With a year to date loss of 3.6% (at November 30), this fund has lagged the 11% rise in the S&P/TSX Composite by a considerable margin. What a difference a year makes, as last year, it gained more than 27% and was one of the stronger Canadian focused equity funds out there. Things started to go bad for this fund in September and it never really regained its footing. Much of that can be attributed to its overweight exposure to energy and financials, which have both been hit in the past few months. It also holds a significant overweight in tech.
It is an all cap equity fund, managed using a high conviction, high turnover, opportunistic approach that blends bottom up fundamental security selection and top down macro analysis.
It was recently announced that the fund’s manager, Red Sky Capital has resigned from the fund effective January 9, 2015, and the fund would be closed to new investors at the end of the year. Brandon Snow of Cambridge Global Asset Management will take over the reins. Mr. Snow has an excellent track record, and is one of my favourite managers at the moment. While nothing has been announced, it is my expectation that the fund will be merged into one of Cambridge’s other funds. Regardless, with Mr. Snow at the helm, I expect the fund’s risk reward profile will improve dramatically.