Calrossie Investment Management Inc. is a boutique investment management company focused on delivering better-than-average returns for lower-than-average fees.
Calrossie is managed by David Ramsay, a former top-ranked equity analyst and senior executive at a major Canadian investment dealer, with over 25 years of finance industry experience.
The company manages the Calrossie Partners Fund, which was launched in April 2008. This unique fund combines the long-term performance advantages of a core portfolio of Canadian dividend-paying stocks with the benefits of a smaller, more actively-traded portfolio of North American securities, using a modest amount of financial leverage.
The Fund attempts to limit turnover of the core portfolio in order to minimize taxes. This low turnover, combined with a highly competitive management fee structure, makes the Fund well-suited to taxable investors (subject to their individual financial situations and risk tolerances). Dividends can either be automatically reinvested in the Fund or taken out annually, and the gross yield is currently approximately 4.0%.
The Fund has outperformed the S&P/TSX Composite Total Return Index each year since inception, and has outperformed the Index on a cumulative basis by 22.9% (after all fees and expenses) through the quarter ended December 31, 2011 (see performance summary for latest information). The Fund’s longer-term objective is to outperform the S&P/TSX Composite Total Return Index by several percentage points annually after fees.
The Calrossie Partners Fund charges a flat 1% fee (plus HST). There are no incentive fees or other administrative fees, so 1% is also the management expense ratio (MER). Investors may purchase or redeem units of the Fund at each month end, subject to an initial one-year hold. The Fund has a minimum initial investment of $150,000 and is open only to Ontario residents. It is structured as a limited partnership and is not RRSP-eligible.