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Alterra Capital partners with UK firm to offer new approach to hedge fund investing

Date: Wednesday, June 6, 2007
Author: Investment Executive Staff

Alterra Capital today announced it has entered into an exclusive partnership arrangement with UK-based Fortune Asset Management to provide sub-advisory services to Alterra’s hedge fund products, access to Fortune’s hedge fund portfolio platform and enter into cross marketing opportunities.

Jit Mistry, Alterra’s CEO, stated in a release, “We are excited about our relationship with Fortune and our entry into the Canadian hedge fund marketplace. Our approach has always been to bring unique and relevant alternative investment ideas to our Canadian clients. This relationship works well with our philosophy as Fortune’s hallmarks are entrepreneurship, transparency, a proven process, and a successful track record. Theirs is the platform on which we will build our presence in Canada.”

In the coming months, Alterra will be introducing a new concept in hedge fund investing that will address two of the most challenging aspects of this asset class, namely transparency and liquidity. The new structure will be based on what is known as a “Managed Account” platform. The fund will be the first of its kind for a multi-manager, multi-strategy hedge fund. Sub-advisory for the fund will be led by Jack Schwager, a former director of derivates research with leading Wall Street firms and portfolio manager, who is renowned for his best-selling Market Wizards series, chronicling the world’s best traders, and his Schwager on Futures series, regarded as one of the most in-depth reference works in the field.

Instead of investing in hedge funds by buying units directly into limited partnerships, the fund will direct all underlying managers to establish accounts on a managed account platform. According to Schwager, “The Alterra Fund will essentially own the same investments, but with the transparency, liquidity and valuation of which most funds of funds can only dream”.

Alterra will also be introducing a customized portfolio platform designed primarily for ultra high net worth investors, family offices and institutional investors.

“This customization platform is ideal for investors who require something more than a ‘one size fits all’ multi-manager, multi-strategy hedge fund program. In partnership with Fortune, we will be able to construct customized solutions that will fit within the overall context of existing portfolios to achieve specific objectives within stated constraints,” Mistry stated.

Simon Hopkins, Fortune’s managing director, said, “Fortune is pleased to enter into this exclusive joint-venture with Alterra. The firm is staffed with highly experienced professionals who understand the issues individual and institutional investors in hedge funds face, and our platform is an ideal fit in helping Alterra create and deliver the solutions to Canadians.”

Alterra Capital is a private Canadian specialized asset management firm that focuses upon the creation of non-traditional and non-correlated asset based solutions with an international orientation in equity, income and portfolio overlay strategies.

Fortune Asset Management is a London, UK based alternative asset management firm offering some of the world’s top performing multi-manager and single manager hedge fund products as well as customized portfolio management for a range of private wealth management groups, family offices, insurance companies, banks and both public and private pension funds.