QVEST HIGH CONVICTION PORTFOLIOS
QVest is managed by seasoned investment professionals, who believe in high conviction investing. Our value-add is understanding investment opportunities exceptionally well and applying active management to these positions. An adaptive mindset is key in this fast-changing world, and opportunities can come from a deeper understanding of this environment, and as such, macro-forces matter to the choices, as a good macro base can provide stimulus to certain companies and sectors. Risk management is also a key trait of QVest, for this the proactive nature of understanding adaptive forces helps us. The opportunity lies in the combination of psychology and economics; the psychology of not being led by crowd mentality and the economics of understanding the drivers that matter in the economy. All these is then applied to a high conviction set of companies that can take advantage of psychological mistakes and economic opportunities.
ACCESS TO SOMETHING DIFFERENT
As the investment world creates more and more confusion, QVest offers simplicity, with portfolios comprised of a small number of companies that are well run, and that have a potential catalyst for distinction. It’s better to know a few names very well, rather than a many names you know little about. Our constant research means that these few are never static. As new opportunities are presented, they must be better than the existing choices if they are to replace them.
INVESTMENT APPROACH – ADAPTIVE AND DISCIPLINED
Our investment approach accepts that a changing world will mean the list of high-quality companies with compelling potential for capital appreciation will change. The choice of opportunities is unconstrained. We look at all available information to understand the global dynamics and the risks and opportunities they provide. This then allows us to make a set of sound investment choices. In depth analysis is then done to understand the catalysts both near and long term that will drive the business model of these companies. We constantly seek new information to become better informed than our competitors and to have an early understanding of what is occurring and why it is important to investors.
This approach of blending top-down macroeconomic analysis and theme development with bottom-up concentrated stock selection sets us apart from other investment managers.
Concentrated Investment Quotes:
"Wide diversification is only required when the investors do not understand what they are doing” – Warren Buffett.
“When you own too many companies, it becomes nearly impossible to know your companies. In stead of having a competitive advantage, you run the risk of missing things” – Morningstar (USA).
“Look at George Soros, Carl Icahn, Warren Buffett, what do they have in common? They have concentrated investments. You need ruthless discipline, if the reason you invested changes, get the hell out and move on” – Stanley Druckenmiller.
"I like to understand why and how people think, how organizations work and how political systems govern. I enjoyed playing chess when I was a kid, and now I feel like I'm playing chess on a four-dimensional chessboard. Macroeconomic forces, political, social, industry, individual-company, trying to make investment sense through all these factors." – Tom Marsico.
WHAT IS UNIQUE ABOUT THE Q PORTFOLIOS?
QVest has a family of concentrated portfolios generally consisting of between 8 to 12 of the best companies that the QVest team determines. It is also a very active portfolio in that changes can be made rapidly depending on opportunities and risk assessments. Diversification is achieved through industry sector allocation.
Unlike other portfolios there is no requirement to be fully invested. The QVest team can manage cash weightings freely to mitigate downside risk.
These portfolios are only available via pool funds issued by offering memoranda and to accredited investors as defined and permitted under applicable securities regulations. They will not be available to discount brokers or the general public.
THE QVEST PORTFOLIOS AT A GLANCE
1. Q U.S. TEN *
This strategy will normally hold a core position in common stocks of between 8 and 12 large companies primarily in the US. In selecting investments, the primarily driver utilizes a fundamental investment approach that emphasizes such factors as quality of companies with compelling potential for long-term capital appreciation. The fundamental investment approach combines “top-down” macro- economic analysis with “bottom-up” company and security analysis to identify stocks of high-quality companies with compelling potential for long-term capital appreciation. Part of this fundamental “bottom-up” research may include visits to company management.
* Formerly sub-advised by Marsico Capital Management LLC., and known as the Q Marsico Ten.
2. Q MARSICO GLOBAL FOCUS**
** QMG has been terminated, with anticipated closing by July 31, 2023.
3. Q THETA
The investment objective is to achieve enhanced equity income by investing primarily in large US equities, select non-US equities and related options. The Fund will normally hold core positions of options and their underlying securities with up to 30 companies and ETFs. Active management utilizes fundamental, quantitative and technical analysis in security selection. In addition, a qualitative approach is also employed to find opportunities in mispriced assets and growth companies and to develop investment themes.
4. Q FOCUS INCOME
As a fixed income portfolio, it aims to provide investors with superior investment returns over the long term, emphasizing income, capital preservation and potential for capital appreciation. The investment objective calls for investments primarily in North American public and private debt, exchanged traded funds, corporate and high yield bonds, global sovereign and investment grade bonds, and may utilize investment funds and ETFs. To generate returns, a variety of strategies are employed: active duration management, credit quality rotation, shifts along the yield curve, global opportunities and taking advantage of market anomalies and short-term trends.
5. Q REAL ESTATE ASSET INCOME
This real estate strategy seeks to provide investors with superior investment returns over the long term, emphasizing income, and capital preservation. The portfolio is managed to generate returns through a variety of strategies and will invest primarily in: residential mortgages, commercial mortgages, construction loans and packages or pools of real estate related assets (e.g. CMHC, etc.) The focus is on hard assets with ability to be exposed to soft assets in early development stages that are categorized as equity. It may also invest in corporate and high yield bonds in the real estate sector.
6. Q FSI ESTATE ASSET INCOME
To achieve the investment objectives, the Fund will invest exclusively in securities offered by investment vehicles managed by principles of Financial Square Inc., which in turn will invest primarily in residential mortgages.
7. Q LM CREDIT PRIVATE DEBT
The Fund has been created to invest exclusively in securities offered by investment vehicles managed by principles of the LM Credit Inc. To achieve the investment objectives, the Fund will invest primarily in various forms of unsecured and may have secured debt owed by Canadian consumers.
The QVEST difference is distinguished by:
our experience, our people and our approach.