefully generate alpha for our clients." Mr. Barr's $250-million Pender Small Cap Opportunities Fund's F Class has seen a one-year return of 6.2 per cent, while its five-year annualized return is 11.2 per cent. Mr. Barr has been adding to PenderFund's position in Dye & Durham, which makes cloud-based software for law firms dealing mostly with real estate transactions. "It's a sticky, high-margin business with pricing power," Mr. Barr told The Globe. "We added significantly to the stock in the fourth quarter of last year when the stock dropped after the market became concerned about the company's debt levels. We had confidence the CEO was going to be able to handle the situation. After that, the company's debt load has come down quite dramatically. The stock has also rebounded. It's the largest position in our fund today."