Vertex Arbitrage Fund Plus
- Absolutely Alternative -
“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.
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.
- Class F (NL) : VRT 991
- Class B (FEL) : VRT 992
- Minimum Investment :
- $25,000 for accredited investors
Third Quarter Report, 2018 - For the third quarter of 2018, the Vertex Arbitrage Fund returned 0.82% and the Vertex Arbitrage Fund Plus returned 1.60%. After an eventful first half of the year, Q3 was much closer to business-as-usual for arbitrage. While NXPI did “time out” in July, we had a very small position that didn’t materially impact the fund. We still have some merger situations that require Chinese government...