The Amethyst Arbitrage Fund is a North American focused, low volatility investment fund with a multi‐strategy arbitrage approach. The Fund employs event driven (mainly mergers & acquisitions), convertible securities (debentures, warrants, etc.), fixed income (mainly credit spreads between Canadian federal, provincial, municipal, and government agencies) and other arbitrage strategies (such as related pairs and SPACs) via an investment in the Amethyst Arbitrage International Master Fund (the “Master Fund”).

This Canadian Fund is available exclusively to Canadian residents. However, an international version of the fund available for non-Canadian resident investors. Click here for more information.

 


INVESTMENT OBJECTIVES

The investment objective of the Master Fund is to realize an absolute positive return:

  • Return: 5 to 10% above 91d Can T-Bills
  • Volatility: 5 to 7%, annualized
  • Capital protection and near zero correlation with traditional asset classes.

INVESTMENT STRATEGIES

The Master Fund, principally employs three strategies but may also utilize other arbitrage strategies:

  • EVENT DRIVEN ARBITRAGE opportunities
  • Mergers & Acquisitions other “pure” arbitrage opportunities
  • Private placements / subscription receipts / spin-offs / called bonds & preferred shares
  • CONVERTIBLE SECURITIES ARBITRAGE opportunities
  • Convertible debentures & synthetic convertible positions
  • Warrants and other exchangeable securities
  • FIXED INCOME ARBITRAGE opportunities
  • Relative value (mainly spread strategies) using Canadian federal, provincial, municipal and agency backed government debt as well as investment grade corporate bonds
  • Strategies on credit ratings, maturities, issuer types, liquidity profile, etc. with a very small directional component (opportunistic)
  • OTHER ARBITRAGE opportunities
  • Inter-listed Arbitrage between US and Canadian markets
  • Related pair arbitrage on the spreads between securities of the same issuer, or of a related issuer
  • Special Purpose Acquisition Company (“SPAC”) arbitrage
  • Other arbitrage opportunities

The relative weighting of each strategy will vary according to the opportunities available at any given time.

FUND FACTS

FUND FACTS

FEES STRUCTURE & LIQUIDITY
Management 2% Investment Vehicle Canadian Trust
Performance 20% above Hurdle Rate Valuation Currency
Hurdle Rate 91d T-bill Dealing Frequency Monthly
High Watermark Valuation Monthly
Early Redemption Fee None Redemption Notice
Lock-up Period None Min. Subscription

PORTFOLIO MANAGERS