Lightwater is a Long Short Equity hedge fund Manager that focusses on Canadian mid-cap names that are uncrowded or under-followed by the market. We utilize pair trades to minimize market exposure and industry risk. We manage two funds, the Flagship Lightwater Long Short Fund and the Nimble Fund which is a more concentrated unpaired portfolio of our highest conviction investments long and short.
Founded
2007
Assets
< $100 M
Strategies
Long Short Equity
We are a hedge fund that is always hedged. We do so primarily through the use of pair trading. Our investment focus is Canadian mid-cap stocks, particularly those that are under-researched by the sell-side. We invest in publicly traded equities only. We do not invest in any resource stocks or private companies, nor do we use any derivatives.
Our objective is to earn 8%-10% regardless of market conditions. Our funds tend to perform well in flat markets and bear markets because of our fund structure.
Philosophy
Canada has one of the most concentrated brokerage industries in the world and one of the smallest hedge fund industries. As a result there are many opportunities to take advantage of market inefficiencies. Our investment focus is on Canadian mid-cap stocks, that are under-researched by the sell-side. We avoid crowded trades and we do not invest in any resource stocks - either long or short .
Approach
We rely on our own in-house research and build our own financial models to identify market inefficiencies. Once we have have conviction on either a long or short thesis we primarily use pair trades to reduce market and industry risk. We always have hedging in place at all times regardless of market conditions. There is a maximum of 40 stocks in the Long Short Fund and 20 in the Nimble Fund.
Team
Jerome Hass, CFA, Portfolio Manager
Jimmy Chu, CFA, Portfolio Manager
Michael Baker, Partner
Thomas Eveson, Partner
Portfolio Manager
Tom Eveson
[email protected]
372 Bay Street, Suite 1700
Toronto (ON) M5H 2W9
Telephone: 416 504 9767 x 104
Website: www.lightwaterpartners.com
