Arrow offers stand-alone Canadian Income Fund

Date: Tuesday, January 30, 2007
Author: Investment Executive Staff

Arrow Hedge Partners Inc. today announced the launch of Arrow Canadian Income Fund. The fund will invest primarily in Canadian income trusts and dividend-paying common shares, with a focus on North American securities.

The fund’s investment objective is to achieve a high level of income and potential capital gains, generating an attractive risk-adjusted return with moderate volatility. The fund, advised by Ben Cheng of Aston Hill Financial Ltd., a wholly owned subsidiary of Overlord Financial Inc., will be available for purchase by accredited investors on February 1.

“With the recent changes to the income trust legislation introduced by the Canadian government, we believe this is an ideal time to start a long/short fund that can take advantage of the considerable market opportunities created,” says Mark Purdy, managing director and chief investment officer of Arrow Hedge Partners.

“We are very excited to be working with Ben Cheng again,” says James McGovern, CEO of Arrow Hedge Partners Inc. “The fund offers investors an opportunity for a high level of income and potential capital gains within a hedged investment process.”

Aston Hill’s “bottom up” research approach concentrates on companies that operate in defensible niche markets and that have strong cash flow and compelling growth prospects. Arrow Canadian Income Fund will generally maintain a long bias, conducting a bottom-up analysis of each security it owns, long or short.

“The securities selected for Arrow Canadian Income Fund will go through a rigorous analytical process, with a focus on free cash flow,” says Ben Cheng, portfolio manager and advisor to the fund.