We Apply A Private Equity Mindset To The Public Markets

Opportunities Fund LP

The Opportunities Fund applies a private equity
mindset to public company investing

We invest in a concentrated portfolio of carefully-selected businesses, run by management teams we know and trust, and usually with the intent to hold for several years. Occasionally, in the public markets, there are opportunities to buy fractional ownership in businesses at prices below what a rational seller would part with for the entire company. The Fund targets a 10-15% IRR over time and seeks to preserve capital by avoiding companies that trade at expensive valuations, have significant leverage and/or operate in industries subject to rapid change.

Investment Strategy

We maintain a disciplined approach by classifying
each investment according to our “Playbook”

Investors are often asked to describe their investment strategy. To our knowledge, it has never been answered with the explanation that the investor likes to overpay for shrinking, low-quality businesses run by subpar management teams (although this is quite often what happens). Instead of conventional classification, we describe our investment strategy using the analogy of a sport’s Playbook. A team with only one play can often be stopped, but a championship team will have perfected a few plays to ensure success regardless of game conditions and the opposition’s tactics. In our Opportunities Fund, we classify each investment according to four plays:

Risk Management

Risk is the chance
of permanently losing money

Flexible Fixed Income Fund LP

Our Goal

The goal of the partnership is to earn 5-7% annualized net returns, over a reasonable timeframe, while controlling volatility and minimizing the risk of permanent loss. We define a reasonable timeframe as five years, which translates into a cumulative return in the range of 30-40%. We think our goal of achieving stable, 5-7% net returns compares favorably to our two principal benchmarks – the iShares Canadian Investment Grade Corporate Bond Index ETF and the iShares U.S. High Yield Bond Index (C$-hedged) ETF. These two benchmarks reflect well-known and accessible fixed income alternatives which can be regarded as our Limited Partners’ fixed income opportunity cost.

Philosophy and Fund Management

Thoughts On Risk

A critical part of our goal is to minimize the risk of permanent loss (what we consider to be true investment risk) and control volatility. We would posit that “permanent loss” also be considered “permanent loss of purchasing power,” a concept that takes into account the impact of inflation on capital. At current rates of inflation, one dollar today needs to grow by about 2% on an after-tax basis to avoid loss of purchasing power. From this perspective, it can be understood that long term allocations to cash effectively ensures permanent loss. Even at today’s low rates of inflation, a 5-year holding period would result in an approximate 10% impairment on cash relative to the future cost of living. Our view is that higher yielding fixed income investments are one of the few conservative means of minimizing loss of purchasing power while maintaining a liquid investment profile.

Dark Horse Fund LP


The Dark Horse LP is an investment limited partnership intended for high net worth, institutional and accredited investors. “Dark Horse” is an old handicapping term referring to a horse that is overlooked, unappreciated and mistakenly cast off as another long shot. The true Dark Horse sports long odds while possessing many of the skills and attributes of the favorite. It is the best value in the race. It is the type of wager that those who “know their stuff” and do their research seek. The Dark Horse is the underdog that should not be such and is exactly the sort of investment that we seek for our partners.

Investment Strategy

Risk Management

We aim to avoid liquidity, concentration and market risk by adhering to strict risk controls and discovering esoteric company specific opportunities to exploit with long & short positions.

Partners Fund LP

The Partners Fund gives our Limited Partners access to our full investment team and their expertise, across our strategies.

The Partners Fund dynamically invests in securities of equities and fixed income investment funds managed by Ewing Morris & Co. Investment Partners Ltd., namely the Ewing Morris Opportunities Fund LP, the Ewing Morris Flexible Fixed Income Fund LP, the Ewing Morris Canadian Small Cap Fund LP and the Broadview Dark Horse LP. The underlying holdings within the portfolio will favour growth assets, targeting an equity-leaning balanced portfolio, with the remaining assets in fixed income securities.

Investment Strategy

We describe our investment strategy using the analogy of a sport’s playbook. A team with only one play can often be stopped but a championship team will have perfected multiple plays so that they can score and defend regardless of the opposition’s strategy. In our Partners Fund, we classify each investment according to three plays:

Risk Management

We view risk as the chance of permanent capital loss and believe that volatility represents a source of opportunity. We invest when security prices are trading at a significant discount to our estimate of true value. This is designed to provide a margin of safety to protect capital against unexpected events such as economic crises, natural disasters, political events and new technologies. Our goal is to protect and grow our clients’ purchasing power over time.