Dividends4Life: This Fund Is Loaded With 'Big, Boring' Dividend Stocks

Aston Hill Capital Growth, which has been run since late 2010 by manager Jeffrey Burchell of Aston Hill Asset Management Inc., has gained an annualized 18.4-per-cent return. It was formerly a closed-end fund called Tax Optimized Return Oriented Securities Trust whose assets were rolled into a mutual fund in mid-2011. Mr. Burchell, a manager with hedge-fund firm Polar Securities Inc. before joining Aston Hill, said the North American equity fund aims to be a lower-risk, go-anywhere investment that can own small to large-cap companies. When markets sold off over the past couple of years, “there has been minimal to no drawdowns,” he said.

The lower volatility has stemmed from the ability of the fund to do limited short-selling (up to 20 per cent of assets) to make bearish bets or as a hedging strategy. The fund typically has large cash balances, which have ranged from a low of 25 per cent to a high of 68 per cent in April, 2012. Cash is now about 30 per cent of the fund. The fund, which is focused on U.S. securities, has been helped by playing the U.S. housing recovery through homebuilders although Mr. Burchell no longer owns those stocks.

Source: Globe and Mail

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