Market Neutral

Investment approach

Absolute return strategy based on “pairs trading” through long and short positions of equal value, selected following thorough fundamental analysis. The strategy offers positive long-term returns and downside protection in case of market downturns. The approach limits volatility and maintains low correlations to market movements through rigorous risk management parameters including neutral currency and sector exposure, minimal net market exposure, and strict liquidity constraints.

Key Characteristics

  • Aims to mitigate volatility while generating positive returns
  • Targets enhanced diversification through a portfolio with low correlation to traditional asset classes
  • Aims to provide downside risk protection against an equity market slowdown
  • Focused on fundamental analysis to generate value across market environments
  • Targets considerably lower volatility than Canadian equities