Monday, October 30, 2017
Forge First Asset Management Inc. to Merge with Sui Generis
Forge First Asset Management Inc. (“Forge First”) is pleased to announce that we are currently finalizing a merger with Sui Generis (“SG”), a Toronto-based alternative investment fund.
Forge First was founded in 2012 with a mission to help investors find a balance between asset protection and capital enhancement. Our belief has been that investors are keenly focused on preserving their capital while earning a competitive rate of return. SG shares this same philosophy. Founded in 2014 by Daniel Lloyd, Trumbull Fisher and the late Jim Doak, SG is an absolute return investment fund that combines focused, research-driven stock selection with a disciplined and robust risk management program.
Both Forge First and SG investors are poised to benefit from the heightened capabilities that will result from combining the two firms. The greatest impact will be felt via the enhancement of the research team which will serve to reinforce both firms’ already strong focus on returns through intensive fundamental research. The Forge First Long Short fund and the Forge First Multi Strategy fund will continue to be managed under the current investment mandate and philosophy.
The SG investment team has a strong reputation for using short selling to not only manage risk but also to generate alpha, a strong attribute to have in a long/short fund. Attesting to this, SG spent the better part of 2015 and 2016 managing their fund with “net short” exposure. From March 1, 2015 to September 30, 2017, their fund has delivered a negative downside capture ratio of -46%, meaning that on average when the TSX has been down 10% their fund would have been up 4.6%. In the 12 months the TSX was down since inception, this fund would have generated a cumulative return of 9.52% and the TSX would have lost 20.51%. The fund has also delivered negative correlation (-0.26) and negative beta (-0.22) risk metrics vs the TSX since inception while still delivering consistently positive returns.
We are very excited about the next chapter for the Forge First funds and our increased research capabilities. We welcome any questions that you may have.
Thank you for your continued support.
Disclaimer: Forge First Asset Management Inc. (“Forge First”) is registered as an Exempt Market Dealer, Portfolio Manager, and Investment Fund Manager in Ontario with the Ontario Securities Commission. Forge First is also registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, and as an Exempt Market Dealer and Investment Fund Manager in Quebec and Newfoundland. Forge First provides investment advisory services for its four related and connected issuer funds: Forge First Long Short LP, Forge First Multi Strategy LP, Forge First Long Short Trust, and Forge First Multi Strategy Trust. The material presented herein is for informational purposes only and should not be construed as providing investment advice nor constitute an offering memorandum. Readers of this information are expressly cautioned to seek the advice of a registered investment advisor or other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed in the material. Individuals who qualify to invest in prospectus exempt products should be aware that all prospectus exempt products involve significant risks and such individuals could lose their entire investment. Forge First does not arrange nor recommend that individuals borrow money to invest in any qualifying funds. All information has been obtained from sources believed to be reliable; however, the information’s accuracy cannot be guaranteed. The 2017 results are unaudited, net of all fees and expenses, and are based on our best estimates at the time of this report. All returns are in local currencies. Returns expressed in this release are “time-weighted” and are not the same as mandated “money-weighted” returns used in the production of client statements effective December 31, 2015. The return figures for the TSX are based on the “Total Return” figures of the associated index. Correlation and Beta are calculated from monthly net returns for the Class A Lead Series of the Sui Generis Canada Partners LP since March 1, 2015. The Forge First funds are currently open to Canadian investors who meet certain eligibility requirements. Please contact Forge First to request the offering documents and to speak with a registered dealing representative. Please review the most recent offering memorandum for a detailed description of Forge First’s funds, the fund’s strategies, objectives and risk factors. Past performance is not indicative of future results.