Vertex Arbitrage Fund Plus

- Absolutely Alternative -


Portfolio Manager Tom Savage & Craig Chilton
Purchase Minimum $25,000 (initial) $1,000 (subsequent)
Type of Fund Market Neutral
Inception Date February 28, 2017
RSP/TFSA Eligible Yes
Performance Fee 15% of the amount exceeding the high water mark
Management Fee F Class: 1% B Class: 2%
High Water Mark Yes
Valuation Frequency Monthly
Distribution Frequency Annually, if applicable.
Offering Type Offering Memorandum
Administration CIBC Mellon
Trustee CIBC Mellon
Prime Broker TD Securities Inc.
Auditor PwC


“Merger Arbitrage” is the predominant strategy of the fund; this involves capturing a profit from the discount between the market price and the “deal” price for a target company in an announced, legally-binding, merger situation. There are two main types of corporate mergers: cash and stock mergers. In stock mergers, the fund hedges market risk by selling short the acquiring company shares, while simultaneously buying the target company shares. In cash mergers, there is no need to hedge with the acquirer’s stock. In both situations the resulting portfolio is market-neutral. This fund utilizes leverage to enhance returns.


The principal investment objective is to generate consistent, positive returns, with low volatility and low correlation to equity markets. With the majority of the return in the form of capital gains the fund will be a tax efficient investment vehicle.

Portfolio Manager

Craig Chilton and Tom Savage are the portfolio managers of the Vertex Arbitrage Fund. Both joined Vertex One in January 2010 from CIBC’s highly successful, proprietary trading group.

Craig Chilton, CFA - Mr. Chilton has an extensive background in event-driven arbitrage strategies. Prior to joining Vertex One, he was a Managing Director with CIBC World Markets, where he spent 15 years as a proprietary trader in Toronto, New York and Vancouver. Craig began his finance career in investment banking with Lancaster Financial, and subsequently, Richardson Greenshields. Craig has over 20 years of experience in the investment industry; he is a CFA charterholder and a member of the Vancouver Society of Financial Analysts. He received a Bachelor of Applied Science (Electrical Engineering) from the University of Toronto.

Tom Savage, CFA, MBA - Mr. Savage has an extensive background in alternative strategies and is part of the Vertex One team specializing in merger arbitrage, event-driven arbitrage, and special situations. Prior to joining Vertex One, Tom was a proprietary trader with CIBC World Markets where he was responsible for equity and derivatives arbitrage and special situations strategies. Formerly, he worked in private equity at Birch Hill Equity Partners and began his career as an equity analyst at KBSH Capital Management. Tom is a CFA charterholder and a member of the Vancouver Society of Financial Analysts. He received a Bachelor of Commerce degree from Queen’s University and an MBA from Harvard Business School.

Fund Codes

  • Class F (NL) : VRT 991
  • Class B (FEL) : VRT 992

Purchase Info

  • Minimum Investment :
  • $25,000 for accredited investors

Quarterly Commentary

Third Quarter Report, 2019: The Vertex Arbitrage Fund and Vertex Arbitrage Fund Plus (both Class F) returned 0.71% and 1.47% respectively in the third quarter. The third quarter was relatively straightforward for the arbitrage portfolio. One notable change is that, for the first time in several years, we have some significant positions in Canadian arbitrage opportunities. There were two large subscription receipts issued in the third quarter, by Northland Power...

Vertex Arbitrage Fund Plus F Performance

View Class B Statistics *Annualized compound returns. Returns are Net of all Fees and include reinvested distributions. Inception February 28, 2017.

Class F Net Asset Value : $11.3098

As at October 31, 2019

1 Month


3 Month


6 Month




1 Year


2 Year*


Cumulative Return

As at October 31, 2019

Since Inception*

As at October 31, 2019

Percent Positive Months

As at October 31, 2019
15.40% 5.52% 84.38%

Portfolio Details

Average Market Cap

# of Deals

# of SPACs*

$15 Billion 21 70








*Special Purpose Acquisition Companies

Vertex Arbitrage Fund Plus vs Benchmarks

Relative Statistic


HFRI Equity Market Neutral Index

Beta -0.14
Correlation -0.13
Standard Deviation 2.49%2.28%
Cumulative Return 15.40%4.59%
Positive Months 84.38%63.64%
Median Monthly Return 0.49%0.30%
Sharpe Ratio† 1.370.75
Largest Monthly Gain 1.75%1.40%
Largest Monthly Loss -2.30%-1.33%
Max Drawdown -2.30%-2.76%
Max Drawdown Duration 7 Months17 Months

†Risk Free Rate = 1 Month LIBOR $USD (annualized)

*Returns are based on Class F shares. Inception February 28, 2017

Historical Returns*

*Returns are based on Class F shares. Inception February 28, 2017