Advised Funds
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 Long Short Fund is an alternative fund that aims to offer investors positive returns in all market conditions while maintaining a low correlation with traditional asset classes such as stocks and bonds. The Fund is available to Rivemont clients and investors through their advisor or broker.
The Fund’s holdings include equity securities traded on U.S. and Canadian markets. The Fund is long/short, meaning that the manager buys (long positions) securities of companies with upside potential, and sells short (short positions) securities of companies with downside potential.
The Fund is particularly well-suited to affluent clients seeking to diversify their portfolios in an investment with the potential for positive returns in bear markets. By allocating to the Fund for a diversified or equity portfolio, the portfolio can potentially outperform over time, while being better able to weather periods of market stress and crisis.
The Fund is readily available to external advisors and brokers via 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.
Markets Analysis
Bullish or bearish markets? Since when?
Sectors Analysis
Which sectors display the greatest upward or downward potential?
Securities Analysis
Which securities are prone to have the best return?
The Rivemont Absolute Return Fund contributes in five ways to a diversified or stock portfolio.
Absolute Return
Absolute return: The strategy offers the potential for positive returns in both bull and bear markets.
Target positive returns in bear markets.
Positive monthly return when the S&P/TSX Composite Index is down.
Diversification
Low correlation to traditional asset classes.
Negative correlation against the S&P/TSX Composite Index.
Risk/return Profile
Its characteristics make it possible to increase a portfolio’s total return while maintaining the same level of risk.
Flexibility
Dynamic adjustment of the net exposure to the markets based on their attractiveness.
Complementarity
The methodology used is complementary to the one used by most investment managers.
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Volume 16 Number 1
I have delayed writing this newsletter for as long as I could so as to include the latest geopolitical events (but still before tariffs unfortunately). In the coming years, they will have major impacts on optimal investment strategies. For 15 years now, Rivemont’s objective has been to build portfolios where the primary goal is to maximize returns for a given risk. In other words, we are not taking additional risks to achieve better results, quite the contrary.
Read more >Volume 15 Number 4
As I write this on October 20, 2024, major indices have reached historic highs, and gold is at its all-time highest price. We’re in what is called an all-assets bull market. These periods are relatively rare, and one of the objectives of a portfolio manager like Rivemont is to take full advantage of them. And I can tell you that our clients are greatly benefiting from this positive period.
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