BAY CAPITAL INVESTMENT TRUST

This AIF Category III strategy is built for a very different part of the investment spectrum—where market movements are not avoided, but actively navigated.

Unlike long-horizon, business-building approaches, this strategy focuses on capturing opportunities across market cycles through dynamic positioning, tactical allocation, and disciplined execution.

It’s not about waiting for value to emerge over years—it’s about responding to it in real time.

What This AIF Category III Strategy Represents

At a practical level, this strategy operates in listed and liquid markets, using a mix of directional and non-directional approaches.

It typically involves:

• Active management across equity and derivative markets
• The ability to take both long and short positions
• Flexibility to adjust exposure based on market conditions

The goal is not just participation—it’s precision in how opportunities are captured.

Investment Focus

The portfolio is constructed around market-linked opportunities, rather than underlying business ownership alone.

This may include:

• Long-short equity strategies to capture relative value
• Arbitrage opportunities across price inefficiencies
• Tactical trades based on market trends and volatility
• Multi-strategy approaches combining different market views

The emphasis is on adaptability—shifting positioning as conditions evolve.

Nature of the Strategy

AIF Category III strategies are inherently dynamic and execution-driven.

Key characteristics include:

• High liquidity relative to other AIF categories Positions are actively managed and adjusted
• Short to medium-term horizons Opportunities are captured over shorter cycles
• Use of leverage and derivatives (where applicable) Enhancing flexibility and return potential
• Closer correlation to market movements Performance reflects both strategy and timing

This is a strategy that operates on market cycles, momentum, and tactical shifts.

Core Fundamentals Driving Allocation

Even though it is market-linked, the approach is far from random or reactive.

It is driven by:

• Risk management frameworks Controlling downside and managing volatility
• Strategy discipline Sticking to defined trading and allocation rules
• Market insight and timing Identifying entry and exit points with precision
• Consistency of execution Avoiding overexposure or erratic positioning

In this space, how decisions are executed matters as much as the decisions themselves.

Role Within a Portfolio

An allocation to AIF Category III is typically tactical and performance-oriented.

It can:

• Add agility to a portfolio during changing market conditions
• Act as a return enhancer alongside long-term investments
• Provide strategies that may perform across both rising and falling markets

It’s not a replacement for core holdings—it’s a dynamic layer that complements them.

A Note on Expectations

This strategy comes with a different set of expectations compared to other AIF categories.

• Performance may be more variable in the short term
• Returns are influenced by market conditions and execution quality
• Volatility can be higher depending on strategy style

The focus is on managing risk while capturing opportunities, not eliminating uncertainty.

Category III AIFs offer flexibility—but require sharper selection.

From long-short equity to arbitrage and tactical trading strategies, these funds operate closer to market movements than traditional alternatives. That makes manager quality, risk control, and execution discipline critical.

Through AltPort Funds, evaluate this strategy within a broader universe of 1800+ AIF products, helping you compare not just returns, but consistency, drawdowns, and approach.

Because in this category, how you get returns matters as much as the returns themselves.

Start a conversation to understand where this strategy fits within your overall allocation.