Arrow Hedge opens Arrow Distressed Securities Fund

Date: Wednesday, July 20, 2005
Author: Canada News Wire

TORONTO, July 20 /CNW/ - Jim McGovern, Managing Director and CEO of Arrow Hedge Partners Inc. of Toronto, Canada is pleased to announce the launch of the Arrow Distressed Securities Fund, which is now available for purchase. The Fund is advised by Schultze Asset Management LLC based in Purchase, New York.

The Fund's investment objective is to achieve superior capital appreciation through special situation investing in distressed and financially troubled companies. The manager invests primarily in U.S. distressed debt and equity securities. The manager follows a "bottom up" value investing strategy, selecting both long and short positions using fundamental analysis, to identify grossly undervalued securities from distressed firms where the manager believes a catalyst exists for value realization. The manager will invest at any point in the reorganization process including pre-bankruptcy, during the bankruptcy re-organization as well as in post bankruptcy securities, at all levels of a firm's capital structure. The portfolio typically holds 60 to 75 positions.

Schultze Asset Management has been managing the Arrow Distressed Securities Fund since its inception in July 2003, which, until now, was only available for investment as part of the Arrow Multi-Strategy Fund and the Arrow Global Equity Long/Short Fund. The Fund will have a capacity of approximately $125 million (CAD).

About Arrow Hedge Partners Inc.

Arrow Hedge Partners Inc. is an investment management company that specializes in providing access to high quality hedge fund managers and multi-manager fund of funds to a wide range of clients including family offices, institutions, pension funds and high net worth individuals.

Arrow Hedge distinguishes itself as a hedge fund leader in Canada by adhering to three key principles - Focus, Risk Management, Integrity - in its products, investment philosophy, rigorous manager selection process, ongoing monitoring and risk management procedures.

Arrow Hedge Partners Inc. is a member of AIMA (Alternative Investment Management Association) and is a substantial co-investor in its own funds.

Arrow Hedge Partners Inc. is headquartered in Toronto, Canada, with sales offices in Vancouver, Calgary, Ottawa, Montreal and Geneva. Arrow Hedge currently manages over CDN$500 million on behalf of Canadian retail and institutional investors.

About Schultze Asset Management Schultze Asset Management is an asset management company based in New York. The key personnel for the firm include Mr. George Schultze and Mr. Edward Petit III. Mr. Schultze is a Managing Member and Portfolio Manager of SAMCO. He was also one of three portfolio managers at MD Sass/Resurgence (Sass), a USD 13 billion hedge fund, between 1996 and 1998, which co-managed the firm's USD 1 billion distressed securities portfolio.

Mr. Petit is a Managing Director of Schultze responsible for fixed income trading, business development and investor relations. Mr. Petit has been servicing institutional clients in the fixed income area for over 16 years.

-0- 07/20/2005 /For further information: on Arrow Hedge Partners and its products can be found on www.arrowhedge.com, the company's website, or contact: Mr. Jim McGovern, Managing Director, CEO, Arrow Hedge Partners Inc., (416) 323-0477, ext. 222, jmcgovern(at)arrowhedge.com; Mr. Mark Purdy, CFA, Managing Director, Portfolio Management, Arrow Hedge Partners Inc., (416) 323-0477, ext. 223, mpurdy(at)arrowhedge.com/ CO: Arrow Hedge Partners Inc.