SMI Defensive

Investment Objective

SMI Defensive LP is a short equity biased fund with two main investment objectives:

1. To generate attractive absolute returns; and
2. To deliver superior performance in weak equity markets.

These investment objectives are pursued primarily through investments in convertible securities (both hedged and outright).

The portfolio has three key components: (i) hedged convertible securities; (ii) outright short equity positions and (iii) outright long positions (including convertible bonds). The hedged component of the portfolio has a short bias and has historically generated particularly attractive returns during weak equity markets. The outright short positions provide exposure to sectors and companies not well represented in the convertible bond universe. The outright investments typically generate yield based returns with potential upside through the call option embedded in convertible securities. This component of the portfolio has a long bias and acts as a macro hedge against the 'short biased' characteristic of the fully hedged convertible positions and outright short equity positions.

The SMI Defensive strategy has been set up as a master-feeder structure. Investors gain exposure to the strategy by investing in the fund domiciled in the appropriate jurisdiction.

SMI Defensive LP – Canadian investors

Disclaimer

This website is intended for informational purposes and should not be construed as a solicitation for investment in any of Silvercreek’s Funds. In Canada, Silvercreek’s Funds are open to Accredited Investors only (as interpreted by Provincial Authorities, generally meaning those with either personal income of $200,000, household income of $300,000, financial assets of $1,000,000 or total assets of $5,000,000). For investors outside of Canada, certain other investor qualifications may apply and prospective investors should inform themselves as to the legal requirements for the purchase of units or shares.

It is important to note that past performance should not be taken as an indicator of future performance – returns are historical and are not indicative of future results. All stated Silvercreek returns are net of fees and expenses. The rate of return shown is only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the Funds or returns on investment in the Funds. Silvercreek’s Funds should be purchased only by investors with a medium-to-high risk tolerance who are seeking long-term results. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any investor that would have reduced returns.

Commissions, trailing commissions, management fees and/or expenses all may be associated with any investment. Please read the offering memorandum and/or limited partnership agreement of the Funds before investing. Silvercreek’s Funds are not guaranteed, their values change frequently and past performance may not be repeated