CONFIDENTIAL OFFERING MEMORANDUM

This Offering Memorandum constitutes an offering of these securities only in those jurisdictions where they may be
lawfully offered for sale and therein only by persons permitted to sell such securities and to those persons to whom
they may be lawfully offered for sale. No securities commission or similar regulatory authority in Canada has
reviewed this Offering Memorandum or has in any way passed upon the merits of the securities offered
hereunder and any representation to the contrary is an offence. No prospectus has been filed with any such
authority in connection with the securities offered here under. This Offering Memorandum is confidential and is
provided to specific prospective investors for the purpose of assisting them and their professional advisers in
evaluating the securities offered hereby and is not to be construed as a prospectus or advertisement or a public
offering of these securities.

SKYLINE CANADIAN RELATIVE VALUE FUND

Limited Partnership

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SUBSCRIPTION PRICE: $10 PER UNIT
MINIMUM INITIAL INVESTMENT: $250,000
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An unlimited number of Units are being offered hereby. The Units are only being distributed to investors
resident in Ontario, Québec, Manitoba, Saskatchewan, Alberta and British Columbia pursuant to available
prospectus exemptions under applicable securities laws. This offering may be suspended at any time and
from time to time.

Subscribers are urged to consult with an independent legal and/or tax adviser and to carefully
review all Limited Partnership documentation (available upon request from the Manager) prior to
signing the Subscription Agreement for the Units.
• Firm Name: Skyline Financial Canada Inc.

• Firm Description: Skyline Financial is a Canadian-centric asset manager with a focus on relative
value.The firm is 100% owned by its principals who have invested over $15 million dollars of
their own capital, aligning their interests directly with the firm’s investors.

• Firm Principals:
 Russell Mills – Chief Executive Officer
• BA - Econ, MFIN Candidate
• Previously: VP, Investment Banking at PI Financial Corp.
• CFA Charterholder
 Fahad Ahmed – Chief Operating Officer
• BCom, MFin Candidate
• Previously: Manager, Commercial Banking at CIBC
• CFA Level 2 Candidate
 Catherine Chen – Chief Risk Officer
• BA – Accounting & Statistics, MFIN Candidate
• Previously: Risk Analyst at TD
• Passed CFA Level III
 Jackson Liu – Head of Research
• BBA, BMath, MFIN Candidate
• Previously: Portfolio Administrator at CPPIB
• CFA Level II Candidate
 Taylor Wilson – CIO
• BBA, MFIN Candidate
• Previously: Fixed Income Trader at FGP Inc.
• Passed CFA Level III

• Investable Instruments: Fixed-income instruments, equities, swaps, options, FX instruments.

• Investment Philosophy: The fund is opportunistic with the ability to use fixed-income, equity
and derivative products to take advantage of attractive opportunities when present. Skyline’s
principals have extensive experience within the Canadian capital markets allowing them to use
their in-depth knowledge to find value-add opportunities for their clients.

• Investment Process:
 Quantitative Screening
• Fixed Income: Daily proprietary screening through trading pairs in the FTSE/TMX
Corporate Bond universe
• Equity: Weekly proprietary screening through fundamental factors: ROE
improvement, sales and EPS growth, analyst revisions; technical analysis;
momentum; trading volume
 Fundamental Research
• Fixed Income: Understanding relationships between market movers; exploring
the differences between related entities
• Equity: Statement analysis, Company and management visits, trade and industry
conferences, broker conferences; channel and competitors checks
 Trade Construction
 • Assessing liquidity in debt/equity markets
• Assessing risk and return scenarios
• Sizing trade and establishing stop loss parameters
 Execution and Monitoring
• Determining entry and exit price levels
• Trade execution
• Continuous risk monitoring of each trade and its impact on overall portfolio

• Expected returns: The investment objective of the Fund is to produce attractive risk-adjusted
absolute returns. Skyline Financial’s goal is to return 8-10% per annum.

• Management Fee: 1.5% per annum fee for assets under management, calculated on a daily
basis and paid in arrears at each quarter end (March 31, June 30, Sept. 30 and Dec. 31)

• Performance Fee: 15% performance fee per annum, paid in arrears, on any amount above the
most recent High Water Mark.
 “High Water Mark” for a Unit as at any date means, initially, its subscription price, and
thereafter shall be adjusted from time to time to equal its Net Asset Value immediately
following the payment of a Performance Fee in respect of such Unit. The High Water
Mark of a Unit will be appropriately adjusted in the event of a consolidation or
subdivision of Units.

• Cost of capital:
 Repo Rate: 0.20% (Corporate Bonds)
 Margin on Short: 20.00% (Corporate Bonds)

• Risks:
 Liquidity & Spread Risk
• Only short highly liquid securities
• 1 year lock-up for fund, monthly redemption
• Public security, position size limited by daily average volume (equities)
• Stop-loss / enter-exit point analysis
 Concentration Risk
• Concentration limits:
• Max. 10% held of any outstanding issue
• Max. 10% of NAV held in any individual name
• Max. 30% of NAV held in speculative grade debt
 Market Risk
• Hedge sector risk with pair trading
• Hedge interest rate risk through duration neutral trades
 Other Risks
• Counterparty risk: Best-in-Class service partners
• Low leverage used
• Daily monitor (VaR, P/L reconciliation, sensitivity analysis)
• Selling discipline
• Legal experience, compliance and regulatory requirement
• Lock up: Initial lock-up of 1 year, after lock-up 25% maximum withdrawal per month of amount
initially invested.

• Minimum capital: The minimum initial investment for an investor is $250,000. The minimum
investment may be reduced from time to time in the discretion of the Manager.

• Redemption period: Units may be surrendered by Unitholder on the last business day of each
month upon giving 30 days prior notice.

• Prime Brokers: National Bank Correspondent Network (NBCN)

• Legal Counsel: AUM Law

• Auditors: BDO Canada Ltd.

• Administrators: Convexus Managerial Servicees