Waratah Expands AUM Rapidly Since 2010 Launch

Jun 13 2011 | 11:09am ET

Canadian hedge fund manager Waratah has seen its assets under management grow from $25 million at launch in July 2010 to $160 million as of May, 2011.

Waratah co-founder Blair Levinsky told FINalternatives the assets have all been generated domestically in Canada, “It’s a combination of high net worth, family offices and institutional, in that order.”

Levinsky says Toronto-based Waratah’s strategy represents the marriage of capital protection and risk management with good stock selection.

The firm operates three long/short equities vehicles. The Performance Fund is a “best ideas” fund that focuses North American equities, targets an annualized return of 15% and features the fewest positions and heaviest weightings of the three funds.

The Waratah One fund features the same focus on North American long/short equities but targets 8-12% annualized returns and is highly diversified with much less market exposure than the Performance fund (and overlaid with a quantitative risk model).

The third vehicle, the Waratah Income Fund, is a long/short dividend equity fund that also targets annualized returns of 8-12% while trying to achieve 4-7% portfolio carry from long dividends versus short dividends. Long side stocks in the fund must have dividend yields of 2% or higher.

In May 2011—a month which wasn’t generally kind to hedge funds—the Performance fund was up 0.5%, bringing its YTD gains to 6.0% (and 30% over the past 11 months); the Waratah One fund was up 0.1%, or 1.2% YTD; and the Waratah Income fund was up 0.7% or 5.0% YTD.

Levinsky expects he and partner Brad Dunkley will launch offshore versions of the funds within the next six months. “It’s heating up in terms of interest outside of Canada,” says Levinsky, “I’d say when we get to a critical mass in terms of interest and/or allocations, then we’ll launch those funds.”


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

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.