INVESTMENT OBJECTIVES & STRATEGY
The Fulcra Credit Opportunities Fund generates consistent absolute returns through investing in bonds, loans and other fixed income securities but may hold equity and other equity-like securities. The Fund’s investment objective is to generate superior long term, risk adjusted investment returns. Our preference for bonds stems from both their seniority in the capital structure and their term certainty. Equity like returns, without equity like risks.
Our size gives us a unique opportunity to be involved with companies underneath the radar and focus of many larger funds. We believe a fairly concentrated portfolio of companies provides the best long-term results. We are ratings agnostic, non-levered and currency hedged. We manage the portfolio to a consistently short duration to avoid the negative effects of interest rate fluctuations and since we are highly opportunistic, we are rarely fully invested, keeping cash or near cash for inevitable opportunities that arise from market dislocations, ratings events or merger and acquisition situations.
as of November 29th, 2019
*Returns are based on class B unit. Inception July 2009
*Net of fees and includes reinvested distributions
CUMULATIVE RETURN SINCE INCEPTION (CLASS B UNIT)
Quality Yield are short duration investment grade and “hard” yield to call high yield bonds.
Core investments are bonds with little interest rate risk and there is a definable asset that protects us in the unlikely situation that the cash flow generation capability of the business is compromised.
Event Driven bonds are associated with a company that is currently or prospectively pursuing an asset divestiture or merger/acquisition path.
Opportunistic Value bonds were, in most cases, purchased well below par and issued by a company that, in our opinion, can successfully recover from the situation that created the opportunity.
Deep Value bonds are those where the probability of bankruptcy or a consensual capital structure restructuring, and owning the pro forma equity, is reasonably high.
FULCRA CREDIT OPPORTUNITIES FUND VS. COMMON INDICES
Source: Bloomberg, BlackRock iShares | ETFs are traded in Canadian dollars | Assume reinvestment of distributions at the close price of the ex-div date
*Returns are based on class B shares. Inception July 2009
*Ner of fees and includes reinvested distributions
*Risk-free rate = 3M CDOR
*Current yield of the ETFs are the respective distribution yield, defined as annualized most recent distribution divided by NAV