Newsletter - Start of 2019


The first months of 2019 were rich in developments at Evovest.

Retrospective

At the company level, the team is greatly enriched with the arrival of Benoit Robert as Director of Business Development. The entrepreneurial and institutional finance experience of this founding member of Newcrest Capital adds significant depth to the team’s talents. Evovest has also been active in many forums:

  • In late January, Carl traveled to Paris on the occasion of the Forum Fintech along with other Quebec fintechs brought together by Finance Montreal and the Board of Trade of Metropolitan Montreal.
  • In February, with a rich diversity of young Montreal companies, we took part to the Grande Messe Mtl Inc.
  • At the Toronto Summit for Asset Management, Guillaume took part in a panel discussion alongside managers from RBC Asset Management and DoubleLine Capital to discuss data management issues at financial institutions.
  • Carl was invited by Investissement Québec to join ElementAI and Ticksmith to represent the Quebec Fintech ecosystem at the MorningStar Investment Conference in Chicago. His presentation earned him a second place in the pitch contest.
  • Finally, at the R conference in Quebec, Jérémie gave 2 days of training on the development of predictive models in the company of other members of .Layer, a collective of data scientists.

Finally, the highlight of this first quarter was undoubtedly the launch of the Evovest Global Equity Fund. The fund, which is administered by Majestic Asset Management, and where we act as the portfolio manager, allows accredited investors to gain exposure to global markets using our machine learning models.

You can follow our LinkedIn page for continuous updates on the state of our activities.

Performance of Strategies

Global - Long

Our Global Equity strategy is equally invested in an average of 100 securities across the globe. The strategy has produced a 3.2% return since its launch on January 31, the same as its benchmark, the MSCI World Equal Weighted, but with reduced volatility.

Benchmark* Evovest
Returns 3.2% 3.2%
Annualized Volatility 8.4% 6.8%
Risk-Reward 0.38 0.47
Beta 1.00 0.70
Max Drawdown -6.0% -4.1%
Capture Up 1.00 0.75
Capture Down 1.00 0.70
Daily Hit Rate NA 47.7%
Performance: 2019-01-31 to 2019-05-31.
Net of trading fees, before management and performance fees.
*Benchmark: MSCI World Equal Weighted CAD.

North America - Long

Our North American Equities strategy is equally invested in 50 US and Canadian equities on an equal basis between the two countries. The strategy has produced a 10.7% return since its inception. This performance compares favorably with the benchmark, which performed 6.5%.

Benchmark* Evovest
Returns 6.5% 10.7%
Annualized Volatility 11.5% 9.0%
Risk-Reward 0.57 1.19
Beta 1.00 0.66
Max Drawdown -11.5% -8.6%
Capture Up 1.00 0.73
Capture Down 1.00 0.58
Daily Hit Rate NA 52.7%
Performance: 2018-11-01 to 2019-05-31.
Net of trading fees, before management and performance fees. Seggregated Accounts, CAD.
*Benchmark: 50% TSXTR & 50% S&P500TR CAD.

North America - Market Neutral

The neutral counterpart to the North American strategy has achieved a return of 4.3% since its launch on November 1, 2018, while having a Beta close to 0. The strategy is equally invested in 50 long and 50 short US and Canadian equities.

Evovest
Returns 4.3%
Annualized Volatility 5.1%
Risk-Reward 0.85
Beta* -0.03
Max Drawdown -2.4%
Capture Up 0.06
Capture Down -0.05
Daily Hit Rate 52.0%
Performance: 2018-11-01 to 2019-05-31.
Net of trading fees, before management and performance fees. Seggregated Accounts, CAD.
*Beta computed against 50% TSXTR & 50% S&P500TR CAD.

Market Comment

Since the last quarter of 2018, our strategies have taken a more defensive stance against the market, favoring high dividend and low volatility stocks. This will have been beneficial over the period, despite the recovery experienced by the market at the beginning of the year.

For the current period, our strategies are now adopting a more optimistic positioning.

Past performance is not indicative of future returns.

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