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Portfolio > Alternative Investments > Hedge Funds

Arrow Hedge Sells New Hedge Fund Notes

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TORONTO (–Remolding its multi-strategy offering once again, Arrow Hedge Partners Inc. this week launched their Arrow Multi-Strategy Notes Series I for Canadian retail investors.

The notes’ performance is linked to the Arrow Multi-Strategy Hedge Fund, which is a fund of funds that currently invests in 16 hedge fund managers. Upon the introduction of the note format, the firm will add on four additional hedge fund managers. The fund is also offered as an open-end trust and a registered savings plan fund Previous HedgeWorld Story.

The fund invests across nine investment strategies that include: long/short equity; equity market neutral; high-yield hedge, risk arbitrage; convertible arbitrage; fixed-income arbitrage; distressed securities; managed futures; and global macro.

BNP Paribas SA will provide investors with the principal repayment guarantee at maturity plus any appreciation in the value of the fund. BNP Paribas (Canada) is issuing the notes that are linked to the Arrow multi-strategy fund’s absolute return objective of 7% to 9% after fees.

The first note series is expected to close in early to mid-June, gathering between C$30 million to C$50 million (US$21 million to US$35 million), said Jim McGovern, managing director and chief executive of Arrow Hedge. The multi-strategy investment pool now totals C$20 million and is expected to grow to total between C$70 million and C$75 million thanks to high-net-worth and institutional investor activity.

A second series of notes linked to the fund could come in the fall, Mr. McGovern said. Arrow Hedge now has about C$130 million in retail and institutional client assets.

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