Toronto-based Spartan Fund Management has launched a higher-net version of its long-short global opportunities fund.
The Humber Global Opportunity Fund, managed by John Durfy and Rob Durfy, will typically have net market exposure of approximately 50% (plus or minus 25%).
The Humber Global Preservation Fund, with the original net market exposure of 15% (plus or minus 10%), will continue to be offered via managed accounts.
Both strategies target “consistent and attractive risk-adjusted returns, with an emphasis on capital preservation” through hedged equity exposure to concentrated group of mid- and large-cap global developed-market companies.
Spartan aims to generate alpha on its long positions while using individual shorts to generat alpha and baskets of shorts to act as a hedge. Long and short positions will be established in companies based on attributes such as return on invested capital, balance sheet strength, barriers to entry, pricing power, growth of end-markets and valuations.
Said John Durfy, lead manager of Humber Global, in a statement:
“When the Humber Global Opportunity Fund was first launched, it was structured to appeal to institutional investors who wanted a low-net (i.e. low volatility) global fund in Canada. Since then, many retail investors have asked us to offer a global long/short fund with a higher targeted return. In response, we 'soft launched' a fund with a net exposure of ~50% and a slightly lower gross exposure than our original fund. The results from the April 15th inception through to the end of July have been in line with our expectations, with the new fund delivering an estimated return of 4.66% vs. the MSCI return of 3.11% while operating with a net position of ~47% and a beta of just 0.44.”
John Durfy was most recently managing director at the Ontario Municipal Employees Retirement System with responsibility for a $2 billion global equity portfolio. Prior to that he was responsible for co-managing a global long-short equity portfolio, as well as Canadian and global portfolios from $300 million to $10 billion.
Rob Durfy has been in senior equity analysis and associate portfolio management positions since 2001, focusing exclusively on global equities. He has advised on specific sectors of global and North American portfolios ranging from $500 million to $14 billion.
Established in 2006, Spartan specializes in experienced emerging Canadian alternative investment managers that have proven expertise within a well defined investment strategy. Spartan offers both strategy specific funds as well as a multi-strategy fund.