The Oasis Growth Fund is a diversified portfolio of North American compounding growth stocks complemented by 3 additional tiers of value-added tactical options portfolios. Investors gain access to the global markets through high quality, large cap international businesses while retaining North American standards for legal, accounting, and regulatory oversight. Target is to generate competitive annual growth of 8-10+%.
Tier 1: Core Equity Portfolio
High-Quality Compounding Businesses
The goal of the OGF’s covered call strategy is is to enhance returns through systemic portfolio coverage.
The core is a diversified portfolio of 35 equal-weighted compounding North American-listed stocks selected according to 19 fundamental, risk-measured criteria. The emphasis is on:
- Sustainable long-term profitability generating strong free cash flows
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Shareholder-oriented capital allocations:
- Dividend growth
- Debt reduction
- Research & Development investment
- Mergers & Acquisitions
- Share buybacks
- Corporate spin-offs
- Healthy balance sheets
- GARP buy-ins and Rebalancing on thresholds
- Risk limitations incorporating Sharpe ratios, beta, and correlation coefficients
The funds allocation is approximately 70% U.S. and 30% Canadian securities with broad representation across most economic sectors. The median market capitalization is $50-80 billion.
Target Performance: To generate average annual returns of 7-9% from a diversified portfolio of quality, compounding businesses selected through a disciplined, fundamentals-based process.
Tier 2: Covered Calls
Generating Systemic Options Premiums
Tier 2 involves a portfolio of systematic options overlay. Out-of-the-money Covered Calls are written on Tier 1 equities and harvested on a monthly basis. This approach seeks to:
- Generate incremental income through option premiums
- Provide a modest buffer against market declines
- Adhere to a systematic monthly cycle
Target Performance: To augment Tier 1 core growth with consistent supplementary income of 2-4% by writing low risk Covered Calls.
Tier 3: Opportunistic Put Writing
Generating Non-Systematic Options Premiums from Non-Core Equities
The third tier consists of a diversified portfolio of Put options written on quality companies not currently held in the core portfolio. Typically, these are stocks having experienced a temporary, discount due to any number of non-material factors. The process is characterized by:
- Diversification by varying strike prices and durations
- Risk dispersion by sector and industry
Writing passive Put contracts is designed to generate additional income while maintaining
diversification in compliment to the core portfolio. Occasionally, exercised Puts may provide attractive entry points into select stocks at discounted valuations, though the fund’s emphasis remains on disciplined premium collection.
Target Performance: To create an additional stream of income of 5% or greater through a diversified Put-writing strategy, while retaining flexibility for introductory equity exposure at value pricing.
Tier 4: VIX Call Ladder
Systematic Volatility Hedging
The fourth tier is a rolling, time-laddered portfolio of VIX Calls dedicated to risk management through volatility exposure at maturities ranging between two and six months. This structure provides:
- Systematic exposure to volatility at a relatively low cost
- Reduction of timing risks through incremental positioning across multiple maturities
- Asymmetric response in the event of equity market stress
Since volatility is random, by allocating periodically to this strategy during periods of low volatility, the fund seeks to hedge against portfolio drawdowns during heightened market stress.
Objective: To provide a consistent hedging mechanism that complements equity exposure and preserves long-term compounding potential.
Disclosures
This investment memorandum expresses the views of the author as of the date indicated and such views are subject to change without notice. Fieldhouse Capital Management Inc. (herein “Fieldhouse”) has no duty or obligation to update the information contained herein. Further, Fieldhouse makes no representation, and it should not be assumed, that past investment performance is an indication of future results.
The return of the Oasis Growth Fund is based on monthly total returns of the Fieldhouse Pro Funds Trust – Series O Oasis Growth Fund in Canadian dollars since inception at January 1st, 2020. All returns are time-weighted total returns of the F class, net of fees, and annualized for periods one year or greater.
Fieldhouse Capital Management Inc. is the Investment Fund Manager, Portfolio Manager and trustee of Fieldhouse Pro Funds Trust Advisor Series funds. Fieldhouse Pro Funds Trust funds are subject to management fees, trailing commissions, incentive fees and administration fees. For detailed information on fees see the the Fieldhouse Pro Funds Trust offering memorandum and the Series O offering memorandum supplement or the term sheets.
The Series O Oasis Growth Fund of Fieldhouse Pro Funds Trust was previously Class O of Fieldhouse Pro Funds Inc. The fund changed it’s investment strategy and it’s name from the “Oasis Canadian Growth++ Income Fund” to “Oasis Growth Fund” on January 1st, 2020. The fund NAV was reset to $10 at that time. The funds strategy changed from a Canadian growth and balanced fund to the North American Growth fund described on this page and in the Fieldhouse Pro Funds Trust offering memorandum. Class O of Fieldhouse Pro Funds Trust was previously Class B of Fieldhouse Pro Funds Inc. which had an inception date of April 1 2016. Fieldhouse Pro Funds Inc. converted to Fieldhouse Pro Funds Trust on January 1st, 2022. Historical fund performance for previous strategies is available on request. The Fieldhouse Pro Funds Trust offering memorandum and the Series O offering memorandum supplement contain additional information that should be considered by all investors prior to investing.
This memorandum is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. There are many important factors to consider when investing and you should seek professional advice that can assess your personal circumstances and risk appetite. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Fieldhouse believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based.
This memorandum, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of Fieldhouse.
