Arrow launches a new income fund advised by U.S. credit specialist, Raven Rock Capital LLC.

The Raven Rock Income Fund, advised by the managers of Raven Rock Capital LLC, targets investors seeking to complement or diversify a core fixed income portfolio.

TORONTO, Sept. 8, 2011 /CNW/ - Arrow Capital Management Inc. today announced the launch of the Raven Rock Income Fund.

The Fund will invest primarily in U.S. convertible and high yield fixed income securities. The Fund's investment objective is to generate strong risk-adjusted absolute returns with low volatility. The fund aims to perform through the market cycle. Fund returns will come from both income and capital appreciation.

Arrow Capital completed its due diligence process on this manager and allocated to this fund through their Arrow Diversified Fund and Arrow Enhanced Income Fund in early 2010.  The Fund is advised by an investment team led by Nate Brown, Guy Caplan and Bobby Richardson of Raven Rock Capital LLC, and is now available for purchase on a standalone basis by accredited investors.

The fund manager combines fundamental credit research with active security selection to source attractive opportunities within the corporate credit markets. The investment team targets positions with the potential to profit from special events. The portfolio is dynamically allocated to two strategies: Long/Short Directional Credit and Relative Value Credit. The Directional Credit component employs fundamental research to analyze credit quality, and then optimal security within the capital structure is selected to maximize risk-adjusted returns.  The Relative Value component profits from inefficiencies in the pricing of two similar securities, which includes strategies such as convertible arbitrage, capital structure arbitrage, and industry pairs trades.

The Raven Rock Income Fund offers a seasoned investment team with over 60 years of combined experience managing institutional assets investing in fixed income securities. The team's has a successful 12 year history of working together through multiple market cycles. The investment strategy's dynamic allocation process does not tie the portfolio to any single asset class, giving the managers flexibility to pursue the best opportunities in the marketplace.

The Fund will pay a tax-efficient monthly distribution to unitholders of $0.055 per unit, which is the equivalent to a little over a 6% current yield.

About Capital Management Inc.

Arrow Capital Management is an employee-owned company, founded in 1999 by James McGovern. Arrow's expertise in active portfolio management and manager selection is evident in its strong, diverse platform, which provides our clients with access to a global selection of outstanding alternative investment funds. One of the most experienced alternative investment fund companies in Canada and with an extensive network of global resources, Arrow has successfully navigated its clients through all types of market conditions. Arrow Capital Management is a founding member of AIMA Canada (Alternative Investment Management Association) and is a substantial co-investor in its own funds. Arrow Capital Management is based in Toronto, Canada, with sales offices in Vancouver, Calgary, and a joint venture relationship in London, UK with Generation Asset Management (UK) Limited. Arrow Capital Management currently oversees more than CDN$1.2 billion on behalf of high net-worth and institutional investors globally.

About Raven Rock Capital LLC.

Raven Rock Capital LLC is based in Chapel Hill, North Carolina.  The three managing partners have worked together since 1999 and have a successful 12 year institutional track record, having previously managed over $3.5 billion at a convertible arbitrage hedge fund.

Nate Brown, Head Trader and Portfolio Manager, was the Head Trader and Senior Portfolio Manager for the Argent Funds Group where he was responsible for portfolio strategy, trading ideas and trade execution for all of the Argent portfolios. As a Managing Director, he was responsible for managing the operations, accounting, and information technology departments of the firm.

Guy Caplan, Chief Risk Officer and Portfolio Manager, was the Portfolio Manager for the Argentum Multi-Strategy and Argent Funds Group's Low Leverage products. As a Managing Director, he was responsible for the marketing function and business development. Guy is originally from Vancouver and spent much of his professional career working in the Canadian financial industry.

Bobby Richardson, Head of Research, was the Director of Research and Portfolio Manager of the Classic products for the Argent Funds Group. He was responsible for fundamental credit and equity analysis for the funds. As a Managing Director, he was responsible for managing the operations, accounting, and information technology departments of the firm.

SOURCE Arrow Capital Management Inc.

For further information:

Arrow Capital Management Inc.: 
Mark Purdy (416) 323-0477 ext 223
mpurdy@arrow-capital.com
   

Rob Parsons (416) 323-0477 ext 235
rparsons@arrow-capital.com


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