Toronto-based hedge fund Salida Capital is ardently denying a rumour starting to spread through financial circles that the firm is blowing up because of its leverage to commodities.
“We had a difficult September, but Salida’s been around for 10 years,” says chief executive officer Courtenay Wolfe. “We’re not going anywhere. The rumours about us blowing up are unfounded.”
However, Ms. Wolfe wouldn’t deny that the firm is having trouble dealing with its leverage, something hedge funds use to get more bang for their bucks.
“You just have to take a look at the markets to know it’s a difficult market to navigate through,” she said, adding that “we’re dealing with difficult markets probably the way that every other hedge fund manager is.”
Ms. Wolfe also said redemptions have not suddenly increased.
The list of stocks that Salida holds on Capital IQ isn’t very up to date, but it includes names such as Brilliant Mining Corp. and Concordia Resource Corp., both of which are small-cap mining names listed on the TSX Venture Exchange. That at least paints a picture as to what kinds of holdings could get them in trouble today.
