TORONTO (HedgeWorld.com) – The Tremont Capital Opportunity Trust’s initial closing totaled C$40 million (US$27.6 million), as the units became listed on the Toronto Stock Exchange, according toTremont Investment Management.
Units of the fund are listed under the trading symbol “TT.UN” and a total of 4 million units were sold by Tremont. Tremont is the investment advisor to the underlying offshore investment entity, Tremont Hedge Fund Ltd.
The underlying portfolio invests in a variety of offshore hedge funds that are focused in a number of specific strategies such as long/short equity, equity market neutral, global macro, convertible bond arbitrage, fixed-income arbitrage, merger arbitrage, distressed securities and high-yield bonds. Most of the strategies invest in markets outside of Canada.
Tremont Partners, a subsidiary of Tremont Advisers*, manages the multi-strategy, multi-manager hedge fund portfolio. Tremont already handles more than US$8 billion in assets and also has registered hedge funds in the United States.
The trust is retail and the units are 100% eligible to be included in registered retirement savings plans. The trust is a first in Canada, investing in Canadian hedge funds and is offered only to Canadian investors.
Tremont Capital Opportunity is also unique in that it has a forward agreement that is not a capital guarantee but allows for the flow-through of hedge fund returns in a capital asset portfolio that is not subject to taxes until the 10-year term of the agreement has expired. The forward agreement was set up with TD Global Finance and expires prior to March 29, 2013.
Skylon Funds Management Inc. is the trust’s administrator. TD Securities and CIBC World Markets Inc. are co-lead agents for the trust along with a syndicate of investment dealers.
*Tremont Advisers Inc., Rye, N.Y., is a strategic partner of and a minority investor in HedgeWorld.
