Toronto-based Sprott Asset Management LP Monday announced the launch of the Sprott Flatiron Yield Trust, Sprott’s newest specialty income product.
The fund will focus primarily on Canadian convertible arbitrage and is designed to generate positive monthly performance with a low correlation to both traditional equities and fixed-income investments.
The fund will be co-managed by Steve Duenkler and Parm Kalirai, co-founders of Toronto-based Flatiron Capital Management, which will act as sub-advisor to the Trust.
“Steve and Parm are one of the leading convertible arbitrage teams in the country. They have established an impressive long-term track record, with their strategy delivering positive monthly returns 85% of the time,” saysPeter Grosskopf, CEO of Sprott Inc. “We are pleased to be able to offer our clients an innovative new product that is ideally suited to today’s volatile market conditions.”
Duenkler and Kalirai have been successfully managing convertible arbitrage strategies for more than 12 years.
Sprott Asset Management LP is a wholly owned subsidiary of Sprott Inc. (TSX:SII).