Hillsdale’s Long/Short Strategies are higher return, non-correlated strategies designed to substitute or complement traditional equity strategies. The strategies use leverage up to two times its equity and have volatility equal to or less than traditional equity strategies. They always maintain a hedged position, with short positions offsetting some of the volatility inherent in the long portion of the portfolio.
Because of their non-correlated performance, these strategies are suitable for most investors with lower risk targets and above average return requirements.
Canadian Long/Short Equity Strategy
The investment objective of the Strategy is to provide a rate of return on capital in excess of Canadian equities over a three-year period with a low correlation to, and volatility equal to or less than, the S&P/TSX Composite Index. The Canadian Long/Short Fund invests a minimum of 80% of its Total Assets primarily in a diversified selection of at least 50 Canadian corporations and trusts trading on major Canadian stock exchanges with at least CAD $50 million market capitalization at the time of purchase or short sale. The Fund maintains a Net Market Exposure between 20% and 70% at all times with aggregate short positions maintained at a minimum of 25% of its Total Assets. No equity holding of a single corporation or trust trading on a major Canadian stock exchange, either through direct holdings or indirectly through an investment in another investment fund, will exceed 5% of its Total Assets. The Fund may use derivative instruments, in order to protect against losses from changes in market indices and for non-hedging purposes as a substitute for direct investment. The total value of such transactions will not exceed 5% of its Total Assets. Leverage is limited to a maximum of two times the Fund’s Net Asset Value.
Global Long/Short Equity Strategy
The investment objective of the Strategy is to provide a rate of return on capital in excess of global equities over a three-year period with a low correlation to, and volatility equal to or less than, the MSCI World Index. The Fund invests primarily in a diversified selection of at least 50 corporations and trusts trading on major stock exchanges and which, at the time of purchase or short sale, have a market capitalization of at least US $50 million. The aggregate investment in corporations and trusts in any one country will not exceed 60% of Total Assets; The Fund maintains a Net Market Exposure between 20% and 70% at all times with aggregate short positions maintained at a minimum of 25% of its Total Assets. No equity holding of a single corporation or trust, either through direct holdings or indirectly through an investment in another investment fund, will exceed 5% of its Total Assets. The Fund may use derivative instruments in order to protect against losses from changes in market indices and for non-hedging purposes as a substitute for direct investment. The total value of such transactions will not exceed 5% of its Total Assets. Leverage is limited to a maximum of two times the Fund’s Net Asset Value.
Enhanced Income Fund
The Hillsdale Enhanced Income Fund invests a minimum of 40% of its assets in investment trusts, equity and equity related securities of at least 20 issuers listed on major stock exchanges which, at the time of purchase, have a market capitalization of at least CAD$50 million. The Fund invests a minimum of 20% of its assets in higher yielding corporate bonds, government debt and fixed income securities, principally through the use of ETFs listed on major stock exchanges. No less than 50% of the portfolio will be invested in Canadian dollar denominated securities. The Fund may write covered call options or cash secured put options to enhance income, provided that the total value of such transactions will not exceed 10% of its assets. The Fund will invest in inverse ETFs in order to protect against losses from changes in market indices. The Fund will not hold securities of a single corporation or trust, excluding ETFs, either through direct holdings or indirectly through investment in another investment fund, which will exceed 10% of its assets. The Fund limits its use of leverage to two times the Fund’s Net Asset Value.