Francis Lau’s one-man hedge fund, Lucida Capital, posted a 65% gain from April through December 2025, outperforming larger Canadian rivals, by investing – leverage-free – primarily in mid-cap US and Canadian stocks, according to Bloomberg data.

The Markham-based firm manages between CAD50 million and CAD100 million, mostly for high-net-worth individuals.

Lau, 43, founded Lucida Capital after two decades on Bay Street, most recently at Vantage Asset Management. Operating from an office next to a gas station and Costco, he attributes part of his success to a streamlined setup and a short commute that allows more time for research and trading decisions.

The fund employs a mid-cap, long-only strategy with zero leverage, focusing on companies with market capitalisations between $2bn and $10bn. Top contributors in 2025 included FTAI Aviation (+36.7%), Enerflex (+55.1%), and IREN (+284.6%), all benefiting from pivoting to supply power for AI-driven data centers. Lau holds 15–20 stocks at a time and invests across sectors, seeking inefficiencies in mid-cap names while protecting downside risk.

“If I can minimise the number of losers, the winners are just there,” Lau said. The approach contrasts with traditional hedge funds that rely on leverage to amplify returns, offering a lower-risk path to outsized gains.

Lucida Capital’s performance places it among the top-performing Canadian hedge funds, alongside event-driven firm Lynwood Capital (68% return) and Pender Alternative Select Equity Fund (~40%).