Our Funds
Silvercreek offers two different investment alternatives to assist investors in meeting their investment goals. Each fund is unique and is intended to fulfill a role within any well-balanced portfolio.SMI Defensive LP is a defensive fund. Its main objectives are to generate attractive absolute returns and deliver superior performance in weak equity markets. These objectives are pursued primarily through investments in convertible securities (both hedged and outright), fixed income securities and equities (both long and short).
The hedged component of the portfolio often has a short-equity bias and has historically generated attractive returns during weak equity markets. Outright short equity positions provide exposure to sectors and companies not well represented in the convertible universe. Outright long investments often 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 fully hedged convertible positions and outright short equity positions. The fund may also pursue other hedging strategies, such as merger arbitrage.
SMI Opportunities is a more aggressive, higher volatility multi-strategy fund that is designed to provide investors with exposure to different underlying investment strategies. Although the fund does not have a defined mandate and is permitted to invest in a wide variety of markets, the underlying strategies tend to be a combination of long/short equity investing, corporate credit (including convertible bonds) and merger arbitrage. This fund has the flexibility to be net long or net short depending on where the portfolio management team believes they see opportunities.