Our Funds
The Strategy Behind Your Returns
We manage two funds that are open to investment: the Lightwater Long Short Fund and the Nimble Fund. Both are focused on Canadian mid-cap stocks.
The Canadian mid-cap market is highly inefficient. We use stock-specific approaches when building our portfolios. We look for ‘under-followed’ and over-looked stocks that are not correctly valued by the broader market. Once these mis-pricings are identified, we invest in stock that can benefit from catalysts to unlock these hidden values.
Lightwater Long/Short Fund
The Lightwater Long Short Fund is our flagship (and oldest) fund.
The fund employs hedging at all times and has a 16-year track record that demonstrates the fund’s ability to protect capital. It holds a maximum of 40 positions, long and short combined. It uses pair trading (i.e. long one stock, short another in the same sector) to hedge sector and market risks.
The Lightwater Long Short Fund does not have any investments in private or unlisted companies. We have a liquid portfolio of publicly-listed stocks.
This fund is available via the Fundserv network so it may be purchased through most financial institutions in Canada or directly from Lightwater Partners. Please contact us for more details.
Nimble Fund
The Nimble Fund was awarded Best Canadian Equity Hedge Fund in 2015 and 2021.
The Nimble Fund started trading in March 2013. It is also a long-short fund in structure.
The Nimble Fund is a concentrated portfolio (maximum of 20 positions ) of Lightwater’s best investment ideas. This strategy applies to both long and short positions. In contrast to our flagship fund, this fund does not use any pair trading. It consists solely our best “alpha long” and “alpha short” investments. As a result, the portfolio is more capital efficient than the flagship fund.
One of the benefits of this approach has been its lower correlation with the TSX index: 0.14 (since inception). The Nimble Fund does not have any investments in private companies. We have a liquid portfolio of publicly-listed stocks.
This fund is available via the Fundserv network so it may be purchased through most financial institutions in Canada or directly from Lightwater Partners. Please contact us for more details
What are the differences between the two funds?
- The Nimble Fund is more concentrated (no more than 20 positions versus maximum of 40 in the Lightwater Long Short Fund).
- The Nimble Fund does not use pair trading (i.e. long and short two stocks in the same sector), while the Lightwater Long Short Fund does.
- The Nimble Fund is more growth-oriented
- The Lightwater Long Fund is the more conservative of the two in general.
- The two funds hold many positions in common.