Odd Duck or Rare Breed?
Someone said that one definition of an odd duck is "someone who enjoys that which others seem to despise". You have to love being different. Given we are not equity focused at Auspice, we are by default an odd duck. But it begs the question are we a Rare Breed?
When we created Auspice, we intended to provide a product suite that was different than typical managers in our sector. We are one of the few managers in Canada that have a commodity background and are focused on strategies outside of the resource and/or equity sector. We are proud of that.
For example, taking hedge funds and commodity products into the retail ETF space, pure energy ETFs (Canadian Natural Gas and Crude) are odd duck approaches. Even our flagship fund, a quantitative rules-based multi-strategy is an odd duck in Canada. However, on closer inspection it is a commodity tilted approach highlighting our unique backgrounds within energy commodities at an energy major and a Canadian bank - it is our expertise and perhaps demonstrates we are a rare breed.
Yet, while commodities were a popular place to be from 2001 to 2010, this changed with the relentless charge of the equity market in the last 8 years where it worked to put your client in equities and close your eyes. But that is changing. People are scared. The concern over the stock market is real and warranted. Moreover, increasing interest rates and volatility, while concerning for many, is actually more like normal and this is an environment we historically thrive on. All of a sudden being different is cool again.
We are seeing a shift in interest to commodities for good (great) reason. Historically, the sector is undervalued versus equities - very stretched. Moreover, like equities, commodity volatility has been low but this has been increasing. We love it.
As such, we will remain focused outside of equity and creating products that are complimentary to typical portfolios. We do not guarantee returns on every short, quick market pullback - the 10% dive in the first few days of early February is an example. What we focus on providing returns outside stocks from trends that develop on sustained corrections and volatility. That is our domain of experience. We overweight commodities but don't ignore currencies, interest rates/bonds and yes, even equity indices. We simply do not pick stocks.
Are we an odd duck? Perhaps. But remember, odd ducks only seems odd from a certain perspective. Everyone has a community - it just may not be your community. What you are looking for is the Rare Breed amongst the Odd ducks. Do something different than the pack, then do it different than your peers, do it better. And love it.
If any of this appeals to you, give us a call.
IMPORTANT DISCLAIMERS AND NOTES
Futures trading is speculative and is not suitable for all customers. Past results is not necessarily indicative of future results. This document is for information purposes only and should not be construed as an offer, recommendation or solicitation to conclude a transaction and should not be treated as giving investment advice. Auspice Capital Advisors Ltd. makes no representation or warranty relating to any information herein, which is derived from independent sources. No securities regulatory authority has expressed an opinion about the securities offered herein and it is an offence to claim otherwise.
Auspice Managed Futures Excess Return Index (AMFERI): The Auspice Managed Futures Index aims to capture upward and downward trends in the commodity and financial markets while carefully managing risk. The strategy focuses on Momentum and Term Structure strategies and uses a quantitative methodology to track either long or short positions in a diversified portfolio of exchange traded futures, which cover the energy, metal, agricultural, interest rate, and currency sectors. The index incorporates dynamic risk management and contract rolling methods. The index is available in total return (collateralized) and excess (non-collateralized) return versions.
Returns for Auspice Managed Futures Excess Return Index (AMFERI) represent returns calculated and published by the NYSE. The index does not have commissions, management/incentive fees, or operating expenses.
The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. Price Return data is used (not including dividends).
For U.S. investors, any reference to the Auspice Diversified Strategy or Program, “ADP”, is only available to Qualified Eligible Persons “QEP’s” as defined by CFTC Regulation 4.7.
For Canadian investors, any reference to the Auspice Diversified Strategy or Program, “ADP”, is only available to “Accredited Investors” as defined by CSA NI 45-106.