Alternative Investment Strategies

Confluence provides a range of portfolio management services focused on alternative investment classes which the Confluence team believes have the potential to achieve risk-adjusted returns. The team utilizes a disciplined investment process which takes advantage of its fundamental research. Management of these strategies begins with top-down evaluations of the geopolitical environment, fundamental macroeconomic trends and technical patterns in the target markets.

Global Hard Assets

The Global Hard Assets strategy is focused on investments in hard assets which we define as tangible commodities, such as a gold bar, a barrel of oil or a ton of coal. The portfolio primarily includes common stocks of companies in the hard asset sector which are directly responsible for mining, extracting or producing the hard assets. In addition, the portfolio will typically hold various hard asset ETFs, thus giving the portfolio exposure to actual commodities. The portfolio typically comprises 35-55 holdings and is expected to result in higher turnover of 50-80%. Global Hard Assets is suitable for clients whose primary objective is capital appreciation.

Specialty Finance BDC

The Specialty Finance BDC strategy is focused on a niche of the financial sector known as business development companies, or BDCs. BDCs lend to and invest in the private debt and equity markets. The majority, if not all, of holdings in this portfolio are in BDCs, typically involving 20-30 positions with a moderate level of turnover. Specialty Finance BDC is suitable for clients seeking alternative investment exposure to the private markets, one that involves high levels of income from an equity portfolio with above-average volatility. Most of the portfolio income will be in the form of non-qualified dividends.