Past BTR Funds Overview
The BTR Global Arbitrage Fund, BTR Global Opportunity Fund and BTR Global Prospector Fund were affected by market dislocation as a result of exposure to Lehman Brothers International (Europe) and Lehman Brothers Inc. These funds have since ceased trading, are closed to investment, and their assets are being liquidated.
The following funds are closed for investment.
BTR Global Arbitrage Fund
Objective
The BTR Global Arbitrage Fund will engage in various hedged and arbitrage related investment strategies with the objective of earning above average rates of return by exploiting market inefficiencies. In seeking to fulfill its investment objective, this fund will invest in a variety of financial instruments and emphasize hedging techniques to earn attractive rates of return with minimal correlation to the price fluctuations in the equity and fixed income markets. Generally, the BTR Global Arbitrage Fund’s assets will be invested in debt, equity and related securities.
Strategy
This is a multi strategy fund primarily utilizing three strategies with no restrictions on strategy weight:
(i) long/short equity and debt investments;
(ii) convertible bond arbitrage; and
(iii) risk arbitrage/merger arbitrage.
BTR Global Opportunity Fund
The sequel to this fund is the BTR Strategic Growth Fund.
Objective
The investment objective of the BTR Global Opportunity Fund is to maximize absolute returns on its investments while attempting to mitigate some market risk. This fund intends to accomplish this objective by optimising the reward per unit of risk of the investment portfolio by varying the allocation of long and short positions depending on the domestic and international economy and market trends and other considerations.
Strategy
BTR Global Prospector Fund
Objective
The investment objective of the BTR Global Prospector Fund is to maximize absolute returns on investments in the global mining sector with a focus on small to mid capitalization companies active in the late stage exploration and development of quality projects. The BTR Global Prospector Fund will invest in opportunities that it believes, at the time of investment, will yield the best reward per unit of risk. The objective will be achieving the maximum equity exposure to the best exploration or development situations. Where possible, the risk of the portfolio will be mitigated by diversifying its exposure to companies involved in developing a range of mineral commodities and who are active in various mining regions of the world.
Strategy
The following funds are closed for investment.
BTR Global Arbitrage Fund
Objective
The BTR Global Arbitrage Fund will engage in various hedged and arbitrage related investment strategies with the objective of earning above average rates of return by exploiting market inefficiencies. In seeking to fulfill its investment objective, this fund will invest in a variety of financial instruments and emphasize hedging techniques to earn attractive rates of return with minimal correlation to the price fluctuations in the equity and fixed income markets. Generally, the BTR Global Arbitrage Fund’s assets will be invested in debt, equity and related securities.
Strategy
This is a multi strategy fund primarily utilizing three strategies with no restrictions on strategy weight:
(i) long/short equity and debt investments;
(ii) convertible bond arbitrage; and
(iii) risk arbitrage/merger arbitrage.
- The fund will
engage in various hedged, unhedged and arbitrage related investment
strategies with the objective of earning above average rates of returns
by exploiting market inefficiencies.
- The manager will determine the
strategy allocations based on the best opportunities in the market.
- The
long/short strategy will typically be smaller to mid capitalization
companies ($500mm to $1.5b). Any sector can be represented but the
portfolio bias will be towards “hard assets” or natural resources and
the industries that support those sectors. The most inefficient sectors
are in the hard asset category, and the most inefficient component of
this category is in the smaller capitalization area.
- The convertible
strategy will be typical convertible arbitrage scenarios from any
sector of the economy, although we look for exposure to equity.
- Distressed and special situations will be incorporated on an opportunistic basis. The merger strategy will be from any sector of the economy, but where we can value the balance sheet on a fundamental basis. Hedging is used largely to mitigate some market risk and smooth volatility.
BTR Global Opportunity Fund
The sequel to this fund is the BTR Strategic Growth Fund.
Objective
The investment objective of the BTR Global Opportunity Fund is to maximize absolute returns on its investments while attempting to mitigate some market risk. This fund intends to accomplish this objective by optimising the reward per unit of risk of the investment portfolio by varying the allocation of long and short positions depending on the domestic and international economy and market trends and other considerations.
Strategy
- Making long investments in securities that are believed to be undervalued. These will include securities of companies that have strong balance sheets, superior earnings growth, improving fundamentals and solid business models.
- Short selling of securities which are believed to be overvalued. This would include debt and equity of companies with weak balance sheets, deteriorating fundamentals and other factors which merit a determination of overvaluation.
- Implementing credit-focused strategies periodically. This would include convertible arbitrage, capital structure arbitrage, event/catalyst investing, distressed debt investing and long/short credit securities.
- Executing upon arbitrage strategies where the BTR Global Opportunity Fund can capture the price spread between: (i) the current market price of a subject security and the value of the subject security upon completion of a take-over or merger that has been announced (merger arbitrage); and (ii) the price of the convertible securities and the value of the underlying securities to lock in a conversion profit or to conserve and protect the coupon on such securities (convertible arbitrage).
- Identifying restructuring or spin-off opportunities in companies that may be involved in multiple lines of business. Spinning off divisions may provide arbitrage or net pricing opportunities.
- Participating in select private placements of companies that have compelling growth characteristics (as outlined above) and offer potential for significant price appreciation upon completion of their initial public offering.
BTR Global Prospector Fund
Objective
The investment objective of the BTR Global Prospector Fund is to maximize absolute returns on investments in the global mining sector with a focus on small to mid capitalization companies active in the late stage exploration and development of quality projects. The BTR Global Prospector Fund will invest in opportunities that it believes, at the time of investment, will yield the best reward per unit of risk. The objective will be achieving the maximum equity exposure to the best exploration or development situations. Where possible, the risk of the portfolio will be mitigated by diversifying its exposure to companies involved in developing a range of mineral commodities and who are active in various mining regions of the world.
Strategy
- Using the strong technical skills and global network of contact, the fund will
identify small to mid capitalization mining companies that require equity to
advance their high quality exploration or development projects.
- The preferred investments of the fund are new public issues or private placements of securities that provide new equity capital to small to mid capitalization mining companies to advance their projects, although the fund has the ability to purchase previously issued shares (primarily through the facilities of stock exchanges) of suitable investment candidates.
- Share positions of the fund in smaller capitalization companies will be of an appropriate size based on trading liquidity to facilitate the successful exit of the investment through the market.
- The fund will consider investments in convertible debentures or other structured products where appropriate.
- The fund will have the ability to hedge its exposure to various elements or risk through the use of short sales or derivatives, however this is not expected to constitute a major activity of the fund.