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Hillsdale’s Canadian Micro Cap Equity Fund Now Available for Institutional Investors
TORONTO, January 2014 – Hillsdale is pleased to announce that institutional investors can now directly access and invest in the Hillsdale Canadian Micro Cap Equity Fund, as this strategy has been launched as a separate Fund. This Fund is suitable for investors who seek high excess returns and have an above average risk tolerance. It is an ideal complement to traditional equities or a substitute for small cap equities as it invests in Canadian companies with a market capitalization of less than $250M. The Fund has been seeded with $25 million and is limited in capacity.
Since 2009, the micro cap strategy has been a component of the Hillsdale Canadian Performance Equity Fund adding both value added and diversification benefits. The launch of this separate Fund, one of a few of its kind in Canada, provides investors with access to a strategy that is similar in nature, and perhaps superior in some characteristics, to many private equity funds. These companies also tend to have entrepreneurial qualities with flat organizational structures and a high concentration of share ownership amongst management.
The performance potential of micro cap stocks can be partially explained by the fact that most institutional investors and analysts tend to neglect and under-research these companies. This can result in micro cap stocks trading at a significant discount to fundamental value. The lack of analyst coverage in the micro cap universe should allow a skilled, disciplined investor the opportunity to add significant value.
The Hillsdale Canadian Micro Cap Equity Fund is designed to capitalize on these stock opportunities by leveraging the investment research and portfolio management skills developed from actively investing in small cap equities for over 18 years. As over 60% of the stocks in the small cap universe are micro cap stocks, this large and broad opportunity set provides a skillful manager with plenty of choice to build a superior portfolio.
For additional information on this Fund, please refer to the attached Hillsdale research article, Canadian Micro Cap: The Hidden Diamond in Small Cap Investing or contact Allan Hutton at (416) 913-3946 or Johnny Quigley at (514) 513-4398.
Hillsdale Investment Management is an employee owned, institutional investment boutique specializing in high alpha, smart beta and custom designed strategies. Hillsdale’s adaptive investment approach utilizes the best of fundamental, quantitative and capital market research in building disciplined and superior strategies adjusted for risk.