Focus on Mutual Funds Special Report

Vancouver-based Vertex One Asset Management Inc. and Toronto-based Picton Mahoney Asset Management have reached a deal that will see Picton Mahoney acquire five hedge and alternative investment funds from Vertex One.

Pending regulator and unitholder approval, Picton Mahoney will take over as investment and portfolio manager of the five funds — the Vertex Liquid Alternative Fund, Vertex Liquid Alternative Fund Plus, Vertex Bond Alpha Fund, Vertex Arbitrage Fund and Vertex Arbitrage Fund Plus — that have approximately $380 million in assets.

Assuming the deal is approved, the funds will be rebranded under the Picton Mahoney name.

The funds’ current portfolio managers, Craig Chilton and Tom Savage, are expected to join Picton Mahoney and continue managing the funds after the proposed deal closes.

Vertex One will hold special meetings of the funds’ unitholders on Nov. 28 to approve the proposed deal. Details of the proposed transaction will be set out in a management information circular ahead of the meetings.