FAX Flagship Fund

Investment Philosophy

The FAX Flagship Fund (the “Fund”) invests in high-quality North America small and medium-sized businesses. The Fund invests across the capital structure, is sector agnostic and focuses on a concentrated portfolio of investments that can steadily compound at attractive rates to become larger companies or potential takeout candidates. The Fund offers a crossover approach that provides unique exposure to public and private securities.

Fund Highlights

High-quality North American SME

Public target size < $10B

Private target size < $1B

Public and private cross-over

Concentrated portfolio

Disciplined and proven process

Constructive Active Ownership

Long-term approach

Fund Objective

The investment objective of the FAX Flagship Fund is to achieve superior investment returns with the goal of maximizing long-term capital growth on a risk adjusted basis by investing in a concentrated portfolio of high-quality public and private securities of companies located primarily in North America.

Focus

Small cap public & private companies

Significant minority and/or control positions

Capital structure agnostic

Approach

Disciplined

Long-term

Active

Concentrated

Structure

Permanent capital to maximize compounding

Efficient operating structure

Internally managed i.e. no management fees

Team

Aligned with shareholders

Proven operators

Long-term track record

Business Charateristics

Economic resilience

Ability to protect and develop its market

Competitve differentiation

Established brands

Reinvestment opportunities

Management Charateristics

Capable and honest management

Demonstrable track record

Disciplined capital allocation

Alignment

Financial Charateristics

Recurring revenue

Durable earnings growth

Balance sheet flexibility

High returns on capital

Portfolio Company Characteristics

Business Characteristics

Economic resilience

Ability to protect and develop its market

Competitive differentiation

Established brands

Reinvestment opportunities

Management Characteristics

Capable and honest management

Demonstrable track record

Disciplined capital allocation

Alignment

Financial Characteristics

Recurring revenue

Durable earnings growth

Balance sheet flexibility

High returns on capital

The Fund Advantage

Disciplined approach to quality

SME focus

Crossover strategy

Strong investment team and process

Active approach

Relative lack of competition

Long-term orientation

Operational background and track record scaling businesses

Contact Information

For more information about the FAX Flagship Fund please reach out to:

FAX Capital Management Inc.
Email: info@faxcapital.com

FAX Capital Management Inc. is a registered investment fund manager, portfolio manager, and exempt market dealer in Canada. FAX Capital Management Inc. has been retained by FAX Capital Corp. to provide the regulatory and investment supervision necessary to distribute securities and manage third party capital. FAX Capital Management Inc., is a wholly-owned subsidiary of FAX Capital Corp.

Disclaimer

Nothing contained herein is intended to be an offer, solicitation of an offer, public advertisement or recommendation to buy or sell securities of any kind. The FAX Flagship Fund may only be purchased by accredited investors. Please read the Offering Memorandum before making any investment decisions. Prospective investors should inform themselves as to the legal requirements for the purchase of securities.