Investing in companies that are being acquired, but whose shares are typically trading at a discount to the acquisition price. Involves assessing both the likelihood of the transaction closing and the timeline to its completion. The fund can either go long or short these deals.
‘Stock picking’ in the conventional sense. Focus on markets and sectors with strong expertise and competitive advantage. Positions are skewed towards Canadian listings, small and mid-cap, and most often within resources, industrials, financials, services, tech and healthcare. Maximum unhedged position size of 5% of net assets.
Identifying unique market inefficiencies, typically with a tangible catalyst. Entails event-driven entries and exits, asset purchases and sales, corporate actions, and other dynamics. Largely uncorrelated to markets and a reliable source of alpha over the long-term.