Globe and Mail – On monday, when North American markets cratered, was not the most auspicious day to launch a closed-end fund of hedge funds, but Star Hedge Managers Corp. has been quietly trading since then.
This fund invests in the hedge funds or portfolios run by Eric Sprott of Sprott Asset Management Inc., Rohit Sehgal of Dynamic Mutual Funds Ltd. and Normand Lamarche of Front Street Capital.
Star Hedge Managers, which closed down 39 cents yesterday at $9.35 on the Toronto Stock Exchange, raised $75-million through an initial public offering of $10 a unit. It had targeted raising $500-million.
"I’m surprised" that it did raise $75-million given the tough market environment, said Phil Schmitt, chairman of the Canadian unit of the Alternative Investment Management Association. "There’s still a market for quality managers."