Vertex Fund

- An Authentic Alternative -

Overview

Portfolio Manager John Thiessen
Firm Assets $881 Million
Fund Assets $215 Million
Purchase Minimum $25,000 (initial), $1,000 (subsequent)
Type of Fund Multi-Strategy / Event Driven
Inception Date (A) Feb 6, 1998 (B) Oct 31, 2003 (F) March 31, 2003
RSP/TFSA Eligible Yes
Performance Fee 20% of the amount exceeding the high water mark
Management Fee (B)2% (F)1%
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

Strategy

The portfolio has an event-driven focus, wherein catalysts are identified that will likely have an impact on a company’s stock price or capital structure. Throughout an economic cycle, different strategies will provide more favourable risk/reward tradeoffs, permitting opportunities for reallocating capital. Fundamental analysis is the cornerstone of the team’s skill set, but the investment strategies include: merger arbitrage, convertible arbitrage, high yield debt, capital structure arbitrage, fundamental longs, shorts, options and other special situations.

Objective

The principal objective is the growth of capital in excess of benchmarks and to preserve capital throughout an economic cycle. The management team takes an opportunistic approach while employing a broad range of strategies to diversify the portfolio and drive results on a consistent basis.

Portfolio Managers

John Thiessen, CFA - Mr. John Thiessen is a founding partner and director of Vertex One Asset Management. Mr. Thiessen has overall responsibility for the investment and trading decisions affecting the Vertex Fund, Vertex Offshore Fund and Vertex Growth Fund. He has operated as the lead manager of the Vertex Fund since its inception on February 6, 1998. Mr. Thiessen has significant investment experience with 23 years of equity, fixed income and arbitrage investing. He began his career with the Alberta Treasury Investment Management Division, after which he became an Investment Officer with National Trust. He was a Portfolio Manager with HSBC Asset Management before co-founding Vertex One Asset Management. Mr. Thiessen holds the professional designation of Chartered Financial Analyst (CFA) and is a member of the Institute of Chartered Financial Analysts.

Fund Codes

  • Class F (NL) : VRT 301
  • Class B (FEL) : VRT 302
  • Class B (DSC) : VRT 303

Purchase Info

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

Quarterly Commentary

Fourth Quarter Report, 2018 - 2018 had the appearance of a relatively uneventful year until October arrived like an uninvited guest. The perceived effects of eight interest rate hikes over a two-year period, combined with the Federal Reserve reducing its balance sheet by $50 Billion-per-month, initiated a massive global sell-off. These were not new data points but once paired with an unpredictable trade-war it enacted fear-driven selling.

Vertex Fund A Performance

View Class B Statistics View Class F Statistics *Annualized compound returns. Returns are Net of all Fees and include reinvested distributions.

Class A Net Asset Value : $45.9749

As at January 31, 2019

1 Month

0.27%

3 Month

-19.11%

6 Month

-29.85%

YTD

0.27%

1 Year

-34.00%

3 Year*

-9.69%

5 Year*

-7.51%

10 Year*

6.03%

15 Year*

4.99%

Cumulative Return

Since Inception*

Percent Positive Months

722.68% 10.56% 67.06%
 
 
 

Strategy Allocation

Strategy

Long

Short

Net

Long 55.08% -3.51% 51.57%
Merger Arbitrage 37.94% -2.71% 35.23%
Private 7.48% 0.00% 7.48%
High Yield 10.02% 0.00% 10.02%
Outright Shorts 0.00% -4.47% -4.47%
Total 110.52% -10.69% 99.83%

Vertex Fund vs Benchmarks

Relative Statistic

TSX TRI

S&P 500 TRI $USD

Alpha 0.48%0.60%
Annualized Alpha 5.95%7.42%
Beta 0.760.55
Correlation 0.660.49
R-squared 0.440.24

Individual Statistic

FUND

TSX TRI

S&P 500 TRI $USD

Compound ROR 10.56%6.06%6.95%
Standard Deviation 16.65%14.52%14.97%
Cumulative Return 722.68%240.64%309.97%
Sharpe Ratio† 0.540.350.36
Sortino Ratio 0.840.520.57
Largest Monthly Gain 18.90%12.05%10.93%
Largest Monthly Loss -22.58%-20.11%-16.79%
Positive Months 67.06%61.90%64.29%

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

*Returns are based on Class A shares. Inception Feb 6, 1998

Historical Returns*

*Returns are based on Class A shares. Inception Feb 6, 1998

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Year

20190.27%0.27%
20181.82%-5.55%-1.39%0.46%7.40%-3.98%-2.51%0.38%2.14%-15.41%-9.53%-10.84%-32.98%
20170.26%-0.46%-1.17%1.18%0.86%-0.98%-2.61%-4.65%3.70%4.21%-2.09%3.71%1.55%
2016-7.42%1.56%0.34%-5.59%2.74%0.92%2.45%0.98%1.75%-3.12%2.36%3.67%-0.07%
20152.49%6.85%-1.45%-3.07%3.88%0.61%5.66%-3.56%-8.67%8.08%0.32%-1.51%8.67%
20143.90%1.44%0.62%0.22%-0.35%1.39%-0.27%-0.33%-2.72%-2.98%-2.45%-3.20%-5.09%
20130.84%1.73%3.13%-0.93%2.57%-1.86%1.55%1.40%0.62%1.53%2.25%2.49%16.47%
20124.24%1.90%1.61%-2.47%0.51%-0.56%3.25%1.25%2.36%0.32%1.86%-0.22%14.78%
20110.46%3.61%1.62%4.51%-3.86%-5.23%0.34%-2.00%-5.03%0.65%-3.54%-3.30%-11.70%
20101.14%1.82%6.92%0.80%-7.25%-2.54%2.42%1.04%5.09%4.11%1.74%3.36%19.46%
20091.73%2.35%4.00%8.07%11.40%5.43%5.02%6.72%7.26%2.39%1.86%6.89%84.18%
2008-5.85%6.67%-4.43%2.09%5.42%5.28%-9.08%-2.65%-22.58%-19.91%-1.47%1.59%-40.25%
20072.29%2.42%2.67%1.56%0.92%-1.42%-1.42%0.79%1.98%3.23%-3.29%0.05%9.99%
20066.27%-0.86%4.28%1.52%-6.34%-2.83%1.53%2.01%-2.51%4.95%2.48%4.07%14.72%
20051.54%6.28%-2.02%-4.36%4.09%3.51%5.28%4.06%2.05%-4.45%5.86%3.19%27.12%
20041.45%4.80%0.49%-4.11%-1.29%0.65%2.81%-0.50%7.51%0.92%5.55%0.81%20.20%
20031.61%0.08%-2.37%3.21%6.66%3.29%3.77%6.06%0.32%6.08%4.32%7.96%48.91%
20021.82%0.96%3.26%-2.13%4.23%-2.23%-11.93%4.01%-0.94%-1.54%-1.90%5.16%-2.44%
20010.12%0.10%-2.42%2.78%2.62%-0.11%1.09%1.95%-0.27%0.13%-1.50%2.85%7.42%
20003.95%18.90%-0.10%-0.88%3.21%2.54%1.67%5.29%2.07%-3.30%-0.85%3.11%39.93%
19999.36%-3.46%6.26%10.53%3.04%3.47%3.86%0.78%0.23%2.72%7.82%10.19%69.25%
19980.00%0.53%16.62%10.59%-4.29%-4.47%-1.57%-18.40%-1.08%-4.54%10.97%6.01%5.75%