Aventine Asset Management Inc.

Aventine U.S. Equity Strategy

Strategy Overview

Aventine U.S. Equity (“AUSE”) seeks long term capital growth through an active, value plus catalyst investment strategy.  The Fund invests in a concentrated portfolio of U.S. value companies whose average market capitalization is typically in excess of $5 billion.

Investment Objectives

  • Attractive returns on both an absolute and relative basis.
  • Reasonable volatility.
  • Capital preservation.

Investment Approach

AUSE follows a multidisciplinary “Active Value” investment approach which seeks to invest in undervalued, catalyst-rich companies that are in the midst of positive fundamental change and experiencing an increase in market support.  The Fund will primarily own long positions in U.S. companies but it may also invest in the shares of other Canadian and international issuers and hold short positions.  We may use options and cash management to reduce volatility and manage downside risk.

Investor Suitability

This strategy is ideally suited for investors seeking U.S. equity exposure that is unconstrained by the sector weights of the broader U.S. index, and who are willing to accept moderate volatility.  AUSE is focused on absolute returns and may utilize various techniques such as short selling and options to limit downside exposure to declining markets.  This strategy is an excellent complement for investors who hold substantial exposure to large cap U.S. stocks or broad market U.S. Index ETFs.

Performance

Launched on January 1, 2017, the Aventine U.S. Equity Strategy is co-managed by Jim Pottow and James Telfser. The objective of the Aventine U.S. Equity Strategy is to provide a long-term capital growth. The Strategy targets an annualized return on investment in excess of 10%, net of all fees, over the market cycle.

The below information is current as of September 30, 2018.

Performance Highlights

  • Annualized ROI of 13.9% Since December 31, 2016
  • Beta versus Benchmark: 1.15
  • Correlation versus Benchmark: 0.80
  • Sharpe Ratio: 1.28
  • Annualized Volatility: 10.9%