Portland Focused Plus Fund LP
James Cole, CFA
Senior Vice President and Portfolio Manager
James has over 36 years of investment experience including over 27 years as a portfolio manager responsible for Canadian and U.S. equities.
As at September 30, 2020
|Annualized Returns (%)||1 Month||3 Months||6 Months||1 Year||3 Years||5 Years||Inception|
|Portland Focused Plus Fund LP Series A||-6.0%||2.5%||37.8%||-6.7%||7.1%||14.9%||15.6%|
|Portland Focused Plus Fund LP Series F1||-6.0%||2.8%||38.6%||-5.7%||8.2%||16.1%||16.8%|
|Portland Focused Plus Fund LP Series M||-6.0%||2.8%||38.6%||-5.3%||9.7%||18.3%||18.9%|
|Portland Focused Plus Fund LP Series P||-5.9%||3.1%||39.4%||-4.6%||9.3%||17.2%||17.7%|
|S&P/TSX Composite Total Return Index2||-2.1%||4.7%||22.5%||0.0%||4.3%||7.2%||6.5%|
|S&P 500 Total Return Index (US$)**2||-3.8%||8.9%||31.3%||15.1%||12.3%||14.1%||13.9%|
Fund Information by Series
|Net asset value per unit||$157.6513||$170.3256||$195.7670||$181.6055||$50.0000|
|High water mark||$172.6715||$184.8818||N/A||$195.2595||N/A|
|Min. initial investment, accredited investors||$2,500||$2,500||$1,000,000||$1,000,000||$10,000,000|
|Min. initial investment, others||$150,000||$150,000||N/A||N/A||N/A|
|Min. subsequent investment||$500||$500||$500||$500||$500|
|Fund Net Assets||$48.0 million|
|Introduction Date||October 31, 2012|
|Fund type||Alternative Strategies|
|Offer document||Offering Memorandum|
|Legal type||Limited Partnership|
|Eligible for PACs||No|
|Purchases and redemptions||Monthly|
|Minimum investment term||None|
|Notice period for redemptions||None|
|Performance fee||10% of the amount above the high water mark|
Private Capital Markets Awards – are the only national industry awards for private capital markets professionals, which recognize business leaders who help build a vibrant and successful private capital markets in Canada. Nominees are evaluated based on their leadership in the industry, their contribution to the deal, innovative market, product or investment opportunities created, the benefits of the deal for the issuer and for investors, and the overall impact of the deal on the quality and integrity of the private capital markets
How The Fund is Managed
To achieve this investment objective, the Manager will employ the following core techniques:
Focused investing in a limited number of long securities positions; and
Leverage by purchasing securities on margin.
To a lesser extent, the following techniques may also be used on an opportunistic basis in order to meet the LP’s investment objective:
Derivatives may be used to limit or hedge potential losses associated with currencies, specific securities, stock markets and interest rates or to generate income.
Short sale positions may be used to profit from the expected decline in valuations of overvalued securities or to hedge the LP’s long positions.
The LP may also invest in preferred shares and debt securities including convertibles, corporate and sovereign debt.
In addition, the LP may obtain exposure to securities through investing in underlying investment funds. Including mutual funds, investment funds and exchange-traded funds.
The LP may hold cash in short-term debt instruments, money market funds or similar temporary instruments pending full investment of the LP’s capital and at any time deemed appropriate by the Manager.
The LP has no geographic, industry sector, asset class or market capitalization restrictions.
There is no restriction on the percentage of the Net Asset Value of the LP which may be invested in the securities of a single issuer.
Preservation of capital
Units are being offered on a continuous basis to investors resident in in the Provinces or Territories of Canada who (a) are accredited investors, (b) non-individuals who invest a minimum of $150,000 in the LP, or (c) to whom Units may otherwise be sold.
The Manager has designated four series of Units, which are currently being offered:
Series A Units are available to all investors who invest a minimum of $2,500 and who meet the minimum investment criteria.
Series F Units will generally only be issued to investors who invest a minimum of $2,500, who purchase their Units through a fee-based account with their registered dealer and meet the minimum investment criteria.
Series M Units will be issued to investors who make an initial investment of $1,000,000 or more.
Series P Units will be issued to investors who make an initial investment of $1,000,000 or more.
Series Q Units will be issued to investors who make an initial investment of $10,000,000 or more.
Please see the Offering Memorandum for fees and specific details on the offering.Offering Memorandum Subscription Agreement Partnership Agreement
The Manager believes that the following risks may impact performance of the Fund: concentration, leverage, currency and exchange rate risk and equity risk. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed discussion of the relevant risks.
* Annualized, Series F units
** The S&P 500 Index is shown in U.S. dollars rather than in Canadian dollars since the Fund generally hedges its exposure to the U.S. dollar.
1 Since the Fund does not necessarily invest in the same securities as the benchmark or in the same proportion, the performance of the Fund may not be directly comparable to the benchmark. In addition, the Fund’s returns reflect the use of leverage. The use of benchmarks is for illustrative purposes only, and is not an indication of performance of the Fund.
2 Generally available through dealers who have entered into a Portland Series F Dealer Agreement.
3 The awards are based solely on quantitative performance data of 221 Canadian hedge funds to June 30th, 2020 with Fundata Canada managing the collection and tabulation of the data to determine the winners. There is no nomination process or subjective assessment in identifying the winning hedge funds.
Commissions, trailing commissions, management fees and expenses all may be associated with investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemptions, distributions or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Funds are not guaranteed, their values change frequently and past performance may not be repeated.
The LP is not publicly offered. It is only available under offering memorandum and other exemptions to investors who meet certain eligibility or minimum purchase requirements such as “accredited investors”. You will only be permitted to purchase Units if your purchase qualifies for one of these exemptions. A list of criteria to qualify as an accredited investor is set out in the subscription agreement delivered with the Offering Memorandum and generally includes individuals who have net assets of at least $5,000,000, or financial assets of at least $1,000,000, or personal income of at least $200,000, or combined spousal income of at least $300,000 in the previous two years with reasonable prospects of same in the current year, or an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a registered adviser or dealer.
James Cole is the portfolio manager of Portland Focused Plus Fund LP, Portland Focused Plus Fund, Portland North American Alternative Fund and Portland Canadian Balanced Fund. The four funds generally hold some of the same securities and may make trades in such securities simultaneously.
Information herein pertaining to the LP is solely for the purpose of providing information and is not to be construed as a public offering in any jurisdiction of Canada. The offering of Units of the LP is made pursuant to an Offering Memorandum and the information contained herein is a summary only and is qualified by the more detailed information in the Offering Memorandum. Portland Investment Counsel Inc. has not independently verified all the information and opinions given in this material. Accordingly, no representative or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this material.
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