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Groundlayer Capital Inc.


100 King Street West
First Canadian Pace, Suite 6101, PO Box 61
Toronto, Ontario M5X 1B1
(416) 365 - 2300

Principal Contacts

Robert Grundleger
Tel: (416) 365 - 2300

Client Minimums

Private: $2,000,000
Institutional: $2,000,000

Types of Accounts Managed

  • Private Individual / Investor
  • Institutional Investor - Non-Profit
  • Institutional Investor - Other

Provinces of Business

  • Ontario*
  • United States
  • International - Non-North American

* indicates a physical location in this province

About Us

  • Groundlayer Capital, Inc. was founded in April 2002
  • Investment Team has been together since inception
  • Registered with the Ontario Securities Commission
  • Principals have significant holdings in the funds

Investment Strategy

  • Concentrated Long/Short North American equity fund
  • Long bias
  • Focused portfolio typically consists of  20 to 25 securities
  • Top 10 stocks = 55% of invested portfolio
  • Focus on securities listed on major exchanges with market capitalizations of $500 million to $3 billion
  • Rigorous fundamental research of individual companies
  • Shorts are opportunistic and fundamental
  • “Big Idea” hunting

Implementation of Investment Strategy

  • Rigorous fundamental research process leads to intrinsic value calculation and identification of a catalyst
  • Valuation and margin of safety are important criteria
  • On long side, features of selected companies include growth, reasonable price, significant free cash flow, experienced management with integrity,  large insider holdings or opportunistic situations such as broken IPO’s, situations where stock market pricing has not caught up with improving business fundamentals or where complex fundamentals distort value
  • On the short side, relevant features include deteriorating fundamentals, changes in balance sheets, extreme overvaluation
  • Time horizon 2-4 years on the long side. The short side is an opportunistic strategy with a shorter time horizon

Portfolio Risk Management

  • Significant investment by principals
  • Deep fundamental research and scrutiny of individual securities
  • Minimal leverage
  • Maximum concentration limits in one stock
  • Pairs trading and minimal option writing
  • Opportunistic short position risk is managed by limiting positions to 3-4%, adhering to stop loss parameters
  • Employ index derivatives for hedging strategies
  • Employ currency hedges
  • Liquid portfolio – 85% could be liquidated within one day, remainder within 1 week
  • Outside independent administrator, auditor and prime broker

Why Invest

  • Positive U.S. market outlook
  • Earnings growth continuing and companies have operating leverage
  • Groundlayer long-term record (approx.: 11% CAGR CDN$, approx.: 14% CAGR USD$)