Risk averse philosophy is embedded in a process driven approach to investing.
Our process can be distilled into the following:
- Determine quality of the business, management and financials
- Estimate value drivers following analysis of the company and sector
- Evaluate risk factors and earnings sensitivities
- Calculate intrinsic value of the entity
- Determine a discount to intrinsic value before investing
- Wait patiently for the market to deliver our price to us.
- Goal is to be fully invested but are more than willing to hold cash when we cannot find enough investments that meet our criteria
- Hold a concentrated portfolio with a maximum of 35 names
- Limit investments to companies that meet our investment quality criteria
- Avoid quantitatively cheap business that do not have other significant positive industry, management, financial and governance attributes
- Focus on a company’s cash generation and capital productivity. Stewardship of free cash is critical
Our Model Portfolio will demonstrate how including a few well-chosen international and emerging market equities can enhance the returns on the portfolio while limiting risk. Our total international exposure is 20%, of which a portion is allocated to emerging markets in varying proportions.
VAM’s primary return goal is to generate an absolute positive return in excess of inflation over a 3-5 year time horizon, i.e. an average market cycle.
- We believe that by focusing on quality companies we accrue attractive returns relative to benchmarks over the long term.
- The odds of earning superior returns improve by investing only when we purchase these quality companies at a discount to our estimate of its intrinsic value.
Implemetation, Access and accountability
- Assets held in clients name and protected by Canadian Investor Protection Fund (CIPF)
Cash and securities held by an independent custodian (Raymond James)
- Registered (RRSP & TFSA)/ Non-registered account opened at Raymond James Ltd.
- Cash or securities easily transferred from other Banks or Brokers
- Client has 24/7 online access to composition of portfolio
- Custodian sends monthly statements directly to client
Vulcan only has discretionary authority over portfolio allocation
- Vulcan allocates funds held in account to cash or securities consistent with its model portfolio(s)
- Vulcan has no ability to access amounts being transferred into or out of account
- Authority over deposits and withdrawls remains with the client
Vulcan sends quarterly updates to clients
- Performance summary
- Market views and portfolio commentary
*Disclosure around portfolio performance
- Performance includes the time period prior to May 16 2014, before Vulcan was granted registration as a portfolio manager (PM)
- Vulcan uses the same fully funded investment portfolio to calculate returns pre and post registration as a PM. There has been no change in the investment strategy since inception
- Aaron Chaze has managed the portfolio since inception
- The portfolio benchmar comprises 70.0% MSCI AC World Index, 30.0% DEX Universe Bond Index
- We also compare against the MSCI AC World and the TSX Composite Index since the investment strategy is global and since clients are Canadian dimiciled
- Returns are gross of fees
- Past Performance Does Not Guarantee Future Performance
1-57 Lakeshore Road East