Preservation Capital Ltd. seeks absolute return on capital through a classic long-short hedged style. The Fund invests approximately half of its assets in Canadian equities and stresses hands-on fundamental research. Preservation Capital is managed pari passu with The Preservation Trust, an existing fund for Canadian investors managed by the advisor. The Fund seeks to execute a focused investment strategy (different themes or sectors on a rotating basis) while maintaining diversification in the number of positions held (40-60 at any one time). Gross exposure ranges between 100% and 150% with a net exposure between -20% and +40%. Investments are made in publicly-traded Canadian and US equities. Exposure to the C$ is hedged weekly.
Security selection is the primary focus as the investment advisors attempt to buy high quality companies trading at significant discounts to their intrinsic values and short businesses with: weak fundamentals, poor or overly promotional management, and aggressive accounting. The Investment Advisors perform significant internal due diligence on all investment ideas.