Aventine Asset Management Inc.

The Aventine Total Wealth Strategy

“The number one goal of all investors should be to avoid large portfolio losses.”

Strategy Overview

The Aventine Total Wealth Strategy is our core portfolio for separately managed accounts following a “balanced” mandate. It is an actively managed, endowment-style portfolio that offers clients diversified exposure to a broad variety of markets and asset classes. The primary goal of this strategy is to outperform our peer index on a risk-adjusted basis while minimizing the potential for large portfolio losses.

Investment Objectives

  • Focus on strong risk-adjusted performance.
  • Low correlation and relative volatility.
  • Minimize potential for large portfolio losses.

Investment Approach

The investment approach employed by this strategy incorporates elements of both economic and fundamental analysis. We utilize macroeconomic research to assess the relative attractiveness of major investment markets and determine our portfolio allocation to broad asset classes such as cash, bonds, equities and alternative investments. Within each asset class we then apply our quantitative and fundamental research methods to identify specific opportunities for investment. To avoid large portfolio losses, we reduce market exposure in this strategy when we identify negative trend shifts in the areas of investor sentiment, market liquidity and economic data.

Suitability

The Total Wealth Strategy is a turnkey full portfolio solution for high net worth investors wishing to delegate their day-to-day investment decisions to professional management. This all-weather strategy has demonstrated its ability to provide consistent, positive returns across a variety of market environments and offers a proven answer to the challenges of high volatility, high correlation, and low returns experienced by many investors today. The minimum portfolio size for this strategy is $500,000.

Performance as of – February 28, 2019

Historical Trailing Investment Performance

3 MONTH6 MONTH1 YEAR2 YEAR*3 YEAR*INCEPTION*
3.5%-4.3%-3.8%2.2%5.3%7.0%

Calendar Year Investment Performance

YEARJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECYTD
2009-----2.7%5.3%-0.1%1.0%-0.5%2.6%2.5%14.2%
2010-1.0%2.1%2.6%1.6%-2.5%-2.5%3.0%-0.2%3.9%3.3%1.4%0.5%12.6%
20110.6%1.0%0.3%0.0%1.6%-0.2%-0.5%-0.8%-1.6%-1.5%0.1%0.0%-1.0%
20121.4%0.3%2.0%-0.2%-0.1%0.3%0.4%-0.2%-0.3%-0.7%-0.6%1.8%4.1%
20132.0%1.2%0.9%-0.8%0.3%-0.6%5.7%0.8%0.8%1.7%1.8%1.7%16.5%
20141.2%2.8%0.3%-0.1%0.5%1.4%0.1%1.4%-2.2%-0.6%0.8%-1.2%4.2%
20150.7%6.4%2.4%-0.9%3.3%-1.5%0.7%-4.4%-3.5%2.9%2.6%-0.7%7.8%
2016-4.2%-0.2%1.1%0.5%1.5%-2.2%2.5%1.5%0.4%-0.8%2.3%2.4%4.6%
20171.2%1.0%1.4%0.3%-0.5%0.7%0.4%-0.7%2.2%3.4%0.8%1.1%11.9%
20180.0%-0.9%-1.1%0.1%0.9%-0.2%0.7%0.1%-1.4%-4.9%-1.4%-1.5%-9.2%
20193.2%1.9%5.1%

“Total Wealth” is the Aventine Total Wealth Strategy Composite, launched June 1, 2009, Performance presented is total return, net of all fees and expenses. *Periods greater than one year are annualized.

Launched on June 1, 2009, the Aventine Total Wealth Strategy is managed by Jim Pottow, James Telfser and John Kim. Since inception the Strategy has consistently outperformed both active and passive comparables while realizing low correlation and volatility relative to equities. The Total Wealth Strategy targets returns of 8% per year or better with no peak-to-trough losses greater than 10%.

The below information is current as of February 28, 2019.

Performance Highlights

  • Annualized ROI of 7.0% Since June 1, 2009
  • Worst peak to trough loss of -9.3%
  • Beta versus Peer Index: 0.77
  • Annualized Alpha versus Peer Index: 2.9%
  • Annualized Sharpe Ratio: 0.92
Benchmarks