The Arrow High Yield Fund, advised by Barry Allan of Marret Asset Management Inc., which targets a high level of income while maintaining modest volatility levels, is scheduled to close fund-raising on June 30, 2010.
TORONTO, Feb. 16 /CNW/ - Arrow Hedge Partners Inc. announced a target closing date for the Arrow High Yield Fund of June 30, 2010 or target asset level of C$500M. The Fund, advised by Barry Allan of Marret Asset Management Inc., appeals to accredited investors who are moderately conservative and seek monthly income with low volatility.
"We have determined that it is in the best interest of our investors to cap the fund at the target of C$500M," says Mark Purdy, Managing Director and Chief Investment Officer of Arrow Hedge Partners Inc. "Over the past two-years the fund has grown about 40%, within this capacity target we are confident that we can continue to produce solid risk adjusted returns."
The target of C$500M is much larger than any of the other retail credit hedge funds in Canada and the strategy itself is not being closed. Arrow Hedge feels that this is an appropriate size for their managed account to produce the highest returns for clients invested in the fund.
The investment objective of the Fund is to achieve a high level of income with the potential for capital gains, while maintaining modest volatility. The fund invests primarily in Canadian high-yield corporate bond issuers and is able to create long positions in the debt of a company and a short position in the equity of a company. "Over the long term the fund has outperformed the market," says Barry Allan, Portfolio Manager & CEO of Marret Asset Management Inc. "And at the same time we've taken a lot less risk and produced far less volatile returns."
"Arrow focused mainly on credit in 2009," claims Purdy. He goes on to add, "It was a mainly beta driven call that worked very well with credit spreads falling fast from crisis levels. We are generally constructive on credit in 2010 but managers will have to be more nimble and that could favour a more trading-oriented approach, which suits our current credit allocations."
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 funds of funds to a wide range of clients, including family offices, institutions, pension funds and high net-worth individuals. 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$800 million on behalf of high net-worth and institutional investors globally.
Marret Asset Management Inc.
Marret Asset Management Inc. is a credit fixed income manager. The firm advises on over $4.1 billion in high yield and investment grade corporate debt assets for institutional and retail clients. The firm was founded in Toronto by Barry Allan and began operations in late 2001. Marret is 100% employee-owned and is committed to maintaining significant employee ownership in order to assemble the most qualified credit team and to achieve the best possible returns for clients. Marret also sub-advises the Arrow Resource Yield Fund for Arrow Hedge Partners Inc.
SOURCE ARROW HEDGE PARTNERS INC.
For further information: For further information: Arrow Hedge Partners Inc.: Jim McGovern, (416) 323-0477 ext 222, firstname.lastname@example.org; Mark Purdy, (416) 323-0477 ext 223, email@example.com