Canadian hedge fund manager Anson Funds is backing an activist investor who's fighting for control of First Capital Real Estate Investment Trust. 

Anson says First Capital is undervalued and has aligned itself with Samir Manji, the real estate executive who's trying to win four board seats and change the company's strategy, according to a letter to Anson investors. 

Manji runs Vancouver-based Sandpiper Group and is also chief executive officer of Artis Real Estate Investment Trust. The two entities together own 9 per cent of First Capital and launched a proxy fight in December. 

“Samir has a history of maximizing shareholder value, and we fully support Sandpiper's plan here,” Moez Kassam, Anson's co-founder and chief investment officer, said in an interview. 

At the heart of the conflict is the property company's plan to sell $1 billion (US$751 million) of assets to reduce debt. Sandpiper wants to cut that to $400 million and sell only lower-growth assets, and allocate most of the proceeds to buying back shares. 

Sandpiper has said it will change management compensation and pursue strategies to maximize unitholder value — including a possible strategic review that could lead to a sale. 

A representative for First Capital couldn't immediately be reached for comment. The company has called a shareholder meeting for May 16. It has previously said it will “engage constructively with unitholders in a manner that is in the best interests of all unitholders, and not just Samir Manji.”

First Capital shares are up about eight per cent so far this year in Toronto. 

Anson is exposed to First Capital REIT through its Arch Anson Tactical Real Estate Fund. The firm wouldn't disclose how many shares it owns.