Front Street Strategic Yield Fund Ltd.
Market volatility over the past eighteen months has highlighted the need for investment strategies that seek to preserve capital in market downturns and to participate in rising markets. The Fund will obtain exposure to the Portfolio which is focused primarily on convertible debentures and warrants of Canadian issuers and, to a lesser extent, merger arbitrage. The Portfolio will be actively managed by Flatiron Capital Management Partners using interest yielding and hedging strategies designed to maximize risk adjusted returns and preserve capital. Over the course of an economic cycle, the goal is to generate consistent tax advantaged absolute returns on a quarterly basis with low volatility.
Flatiron employs top down macroeconomic and quantitative analysis to execute their investment strategy.
| Latest 09.02.10 | Previous 08.26.10 | Change ($) | Month's End 08.31.10 | Month-to-Date | |
|---|---|---|---|---|---|
| FS Strategic Yield | $9.7886 | $9.6128 | +0.1758 | $9.7305 | +0.6% |
| FS Strategic Yield (basic) | $9.7694 | n/a | +9.7694 | n/a | n/a |
Flatiron employs top down macroeconomic and quantitative analysis to execute their investment strategy.
The Flatiron Fund has generated 10 year annualized returns of 9.6% with a standard deviation of
1.3% and beta of 0.07 using substantially the same strategy. The following are other key performance
statistics of the Flatiron Fund:
Months Since Inception: 122
Profitable Months: 109 (89)
Sharpe Ratio of 1.48, indicating a relatively high return per unit of risk
Investment objectives:
(i) to provide holders of Equity Shares (“Shareholders”) with quarterly tax-advantaged cash
distributions initially targeted to be $0.125 per Equity Share ($0.50 per annum
representing an annual cash distribution of 5% based on the $10.00 per Unit issue price);
and
(ii) to maximize risk adjusted returns to Shareholders, consisting primarily of tax-advantaged
distributions, while preserving capital.
Investment objectives:
(i) to provide holders of Equity Shares (“Shareholders”) with quarterly tax-advantaged cash
distributions initially targeted to be $0.125 per Equity Share ($0.50 per annum
representing an annual cash distribution of 5% based on the $10.00 per Unit issue price);
and
(ii) to maximize risk adjusted returns to Shareholders, consisting primarily of tax-advantaged
distributions, while preserving capital.