is a low volatility hedge fund using 3 arbitrage strategies, primarily executed on the Canadian market. While(debentures, warrants ) arbitrage take advantage of pricing anomalies between contractually related securities, thearbitrage segment focuses on credit spreads between related securities of Canadian federal, provincial, municipal, and government agency issuers.
This version of the Fund is exclusively available to Canadian residents; non-Canadian resident investors are invited to browse the Cayman-based versionhere.
The Amethyst Arbitrage Funds primary objective is to realize independent of equity and bond market fluctuations:
As the Fund is targeted essentially to institutional clients (notably pension plans, foundations and similar),capital protectionis emphasized and implies:
Disciplined portfolio management with rigorous and systematic bottom-up analysis of opportunities, have allowed Amethyst to offer returns to its investors with a fairly high degree of independence from both traditional asset classes and comparable arbitrage strategies.
The Fund invests chiefly in the Canadian markets employing arbitrage strategies on
opportunities (mainly mergers & acquisitions, but also buybacks & other opportunities on contractually related securities)
securities (mainly convertible debentures/bonds, but also warrants & other exchangeable securities)
securities (mainly spread strategies using Canadian federal, provincial, municipal and agency backed government debt as well as investment grade corporate bonds)
In general, the portfolio weightings of the first 2 strategies vary between 35% and 45%, while the fixed income arbitrage is capped at 25% of the Funds NAV. However, at any given time, these relative weightings will vary according to the opportunity set available to each strategy.