TORONTO (HedgeWorld.com)–Tremont Investment Management Inc.* exercised an over-allotment option and sold an additional 500,000 units of its Tremont Capital Opportunity Trust.
The fund was launched earlier this year and is the first registered retail offering of its kind in Canada. The firm filed its final prospectuses with the securities commissions of all the Canadian provinces for the initial public offering in April Previous HedgeWorld Story.
Tremont’s Canadian trust is a diversified hedge fund of funds portfolio consisting primarily of units or shares of offshore hedge funds. The trust is a first in Canada, investing purely in Canadian securities and being offered only to Canadian investors. The ultimate return to the holders and the trust will be dependent on the return of the hedge fund portfolio by virtue of a forward agreement that will be set up with TD Global Finance, according to the prospectus.
That forward agreement is scheduled to settle prior to March 29, 2013. The forward agreement is not a capital guarantee but allows for the pure flow-through of hedge fund returns in a capital asset portfolio that is not subject to taxes until the 10-year term has expired.
Including the over-allotment option, Tremont raised a total of C$45 million (US$34 million) with its initial public offering, according to the firm. In an earlier announcement, the firm stated that the initial offering would be a minimum of C$25 million and a maximum of C$100 million of units of the trust and that the listed units would trade under the symbol of “TT.UN” on the Toronto Stock Exchange.
TD Securities Inc. and CIBC World Markets Inc., both based in Toronto, are co-lead agents for the Trust along with a syndicate of investment dealers. Skylon Funds Management Inc., Toronto, serves as the administrator of the trust.
*Tremont Investment Management Inc. is the subsidiary of Tremont Capital Management Inc., Rye, N.Y., which is a strategic partner of and a minority investor in HedgeWorld.