Red Sky Capital Management Ltd. was established in March 2010 and is a Registered Fund Manager under the supervision of the Ontario Securities Commission. Our offices are located in Brookfield Place, in the heart of the financial district of Toronto, Canada. Red Sky is very pleased to have CI Financial (CIX-TSX) as both an investor in our company and one of the “Seed Investors” in our first Fund – The Red Sky Partners Fund. The relationship with CI Financial is unique in the Canadian hedge fund community and has helped solidify the standard for professionalism and integrity with which we operate.
Red Sky currently manages approximately $217 million dollars. Our first fund, the Red Sky Partners Fund, which was launched in September 2010. The Company and the Fund may be new to the Canadian market, but the team is not. Our founder, Timothy Lazaris and his three partners, Keith Lam, DariuszNieciecki, and Brian Huen have a combined 50 years experience in the capital markets. The portfolio team has been working together for the last three years and formed the fundamental equity team of a large Canadian multi-strategy hedge fund. While together, this team has experienced and navigated successfully in some of the most volatile equity and credit market conditions of the last 50 years. It is those types of conditions which were the genesis of our company name Red Sky.
It is our view that a portfolio team should be prepared to navigate in both good and bad market conditions and generate positive returns under both, by focusing on a fundamental investing process that analyses both long and short positions and has the flexibility to accept and modify the investment style in markets where performance is not fundamentally driven.
Since we are also significant investors in our own Fund (currently approximately 25%), we believe strongly in capital preservation and generating consistent annual investment returns and long-term capital appreciation in the value of the Fund units on a very tax effective basis. Our first Fund is an equity fund focused on North American equity and equity derivatives and emphasizes both long and short positions at all times. Each investment is processed through a rigorous approach which is fundamental in its bias but also utilizes continuous risk monitoring and a strict policy on overall portfolio liquidity.
Source: Red Sky Capital
Given capital preservation is one of Red Sky’s fundamental investment principles, risk management is an integral component of our overall portfolio strategy. In addition to employing a balanced long/short strategy, depending on where we believe we are in the market cycle, the Fund also employs active hedging strategies in order to minimize risk and volatility.
The portfolio management team constantly reviews individual positions as well as the portfolio as a whole to identify and address any excess risk.
– Intraday real time profit/loss and exposure
– Continuous risk review and monitoring via risk systems
– Algorithmics and SGGG Portfolio Management System
– Daily liquidity tests
– Maximum position sizes (as a % of the fund)
– Limits on industry concentration
– Stop losses
Source: Red Sky Capital
Timothy Lazaris, Founder, CIO
Nick D'Alessandro, Portfolio Associate
15 York Street, 2nd Floor