Picton Mahoney Asset Management Launches New Special Situations Alternative Strategy Designed to Provide a Diversified Return Stream for Investors With Less Reliance on Stock or Bond Market Rallies

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The new liquid alternative credit fund offers exposure to event-driven strategies aiming to address the challenges in a low interest rate environment, to help investors seeking an uncorrelated return stream, and income with capital gains for their portfolios

TORONTO--()--Picton Mahoney Asset Management (“Picton Mahoney”) today announced the launch of the new Picton Mahoney Fortified Special Situations Alternative Fund. The fund will offer four classes of units: Class A, Class F, Class I and ETF units. The ETF units will commence trading on the Toronto Stock Exchange today (ticker symbol PFSS). Class A, F and I units were launched on July 13, 2021 and are offered to the public as conventional mutual fund securities.

“We are pleased to announce the launch of our new Picton Mahoney Fortified Special Situations Alternative Fund at a time when Canadians are faced with difficult decisions on how to generate income and capital gains from a long-only fixed income allocation in their portfolios,” said David Picton, President, CEO and Portfolio Manager at Picton Mahoney. “We have been actively managing our Authentic Hedge® special situations strategy for over six years and have been pleased with its past success in providing investors with income and capital gains with better downside risk mitigation. Our new alternative income fund offering provides an opportunity for a broader segment of investors to benefit from our proven experience and results.”

The Picton Mahoney Fortified Special Situations Alternative Fund incorporates Picton Mahoney's proprietary Fortified Investing™ approach—a proven rules-based technique focused on managing risk by mitigating downside exposure while seeking to build long-term growth, regardless of market conditions.

Fund Name

What the Fund offers

ETF

Class

Ticker

Class A

Fund

Code

Class F

Fund

Code

Picton Mahoney

Fortified Special

Situations

Alternative Fund

The investment objective of the Picton

Mahoney Fortified Special Situations

Alternative Fund is to maximize total return to

unitholders through income and capital

appreciation by investing primarily in event-

driven situations in global fixed income while

mitigating capital loss through shorting and

other hedging strategies. 

PFSS

PIC 3550

PIC 3551

“A traditional long-only bond investor in pursuit of income is facing significant headwinds given low interest rates which have made it increasingly challenging to provide capital gains and to mitigate downside risk,” said Philip Mesman, Partner, Head of Fixed Income at Picton Mahoney. “This new alternative fund is an event-driven credit solution that aims to provide a diversified return stream for investors seeking income and capital gains. There are multiple drivers of opportunities that can be deemed 'special situations' such as news of a merger and acquisition, a potential early bond refinancing, or a regulatory change. Our team of experienced credit analysts aim to create alpha in the portfolio through bottom-up analysis of a special situation by forensically examining the financials of a company and its bond covenants.

Our firm’s stated mission is to help investors achieve their financial goals with greater certainty so in this strategy we focus on hedging out currency, interest rate, credit and liquidity risks to better realize that outcome.”

To learn more about Picton Mahoney’s full suite of funds, visit www.pictonmahoney.com.

About Picton Mahoney

Picton Mahoney Asset Management specializes in differentiated investment solutions and rules-based volatility management. Picton Mahoney helps its clients fortify their portfolios based on experience honed over the years through different market cycles and investing environments.

Founded in 2004 and 100% employee owned, Picton Mahoney is a portfolio management boutique entrusted with over $9.4 billion (as at June 30, 2021) in assets under management. Pioneers of Authentic Hedge® investment principles and practices in Canada, the firm offers a full suite of investment solutions, including mutual and alternative funds, to institutional and retail investors across the country.

Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Alternative funds can only be purchased through an IIROC-registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.

Contacts

Phil Clark
Head of Marketing
Picton Mahoney Asset Management
Tel: (416) 955-4462
website: www.pictonmahoney.com
email: service@pictonmahoney.com

Release Summary

Picton Mahoney Asset Management today announced the launch of its new Picton Mahoney Fortified Special Situations Alternative Fund.

Contacts

Phil Clark
Head of Marketing
Picton Mahoney Asset Management
Tel: (416) 955-4462
website: www.pictonmahoney.com
email: service@pictonmahoney.com