Hedge Funds reports on a small selection of the 300 hedge funds located in Canada. The hedge fund industry in this northernmost part of the Americas is young and agile and looking to use these very advantages to become a force in global asset management (see part 4 : Canada`s new funds part 4: Hillsdale Investment Management ).
Benedicte Gravrand, Opalesque London: In part 5, we look at a new investment firm called AlphaNorth which launched a small-cap hedge fund 8 months ago.The founders, Steven Palmer and Joey Javier, both AIG Global Investment Corp. alumni, run the fund from their offices in Toronto. They are hoping to hire an analyst later this year.
During the month of June, AlphaNorth Partners Fund Inc. returned 19.2% and +35.6% since inception in December 2007 (26.3% YTD). This is especially significant as both of the Canadian indices that AlphaNorth tracks were down in June. The S&P/TSX Venture Composite Index declined by 0.08% (-7.2% YTD) while the large capitalization S&P/TSX Composite Total Return Index declined by 1.4% (6% YTD).
Canada is not immune to the general lack of confidence in the markets; the Toronto Stock Exchange's main index went down by more than 2% on Monday, mainly due to resources issues.
The AlphaNorth Partners Fund’s AUM stand at about C$18m (US$17.6m) and is expected to raise up to C$100m. “It is quite low… but I don’t want to compromise performance of this fund vs. building assets,” Mr. Palmer said. “When we get to C$100m, we will close the fund.” The partners, as well as another investment firm (which is also a partner), made substantial investments in the fund.
The fund is expected to be volatile but the managers are reducing that with the hedge fund structure. Technically the manager is 80-100% invested in...Source:
Canada`s new funds part 5 - Long biased small-cap hedge fund
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