WEST PALM BEACH, FL (HEDGECO.NET) – The Preservation Trust hedge fund company has announced plans to open additional capacity through the launching of a new hedge fund vehicle this summer accordingto a new press release. Preservation is one of the largest hedge fund companies in Canada; this month marks the celebration of the founding of the firm. The asset manager operates a long/short,equity hedge fund, focusing on Canadian companies.
Veteran fund manager, J C Clark, who is also the CEO of the company, manages the fund. Mr. Clark said, �Our focus on both Canadian and US equities has produced solid returns over the past 5 years. Now, larger investors have asked for a fund focused exclusively on Canadian equities.� Preservation Trust has an impressive compounded annual return of 23.6%, according to the press release.
Clark also disclosed that many US long/short managers are seeking alternatives to the saturated market at home. He said, �The number of US long/short managers has grown dramatically over the past few years and the market is now becoming saturated. As a result, funds of funds and large institutional investors are now seeking a new source of alpha in the form of Canadian hedge funds.�
The new fund soon to be launched is called Loyalist Capital, and according to the portfolio manager, Colin Stewart, �Canada is an excellent place to run a hedge fund. The market is comparable to Hong Kong or Germany, yet there are very few hedge funds here. This leads to pricing inefficiencies you just don�t see in other markets,� Stewart said.
Stewart further disclosed that the new vehicle �has been beta-tested with approximately US $10 million of internal capital for the past 2 years, generating 11% per annum. Over the past 12 months, the fund produced a return of 15.7% with an annualized standard deviation of 5.2%,� according to Stewart.
The new Loyalist hedge fund will be domiciled in Barbados and marketed to US and other offshore institutional investors by Alexander Ernest Ltd. Minimum investment in the new fund is US $5 million, according to the press release. The new strategy will be capped at US $150 million. Clark added, �We are very sensitive to the liquidity constraints facing our Canadian strategy and will recommend the fund be closed before this point if we believed returns were being eroded by excess capital inflows,� he explained.
J. C. Clark is one of the oldest and largest hedge fund managers in Canada, overseeing about US $225 million in managed assets. Contact should be directed to Christopher Holt.
JCClark (416) 361-2203 [email protected]
Paul Oranika
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HedgeCo.Net
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