Leeward launches Leeward Offshore Bull & Bear Resource Fund

Date: Friday, January 9, 2004

The three-year-old firm launched its fourth hedge fund this week called the Leeward Offshore Bull & Bear Resource Fund. The new fund was seeded with US$50-million from existing Leeward investors. Brendan Kyne, chairman and chief executive of Leeward, expects to add another US$50-million of new money this quarter. The markets have been good to Leeward the past three years. Its flagship Leeward Offshore Bull & Bear Fund rose 58% in 2003, after rising 9% in 2002 and 26% in 2001, net of performance fees (1.5% base management fee and incentive fee of 20% of gains), Mr. Kyne said. Leeward expects to add another US$50-million of new money on Feb. 1, which would bring the the firm to almost C$340-million in total assets. With the US$50-million expected for the new resource fund, Mr. Kyne said his firm will be close to C$400-million, which is where the firm will cap itself. It looks like 2004 will be another good year for Leeward. "We're off to a good start," Mr. Kyne said. "We have a very large position in Nortel."