Buyouts Spark 56% Gain for Toronto’s Bedford Park Capital

Early bets on two acquisition targets propelled a Toronto-based hedge fund to a 55.6% gain during the second quarter.

Bedford Park Capital, run by the firm’s portfolio manager and CEO Jordan Zinberg, first purchased shares in gaming firm Seven Aces Ltd. at C$0.96 in November 2018, according to a letter viewed by Bloomberg. Seven Aces entered a pact to be purchased at C$2.15 per share by an affiliate of Trive Capital about a month ago.

Zinberg still sees further gains. “The offer from Trive is low and does not represent fair value for the company,” he wrote in the letter.

Additionally, a private equity investment in Canadian smartphone and tablet repair shop Mobile Klinik also paid dividends. Canadian telecom giant Telus Corp. purchased the company earlier this month.

Bedford Park said it bought Mobile Klinik in May 2019 via a “unique convertible preferred share structure, which included a liquidity preference and favourable payout terms ahead of the common shareholders.”

The fund manages just under C$40 million in assets. Since inception in September 2018, Bedford Park has outperformed the S&P/TSX smallcap total return index by 14%, as of June 30.

©2020 Bloomberg L.P.

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