On April 17, 2003, Tremont Capital Opportunity Trust, managed by Toronto-based Tremont Investment Management, Inc., completed an initial public offering in Canada of four million units of the trust raising gross proceeds of $40 million. The trust will provide unitholders with exposure to the total return on an actively managed diversified portfolio of hedge funds. The trust’s investment objectives are to achieve long-term capital appreciation and provide holders with exposure to an attractive risk-adjusted rate of return with low correlation to major equity and fixed-income markets and less volatility than traditional equity markets.
The trust invested the net proceeds of the offering in a portfolio of common shares of Canadian public companies, and entered into a forward purchase and sale agreement with TD Global Finance, a member of the TD Bank Financial Group. Pursuant to the agreement, TD Global Finance will pay to the trust on or about March 29, 2013, as the purchase price for the portfolio of common shares, an amount equal to 100 per cent of the redemption proceeds of a corresponding number of notes of Tremont Hedge Fund Limited.
Tremont Hedge Fund is a newly created investment entity incorporated as a Cayman Islands exempted company with limited liability. The investment portfolio of Tremont Hedge Fund will consist primarily of units or shares of offshore hedge funds, the managers of which employ a variety of hedging strategies. Tremont Hedge Fund Limited is managed by Tremont Partners, Inc., located in Rye, New York.
The trust and Tremont Hedge Fund was represented by McMillan Binch LLP, with a team that included Margaret McNee, Kimberly Poster, Walter Lehman and Tania Fecko (securities), Mark Lobsinger (tax) and Tim Baron (derivatives). Simon Firth of Maples and Calder acted for Tremont Hedge Fund in the Cayman Islands.Tremont Partners was represented by in-house counsel James McCormick. Andrew Aziz and Sonya Reiss (securities) and Andrew McGuffin (tax) of Osler, Hoskin & Harcourt LLP represented the syndicate of agents for the trust led by TD Securities Inc.
The trust invested the net proceeds of the offering in a portfolio of common shares of Canadian public companies, and entered into a forward purchase and sale agreement with TD Global Finance, a member of the TD Bank Financial Group. Pursuant to the agreement, TD Global Finance will pay to the trust on or about March 29, 2013, as the purchase price for the portfolio of common shares, an amount equal to 100 per cent of the redemption proceeds of a corresponding number of notes of Tremont Hedge Fund Limited.
Tremont Hedge Fund is a newly created investment entity incorporated as a Cayman Islands exempted company with limited liability. The investment portfolio of Tremont Hedge Fund will consist primarily of units or shares of offshore hedge funds, the managers of which employ a variety of hedging strategies. Tremont Hedge Fund Limited is managed by Tremont Partners, Inc., located in Rye, New York.
The trust and Tremont Hedge Fund was represented by McMillan Binch LLP, with a team that included Margaret McNee, Kimberly Poster, Walter Lehman and Tania Fecko (securities), Mark Lobsinger (tax) and Tim Baron (derivatives). Simon Firth of Maples and Calder acted for Tremont Hedge Fund in the Cayman Islands.Tremont Partners was represented by in-house counsel James McCormick. Andrew Aziz and Sonya Reiss (securities) and Andrew McGuffin (tax) of Osler, Hoskin & Harcourt LLP represented the syndicate of agents for the trust led by TD Securities Inc.
