Three Canadian provinces ban investors from opening new accounts with hedge fund

Date: Thursday, February 3, 2005

The Ontario Securities Commission today issued a temporary order today precluding Portus Alternative Asset Management Inc. from opening new client accounts and accepting new funds for investment in existing accounts. Securities regulators in Alberta and New Brunswick also moved to bar Portus from accepting new funds. The OSC says it made the order based on conduct by Portus which appears to contravene securities regulations. Portus, a Toronto-based hedge fund manager, mananges $800 million on behalf of about 26,000 clients. The hearing to consider whether the temporary order should be extended is scheduled for February 17 at the commission's offices in Toronto.