Waratah Capital Advisors’ New Liquid Alternative Mutual Fund
The Waratah Alternative Equity Income Fund gives investors access to a Group flagship strategy and star portfolio manager Jeannine LiChong.
The Waratah Alternative Equity Income Fund is the firm’s first liquid alternative mutual fund. It is a long-biased, actively managed portfolio of North American equities, with a focus on Canada. Further, the fund can use options and short positions for risk protection.
Jeannine LiChong’s HNW approach
Jeannine LiChong has the nickname “Queen of Cash Flow.”
Therefore, she believes in companies that are generating strong cash flows, have a good capital structure, and are not burdened with debt. She brings this same philosophy to managing portfolios for ultra-HNW (High Net Worth) families.
These families aim to preserve capital and grow their wealth so that it lasts for many generations. Her 23-year old track record has given her the status of an elite portfolio manager. She takes a conservative approach that is based on fundamentals and cash flow.
The Waratah Alternative Equity Income Fund will benefit from the same approach.
“We are thrilled to team up with her and her long-time portfolio manager partner, Adrian Wong, for this new offering,” said Blair Levinsky, Waratah Co-Founder, and Chief Executive Officer. “They both represent the core philosophy at Waratah; the generation of strong risk-adjusted returns with an intense focus on the protection of capital.”
Waratah Alternative Equity Income Fund
Accordingly, the fund will focus on investing in companies that exhibit strong cash-flow generation, a history of prudent capital allocation, and an ability to grow or maintain cash flows. Moreover, it targets attractive risk-adjusted returns through research-driven stock selection, with a focus on bottom-up fundamental research, and active portfolio construction.
Focused on capital preservation, the Waratah Alternative Equity Income Fund aims to compound returns over the long term, targeting absolute returns between 6% and 8% with less volatility than the S&P 500/TSX Composite. The portfolio also follows a cash-flow orientation, with a low correlation to dividend-payers.
Waratah Capital Advisors
Waratah is a Toronto-based asset manager specializing in alternative strategies. It has over $1.4 billion in assets from high-net-worth individuals, family offices, foundations, Canadian bank platforms, and pension funds. Founders and employees collectively represent over $100 million of the firm’s assets under management.