Managers

The selection process identifies managers who are interested in entering the institutional market, who have a disciplined approach to investing, and who need capital to build an investment track record, mentoring, or an operational boost.

Emerging managers

Traditional program – Fixed income strategy
Fund name
LAM Canadian Bond Fund L.P.
Program
Traditional
Strategy
Fixed income
Geographic focus
Canada
Objective

The Fund’s objective is to reproduce and generate greater returns than the FTSE/TMX Universe Bond index.

Approach

To achieve its investment objective, the Fund will use a fundamental approach to select securities. It will assess issuers’ credit worthiness through a combination of fundamental company and industry analysis. The Fund will seek to invest in undervalued securities by choosing among either companies with improving prospects and credit metrics, or where there are assets that protect the value of the credit security. It will also invest in securities where near term corporate events could unlock value for the bond holders. The Fund will have a bias towards smaller firms, thus increasing yields and returns.

The Fund will focus on the Canadian bond market universe but may invest in securities of United States issuers denominated in Canadian dollars. The Fund will invest in credit securities such as corporate bonds, asset backed securities, callable corporate bonds, Non-Viability Contingent Capital, convertible corporate bonds, and Exchange Traded Funds. The Fund will have a significant (15%) allocation to bonds rated below BBB- or unrated. The Fund will also invest in government bonds.

Fund name
Lorne Steinberg High Yield Bond Fund L.P.
Program
Traditional
Strategy
Fixed Income
Geographic focus
North America
Objective

The fund seeks to maximize the total return by investing primarily in high yielding corporate bonds and other securities.

Approach

The approach to high yield market is consistent with a value-based investment philosophy. The Fund will mostly invest in high yielding corporate bonds and have exposure to North American markets. The Trading Advisor shall track the ICE BofA Merrill Lynch US High Yield Index.

Fund name
Nymbus Quant Canadian Fixed Income Fund L.P.
Program
Traditional
Strategy
Fixed income
Geographic focus
Canada
Objective

The Fund’s objective is to reproduce and generate greater returns than the FTSE/TMX Universe index.

Approach

To achieve its investment objective, the Fund will use a quantitative approach to select mutual funds and ETFs with desirable characteristics for the portfolio. When favorable, these funds or ETFs will be replicated with individual securities, to reduce fees and increase returns.

The Fund will invest only in investment products traded in Canada or the United States, though in some limited cases, the underlying of these mutual funds or ETFs will be outside Canada and the United States. The Fund can in this way have limited exposure to emerging markets.

The Fund will focus on the Canadian bond market universe, but may invest in other developed countries, such as United States and countries in the euro-zone. The Fund will invest in credit securities, such as corporate bonds, asset backed securities, callable bonds, commercial mortgage back securities, commercial paper and residential mortgage back securities. The Fund will also invest in government bonds and bond futures.

Further, the Fund may use currency futures, spots and forwards to hedge the currency exposure of the Fund.

The selection of mutual funds and ETFs whose strategies shall be replicated in the Fund will be based primarily on a bottom up approach. The Trading Advisor will first gain insight to potential investment by research and observation. Then the Trading Advisor will use a matrix approach to replicate the specific characteristics – in terms of the credit quality, duration and sector exposure – of the selected mutual fund or ETF within its own authorized instruments.

Traditional program – Canadian equity strategy
Fund name
Allard, Allard & Associés – Value Strategies Fund L.P. Canada
Program
Traditional
Strategy
Value equity
Geographic focus
Canada
Objective

The Fund’s objective is to generate superior returns while maintaining a lower volatility than equity indices, specifically the S&P/TSX for the Canadian mandate and the MSCI World for the global mandate.

Approach

The Fund uses a value style and constructs concentrated portfolios of Canadian or global equities without copying the reference index. Rigorous financial analysis is applied to each company before an investment. This analysis is based on the quality of the balance sheet, earnings’ growth, high cash flow yields and an attractive valuation. Based on this analysis, the portfolio management team selects the best stocks according to their return potential. Portfolio construction aims to diversify the portfolio across multiple sectors of economic activity.

Fund name
LionGuard Canadian Small Cap Equities Fund L.P.
Program
Traditional
Strategy
Small capitalization equity
Geographic focus
Canada
Objective

The Fund investment objective fund is to achieve long-term growth of capital through disciplined investing in Canadian small capitalization equities.

Approach

The Fund shall be managed using fundamental bottom-up stock selection approach with strong emphasis on high quality companies with proven business models and strong management teams. In order to achieve the Fund’s objective, the manager will employ a long only equity strategy with a focus on small capitalization companies listed on Canadian stock exchanges.

Traditional program – Global equity strategy
Fund name
Allard, Allard & Associés – Value Strategies Fund L.P. Global
Program
Traditional
Strategy
Value equity
Geographic focus
Global
Objective

The Fund’s objective is to generate superior returns while maintaining a lower volatility than equity indices, specifically the S&P/TSX for the Canadian mandate and the MSCI World for the global mandate.

Approach

The Fund uses a value style and constructs concentrated portfolios of Canadian or global equities without copying the reference index. Rigorous financial analysis is applied to each company before an investment. This analysis is based on the quality of the balance sheet, earnings’ growth, high cash flow yields and an attractive valuation. Based on this analysis, the portfolio management team selects the best stocks according to their return potential. Portfolio construction aims to diversify the portfolio across multiple sectors of economic activity.

Fund name
Borealis Global ESG MidCap Equity Fund L.P.
Program
Traditional
Strategy
Global MidCap equity
Geographic focus
Global
Objective

The objective of the fund is to deliver a financial performance superior to its benchmark as well as an improvement over time in its extra-financial performance.

Approach

Borealis strategy uses a fundamental approach, including ESG factors and non-financial factors, to construct a portfolio of global mid-cap equities. The portfolio is concentrated and could exhibit higher short-term volatility.

Fund name
Clear Skies iWorld Equity Fund L.P.
Program
Traditional
Strategy
Global equity
Geographic focus
Global
Objective

The objective of the fund is to deploy its capital in global ESG and impact leaders, i.e. companies that contribute positively to the planet and society. The fund also aims to produce competitive and stable returns over a long-term horizon.

Approach

The strategy aims to select companies with the best financial potential among those with business models which create positive impact towards achieving the United Nations Sustainable Development Goals (SDGs). On the fundamental side, the firm looks for companies that have good growth and competitive advantages, a quality management team, a solid balance sheet and a reasonable valuation.

Fund name
Evovest Global Equity Fund II L.P.
Program
Traditional
Strategy
Global equity
Geographic focus
Global
Objective

The Fund’s objective aims to create superior returns when compared to a passive portfolio of the world’s largest market capitalizations over a complete market cycle.

Approach

The underlying strategy relies on the automation and enhancement of the fundamental investment process of a portfolio manager using artificial intelligence (AI).

Fund name
Mount Murray Investment Emerging Markets Equity Fund L.P.
Program
Traditional
Strategy
Global equity
Geographic focus
Emerging Markets
Objective

The fund’s aim is to achieve long-term capital appreciation through diversified investments in emerging markets.

Approach

The strategy combines a bottom-up fundamental research analysis of stocks with high growth potential with a structured macroeconomic analysis. The Funds’s benchmark is the MSCI Emerging Markets Index.

Fund name
Tonus U.S. Small Cap Equities Fund L.P.
Program
Traditional
Strategy
U.S. Small Cap Equities
Geographic focus
North America
Objective

The investment objective of the Fund Lis to earn superior returns compared to the reference index, the Russell 2000, over a 3 year horizon, through a concentrated portfolio of equities with a market capitalization below US$5 billion.

Approach

Tonus employs an active management approach based on the search for value in North American small cap securities. Relying on independence and in-depth knowledge of its investments, Tonus conducts its own analyses and financial modelling to identify equities trading below their intrinsic value.

Alternative program – Market neutral and Long/Short equity strategies
Fund name
Authentic Event Driven Fund L.P.
Program
Alternative
Strategy
Event Driven
Geographic focus
Mainly North America
Objective

The strategy of the fund is event driven, focused on risk arbitrage and special situation, with a global macro overlay.

Approach

The event driven investment process is designed to monetize merger & acquistion arbitrage, to capitalize on the mispricing of securities in catalyst-driven situations and to produce high convexity payouts during systemic events and turbulent environment. Position sizing is based on conviction and diversification potential of special situation positions. The global macro overlay investment process leverage internal research to structure investment that reduce the short volatility profile of the strategy and generate positive expected returns.

The strategy targets 10% annualized return with 10% annualized volatility.

Fund name
Galliant Market Neutral Fund L.P.
Program
Alternative
Strategy
Equity market neutral
Geographic focus
North America
Objective

The Partnership’s investment objective is to generate a risk-adjusted return by primarily investing in North American listed securities, while reducing risk by limiting net market exposure.

Approach

The Partnership will achieve its investment objective by employing an equity market neutral strategy. The investment approach of the Partnership may be based on an event driven and fundamental approach using a bottom up analysis and strong financial analytics to seek potential investments, which may experience price movements in the near term. The Partnership may invest in growth securities for its long positions, while short positions will be used to reduce market risk.

Fund name
LionGuard Conservative Fund L.P.
Program
Alternative
Strategy
Market Neutral
Geographic focus
North American
Objective

The fund’s investment objective is to generate capital growth by investing both long and short in equities of small and medium capitalization North American companies.

Approach

The Fund will seek to achieve the objective using a low net market exposure and low correlation to financial markets. The Manager will select long positions by a rigorous fundamental analysis, focusing on high return on capital, solid cash flows, a stable business model and competent management team. The short positions will be selected among equities which have adverse business dynamics, such as a decreasing return on capital, negative cash flows, high leverage and valuation and/or a combination of these factors.

Fund name
Nordis ESG Absolute Return Fund L.P.
Program
Alternative
Strategy
ESG Global Equity L/S
Geographic focus
Global
Objective

The strategy will be an equity long short strategy which invests in global ESG megatrends. While primarily concentrated in equity instruments, this strategy could also opportunistically allocate investments into fixed income and commodity instruments. The strategy will target positive beta to global equities over a full market cycle, a volatility of 12% and aims for a return of 700 basis points above Treasury Bills.

Approach

The “top down” investment process identifies investment opportunities in promising ESG themes. The strategy will also take short positions in securities that are likely to lose ground as investors increasingly adopt sustainable investment practices and values. By investing in this Fund, asset owners who believe that ESG issues will be increasingly material over the coming years will be able to optimize the risk/return profile of their overall portfolio.

Graduates of the PGEQ

The PGEQ is proud of the success of Razorbill and Global Alpha, which are the “alumni” firms of the Program.

To submit your application

Ongoing Manager Search Program

The QEMP’s mandate is to promote the growth of financial entrepreneurship in Quebec by offering institutional investors two investment classes, one traditionel and the other alternative, managed by emerging Quebec managers. In order to better achieve its mission, the PGEQ has opened its ongoing manager search program, in order to better comprehend Quebec managers, to offer support and mentoring to managers who wish to do so and to identify the next generation of managers.

Interested firms must complete the eligibility questionnaire below in order to submit their application.

For more information about the detailed process, please contact us.

The questionnaire should be sent by email to the following addresses:

Carolyn Cartier-Hawrish
Director, PGEQ
carolyn.cartier-hawrish@pgeq.ca

Request for proposal

In order to plan the deployment of additional funds and an orderly graduation process, the QEMP is looking for Québec-based independent emerging managers offering
traditional strategies: fixed income, Canadian equity, US equity, global equity, sustainable or ESG strategies, etc.) and alternative strategies (hedge funds, sustainable or ESG strategies and real asset funds, etc.).

Proposal that include diversity, equity and inclusion factors are encouraged.