Vertex Arbitrage Fund
- Absolutely Alternative -
"Merger arbitrage" will be 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. When part of the merger consideration includes shares of the acquiring company, the fund hedges by selling short these shares while simultaneously buying the target company shares. In a deal for cash consideration only there is no need to hedge with the acquirer's stock. The resulting portfolio is thus considered market-neutral.
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 typically 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 901
- Class B (FEL) : VRT 902 (closed to purchases)
- Minimum Investment :
- $25,000 for accredited investors
Fourth Quarter Report, 2017 - The Vertex Arbitrage Fund and the Vertex Arbitrage Fund Plus returned -0.92% and -1.59% (F Class) respectively in the fourth quarter. For the calendar year 2017, the funds were up 2.52% and 3.60% respectively. The most significant event in the quarter was the widening of the Time Warner/AT&T merger arbitrage spread.