Cumberland Private Wealth Management announces launch of Market Neutral Fund
(Cumberland Market Neutral LP)

Innovative investment strategy designed to produce positive returns in volatile markets,
put the hedge back in hedge funds

TORONTO, Nov. 2 /CNW/ - Cumberland Private Wealth Management Inc., a leading independent investment firm that provides discretionary investment management services for high-net-worth individuals, today launched a new Market Neutral Fund offering investors a way to diversify their wealth portfolios with a strategy uncorrelated with the ups and downs of the markets. Focusing on the technology sector, Cumberland's Market Neutral Fund is designed to earn a positive absolute return while limiting market and liquidity risks by exploiting pricing inefficiencies across public markets, primarily NYSE-listed and NASDAQ-listed equity securities. The fund is intended for high-net-worth individuals, financial advisors, family offices, and smaller institutional investors.

"A Market Neutral Fund can be a difficult concept to grasp for some investors traditionally used to making money when markets go up, and losing when they go down," said John Wilson, Chief Investment Officer, Cumberland. "However investors today are looking for alternatives in a volatile market that has limited yield — Market Neutral Funds can play a vital role in optimizing overall portfolio risk, while enhancing long term portfolio returns."

Wilson, who ran a similar successful Market Neutral Fund before being named Cumberland's Chief Investment Officer in 2009, says such funds can be set up in various asset classes including equities, bonds or futures as long as the strategy is able to identify and predict a significant market inefficiency.

Cumberland believes equities in the technology sector have several characteristics that lead to highly inefficient pricing which the Cumberland Market Neutral strategy is designed to exploit:

• Accelerating pace and complexity of innovation leading to constant cycles of renewal and obsolescence
• Disruptive new technologies which often cause significant market share changes within an industry
• Many barriers to investing such as number and complexity of acronyms, evolving and competing technology standards, among others

Cumberland's Market Neutral Fund uses offsetting long and short positions to reduce overall market risk as well as specific sector and industry risks. The strategy also protects against liquidity risks through being primarily weighted in larger corporations with over U.S. $500 million market capitalization.

Investment Process

Cumberland's Market Neutral Fund employs a rigorous investment philosophy that has defined processes for idea generation, trading, portfolio balancing, risk management and performance reporting and analysis. Many of these processes are automated on server-based systems in order to ensure adherence and remove human error.

Top down analysis is used to set sector rankings while fundamental bottom-up analysis and a proprietary security selection model are used to make individual security selections. The investment portfolio is balanced to maintain pair, sector and overall portfolio hedge ratios daily.

An offering memorandum is available by contacting Cumberland Private Wealth Management. For more information visit: www.cumberlandprivate.com.

About Cumberland Private Wealth Management

Cumberland Private Wealth Management Inc. is a leading independent investment firm that provides discretionary investment management services for high-net-worth individuals, their families and foundations with $1 million or more in investable assets. Cumberland's investment mandates are centered on building and preserving our clients' financial wealth. Founded in 1997, the firm is privately owned by its employees and headquartered in Toronto, Canada, and is a member of Canadian Investor Protection Fund ("CIPF").

Sidebar for media - Key Attributes of a good Market Neutral Strategy

• Positive, absolute returns
• Returns not correlated with market returns
• Limits to magnitude and frequency of any down months
• Low Correlation to other portfolio strategies
• Lower Volatility (than market)
• Liquidity (ability to withdraw funds)
• Scalability (ability to invest meaningful capital)

For further information:

Kirsten Walkom
MAVERICK Public Relations
[email protected]
416-640-5525 x 237