Canada’s Palos Launches Hedge-Like Mutual Fund

Apr 6 2011 | 3:44am ET

Hedge fund Palos Management is bowing to market pressure by setting up a mutual fund.

The Montréal-based firm’s Equity Income Fund invests primarily in Canadian income-paying securities. But Palos is a hedge fund, after all, so the new fund will have some freedom to short securities or engage in merger arbitrage and pairs trading strategies.

“We were being asked by investment advisers to create a mutual fund for retail investors that pays out quarterly distributions and is RRSP eligible, so that their clients could have access to our unique strategies,” Charles Marleau, president of Palos, said.

The “new” fund isn’t actually all that new: It’s been around as a private mutual fund for more than three years. It launched as a public mutual fund in February and boasts some C$11.5 million in assets.

And while Marleau will have some freedom to use hedge-like strategies, the fund can invest no more than 20% of its assets in short positions and cannot invest outside of North America.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.