Arrow Hedge Partners launch Japan Long/Short Fund

Date: Friday, December 16, 2005
Author: Canada News Wire

TORONTO, Dec. 16 /CNW/ - Jim McGovern, Managing Director and CEO of Arrow
Hedge Partners Inc. of Toronto, Canada is pleased to announce the launch of
the Arrow Japan Long/Short Fund, which is now available for purchase.
    The Arrow Japan Long/Short Fund is a long/short equity hedge fund focused
on generating absolute returns by investing in Japanese stocks. The Fund is
advised by Invicta Investment Management based in London, UK with a research
office in Tokyo, Japan. The portfolio is relatively concentrated with 70 to 90
positions held at any one time.
    "We believe that investors who have exposure to Japan with a fund that
can actively manage market fluctuations should benefit over the next few
years. As such we are very excited that we are able to extend our investment
with Invicta Investment Management to offer a single manager absolute return
fund to our clients," Mark Purdy, Managing Director and head of Arrow's
Investment Management team explained.
    "The equity long/short strategy is uniquely well positioned to benefit
from the macro economic and corporate changes in Japan. From a risk-reward
standpoint, Japan's deep, liquid markets provide a vital opportunity set. A
hedged approach can provide a portfolio with the necessary exposure on the
long side with respect to renewed domestic growth, as well as on the short
side with exposure to industries that fail to embrace corporate change. It
also explicitly manages currency risk, which can potentially dominate security
selection decisions if left unmanaged," Mr. Purdy concluded.

    About Invicta Investment Management

    Ramiz Hassan, Fund Manager, holds an economics degree from The London
School of Economics, and is a Chartered Accountant and CFA. He spent four
years with Deloitte and Touche, three years with JP Morgan in London, and five
years as a Japanese equities investment advisor with Orbis Investment Advisory
in London, and one year with Hermes Pensions Management as a Japanese equity
long short fund co-manager. Orbis' Japanese funds won Micropal awards during
the period when Ramiz was an analyst with the group.
    Simon Donne, Fund Manager, graduated from Cambridge University in 1992
with a mathematics degree. He worked for 2 years with Guinness Flight covering
Japan and Australia. In 1995, he joined Threadneedle as a Japanese fund
manager, managing over US$ 1 billion on the Japanese desk. During 8 years with
Threadneedle, the Threadneedle Japan Growth Fund was awarded an A rating by
S&P/Micropal. He was also in charge of economic forecasting for Japan.
    Sanjai Dhar, Fund Director & Risk Manager, graduated from Queens'
College, Cambridge with a degree in Chemical Engineering. Sanjai is one of the
founding directors of Invicta Investment Management. He spent 8 years with
Nikko Securities in New York and London as a Japanese equities salesman before
moving to Credit Lyonnais in London. In 1995, Sanjai established Atherstone
Investment Partners which was the first offshore convertible bond private
placement boutique specializing in Japanese equity linked securities. Sanjai
is the Risk Manager of the Invicta Chikara Japan Fund and is actively involved
in its marketing.

    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, Montreal and Geneva. Arrow Hedge currently
manages over CDN$550 million on behalf of Canadian retail and institutional
investors.

For further information: More 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@arrowhedge.com; Mr. Mark Purdy, CFA, 
Managing Director, Portfolio Management, Arrow Hedge Partners Inc., 
(416) 323-0477, ext. 223, mpurdy@arrowhedge.com