About Barrage Capital

About Barrage Capital

The firm was founded in 2013 by four investors who shared a common investment philosophy, Value Investing. Since then, Barrage has managed to carve out a place among private wealth management firms in Montreal. The firm currently manages assets of approximately $100 million, entrusted to us by more than 400 individual clients. Barrage offers an investment approach that has been proven over time and a long-term vision. The name “Barrage”, which stands for "dam" in French, is a nod to the hydroelectric dams that represent the creation of wealth in Quebec.

Value Investing : Time tested concepts

Our methodology is based on the idea that a significant difference may exist between the value of a company and its trading price and that, with the passage of time, this difference tends to disappear. The idea is not to know exactly why such a difference exists but to profit from it. Since the price of a company is readily available, the difficulty lies rather in estimating its value.

The value of a company is primarily derived from the value of its assets and their ability to generate profits. A company’s profit history on its own cannot ensure future profitability. By considering several other factors we can achieve a reasonable degree of certainty about the future of the company. Among the factors that we look at are the economics of the business, the competitive position of the company and the integrity and competence of its management.

After estimating the value of a company, we buy shares only if their price is significantly lower than our estimate. The difference between the price paid and our estimated value is our “Margin of safety”. The margin of safety provides a double benefit to the portfolio: it reduces the risk of permanent capital loss while considerably increasing potential returns.

The Barrage Fund

The Barrage Fund is an Investment Trust established under the laws of the Province of Quebec. The Fund is the investment vehicle for investors interested in asset management services offered by Barrage Capital.

CIBC Mellon is the trustee, custodian and administrator of the Fund while KPMG is the auditor and Fasken the legal advisor.

Management of the Barrage Fund

The Fund's objective is to provide our unitholders a return above the major indices. To achieve this, Barrage Capital manages the Fund's assets by applying the Value Investing approach.

The Fund's investment mandate is not limited to one particular region, sector or market capitalization. Restricting a fund to a single category of assets limits its potential returns. Barrage Capital prefers to have the flexibility to combine the best opportunities available into one fund, where we can concentrate our full attention.

Moreover, our investment philosophy leads us to concentrate our assets in a limited number of securities. This allows us to benefit from diversification without compromising our ability to generate superior returns.