OUR
STRATEGIES

Discover our investment toolkit. Explore our range of strategies that includes everything from real estate, private debt and equity to more esoteric areas such as life settlements and litigation finance, in order to provide our clients with truly diversified portfolios. Why? Because traditional investing is no longer enough.

DaVinci Alternative Income Fund

The Alternative Income Fund is an alternative to traditional income and equity funds. The Fund invests outside the public markets with the objective of offering higher returns while maintaining lower levels of volatility. The Fund is made up of private mortgages and cash flow generating real estate. The Fund’s objectives are to earn moderate rates of return while minimizing volatility, and have a low or zero correlation with stock and bond markets.

DAVINCI PRIVATE DEBT FUND

The DaVinci Private Debt Fund is an alternative to traditional fixed-income products that carry low credit and interest rate risk, but offer a minimal level of return. The Fund seeks to provide a moderate return, minimal volatility and low to no correlation with traditional stock and bond markets by investing in private-debt instruments, including asset-backed loans that are fully secured by a corporation’s assets. Key to the investment process is our detailed analysis of the borrower’s assets and the likelihood of a safe return of our investors’ capital. In addition, close monitoring and regular interaction with the borrower allows for a timely view of the performance and prospects of the business.

DAVINCI PRIVATE
OPPORTUNITIES FUND

The DaVinci Private Opportunities Fund is managed to achieve a low to no correlation to traditional stock and bond markets, with lower volatility than stocks and higher returns than investment-grade bonds. The Fund may invest in private equity, infrastructure, hedge funds and other vehicles traditionally reserved for large pension plans and ultra high-net-worth investors.

DAVINCI ALTERNATIVE
HEDGE STRATEGY

The DaVinci Alternative Hedge Strategy is a multi-asset strategy focused on alternative asset classes, such as real estate, private debt, private equity, infrastructure and other absolute return strategies that are noncorrelated to traditional stock and bond markets and therefore have the potential to add diversification to any traditional portfolio. The Strategy combines our alternative pooled funds, targets 40 to 60 distinctly different investments, and a return of 6 to 10% before fees and minimal volatility in all market conditions. It does not use any leverage at the strategy or pool level.

LARGE CAP EQUITY FUND

The DaVinci Large Cap Equity Fund provides investors with exposure to large-cap North American equities using a cash flow return on invested capital model to select companies that either:

  • Have a high and consistent return on capital and are fairly valued or undervalued intrinsically.
  • Have historically had a high return on capital, but are currently suffering a temporary setback
    and are undervalued intrinsically.

The model employs a methodology of uniform accounting, where GAAP and IFRS accounting numbers are adjusted to see a company’s “true” capital and cash flow, which is highly predictive of stock returns over the medium term.

The Fund will typically be concentrated in 20 to 35 holdings with no more than 20% in any sector and no short positions or use of leverage. From time to time, the Fund may hold a high amount of cash as a hedge against market volatility.

PRIVATE PLACEMENTS

Since 2005, DaVinci has worked with prominent Canadian industry partners to originate alternative investment limited partnership opportunities via private placements. We have a very strong deal flow, and as such we occasionally see deals that are appropriate for our portfolios and may also be of interest to investors on a direct placement basis.

Investors can benefit from DaVinci’s analysis and selection process. In addition every selected deal undergoes a rigorous due diligence process. DaVinci also negotiates preferential terms, fees and tax structuring appropriate for our clients. Many of those opportunities are in private real estate, but we also participate in private debt and equity and other asset classes as exempt market dealers.

EXAMPLE OF A TYPICAL DEAL

Asset Class: Real Estate

Equity investment in a cash-flowing real estate property with no construction risk. A typical deal would be a large multi-family rental property located in an area with significant population and job growth. To increase regular rental income, investment properties have a value-add opportunity for minor improvements to individual units and/or common areas. Typically, post-acquisition, we enlist a professional property management firm to improve the operational performance of the property.