TORONTO (HedgeWorld.com) – Cornerstone Trading Co. Inc. is the second investment program to be added to the Horizons Tactical Hedge Fund, a Canadian retail hedge fund.
With seed assets of C$150,000 (US$111,128), the hedge fund is allocating two-thirds of its portfolio to Cornerstone, which trades a basket of short-term debt instruments of mainly G-7 countries. Cornerstone’s strategy is called the International Value Program and is categorized as a systematic, value-based strategy.
The debt investing approach of Cornerstone will complement the existing long-term debt program managed by IIU Asset Strategies, which makes up the remaining one-third of the Horizon fund. The IIU Breakout Program is separate from the firm’s global macro strategy, which came under fire last year after the scandal-ridden departure of fund manager David Morrison. The IIU and Cornerstone systematic programs together will give clients low correlation to traditional stocks and bonds and become a tool for diversification, according to Horizon officials.
The hedge fund, which is sold as part of registered savings plans in Canada, will be filing an updated prospectus following regulatory approval. The investment minimum for the retail fund is set at C$5,000. Horizon’s other retail fund is the Mondiale Hedge Fund, which has C$140 million.
