Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > Alternative Investments > Hedge Funds

DeltaOne Capital Starts Energy Focused Fund

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

TORONTO (HedgeWorld.com)–Natural gas and oil is the focus of the latest Canadian hedge fund to employ a natural resources sector long/short strategy.

DeltaOne Capital Partners Corp. (Canada) launched the DeltaOne Energy Fund LP this month with C$3 million (US$1.9 million) in assets from Canadian high-net-worth investors and firm principals.

Focusing primarily on Canadian natural gas and oil company stocks in the long-biased fund, DeltaOne invests in companies with good production, exploration and management traits, said Scott R. Walters, co-founder and principal. The fund bias may change depending on trends in the sector, he added. Officials are seeking low correlations to the S&P/TSX Canadian Energy index.

Peter Linder is the firm’s energy specialist and has eight years experience as an oil and gas analyst. He previously was a natural gas consultant with a prominent gas-consulting firm, a vice president natural gas at the Canadian Energy Research Institute and spent nine years as a senior energy economist with Amoco Canada.

The vehicle is the only Canadian hedge fund offering focused on natural gas and oil, according to DeltaOne. A number of funds including those offered by Sprott Asset Management (Previous HedgeWorld Story) and Leeward Capital have been successful in investing in natural resources and commodity-linked companies.

This is the first energy hedge fund for DeltaOne, which opened its doors last December. The firm has two derivatives-based hedge funds for sophisticated individual and institutional investors. The energy fund is attracting primarily Canadian accredited and sophisticated investors. The minimum investment is C$150,000, except in Ontario, Alberta and British Columbia, where it has been set at C$25,000.

The management fee has been set at 2%, with a 20% incentive fee that is subject to a high watermark and a hurdle rate of 2% per quarter. The fund’s prime broker is BMO Nesbitt Burns; auditor, Sievert & Associates LLP; legal counsel is McMillan Binch and the administrator for the fund is General Ledger Systems Ltd.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.