Strategy

Our Investment Strategy


Ovation seeks out assets that provide cash flow, collateral protection, moderate duration, and the ability to reprice.

Ovation’s investment strategy places an emphasis on preserving investor capital, providing quarterly distributions, and generating returns with low correlation to public markets. We believe in balancing absolute returns with remaining nimble as markets evolve.


Ovation primarily invests in private credit markets where underwriting and operational expertise aid in value creation. While many of these niche markets have existed for some time, and have a long history of generating attractive returns, their relatively small size has made them difficult for large financial institutions and investors to access. Ovation believes it has advantaged access, evaluation, and/or origination capabilities in these markets. When selecting assets for our portfolio Ovation seeks out assets that provide cash flow, collateral protection, moderate duration, and the ability to reprice. As a private firm, Ovation has no mandate to benchmark to any index; thereby avoiding an artificial constraint that may restrict Ovation’s ability to achieve our stated investment objectives.


The disruption and subsequent fragmentation of the broader credit markets since 2008 has increased the relative isolation of these niche, private credit markets versus public credit investments (e.g. corporate high grade and high yield bonds). Bank consolidation and increased regulation has resulted in a concentration of capital availability to larger borrowers through the issuance of public bonds or syndicated loans. The market for public credit is highly liquid and easily accessible to nearly all investors globally. As a result, the substantial in-flow of capital into public credit markets has lowered returns to investors.


The assets in the private credit and specialty finance markets may offer a better risk/return profile to their public counterparts. These assets may include (but are not limited to) tax lien transfers, real estate backed, life settlements, non-performing debt, asset-backed loans, single family rental real estate (“SFR”), small business loans, and medical receivables finance.


DISCLOSURE

HISTORICAL RETURNS

Past performance is not indicative of future results, and there can be no assurance that any objective will will be met. Nothing contained herein should be deemed to be a prediction or projection of future performance of any portfolio.


FORWARD LOOKING/TARGET RETURNS

Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of any portfolio may differ materially from those reflected or contemplated in such forward-looking statements.

Target returns are subject to inherent limitations. One limitation is that the returns do not take into account the impact that market and economic risks, such as defaults, pre-payments, and reinvestment rates, may have on actual trading. In addition, target returns are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. In no circumstances should the expected returns be regarded as a representation, warranty or prediction that any portoflio will reflect any particular performance or that it will achieve or is likely to achieve any particular result or that investors will be able to avoid losses, including total losses of their investment. Inherent in any investment is the potential for loss. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results.