Boutique investment firm announces broader alternative fund shelf for Canadians
Picton Mahoney Asset Management has completed its acquisition of the investment fund management contracts of four hedge funds and alternative mutual funds from Vertex One Asset Management.
With the acquisition, the firm has increased its total assets under management by $400 million.
“Risk Arbitrage strategies focus on reducing risk, lower volatility, and tax efficiency … to offer consistent, positive returns during all market environments,” David Picton, president and CEO of Picton Mahoney Asset Management, said in a statement.
“Given that many Canadian investor portfolios typically consist primarily of stocks and bonds, we believe that these risk-arb strategies offer a less correlated source of alpha which should help improve the quality of returns when added to more traditional portfolios,” Picton said.
As part of the transaction, the alternative mutual funds have been renamed. The former Vertex Liquid Alternative Fund is now the Picton Mahoney Fortified Arbitrage Alternative Fund, while the former Vertex Liquid Alternative Fund Plus is now the Picton Mahoney Fortified Arbitrage Plus Alternative Fund.
New names have also been announced for the former Vertex hedge funds. Specifically, the past Vertex Arbitrage Fund has been renamed the Picton Mahoney Arbitrage Fund, while what used to be the Vertex Arbitrage Fund Plus is now the Picton Mahoney Arbitrage Plus Fund.
Craig Chilton and Tom Savage, who have joined Picton Mahoney from Vertex One as part of the transaction, will continue in their roles as portfolio managers of the funds.