TORONTO, Sept. 2,
2022 /CNW/ - Stornoway Portfolio Management Inc.
("Stornoway"), the Investment Manager of Ravensource Fund (TSX:
RAV.UN), is pleased to announce that Computershare Trust Company of
Canada, as trustee of Ravensource,
has entered into an agreement with BMO Nesbitt Burns Inc. to
recirculate 253,943 units tendered for redemption (the
"Recirculation") to interested investors at a price of $15.2646 per unit, representing $3,876,338 in total.
"Ravensource is a unique RRSP-eligible investment vehicle with
the objective of creating long-term wealth for its unitholders by
investing in troubled and misunderstood companies at fire-sale
prices," said Scott Reid,
Stornoway's President. "Our value
proposition to Ravensource investors is the opportunity to profit
from the potential revitalization of these companies that are
largely off the radar screen of other funds. Stornoway, utilizing our deep restructuring
and turnaround experience, partners with other stakeholders to help
effect the change required to create – and capture – the value we
identified at investment for the benefit of all Ravensource
investors."
"Our approach has provided Ravensource investors with superior
long-term returns generally uncorrelated with other asset classes,
creating a powerful diversifying impact on their portfolios. This
can be especially valuable to investors in times of market
uncertainty."
Since Stornoway assumed
management of Ravensource in July
2008, a $100,000 investment in
Ravensource has grown to $245,990.
Ravensource's outperformance has generated 43% / $43,917 more wealth creation than a $100,000 investment in the S&P / TSX over the
same period, including reinvested dividends and distributions.
"As the Stornoway Team currently owns more than 14% of
Ravensource, we are your partners in this value creation process.
The process of turning around troubled companies typically takes
two to four years, and we tend to receive the bulk of our profits
at the end of this investment life cycle. Ravensource investors
today can benefit from the 'heavy lifting' and value already
created which we believe is not yet reflected in the current price
of our investments."
"The Recirculation is a once-a-year opportunity to invest in
Ravensource in a greater amount than typically available for sale
on the TSX", Scott Reid said.
"Ravensource is not for everyone. Investors should have: a
long-term investment horizon; a capital growth objective rather
than income; possess a medium-to-high risk tolerance to withstand
the ups and downs that go along with investing in out-of-favor
securities; and have an otherwise diversified portfolio."
Investors interested in purchasing Ravensource units under the
Recirculation must place their orders by 2pm
Eastern Time on September 21,
2022. The settlement date for units purchased as part of the
Recirculation will be September 23,
2022. Ravensource units are eligible for registered accounts
including RRSPs, RESPs, TFSAs and RRIFs.
Ravensource seeks to achieve superior absolute, long-term
returns by investing in distressed and deep-value North American
securities. The Fund implements this philosophy across three
investment strategies: distressed securities, alternative credit,
and special situations equities. Additional information relating to
Ravensource and the Recirculation is available on the
"Recirculation Opportunity" link at www.ravensource.ca.
Please note that this release has been prepared by Stornoway
Portfolio Management for information purposes only and is not, and
under no circumstances should be construed as, an advertisement for
a public offering for the securities referred to herein. Please
consult your broker or investment advisor when determining the
suitability of an investment for you.
SOURCE Ravensource Fund