The Ravensource Fund is a publicly listed, closed-end investment fund. The principal objective of Ravensource is to achieve absolute annual returns, with an emphasis on capital gains, through investments in selected North American securities. Ravensource invests in distressed securities, alternative credit and special situation equity securities.

Ravensource is unique in its approach, seeking attractive investment opportunities from situations that are overlooked by traditional investors. Ravensource focuses on capturing value from the turnaround and recovery of financially distressed securities and from other deep-value investments, through extensive due diligence and active involvement by the manager, Stornoway Portfolio Management.

Ravensource has ~$10.6 mm of unused capital losses and ~$1.0mm of unused non-capital losses, collectively representing ~52% of the NAV of the Fund. As such, Ravensource is unlikely to generate taxable capital gains for the foreseeable future.

Investment Philosophy

We believe the most attractive opportunities arise from situations that are overlooked, misunderstood or underfollowed:

  • Companies in or near financial distress
  • Companies with hidden assets or misunderstood liabilities
  • Shares of companies lacking or losing institutional research coverage

However, uncovering opportunities is not sufficient to produce results. Our approach demands the following:

  • Ability to see beyond current corporate and financial challenges;
  • Patience and an investment horizon long enough for the markets to recognize the intrinsic value;
  • Ability and experience to assess the viability of an operational turnaround;
  • Ability to recognize and encourage catalysts to unlock value;
  • Willingness to become actively involved to protect and increase the value of our investments; and
  • Investing only when there is sufficient margin of safety / significant discount to the underlying and realizable asset values to provide protection when we are wrong.

Investment Strategies

The Stornoway Edge allows us to invest in companies and situations that other investors can’t or won’t.

We conduct deep analysis and diligence at the outset to determine if these “diamonds in the rough” merit investment of financial and intellectual capital. Our low purchase price for these unwanted assets both decreases risk and increases returns. After an investment is made we take an active approach to effect change — joining boards, creditor committees, and engaging with key stakeholders. Our creativity in providing solutions and ability to partner with others are key ingredients in our success.

Ravensource employs this approach across three strategies to create value for its unitholders:

Distressed Securities

Investing in corporate debt, creditor claims and/or equity securities of companies, which are in, or perceived to be in financial distress or insolvency

Alternative Credit

Investing in corporate debt, on either a primary or secondary basis to earn a yield that we believe is attractive given the underlying credit risk.

Special Situations Equities

Investing primarily in Canadian and U.S. small- and mid-cap equities that have catalysts to bridge the gap between market price and intrinsic value

Investment Summary

  • Status: Crystallized
  • Investment: Convertible Secured Debenture
  • Investment Period: June 2006 to October 2018
  • Average Purchase Price: $80 per $100 bond
  • Effective Realized Value + Residual Unrealized Value: $603 per $100 bond
  • Total Return: 654.2% (Gross)
  • Annualized Return: 24.7% (Gross)

Investment Summary

  • Status: Crystallized
  • Investment: Senior Secured Notes
  • Investment Period: Dec 2017 to July 2018
  • Average Purchase Price: $90 per $100 Bond
  • Effective Realized Value: $100 per $100 Bond
  • Total Return: 14.7% (Gross)
  • Annualized Return: 28.2% (Gross)

Investment Summary

  • Status: Crystallized
  • Investment: Public Common Equity
  • Investment Period: Nov 2013 to Dec 2017
  • Average Purchase Price: $0.84 per share
  • Effective Realized Value: $1.94 per share
  • Total Return: 130.1% (Gross)
  • Annualized Return: 28.0% (Gross)

Portfolio Summary

Investments By Industry % of Net Assets
Litigation Finance 31.8%
Media & Publishing 11.0%
Oil & Gas 9.7%
Steel 7.2%
Technology 6.8%
Real Estate 4.1%


At the time of investment and throughout the period which we own a security, we do consider its risk and the impact that it has on the overall risk of the portfolio. However, despite our thorough analysis and good intentions, sometimes we are wrong in our investment decision or have not found the proverbial snake that lurks under the rock resulting in a fall in the market value of the investment and net asset value of the Fund. In addition to the risks specific to a particular investment, the Fund is exposed to changes in foreign exchange rates, interest rates, credit conditions and other macro economic factors as described in the Annual Information Form and in the notes to our financial statements. Investors are encouraged to carefully read the Fund's financial statements, including the additional disclosure contained in the notes to the financial statements, just as we do prior to making an investment.

An investment in the Fund is suitable for those investors seeking long-term capital growth, have a long-term investment horizon and possess a medium to high risk tolerance to withstand the ups and downs that go along with investing in out-of-favor securities.

Distribution Policy

Effective June 30, 2023, Ravensource ceased making regular semi-annual distributions to unitholders. This decision was made as the Investment Manager believes that retaining capital to deploy in the attractive investment opportunities currently available to the Fund will create more value for unitholders than making a cash distribution. Going forward, Ravensource intends to distribute on a semi-annual basis the amount, if any, required for Ravensource to remain a tax-efficient vehicle as well as any excess liquidity should there be a lack of compelling investment opportunities.

Year Date Per Unit Distribution
2022 21-Dec-22 0.15
2022 23-Jun-22 0.15
2021 22-Dec-21 0.15
2021 23-Jun-21 0.15
2020 18-Dec-20 0.15
2020 23-Jun-20 0.15
2019 20-Dec-19 0.15
2019 20-Jun-19 0.15
2018 20-Dec-18 0.15
2018 21-Jun-18 0.15
2017 22-Dec-17 0.15
2017 21-Jun-17 0.22
2016 21-Dec-16 0.15
2016 21-Jun-16 0.15
2015 21-Dec-15 0.15
2015 19-Jun-15 0.15
2014 19-Dec-14 0.15
2014 19-Jun-14 0.15
2013 13-Dec-13 0.15
2013 19-Jun-13 0.09
2012 20-Dec-12 0.27
2012 13-Dec-12 0.09
2012 27-Jun-12 0.09
2011 22-Dec-11 0.27
2011 16-Jun-11 0.09
2010 23-Dec-10 0.09
2010 24-Jun-10 0.09
2009 23-Dec-09 0.09
2009 27-Jun-09 0.09
2008 28-Jun-08 0.09
2007 27-Dec-07 0.09
2007 28-Jun-07 0.08
2006 27-Dec-06 0.08
2006 29-Jun-06 0.06
2005 30-Dec-05 0.06
2005 29-Jun-05 0.05
2004 31-Dec-04 0.05
2004 17-Jun-04 0.05

Annual Redemption Right

Ravensource Fund offers an annual redemption privilege that allows unitholders to redeem 100% of their units for cash at Net Asset Value - adjusted to reflect expenses incurred to effect the redemption - as calculated as of the Annual Redemption Date.

In parallel, Ravensource has the right to re-sell units tendered for redemption as opposed to cancelling the units by entering into a Recirculation Agreement with one or more investment dealers to use commercially reasonable efforts to find purchasers of the units surrendered for redemption.

For further details, please refer to the Declaration of Trust which can be found in the “Investor Resources - Key Documents" section of the Ravensource Website or on SEDAR.