LOGIQ Contrarian Opportunities ETF (LCO)

Overview

LCO is an actively managed investment fund that aims for total return through capital appreciation and income generation. The fund allocates its investments across a diverse range of assets including both US and international equity securities, preferred stocks, fixed income instruments, US Treasurys, and shares of other investment companies, notably in the form of ETFs. LCO employs a contrarian investment approach, taking positions in companies that are undervalued and overlooked by the market. This strategy is grounded in a thorough analysis of various financial metrics such as valuation, earnings growth, and cash flow, as well as assessments of balance sheet integrity, industry outlook, competitive positioning, management quality, and overarching macroeconomic trends. Additionally, LCO diversifies its investments across asset classes to reduce risk while striving for optimal returns. The fund typically manages a portfolio comprising 30 to 75 different positions, with equities representing the bulk of the holdings. Regular portfolio reviews ensure that the fund adapts to changing market conditions and reallocates resources effectively to optimize performance.

Products and Services

• US and Foreign Equity Securities

  LCO invests in a variety of US and international equity securities, targeting companies that demonstrate strong fundamentals, competitive advantages, and potential for growth. This segment of the portfolio is guided by a contrarian approach, focusing on undervalued stocks that are positioned for substantial appreciation.

• Preferred Stocks

  The fund allocates some of its resources to preferred stocks, which provide investors with a fixed dividend before common stockholders receive distributions. This investment is chosen based on the stability of the issuing companies and the dividend yield relative to risk.

• Fixed Income Instruments

  LCO diversifies its investments through fixed income instruments, carefully considering factors such as credit quality, yield relative to duration, and issuer fundamentals. This segment of the portfolio aims to provide a steady income stream while managing interest rate sensitivity and liquidity risks.

• US Treasurys

  Investment in US Treasurys offers a secure income source with minimal default risk. The inclusion of Treasurys serves to enhance the overall liquidity and stability of the portfolio, especially during periods of market volatility.

• Exchange-Traded Funds (ETFs)

  LCO invests in shares of other investment companies, particularly ETFs, to gain exposure to various sectors and markets efficiently. This approach augments diversification and reduces the cost of entry into different investment themes.

• Option Strategies

  The fund employs option strategies to generate additional income, hedge against risks, and mitigate volatility within the portfolio. By utilizing options, LCO can enhance returns while providing an effective risk management tool in uncertain market conditions.

• Regular Portfolio Review and Reallocation

  LCO conducts regular reviews of its portfolio to ensure optimal allocation of assets aligned with current market conditions. This dynamic approach facilitates timely reallocation, maximizes return potential, and manages risk effectively.