BluMont hedge fund appoints two new investment managers

Date: Wednesday, October 22, 2003

BluMont Strategic Partners Hedge Fund has entered into investment management agreements with Frank Mersch of Front Street Investment Management Inc. and Veronika Hirsch of BluMont Capital Corp. The two managers will begin their mandates on or about October 22. "With the addition of Frank Mersch and Veronika Hirsch", says, "we have succeeded in bringing six of the best long/short equity managers in Canada together in one fund," said T Toreigh Stuart, president and CEO of BluMont Capital and manager of the Fund. Frank Mersch is a 20-year veteran of the investment industry. The Front Street separate investment account will be managed with a similar mandate to Front Street's Casurina Performance Fund which, as of August 31 2003, has delivered a 23.7% return year-to-date and a cumulative return of 26.4% since its May 2002 inception. Mersch has been managing alternative investment mandates since 1999. Hirsch also has 20 years experience in investment management. As manager of the BluMont Hirsch Performance Fund, the BluMont Hirsch Long/Short Fund and co-manager of the BluMont Canadian Opportunities Fund, she Hirsch has been a consistent, top-quartile performer since she began running alternative investment mandates in 1997. The Hirsch separate investment account will be managed with a similar mandate to the BluMont Hirsch Long/Short Fund which, as of September 30, 2003, has delivered a 10.0% return year-to-date and a cumulative return of 16.1% since its August 2002 inception. To make room for the new managers, the fund is replacing Gabelli Securities International Ltd., which presently accounts for 14% of the fund's net asset value. Hillsdale Investment Management Inc., which has had strong performance this year, will have its allocation rebalanced to 20%. Once these changes are complete, allocations will be 33% to Sprott Asset Management Inc.; 20% to Hillsdale; 12% each to SciVest Capital Management Inc., Front Street and BluMont; and 11% to J.C. Clark Ltd.