Description

The fund aims to generate returns regardless of market conditions, through a long/short equity strategy. The fund has long/short positions a diversified portfolio of equities mainly from North American issuers. Although international and emerging markets issuers are also included, theyre capped at 25%. The portfolio manager implements the market-neutral strategy by selecting pairs of correlated issuers within the same industry sector. Then, takes long positions in issuers that are most likely to outperform while taking short positions in the issuers that are most likely to underperform. To limit risks, the targeted size of each individual pair is between 1% and 5% of the fund's NAV, risk controls like stop-loss are also employed. The fund uses leverage up to 300% of the funds NAV through cash borrowings, short sales and derivatives. The portfolio will be managed tactically over the short to medium term based on changes to the holdings and other proprietary risk assessments.