Canada’s Canaccord Creates a Hedge Fund Consultant

Date: Wednesday, May 1, 2002

Anticipating that falling investment minimums for Canadian hedge funds may spur heightened interest among a broader spectrum of investors, Canaccord Capital is set to consult on alternative investments. Bob Thomson, who sees his main task as educating investors on how alternatives might be used within the context of a wider investment portfolio to lower volatility and potentially boost overall returns, heads the new Canaccord Capital Hedge Fund Strategy group. Mr. Thomson said the group would provide guidance in doing portfolio analysis and formulating allocation strategies for individual investors seeking to tap hedge funds. The group may also be in a position to offer funds that would otherwise be unavailable outside of banking-brokerage distribution channels, as a number of Canadian banks tend to emphasize home grown alternatives. With traditional investments languishing in bearish global equities market and lower thresholds for investing in hedge funds, Mr. Thomson thinks many conservative Canadian investors may soon be looking to take the plunge into alternatives for the first time. “About 80% of the funds we have here in Canada are long/short funds with only a handful doing convertible arbitrage, multi-strategy or something else,” Mr. Thomson said. “With all the differences between these types of funds and strategies, we really see our hedge fund consulting as something that can help fill an investor education vacuum. It’s crucial step in the development of the industry here in Canada.” Canaccord Capital has about 650 brokers based in 30 offices across Canada.