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
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Fund Code
VAM 301
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Inception Date
Oct 1, 2019
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Minimum Investment
$5,000 initial / $500 subsequent
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Type
Fee based
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Management Fee
1.5%
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Firm AUM
$174.4M
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Total Assets (All series)
$114.1M
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Related Parties AUM
$13.2M
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Category
Alternative Mutual Fund
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Total Number of Holdings
94
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Total Long Positions
46
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Total Short Positions
48
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Distribution Frequency
Annually if any
Performance
Growth of $10,000 (since inception date)
Monthly Commentary
Series F of the Veritas Absolute Return Fund increased 3.0% in April. From our October 1, 2019 inception date through May 31, 2026, our fund has returned 9.7% on an annualized basis. The performance was achieved with 41% lower volatility than the S&P/TSX composite and a 0.39 correlation to the index.
Our top performer in the fund in May was Hudbay Minerals Inc. (NYSE, TSX: HBM), which reported strong first-quarter results to begin the month, with revenues up 27% year-over-year and record-high Adjusted EBITDA of $421.9 million. Global copper demand continues to pressure supply, supporting strong copper prices over the near-term. Hudbay is set to benefit as it expects its copper production to average 147,000 tonnes per year over the 2026 to 2028 period, an increase of 24% over 2025 levels, supported by optimization at Copper Mountain in B.C. and throughput improvements at its Constancia mine in Peru.
The next-largest contributor to fund performance in May was Bombardier Inc. (TSX: BBD.b), which secured major Canadian and Australian defence contracts during the month for using the company’s Global 6500 aircraft for aerial surveillance. Growing balance sheet strength also allowed Bombardier to replace US$500 million in 7.50% coupon debt with new Senior 2035 Notes at 5.875%. Reduced debt costs and a growing order book support this year’s free cash flow guidance of more than US$1 billion in 2026.
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, focusing on the sustainability of cash flows, balance sheet strength, financial reporting transparency and governance.
Source: Bloomberg, Veritas Asset Management Inc. estimates, as at May 31, 2026.
Top holdings
| Top Ten Holdings | Ticker | Long/Short |
|---|---|---|
| Royal Bank of Canada | RY.TO | Long |
| Canadian Imperial Bank of Commerce | CM.TO | Long |
| The Toronto-Dominion Bank | TD.TO | Long |
| Boston Scientific Corp. | BSX.N | Long |
| Brookfield Infrastructure Partners LP | BIP_U.TO | Long |
| Great-West Lifeco Inc. | GWO.TO | Long |
| Cenovus Energy Inc. | CVE.TO | Long |
| Sun Life Financial Inc. | SLF.TO | Long |
| Canadian National Railway Co. | CNR.TO | Long |
| Tourmaline Oil Corp. | TOU.TO | Long |
Risk measures
| | 1 Year | 3 Year | 5 year | Inception |
|---|---|---|---|---|
| Fund Sharpe Ratio
| 2.47 | 1.36 | 0.78 | 0.82 |
| Index Sharpe Ratio | 2.32 | 1.48 | 1.00 | 0.78 |
| Beta
| 0.82 | 0.53 | 0.44 | 0.23 |
| Correlation
| 0.95 | 0.80 | 0.68 | 0.39 |
| Fund Volatility (%)
| 8.99 | 7.17 | 8.03 | 8.71 |
| Index Volatility (%) | 10.38 | 10.83 | 12.49 | 14.72 |
| Best Month (%) | 7.13 | 7.13 | 7.13 | 7.13 |
| Worst month (%) | -3.82 | -3.82 | -4.93 | -5.33 |
Resources
Year-End Distributions
Regulatory Documents
Financial Statements
Management Reports of Fund Performance
Veritas Absolute Return Fund Proxy Voting Information
Disclosures
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 Veritasfunds.com. 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.