Gentree launches first hedge fund

Date: Friday, November 23, 2007
Author: Advisor.ca

Gentree Asset Management has announced the launch of Gentree Market Risk Reduction Strategy, the company's first hedge fund offering.

The fund is being distributed via a private placement offering to Ontario institutions and private clients, and is available on FundServe. The initial offering will be limited to $200 million and is expected to be also available to Quebec, British Columbia and Alberta residents as of January 1, 2008.

Gentree claims the fund is "designed to generate 30 & 150; 40% annual returns," trading in index options and futures.

"The Gentree fund is structured to shelter all capital gains realized through the trading of investment instruments in the fund portfolio," says Normand Gauthier, president and CEO of Gentree. "In our distribution class, the initial income is treated as return of principal for tax purposes and is, therefore, not taxable. After the principal is paid out, the distributions or proceeds of share units sold are treated as capital gains."