Rivemont has been appointed investment advisor to the Rivemont Crypto Fund, the Rivemont MicroCap Fund and the Rivemont Alpha Fund. Majestic Asset Management acts as manager of the three alternative funds and is responsible for their day-to-day operations, while Rivemont is responsible for managing the investment portfolio of these funds. The three alternative funds may be used in the construction of Rivemont clients’ portfolios when, in Rivemont’s opinion, these investment strategies are suitable for them. Units of the Fund are available under exemptions from the prospectus requirements in accordance with the National Instrument 45-106 Prospectus and Registration Exemptions and are, therefore, only available to qualified investors.
The Rivemont Alpha Fund is an alternative fund with the objective to provide investors with positive returns in all market conditions while maintaining a low level of correlation to traditional asset classes such as equities and bonds. The fund is available to clients of Rivemont and to investors through their advisor or broker.
The Fund exclusively hold securities traded on American and Canadian stock exchanges. The Fund is a long/short type fund, whereby the investment managers seeks to buy (long positions) the stocks having an appreciation potential and sells short (short positions) the stocks showing a depreciation potential.
The Fund is well suited for high net worth investors seeking to effectively diversify their portfolios in an investment offering a high return while demonstrating a potential for positive returns in down markets. An allocation of a balanced or stock portfolio to the Fund enables it to exhibit a better return over time while making it more robust in times of market stress and market crises.
The Fund is easily available to outside advisors and brokers through the Fundserv platform.
We believe that the stock price does not always reflect its intrinsic value: it is influenced by a number of factors, including several cognitive biases on the part of investors.
It is possible to make investment decisions based on these recurring behaviors.
The markets are not efficient.
The trend of stock price last longer than we might think.
It is important to maintain an healthy diversification.
It is essential to pre-establish sound constraints in order to properly manage risk.
Our investment methodology for stock selection and portfolio construction is entirely top-down. As a first step, we will analyze the market as a whole, then the behavior of the activity sectors and finally we will settle our choice on the most attractive securities. We use a set of well-defined rules for the purchase and sale of securities, which enables us to eliminate all cognitive and emotional biases from the management of your portfolio.
One of the great advantage of our methodology is that it enables the Fund to be heavily underweighted and likely negatively exposed to equities when the stock market drop or crash, which can not only prevent significant losses but also provide an opportunity for positive returns in a challenging market environment.
Bullish or bearish markets? Since when?
Which sectors display the greatest upward or downward potential?
Which securities are prone to have the best return?
The Rivemont Absolute Return Fund contributes in five ways to a diversified or stock portfolio.
The strategy offers a positive return during up and down markets
The fund behaves particularly well during down markets
Positive monthly return when the S&P/TSX Composite Index is down.
Low correlation to traditional asset classes.
Negative correlation against the S&P/TSX Composite Index.
Per its characteristics enables a portfolio to have a better total return while maintaining the same level of risk.
Dynamic adjustment of the net exposure to the markets based on their attractiveness.
The methodology used is complementary to the one used by most investment managers.
Stay up to date!
Receive financial newsletters by email:
Volume 13 Number 4
The three months ended on September 30, like the previous two quarters, gave investors a rough ride. A number of macroeconomic factors were aligned, including inflation that was higher and more persistent than the major central banks had anticipated.Read more >