How to Utilize Fundamentals in the Credit Market | A Manager Conversation with Waratah’s Jeannine LiChong

In this manager conversation, Sightline Wealth Management’s Warren Gerow speaks with Jeannine LiChong, executive vice president and portfolio manager at Waratah Capital Advisors. During their conversation, LiChong offers an inside look at the Waratah Alternative Equity Income Fund, a long-short portfolio of fixed-income securities that utilizes credit spread and opportunistic overlays to seek absolute returns across various market environments.

Some of the specific topics Gerow and LiChong address include:

  • LiChong’s professional background, credentials and areas of expertise
  • An overview of Waratah Capital Advisors and the Waratah Alternative Equity Income Fund
  • The Fund’s hands-on, bottom-up investment approach
  • How the macro-environment can impact the Fund’s portfolio allocation strategy
  • The factors that may impact how much the Fund invests in a specific sector
  • LiChong’s current outlook for the Canadian banking sector and its potential effect on credit investors
  • Warning signals and green lights that the Fund examines before investing in a specific company
  • The criteria utilized by the Fund to determine when to sell certain assets in its portfolio
  • How the Waratah’s options strategy applies to the Fund’s portfolio
  • Current weightings in the Fund’s portfolio by specific sectors
  • LiChong’s thoughts on whether a recession will occur and how it may impact the Fund
  • How the A.I. boom and the concentrated market may impact portfolios industries and active managers

Throughout the conversation, LiChong highlights how, by utilizing a dynamic, fundamentalist approach to the credit markets that aims to preserve capital during downturns and find opportunities during rallies, the Fund is able to simultaneously limit the downside and generate income for its investors over the long term. To learn more about allocating toward the Waratah Alternative Equity Income Fund, please do not hesitate to contact us.

Important Information: 

Warren Gerow is an independent investment wealth consultant at Sightline Wealth Management.

Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts. 

Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds. 

Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.

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