Canadian Fund Of Hedge Funds Returns 20%, Plans New Offering

Feb 8 2007 | 10:28am ET

Canadian fund of hedge funds The Alpha Scout Fund had strong showing in its first year, gaining 20.46% net of fees. Based on these strong results and investor demand, the Toronto-based firm is also planning to launch a new version of the fund next month that will be marketed to Registered Retirement Savings Plans.

Our first full calendar year of operations was a great success, capped off by gains registered in each month of the fourth quarter," said Ann Glazier Rothwell, chief executive officer and co-founder of the fund. 

The over 20% gain outpaced the 11.06% gain recorded for the year by the fund's performance benchmark, which is a combination of the S&P/TSX composite (weighted 40%); S&P 500 (weighted 30%); and Lehman Brothers Government-Credit Bond Index (weighted 30%). The fund's performance also beat the Credit Suisse/Tremont Hedge Fund Index, which recorded a return in 2006 of 13.86%. 

“Since creation of the fund in August 2005, we have realized an annualized 16.96% return,” said Glazier Rothwell.

The fund’s portfolio consists of 15 hedge funds. According to the firm, investors in fund incurred 30% less risk than they would have by investing in the broad market, as measured by the fund's standard deviation compared with that of the S&P/TSX Composite Index.
 
The soon-to-be-launched RRSP-version of the fund will be made available for distribution by the brokerage and financial planner community. The new vehicle will feature much lower initial and subsequent purchase amounts and other terms consistent with other RRSP eligible funds. 

 
The soon-to-be-launched RRSP-version of the fund will be made available for distribution by the brokerage and financial planner community. The new vehicle will feature much lower initial and subsequent purchase amounts and other terms consistent with other RRSP eligible funds.
  


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