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Toronto-based Picton Mahoney Asset Management has launched a new alternative investment fund that aims to shield investors from downside risk in equities markets.

The Picton Mahoney Fortified Long Short Alternative Fund invests predominantly in Canadian equities with limited exposure to U.S. and international markets. It aims to dampen volatility and mitigate downside risk by taking short positions with some equities.

The fund, which has a low-to-medium risk rating, is available in mutual fund and ETF versions, the latter of which is trading on the Toronto Stock Exchange.

The management fee is 1.95% for the Class A fund, and 0.95% for the Class F and ETF versions. The performance fee is 20% of performance above the fund’s hurdle rate.

“In the current unpredictable environment, investors are understandably concerned about equity market volatility,” David Picton, president and CEO of Picton Mahoney, said in a release.

“Our new fund aims to offer a more comfortable investment experience, helping Canadians stay invested and on track in meeting their financial goals with greater certainty.”