Overview
Daily NAV
$13.87
0.27% $0.04
October 31, 2024
-
Inception DateJanuary 10, 2020
-
Fund Size$140.15MM
-
Management Fee0.95%
-
High Water MarkYes
-
Fund StrategyMerger Arbitrage
-
Fund FrameworkHedge Fund (Offering Memorandum)
Risk: Low to Medium
Low
Low to Medium
Medium
Medium to High
High
^ of the amount above a perpetual high watermark
Investment Objective
The investment objective of the Fund is to generate consistent, positive returns, with low volatility and low correlation to equity markets. The Fund utilizes leverage to enhance returns and intends to gain 200% exposure to the Picton Mahoney Arbitrage Fund, net of borrowing and/or dealer costs. The underlying fund primarily employs arbitrage strategies, which are specialized investment techniques designed to profit from the successful completion of mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations, and other corporate reorganizations. The most common arbitrage activity the Manager intends to use is merger arbitrage, which involves purchasing the shares of an announced acquisition target company at a discount to the expected merger consideration.
Why Invest
Diversify Your Portfolio
With a Fund that seeks low correlation to the overall equity market, low volatility and aims to avoid large drawdowns.
Benefit From Proven Managers
Experienced running Authentic Hedge®merger arbitrage strategies for over 6 years.
Lower Interest Rate Risk
In your portfolio wit ha Fund that may benefit from rising rates, unlike most fixed income and dividend yielding securities.
With a Fund that seeks low correlation to the overall equity market, low volatility and aims to avoid large drawdowns.
Benefit From Proven Managers
Experienced running Authentic Hedge®merger arbitrage strategies for over 6 years.
Lower Interest Rate Risk
In your portfolio wit ha Fund that may benefit from rising rates, unlike most fixed income and dividend yielding securities.
Performance As at October 31, 2024
Growth of $10,000
Investment value:
$16,587.07
at
October 31, 2024
Compound Returns †
| 1 mth | 3 mths | 6 mths | YTD | 1 yr | 3 yrs * | 5 yrs * | 10 yrs * | Since Inception * | |
|---|---|---|---|---|---|---|---|---|---|
| Picton Mahoney Arbitrage Plus Fund V | 0.27% | 0.94% | 2.50% | 4.05% | 5.32% | 3.34% | — | — | 11.10% |
| Benchmark 1 | -0.55% | 0.27% | 4.25% | 3.21% | 7.81% | 3.86% | — | — | 5.57% |
| Benchmark 2 | 0.85% | 5.30% | 12.95% | 18.24% | 32.06% | 8.03% | — | — | 10.63% |
| Benchmark 3 | -1.07% | 1.25% | 6.50% | 3.11% | 11.09% | -0.23% | — | — | 0.41% |
| Series | Picton Mahoney Arbitrage Plus Fund V | Benchmark | Benchmark | Benchmark |
|---|---|---|---|---|
| 1 mth | 0.27% | -0.55% | 0.85% | -1.07% |
| 3 mths | 0.94% | 0.27% | 5.30% | 1.25% |
| 6 mths | 2.50% | 4.25% | 12.95% | 6.50% |
| YTD | 4.05% | 3.21% | 18.24% | 3.11% |
| 1 yr | 5.32% | 7.81% | 32.06% | 11.09% |
| 3 yrs * | 3.34% | 3.86% | 8.03% | -0.23% |
| 5 yrs * | — | — | — | — |
| 10 yrs * | — | — | — | — |
| Since Inception * | 11.10% | 5.57% | 10.63% | 0.41% |
† The rate of return shown above is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the investment fund, or returns on investment in the investment fund.
* refers to average annualized performance.
1 HFRI ED Merger Arbitrage Index (Hedged to CAD)
2 S&P/TSX Composite TR Index
3 ICE BofA Canada Broad Market Index (TR)
Calendar Returns
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Picton Mahoney Arbitrage Plus Fund V | 10.76% | 1.69% | 3.73% |
| Benchmark 1 | 10.63% | 2.84% | 5.07% |
| Benchmark 2 | 25.09% | -5.84% | 11.75% |
| Benchmark 3 | -2.71% | -11.47% | 6.37% |
| Series | Picton Mahoney Arbitrage Plus Fund V | Benchmark | Benchmark | Benchmark |
|---|---|---|---|---|
| 2021 | 10.76% | 10.63% | 25.09% | -2.71% |
| 2022 | 1.69% | 2.84% | -5.84% | -11.47% |
| 2023 | 3.73% | 5.07% | 11.75% | 6.37% |
1 HFRI ED Merger Arbitrage Index (Hedged to CAD)
2 S&P/TSX Composite TR Index
3 ICE BofA Canada Broad Market Index (TR)
Risk Measures
Risk And Return Statistics
Fund
Benchmark
**
Annualized Return
11.10%
5.57%
Annualized Standard Deviation
9.44%
6.95%
Sharpe Ratio
0.90
0.51
Beta
0.87
—
Upside Capture Ratio
119.37%
—
Downside Capture Ratio
46.84%
—
Maximum Drawdown
-5.74%
-10.81%
Peak Value Date of Maximum Drawdown
2020-01-31
2020-01-31
Trough Value Date of Maximum Drawdown
2020-03-31
2020-03-31
**HFRI ED Merger Arbitrage Index (Hedged to CAD)
Risk Measures
| Risk And Return Statistics | Fund | Benchmark ** |
|---|---|---|
| Annualized Return | 11.10% | 5.57% |
| Annualized Standard Deviation | 9.44% | 6.95% |
| Sharpe Ratio | 0.90 | 0.51 |
| Beta | 0.87 | — |
| Upside Capture Ratio | 119.37% | — |
| Downside Capture Ratio | 46.84% | — |
| Maximum Drawdown | -5.74% | -10.81% |
| Peak Value Date of Maximum Drawdown | 2020-01-31 | 2020-01-31 |
| Trough Value Date of Maximum Drawdown | 2020-03-31 | 2020-03-31 |
**HFRI ED Merger Arbitrage Index (Hedged to CAD)
Portfolio Allocations As at October 31, 2024
Exposure Breakout ±±
| Name | Weight |
|---|---|
| Long | 122.13% |
| Short | -17.93% |
| Gross | 140.06% |
| Net | 104.20% |
±± Exposure Breakout categories are shown as market values, except where indicated. Notional represents the total underlying notional exposure of the derivatives positions.
Portfolio Details
| Name | Value |
|---|---|
| Average Market Cap | $12.92 Billions |
| # of Deals | 30 |
| # of SPACs | 87 |
Fees
| Series | Management Fee | Fund codes |
|---|---|---|
| Class A | 2.00% | PIC 1900 |
| Class F | 1.00% | PIC 1901 |
| Class V | 0.95% | PIC 1905 |
Portfolio Management
Craig Chilton, CFA
Portfolio Manager, Merger Arbitrage
Tom Savage, CFA
Portfolio Manager, Merger Arbitrage