Ravensource Fund · TSX:RAV.UN
Ravensource Fund — Investor Presentation (September 2024)
26 slides from Ravensource Fund's investor presentation, September 2024
Slide 1: The 2024 Recirculation Opportunity
The 2024 Recirculation Opportunity Superior Performance Achieved by Thinking and Acting Differently September 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Stornoway Portfolio Management (“Stornoway”) for information purposes only and is not, and under no circumstances should be construed as, an advertisement for a public offering for the securities referred to herein. No securities commission or securi
Slide 3: 14+ Year Track Record of Outperformance
14+ Year Track Record of Outperformance Since July 2008, Ravensource has created 16% more wealth than the S&P / TSX for its investors ▪ A Ravensource investment has rewarded its long-term investors ❑ $100,000 invested in Ravensource when Stornoway became manager in July 2008 is now worth $284,269 ❑
Slide 4: The Ravensource Fund
The Ravensource Fund ▪ The Ravensource Fund (“Ravensource” or the “Fund”) is a publicly listed investment fund (TSX: RAV.UN) ❑ 1,296,075 units outstanding; Net Asset Value of $22.6mm / $17.4621 per unit as of September 5, 2024 ❑ Attractive fund level tax characteristics and eligible for registered a
Slide 5: The Ravensource Recirculation Opportunity
The Ravensource Recirculation Opportunity ▪ The Annual Recirculation provides investors a unique opportunity to purchase a significantly more units that are typically available offered on the market / TSX ❑ As a small fund with long-term investors, the opportunity to make a significant investment is
Slide 6: Ravensource Fund
Ravensource Fund STORNOWAY PORTFOLIO MANAGEMENT
Slide 7: Lost in the Sea of “Me-Too” Funds
Lost in the Sea of “Me-Too” Funds Investing today: more choices, but perhaps much less differentiation ▪ Today’s investors have access to more investment funds than ever. However, are these funds truly different? Offer investors diversification from their other investments? ▪ To find a beacon of dis
Slide 8: Consider Ravensource
Consider Ravensource Ravensource investors participate in strategies that are diversified from traditional investments 1. Publicly listed investment fund with a non-traditional and differentiated mandate ▪ We actively hunt for compelling investment opportunities in complex situations that are overlo
Slide 9: Not Your Typical Investment Portfolio
Not Your Typical Investment Portfolio Ravensource invests in opportunities off the radar screen of other investment funds ▪ We buy what others cannot / will not: ❑ e.g. unlisted defaulted bonds; private companies; direct financings to companies in insolvency / distress ▪ We own what few, if any, of
Slide 10: The Stornoway Way
The Stornoway Way STORNOWAY PORTFOLIO MANAGEMENT
Slide 11: Stornoway Principals: Expertise and Alignment
Stornoway Principals: Expertise and Alignment Career distressed and special situations investors, collectively own over 11% of Ravensource units Scott Reid, CFA Daniel Metrikin Principal, President & CIO Principal and EVP, Investments 35+ Years Experience 13+ Years Experience Founded Stornoway in 20
Slide 12: The Stornoway Way: “Parts and Labour”
The Stornoway Way: “Parts and Labour” Stornoway applies capital and expertise to help effect change, reduce risk and drive value creation ▪ When traditional investors encounter a company facing heightened uncertainty, they rush for the exits ❑ In contrast, Stornoway runs into the fire, looking for o
Slide 13: The Stornoway Edge
The Stornoway Edge We embrace complexity: we focus our diligence, expertise, and capital on opportunities where others are unable or unwilling ▪ Deep analytical expertise to evaluate securities across the capital structure Expertise ▪ In-depth knowledge of credit markets, restructurings and complex
Slide 14: Our Investment Process
Our Investment Process Parts and labour approach allows us to “connect the dots” between a company dismissed by the market and a quality asset of strategic value We buy at fire sale prices, reflecting the reality of a …and leverage our expertise to resolve the issues difficult, but fixable, situatio
Slide 15: Ravensource’s Investments
Ravensource’s Investments TORNOWAY
Slide 16: Ravensource’s Investment Strategies
Ravensource’s Investment Strategies One investment philosophy applied across three strategies – our “hunting ground”: 1 Distressed Opportunities ▪ Good companies which are in, or perceived to be in, financial distress typically due to high debt levels ▪ We buy existing securities and / or inject new
Slide 17: “The Carrot”: Significant Potential Upside
“The Carrot”: Significant Potential Upside Ravensource’ portfolio is concentrated in high conviction investments with significant potential upside ▪ Typically, our investment results are lumpy, concentrated on the occurrence of a major milestone (i.e. sale) ❑ Often for prolonged periods of time, the
Slide 18: Investment Portfolio – Recent Developments
Investment Portfolio – Recent Developments 2024 has been highly productive, with material developments across the portfolio Investment Milestones Achieved Our Investment Thesis and What it Means for Ravensource Investors ▪ PDVH sale process has ▪ On a PDVH Sale, Crystallex will potentially collect t
Slide 19: Investment Portfolio – Recent Developments
Investment Portfolio – Recent Developments 2024 has been highly productive, with material developments across the portfolio Investment Milestones Achieved What This Means For Ravensource Investors ▪ Gold Reserve potentially will receive cash of ~$7.50 / share from the proceeds ▪ Ravensource made a n
Slide 20: Terms, Historical Performance, Suitability Considerations, and Risk
Terms, Historical Performance, Suitability Considerations, and Risk
Slide 21: Fund Structure and Terms
Fund Structure and Terms The Ravensource Fund Closed-end trust Structure Eligible for registered accounts (e.g. RRSP, RESP, TFSA, RRIF) Trading Exchange & Symbol Toronto Stock Exchange / RAV.UN Management Fee 1% of net assets 20% of increase in net asset value above a 5% hurdle rate, and subject to
Slide 22: Historical Returns
Historical Returns Ravensource Fund's Monthly Returns (Net of All Fees; July 2008 - Sep 2024) Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2024 (1.50%) 2.24% 0.29% (1.98%) 0.95% 1.62% 0.57% 2.97% (1.47%) 3.62% 2023 3.35% 1.77% (2.71%) (4.82%) 0.52% 3.56% 8.65% (3.88%) (1.47%) 1.72% (0.64
Slide 23: Annual Redemption Right
Annual Redemption Right ▪ Ravensource units are listed on the TSX, where interested counterparties can freely buy and sell units ❑ Historically, Ravensource units have traded within 5% of net asset value ❑ However, secondary market is dependent on 3rd parties who may not offer sufficient liquidity f
Slide 24: Suitability and Risk Management Considerations
Suitability and Risk Management Considerations ▪ The primary characteristics of the Ravensource’s investment strategy include: ❑ Focused portfolio strategy • More concentrated / less diversified than a traditional investment portfolio ❑ Nature of investments • Distressed securities, alternative cred
Slide 25: Risks Mitigation at Ravensource
Risks Mitigation at Ravensource ▪ All investments present a risk of loss of capital ▪ However, we believe Ravensource’s investment process will moderate this risk through a careful selection of securities but risk of loss remains and there can be no assurance that our investment beliefs will be real
Slide 26: Contact Information
Contact Information Stornoway Portfolio Management Inc. 30 St. Clair Avenue West Suite 901 Toronto, ON M4V 3A1 www.StornowayPortfolio.com Scott Reid, CFA Daniel Metrikin, MBA President, Principal, and Chief Investment Officer Principal and EVP, Investments Tel: 416-250-2845 Tel: 416-250-2847 Email:
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