Our products

Overview

Authentic’s Beliefs

  1. Investment opportunities vary as market forces change.
  2. A payoff is available to the experienced who utilise thoughtful investment strategies and timely market exposures.
  3. A flexible, proactive approach to investing can deliver superior portfolio performance.
  4. Clients appreciate transparency & honesty.

Our Process

  1. Evaluate global market conditions on a collaborative basis.
  2. Develop our outlook on a unified platform.
  3. Actively identify & assess investment opportunities.
  4. Anticipate change to capture value as market conditions evolve.
  5. Dynamically tune Client portfolios to opportunities and risks.
  6. Constantly re-evaluate our assumptions, anticipations and outlook as markets evolve.

Inspired Global Investing

Authentic’s universe of capabilities is broad and deep. We pursue investment opportunities in a wide range of securities globally, including equities, fixed income, currencies, derivatives and commodities.

Subject to the portfolio parameters, we apply a mix of core holdings, cash and timely exposures to various instruments to capture and hedge changing perceptions of risk and value.

Our Product Suite

We have organized our investment strengths and strategies into product groupings, each of which focuses on delivering value in an explainable manner. Our products are really a suite of product-as-a-service offerings, that we refine for suitability and consistency with the objectives and risk parameters of each Client.

Our product-as-a-service suite representing Client portfolios to date is as follows:

    1. Global Equity
    2. High Income
    3. Equity+Income
    4. Global Macro
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Global Equity

Objective: Usually 5 to 6%, ideally with less volatility than the domestic equity index over a market cycle.

Composition: Selective portfolios of typically 10 to 30 international stocks with highly variable cash allocations based on opportunities and risks.

Suitability: For institutional and private wealth investors seeking capital appreciation with medium risk and long term horizon. Suitable for core Investment accounts and retirement savings accounts. Minimum account size: $100,000 to $250,000. 

Edge: Capital is allocated to the best global opportunities to seek an attractive return per unit of risk. Both top-down and bottom-up perspectives are considered, based on our proprietary global views, investment themes, sector preferences, and company analysis. There is a rationale for each and every holding in the portfolio.    

Characteristics: Stock selection tends to favour growth at a reasonable price, which may include both large and smaller capitalization companies. Sector weights usually differ substantially from benchmarks, tending to overweight technology, health care, and telecommunications, with varying exposures to consumer cyclicals, industrials, consumer non-cyclicals, and financials, and limited to no exposure to utilities, basic materials, and energy. Geographically, investments have tended to favour the United States and Europe, followed by Asia, with limited exposure to emerging markets.    

Dynamics: Holdings are typically intended to be held for the longer term, so turnover can be quite low. Trades are predicated by a change in market conditions and/or a change in our investment thesis. Cash is a strategic asset, with active allocations when deemed appropriate to mitigate downside risks and await better future opportunities and pricing. 

Investment example: An investment is made to gain sector exposure in anticipation of a shift in relative industry valuation, due to changes in economic perceptions and their anticipated impact on the specific company’s sales and margins.

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High Income

Objective: Usually circa 10%, with low correlation to the domestic equity index over a market cycle. 

Composition: Selective portfolios typically investing in 10 to 30 strategies utilizing stocks, options, bonds, futures, commodities. 

Suitability: Institutional and private wealth investors with medium risk and term horizon. An innovative approach, it can be a good diversifier for clients that have long portfolios of assets already. Minimum account size: $500,000 to $1,000,000.

Edge: Unique approach to high income generation through evaluation of corporate and macro events and positioning. 

Proprietary event-driven investing to:

  1. monetize the time value of the evolution of deals involving merger & acquisition arbitrage,
  2. capitalize on the mispricing of securities in catalyst-driven situations, and
  3. produce high convexity payouts during systemic events and turbulent environments  through idiosyncratic opportunities and special situations.   

Characteristics: Portfolios consist of a selection of discrete event-driven deals typically consisting of stocks and related options. At the portfolio level, positions in equity index, commodity and other derivatives may be in place to further reduce correlation to the stock market, mitigate downside risk, and improve the risk/reward of volatility changes.

Dynamics: Each event-driven opportunity is evaluated on its own merits for consideration in the portfolio. The first focus for the sizing of each deal is the downside risk. Since each deal has a unique profile, they provide some diversification (orthogonality) to existing positions. Nevertheless, positions may be put on at the portfolio level to reduce risk and market exposure. In addition to corporate opportunities, strategies may seek to profit from macro convexity and special situations that can produce high convex payouts during turbulent environments.

Investment example: The time value of a deal is monetized by positioning in a merger deal between two companies, upon completion of analysis evaluating the nature, likelihood, final price and timing of completion. A portion of this carry is put to work into compelling highly asymmetric mispriced opportunities.

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Equity+Income

Objective: Usually a blended 7 to 8%, with improved characteristics to Global Equity on a stand-alone basis. 

Composition: Selective portfolios consisting of a combination of our Global Equity and High Income products. The proportions are flexible with the use of margin, such as 100% Global Equity + 40% High Income.  

Suitability: For institutional and private wealth investors seeking a blend of capital appreciation and income, with medium risk and longer term horizon. Investment accounts with margin. Minimum account size: $500,000 to $1,000,000.

Edge: This product offers a unique diversifying combination of active equity exposure and high income from corporate and macro event positioning. 

For the Global Equity portion, capital is allocated to the best global opportunities from both a top-down and bottom-up perspective, based on our global views, investment themes, sector preferences, and company analysis. There is a rationale for each and every holding in the portfolio.

For the High Income portion, a proprietary approach to event-driven investing takes place to:

  1. monetize the time value of the evolution of deals involving merger & acquisition arbitrage,
  2. capitalize on the mispricing of securities in catalyst-driven situations, and
  3. produce high convexity payouts during systemic events and turbulent environments through idiosyncratic opportunities and special situations.   

Characteristics: For the Global Equity portion, stock selection tends to favour growth at a reasonable price, which may include both large and smaller capitalization companies. Sector weights usually differ substantially from benchmarks, tending to overweight technology, health care, and telecommunications, with varying exposures to consumer cyclicals, industrials, consumer non-cyclicals, and financials, and limited to no exposure to utilities, basic materials, and energy. Geographically, investments have tended to favour the United States and Europe, followed by Asia, with limited exposure to emerging markets.

The High Income portion is composed by a selection of discrete event-driven deals typically consisting of stocks and related options. At the portfolio level, positions in equity index, commodity and other derivatives may be in place to further reduce correlation to the stock market, mitigate downside risk, and improve the risk/reward of volatility changes. The geography, sector, and stock universe is not preset.

Dynamics: In the Global Equity portion, holdings are typically intended to be held for the longer term, so turnover can be quite low. Trades are predicated by a change in market conditions and/or a change in our investment thesis. Cash is a strategic asset, with active allocations when deemed appropriate to mitigate downside risks and await better future opportunities and pricing. 

In the High Income portion, each event-driven opportunity is evaluated on its own merits for consideration in the portfolio. The first focus for the sizing of each deal is the downside risk. Since each deal has a unique profile, they provide some diversification (orthogonality) to existing positions. Nevertheless, positions may be put on at the portfolio level to reduce risk and market exposure. The holding period of each deal is unique and dynamically managed as necessary, with an average of perhaps 6 months.

Investment examples: 1. An investment is made to gain sector exposure in anticipation of a shift in relative industry valuation, due to changes in economic perceptions and their anticipated impact on the specific company’s sales and margins. 2. The time value of a deal is monetized by positioning in a merger deal between two companies, upon completion of analysis evaluating the nature, likelihood, final price and timing of completion.

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Global Macro

Objective: Usually a high return, with a high tolerance for interim downside. 

Composition: Selective portfolios typically pursuing a half dozen market themes through active positioning that may utilize stocks, options, bonds, futures, commodities. 

Suitability: For institutional and private wealth investors seeking capital appreciation with high risk and a long term horizon. Investment accounts with margin. Minimum account size: $500,000 to $1,000,000.

Edge: Our proprietary strategies seek to source returns for Client portfolios through 3 broad categories:

  1. strategic investments, which are typically held for more than 3 months, seeking return from directional moves in prices and other possible payoffs,
  2. tactical trades, which can be on the long or short side, opportunistically seeking to hedge or enhance strategic holdings, or better diversify the portfolio with breadth and depth by tapping in to additional asset classes, geographies and strategies, and  
  3. relative value positions, which seek to profit by capturing price convergence or divergence between instruments through spread trades.   

Characteristics: Portfolios can consist of a wide variety of investments across markets and instrument types. Holdings are the expression of the  investment themes being pursued. Capital allocation and exposures can vary considerably, from gross and net long to short.  

Dynamics: Portfolio positions are evaluated for their contribution to the investment themes being pursued and portfolio overall. The behaviour of portfolios is monitored and reviewed by combining qualitative and quantitative analyses. A focal point is the tension between investing with conviction and overall portfolio risk. The value at risk is a function of the Client’s risk tolerance and market conditions. Positions are adjusted dynamically according to their evolving risk/reward profiles. Turnover can be high.

Investment example: Interest rate positions at the short and long end of the yield curve are initiated to seek to benefit from shifting economic expectations and monetary policy bias among central banks.