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Canadian Manager Offers Principal-Protected Note on Long/Short Fund

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TORONTO (–Arrow Hedge Partners Inc.’s latest notes series will contain its first principal-protected note for Canadian investors.

Wrapping an extra security blanket around its funds of funds, Arrow Hedge plans to sign up investors through March 24. The Arrow Multi-Strategy Notes Series 6 and the Arrow Global Equity Long/Short Notes Series 1 both give investors the profits on the upside with security measures stipulating principal repayment guarantee at maturity.

BNP Paribas is providing the guarantee, while Arrow Hedge is handling the management of the underlying funds.

According to officials at the C$400 million (US$333 million) investment firm, the Arrow Global Equity Long/Short Series 1 notes are the first of their kind in Canada to offer performance linked to a portfolio of global long/short equity managers. The success of previous Arrow Multi-Strategy Note offerings led to the demand for an equity long/short offering that invests in the Arrow Global Equity Long/Short Hedge Fund, which is a pool of 13 equity long/short hedge fund managers.

The Multi-Strategy Notes are linked to the performance of the Arrow Multi-Strategy Hedge Fund, which is a low-volatility fund of funds invested in 20 to 25 hedge fund managers across numerous investment strategies.

Investors in either note will have the guaranteed principal repayment and will have a low minimum investment of C$5,000 (US$4,166), Arrow Hedge officials said.

Contact Bob Keane with questions or comments at: [email protected].


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