Salida expands fund range

Date: Monday, February 1, 2010
Author: Kris Devasabai, HedgeFunds Review

Salida Capital has launched the Wealth Preservation Fund, a low-volatility long/short equity fund with a focus on resources and precious metals.

Salida has also made its offshore Strategic Growth Fund and Global Energy Fund, both of which returned over 200% in 2009, available to Canadian investors as onshore vehicles.

Salida's funds posted some of the best returns in the hedge fund industry in 2009.

The Salida Multi-Strategy Fund for Canadian investors, managed by Brad White, was up 182% for the year. It is currently ranked as the top performing fund in Canada over a five year period.

The Strategic Growth Fund, managed by Salida's founder and chief investment officer Danny Guy, was up 209%.

Salida's Global Energy Fund gained over 220% in 2009 and is ranked by BarclayHedge as the second best performing fund in its sector on a three year basis.

The Strategic Growth Fund and Global Energy Fund are being made available as onshore investments for accredited investors in Canada with a minimum investment of $25,000. The offshore versions, domiciled in the Cayman Islands, have a minimum subscription requirement of $1 million.

Salida's investment funds combine top-down macro themes with a fundamental, bottom-up approach to stock selection. Its funds currently have a long bias and emphasis on natural resources and precious metals equities. This is a reflection of the investment team's current macro outlook. Salida's investment style is active and opportunistic with a focus in event-driven opportunities in the Canadian resources sector.

The Wealth Preservation Fund is designed to be a low-volatility alternative to Salida's existing range of funds. It will target a 10%-15% average annual rate of return with lower volatility than the TSX index and a 30 day liquidity option for investors. The fund is managed by Brian Trenholm.

"The Wealth Preservation Fund came out of the conversations we had with potential investors. People told us that they believed in our macro themes and wanted access to our expertise but they wanted something with a lower risk/return objective than our existing products," said Courtenay Wolfe, CEO of Salida Capital, in an interview.