A unique strategy with an attractive return profile and a low risk profile.

The goal of the fund is to generate positive absolute returns regardless of market conditions and offer an uncorrelated alternative to traditional equity and fixed income strategies. The Maxam Arbitrage Fund invests in a diversified portfolio of arbitrage opportunities.

The Maxam investment team has over 12 years of experience managing arbitrage strategies within the Maxam Diversified Strategies Fund. We employ a quantitative and qualitative data-centric process to build an optimal reward-to-risk portfolio.

Merger Arbitrage.

Merger arbitrage is an absolute return investment strategy whereby an investor seeks to profit from the successful completion or ‘closing’ of announced merger and acquisition (“M&A”) transactions, or other corporate reorganizations.

The arbitrageur takes a long position in the target company, following the announcement of the transaction, at a discount to the contracted acquisition price and, if applicable, simultaneously sells short the acquiror’s stock at a ratio equivalent to the share consideration offered.

The arbitrageur profits when the acquiror successfully completes the acquisition at the contracted price. The arbitrageur’s profit is dependent on the successful completion of the acquisition, uncorrelated with market performance.

An example of merger arbitrage:

SPAC Arbitrage.

It is about SPAC arbitrage for us, not SPAC speculation.

Special purpose acquisition company (“SPAC”) arbitrage is a unique strategy whereby an investor seeks to harvest yield-like returns, and upside exposure to a future unknown acquisition, while maintaining certainty on downside value, or risk.

In a typical offering, a SPAC completes an IPO at $10.00 per unit. The SPAC management team then has a contracted timeframe to pursue an acquisition. While management searches for an acquisition, the IPO proceeds are held in escrow in a trust account and accrue interest.

Similar to a merger arbitrage scenario, SPAC units or shares may trade at a discount to their NAV or trust value. When SPAC management identifies a target acquisition, the proposed transaction is presented to shareholders for a vote. At that time a shareholder can choose to:

redeem their shares for $10.00 plus accrued interest (NAV);
vote for the transaction and stay long the security; and/or
sell their shares at the current prevailing market price.

The arbitrageur will choose the action that optimizes their return with the least amount of risk.

An example of SPAC arbitrage:

The information contained in this presentation is intended to provide you with information regarding Maxam Capital Management Ltd. and the funds it manages. Maxam Capital Management Ltd. is the manager for the Maxam Arbitrage Fund. Important information about the Fund is contained in the Fund’s Simplified Prospectus, which should be read before investing. This presentation is neither an offer to sell securities nor a solicitation to sell securities. The securities of the Fund are sold only through IIROC registered dealers in those jurisdictions where it may be lawfully offered for sale. Accredited investors or certain other qualified investors may also purchase securities through Maxam Capital Management Ltd in reliance on certain prospectus exemptions available in National Instrument 45-106. Investors should consult with their own investment advisor and obtain a copy of our applicable Simplified Prospectus and Fund Facts documents before investing in the Fund. Investors should seek advice on the risks of investing in the Fund before investing. This document may contain forward-looking statements. These forward-looking statements are based upon the reasonable beliefs of Maxam Capital Management Ltd. at the time they are made and are not guarantees of future performance, are subject to numerous assumptions, and involve risks and uncertainties about general economic factors which may change over time. Maxam assumes no duty, and does not undertake, to update any forward-looking statement and cautions you not to place undue reliance on these statements as actual events or results may differ materially from those expressed or implied in any forward-looking statements made. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Simplified Prospectus before investing. Any indicated rates of return are the historical annual total returns including changes in value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This document is not intended to provide legal, accounting, tax or investment advice. Please consult an investment advisor and read the prospectus for the Maxam Arbitrage Fund prior to investing. SPAC = Special Purpose Acquisition Company. The Catamaran Corp. merger arbitrage example and the Longview SPAC arbitrage example are provided for information purposes only. Please visit www.maxamcm.com for further information.

A unique strategy with an attractive return profile and a low risk profile.

The goal of the fund is to generate positive absolute returns regardless of market conditions and offer an uncorrelated alternative to traditional equity and fixed income strategies. The Maxam Arbitrage Fund invests in a diversified portfolio of arbitrage opportunities.

Here is some information on two of the arbitrage strategies we employ with the goal of generating consistent and attractive risk-adjusted returns:

Merger Arbitrage.

SPAC Arbitrage.

The Maxam Arbitrage Fund is a liquid alt.

Maxam Capital Management Ltd.

Maxam Arbitrage Fund

Maxam Diversified Strategies Fund