Negative publicity for the Canadian hedge fund industry failed to dampen investor enthusiasm and dem

Date: Thursday, March 24, 2005
Author: www.hedgeco.net

Negative publicity for the Canadian hedge fund industry failed to dampen investor enthusiasm and demand for hedge fund vehicles. The bad publicity resulted from the troubles of Portus Alternative Asset Management Inc. Last month the New Brunswick Securities Commission (NBSC) issued another order against Portus Alternative Asset Management Inc (Portus) and its owner and managing director, Mr. Boaz Manor.
The order was part of the ongoing investigation of Portus’ operations. According to published reports, “Portus, an Ontario-based company, registered in New Brunswick, is the subject of an ongoing compliance review by NBSC.” The commission is also collaborating with other Canadian investigators on the alleged violations by Portus Alternative Asset Management.
The Ontario Securities Commission {OSC} and regulators from across Canada continues to investigate Portus’ sales and other bookkeeping practices. The firm was placed under receivership, which OSC said was an important step in order to recover about $730 million belonging to some 26,000 Canadians.
Regardless of such negative publicity, an estimated $2 billion flowed into the Alternative Investment market in Canada during the month of February, showing once again that the hedge fund momentum appears unstoppable at least for now.
Paul Oranika- Editor-in-Chief
www.hedgeco.net