| Venator Catalyst Fund Performance (net of fees) | |||||||||||||
| Jan | Feb | March | April | May | June | July | Aug | Sept | Oct | Nov | Dec | YTD | |
| 2008 | 0.8% | 0.4% | 0.3% | -0.5% | 0.8% | -0.6% | -1.3% | -1.5% | 0.1% | 1.8% | 1.0% | 3.3% | 4.6% |
| 2009 | 3.3% | -0.7% | -0.4% | 1.5% | 1.5% | 1.5% | -0.5% | 2.2% | 2.5% | 0.2% | -0.2% | 0.9% | 12.6% |
| 2010 | 3.4% | 0.8% | 1.4% | 1.7% | -1.0% | 0.3% | 0.7% | -1.0% | 3.4% | 0.5% | 2.8% | 4.0% | 18.2% |
| 2011 | -2.0% | 2.0% | 0.9% | 2.0% | 2.0% | 1.0% | 1.0% | -2.5% | 0.4% | 3.2% | 2.1% | 0.8% | 11.3% |
| 2012 | 2.1% | 1.0% | 0.95% | 0.39% | 4.57% | ||||||||
Investment Philosophy of the Catalyst Fund:
The Fund will primarily invest long in undervalued securities including stocks, bonds and commodities that the Investment Advisor believes are undervalued, and will short sell those that are overvalued and which suffer from deteriorating fundamentals or other risks. The relative weightings of long and short positions in the Fund will be optimized to provide the best absolute return in changing market conditions. The focus of the Fund’s investments will be on North American-listed companies, including but not limited to information technology, telecommunications, healthcare, professional services, energy/mining services, construction, consumer discretionary, retail, steel, housing and media/entertainment. Although it is anticipated that the majority of the Fund’s investments will be in North American listed equities, this will not preclude investments in foreign markets if suitable opportunities arise.
The Fund may engage in special opportunities from time to time to earn its return, including investing in event-driven situations such as initial public offerings, convertible debt & equity offerings, corporate restructurings, mergers, hostile takeovers or other material events.
Short selling and hedging strategies will be focused on companies with market capitalizations in excess of $100 million. It is currently anticipated that a significant percentage of short selling will involve a combination of companies with poor to average fundamentals trading at high valuations, and companies whereby the Investment Advisor believes that current estimates exceed likely future results.
Risk Tolerance/Risk Management:
An investment in this fund should be for investors with a high degree of risk tolerance. This will be a long-biased fund, with a minority weighting to short opportunities where we expect to turn a profit, and the majority of hedging focused on reducing market risk.
Winner: Canadian Hedge Fund Awards Best 3-Year Annualized Sharpe Ratio (2011)
