Newsletter - Fall 2019


Here are the latest developments at Evovest. A year-end 2019 that sees North American strategies reaching their first year of track record.

Retrospective

In recent months, we have had a sustained presence in various forums to increase our visibility while adding depth to our operations.

  • In September, we were pleased to welcome Saeed Marzban, PhD student at HEC Montréal. During his eight-month tenure, he will focus on the opportunities offered by reinforcement learning methods.
  • Jérémie accompanied the Montreal delegation, organized by Finance Montréal, to the fintech forum in Boston. He was also invited as a panelist for an artificial intelligence ideation seminar organized by SeedAI on behalf of the Bank of Canada.
  • Evovest participated in the first webinar organized by SumZero, which describes itself as the largest community dedicated to investors. During this webinar, Carl and Jérémie had the chance to introduce our investment process to several stakeholders in the field. See the recording of this session.
  • After being approached by a major player in the United Arab Emirates, Carl traveled to the region in late September to explore the potential of establishing a presence in Dubai and Abu Dhabi.
  • In recent months, we have also initiated the implementation of AlphaCCO software for our compliance needs; a tool that improves our productivity for maintaining our regulatory responsibilities.
  • Finally, Evovest hosted a booth at Fintech Canada Forum organized by Finance Montreal, an opportunity to make several promising meetings.

At the end of November, we will move to the Montreal FinTech Station located at 4 Place Ville-Marie. We are proud to join this ecosystem.
You can follow our LinkedIn page for continuous updates.

Strategy performance

Global - Long (2019-01-31 to 2019-10-31)

Our Global Equity strategy is equally invested in an average of 100 securities across the globe. The strategy has produced a 10.4% return since its launch on January 31, slightly better than its benchmark, a basket of the world’s largest capitalization, but with reduced volatility.

Benchmark* Evovest
Returns 9.0% 10.4%
Annualized Volatility 8.8% 7.8%
Risk-Reward 1.03 1.33
Max Drawdown -7.1% -4.4%
Beta 1.00 0.78
Capture Up 1.00 0.82
Capture Down 1.00 0.75
Daily Hit Rate NA 50.5%
Net of trading fees, before management and performance fees.
*Benchmark: equal-weighted portfolio of the world's largest capitalization in CAD (1500+ holdings).

North America - Long (2018-11-01 to 2019-10-31)

Our North American Equities strategy is equally weighted in an average of 50 securities, split equally between US and Canadian equities. The strategy has produced a 19.1% return since its launch last November. This performance compares favorably with the benchmark which performed at 13.2%.

Benchmark* Evovest
Returns 13.2% 19.1%
Annualized Volatility 10.7% 9.2%
Risk-Reward 1.23 2.07
Max Drawdown -11.5% -8.6%
Beta 1.00 0.75
Capture Up 1.00 0.83
Capture Down 1.00 0.70
Daily Hit Rate NA 52.3%
Net of trading fees, before management and performance fees. Segregated Accounts, CAD.
*Benchmark: 50% TSXTR & 50% S&P500TR CAD.

North America - Market Neutral (2018-11-01 to 2019-10-31)

The North American strategy’s neutral counterpart has achieved a return of 7.1% since its launch on November 1, 2018, while having a Beta close to 0. The strategy consists of an average of 50 long and short positions, equally divided between US and Canadian securities.

Evovest
Returns 7.1%
Annualized Volatility 5.7%
Risk-Reward 1.24
Max Drawdown -4.9%
Beta -0.02
Capture Up 0.11
Capture Down 0.01
Daily Hit Rate 52.7%
Net of trading fees, before management and performance fees. Segregated Accounts, CAD.
*Beta computed against 50% TSXTR & 50% S&P500TR CAD.
Past performance does not guarantee future results. You should not rely on any past performance as a guarantee of future investment performance. Investment returns will fluctuate. Investors are cautioned that data based on less than five years’ experience may not be sufficient to establish a track record on which investment decisions can be based.

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