Ravensource Fund · TSX:RAV.UN
Ravensource Fund — Investor Presentation (September 2023)
27 slides from Ravensource Fund's investor presentation, September 2023
Slide 1: The Recirculation Opportunity
The Recirculation Opportunity Superior Performance Achieved by Thinking and Acting Differently September 2023
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 generated 31% more wealth creation than the S&P / TSX ▪ Rewarding the long-term investor: ❑ $100,000 invested in Ravensource when Stornoway became manager in July 2008 is now worth $256,506 ❑ Long-term Wealth Creation: Ravensou
Slide 4: Executive Summary
Executive Summary Ravensource: a specialized and focused Fund that invests in opportunities most shy away from ▪ Ravensource Fund is a publicly listed investment fund with a highly differentiated investment strategy ❑ We invest in companies ripe for a turnaround or revaluation that other investors h
Slide 5: The Ravensource Recirculation Opportunity
The Ravensource Recirculation Opportunity Today’s investors can capitalize on the value that others are leaving behind ▪ As a small fund with long-term focused investors, Ravensource units generally trade in only modest quantities ❑ However, the “Annual Recirculation” – is an opportunity to buy more
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, less differentiation ▪ Today’s investors have access to more investment funds. However, are these funds truly different? ▪ To find a beacon of distinction, investors are often left questioning: ❑ Why am I paying fees to a fund manager
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 hunt for compelling investment opportunities in complex situations that are overlooked / sh
Slide 9: The Ravensource Fund
The Ravensource Fund Ravensource is a closed-end, publicly listed investment fund that seeks out complex and overlooked investment opportunities to create long-term wealth ▪ Closed-end trust, publicly listed on the TSX (RAV.UN) Fund Structure ▪ Net Asset Value (as of September 7, 2023): $16.6 millio
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 13% 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 ability to evaluate securities across the capital structure Expertise ▪ In-depth knowledge of credit markets, restructurings and complex in
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: Investments
Investments STORNOWAY PORTFOLIO MANAGEMENT
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 Our 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 value th
Slide 18: Not Your Typical Investment Portfolio
Not Your Typical Investment Portfolio We invest in opportunities where we can leverage our expertise to unlock value others can’t ▪ We buy what others cannot / will not: ❑ e.g. unlisted defaulted bonds; private companies; directly financings to companies in insolvency / distress ▪ We own what few if
Slide 19: Investment Portfolio – Recent Developments
Investment Portfolio – Recent Developments 2023 has been highly productive, with material developments across the portfolio Investment Milestones Achieved What This Means For Ravensource Investors ▪ US Treasury / OFAC amended ▪ On a PDVH Sale, Crystallex will collect the remaining ~$1.1bn Outstandin
Slide 20: Investment Portfolio – Recent Developments
Investment Portfolio – Recent Developments 2023 has been highly productive, with material developments across the portfolio Investment Milestones Achieved What This Means For Ravensource Investors ▪ To date, our investment has generated roughly 23% IRR / 2.0x money return ▪ Progress made in ▪ Contin
Slide 21: Terms, Historical Performance, Suitability Considerations, and Risk
Terms, Historical Performance, Suitability Considerations, and Risk
Slide 22: 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 23: Historical Returns
Historical Returns Ravensource Fund's Monthly Returns (Net of All Fees; July 2008 - Sep 2023) Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2023 3.35% 1.77% -2.71% -4.82% 0.52% 3.56% 8.65% -3.88% -0.34% 5.54% 2022 -2.48% 1.95% 6.78% -4.64% -4.62% -9.88% 6.26% -2.05% -11.30% 8.07% 2.68% -1
Slide 24: 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 25: 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 26: 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 27: 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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