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@RadiusFE
M O N T H LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N G MAY 2015 VOLUME 15 ISSUE 5
VERONIKA HIRSCH OFARROW CAPITAL MANAGEMENT INC.
CANADIAN HEDGE WATCH INTERVIEWS
2015 TRENDS: INVESTOR-CENTRIC APPROACHES FOR HEDGE FUND GROWTH
AIMA-CANADA EMERGING MANAGERS WORKSHOP FOCUSES ONHEDGE FUND START UPS
AIMA CANADA PANEL FOCUSES ON PRIVATE ASSET INVESTING
BUILDING EFFICIENCY INTO HEDGE FUND OPERATIONS
ASSET MANAGEMENT
ASSET MANAGEMENTSET SUPPORT SUSTAIN BUSINESS S
ASSET MANAGEMENT
AASSSEET MMMANNAGGEEAA MMENNTT
ASSSSET MANNAAGEEMENTSETTT SUPPOORT SUSSTAATT IN BUUSINESSS S
AASSSEET MMMANNAGGAA© 2014 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
SuccessEvery stage of your fund’s lifecycle is critical. We help you establish,
support and sustain your fund and fund management businesses from
end to end. This includes fund creation and set up, acquisition and sale of
investments, refinancing considerations, and realization and exit. You can rely on our:
requirements.
and global business issues.
resource network.
We can help you create Success.
Let’s start the conversation.
kpmg.ca/assetmanagement kpmg.ca/financialservices
Peter HayesNational Director Alternative InvestmentsT: 416-777-3939E: phayes@kpmg.ca
James Loewen National Leader Asset ManagementT: 416-777-8427E: jloewen@kpmg.ca
Volume 15 Issue 5 - May 2015
Hedge funds registered their fifth consecutive month of gains since the start of the year.
With US Q1 growth numbers revised downwards into negative territory, much depends on the recoverycurrently underway in Q2 before markets begin to form expectations about an eventual rate rise later duringthe year. However, given the many factors that could still derail the US economic recovery, the rate rise -when and if it comes - is likely to be minimal and long drawn out. Meanwhile, while the Eurozone Q1 growthnumbers seem to suggest that the ECB's quantitative easing program is working itself in, a 'Grexit' stillremains on the cards and could potentially be the key upsetter for markets in 2015. Over in Asia, China'smoderating growth outlook fails to dampen the steep climb seen in its equity markets and it remains to beseen how regulators will cap this genie back into the bottle - without breaking the bottle that is.
Key takeaways for the month of May 2015:
• Hedge funds were up 4.37% May year-to-date with assets under management increasing by US$86.5 billion in the first five months of the year.
• Assets under management for Asian hedge funds hit their pre-2008 high, increasing by US$15 billion during the current year to reach the US$176 billion mark.
• Greater China mandated hedge funds lead the returns tables - up 25.21% for the year.
• CTA/managed futures funds posted their second consecutive month of losses, down 0.21% though they have seen net asset inflows of US$16.4 billion during the year.
Source: Eurekahedge.com
Terry KrowtowskiCanadian Hedge Watch Inc.
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Volume 15 Issue 5 - May 2015 1
@RadiusFE
Performance SummaryApril2015
YTD
CHW HEDGE FUND INDICES (CHW-HF) % %
CHW-HF Composite Index 0.38 2.29
CHW-HF Equity Hedged Index -0.38 2.34
CHW-FOHF Index 0.74 4.89
Scotia Capital Canadian Hedge Fund Performance Index
SC CDN HF Index Asset Weighted -0.26 4.52
SC CDN HF Index Equal Weighted -0.40 3.44
Dow Jones Credit Suisse Hedge Fund Indices
Credit Suisse Hedge Fund Index 0.02 2.50
Convertible Arbitrage 2.73 3.21
Emerging Markets 3.36 4.77
Event Driven 0.85 2.45
Fixed Income Arbitrage 0.63 0.48
Global Macro -0.75 3.68
Long/Short Equity -0.02 1.83
Managed Futures -4.29 2.71
Multi Strategy 0.01 3.00
HEDGE FUND INDICES
HFRI Fund Weighted Composite Index 0.90 3.16
HFRI Equity Market Neutral Index 0.01 1.52
HFRI Fund of Funds Composite Index 0.33 2.90
MARKET INDICES
Dow Jones Global Index (C$) -2.42 8.87
Dow Jones Global Index (U$) 2.67 4.85
Dow Jones 30 Industrial Average (US$) 0.36 0.10
NASDAQ Composite Index (C$) -4.17 8.34
NASDAQ Composite Index (US$) 0.83 4.34
S&P 500 Total Return Index (C$) -4.04 5.83
S&P 500 Total Return Index (US$) 0.96 1.92
S&P/TSX Composite Index Total Return 2.16 4.05
Canadian Hedge Watch Inc.1235 Bay Street, Suite 400, Toronto, Ontario M5R 3K4
tel: 416.306.0151 fax: 888.905. 3080Media, Advertising & Editorial: info@canadianhedgewatch.com
Subscriptions: info@canadianhedgewatch.com
Canadian Hedge Watch is published 11 times per year byCanadian Hedge Watch Inc. We welcome articles, suggestions
and comments from our readers. All submissions become theproperty of Canadian Hedge Watch Inc., which reserves the right
to exercise editorial control in accordance with its policiesand educational goals.
DisclaimerCanadian Hedge Watch (CHW) presents news, information and data onboth Canadian and Global alternative investment activity. The informationpresented is not to be taken as an endorsement, investment advice or apromotion for the organizations and individuals whose material andinformation appears in this CHW publication or on the Canadian HedgeWatch website.
The material presented, separate from paid advertisements, is for the solepurpose of providing industry-specific information. As with all areas offinancial investing, CHW recommends strongly that readers shouldexercise due diligence by consulting with their investment advisor or othertrusted financial professional before taking any action based upon theinformation presented within these pages.
Editorial and Sales
EditorTerry Krowtowski
Sales DirectorSovaida Pandor
Art DirectorVic Finucci
Online DeveloperFerenc Schneman
MONTHLY REVIEW OF HEDGE FUNDS & ALTERNATIVE INVESTING
MAY 2015 VOLUME 15 I SSUE 5
2 0 1 5 C A L E N D A R O F E V E N T S
Brought to you by
Retirement Investment Summit Canada (RISC) 4th AnnualTuesday, April 21 & Wednesday, April 22 ~ TorontoRISC is Canada's premier event on Retirement Planning and Investing. Hear from leadingfinancial industry professionals and industry experts who will provide valuable insights intothe issues and trends that matter the most for Canada's financial professionals in Canada.Join us for presentations, advisor/client focused sessions, panel discussions, networkingevents and knowledge sharing critical issues facing the retirement industry. This extensivetwo-day event delivers a focused set of tools and resources from select sponsor partners thatinclude products, retirement coaching and planning, current economic perspectives,information on advisor support programs and tools for your business and development. Thisis an opportunity for financial advisors to gather together in a great location to network, learnfrom each other, and participate in the numerous educational opportunities that fill the agenda.
Exchange Traded Forum (ETF) 6th AnnualTuesday, May 26 & Wednesday, May 27 ~ TorontoCanada’s leading event dedicated to Exchange Traded Products. Hear from leading financialindustry professionals and industry experts who will provide valuable insights into the issuesand trends that matter most to Canada’s financial professionals. Join us for presentations,advisor/client-focused sessions, roundtable discussions, networking events and knowledgesharing critical issues facing the financial industry. This is an opportunity for IIROC based financialadvisors and also Portfolio Managers to gather together in a great location to network, learnfrom each other, and participate in the numerous educational opportunities that fill the agenda.
Exchange Traded Forum (ETF West) 5th AnnualWednesday, June 3 ~ VancouverCanada’s leading event dedicated to Exchange Traded Products. Hear from leading financialindustry professionals and industry experts who will provide valuable insights into the issuesand trends that matter most to Canada’s financial professionals. Join us for presentations,advisor/client-focused sessions, roundtable discussions, networking events and knowledgesharing critical issues facing the financial industry. This is an opportunity for IIROC based financialadvisors and also Portfolio Managers to gather together in a great location to network, learnfrom each other, and participate in the numerous educational opportunities that fill the agenda.
World Alternative Investment Summit Canada (WAISC)Mon., Sept. 14 to Wed., Sept. 16 ~ Niagara Falls 14th YearWAISC is in its 13th year and is Canada’s largest gathering of alternative and exempt marketinvestment professionals and service providers. Featuring panel discussions with top-levelCanadian and international speakers, fund managers and leading service providers, WAISCbrings together over 300 delegates to explore every side of alternative investments. WAISCis a popular annual event that is not to be missed.
Exchange Traded Forum (ETF North Toronto)Tuesday, October 20 ~ North Toronto Canada’s leading event dedicated to Exchange Traded Products. Hear from leading financialindustry professionals and industry experts who will provide valuable insights into the issuesand trends that matter most to Canada’s financial professionals. Join us for presentations,advisor/client-focused sessions, roundtable discussions, networking events and knowledgesharing critical issues facing the financial industry. This is an opportunity for IIROC based financialadvisors and also Portfolio Managers to gather together in a great location to network, learnfrom each other, and participate in the numerous educational opportunities that fill the agenda.
World Alternative Investment Summit Canada (WAISC West)Wednesday, October 28 ~ VancouverWAISC West is in its 4th year and is Canada’s largest gathering of alternative and exemptmarket investment professionals and service providers. Featuring panel discussions with top-level international speakers, fund managers and leading service providers, WAISC bringstogether over 200 delegates to explore every side of alternative investments.
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Volume 15 Issue 5 - May 2015 3
C O N T E N T S
M A Y
Canadian Hedge Watch 4Interviews Veronika Hirsch ofArrow Capital Management Inc.
Arrow Capital Management Inc. 6Snapshot
2015 Trends: Investor-Centric 8Approaches for Hedge Fund GrowthBrian Macallister, Ledgex Systems
AIMA Canada Emerging Managers 10Workshop Focuses on Hedge FundStart Ups
AIMA Canada Panel Focuses on 12Private Asset Investing
Building Efficiency intoHedge Fund Operations 14Sungard Asset Management
Hedge Fund Performance Tables 26
Veronika Hirsch @RadiusFE
www.canadianhedgewatch.com4
Veronika HirschPortfolio Manager
Canadian Hedge WatchInterviews Veronika Hirsch of Arrow Capital Management Inc.
Arrow Capital Management is an employee-owned company, founded in 1999. Arrow'sexpertise in active portfolio management and manager selection is evident in its strong,diverse platform, which provides clients with access to a global selection of actively managedinvestment funds. Arrow is committed to continuously providing investors with access to awide range of investment solutions. With over 15 years of service, Arrow Capital has been wellrespected as a Canadian alternative investment company. In December of 2013, Arrowacquired BluMont Capital Corporation adding the Exemplar range of prospectus-basedsolutions to its platform, expanding its range of products and catering to a wider client base.
Canadian Hedge Watch You have been successfully running portfolios for a long time,how did you get started in the business?
Veronika Hirsch For my International Business course at McGill, I was assigned a novel about agroup of F/X traders and from that moment, the world of finance captivated me. I unsuccessfullyapplied for several investment positions until I was fortunate to get myself hired into the InvestmentDepartment at Prudential while unhappily laboring in the Auditing Department.
CHW Veronika can you provide us with an overview of the Hirsch Performance Fund?
VH The Hirsch Performance Fund was launched in September of 1997 and has had a successfultrack record since inception. The objective of the Fund is to deliver consistent returns without regardto the Index. The Fund has tremendous flexibility when choosing its investments, but investsprimarily in Canadian equities. The securities are chosen from industries which offer the bestopportunity for profitable returns at each stage of the economic and market cycle. The Fund onlyselects companies with exceptional and proven management teams, well defined growth strategiesand distinct competitive advantages. I search for event-driven trading opportunities to augmentreturns. The Fund has compounded 11.2% (as of May 31, 2015) per annum since inception.
CHW How do you make your investment decisions?
VH My experience allows me to recognize and properly evaluate each company’s potential.I have been researching companies and talking to management teams since my early days as ananalyst at Prudential in the 1980’s.
When making investment decisions, I look for exceptional growth potential. I focus on managementexperience, track record and ability to execute strategies successfully. As even the best businessmodel can only succeed with focused, experienced and driven leaders.
Moreover, I have been able to leverage the relationships and trust built throughout my career to gainaccess to senior management, helping me make better investment decisions.
Volume 15 Issue 5 - May 2015 5
CHW What are the main themes in your portfolio?
VH The focus of the Fund is on growth stocks. In the current macroenvironment of exceptionally low interest rates and slow economicgrowth, companies with high organic growth are not common. Mystrategy has been to concentrate on companies with a successful recordof consolidation within their own industry. Thus, I search for companiessmart enough to take advantage of the current low interest rateenvironment to grow by acquisition. Strategic acquisitions helpcompanies achieve faster growth by expanding their client list, productsand geographic reach in a timely manner.
In the current low commodity price environment, the Canadian economywill inevitably lag behind the U.S. Therefore, my preference has been forCanadian companies which have successfully grown internationally tothe point of having the majority of their sales outside of Canada. Byincluding them in the Hirsch Performance Fund, I am able to giveCanadian investors significant global exposure, while enjoying the benefitof meaningful F/X translation gains.
CHW What are the Fund investment benefits?
VH Capital preservation is my top priority. The Hirsch PerformanceFund’s mandate considers capital preservation its single most importantgoal. The stringent risk management process helps to generate solid risk-adjusted returns.
Additional benefits include:
Capping the Fund sizeManaging capacity of the Fund is essential to my success. I amcommitted to maintaining consistent returns by staying sufficiently nimbleto execute strategy changes.
Active Management By actively managing the portfolio, I take advantage of marketopportunities quickly.
Flexibility in MandatePast experience managing long/short strategies has taught me theimportance of flexibility. I use the full array of tools at my disposal in theHirsch Performance Fund to reduce risk and better adapt my strategy toprevailing market conditions.
CHW You mentioned flexibility in mandate, what tools differentiate thisfund from other alternative funds?
VH Some of the tools available to me include:
• “Shorting” or “Cash Management”The ability to short allows the Hirsch Performance Fund to generate positive returns even during declining markets. I also use cash management as a tool to mitigate risk and preserve capital during turbulent markets.
Flexibility can take many forms, such as:
• Free of Capitalization ConstraintsLack of capitalization limits allows me to search for the best growth stories, found frequently among overlooked mid-caps. Many of my past winners came from mid-caps – these are companies large enough to have a proven track record, yet small enough to generate superior growth.
• Free of sector or geographic restrictionsNot having sector and geographic restrictions allows me to focus on industries and companies best suited to prevailing market conditions and the different stages of an economic cycle.
• LeverageI occasionally employ modest leverage to take advantage of opportunities when others are forced to sell good companies (for instance, as a result of fund redemptions in difficult markets). I also use leverage during unusually heavy M/A activity.
• Hedging StrategyOverall, I employ a hedging strategy to reduce the beta of the portfolio. I frequently use individual shorts or include them as part of pair-trades to reduce portfolio volatility. Tactically I use ETFs to reduce risk of overall portfolio during turbulent or declining markets.
CHW What type of investor is the Fund suited to?
VH The Hirsch Performance Fund is intended for investors looking forcapital appreciation through active management of an equity portfolio.The Fund should be suitable for investors of any age, provided they canaccept a moderate level of risk.
CHW Finally, Veronika, what advice would you give to someone tryingto become a portfolio manager?
VH Clearly, the investment world has changed a lot since I started mycareer, but the basic fundamentals of investing have not. After completingan undergraduate degree, the CFA (Chartered Financial Analyst)designation would be an important next step. Being a PM requires acomplex set of skills, which sometimes take a while to hone or acquire.The best place to start would be working for an exceptionally talentedPM, and using the time to learn all his/her wisdom and tricks. Then takingall that knowledge and adapting it to one's own abilities and skills. Thatcombination of market wisdom, experience, and one's own unique set ofskills cannot fail! The best piece of advice I can give someone is that thereis no substitute for hard work. It always pays off in the end.
Veronika Hirsch is a senior Portfolio Manager with Arrow Capital ManagementInc. managing the Exemplar Performance Fund, Exemplar Canadian FocusPortfolio and the Hirsch Performance Fund on the Arrow platform. Ms. Hirschis a respected Canadian equity manager with over 25 years investmentexperience. Prior to joining Arrow, Ms. Hirsch was Chief Investment Officer atBluMont where she was Portfolio Manager of various Exemplar Funds. In 1999,Ms. Hirsch co-Founded Integrated Asset Management Corp. (IAM). Previously,she served as a Vice President and Portfolio Manager at AGF, as well as FidelityManagement. She began her career in the investment industry as a PortfolioTrader at Prudential, later rising to Vice President and Portfolio Manager. Ms.Hirsch is a highly regarded Canadian investment manager making frequentappearances on BNN and on other popular business media outlets. Ms. Hirschholds a Bachelor of Commerce degree from McGill University and is a Fellowof Life Management Institute.
Experience. Intelligent Investing.
www.canadianhedgewatch.com8
In today’s competitive market, winning investor assets is no easy feat. Hedge funds must be nimbleand meet increasing investor and regulatory demands, while remaining cost efficient and advancingoperations. To foster and sustain these relationships, it’s vital that managers and investors reachequilibrium in regards to their interests and expectations.
Achieving this balance is an ongoing challenge; however, it also offers firms opportunities forimprovement. The following are suggested focus areas for hedge funds to differentiate themselvesfrom the competition and attract and retain investors.
Bespoke ProductizationManagers that strive to enhance offerings consistently to attract principal growth must focus oninvestors’ needs during product ideation and development. Aside from exceptional client service,investors expect high performance, availability, transparency and seamless integration with clientrelationship management data. Hedge funds that invest in building bespoke solutions suitable forinvestor operations will meet expectancies better while increasing efficiencies and reducing the riskof underperformance.
Diving DeeperTo meet growing investor demands hedge funds must dig below the surface and provide visibilityinto both customer and investor relationship data. In other words, they need a bird’s eye view thatcan be magnified down to every layer, touch point and email.
This all-encompassing perspective, coupled with readily available, accurate information, will helpmanagers identify areas for improvement and eliminate any guesstimates regarding past clientactivity. Information is king, and maximizing its value will empower a firm to become consistent intheir efforts. Furthermore, funds will be able to nurture investor relations more effectively; rather, thanacting on a whim when addressing investor questions and strategizing future business objectives.
Lack of Ease in InterpretationInvestors’ needs have evolved beyond historical data and records of interactions for performanceevaluation and future planning. Although these reporting aspects are still valuable, suffice to say thatpaper trails of spreadsheets and multiple back-office systems are a way of the past. Some firmsutilize multiple platforms and resources to manage customer relations, mailings, portfolios and thelike, which can lead to increased headcount, cost and time.
Efficiently managing all of these areas requires one centralized platform that provides insight intosales and marketing initiatives, capital activity and communication tracking. Offering a one-stop-shop product not only simplifies customer and investor relationship management, but alsoenhances the fund’s services.
Brian Macallister is managing director for Ledgex Systems. He has been designing and working withfinancial services applications for 20 years. Brian is the principal architect and product visionary of theLedgex platform, and he is responsible for leading the company’s engineering, support and client serviceteams. Prior to Ledgex Systems, Brian was a director within the Eze Castle Integration ProfessionalServices Group, where he led large-scale custom application development projects for some of the largesthedge funds and fund of funds in the country. Brian has also worked with top industry firms includingCharles River Development, Thomson Reuters and Fidelity Investments.
Offering a one-stop-
shop product not only
simplifies customer
and investor relationship
management, but
also enhances the
fund’s services.
Brian MacallisterManaging Director
Ledgex Systems
2015 Trends: Investor-Centric Approaches forHedge Fund Growth
Volume 15 Issue 5 - May 2015 XX
Long track recordAIMA was founded in 1990 and has grown into the only truly global hedge fund industry association, with more than 1,400 corporate members in over 50 countries.
Representing the industryWe represent the world�s hedge fund industry to regulators, policymakers, investors, the press and other stakeholders.
Speaking for the whole industryAIMA�s members come from all parts of the global industry � including managers, service providers, allocator managers (including FoHFs), advisers and investors.
Regulatory updatesAIMA members receive comprehensive regulatory updates.
Education and Sound PracticesAIMA members are given access to our full range of sound practices material, covering hedge fund management, valuation and asset pricing, administration, governance, business continuity, due diligence questionnaires for managers and service providers, offshore alternative fund directors and fund of hedge funds managers.
AIMA Knowledge CentreOur members get access to our online library of industry knowledge and expertise. Additionally, they receive our weekly newsletter, covering all the latest key industry
publication, the AIMA Journal.
A positive startDue to the amount of information available from AIMA and assistance we can provide through sound practices guidance,
Global forum
by either joining one of our many committees and regulatory working groups or by taking part in one of our many events around the world, including our Global Policy & Regulatory Forum and the AIMA Annual Conference.
Member eventsOur Annual Conference, open to all AIMA members, attracts leading speakers from the industry and among policymakers, and hundreds of delegates, from around the world. We also hold regular events for our members globally, which provide helpful intelligence to delegates and networking opportunities.
Loyal membersAIMA membership renewal rates are regularly above 85%.
Global members
Registered in England & Wales at the above address Company No. 4437037 � VAT No. 577 5913 90
ContactAIMA CanadaTel: (416) 453 0111Contact: James BurronEmail: jburron@aima.org
canada.aima.org
AIMA � Representing the Global Hedge Fund Industry
AIMA has more than 1,400 corporate members in over 50 countries
www.canadianhedgewatch.com10
More than 60 current and would-be hedge fund managers and practitioners were on hand in TorontoMay 27th for the first of four workshops in AIMA-Canada’s popular Emerging Managers Series.The theme was “Starting a Hedge Fund Business”.
Hosted by BLG LLP in their Toronto offices, the session featured a panel discussion aimed at newor established managers considering, or in the process of, starting, a hedge fund business. Thesession covered such important considerations as legal structure (trusts, LPs or corporations),registration requirements and process, offering terms, tax considerations and key service providers.
The session was kicked off by Ian Pember, VP Administration and Compliance with HillsdaleInvestment Management and Co-chair of AIMA Canada’s Legal and Finance Committee which isorganizing the Emerging Managers Series. It featured a distinguished panel that included RonKosonic, Partner, Borden Ladner Gervais LLP; Dannielle Ullrich, CFO and COO, RP InvestmentAdvisors; Dennis MacPherson, Senior Vice President, SGGG Fund Services Inc.; and BrianD'Costa, Founding Partner, Algonquin Capital. The workshop was wrapped up by AIMA CanadaChair Michael Burns, Partner, McMillan LLP.
The goal of the four-part Emerging Managers Series is to educate new managers and those whowork with them on major areas of interest involved in starting and operating a hedge fund. Sessionsare videotaped and made available to those not able to attend in person.
Future workshops in the series will include: Part 2: Distributing Your Fund, Including CapitalIntroduction (June 2015); Part 3: Doing Business Outside Canada/Offshore Structuring(September 2015); Part 4: Operational and Compliance Considerations (October 2015).Actual dates and locations are yet to be confirmed.
The session, which included a lively Q&A session, and was followed by a networking reception.
AIMA Canada EmergingManagers Workshop Focuseson Hedge Fund Start Ups
Emerging Managers Workshop panel members: Dannielle Ullrich, CFO & COO, RP Investment Advisors; Ron Kosonic, Partner BLG LLP;Dennis MacPherson, SVP, SGGG Fund Services Inc.; and Brian D’Costa, Founding Partner, Algonquin Capital.
Volume 15 Issue 5 - May 2015 XX
www.canadianhedgewatch.com12
More than 90 AIMA Canada members and guests were on hand May 27th in Toronto to hear the “insand outs” of private asset investing from a panel of experts which included Arif Bhalwani, ManagingDirector, Third Eye Capital, Greg Romundt, President & CEO, Centurion Asset Management Inc., andStephen Johnston, Principal, Agcapita Partners LP at an AIMA Canada luncheon in Toronto. Thepanel was moderated by David R. Kaufman, President & CEO, Westcourt Capital Corporation.
The event was aimed at institutional, HNW and retail investors and their advisors as well as thoselooking into alternative assets generally.
The panel expressed varying views but did agree on several key points: private asset investing “is allabout taking advantage of inefficient markets;” “getting past the notion that liquidity is everything– and that it comes at a cost” and “looking for places investors have not gone yet.” They also agreethat the potential benefit is attractive risk adjusted returns but that this is based on a lot of hard workand a high level of due diligence in seeking out attractive niche market opportunities.
The luncheon event, organized by AIMA’s Sales Practices Committee, was sponsored by KPMG.
Alternative assets can
be a great diversifier for
investor portfolios but their
liquidity and return streams
can make choosing the
right mix a challenge
AIMA Canada PanelFocuses on Private Asset Investing
Private Assets panel members with AIMA Canada COO James Burron.From left to right: David Kaufman, President & CEO, Westcourt Capital Corporation;
Stephen Johnston, Principal, Agcapita Partners LP; Greg Romundt, President & CEO,Centurion Asset Management Inc.; Arif Bhalwani, Managing Director, Third Eye Capital;
and James Burron.
James Burron kicking off thePrivate Assets seminar
Volume 15 Issue 5 - May 2015 XXTo register, visit or call exchangetradedforum.com / T 416.306.0151
EXCHANGETRADEDFORUM2015
A PRESENTATION OF
radiusfinancialeducation.com
Pat Bolland, Moderator
ETF 2015 - Toronto & Vancouver
Catch a Glimpseof the ETF Future.
NORTH YORKTues., October 20
Le Parc, Thornhill
ETRs
ETFs
INDEXING
ASSET MANAGEMENT Insight Report
BUILDING EFFICIENCY INTO HEDGE FUND OPERATIONS
14
www.sungard.com/hedge360 1
CONTENTS2 Introduction – hedge fund scale matters
3 Cost-effective scalability
6 A streamlined approach to scale – staying lean to achieve growth
9 Conclusion – scalability from the start
15
CONTENTS2 Introduction – operational efficiency:
a rising priority for hedge funds
3 Striking a balance – achieving efficiency
6 A front-to-back vision of operational efficiency
8 Conclusion - bringing operations together
16
Introduction – operational efficiency: a rising priority for hedge funds
Institutional investment breeds a new operational cultureIn times of relatively slow economic growth, hedge funds are attracting record levels of assets. According to Hedge Fund Research (HFR): “Capital invested in the global hedge fund industry surged to a record in the fourth quarter of 2013, finishing a strong year of capital growth as hedge funds posted the best performance in three years.”1
Key to this success has been the growing appeal of alternative investments for large financial organizations such as pension funds and insurance companies. For these institutional investors, which now account for two-thirds of industry assets2, hedge funds are providing an important means to generate healthy returns: a viable, often more profitable alternative to traditional strategies.
In the words of the Alternative Investment Management Association (AIMA): “Many investors now regard alternatives in general and hedge funds in particular as tools to customize their portfolios and enable them to achieve individual objectives in terms of risk-adjusted returns, lower correlations, lower volatility, greater diversification and more downside protection.”3
The rise of institutional investment in hedge funds is not only driving growth, but also reshaping the sector’s approach to investment operations. With significant capital at stake for their clients, institutional investors demand institutional standards of infrastructure from fund managers. And as compliance requirements increase, the same is true of a growing range of regulators.
As a result, it has become a high priority for hedge funds to achieve “institutional credibility”: to inspire confidence, in other words, in their own operational stability, reliability and transparency. A firm’s operating model must stand up to scrutiny from investors and regulators alike – driving the need for efficiency deeper into hedge funds’ operational culture.
Easing pressure on margins and resourcesFor hedge funds, operational efficiency is key not only to achieving institutional credibility but also addressing a more prosaic issue: their decreasing bottom line. As research by EY has revealed: “Although two in three managers report an increase in revenue over the past year, just half report improvements in margins. One in three says margins declined.”4
With pressure on both fees and margins, higher levels of efficiency are essential for hedge funds to do more with less operationally. However, hedge funds’ strategies are typically complex, so their operations must work all the harder to cope. The challenge is to do so without straining resources any further.
1 HFR: Global Hedge Fund Industry Report2 Deutsche Bank: 2014 Alternative Investment Survey
3 AIMA: Beyond 60/40 - The Evolving Role of Hedge Funds in Institutional Investor Portfolios
4 EY: Exploring Pathways to Growth - Global Hedge Fund and Investor Survey
62% of hedge funds stated operational efficiency was one of their top three priorities. Once considered a by-product of regulatory change, increased efficiency is now a significant investor demand.
EY: Exploring Pathways to Growth - Global Hedge Fund and Investor Survey
17
Striking a balance – achieving efficiency
The three cornerstones of operational efficiencyOperational efficiency is clearly a pressing concern for today’s hedge funds, with 62% considering it among their top three priorities.5 Achieving efficiency, however, can involve something of a balancing act. On the one hand, a hedge fund’s operations must meet the stringent demands of regulators and stakeholders. On the other, the firm must safeguard its own profitability.
Hedge funds can better address these conflicting challenges by breaking them down into three component objectives, namely to:
Reduce operating costs Driven by fee pressure to focus on their overheads and expenditure, hedge funds can take advantage of technological innovation to maintain effective operations with markedly fewer resources. By investing in higher levels of automation and sophistication, many have been able to permanently and optimally streamline their operations. As EY states: “Although managers have traditionally sought to reduce costs through lowering headcount, they have begun to employ innovative tactics in their front-end and back-end offices…Managers continue to make investments to upgrade legacy trading systems, enterprise infrastructure and risk management. These are viewed as strategic investments driven by the pursuit of performance and efficiency.”6
Fig 1. Q. In current market conditions, how
challenging is achieving operational efficiency to the portfolio management and accounting process?
Aite Group – Trends and Challenges in Investment Management Operations
However, in its global research report7, Aite Group has revealed that 43% of hedge funds find it either “very” or “extremely” challenging to achieve operational efficiency across their portfolio management and accounting processes.
30% claim that operational cost pressures, including lack of personnel resources, are “very” or “extremely” problematic in this regard. For another 33% a lack of automation proves just as much of an issue. However, nearly half of respondents cite regulatory uncertainty, and its potential impact on operational decisions, as a highly important obstacle to efficiency. In other words, a persistent lack of clarity about regulation is preventing firms from putting the necessary operations and procedures in place.
While understandable, this level of procrastination is becoming less affordable, as pressure on fees and margins compounds the need for hedge funds to reduce their operating costs. Agecroft Partners predicts an ongoing decline in hedge fund fees, explaining that: “Although we see very little pressure on the standard fee that small and medium size investors are paying to hedge funds, there is significant fee pressure from large institutional investors. This pressure is expected to increase as large institutions represent a larger percentage of the market.”8
With operating costs currently representing a high proportion of hedge fund expenditure, there is enormous scope for hedge funds to relieve margin pressure by improving efficiency. Citi Prime Finance has reported: “Operations and technology expenditures absorb the highest share of a hedge fund’s costs regardless of size…Small hedge funds on average allocate 40% of their expenses to operations and technology. This grows to 44% for medium-sized firms, 49% for large managers and 54% for franchise organizations.”9
5 EY: Exploring Pathways to Growth - Global Hedge Fund and Investor Survey6 EY: Exploring Pathways to Growth - Global Hedge Fund and Investor Survey7 Aite Group: Hedge Fund Trends and Challenges - Achieving Institutional
Credibility
8 Agecroft Partners: Top 10 Industry Trends9 Citi Prime Finance: Hedge Fund Business Expense Survey - Industry-wide
Benchmarks for Managing a Hedge Fund Organization
18%
39%5%
38%
Not at all or not too challenging
Somewhat challenging
Extremely challenging
Very challenging
18
Strengthen infrastructure Today’s hedge funds clearly recognize the critical contribution that their investment management platform makes to efficiency gains. According to Aite Group’s survey10, 78% of hedge funds rate their infrastructure as either “very” or “extremely” important for achieving operational efficiency. Many firms in the survey also reported significant recent expenditure on portfolio management and accounting systems.
Just under a third of hedge funds rate infrastructure as “extremely” important for risk management, and almost a quarter as “extremely” important when it comes to handling regulatory pressures and charges. But nearly half believe their investment management infrastructure to be “very” or “extremely” important for achieving institutional credibility. Certainly, infrastructure plays a major role in due diligence, as investors seek the assurance that operational procedures are present, correct and rigorous. As a result, due diligence questionnaires are increasing in length and need for operational detail.
Fig 2. How many separate components support your portfolio-management and accounting operation?
Aite Group – Trends and Challenges in Investment Management Operations
Although only 15% currently report a platform that is hosted in its entirety by a third-party vendor, Aite Group has concluded that hedge funds are more likely to outsource parts of their investment management infrastructure than any other operation. Nearly a quarter expect to do so in the next three years; and those most likely to outsource cited a desire to reduce their costs and increase operational simplicity.
Whether or not firms currently outsource or plan to in the future, the majority consider front-to-back holistic functionality as the greatest benefit of using a single vendor for all associated technology and services. Other key benefits include the vendor’s experience and customer service abilities, plus potential increases in operational and cost efficiency.
10 Aite Group: Hedge Fund Trends and Challenges - Achieving Institutional Credibility
Don’t know050505050
40%
35%
5%5%
15%
Only 1 2 to 5 6 to 9 10 or more
19
Support multiple strategies and complex instrumentsComplexity is the hallmark of many hedge fund strategies, focusing as they often do on multiple asset classes or specialist instruments such as over-the-counter derivatives or bank debt: the trading of secured loans to companies that now face some kind of distress, such as the threat of bankruptcy. HFM Week Online recently reported that: “Multi-asset funds…remain the largest asset class with total AUM of $1.01trn”11
To meet potential investor requirements, hedge fund operations must clearly be able to manage a broad range of strategies and asset classes, and process complex securities as efficiently as possible.
Bank debt provides an excellent case in point when it comes to the operational challenges of managing more complex instruments. There is typically a significant checklist of requirements that must be met before a bank debt trade can be executed and settled, involving more lawyers, negotiations, covenants and documentation than, for example, equity trades. Settlement times can therefore be protracted, tying up lender capital for 30 days or more and introducing increased levels of risk.
All of which makes it critical for hedge funds to streamline their own processes and workflows. Given the various moving parts to settling and administering bank debt, implementing the right technology and straight-through processing (STP) is crucial. The leveraged loan market does not conform to a one size fits all solution. Debt restructurings can be difficult to navigate from a transaction processing standpoint since some loans can restructure into other types of debt. At the same time, each hedge fund has a different way of managing accruals for par and distressed loans that go past T+7 and T+20, respectively. Many systems are ill-equipped to handle these complicated restructurings, accruals and delayed comps, forcing operations executives to resort to internally developed spreadsheets or manual processes.
Bank debt is just one strategy among many available to hedge funds. For continued growth in today’s competitive market, a firm needs the ability to add new strategies and bring new funds rapidly to market, in line with investor demand and arising opportunities. An automated system designed to manage one asset class cannot accommodate the trade and process flows associated with another. In these situations, workarounds and manual processes can easily take hold, threatening long-term efficiency and increasing risk.
11 HFM Week Online: February Best Month for Inflows Since 2008, New Data Suggests
78% of survey respondents recognize their investment management technological infrastructure as being of vital importance in the road to operational efficiency.
Aite Group: Hedge Fund Trends and Challenges - Achieving Institutional Credibility
20
A front-to-back vision of operational efficiency
Automation versus integrationAlthough investment management systems are increasingly seen as a key way to achieve operational efficiency, a robust, cost-effective yet highly flexible platform remains an elusive goal for many hedge funds.
On the one hand, the hedge fund industry has been relatively quick to adopt automation, driven by broader developments in financial services technology. With widespread use of DTCC and Omgeo for automated trade matching, manual confirmations by telephone and fax are becoming less common.
On the other, despite being highly automated, the sheer multitude of disparate systems that hedge funds use can hamper overall efficiency. Aite Group’s research shows that firms deploy an average of five different portfolio management and accounting solutions and some more than ten separate components. Only 15% currently operate a single platform spanning from the front to the back office.12
Fig 3. How important is the role of your investment management platform in the following?
Source: Aite Group – Trends and Challenges in Investment Management Operations
Defining the operations of the future
As well as a lack of integration between their different systems, hedge funds’ front, middle and back offices each face their own operational challenges. By solving the following specific problems, firms will be in a stronger position to ensure highly efficient, institutionally credible operations in the long term.
Getting the right view in the front office Within the front office, different hedge fund professionals need access to diverse sets of information. An operations executive may wish to see the positions or net asset value (NAV) of a fund; an analyst may be more interested in assessing the fund’s exposure to certain industries; for the portfolio manager, the priority may be an accurate indication of profit and loss (P&L) and Greeks. Operationally, the challenge is to provide these different views and levels of data in a timely fashion, especially for rapid decision-making.
Without the ability to slice and dice data in this way through an integrated portfolio management system, a front office may resort, for example, to loading market data into a spreadsheet. This can often result in one manager making trading decisons that is not communicated throughout the firm and increasing the possibility for trading loss and operational risk.
35%
Achieving operational
efficiency
Not at all or not too important
20 40 60 80 100 120
Meeting needs related to risk management
Achieving institutional
credibility
Dealing with regulatory pressures
and changes
15% 8% 55% 23%
5% 23% 43% 30%
5% 25% 49% 21%
8% 38% 35% 23%
Somewhat important Very important Extremely important
12 Aite Group: Hedge Fund Trends and Challenges - Achieving Institutional Credibility
21
Mastering data in the middle officeIn a hedge fund, the middle office’s scope of responsibility generally spans from the point a trading decision has been made until confirmation has been received. It therefore has to process, manage and report on enormous volumes of trade and risk data. And while matching systems such as DTCC and Omgeo are very efficient, the rapid execution of multiple trades can place a large demand on internal resources. Here, the need for a single, integrated platform increases: the ability to enter a trade only once, rather than repeatedly across different systems, will reduce both effort and risk.
Regulatory and risk management account for another substantial part of middle-office activity. Of progressively onerous regulatory requirements for hedge funds, PwC says: “New tax and regulatory requirements, investor expectations, the globalization of asset management and mounting product complexity are all increasing information reporting needs.”13
Clearly, these increasing demands make improved data management and system integration more vital than ever.
Automating the back officeIn the back office, the effective automation of fund accounting and NAV reconciliation processes continues to challenge many hedge funds. A fund’s NAV will comprise many individual components, not necessarily standard across the industry, with fee structures, lengths of accrual, amortization and so on varying widely from fund to fund.
As a result, NAV calculation and reconciliation in general still often involve largely manual processes. But with settlement processing moving rapidly towards two-day matching, robust, flexible, integrated and highly automated reconciliation tools and workflow are becoming increasingly critical to ensuring the accuracy of risk and regulatory reporting data.
PwC adds: “Evolving regulatory regimes, combined with greater and more complex transaction volumes, are stretching front-, middle- and back-office systems. So asset managers are designing enhanced operations’ architectures that improve reporting and operations’ efficiency, by implementing a range of initiatives including outsourcing, workflow management and improved data management. They’re also integrating reporting systems for different asset classes that were previously separate.”14
13 PwC: Top Issues Facing Asset Managers14 PwC: Top Issues Facing Asset Managers
22
Conclusion: bringing operations together
For the sake of both institutional credibility and their bottom line, hedge funds – like the rest of the financial services industry – are learning to embrace the efficiencies offered by innovative technology and data management solutions. Some manual processes persist, but increasingly hedge fund operations are characterized by automation and STP.
However, for a hedge fund to be truly efficient, its different operational areas need to work more closely together: sharing a single source of data; reducing silos; enhancing overall transparency.
As regulation increases and settlement times continue to reduce, minimizing the numbers of systems they use and streamlining their operations will help firms avoid operational conflicts, duplicated effort, manual error and unnecessary risk. Ultimately, by creating a seamless, integrated infrastructure, and taking advantage of cost-effective cloud deployment models, hedge funds will be able to build the optimal levels of efficiency that investors and regulators demand.
Hedge Fund Trends and Challenges: Achieving Institutional Credibility - Global research undertaken by independent analyst firm Aite Group and SunGard. The research surveyed 40 senior executives and managers from Tier I and Tier II hedge funds in the US, Europe and Asia Pacific.
23
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H E D G E F U N D P E R F O R M A N C E (as of April 30, 2015)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Acorn Diversified Program 88.000 -3.07 0.65 13.14 4.14 18.08 14.89 6.13 21.82 -5.20 -17.77 12.48 15.03 -0.25 19.05 -0.19 -0.30 96.93 52.86
Agilith North American Diversified Fund 40.600 -1.90 4.25 7.37 2.69 5.20 24.40 17.66 29.54 -5.61 -46.04 11.22 11.93 0.70 2.47 0.58 0.41 96.96 60.44
AlphaNorth Partners Fund Class A 70.000 -3.80 -3.64 -16.52 -8.36 -34.66 -21.67 4.51 12.77 -30.16 -66.07 16.55 21.75 1.30 -39.72 0.73 0.53 33.93 53.93
AlphaNorth Partners Fund Class F - 9.70 -3.98 -19.95 -5.81 -27.89 -10.74 11.41 43.27 -37.53 -63.29 28.66 23.21 -0.37 -26.45 -0.12 -0.48 53.53 55.17
Anson Catalyst Master Fund, LP 97.000 0.20 -4.07 5.05 -3.58 17.35 - 13.19 21.63 -4.13 -6.42 9.74 - -0.08 17.66 -0.08 0.22 95.93 78.57
Auspice Diversified Trust Class A - -1.08 -2.63 13.78 2.01 25.85 1.87 1.75 30.66 -13.21 -26.88 12.92 10.48 -0.44 27.56 -0.32 -0.32 94.99 52.24
Auspice Diversified Trust Class S - -0.98 -2.45 13.81 2.01 25.88 1.86 0.37 30.45 -13.21 -26.94 12.81 10.43 -0.43 27.55 -0.31 -0.30 94.94 48.08
Auspice Managed Futures LP. - -0.98 -2.43 13.91 2.13 26.31 2.06 3.64 30.69 -13.44 -26.39 12.83 10.49 -0.43 27.98 -0.31 -0.31 96.00 50.46
Barometer Long Short Equity Pool Class A 6.660 -3.39 2.22 8.12 4.60 9.90 11.62 6.43 19.41 -12.55 -32.59 11.47 12.68 0.75 6.98 0.61 0.40 96.61 57.58
Barometer Tactical Exchange Traded Fund Pool - -7.39 -2.02 10.38 1.66 28.15 9.68 7.38 33.07 -9.69 -18.59 14.80 12.55 -0.52 30.18 -0.33 0.28 92.61 60.71
Blackheath Futures Fund L.P. Class A 2.180 1.59 -5.31 4.73 2.92 10.54 -0.02 2.38 38.25 -18.69 -31.53 23.39 20.46 -1.18 15.14 -0.47 -0.29 89.64 61.19
Blackheath Volatility Arbitrage Fund L.P. Class A 13.610 -0.89 -5.23 -12.17 -13.10 -13.51 -3.51 1.28 19.33 -18.11 -20.64 13.33 11.66 0.62 -15.92 0.43 0.48 79.36 50.91
Bloom Burton CDN Healthcare Fund - 6.55 31.15 76.65 43.01 33.67 - 74.36 102.34 -28.69 -29.47 34.57 - 1.20 29.00 0.32 0.09 100.00 60.00
Broadview Dark Horse LP 37.100 -0.46 3.52 5.00 2.03 4.97 10.44 14.90 12.93 -2.42 -7.41 4.24 5.07 -0.06 5.20 -0.13 0.21 99.54 78.08
Brompton Energy Opportunities Fund Series 2009 8.680 12.81 19.78 -13.37 12.73 -36.35 -9.61 11.52 34.63 -44.54 -47.81 34.39 26.53 2.54 -46.24 0.69 0.39 62.52 57.75
Brompton Energy Opportunities Fund Series 2010 2.730 12.81 19.78 -13.37 12.73 -36.35 -9.65 -3.62 34.44 -44.54 -55.73 34.39 26.52 2.54 -46.24 0.69 0.39 53.03 52.54
Brompton Energy Opportunities Fund Series A 3.720 12.80 19.76 -13.43 12.71 -36.57 -9.79 -0.27 34.18 -44.59 -52.21 34.33 26.50 2.53 -46.42 0.69 0.39 62.46 56.96
Brompton Energy Opportunities Fund Series F 2.301 12.89 19.96 -13.07 13.04 -36.13 -9.14 -6.26 34.17 -44.34 -56.05 34.30 26.41 2.53 -45.98 0.69 0.39 52.72 52.46
BSP Absolute Return Fund L/S Eq. US$ - -0.47 2.61 4.85 3.24 7.52 5.70 4.59 7.21 -2.10 -5.35 3.06 3.44 0.10 7.13 0.31 0.37 99.53 69.39
BSP Absolute Return Fund Multi Strat.US$ - -0.49 1.91 4.52 2.62 6.12 5.44 5.58 5.68 -1.30 -15.21 2.76 2.62 0.06 5.89 0.22 0.16 99.51 73.91
BT Global Growth Fund L.P. - 0.80 6.70 19.26 11.92 16.10 17.77 13.59 30.32 -3.69 -40.84 8.24 10.38 0.38 14.62 0.43 0.00 100.00 64.08
Burlington Partners Plus LP - 2.04 3.07 -0.17 4.53 10.98 15.39 12.64 17.07 -0.17 -14.40 11.33 7.96 0.75 8.06 0.62 0.63 98.73 69.49
Burlington Partners1 LP - 1.22 2.10 -0.02 3.36 7.19 9.51 6.05 11.10 -0.30 -13.27 7.23 5.27 0.49 5.28 0.63 0.60 99.22 65.04
Calrossie Partners Fund - 1.70 5.19 7.16 2.97 14.15 19.12 11.49 16.53 3.90 -35.06 8.57 7.82 0.66 11.58 0.72 0.88 100.00 68.24
ChapelGate Credit Opportunity Fund Ltd. 556.443 0.95 2.08 1.82 2.38 3.95 11.66 13.12 12.94 0.05 -4.23 1.93 3.53 0.11 3.52 0.54 0.17 100.00 88.50
Claret Global Multi-Asset L.P. 7.550 -5.06 -0.46 33.65 16.60 52.61 14.68 14.09 38.86 -13.52 -14.96 19.56 16.30 -0.11 53.04 -0.05 -0.43 94.94 66.67
DKAM Capital Ideas Fund 363.000 0.17 10.09 16.63 12.69 28.53 30.48 28.59 33.42 4.96 -11.98 6.16 8.59 0.30 27.36 0.46 0.56 100.00 78.48
Dynamic Alpha Performance Fund Series A 442.522 -1.19 3.27 6.15 7.65 10.65 6.34 7.04 9.21 -1.75 -15.50 5.89 5.77 0.11 10.22 0.17 0.02 98.81 61.29
Dynamic Alpha Performance Fund Series F - -1.20 3.37 6.57 7.83 11.47 7.26 7.32 9.71 -1.17 -15.12 5.79 5.60 0.09 11.12 0.15 -0.02 98.80 60.36
Dynamic Alpha Performance Fund Series FH U$ - -1.04 3.61 6.29 7.69 10.80 - 7.33 9.23 -1.50 -3.74 5.59 - 0.11 10.37 0.18 0.04 98.96 62.50
Dynamic Alpha Performance Fund Series H - -1.25 3.16 5.31 7.14 9.48 - 6.79 8.59 -2.27 -4.18 5.70 - 0.07 9.21 0.11 -0.02 98.75 62.86
Dynamic Alpha Performance Fund Series T 7.880 -1.23 3.26 6.22 7.60 10.72 6.33 5.52 9.31 -1.73 -8.47 5.83 5.71 0.10 10.33 0.16 0.01 98.77 57.38
Dynamic Contrarian Fund 4.186 -0.54 4.33 15.17 11.01 -1.61 -2.52 1.35 15.17 -14.57 -63.12 15.82 10.24 0.44 -3.32 0.26 -0.30 56.29 52.14
Dynamic Income Opportunities Fund 46.984 1.66 1.98 1.88 2.43 8.53 9.72 8.89 14.39 -1.26 -29.50 5.62 6.22 0.47 6.70 0.78 0.65 99.62 69.52
Dynamic Power Hedge Fund Series C 32.630 0.87 -9.73 -25.03 -10.68 -27.40 -18.82 6.14 13.30 -31.95 -79.61 16.66 17.47 0.15 -27.98 0.08 -0.31 32.52 51.59
EHP Advantage Fund Class A - -4.50 -1.91 7.03 3.32 18.66 - 25.08 17.93 6.99 -4.50 9.33 - -0.03 18.78 -0.03 0.15 95.50 87.50
EHP Select Fund - 3.00 9.90 22.75 11.66 - - - - - 0.00 - - - - - - 100.00 100.00
Exemplar Diversified Portfolio Series A 47.910 -4.12 -4.89 18.75 6.06 31.74 6.40 5.09 31.72 -16.67 -21.78 15.09 13.09 -0.20 32.52 -0.12 -0.43 95.11 55.56
Exemplar Diversified Portfolio Series F - -4.16 -4.72 18.05 6.30 31.66 8.84 10.26 31.05 -9.36 -9.36 14.68 11.86 -0.20 32.44 -0.13 -0.45 95.28 61.02
Fiera Long Short Equity Fund Class A - -0.05 1.36 7.89 0.78 21.87 17.80 14.25 19.17 -7.05 -20.32 5.12 6.79 -0.05 22.06 -0.09 0.26 99.95 67.92
Fiera Long/Short Equity Fund Class F - 0.11 1.67 9.62 7.64 26.00 20.01 15.05 19.68 -3.98 -19.53 7.21 7.06 -0.23 26.90 -0.30 -0.41 100.00 70.69
Fiera Market Neutral Equity Fund Class A 34.240 -0.73 -0.40 2.55 -1.36 11.93 4.85 2.13 11.47 -7.59 -21.23 4.60 5.12 -0.11 12.36 -0.22 0.14 96.70 56.41
Fiera Market Neutral Equity Fund Class F 47.900 -0.64 -0.16 2.32 -0.94 12.96 2.95 2.84 11.23 -7.52 -20.34 4.19 4.64 -0.06 13.19 -0.13 0.15 95.27 60.27
Forge First Long/Short LP - 1.01 7.31 20.17 11.64 19.41 - 32.15 30.61 -0.63 -5.28 8.85 - 0.43 17.74 0.45 0.11 100.00 84.85
Forge First Multi Strategy LP - 0.47 5.22 14.89 8.56 13.90 - 23.96 22.04 -0.86 -3.58 6.47 - 0.26 12.89 0.37 0.01 100.00 81.82
Formula Growth Alpha II Fund Class B 103.900 2.12 6.33 5.53 6.60 1.97 9.73 8.00 12.69 -7.62 -17.40 8.00 6.73 0.36 0.57 0.42 0.16 98.61 66.67
Formula Growth Focus Fund Class F 30.500 2.39 8.53 4.36 8.55 4.76 - 8.44 14.91 -13.28 -13.28 14.68 - 0.63 2.31 0.40 0.37 94.14 64.29
Formula Growth Global Opportunities Fund Cl. S C$ 79.600 8.49 14.60 15.88 16.87 24.30 22.10 10.72 27.73 -2.64 -24.00 12.76 12.39 0.16 23.68 0.11 -0.24 100.00 63.16
Formula Growth Hedge Fund Class F C$ 243.600 -1.35 2.97 10.81 9.25 12.92 14.25 17.25 15.73 -1.33 -20.73 7.76 7.40 -0.07 13.19 -0.09 -0.40 98.65 64.67
Formula Growth Hedge Fund Class F U$ 196.200 3.23 8.05 3.08 4.56 2.10 6.75 19.53 16.01 -6.95 -25.96 8.66 8.38 0.47 0.27 0.51 0.54 97.90 67.79
H E D G E F U N D P E R F O R M A N C E (as of April 30, 2015)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Friedberg Asset Allocation Fund 56.290 -0.80 3.06 -2.21 5.11 0.40 -1.05 7.61 9.37 -9.98 -11.62 9.30 8.92 0.28 -0.69 0.28 0.23 95.85 60.87
Friedberg Global Macro Hedge Fund U$ 125.350 -14.48 -11.38 -4.96 -5.23 -35.55 -20.87 6.42 35.68 -41.98 -54.71 27.70 29.57 -0.57 -33.33 -0.19 -0.13 45.29 54.26
Front Street Canadian Energy Resource Fund Ser B 12.360 16.08 14.79 -22.80 -2.76 -43.27 -12.88 1.49 69.78 -54.87 -72.55 42.21 35.15 3.43 -56.63 0.76 0.42 32.07 61.79
Front Street Canadian Energy Resource Fund Ser F 0.490 16.18 15.12 -22.34 -2.38 -42.62 -11.97 -11.07 70.72 -54.62 -71.52 42.24 35.21 3.43 -55.98 0.75 0.42 33.09 55.17
Front Street Canadian Hedge Fund Series B 111.920 0.25 5.50 4.51 4.47 4.61 9.16 11.22 18.92 -5.86 -43.40 8.73 8.07 0.74 1.73 0.79 0.59 98.70 64.36
Front Street Canadian Hedge Fund Series F 6.040 0.34 0.63 - 0.63 - - - - - 0.00 - - - - - - 100.00 100.00
FrontFour Opportunity Fund 485.000 2.22 7.88 4.26 5.29 -0.23 9.98 10.78 17.26 -8.49 -9.98 9.41 8.59 0.61 -2.61 0.60 0.36 97.11 67.39
GFM 130/30 Fund - 1.62 1.46 -0.08 1.86 -7.55 4.63 8.78 16.25 -12.36 -20.72 10.57 11.04 0.96 -11.29 0.84 0.52 89.27 63.29
GFM Market Neutral Fund - -4.16 -6.31 -5.32 -4.94 -8.20 -1.79 2.92 6.46 -6.82 -10.92 7.68 6.12 -0.31 -6.99 -0.38 -0.09 89.08 55.70
Goodwood Fund Class A 11.930 2.52 10.42 7.29 5.58 7.32 8.57 10.31 19.62 -4.11 -55.80 10.68 9.76 0.74 4.44 0.64 0.83 80.49 63.06
Goodwood Milford Fund - -2.27 -0.84 0.84 -1.76 5.39 11.89 15.94 16.23 -1.74 -49.99 6.48 5.23 0.07 5.12 0.10 -0.10 97.73 72.32
HGC Arbitrage Fuld LP - 0.01 2.61 3.88 3.26 14.48 - 21.59 22.44 2.73 -0.59 4.31 - 0.07 14.21 0.15 0.06 100.00 91.30
Hillsdale Canadian Long/Short Equity Fund Class A 4.310 -2.39 -0.10 2.40 -0.34 -0.85 4.20 7.25 17.98 -5.73 -24.49 6.34 8.25 0.25 -1.82 0.36 0.44 97.61 58.70
Hillsdale Enhanced Income Fund Class A 9.200 -0.20 0.35 -2.09 1.15 -0.84 3.30 3.45 9.90 -8.22 -11.70 5.25 7.53 0.31 -2.05 0.56 0.35 95.29 64.81
Hirsch Performance Fund 37.690 -1.97 4.03 4.79 4.38 11.66 9.51 10.42 15.40 -11.12 -41.19 7.03 8.53 0.30 10.49 0.40 0.48 98.03 63.86
IA Multi-Strategy 1.420 0.74 1.97 7.44 8.13 10.95 11.05 0.12 35.52 -4.10 -38.57 9.52 14.69 0.39 9.43 0.38 -0.26 89.74 46.94
IBV Capital Global Value Fund LP - 1.10 7.04 0.94 4.68 - - - - - -5.70 - - - - - - 100.00 62.50
IMFC Global Concentrated Program - -2.40 -5.33 14.32 4.30 23.11 4.12 4.67 25.99 -13.50 -17.77 12.77 11.66 -0.06 23.34 -0.05 -0.41 94.67 52.05
IMFC Global Investment Program - -4.70 -5.11 20.87 7.30 35.35 8.52 10.53 34.90 -16.05 -21.06 16.31 13.57 -0.22 36.21 -0.13 -0.45 94.89 53.54
Inflection Strategic Opportunities Fund - -5.12 -1.11 15.76 9.62 18.99 17.40 12.66 21.49 -1.17 -8.73 12.79 9.10 -0.26 20.00 -0.19 -0.39 94.88 67.69
JC Clark Adaly Fund Class A - 2.36 12.48 13.84 13.50 52.68 23.85 15.90 57.13 -6.60 -35.68 24.23 16.83 1.59 46.49 0.61 0.29 100.00 69.57
JC Clark Adaly Fund Class B - 2.26 12.16 13.21 13.06 51.14 22.77 10.07 56.59 -6.85 -36.14 24.26 16.82 1.59 44.95 0.61 0.29 100.00 65.47
JC Clark Focused Opportunities Fund (Class A) - -1.60 -3.49 -4.12 -6.03 -4.01 8.48 6.37 19.24 -4.12 -14.02 5.62 7.72 0.10 -4.40 0.17 0.77 93.97 64.71
JC Clark Patriot Trust (Class B) - 0.00 2.64 0.61 1.16 0.84 5.25 8.15 16.55 -6.11 -29.64 8.68 10.16 0.79 -2.24 0.85 0.78 92.77 63.95
JC Clark Preservation Trust (Class B) - 0.27 -0.05 -1.29 -2.73 1.77 11.55 10.62 18.60 -2.23 -22.61 6.56 7.51 0.17 1.11 0.24 0.47 97.05 59.69
JM Catalyst Fund 28.600 -1.27 0.18 2.67 1.23 5.53 14.03 12.67 13.82 1.86 -3.31 2.78 3.90 -0.07 5.80 -0.22 0.06 98.73 79.55
Kensington Hedge Fund 1 Series A+E+F 44.000 0.25 2.70 2.06 2.38 1.26 7.49 7.27 8.68 -2.35 -2.71 2.95 3.30 0.19 0.52 0.60 0.31 99.91 78.57
KFL Partners' Fund LP 4.500 0.24 -1.84 0.54 0.27 5.91 - 19.53 25.67 0.54 -5.61 8.91 - -0.03 6.03 -0.03 0.47 96.93 70.59
King & Victoria Fund LP - 0.10 1.10 -1.45 -0.01 1.82 19.73 23.52 35.96 -5.92 -32.14 5.72 8.78 0.38 0.34 0.62 0.48 94.92 75.16
King & Victoria RSP Fund Class A Units - 0.10 1.10 -1.46 -0.01 1.81 19.48 15.66 35.96 -5.93 -33.73 5.72 8.81 0.38 0.33 0.62 0.48 94.91 70.63
Landry Global Equity Long/Short Fund Series A - -2.51 -3.50 -1.34 -2.13 -2.20 4.89 -0.41 8.48 -2.53 -27.24 4.09 4.76 0.03 -2.32 0.07 0.19 87.22 54.21
Landry Global Equity Long/Short Fund Series F 29.100 -2.42 -3.22 -0.77 -1.76 -1.04 6.90 4.22 10.40 -1.94 -26.44 4.09 5.10 0.03 -1.16 0.07 0.18 95.67 58.33
Landry Global Equity Long/Short Fund Series I - -2.33 -2.95 -0.21 -1.40 0.09 6.03 0.99 9.62 -2.47 -25.62 4.10 5.06 0.03 -0.03 0.07 0.18 95.85 57.28
Lightwater Long/Short Fund - Class A - 2.06 7.27 9.99 8.55 11.43 16.69 5.11 40.90 -6.31 -33.19 6.11 11.44 0.17 10.77 0.26 -0.31 100.00 63.64
Lightwater Nimble Fund - 1.62 57.41 59.34 58.13 52.52 - 46.75 59.34 -9.30 -12.77 34.13 - 0.61 50.14 0.17 0.13 100.00 73.08
Lycos Value Fund Class O 3.200 -4.53 5.71 -9.31 -14.52 6.83 14.83 15.62 37.55 -12.42 -25.66 32.52 26.75 0.77 3.83 0.22 0.61 78.59 58.11
Lycos Value Fund Class P 0.900 0.48 1.45 2.94 1.93 6.01 6.02 6.00 3.10 2.82 0.00 0.09 0.14 -0.01 6.05 -0.69 -0.64 100.00 100.00
Majestic Global Diversified Fund 29.000 -4.90 -5.00 13.65 0.03 42.57 4.55 4.90 36.29 -20.07 -32.95 13.35 17.23 -0.54 44.67 -0.37 -0.26 95.00 52.50
Majestic Global Diversified Fund Series A - -4.89 -5.02 13.94 0.07 27.94 0.88 4.14 32.10 -20.03 -33.00 12.23 16.84 -0.42 29.58 -0.32 -0.12 87.84 51.32
Majestic Global Diversified Fund Series I - -4.80 -4.77 12.93 0.81 25.18 -0.93 -2.20 29.31 -20.22 -30.37 11.45 17.42 -0.39 26.70 -0.32 -0.16 87.97 52.17
Maxam Diversified Strategies Fund Series A - 3.18 6.56 9.25 7.18 24.01 19.93 13.99 18.47 0.66 -16.15 6.06 6.53 0.47 22.18 0.72 0.42 100.00 67.14
Meson Capital Partners Fund - 1.58 3.72 -16.81 -10.32 -5.29 -10.71 18.51 28.10 -23.98 -59.12 28.33 24.82 -1.22 -0.54 -0.40 -0.18 45.44 51.35
NewGen Trading Fund LP (NGTF) 75.500 -2.70 3.70 5.72 5.08 10.14 - 21.59 22.41 -4.62 -5.57 9.87 - 0.03 10.02 0.03 0.07 97.30 88.24
Niagara Discovery Fund 9.100 -1.90 -5.40 3.44 -4.33 14.18 3.17 10.02 23.80 -9.86 -16.17 12.49 10.32 -0.44 15.89 -0.33 0.03 94.60 52.94
Niagara Legacy Class B Fund 25.500 -14.60 -13.38 -1.46 -9.31 -15.45 -19.48 5.23 13.54 -41.54 -57.77 22.55 25.17 -0.09 -15.10 -0.04 0.15 42.23 55.93
Norrep Market Neutral Income Fund 28.210 -1.98 -2.72 -3.73 1.17 -2.52 3.39 6.00 7.07 -4.97 -5.16 7.35 6.09 -0.16 -1.90 -0.20 -0.41 95.95 59.62
Norrep Market Neutral Income Fund Series F 4.421 -1.89 -2.42 -3.16 1.58 -1.43 4.48 7.07 7.61 -4.43 -4.71 7.35 6.09 -0.16 -0.81 -0.20 -0.41 96.79 59.62
Northern Rivers Conservative Growth Fund LP 19.615 -1.41 2.54 2.09 5.71 1.98 11.97 10.16 21.80 -4.86 -49.62 8.76 8.93 0.61 -0.40 0.65 0.32 96.29 64.04
Northern Rivers Global Energy Fund LP 1.027 1.65 6.50 -13.59 1.09 -34.24 -3.74 2.16 28.38 -35.45 -61.25 21.00 17.60 1.55 -40.28 0.69 0.33 65.76 61.40
Palos Equity Income Fund Series A - 1.31 7.49 2.60 5.34 4.00 9.79 4.97 14.40 -7.31 -12.97 10.67 8.18 0.94 0.34 0.82 0.75 96.88 58.82
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H E D G E F U N D P E R F O R M A N C E (as of April 30, 2015)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Palos Income Fund, L.P. 130.000 1.91 6.73 1.03 4.08 1.02 11.88 11.58 15.42 -8.60 -40.08 13.39 9.57 1.20 -3.65 0.83 0.79 93.93 70.12
Palos IOU High Yield Fund - 1.72 3.68 5.05 4.50 11.21 - 10.45 5.87 3.76 0.00 2.01 - -0.10 11.60 -0.44 -0.07 100.00 100.00
Pathway Energy Series A Rollover MIN002 2.100 5.04 5.56 -18.14 2.80 -18.73 -24.74 -27.78 23.77 -32.83 -93.59 24.73 22.64 0.30 -19.90 0.12 -0.11 6.76 47.62
Pathway Multi SF Explorer Series A Rollover MIN001 37.000 -10.20 -12.80 -28.08 -13.73 -44.21 -45.47 -24.55 -1.04 -45.21 -96.91 22.44 23.81 0.17 -44.87 0.07 -0.20 3.09 40.00
Picton Mahoney Diversified Strategies Fund Class A 17.310 -0.66 1.76 3.05 3.23 4.80 7.28 6.96 8.67 -1.09 -7.99 3.47 3.86 0.24 3.87 0.64 0.29 99.34 64.06
Picton Mahoney Global Long Short Equity Fd Cl A C$ 21.460 -1.83 1.95 6.14 4.07 13.78 11.25 4.07 13.21 -1.18 -25.98 4.85 6.63 0.13 13.27 0.24 0.31 98.17 62.92
Picton Mahoney Global Long Short Resource Cl A 2.910 3.18 0.91 -1.70 2.15 -14.39 1.56 0.02 12.89 -19.81 -20.61 12.41 10.48 0.93 -18.01 0.70 0.00 81.91 56.10
Picton Mahoney Global Market Netural Equ Cl A C$ 45.560 -2.03 -1.41 -0.65 -0.96 4.30 3.80 1.84 6.14 -2.07 -17.21 3.85 3.90 -0.02 4.38 -0.04 -0.05 97.97 60.67
Picton Mahoney Income Opportunities Fund Class A 284.270 1.02 3.92 -0.45 4.36 0.74 5.48 6.29 7.09 -5.43 -9.14 4.89 3.86 0.18 0.04 0.34 0.11 98.27 73.44
Picton Mahoney Long Short Equity Fund Class A 109.210 -0.27 3.55 3.79 2.67 2.40 7.37 10.30 10.77 -3.02 -24.86 5.47 5.11 0.47 0.57 0.80 0.64 99.59 67.86
Picton Mahoney Market Neutral Equity Fund Class A 215.240 -1.12 -0.03 1.40 -0.03 1.11 2.66 7.44 4.28 -0.29 -4.63 2.51 1.99 0.00 1.11 0.01 -0.06 98.88 66.07
Primevestfund - 5.52 3.90 -7.17 -4.04 -8.04 1.01 9.78 32.69 -21.09 -46.13 21.66 19.13 1.96 -15.67 0.84 0.58 73.09 62.71
Radin Global Opportunities Fund Fd Class Series F - 1.01 5.45 4.26 5.31 6.75 - 13.05 14.40 -0.08 -2.59 4.32 - 0.05 6.56 0.10 0.00 100.00 64.52
RCM Special Situations Fund - 0.40 7.04 4.65 5.86 1.12 9.98 14.77 24.28 -6.55 -28.56 9.32 10.07 0.72 -1.68 0.72 0.74 98.92 69.23
Roadmap Trust 3.071 8.38 -3.22 -12.90 -7.11 -31.89 -1.05 0.40 43.99 -24.96 -71.54 21.66 26.10 1.10 -36.17 0.47 0.30 43.41 52.24
Rosalind Capital Partners L.P. 19.000 0.50 4.76 10.50 12.94 24.63 28.27 19.34 47.73 -6.89 -40.85 17.58 18.12 1.11 20.31 0.59 0.08 100.00 65.98
Ross Smith Capital Investment Fund 34.402 0.03 1.85 3.36 1.64 5.90 7.23 9.63 6.04 2.17 -17.17 2.12 2.32 0.01 5.86 0.05 0.31 100.00 72.62
Ross Smith Opportunities Fund 31.827 -0.63 5.40 11.34 8.06 8.07 10.15 9.09 11.34 -2.94 -5.84 7.58 5.33 0.54 5.97 0.66 0.28 99.37 72.50
SEI Futures Index Fund Class F 0.710 -3.32 -3.23 3.88 -0.82 7.36 -0.33 1.66 11.17 -6.37 -9.95 6.44 4.58 -0.42 9.00 -0.60 -0.50 96.68 51.85
SEI Futures Index Fund Class O 13.090 -3.30 -3.07 4.34 -0.58 8.30 0.73 2.64 11.76 -5.88 -8.66 6.50 4.60 -0.42 9.94 -0.60 -0.49 96.70 55.23
SEI Futures Index Fund Class P 0.180 -3.23 -3.26 3.71 -0.91 6.74 -0.87 1.06 10.85 -6.68 -11.23 6.35 4.54 -0.41 8.34 -0.60 -0.50 95.32 50.74
SG US Market Neutral Fund 27.010 -3.36 -3.40 -2.00 -3.36 -2.80 2.59 0.62 6.76 -2.16 -12.63 5.99 5.07 -0.45 -1.05 -0.71 -0.30 96.20 55.26
Sherpa Diversified Returns Fund Class A - 0.34 2.34 2.25 1.20 5.20 5.97 4.06 5.45 1.12 -21.95 3.74 3.87 0.22 4.34 0.55 0.99 99.71 68.67
Sherpa Market Neutral Income Fund Class A - 0.01 0.57 1.07 0.85 0.89 0.92 1.52 1.47 -0.41 -6.90 0.63 0.62 0.01 0.85 0.15 0.15 99.19 74.58
SMI Defensive LP 125.000 -4.50 -6.44 -38.43 -8.87 -49.44 -28.09 1.08 6.58 -47.04 -65.70 26.16 19.66 0.12 -49.91 0.04 -0.23 34.30 75.64
SMI Income LP 3.300 1.27 4.91 -1.21 7.70 -6.11 - 11.46 15.32 -17.93 -20.72 18.14 - 0.68 -8.76 0.35 -0.10 89.33 88.57
Spartan APQ - 3.66 0.94 -8.73 -0.83 -9.79 - -7.34 4.05 -12.73 -15.18 9.03 - 0.48 -11.66 0.50 0.41 87.93 57.14
Spartan Dorset Fund - 1.23 12.05 21.11 11.27 14.30 - 15.77 21.11 -6.26 -10.90 17.07 - -0.04 14.46 -0.02 -0.16 100.00 72.22
Spartan Eleven Fund - 0.97 1.87 3.45 3.10 4.99 6.25 9.04 8.59 -1.93 -5.00 6.46 5.22 0.58 2.73 0.83 0.34 98.28 73.81
Spartan LSQ - 0.41 2.18 10.55 3.92 11.56 8.69 8.65 12.53 -1.36 -2.65 6.77 4.44 -0.28 12.65 -0.38 -0.34 100.00 84.21
Spartan onTREND Fund - 1.70 12.19 26.59 18.30 23.55 - 19.34 26.59 -2.40 -9.62 14.49 - 1.16 19.03 0.74 0.21 100.00 64.29
Spartan Qmetrica - -0.25 1.74 6.25 2.76 - - - - - -2.41 - - - - - - 99.48 63.64
Spartan Teraz Fund - 1.68 7.04 -3.83 8.20 -13.84 -3.63 -3.79 29.68 -24.63 -24.63 19.64 16.17 1.17 -18.40 0.55 -0.03 81.55 45.00
Sprott Enhanced Long/Short Equity Fund 55.697 2.40 6.24 15.62 10.24 12.97 9.95 11.95 15.62 -2.99 -19.15 7.75 5.92 0.51 10.98 0.62 0.18 100.00 60.61
Sprott Enhanced Long/Short Equity RSP Fund 17.425 -3.58 -0.03 9.89 3.73 7.31 7.81 6.19 9.95 -3.24 -19.39 8.96 6.40 0.35 5.95 0.36 0.14 96.42 55.65
Sprott Hedge Fund L.P. Class A 83.793 -3.61 -16.52 5.92 -0.65 -24.93 -32.59 3.50 15.98 -46.34 -82.83 39.45 34.73 2.13 -33.22 0.50 -0.26 18.19 54.02
Sprott Hedge Fund L.P. II Class A 43.326 -3.18 -18.20 4.26 -2.99 -29.24 -33.98 -5.76 17.68 -47.07 -83.45 41.79 36.42 2.49 -38.94 0.56 -0.21 17.26 49.34
Stornoway Recovery Fund Series I 30.143 3.89 8.44 3.71 8.26 4.03 13.15 8.35 16.15 -11.28 -61.27 12.38 8.88 0.64 1.54 0.48 -0.08 96.18 70.87
SW8 Strategy Fund LP Class A 20.410 -3.94 -17.36 0.22 -8.01 -10.47 -2.18 -0.56 13.36 -12.42 -17.36 23.23 14.07 0.22 -11.33 0.09 -0.25 82.64 46.15
SW8 Strategy Fund LP Class B - -3.90 -17.06 0.50 -7.83 -9.96 -1.64 6.77 13.42 -12.17 -17.06 22.96 13.93 0.20 -10.74 0.08 -0.25 82.94 54.10
SW8 Strategy Trust Class A 8.214 -3.94 -17.36 0.22 -8.01 -10.47 -2.25 -0.90 13.36 -12.42 -17.36 23.23 14.06 0.22 -11.33 0.09 -0.25 82.64 46.15
SW8 Strategy Trust Class B - -3.90 -17.06 0.50 -7.83 -9.96 -1.72 -0.27 13.42 -12.17 -17.06 22.96 13.92 0.20 -10.74 0.08 -0.25 82.94 46.15
The Acernis Fund - -1.60 -0.32 4.67 3.22 - - - - - -1.60 - - - - - - 98.40 87.50
The Vantage Protected Performance Fund 94.000 -0.56 3.32 1.44 0.94 -0.22 8.24 7.37 17.88 -2.41 -12.68 5.72 6.76 0.34 -1.54 0.55 0.73 99.43 64.52
Topaz Multi-Startegy Fund (Canada) Series H 27.200 0.51 0.85 2.85 3.49 5.18 -0.42 0.04 5.88 -8.01 -10.29 3.71 4.85 0.17 4.52 0.43 -0.12 98.65 57.50
Trident Global Opportunities Fund C$ 62.160 -0.82 2.75 7.68 3.59 6.04 0.65 8.00 10.61 -12.50 -17.92 6.03 7.30 -0.37 7.48 -0.57 -0.31 90.80 53.05
Venator Founders Fund Class A 101.000 -1.50 1.28 3.91 1.98 15.89 21.33 15.11 18.72 3.91 -32.02 5.96 7.01 0.17 15.23 0.27 0.26 98.50 70.00
Venator Income Fund Class F 81.000 0.40 2.49 3.41 3.52 6.21 13.32 14.89 11.00 0.99 -12.91 3.58 3.82 0.33 4.92 0.85 0.45 99.80 80.25
Venator Investment Trust Class A 40.000 -1.60 1.10 3.69 1.78 15.46 21.17 11.44 18.65 3.69 -32.72 5.92 6.98 0.17 14.80 0.26 0.25 98.40 67.39
Venator Partners Fund 35.000 -1.60 1.07 3.71 1.68 - - - - - -1.60 - - - - - - 98.40 60.00
H E D G E F U N D P E R F O R M A N C E (as of April 30, 2015)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Vertex Fund Class A 1,103.050 -1.57 3.65 -0.31 6.23 -5.52 8.59 14.65 12.66 -11.96 -47.22 10.15 7.44 0.71 -8.28 0.66 0.36 93.52 68.29
Vertex Fund Class B 225.210 -3.07 1.88 -2.10 4.31 -7.70 7.19 9.28 12.23 -12.28 -47.05 10.35 7.69 0.68 -10.35 0.61 0.35 91.50 68.84
Vertex Fund Class F 499.430 -3.16 1.97 -1.94 4.51 -7.06 7.97 11.95 12.62 -11.98 -47.60 10.47 7.66 0.68 -9.71 0.60 0.35 91.99 69.44
Vertex Managed Value Potfolio Class A 273.690 -3.07 -2.93 2.48 -1.38 2.42 19.50 18.38 28.26 -3.81 -6.35 10.48 9.04 0.27 1.37 0.24 0.53 94.46 75.68
Vision Opportunity Fund L.P. - -0.29 3.21 2.29 2.18 9.93 8.62 17.87 15.01 -12.39 -17.27 6.75 8.67 0.39 8.41 0.53 0.87 98.60 68.29
Vision Opportunity Fund L.P. II - -0.31 2.99 2.34 2.03 10.91 8.68 17.23 14.67 -12.59 -12.59 6.45 8.64 0.28 9.82 0.40 0.75 98.61 69.12
Vision Opportunity Fund Trust - 0.17 3.35 2.56 2.39 11.25 7.33 14.65 11.21 -12.37 -15.47 7.30 8.09 0.35 9.89 0.45 0.87 99.14 67.07
WARATAH Income Fund Class A 60.224 1.40 5.39 3.05 5.18 2.86 8.66 7.36 12.23 -5.36 -6.01 6.27 6.89 0.50 0.91 0.74 0.47 99.05 68.97
WARATAH One Fund Class A 492.079 1.20 2.42 6.57 3.34 8.27 7.39 7.80 7.83 -0.51 -2.50 2.62 3.30 0.11 7.84 0.38 0.16 100.00 81.03
WARATAH Performance Fund Class A 273.516 -0.80 1.48 5.32 1.08 4.12 10.62 12.83 13.99 -2.72 -4.98 7.45 6.91 0.48 2.25 0.60 0.64 99.20 74.14
Wealhouse Panorama Fund, L.P. 252.515 -0.93 2.81 5.49 3.99 6.75 11.81 11.37 13.34 0.89 -17.00 4.62 5.28 0.32 5.50 0.64 0.61 99.07 67.90
Equally Weighted Average Performance of All Funds 8,784.031 -0.11 2.05 3.71 3.30 4.25 4.93 - - - - - - - - - - - -
Number of Funds in Sample 96 161 161 160 161 155 137 - - - - - - - - - - - -
Volume 15 Issue 3 - March 2015 29
www.canadianhedgewatch.com48
M A R K E T I N D I C E S (as of April 30, 2015)
INDEX NAME 1 Month
3 Month
6 Month
YTD1
Year3
YearSince
Inception
Best 6mo.
(3 Year)
Worst 6mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Alpha (1 Year,
TSX)
Beta (1 Year,
TSX)
% High Water- mark
% Pos. Months
183 Day Canada T-Bill 0.05 0.15 0.39 0.23 0.87 0.96 6.26 0.52 0.39 0.00 0.05 0.03 0.87 0.00 100.00 100.00
91 Day Canada T-Bill 0.05 0.15 0.38 0.23 0.86 0.93 6.03 0.49 0.38 0.00 0.05 0.03 0.86 0.00 100.00 100.00
BMO Canadian Small Cap Index 4.75 4.19 2.72 4.07 -8.63 0.57 5.48 16.56 -16.57 -57.31 15.95 13.14 -14.86 1.60 84.83 57.94
CHW-HF Composite Index -0.38 -0.87 2.56 2.29 -3.92 -2.13 0.17 8.54 -8.08 -32.08 7.92 7.07 -6.37 0.63 73.58 57.26
CHW-HF Equity Hedged Index -0.38 -1.05 2.72 2.34 -4.62 -2.64 1.40 8.24 -8.73 -34.75 8.50 7.44 -7.19 0.66 72.14 58.06
CHW-HF FoHF Index 0.74 3.22 4.03 4.89 4.63 3.16 -5.70 11.30 -3.53 -57.95 4.54 5.07 3.38 0.32 48.64 51.22
Dow Jones Global Index (C$) -2.42 0.84 11.65 8.87 16.28 17.73 5.53 18.83 1.11 -50.31 9.12 8.12 15.58 0.18 97.50 56.79
Dow Jones Global Index (U$) 2.67 6.42 4.31 4.85 5.62 9.84 5.30 14.96 -2.98 -55.89 8.70 10.58 2.82 0.72 100.00 60.00
Nasdaq Composite Index (C$) -4.17 1.02 14.22 8.34 32.23 25.57 9.79 26.09 -1.16 -74.24 10.44 9.92 31.61 0.16 87.62 59.47
S&P 500 Total Return Index C$ -4.04 -0.42 11.75 5.84 24.40 24.76 11.25 22.05 3.32 -51.16 9.15 8.01 24.44 -0.01 95.85 62.14
S&P 500 Total Return Index US$ 0.96 5.08 4.41 1.93 12.98 16.41 10.63 16.43 2.15 -50.98 9.05 9.50 10.92 0.53 99.36 61.88
S&P/TSX 60 Index TR 2.29 4.16 5.89 4.76 8.76 9.74 7.46 14.02 -2.55 -47.89 8.15 8.23 5.41 0.86 100.00 61.14
S&P/TSX Composite Index 2.16 3.75 4.18 4.04 3.89 7.39 6.46 12.31 -4.29 -45.05 8.52 8.30 0.31 0.92 97.43 59.53
To ensure the highest level of accuracy, Hedge Funds are encouraged to directly submitmonthly/quarterly/annual data to: data@canadianhedgewatch.com
Canadian Hedge Watch receives, tracks and presents the data and results of Canadian funds as a service tothe hedge fund and alternative investment community. Business announcements, key personnel appointments and
press releases are also welcome for publication. Please send to info@canadianhedgewatch.com.
LE JOURNAL DES PROFESSIONNELS DU PLACEMENTFI INVESTISSEMENTMARS 2014
4 0 P A G E S
FINANCE ET
pp
40
06
49
24
WWW.F INANCE- INVESTISSEMENT.COM
DANS CE NUMÉRO
NOUVELLES
FINANCE Création d’un
centre d’excellence.
Pages 6 et 12
AGENTS GÉNÉRAUX QFS à
l’assaut du Québec.
Page 8
BITCOINS Multiples subtili-
tés fiscales. Page 10
COURTAGE L’industrie crie
famine. Page 12
PRODUITS ET ASSURANCE
SECTEUR Occasions parmi
les titres mondiaux à
revenu fixe. Pages 15 et 16
PRODUITS Les fonds équi-
librés sont incontournables.
Page 16
TROIS FONDS offensifs pour
la reprise. Page 18
ÉCONOMIE ET RECHERCHE
ÉMERGENTS Viser le long
terme. Page 21
POTENTIEL Analyse de celui
de la Corée du Sud.
Page 24
DÉVELOPPEMENT DES
AFFAIRES
INAPTITUDE La fiducie à
soi-même peut-être
pertinente. Pages 27 et 28
IMMOBILIER Une autre façon
de monnayer une maison.
Page 28
FISCALITÉ Le défi d’optimi-
ser le décaissement.
Page 30
PSYCHO Toucher la corde
sensible du client.
Page 31
TECHNO Penser à numériser
ses dossiers. Page 33
ACQUISITIONS Les impacts
fiscaux de la vente d’une
clientèle. Page 37
ÉDITORIAL ET ANALYSES
CES FILMS où vous êtes
l’ennemi. Page 38
l’industrie financière
canadienne a accueilli avec un
soupir de soulagement l’entente
intergouvernementale (EIG) sur-
venue entre le Canada et les États-
Unis concernant la FATCA (Foreign
Account Tax Compliance Act).
Cette loi américaine sur les
comptes à l’étranger, qui vise à
combattre l’évasion fiscale de ci-
toyens américains qui habitent
au Canada et dans tout pays
étranger, doit entrer en vigueur le
1er juillet prochain.
À L’AFFICHE Conseiller le plus engagé dans sa communauté
de Finance et Investissement, Julien Dufour épouse plusieurs
causes qu’il affectionne. À lire en page 4.
PHOTO : FRANÇOIS RIVARD
> COMMISSION SUITE PAGE 2
> FIDUCIES SUITE PAGE 6> FATCA SUITE PAGE 8
C O M M I S S I O N U N I Q U E
Le FMI s’en mêle
dans son dernier pro-
gramme d’évaluation du secteur
financier canadien, le Fonds mo-
nétaire international (FMI) écrit
que la mise en place d’un « ré-
gime coopératif de réglementa-
tion des valeurs mobilières » tel
que préconisé par le gouverne-
ment fédéral serait bénéfique
pour le Canada.
Ce constat n’est pas passé ina-
perçue à l’Autorité des marchés
financiers (AMF).
Ainsi, le FMI lance carrément
des f leurs au système écono-
mique et financier canadien.
« Si le système bancaire du Ca-
nada était une personne, une
fiancée pourrait le présenter à ses
parents : stable, solide, riche et
prudemment réglementé », peut-
on lire dans le bulletin du FMI
qui le résume.
Néanmoins, l’organisation in-
ternationale note certaines la-
cunes. Celle qui a trait à la régle-
mentation des valeurs mobilières
a suscité le plus de réactions à
Ottawa et au Québec.
« Il est surprenant que le FMI
se préoccupe encore du débat
le budget fédéral de 2014
abolit deux avantages fiscaux
liés aux fiducies, mais il assou-
plit les règles pour les dons
successoraux.
La première mesure suppri-
mée, soit l’imposition au taux
maximum des fiducies testa-
mentaires et des successions,
était attendue. Le ministère des
Finances avait mené des consul-
tations à cet effet en 2013.
La deuxième mesure est plus
F I D U C I E S
Disparition de deux privilèges
PAR GUILLAUME POULIN-GOYER
FAT C A
Un accord bienvenuPAR YAN BARCELO
L’organisation vante le
régime canadien, mais
favorise tout de même
la commission unique.
PAR MARIE-CLAUDE FRENETTE
8e Colloque de conformité
Le Centre Sheraton Montréal
Pour de plus amples informations, consultez la page 30.
Mercredi, 26 mars 2014
LE JOURNALE JOURNAL DES PROL DES PROFESSIFESSIONNELS DUONNELS DU PLACEMENPLACEMENTTINVEST
pp
40
06
49
24
WWW.F INANCE- INVESTISSEMENT.COM
ÉÉDANS CEDANS CEDANS CEDANS CE ÉÉNUMÉRONUMÉRONUMÉRONUMÉRO
NOUVELLES
FINANCE Création d’un
centre d’excellence.
Pages 6 et 12
AGENTS GÉNÉRAUX QFS à
l’assaut du Québec.
Page 8
BITCOINS Multiples subtili-
tés fiscales. Page 10
COURTAGE L’industrie crie
famine. Page 12
PRODUITS ET ASSURANCE
SECTEUR Occasions parmi
les titres mondiaux à
revenu fixe. Pages 15 et 16
PRODUITS Les fonds équi-
librés sont incontournables.
Page 16
TROIS FONDS offensifs pour
la reprise. Page 18
ÉCONOMIE ET RECHERCHE
ÉMERGENTS Viser le long
terme. Page 21
POTENTIEL Analyse de celui
de la Corée du Sud.
Page 24
DÉVELOPPEMENT DES
AFFAIRES
INAPTITUDE La fiducie à
soi-même peut-être
pertinente. Pages 27 et 28
IMMOBILIER Une autre façon
de monnayer une maison.
Page 28
FISCALITÉ Le défi d’optimi-
ser le décaissement.
Page 30
PSYCHO Toucher la corde
sensible du client.
Page 31
TECHNO Penser à numériser
ses dossiers. Page 33
ACQUISITIONS Les impacts
fiscaux de la vente d’une
clientèle. Page 37
ÉDITORIAL ET ANALYSES
CES FILMS où vous êtes
l’ennemi. Page 38
l’industrie financière
canadienne a accueilli avec un
soupir de soulagement l’entente
intergouvernementale (EIG) sur-
venue entre le Canada et les Étatsg
Unis concernant la FATCA (A Foreign
Account Tax Compliance Act).t
Cette loi américaine sur le
comptes à l’étranger, qui vise
combattre l’évasion fiscale de c
toyens américains qui habiten
au Canada et dans tout pay
étranger, doit entrer en vigueur
1er juillet prochain.
À L’AFFICHE Conseiller le plus engagé dans sa communauté
de Finance et Investissement, Julien Dufour épouse plusieurs
causes qu’il affectionne. À lire en page 4.
PHOTO : FRANÇOIS RIVARD
> COMMISSION SUITE PAGE 2
> FIDUCIES SUITE PAGE 6> FATCA SUITE PAG
C O M M I S S I O NC O M M I S S I O NC O M M I S S I O NC M S N U NU N I QU N I QU Q U EU EU EU E
Le FMI s’en mêle
dans son dernier pro-
gramme d’évaluation du secteur
financier canadien, le Fonds mo-
nétaire international (FMI) écrit
que la mise en place d’un « ré-
gime coopératif de réglementa-
tion des valeurs mobilières » tel
que préconisé par le gouverne
ment fédéral serait bénéfique
pour le Canada.
Ce constat n’est pas passé ina-
perçue à l’Autorité des marchés
financiers (AMF).
Ainsi, le FMI lance carrément
des f leurs au système écono-
mique et financier canadien.
« Si le système bancaire du Ca
nada était une personne, une
fiancée pourrait le présenter à ses
parents : stable, solide, riche et
prudemment réglementé », peut-
on lire dans le bulletin du FMI
qui le résume.
Néanmoins, l’organisation in-
ternationale note certaines la-
cunes. Celle qui a trait à la régle-
mentation des valeurs mobilières
a suscité le plus de réactions à
Ottawa et au Québec.
« Il est surprenant que le FMI
se préoccupe encore du débat
le budget fédéral de 2014
abolit deux avantages fiscaux
liés aux fiducies, mais il assou-
plit les règles pour les dons
successoraux.
La première mesure suppri-
mée, soit l’imposition au taux
maximum des fiducies testa-
mentaires et des successions,
était attendue. Le ministère des
Finances avait mené des consul-
tations à cet effet en 2013.
La deuxième mesure est plus
F I D U C I E S
Disparition de deux privilèges
PAR GUILLAUME POULIN-GOYER
FAT C A
Un accord bienvenuPAR YAN BARCELO
L’organisation vante le
régime canadien, mais
favorise tout de même
la commission unique.
PAR MARIE-CLAUDE FRENETTE
8e Colloque de conformmitémité
Le Centre Sheraton Montréal
Pour de plus amples informations, consultez la page 30.
Mercredi, 26 mars 2014
CANADA’S NEWSPAPER FOR FINANCIAL ADVISORS IE EXECUTIVE AUGUST 2014
3 6 P A G E SINVESTMENT
securities regulators
are considering the prospect
of allowing brokerage firms to
employ dedicated mutual fund
representatives, which could
eliminate the need for firms to
maintain dual-platform oper-
ations and end up transforming
the investment industry in the
process.Ever since provincial regulators
decided that mutual fund dealers
should have a self-regulatory or-
ganization (SRO) of their own, the
extent to which investment deal-
ers should be able to field reps
who are limited to selling mutual
funds has been a lingering issue.
Currently, investment dealers can
employ mutual fund reps for up
to nine months as long as those
reps use that time to qualify as
full-service reps.
Now, however, the possibil-
ity of investment dealers em-
Lise Andreana, partner with Continuum II Inc. in Burlington,
Ont., joined the financial advisory business after a successful
career in fashion and retail. Andreana, author of three books on
personal finance, prides herself on client retention. “If you’re
addressing all the financial issues and doing it well,” she says,
“clients are not looking to go somewhere else.” Andreana also
is an avid hiker and cyclist. (See story on page B10.)
R E G U L AT I O N
An end to dual-platform firms?
a rising tide in the stock
markets over the past year ap-
pears to be lifting all boats in the
financial services sector — in-
cluding those of insurance ad-
visors. They saw growth in both
assets under management (AUM)
and compensation, even as their
core insurance business appears
to be weakening a bit.
The research for Investment
Executive ’s 2014 Insurance
Advisors’ Report Card found that
many life insur ance
agents in Ontario are falling short
in their compliance responsibil-
ities — especially regarding the
disclosure of conflicts of interest
and keeping records, according to
the results of a recent suitability
review. As a result, insurance ad-
visors can expect that the regula-
tors will begin keeping a closer
eye on advisors’ sales practices.
T h e Fi n a n c i a l S e r v i c e s
Commission of Ontario (FSCO)
PAUL LAWRENCE
WWW. INVESTMENTEXECUTIVE .COM
> TURN TO DEDICATED / PAGE 6
> TURN TO INSURANCE / PAGE 4> TURN TO FSCO / PAGE 6
Online surveys gauge
views on investment
dealers employing
fund salespeople
BY JAMES LANGTON
R E P O R T C A R D
Stocks lift agents
I N S U R A N C E
Lapse in compliance
2014
INSURANCE
ADVISORS’
REPORT CARD:
See pages 11 to 16
INSIDE NEWS
CROWDFUNDING Proposed
rules for exempt-market
financing are meeting
opposition. Pg. 8
WHACKING THE HACKERS
Banks are taking the lead in
battling cybercrime. Pg. 8
PRICE WAR ETF providers are
slashing fees. How low can
they go? Pg. 10
FOCUS ON PRODUCTS
SEEKING VALUE Fund
managers are looking
beyond Europe. Pg. 17
RISK’S REWARD Look to
global markets for equities
risk premium. Pg. 18
RESEARCH
FRANCE Within a lacklustre
overall market, investment
opportunities exist. Pg. 19
PARADOX Study shows stock
market rose despite firms’
flat earnings. Pg. 20
INSIGHT
EDITORIAL Provinces must
cede ideological ground in
regulator debate. Pg. 21
MONTREAL The mayor wants
later bar closing. Pg. 22
BYB
FINANCIAL LITERACY Helping
your clients improve their
knowledge. Pg. B6
40
06
49
24
BY MEGAN HARMAN
BY JAMES LANGTON
®Renaissance Investments is offered by and is a
registered trademark of CIBC Asset Management Inc.
INVESTMENT EXECUTIVE, and it’s francophone sister publication, FINANCE ET INVESTISSEMENT, reaches more than 200,000 Canadian financial professionals.We report on the people, products, trends and technologies in Canada’s financial services sector and what they need to know to do a better job for their clients.
Visit our websites, subscribe to the daily newsletters, or download our apps to stay on top of the news as it happens.
For more information, contact us at 416-218-3677 or visit our websites: www.investmentexecutive.com, www.finance-investissement.com
IE and FI
Disclaimer The information contained in Canadian Hedge Watch has been compiled from sources believed to be reliable, however accuracy is not guaranteed. Canadian Hedge Watch provides information asa general source of news and events and should not be considered personal investment advice. Before taking any action all readers are advised and cautioned to consult a certified financial advisor. We haveendeavoured to ensure that the material contained in Canadian Hedge Watch is accurate at time of publication.
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M O N T H LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N GMARCH 2014 VOLUME 14 ISSUE 3
@RadiusFE
A CONVERSATION WITH
NEW AIMA CEOJACK INGLIS Q U A R T E R LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N GAPRIL 2014 VOLUME 14 ISSUE 4
AIMA CANADA SHINES SPOTLIGHT ON MANAGED FUTURES
RADIUS 2014 CALENDAR OF EVENTS
HAS THE MOST ANTICIPATED
INVESTMENT OPPORTUNITY –
DRIVEN BY A RECOVERY IN U.S.
HOUSING – PASSED YOU BY?
@RadiusFE
AIMA ISSUES ‘APPLES AND APPLES’ GUIDE TO UNDERSTANDING
HEDGE FUND PERFORMANCE
HOW INVESTOR PSYCHOLOGY IS CHANGING - AND WEALTH MANAGEMENT
FIRMS AND ADVISORS ARE RESPONDING
@RadiusFE
WHAT CANADIAN HEDGE FUNDS
NEED TO KNOW.FATCA .M O N T H LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N G
MAY 2014 VOLUME 14 ISSUE 5
RADIUS PRACTICE MANAGEMENT
& RETIREM ENT SUMMIT
CONFERENCE REVIEW
AIMA CANADA FOCUSES
ON PROGRESSIVE ASSET
MANAGEMENT
@RadiusFE
AIMA CANADA PANELS EXPLORE THE IMPLICATIONS FOR INVESTMENT MANAGERS
LIFE AFTER
BENCHMARKSM O N T H LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N G
JUNE 2014 VOLUME 14 ISSUE 6
Canada’s Premier Source ofHedge Fund Information
www.canadianhedgewatch.com32
Highest Return (3 Year)
Fund Name Ann. ReturnAnn. Std.
Dev.
# of Negative Months
DKAM Capital Ideas Fund 30.48 8.59 5
Rosalind Capital Partners L.P. 28.27 18.12 11
Agilith North American Diversified Fund 24.40 11.93 12
JC Clark Adaly Fund Class A 23.85 16.83 12
JC Clark Adaly Fund Class B 22.77 16.82 12
Formula Growth Global Opportunities Fund Cl. S C$ 22.10 12.39 13
Venator Founders Fund Class A 21.33 7.01 8
Venator Investment Trust Class A 21.17 6.98 9
Fiera Long/Short Equity Fund Class F 20.01 7.06 7
Maxam Diversified Strategies Fund Series A 19.93 6.53 8
King & Victoria Fund LP 19.73 8.78 9
Vertex Managed Value Potfolio Class A 19.50 9.04 8
King & Victoria RSP Fund Class A Units 19.48 8.81 9
Calrossie Partners Fund 19.12 7.82 9
Fiera Long Short Equity Fund Class A 17.80 6.79 8
BT Global Growth Fund L.P. 17.77 10.38 11
Inflection Strategic Opportunities Fund 17.40 9.10 11
Lightwater Long/Short Fund - Class A 16.69 11.44 10
Burlington Partners Plus LP 15.39 7.96 8
Acorn Diversified Program 14.89 15.03 15
Lycos Value Fund Class O 14.83 26.75 16
Highest Return (1 Year)
Fund Name Ann. ReturnAnn. Std.
Dev.
# of Negative Months
JC Clark Adaly Fund Class A 52.68 24.23 4
Claret Global Multi-Asset L.P. 52.61 19.56 2
Lightwater Nimble Fund 52.52 34.13 4
JC Clark Adaly Fund Class B 51.14 24.26 4
Majestic Global Diversified Fund 42.57 13.35 2
IMFC Global Investment Program 35.35 16.31 3
Bloom Burton CDN Healthcare Fund 33.67 34.57 5
Exemplar Diversified Portfolio Series A 31.74 15.09 3
Exemplar Diversified Portfolio Series F 31.66 14.68 3
DKAM Capital Ideas Fund 28.53 6.16 1
Barometer Tactical Exchange Traded Fund Pool 28.15 14.80 2
Majestic Global Diversified Fund Series A 27.94 12.23 3
Auspice Managed Futures LP. 26.31 12.83 5
Fiera Long/Short Equity Fund Class F 26.00 7.21 2
Auspice Diversified Trust Class S 25.88 12.81 5
Auspice Diversified Trust Class A 25.85 12.92 5
Majestic Global Diversified Fund Series I 25.18 11.45 3
Rosalind Capital Partners L.P. 24.63 17.58 4
Formula Growth Global Opportunities Fund Cl. S C$ 24.30 12.76 3
Maxam Diversified Strategies Fund Series A 24.01 6.06 1
Spartan onTREND Fund 23.55 14.49 4
Highest Return (3 Month)
Fund Name 3 Month 6 Month 1 YearAnn. std
Dev. (1 Year)
Lightwater Nimble Fund 57.41 59.34 52.52 34.13
Bloom Burton CDN Healthcare Fund 31.15 76.65 33.67 34.57
Brompton Energy Opportunities Fund Series F 19.96 -13.07 -36.13 34.30
Brompton Energy Opportunities Fund Series 2010 19.78 -13.37 -36.35 34.39
Brompton Energy Opportunities Fund Series 2009 19.78 -13.37 -36.35 34.39
Brompton Energy Opportunities Fund Series A 19.76 -13.43 -36.57 34.33
Front Street Canadian Energy Resource Fund Ser F 15.12 -22.34 -42.62 42.24
Front Street Canadian Energy Resource Fund Ser B 14.79 -22.80 -43.27 42.21
Formula Growth Global Opportunities Fund Cl. S C$ 14.60 15.88 24.30 12.76
JC Clark Adaly Fund Class A 12.48 13.84 52.68 24.23
Spartan onTREND Fund 12.19 26.59 23.55 14.49
JC Clark Adaly Fund Class B 12.16 13.21 51.14 24.26
Spartan Dorset Fund 12.05 21.11 14.30 17.07
Goodwood Fund Class A 10.42 7.29 7.32 10.68
DKAM Capital Ideas Fund 10.09 16.63 28.53 6.16
EHP Select Fund 9.90 22.75 - -
Formula Growth Focus Fund Class F 8.53 4.36 4.76 14.68
Stornoway Recovery Fund Series I 8.44 3.71 4.03 12.38
Formula Growth Hedge Fund Class F U$ 8.05 3.08 2.10 8.66
FrontFour Opportunity Fund 7.88 4.26 -0.23 9.41
Palos Equity Income Fund Series A 7.49 2.60 4.00 10.67
Lowest Return (3 Month)
Fund Name 3 Month 6 Month 1 YearAnn. std
Dev. (1 Year)
Sprott Hedge Fund L.P. II Class A -18.20 4.26 -29.24 41.79
SW8 Strategy Fund LP Class A -17.36 0.22 -10.47 23.23
SW8 Strategy Trust Class A -17.36 0.22 -10.47 23.23
SW8 Strategy Fund LP Class B -17.06 0.50 -9.96 22.96
SW8 Strategy Trust Class B -17.06 0.50 -9.96 22.96
Sprott Hedge Fund L.P. Class A -16.52 5.92 -24.93 39.45
Niagara Legacy Class B Fund -13.38 -1.46 -15.45 22.55
Pathway Multi SF Explorer Series A Rollover MIN001 -12.80 -28.08 -44.21 22.44
Friedberg Global Macro Hedge Fund U$ -11.38 -4.96 -35.55 27.70
Dynamic Power Hedge Fund Series C -9.73 -25.03 -27.40 16.66
SMI Defensive LP -6.44 -38.43 -49.44 26.16
GFM Market Neutral Fund -6.31 -5.32 -8.20 7.68
Niagara Discovery Fund -5.40 3.44 14.18 12.49
IMFC Global Concentrated Program -5.33 14.32 23.11 12.77
Blackheath Futures Fund L.P. Class A -5.31 4.73 10.54 23.39
Blackheath Volatility Arbitrage Fund L.P. Class A -5.23 -12.17 -13.51 13.33
IMFC Global Investment Program -5.11 20.87 35.35 16.31
Majestic Global Diversified Fund Series A -5.02 13.94 27.94 12.23
Majestic Global Diversified Fund -5.00 13.65 42.57 13.35
Exemplar Diversified Portfolio Series A -4.89 18.75 31.74 15.09
Majestic Global Diversified Fund Series I -4.77 12.93 25.18 11.45
Volume 15 Issue 3 - March 2015 33
Fewest Negative Months (1 Year)
Fund Name# of
Negative Months
Ann. Return
Ann. Std. Dev.
Palos IOU High Yield Fund 0 11.21 2.01
Lycos Value Fund Class P 0 6.01 0.09
DKAM Capital Ideas Fund 1 28.53 6.16
Maxam Diversified Strategies Fund Series A 1 24.01 6.06
Claret Global Multi-Asset L.P. 2 52.61 19.56
Majestic Global Diversified Fund 2 42.57 13.35
Barometer Tactical Exchange Traded Fund Pool 2 28.15 14.80
Fiera Long/Short Equity Fund Class F 2 26.00 7.21
Fiera Long Short Equity Fund Class A 2 21.87 5.12
HGC Arbitrage Fuld LP 2 14.48 4.31
WARATAH One Fund Class A 2 8.27 2.62
ChapelGate Credit Opportunity Fund Ltd. 2 3.95 1.93
IMFC Global Investment Program 3 35.35 16.31
Exemplar Diversified Portfolio Series A 3 31.74 15.09
Exemplar Diversified Portfolio Series F 3 31.66 14.68
Majestic Global Diversified Fund Series A 3 27.94 12.23
Majestic Global Diversified Fund Series I 3 25.18 11.45
Formula Growth Global Opportunities Fund Cl. S C$ 3 24.30 12.76
Forge First Long/Short LP 3 19.41 8.85
Inflection Strategic Opportunities Fund 3 18.99 12.79
EHP Advantage Fund Class A 3 18.66 9.33
Fewest Negative Months (3 Year)
Fund Name# of
Negative Months
Ann. Return
Ann. Std. Dev.
ChapelGate Credit Opportunity Fund Ltd. 4 11.66 3.53
DKAM Capital Ideas Fund 5 30.48 8.59
JM Catalyst Fund 6 14.03 3.90
Venator Income Fund Class F 6 13.32 3.82
Spartan LSQ 6 8.69 4.44
Ross Smith Capital Investment Fund 6 7.23 2.32
Fiera Long/Short Equity Fund Class F 7 20.01 7.06
Wealhouse Panorama Fund, L.P. 7 11.81 5.28
WARATAH One Fund Class A 7 7.39 3.30
Venator Founders Fund Class A 8 21.33 7.01
Maxam Diversified Strategies Fund Series A 8 19.93 6.53
Vertex Managed Value Potfolio Class A 8 19.50 9.04
Fiera Long Short Equity Fund Class A 8 17.80 6.79
Burlington Partners Plus LP 8 15.39 7.96
Stornoway Recovery Fund Series I 8 13.15 8.88
Goodwood Milford Fund 8 11.89 5.23
Venator Investment Trust Class A 9 21.17 6.98
King & Victoria Fund LP 9 19.73 8.78
King & Victoria RSP Fund Class A Units 9 19.48 8.81
Calrossie Partners Fund 9 19.12 7.82
Picton Mahoney Global Long Short Equity Fd Cl A C$ 9 11.25 6.63
Lowest Volatility (1 Year)
Fund NameAnn. Std.
Dev.Ann.
Return
# of Negative Months
Lycos Value Fund Class P 0.09 6.01 0
Sherpa Market Neutral Income Fund Class A 0.63 0.89 3
ChapelGate Credit Opportunity Fund Ltd. 1.93 3.95 2
Palos IOU High Yield Fund 2.01 11.21 0
Ross Smith Capital Investment Fund 2.12 5.90 3
Picton Mahoney Market Neutral Equity Fund Class A 2.51 1.11 7
WARATAH One Fund Class A 2.62 8.27 2
BSP Absolute Return Fund Multi Strat.US$ 2.76 6.12 3
JM Catalyst Fund 2.78 5.53 4
Kensington Hedge Fund 1 Series A+E+F 2.95 1.26 4
BSP Absolute Return Fund L/S Eq. US$ 3.06 7.52 3
Picton Mahoney Diversified Strategies Fund Class A 3.47 4.80 5
Venator Income Fund Class F 3.58 6.21 4
Topaz Multi-Startegy Fund (Canada) Series H 3.71 5.18 4
Sherpa Diversified Returns Fund Class A 3.74 5.20 5
Picton Mahoney Global Market Netural Equ Cl A C$ 3.85 4.30 3
Landry Global Equity Long/Short Fund Series F 4.09 -1.04 6
Landry Global Equity Long/Short Fund Series A 4.09 -2.20 6
Landry Global Equity Long/Short Fund Series I 4.10 0.09 6
Fiera Market Neutral Equity Fund Class F 4.19 12.96 3
Broadview Dark Horse LP 4.24 4.97 5
Lowest Volatility (3 Year)
Fund NameAnn. Std.
Dev.Ann.
Return
# of Negative Months
Sherpa Market Neutral Income Fund Class A 0.62 0.92 12
Picton Mahoney Market Neutral Equity Fund Class A 1.99 2.66 15
Ross Smith Capital Investment Fund 2.32 7.23 6
BSP Absolute Return Fund Multi Strat.US$ 2.62 5.44 9
Kensington Hedge Fund 1 Series A+E+F 3.30 7.49 9
WARATAH One Fund Class A 3.30 7.39 7
BSP Absolute Return Fund L/S Eq. US$ 3.44 5.70 11
ChapelGate Credit Opportunity Fund Ltd. 3.53 11.66 4
Venator Income Fund Class F 3.82 13.32 6
Picton Mahoney Diversified Strategies Fund Class A 3.86 7.28 11
Picton Mahoney Income Opportunities Fund Class A 3.86 5.48 9
Sherpa Diversified Returns Fund Class A 3.87 5.97 10
JM Catalyst Fund 3.90 14.03 6
Picton Mahoney Global Market Netural Equ Cl A C$ 3.90 3.80 12
Spartan LSQ 4.44 8.69 6
SEI Futures Index Fund Class P 4.54 -0.87 20
SEI Futures Index Fund Class F 4.58 -0.33 20
SEI Futures Index Fund Class O 4.60 0.73 19
Fiera Market Neutral Equity Fund Class F 4.64 2.95 13
Landry Global Equity Long/Short Fund Series A 4.76 4.89 13
Topaz Multi-Startegy Fund (Canada) Series H 4.85 -0.42 16
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