Contact one of our Portfolio Managers below regarding class-specific investments or contact our office directly at the bottom of this page for more information.
The investment objective of the Global Rates Program is the generation of a consistent source of high quality risk adjusted returns uncorrelated to any global market or index. These objectives are principally achieved by:
- investments in fixed income futures in key developed markets at key maturities on the yield curve. These trades are implemented in highly liquid bond futures whose underlying security is the cheapest to deliver bond in that market at that maturity.
- currency exposure investments in all liquid markets.
The Portfolio Manager employs proprietary risk models and investment models to capture market returns. Risk models are designed to adapt over weekly timescales as most investment models have trade horizons between several days and several months.
Investment models principally employ fundamental and economic models to capture repeatable market behavior although several models attempt to capture shorter (day) trends. Wherever possible the investment universe is expanded to offer the portfolio the largest opportunity set which leads to natural diversification.
Models are included and excluded from the investment process as part of the ongoing research process. Each model must have a tangible and measurable benefit to the portfolio and meet several key investment performance objectives to become a live model.
Typically risk is allocated to each model equally to offer further diversification benefits to the portfolio.
The investment objective of the Class C Shares is to achieve above average risk adjusted returns through a diversified portfolio of exchange traded futures, forwards and options representative of commodity and financial markets at the discretion of the portfolio manager. The Class C Share return profile is designed to exceed traditional equity or fixed income returns in a non-correlative manner adding a unique diversification source of returns for traditional well balanced investment portfolios.
The foundation of the Portfolio Manager’s investment strategy provides for the deployment of long and or short positions in a diversified portfolio of commodity and financial markets with exchange traded futures, options, forwards and the respective cash markets thereof. The portfolio manager uses a combination of fundamental and technical factors assisted by a suite of custom proprietary algorithms designed to participate in both bull and bear market environments and trading ranges thereof. The proprietary algorithms are designed to benefit from perceived investor bias by way of pattern recognition relationships in an array of serial compressions. The suite of trading technologies are under an exclusive licensing to the portfolio Manager by Hand Stitched Algorithmic ULC.
The investment objective of the Class G Shares is to achieve above average risk adjusted returns through a capital investment portfolio principally consisting of a concentrated group of publicly traded precious metals companies. To achieve above average risk adjusted returns on capital investments the Portfolio Manager will maintain a portfolio of both long and short positions in a concentrated group of publicly traded precious metals companies. In support of the program objective, investment positions may be established from time to time in the physical precious metals and the derivatives or proxies thereof.
The foundation of the Class G Portfolio Manager Investment strategy utilizes a bottom-up selection process coupled with fundamental proprietary research to identify companies that are considered undervalued based on asset potential, metal production and enterprise growth, in addition to assessments of relative value. To source potential investment candidates the Portfolio Manager implements a large scale screening processes utilizing proprietary technical analysis software which is used to seek out the strongest companies in the sector of interest.
Potential investments would then be screened using fundamental research to define the top prospects to invest in. Portfolio holdings will typically display strong relative strength to their peers, although the Portfolio Manager contemplates taking both long and short position investments. Entry and exit timing is then managed with the assistance of timing models to enhance the value of the investment decision from the standpoint of the value add of the trade. From a macro risk management prospective the Portfolio Manager may utilize hedging mechanisms from time to time, including exchange traded derivatives to neutralize sector specific market risk. This allows the the Portfolio Manager to enhance relative performance and remove the need to unnecessarily liquidate long term growth prospects in challenging liquidity circumstances. In support of the program objective, investment positions may also be established from time to time in the physical precious metals and the derivatives or proxies thereof.
The investment objective of the Class D Shares is to achieve attractive risk-adjusted returns that are not highly correlated to US equities markets during both bull and bear cycles. The product is designed to offer accredited investors a transparent and systematic investment solution that fits readily into their larger portfolio objectives.
The Portfolio Manager employs fully automated proprietary models to capture market returns and control risk on 70% of the portfolio. This systematic approach continuously monitors an ever-changing picture of supply and demand through a range of different durations and time series, whilst removing the negative behavioral influences associated with human interference.
Trends emerge and disappear. Organically, the models adjust to these ever changing market conditions as individual equities and sectors rotate in and out of favor. In parallel, dynamic volatility-based controls are employed that allow positions to develop naturally whilst controlling risk. The remaining 30% of the portfolio draws upon the same proprietary model but instead targets a more concentrated selection of the automated signals with the aim of achieving more aggressive returns. This approach is applied using a discretionary overlay of both fundamental and technical factors to trade management, while controlling risk via a market neutral approach.
PORTFOLIO MANAGER – DOUGLAS SEREDA
To provide superior growth of capital and income relative to the S&P/TSX Composite Total Return Index.
To achieve growth of capital and income by investing in a select portfolio of equal-weighted, industry-diversified, prime Canadian large and medium-cap securities. Larger capitalized companies render stability and a growing stream of dividends while medium cap businesses foster strong growth with innovations and corporate dexterity. Low turnover, reinvestment of dividends and periodic rebalancing characterize the management style. There will be no short-selling of securities nor will leverage be used.
When implementing security positions, we may write PUT options to generate additional income. Further income may be generated by periodically writing Covered CALL options against some of the underlying senior securities of the portfolio. Periodically, we may purchase PUT options on the S&P/TSX Index as a form of insurance against steep market declines.
Superior risk-adjusted returns through enhanced risk management strategies, the use of quantitative algorithms, bottom-up security analysis and value-add option strategies.
The investment strategy employs bottom up security selection with a view to macro-economic conditions. Diversification across industry and geographic regions plays an important role in portfolio construction. Prudent asset allocation is the corner stone of the investment strategy. The program’s investment strategy does not preclude it from being net-short but the investment program lends itself towards being heavily net-long at most times. A higher cash position would typically indicate a short or mid-term view that is cautious.