Veritas Absolute Return Fund

A long/short portfolio designed to smooth long-term returns by limiting downside risks, index correlation and volatility.

Portfolio Objective

The investment objective of the Fund is to achieve attractive risk adjusted rates of return that deliver long-term capital appreciation to Unitholders. In order to achieve its investment objective, the Fund will invest primarily in the securities of publicly traded Canadian companies that the Manager identifies as mispriced. Long and short positions will be determined based (in part) on recommendations provided by Veritas Investment Research Corporation (an affiliate of the Manager). The Manager may also invest in securities that are not formally covered by Veritas Investment Research Corporation. The Fund will manage its long and short positions to reduce the impact of market volatility on the Fund’s investment portfolio.

Why Invest With Us

The Fund’s long-short capability targets lower volatility than equities, less correlation to traditional asset classes, and greater downside protection.

The Fund aims to preserve capital and achieve consistent positive returns.

The Fund pursues an active investment discipline using forensic-accounting based research.

Fundamental analysis is paired with systematic stock selection to generate alpha.

Suitable for investors with a medium risk profile.

Daily liquidity. No performance fees.

The Fund Details

* as at March 28, 2024
  • Fund Code

    VAM 301

  • Inception Date

    Oct 1, 2019

  • Minimum Investment

    $5,000 initial / $500 subsequent

  • Type

    Fee based

  • Management Fee


  • Firm AUM

    $101.4 million

  • Total Assets (All series)

    $47.7 million

  • Related Parties AUM

    $7.7 million

  • Category

    Alternative Mutual Fund

  • Total Number of Holdings


  • Total Long Positions


  • Total Short Positions


  • Distribution Frequency

    Annually if any


Growth of $10,000 (since inception date)

Monthly Commentary

Series F of the Veritas Absolute Return Fund generated a 3.5% return in March versus a 4.1% return for the S&P/TSX Composite, bringing our year-to-date return to 5.3% versus 6.6% for the S&P/TSX.  Our three-year annualized return through March 31, 2024 is 4.2%, which was achieved with 40% lower volatility than the S&P/TSX and a low overall correlation of 0.37 to smooth returns.

The Fund’s position in Agnico Eagle Mines Ltd. (TSX, NYSE: AEM) was the largest contributor to fund performance in March as gold prices crossed US$2,200 per ounce, rising more than 8% on the month.  With operations in in Canada, Australia, Finland and Mexico, we continue to like Agnico’s lower risk mining footprint which provides stable production and greater cost certainty.




The second largest contributor to fund performance during the month was Bombardier Inc. (TSX: BBDb).  In March, the company successfully lowered the cost on its debt with a new US$750 million offering of senior notes priced at a 7.25% coupon.  Also notable, BBD’s controlling shareholder families announced that the next generation of Bombardiers, Bissonnettes, Beaudoins and Fontaines are taking over as representatives of the family block of shares.

Our goal is to buy the best companies in sectors where we identify positive investment catalysts and take strategic short positions in poorly positioned companies in challenged industries. We evaluate each company’s ability to navigate good and bad economic environments, looking at the sustainability of cash flows; balance sheet strength; financial reporting transparency and governance.



To view data for a specific year, we have made the legend clickable


Gross Exposure (%)125
Net Exposure (%)67
Volatility Risk ProfileMedium


YTD1 Month1 Year3 YearInception
VAR-F (%)5.273.477.544.196.00
S&P/TSX (%)

Top holdings

Top Ten HoldingsTickerLong/Short
Air Canada AC.TOLONG
Wheaton Precious Metals Corp. WPM.TOLONG
Canadian Natural Resources Ltd CNQ.TOLONG
Maple Leaf Foods Inc. MFI.TOLONG
RioCan Real Estate Investment Trust REI_u.TOLONG
Agnico Eagle Mines Ltd AEM.TOLONG
Granite Real Estate Investment Trust GRT_u.TOLONG
Canadian Pacific Kansas City Ltd CP.TOLONG
Shopify Inc. SHOP.KLONG
Cenovus Energy Inc. CVE.TOLONG

Risk measures

1 Year3 YearInception
Fund Sharpe Ratio
Index Sharpe Ratio 0.870.610.49
Fund Volatility (%)
Index Volatility (%) 12.8013.3216.28
Best Month (%) 3.476.257.08
Worst month (%) -2.28-4.93-5.33



The information contained herein is for general information purposes and does not constitute a solicitation for the purchase or sale of securities. The full details of the Fund, its investment strategies and the risks are detailed in the Fund’s current simplified prospectus and fund facts document, copies of which may be obtained from Sedar, your dealer, Veritas Asset Management Inc. (“VAM”) or at Please read the prospectus before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. All performance data assume reinvestment of all distributions or dividends and do not take into account other charges or income taxes payable by any unitholder that would have reduced returns. The performance of the Fund is not guaranteed, unit values change frequently and past performance may not be repeated. Performance is presented in Canadian dollars, unless otherwise stated, and is net of fees of Series F units of the Fund. VAM is an affiliate of Veritas Investment Research Corporation (“VIR”) by virtue of being under common control that may also from time to time have certain common directors, officers and/or employees. VIR produces and issues independent equity research regarding public issuers to investors and other capital markets participants. VAM is a client of VIR and receives research reports from VIR at the same time as VIR’s other clients. VIR and VAM have implemented policies and procedures to minimize the potential for and to address conflicts of interest, which are available upon request.

The S&P/TSX Composite Total Return Index is a Canadian dollar denominated, capitalization-weighted index that includes the largest float-adjusted stocks trading on the Toronto Stock Exchange, subject to inclusion criteria. The index provides the broadest representation of market-weighted returns for large capitalization Canadian-listed stocks, including reinvested dividends, making it an appropriate index for diversified portfolios that invest primarily in Canadian stocks, such as the Veritas Absolute Return Fund. Contact Veritas Asset Management Inc. for more information regarding comparative indices.

Cautionary Note Regarding Forward-Looking Statements

Some information may contain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Veritas Asset Management Inc., the Portfolio Manager, or any affiliates thereof (the ‘Companies’) believe, expect, or anticipate will or may occur in the future (including, without limitation, statements regarding any targeted returns, projections, forecasts, statements, and future plans and objectives of the Companies) are forward-looking statements. These forward-looking statements reflect the current expectations, assumptions or beliefs of the Companies based on information currently available to the Companies. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Companies to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Companies.

For a list of factors that could cause actual results or events to differ materially from current expectations, please refer to our Prospectus and the section ‘Risk Factors’. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Companies disclaim any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise. Although the Companies believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.