Our Funds
We manage two long short equity funds: the Lightwater Long Short Fund and the Nimble Fund. Both are focused on Canadian mid-cap stocks and have a bottom-up investment approach. The Lightwater Long Short Fund holds a maximum of 40 positions (long and short combined) and has a mid-cap / large-cap orientation. The Nimble Fund holds a maximum of 20 positions (long and short combined) and has a mid-cap / small-cap orientation. In general, there are 8-12 positions that are held by both funds. Both funds aim to be able to perform regardless on market conditions.
Lightwater Long/Short Fund
This strategy has a 10 year track record and is our “flagship” fund. Its investment approach is based on bottom-up, fundamental analysis of companies. We try to identify and invest in “uncrowded” trades that are under-followed mid-cap stocks using a long/short investment strategy. This approach has enabled Lightwater to significantly outperform Canadian equity markets over the past 10 years with less risk & volatility. We do not make direct investments in resource stocks and we avoid investments in private companies.
Click here for more information about the Lightwater Long/Short Fund
Nimble Fund
The Nimble Fund is a concentrated portfolio 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: 0.04 (since inception). The Nimble Fund does not have any investments in private companies and it does not invest in resource stocks.
