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Q U A R T E R LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N G JANUARY 2014 VOLUME 14 ISSUE 1
HEDGE FUND FOURTH QUARTER PERFORMANCE REPORTRADIUS 2014 CALENDAR OF EVENTS
CATALYST FINANCIAL:SURVEY OF ALLOCATORS’INVESTING TRENDS 2014
@RadiusFE
In step with
market needs
kpmg.ca
AIMA and KPMG have teamed up and conducted quantitative and qualitative research with 150 hedge fund managers around the world over the period from October 2011 to February 2012. The results of this survey indicate that the changes brought on by the institutionalization of the alternative fund industry have been underestimated.
KPMG is focused on providing informed perspectives to help navigate challenge and take advantage of opportunity – from value creation to realization – keeping in step with market needs.
© 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
PETER HAYESPartner, National Director, Alternative Investments T: 416-777-3939E: [email protected]
JAMES LOEWENPartner, National Asset Management LeaderT: 416-777-8427E: [email protected]
Agree that the demands of regulatory compliance have increased since 2008.
80%Have had to increase staff headcount in order to increase transparency.
32%Say investors have become more demanding in terms of due diligence since 2008.
88%
Volume 14 Issue 1 - January 2014 1
Year End Highlights
• Total assets in the hedge fund industry increased by almost 13% during the year to breach theUS$2.0 trillion mark
• Hedge funds realised their best year of performance-based gains since 2010, raking in US$100 billion during the year, with long/short equities strategies accounting for almost half of this gain
• Net asset allocations to hedge funds stood at US$130 billion in 2013, with long/short equities managers witnessing net inflows of US$82.2 billion during the year
• European hedge fund managers were up 8.77% in 2013 with net asset inflows for the year standing at US$60.2 billion – the highest level on record
• North American long/short equities hedge funds ended the year with gains of 18.48%, with 20% of these hedge fund managers outperforming the S&P500 Index by an average of 20.52% during the year
• Asian hedge funds outperformed their global peers and were up 15.86% in 2013, with fund managers recording net asset inflows of US$11 billion during the year – the highest level on record since 2007
• Japanese hedge funds remained ahead of other regions, up 26.77% with pure Japan mandated funds recording net inflows of US$700 million since June 2013
• Greater China focused hedge funds were up 19.39% in 2013, outperforming the Hang Seng Index by more than 16%
• Distressed debt hedge funds have delivered the best returns among all strategies and were up 17.95% in 2013
And a couple newsworthy items to start the year:
Eric Sprott, founder and chairman of Toronto-based Sprott Inc.. is among the new appointments to theOrder of Canada recently announced by the Governor General of Canada. Mr. Sprott was appointed asa Member of the Order of Canada for his contributions as a philanthropist, notably in the areas of healthcare, education and international development. "Eric and his family are committed philanthropistswho give back to the community through their generous support of a number of worthy causes,"said Peter Grosskopf, CEO of Sprott, in a release.
The Alternative Investment Management Association (AIMA), the global hedge fund industry association, hasannounced that Jack Inglis will take over as CEO of the organisation on 1 February 2014. Mr Inglis replacesAndrew Baker, AIMA’s CEO since January 2009, who announced last year that he would be stepping down.
“This is an exciting time to be joining AIMA and I am very much looking forward to building on Andrew’soutstanding legacy,” said Mr Inglis. “AIMA has been able to forge excellent working relationships withregulators globally, and I intend to continue that work in the spirit of constructive co-operation that hasalways defined AIMA’s regulatory engagement. We will also strengthen our engagement with investors inhedge funds as we look to build on the very good work to date of the AIMA Investor Steering Committee,a group of leading institutional investors from around the world. Mr Inglis was previously with Barclayswhere he was a member of the Global Executive Committee for Prime Services. Prior to that he was theCEO of Ferox Capital between 2007 and 2010. He also spent 16 years at Morgan Stanley where he wasCo-Head of European Prime Brokerage from 2003-2007.
Wishing you a Happy New Year and all the best in 2014.
Terry KrowtowskiCanadian Hedge Watch Inc.
O P E N I N G S T A T E M E N T
J A N U A R Y Q U A R T E R L Y
Solutions that fit
CAPITAL RAISING • MERGERS & ACQUISITIONS • RISK MANAGEMENT • RESEARCH • INSTITUTIONAL SALES & TRADING
BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. and Bank of Montreal Ireland p.l.c., and the institutional broker dealer businesses of BMO Capital Markets Corp., BMO Nesbitt Burns Trading Corp. S.A., BMO Nesbitt Burns Securities Limited and BMO Capital Markets GKST Inc. in the U.S., BMO Nesbitt Burns Inc. in Canada, Europe and Asia, BMO Nesbitt Burns Ltée/Ltd. in Canada, BMO Capital Markets Limited in Europe, Asia and Australia, BMO Advisors Private Limited in India and Bank of Montreal (China) Co. Ltd. in China. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. ®† Registered trademark of Bank of Montreal in the United States and Canada.
As a leader in the prime brokerage marketplace, we offer a complete range of services, customized to meet your individual needs. With wide-ranging capabilities, we provide effective support to clients of all sizes. To learn more about how we can help you succeed, contact us at [email protected]
Volume 14 Issue 1 - January 2014 3
Performance SummaryDec. 2013
YTD
CHW HEDGE FUND INDICES (CHW-HF) % %
CHW-HF Composite Index 0.33 -3.42
CHW-HF Equity Hedged Index 0.25 -3.72
CHW-HF Notes Index 0.21 4.60
CHW-FOHF Index 1.03 0.32
Scotia Capital Canadian Hedge Fund Performance Index
SC CDN HF Index Asset Weighted 1.01 1.40
SC CDN HF Index Equal Weighted 1.22 4.38
Dow Jones Credit Suisse Hedge Fund Indices
Dow Jones Credit Suisse Hedge Fund Index 1.19 9.73
Convertible Arbitrage 0.53 6.03
Emerging Markets 1.28 8.81
Event Driven 1.61 15.47
Fixed Income Arbitrage 0.18 3.80
Global Macro 0.71 4.32
Long/Short Equity 1.80 17.73
Managed Futures 0.10 -2.56
HEDGE FUND INDICES
Hennessee Hedge Fund Index 1.52 12.86
HFRI Fund Weighted Composite Index 1.09 9.24
HFRI Equity Market Neutral Index 0.43 6.65
HFRI Fund of Funds Composite Index 1.19 8.79
MARKET INDICES
Dow Jones Global Index (C$) 1.80 29.49
Dow Jones Global Index (U$) 1.65 20.78
Dow Jones 30 Industrial Average (US$) 3.05 26.50
NASDAQ Composite Index (C$) 3.03 48.29
NASDAQ Composite Index (US$) 2.88 38.32
S&P 500 Total Return Index (C$) 2.69 41.93
S&P 500 Total Return Index (US$) 2.53 32.39
S&P/TSX Composite Index Total Return 1.69 9.56
Contact Information
Canadian Hedge Watch Inc.20 Toronto St., Suite 820, Toronto, Ontario M5C 2B8
tel: 416.848.0277 toll free: 1.877.249.9249 fax: 416.848.0278Media, Advertising & Editorial: [email protected]
Subscriptions: [email protected]
Canadian Hedge Watch is published 11 times per year byCanadian Hedge Watch Inc. We welcome articles, suggestions
and comments from our readers. All submissions become theproperty of Canadian Hedge Watch Inc., which reserves the right
to exercise editorial control in accordance with its policiesand educational goals.
DisclaimerCanadian Hedge Watch (CHW) presents news, information and data onboth Canadian and Global alternative investment activity. The informationpresented is not to be taken as an endorsement, investment advice or apromotion for the organizations and individuals whose material andinformation appears in this CHW publication or on the Canadian HedgeWatch website.
The material presented, separate from paid advertisements, is for the solepurpose of providing industry-specific information. As with all areas offinancial investing, CHW recommends strongly that readers shouldexercise due diligence by consulting with their investment advisor or othertrusted financial professional before taking any action based upon theinformation presented within these pages.
Editorial and Sales
EditorTerry Krowtowski
Sales DirectorJudy Street
Art DirectorVic Finucci
Online DeveloperFerenc Schneman
QUARTERLY REVIEW OF HEDGE FUNDS & ALTERNATIVE INVESTING
JANUARY 2014 VOLUME 14 ISSUE 1
Exchange Traded Forum (ETF) Monday, March 31, 2014 ~ Toronto Canada�s leading event dedicated to Exchange Traded Products. Hear from leading financial industry professionals and industry experts who will provide valuable insights into the issues and trends that matter most to Canada�s financial professionals. Join us for presentations, advisor/client-focused sessions, roundtable discussions, networking events and knowledge sharing critical issues facing the financial industry. This is an opportunity for IIROC based financial advisors and also Portfolio Managers to gather together in a great location to network, learn from each other, and participate in the numerous educational opportunities that fill the agenda.
ExchangeTradedForum.com
Radius Practice Management & Retirement Summit (RPMRS) Thursday, May 8, 2014 ~ TorontoRPMRS offers proven practice management tools and education to help enhance business-buildingefforts, increase efficiencies within your practice, and grow revenue to sustain your practice. This extensive one day event delivers a focused set of tools and resources from select sponsor partners that include products, retirement coaching and planning, current economic perspectives, information on advisor support programs and tools for your business and development. This is an opportunity for financial advisors to gather together in a great location to network, learn from each other, and participate in the numerous educational opportunities that fill the agenda.
RadiusPMRS.com
Niagara Institutional Dialogue (NID)Mon., June 9 to Wed., June 11, 2014 ~ Niagara-on-the-LakeNiagara Institutional Dialogue is an exchange of ideas, knowledge and practices for Canadian Institutional Investors. A selected group of senior representatives from Canadian pensions and family offices will participate in three days of informative discussions, education and networking. This confidential closed-door event is reserved for select industry participants. InstitutionalDialogue.com
Exchange Traded Forum (ETF West) Tuesday, June 17, 2014 ~ VancouverCanada�s leading event dedicated to Exchange Traded Products. Hear from leading financial industry professionals and industry experts who will provide valuable insights into the issues and trends that matter most to Canada�s financial professionals. Join us for presentations, advisor/client-focused sessions, roundtable discussions, networking events and knowledge sharing critical issues facing the financial industry. This is an opportunity for IIROC based financial advisors and also Portfolio Managers to gather together in a great location to network, learn from each other, and participate in the numerous educational opportunities that fill the agenda.
ExchangeTradedForum.com
World Alternative Investment Summit Canada (WAISC) Mon., Sept. 15 to Wed., Sept. 17, 2014 ~ Niagara FallsWAISC is in its 12th year and is Canada�s largest gathering of alternative and exempt market investmentprofessionals and service providers. Featuring panel discussions with top-level Canadian and international speakers, fund managers and leading service providers, WAISC brings together over 300 delegates to explore every side of alternative investments. WAISC is a popular annual event that is not to be missed. waisc.com
World Alternative Investment Summit Canada (WAISC West) Wednesday, November 12, 2014 ~ VancouverWAISC West is in its 3rd year and is Canada�s largest gathering of alternative and exempt marketinvestment professionals and service providers. Featuring panel discussions with top-level international speakers, fund managers and leading service providers, WAISC brings together over 200 delegates to explore every side of alternative investments. waisc.com
Radius Financial Education (Radius), a division of CHW Inc., has been producing high level conferences within the financial services sector in Canada for over 12 years. As Canada�s leading producer of conferences within the financial sector, Radius events focus on education and networking through an exchange of independent ideas and information, allowing our delegates to be leaders in their chosen fields. Our top-down approach to the agenda enables us to deliver relevant, thought-provoking, cutting edge, and sometimes controversial insight in a stimulating manner. We understand the importance of learning from the best. Each conference offers a well balanced speaker composition consisting of insight from authors, educators, economists, regulatory bodies and industry leaders from around the globe.
EXCHANGETRADEDFORUM
ExchangeTradedForum.com
RadiusPRMS.com
InstitutionalDialogue.com
EXCHANGETRADEDFORUM
ExchangeTradedForum.com
World Alternative InvestmentSummit Canada
WAISC
waisc.com
World Alternative InvestmentSummit Canada
WAISC
waisc.com
Volume 14 Issue 1 - January 2014 5
FEATURES
Radius 2014 Calendar of Events 4
Catalyst Financial: 6Survey of Allocators’ Investing Trends 2014
DATA
Hedge Fund Performance Tables Q4 14
Graphs and Tables Related to Asset Size 24and Distribution of Canadian Hedge Funds
Number of Hedge Funds Reporting 24
Number of Hedge Fund Managers Reporting 25
Hedge Funds Reporting Assets 26
Hedge Funds Assets Under Management 27
Hedge Fund Asset Change 28
Distribution of Canadian Hedge Funds by Asset Size 29
Reported Canadian Hedge Fund Assets by Fund Manager 30
Average Asset Size of Canadian Hedge Funds Over Time 31
Monthly Average Return 32
Distribution of Returns in the most recent Quarter 33
Distribution of Monthly Average Returns 34
Quarterly Average Returns 37
12-month Rolling Standard Deviation 38
Performance Comparison: 39
Canadian Hedge Funds vs. Major Indices
Commentary 39
Comparison of Returns 40
Efficiency and Calendar Year Returns 40
Correlation Matrices 42
Canadian Hedge Fund Indices – December 2013 45
C O N T E N T S
J A N U A R Y Q U A R T E R L Y
@RadiusFE
www.canadianhedgewatch.comXX
Volume 14 Issue 1 - January 2014 XX
Carl Berg, Catalyst Financial Partners Susan Weerts, [email protected] [email protected]+1 212 966 2993 +1 732 766 5678
Catalyst Financial Partners LLC118 E 28th Street, Suite 314, New York, NY 10016Tel: +1 212 966 2993 Email: [email protected] www.catalystforum.com
Survey of Allocators� Investment TrendsJanuary 2014
Carl Berg, Catalyst Financial Partners, and Susan Weerts, Contributor at Seekingalpha
Scope of Survey
In our pursuit to understand, to see what works � and does not work, and what lies ahead, we now want again take the pulse of what allocators currently think of the industry.
We think this short survey is especially interesting, since it not only explores trends within the hedge fund industry and across time, but also investigates how compelling hedge funds are across different products.
We conducted similar surveys in May 2010 and January 2013, and we compare some of those answers with this survey to see changes through time.
Executive Summary
In 2014, investors continue as last year to pay more attention to a fund�s portfolio characteristics than performance. This will allow them to discern inherited risks and systemic ambiguities. This also explains why strategies that are run in a non-discretionary fashion seem to be, as a general observation, more attractive than discretionary.
Investors also prefer funds with more friendly fees and investor terms. This could be expressed in the many types of share classes and discounts that are now offered based on size of investment, lock-up accepted, and maturity of the fund.
Private Equity is the strongest substitute. There is also an increased interest in holding cash, which could explained by profit taking motives or to have cash ready for opportunistic investing in a growth cycle.
Going into 2014, within the hedge fund space, L/S Equity is with a good margin the most preferred strategy destination, followed by Event Driven and Emerging Markets. This continues the drift into equity orientated strategies that took off early 2013.
www.canadianhedgewatch.com8
Survey of Allocators� Investment TrendsJanuary 2014
Survey Results
1. In 2014, would you consider allocating to hedge funds?
Allocation appetite appears strong. Most of the allocators indicate that they are looking to make investments to hedge funds. Only a small portion of the investors takes a wait and see approach. However, no investors (of the group surveyed) dismiss hedge funds outright.
2. Within the hedge fund space, what sectors do you think would be especially interesting in 2014?
The top preference is L/S Equity strategies, followed by Event Driven. There is a trend to invest in funds that look at companies and their events, and general economic growth.
Mortgage, CTAs, Energy and Macro funds are shunned in place of funds betting on companies, while also major macro and political events are staying on the side lines.
Emerging Markets has dropped somewhat in appeal for 2014, but is still the third most interesting sector for the year.
0%
10%
20%
30%
40%
50%
60%
YES, but only if we find the appropriate manager
YES, now should be a good time
PERHAPS, but we'll wait and see how the year
develops
NO, too much admin, high fees and risks
involved
NO, we have been disappointed by the
industry
2013
0%
5%
10%
15%
20%
25%
30%
L/S Equity Event Driven Emerging Markets
Credit & Fixed Income
Macro Commodities, Energy
Mortgage Quant & CTAs Trade Finance
2013
Volume 14 Issue 1 - January 2014 9
Survey of Allocators� Investment TrendsJanuary 2014
3. What other investment opportunities would you consider, if unwilling or unable to consider hedge funds?
Private Equity is the most attractive investment substitute to hedge funds.ETFs and mutual funds are also an attractive substitute to hedge funds. However, they are measurably less interesting than a year ago.Cash is a stronger option compared to 2013. This might indicate that some investors are taking some cash off the table, either from profit taking, or to have cash in hand to be ready for opportunistic investing in a growth cycle.
4. What are the most important criteria for a hedge fund that you wouldconsider investing in?
Portfolio Characteristics (non-correlation, diversification, etc) is the top reason to allocate to hedge funds. How a product fits in their portfolio and core investment objective is of highest importance.The performance of hedge funds is the second top reason.However, Low fees & Attractive terms have become an important criterion for investors.
0%
5%
10%
15%
20%
25%
30%
35%
Private Equity Funds Direct Investments in Equity / Debt
ETFs and Mutual Funds
Cash Real Estate Funds 'Public' Hedge Funds
2013
0%
10%
20%
30%
40%
50%
60%
Portfolio Characteristics
Meaningful Performance
Appropriate AUM Size
Low Fees and Attractive Terms
Star Management Team
Long Track-record
2013
www.canadianhedgewatch.com10
Survey of Allocators� Investment TrendsJanuary 2014
5. What are the considerations that discourage you most in investing in hedge funds?
High fees and unfriendly investor terms keep allocators at bay. And arguably managers that are responding back with deals like Founders Shares, different rates for size of allocation or lock up, or reducing fees outright, are the ones that manage to be more successful in raising capital. Over 20% of respondents thought there are other, more appealing, investment opportunities than hedge funds. This is a large increase compared to 2013.In our 2010 survey, identifying the �Right� manager was allocators� top discouraging factor. For 2014, this has dropped to fourth place.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Too High fees, Unfriendly Investor Terms
Lackluster Performance There Are Other, More Appealing Investment
Opportunities
Difficulty in Selecting the 'Right' Manager
2013
Volume 14 Issue 1 - January 2014 11
Survey of Allocators� Investment TrendsJanuary 2014
What type of allocators participated in the survey?
Over 750 allocators were sent the survey in early 2014, of which a portion responded. The largest groups of responders were fund-of-funds and family offices.Eight types of allocators responded. There was no analysis made on the basis of allocator type; the survey responders were anonymous and the answers aggregated.
About the Authors Carl Berg runs Catalyst Financial Partners, an investor events firm for the private funds industry. The firm links alternative investment managers and investors together through investor events. It has established ourselves as one of the leading, independent cap intro providers. He also works with selected alternative investment firms in a capital raising capacity. [email protected]
Susan Weerts is a contributing writer to Seekingalpha.com since 2009. Current research areas are strategic trading games on ETF and its underlying index, market-neutral L/S strategy. She is also a consultant on China-related business. [email protected]
This survey is copyright Catalyst Financial Partners but we accept that the survey is being linked to or quoted as long as you refer to the source. For any comments or questions contact: Catalyst Financial Partners LLC 118 E 28th Street, Suite 314 New York, NY 10016 T: +1 212 966 2993 E: [email protected]
Fund-of-funds26%
Single/ multi-family office
16%
Investor Consultant
16%Wealth
Manager5%
Other Inst. Investor
16%
HNW Individual11%
Endowment5%
Pension Fund5%
www.canadianhedgewatch.comXX
HEDGE FUNDBRAZIL FORUMThe Hedge Fund Brazil Forum is Latin America’s most specialized international meeting of hedge funds, long only funds, Brazilian pension funds, Latin American pension funds, Latin American family offices and global endowments, foundations, sovereign wealth funds and pension funds. Now in its fourth year, the program delivers cutting edge due diligence for investors and managers alike.
April 3-4, 2014Copacabana Palace HotelRio de Janeiro, Brazil
For sponsorship opportunities, please contact:
William FrankHead of Hedge Funds [email protected] www.latinmarkets.org
4TH ANNUAL
DISCOUNTED REGISTRATION THROUGH
FEBRUARY 28th
Jorge O. MariscalCIO - Emerging MarketsUBS Wealth Management
Mauricio MarcelliniCIOFuncef
Michel Del BuonoGlobal Investment StrategistMakena Capital
David SaundersCEOK2 Advisors
Featured Speakers:
www.canadianhedgewatch.com14
H E D G E F U N D P E R F O R M A N C E (as of December 31, 2013)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Acorn Diversified Program 48.000 1.08 3.68 -3.86 8.65 8.65 1.12 2.58 13.08 -13.20 -17.77 13.59 14.46 0.01 8.55 0.01 0.28 95.83 50.00
Agilith North American Diversified Fund - 1.73 11.71 21.45 52.79 52.79 25.23 20.19 29.54 -19.60 -46.04 10.73 14.77 0.42 48.77 0.34 0.38 100.00 62.67
AlphaNorth Partners Fund Class A 70.000 -0.50 -0.81 10.71 -12.93 -12.93 -5.94 14.86 30.42 -25.16 -63.33 15.05 23.33 0.61 -18.76 0.35 0.07 56.75 58.90
AlphaNorth Partners Fund Class F - 8.70 16.24 43.14 13.02 13.02 2.61 19.89 43.14 -25.16 -63.33 22.91 25.25 1.38 -0.18 0.52 0.14 73.66 60.27
Amethyst Arbitrage Fund 105.800 0.10 -0.19 2.16 -2.47 -2.47 0.83 6.62 7.08 -6.18 -34.47 3.29 4.22 0.31 -5.44 0.82 0.26 94.31 74.26
Arrow Act II New Media Fund A 9.650 2.99 8.00 11.70 11.47 11.47 5.52 5.96 14.19 -16.38 -16.38 8.01 8.79 0.06 10.90 0.06 -0.24 100.00 54.29
Arrow Act II New Media Fund Class U - 2.92 7.78 11.32 10.86 10.86 - -0.53 11.32 -16.31 -16.31 7.97 - 0.06 10.29 0.07 -0.24 97.53 48.28
Arrow Act II New Media Fund F - 3.09 8.31 12.34 14.12 14.12 6.84 7.25 13.62 -15.87 -15.87 7.70 8.73 0.08 13.35 0.09 -0.20 100.00 59.15
Arrow Curvature Market Neutral Fund A 96.450 1.51 1.90 4.33 2.11 2.11 8.11 7.14 9.42 -2.65 -5.61 6.72 5.66 -0.15 3.54 -0.19 -0.33 100.00 68.29
Arrow Diversified Fund Class A 24.100 1.16 2.20 0.59 -0.47 -0.47 -4.85 1.29 0.97 -8.84 -20.17 2.68 3.74 -0.01 -0.37 -0.04 -0.31 81.59 58.57
Arrow Diversified Fund Class A U$ 93.620 1.13 2.09 0.33 -0.02 -0.02 -5.22 2.45 2.16 -9.72 -22.49 2.97 4.04 -0.09 0.84 -0.26 -0.45 79.13 57.25
Arrow Diversified Fund Class F C$ 75.750 1.24 2.51 1.27 0.93 0.93 -3.67 2.58 1.71 -8.54 -17.21 2.67 3.78 -0.01 1.03 -0.05 -0.32 86.13 60.47
Arrow Diversified Fund Class F U$ 75.750 1.22 2.40 0.98 0.77 0.77 -4.42 1.42 1.29 -9.11 -17.82 2.57 3.83 -0.02 0.96 -0.08 -0.30 84.15 57.39
Arrow High Yield Fund A C$ 202.170 0.73 3.25 1.40 2.02 2.02 1.68 5.44 6.96 -5.60 -9.27 4.38 4.82 -0.08 2.79 -0.15 -0.41 97.87 65.71
Arrow High Yield Fund A U$ 304.240 0.64 3.16 1.06 1.84 1.84 1.20 5.48 6.58 -5.89 -8.65 4.44 4.98 -0.07 2.51 -0.13 -0.35 96.75 68.75
Arrow High Yield Fund F 95.570 0.80 2.95 1.31 2.64 2.64 2.20 5.96 7.42 -5.83 -9.82 4.11 4.90 -0.07 3.31 -0.15 -0.43 98.84 67.44
Arrow U.S. Equity Income Fund A C$ 2.580 -0.89 -1.41 -5.16 -8.86 -8.86 -3.72 -11.25 7.47 -8.91 -71.45 5.96 8.05 0.11 -9.91 0.15 -0.08 40.87 43.75
Arrow U.S. Equity Income Fund Class U U$ 33.880 -0.97 -2.33 -6.22 -10.21 -10.21 -4.47 -9.22 7.19 -8.89 -69.19 5.42 7.98 0.09 -11.07 0.15 -0.13 47.41 46.25
Arrow U.S. Equity Income Fund F - -0.71 -1.69 -5.69 -8.08 -8.08 -2.88 -10.42 8.07 -8.19 -71.06 5.70 8.02 0.08 -8.85 0.12 -0.04 43.34 46.25
Aurion II Equity Fund 35.480 1.96 6.45 14.90 9.48 9.48 -3.99 6.76 14.90 -27.12 -41.81 8.43 14.00 0.73 2.50 0.75 0.35 84.18 62.11
Aurion II Equity Fund Series D 7.020 1.88 6.20 14.36 8.43 8.43 -4.98 3.51 14.36 -27.54 -42.05 8.43 13.98 0.73 1.45 0.75 0.35 81.76 59.76
Auspice Diversified Trust Class A - -0.38 1.63 -5.32 -6.24 -6.24 -7.08 -3.26 4.77 -13.21 -26.33 5.64 7.60 -0.09 -5.38 -0.13 0.11 74.87 50.98
Auspice Diversified Trust Class S - -0.38 1.62 -5.33 -6.27 -6.27 -7.13 -7.13 4.66 -13.21 -26.38 5.64 7.58 -0.09 -5.41 -0.14 0.11 74.82 44.44
Auspice Managed Futures LP. - -0.36 1.68 -5.23 -6.03 -6.03 -6.82 1.06 5.08 -13.44 -25.93 5.65 7.69 -0.09 -5.17 -0.14 0.12 75.32 49.46
Barometer Long Short Equity Pool Class A 6.660 5.14 13.61 15.61 28.54 28.54 -2.49 5.52 17.19 -19.19 -32.59 11.50 15.95 0.70 21.84 0.52 0.37 91.50 57.83
Barometer Tactical Exchange Traded Fund Pool - 2.24 10.13 7.31 16.37 16.37 0.46 4.22 8.44 -12.79 -18.59 9.09 10.12 0.36 12.93 0.34 0.41 94.73 55.00
Blackheath Futures Fund L.P. Class A 3.920 3.05 5.39 -16.54 -12.68 -12.68 -2.13 0.24 21.38 -18.69 -27.46 24.76 20.03 -0.57 -7.23 -0.20 -0.26 79.39 62.75
Blackheath Volatility Arbitrage Fund L.P. Class A 47.400 1.11 2.44 4.86 -3.11 -3.11 7.07 8.15 20.08 -9.46 -11.69 8.89 10.36 0.10 -4.07 0.09 0.37 96.58 53.85
BluMont Hirsch Performance Fund 31.200 2.86 10.27 15.33 26.18 26.18 7.78 10.20 22.15 -16.09 -41.19 4.50 9.31 0.34 22.93 0.66 0.64 100.00 63.10
Broadview Dark Horse LP 33.000 0.70 3.75 11.67 19.86 19.86 12.47 17.31 13.49 -5.14 -7.41 4.80 6.68 0.39 16.13 0.69 0.50 100.00 82.46
Brompton Energy Opportunities Fund Series 2009 8.680 4.64 3.61 9.38 -2.39 -2.39 -2.07 19.53 20.26 -22.80 -33.30 11.81 19.60 0.63 -8.42 0.46 0.14 75.30 60.00
Brompton Energy Opportunities Fund Series 2010 2.550 4.64 3.61 9.38 -2.39 -2.39 -10.07 -0.21 15.66 -22.80 -44.11 11.81 23.55 0.63 -8.42 0.46 0.14 63.10 53.49
Brompton Energy Opportunities Fund Series A 3.720 4.63 3.59 9.34 -2.43 -2.43 -3.66 3.09 15.64 -22.83 -52.21 11.80 19.11 0.63 -8.46 0.46 0.14 75.17 58.73
BSP Absolute Return Fund L/S Eq. US$ - 1.77 4.54 7.21 11.93 11.93 - 5.51 7.21 -5.35 -5.35 2.39 - 0.16 10.40 0.57 0.79 100.00 73.53
BSP Absolute Return Fund Multi Strat.US$ - 1.05 3.36 5.11 9.75 9.75 5.11 6.07 5.68 -4.61 -15.21 1.87 2.87 0.13 8.51 0.59 0.78 100.00 76.00
BT Global Growth Fund L.P. - 6.47 16.11 21.11 27.49 27.49 1.16 11.90 21.11 -17.23 -40.84 10.43 14.84 0.57 22.04 0.47 0.29 100.00 63.22
Burlington Partners Plus LP - 3.68 7.80 12.25 15.93 15.93 11.26 11.47 21.51 -13.48 -14.40 5.26 9.40 0.39 12.20 0.64 0.48 100.00 67.44
Burlington Partners1 LP - 2.48 5.03 6.75 9.23 9.23 7.23 5.42 12.70 -7.28 -13.27 4.11 5.56 0.26 6.74 0.55 0.53 100.00 63.55
Calrossie Partners Fund - 1.72 9.63 15.32 26.40 26.40 13.77 10.32 16.53 -10.26 -35.06 7.10 8.29 0.59 20.76 0.72 0.70 100.00 69.57
ChapelGate Credit Opportunity Fund Ltd. 453.239 0.97 3.39 7.86 17.35 17.35 15.73 14.56 12.94 1.12 -4.23 3.89 3.85 0.10 16.39 0.23 0.59 100.00 89.69
DKAM Capital Ideas Fund 107.000 3.48 20.53 33.42 51.63 51.63 20.36 28.87 33.42 -8.15 -11.98 9.95 11.41 0.31 48.66 0.27 0.32 100.00 76.19
Dynamic Alpha Performance Fund Series A 458.698 0.08 1.41 3.39 9.68 9.68 2.99 6.92 7.69 -8.29 -15.50 5.28 5.98 0.21 7.67 0.34 0.33 100.00 61.15
Dynamic Alpha Performance Fund Series F - 0.14 1.74 3.96 10.60 10.60 4.02 7.05 7.86 -7.60 -15.12 5.07 5.86 0.21 8.59 0.37 0.37 100.00 60.00
Dynamic Alpha Performance Fund Series FH U$ - 0.19 1.73 3.70 11.06 11.06 - 6.52 8.44 -0.62 -2.05 5.60 - 0.20 9.15 0.30 0.32 100.00 62.50
Dynamic Alpha Performance Fund Series H - 0.02 1.38 3.80 10.39 10.39 - 6.73 8.59 -1.25 -2.28 5.64 - 0.23 8.19 0.36 0.35 100.00 63.16
Dynamic Alpha Performance Fund Series T 7.930 0.10 1.42 3.27 9.50 9.50 2.93 4.61 7.51 -8.28 -8.47 5.19 5.98 0.21 7.49 0.34 0.32 100.00 55.56
Dynamic Contrarian Fund 9.164 4.72 6.85 5.28 5.09 5.09 -15.95 2.05 5.28 -39.54 -63.12 6.69 15.24 0.22 2.99 0.29 -0.33 58.63 52.48
Dynamic Income Opportunities Fund 43.682 1.52 7.74 12.15 15.84 15.84 7.61 8.36 12.15 -4.17 -29.50 6.36 6.77 0.55 10.58 0.74 0.83 100.00 67.42
Dynamic Power Hedge Fund Series C - -2.36 -5.87 -2.01 -17.84 -17.84 -21.80 11.52 13.30 -38.65 -79.61 14.07 23.57 0.77 -25.21 0.47 0.40 47.26 52.73
Exemplar Diversified Portfolio Series A 37.840 2.11 7.56 1.18 8.27 8.27 -3.53 1.77 7.30 -16.67 -21.78 8.34 10.57 -0.18 9.99 -0.19 0.40 85.13 53.57
H E D G E F U N D P E R F O R M A N C E (as of December 31, 2013)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Exemplar Diversified Portfolio Series F - 2.20 7.85 1.75 9.46 9.46 4.80 7.56 18.18 -9.36 -9.36 8.35 10.88 -0.18 11.18 -0.19 0.40 99.90 58.14
Exemplar Leaders Fund Series A 29.610 1.53 6.44 13.17 28.94 28.94 12.00 8.56 23.19 -13.65 -39.46 6.77 12.13 0.45 24.64 0.58 0.64 100.00 65.79
Exemplar Leaders Fund Series F 2.910 1.63 6.73 13.75 29.18 29.18 15.74 5.39 19.55 -13.19 -38.51 6.98 13.08 0.48 24.59 0.60 0.62 100.00 64.52
Fiera Global Macro Fund Class A 0.950 1.58 0.66 4.25 9.32 9.32 -0.06 -0.90 6.47 -6.83 -14.86 3.99 5.36 -0.01 9.42 -0.02 0.16 96.30 46.00
Fiera Global Macro Fund Class F 1.730 1.67 0.93 5.83 11.59 11.59 1.42 0.07 8.10 -6.29 -14.29 4.32 5.49 0.02 11.40 0.04 0.15 99.52 61.19
Fiera Long Short Equity Fund Class A - 3.85 9.34 11.37 24.26 24.26 - 10.53 11.62 -5.71 -5.71 5.20 - 0.05 23.78 0.08 0.07 100.00 73.68
Fiera Market Neutral Equity Fund Class A 34.240 1.92 1.77 2.44 6.70 6.70 -2.34 -0.13 11.26 -14.93 -21.62 3.62 6.75 -0.04 7.08 -0.11 -0.29 83.72 53.97
Fiera Market Neutral Equity Fund Class F 47.900 2.02 2.06 2.95 7.82 7.82 -1.29 1.34 11.79 -14.45 -20.34 3.62 6.74 -0.04 8.20 -0.11 -0.27 86.05 58.06
Fiera Tactical Bond Yield Fund Class A 67.355 0.44 -0.18 0.67 -1.26 -1.26 - 0.73 4.68 -1.92 -2.65 2.36 - 0.19 -3.08 0.68 0.49 98.01 63.33
Formula Growth Alpha II Fund Class B 41.900 0.34 4.05 8.53 12.30 12.30 - 8.49 26.68 -8.92 -17.40 5.45 - 0.31 9.33 0.50 0.29 99.49 62.50
Formula Growth Global Opportunities Fund Cl. S C$ 47.000 5.83 17.52 22.44 36.44 36.44 7.70 9.71 26.79 -19.87 -24.00 12.24 14.82 0.70 29.74 0.50 0.04 100.00 63.33
Formula Growth Hedge Fund Class F C$ 210.800 -0.16 5.10 7.89 15.13 15.13 7.59 17.47 28.39 -19.19 -20.73 6.64 14.45 0.39 11.40 0.51 0.05 99.84 64.93
Formula Growth Hedge Fund Class F U$ - -0.51 1.63 6.63 7.69 7.69 5.20 21.46 33.34 -24.33 -25.96 6.37 18.86 0.39 3.96 0.53 0.59 98.05 68.42
Friedberg Asset Allocation Fund 55.950 -2.35 -1.16 1.18 -8.92 -8.92 0.94 5.80 12.87 -11.55 -18.49 9.81 11.94 0.58 -14.47 0.51 0.60 82.48 61.22
Friedberg Global Macro Hedge Fund U$ 290.390 1.88 1.88 -24.75 -39.08 -39.08 -5.98 12.65 37.48 -41.98 -45.58 23.37 30.12 0.27 -41.66 0.10 -0.10 58.13 55.70
Front Street Canadian Energy Resource Fund Ser B 14.300 4.42 3.90 16.72 -7.86 -7.86 -26.96 3.35 20.27 -43.97 -72.55 16.83 31.48 1.43 -21.54 0.73 0.23 36.97 62.62
Front Street Canadian Energy Resource Fund Ser F 0.920 4.52 4.18 17.37 -6.83 -6.83 -26.45 -11.81 20.99 -43.69 -67.98 16.84 31.55 1.43 -20.51 0.73 0.23 37.58 54.76
Front Street Canadian Hedge Fund Series B 103.120 1.28 8.13 14.79 17.24 17.24 -3.33 11.26 14.79 -26.95 -43.40 5.51 13.92 0.43 13.13 0.68 0.45 86.15 63.95
FrontFour Opportunity Fund 28.000 -1.16 3.38 11.38 27.73 27.73 - 16.01 17.26 0.99 -5.84 8.63 - 0.50 22.95 0.50 0.71 98.84 70.00
GFM 130/30 Fund - 1.92 6.57 15.62 16.99 16.99 1.25 11.43 15.62 -16.18 -20.72 8.05 12.53 0.79 9.43 0.85 0.71 100.00 61.90
GFM Dividend Income Fund - 1.54 6.68 12.04 16.64 16.64 - 6.81 15.47 -4.87 -12.73 4.74 - 0.48 12.05 0.87 0.75 100.00 60.00
GFM Market Neutral Fund - 0.11 2.76 5.74 8.55 8.55 0.17 5.84 6.46 -5.57 -8.81 5.23 5.24 -0.08 9.32 -0.13 0.11 100.00 58.73
Goodwood Fund Class A 61.220 0.87 2.26 13.62 15.88 15.88 -0.77 10.39 15.52 -21.03 -55.80 7.00 10.79 0.16 14.35 0.20 0.02 71.53 62.62
Goodwood Fund Class B - 0.87 2.26 13.61 15.86 15.86 -0.76 1.60 15.51 -21.03 -55.41 7.00 10.79 0.16 14.33 0.20 0.03 72.21 59.03
Goodwood Milford Fund - 0.89 3.41 4.97 8.25 8.25 12.59 16.60 15.01 0.96 -49.99 2.10 5.44 0.15 6.82 0.63 0.40 100.00 73.96
Hillsdale Canadian Long/Short Equity Fund Class A 4.310 0.91 9.47 17.28 13.04 13.04 2.00 7.50 17.98 -7.07 -24.49 9.01 8.51 0.26 10.55 0.25 0.27 92.07 58.93
Hillsdale Enhanced Income Fund Class A 9.510 0.45 5.05 4.25 0.79 0.79 3.39 2.77 7.66 -8.22 -11.70 10.41 8.06 0.39 -2.94 0.33 0.61 93.75 63.16
IA Multi-Strategy 1.290 0.51 3.71 3.31 -0.93 -0.93 -3.02 -2.97 3.31 -6.92 -38.57 6.66 4.71 0.53 -6.00 0.69 0.55 63.70 45.80
IMFC Global Concentrated Program - 0.54 4.22 -2.32 3.24 3.24 -3.22 2.58 8.03 -13.50 -17.77 9.23 10.63 -0.10 4.20 -0.09 0.57 87.23 52.63
IMFC Global Investment Program - 2.33 8.05 2.08 10.01 10.01 -2.52 8.67 8.08 -16.05 -21.06 8.34 10.63 -0.18 11.73 -0.18 0.40 87.39 50.60
JC Clark Adaly Fund Class A - 1.96 10.69 15.97 15.23 15.23 -5.31 13.12 15.97 -27.52 -35.68 9.83 15.29 0.58 9.68 0.51 0.47 79.74 69.64
JC Clark Adaly Fund Class B - 1.69 10.05 15.14 14.09 14.09 -6.03 5.89 15.14 -27.72 -36.14 9.79 15.24 0.57 8.64 0.51 0.47 78.17 65.04
JC Clark Focused Opportunities Fund (Class A) - 1.86 6.37 9.44 12.51 12.51 5.73 7.65 19.24 -11.47 -14.02 5.24 8.54 0.38 8.88 0.62 0.65 100.00 65.05
JC Clark Patriot Trust (Class B) - 3.43 7.37 14.42 11.46 11.46 -3.38 8.32 14.42 -17.01 -29.64 8.06 12.88 0.74 4.38 0.79 0.52 85.00 65.65
JC Clark Preservation Trust (Class B) - 2.33 9.79 14.40 18.41 18.41 5.03 11.26 18.60 -9.84 -22.61 7.46 7.94 0.58 12.86 0.67 0.64 100.00 59.66
JM Catalyst Fund 19.600 0.95 2.82 12.07 23.10 23.10 15.53 13.56 13.82 3.87 -3.31 3.90 4.39 0.23 20.90 0.52 0.19 100.00 81.94
Kensington Global Private Equity Fund Class E+G - 3.40 9.97 10.85 0.71 0.71 7.26 2.84 20.22 -9.97 -15.93 9.30 10.30 0.35 -2.64 0.33 0.11 100.00 48.15
Kensington Hedge Fund 1 Series A+E+F - 0.76 4.02 4.53 8.84 8.84 - 9.77 8.68 1.08 -1.04 3.25 - 0.22 6.74 0.59 0.53 100.00 80.77
King & Victoria Fund LP - 2.60 5.39 11.27 36.15 36.15 20.99 25.96 35.96 -11.98 -32.14 7.40 10.67 0.26 33.66 0.30 0.57 100.00 77.37
King & Victoria RSP Fund Class A Units - 2.60 5.39 11.27 36.15 36.15 20.63 17.39 35.96 -11.99 -33.73 7.40 10.66 0.26 33.66 0.30 0.57 100.00 72.73
Kootenay Global Energy Abs. Return Fund LP Class A - 3.43 8.63 15.15 8.79 8.79 - 0.49 15.15 -12.47 -17.73 10.65 - 0.90 0.18 0.73 0.31 100.00 53.33
Landry Global Equity Long/Short Fund Series F 29.100 -0.53 0.79 3.77 14.56 14.56 5.08 4.65 11.59 -10.02 -26.44 4.89 7.78 -0.02 14.75 -0.03 0.42 94.71 58.59
Landry Global Equity Long/Short Fund Series I - -0.43 1.08 4.39 9.36 9.36 4.19 0.81 12.17 -9.56 -25.62 5.29 7.72 -0.13 10.60 -0.21 -0.02 94.78 57.47
Lightwater Conservative Long/Short - Class A - 2.44 13.24 40.90 46.03 46.03 -0.08 2.85 40.90 -19.67 -33.19 12.98 14.04 0.81 38.28 0.54 0.19 97.57 59.72
Lightwater Nimble Fund - 2.65 3.28 27.85 53.04 - - - - - -4.35 - - - - - - 100.00 90.00
Lycos Value Fund Class O 1.800 -7.28 4.68 5.08 17.11 17.11 25.91 17.11 68.00 -14.32 -22.62 26.92 26.92 0.71 10.32 0.23 0.35 92.31 58.33
Lycos Value Fund Class P 1.200 0.51 1.48 3.02 6.02 6.02 6.01 6.01 3.03 2.90 0.00 0.10 0.09 0.00 6.02 0.39 0.37 100.00 100.00
Majestic Global Diversified Fund - 4.50 4.71 -10.61 -9.95 -9.95 -8.80 -0.61 12.89 -20.07 -32.95 11.68 16.79 0.21 -11.96 0.16 0.40 70.21 46.88
Majestic Global Diversified Fund Series A - 4.46 4.68 -10.90 -10.05 -10.05 -8.85 0.61 12.78 -20.03 -33.00 11.68 16.84 0.18 -11.77 0.14 0.38 70.13 47.62
Marret High Yield Hedge LP Class B 43.170 -0.10 1.05 2.46 -0.87 -0.87 1.21 9.21 3.04 -3.72 -7.60 3.38 3.70 0.32 -3.93 0.82 0.71 98.94 72.18
Volume 14 Issue 1 - January 2014 15
www.canadianhedgewatch.com16
H E D G E F U N D P E R F O R M A N C E (as of December 31, 2013)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Meson Capital Partners Fund - 3.92 17.10 10.86 7.91 7.91 -14.82 25.82 21.37 -26.71 -59.12 16.99 26.03 1.40 -5.48 0.71 0.73 48.40 53.45
Niagara Discovery Fund 9.900 1.10 2.39 -8.14 -2.38 -2.38 -0.94 10.62 9.86 -9.86 -14.06 11.14 13.05 -0.12 -1.23 -0.09 0.07 89.85 53.49
Niagara Legacy Class B Fund 41.800 1.83 1.48 -23.86 -34.82 -34.82 -6.21 9.14 60.16 -41.54 -49.57 24.39 31.69 0.28 -37.50 0.10 0.15 53.80 56.86
Norrep Market Neutral Income Fund 10.790 -0.82 3.72 2.17 6.90 6.90 - 9.88 13.81 -1.90 -2.99 5.12 - 0.22 4.80 0.37 0.59 99.18 60.71
Northern Rivers Conservative Growth Fund LP 14.166 1.70 6.85 14.63 35.90 35.90 15.72 11.06 26.84 -12.83 -49.62 6.97 12.86 0.27 33.32 0.34 0.52 100.00 66.33
Northern Rivers Global Energy Fund LP 2.052 2.23 5.61 28.38 18.56 18.56 7.21 6.36 37.20 -28.69 -61.25 13.96 21.05 0.86 10.33 0.53 0.01 92.10 63.27
Palos Income Fund, L.P. 130.000 2.63 9.81 15.38 24.98 24.98 8.30 12.15 15.38 -13.58 -40.08 5.17 8.57 0.50 20.20 0.84 0.78 100.00 72.30
Pathway Energy Series A Rollover MIN002 2.100 -0.03 -5.15 -4.51 -31.43 -31.43 -38.39 -31.17 2.28 -49.90 -92.29 17.58 27.18 1.36 -44.44 0.67 0.03 7.71 47.83
Pathway Multi SF Explorer Series A Rollover MIN001 - -1.78 -16.46 -23.58 -58.13 -58.13 -51.49 -23.39 -10.99 -45.21 -94.98 18.01 24.77 1.44 -71.90 0.69 0.12 5.02 40.00
Performance Diversified Fund - 1.34 3.68 4.54 5.18 5.18 -0.47 8.71 4.54 -6.08 -19.84 2.37 3.91 0.08 4.41 0.31 0.35 96.65 73.29
Performance Growth Fund - 1.25 2.63 1.62 1.99 1.99 -1.87 8.71 12.46 -14.15 -34.64 2.41 8.34 0.09 1.13 0.31 0.30 91.56 70.69
Picton Mahoney Diversified Strategies Fund Class A 14.590 0.67 4.42 8.59 13.11 13.11 6.14 7.84 9.62 -7.99 -7.99 4.06 5.08 0.38 9.48 0.81 0.83 100.00 66.67
Picton Mahoney Global Long Short Equity Fd Cl A C$ 12.080 1.31 4.88 9.56 21.42 21.42 8.68 3.26 13.21 -7.72 -25.98 7.00 7.37 0.36 17.98 0.44 0.78 100.00 61.64
Picton Mahoney Global Long Short Resource Cl A 1.970 1.30 4.20 12.40 12.16 12.16 - 4.94 12.89 -9.98 -12.13 8.73 - 0.80 4.51 0.79 0.41 99.68 64.00
Picton Mahoney Global Market Netural Equ Cl A C$ 37.600 0.11 0.81 1.80 8.05 8.05 4.85 1.80 6.14 -1.14 -17.21 3.70 3.25 0.04 7.67 0.09 0.51 99.45 58.90
Picton Mahoney Income Opportunities Fund Class A 200.840 0.36 3.14 6.23 8.10 8.10 3.99 7.20 6.23 -8.16 -9.14 3.92 5.08 0.39 4.37 0.86 0.74 100.00 75.00
Picton Mahoney Long Short Equity Fund Class A 116.430 0.77 5.25 10.77 14.18 14.18 4.39 11.35 10.77 -10.78 -24.86 4.49 6.23 0.45 9.88 0.86 0.72 100.00 71.88
Picton Mahoney Market Neutral Equity Fund Class A 292.980 -0.11 1.60 3.60 5.45 5.45 2.24 8.54 4.28 -2.29 -4.63 1.65 2.16 0.04 5.07 0.21 0.46 99.89 68.75
Primevestfund 2.780 2.03 5.33 17.42 2.59 2.59 -13.21 9.79 17.42 -23.69 -46.13 16.60 17.91 1.05 -7.45 0.55 0.11 64.59 63.73
Radin Global Opportunities Fund Fd Class Series F - 1.80 6.71 10.85 18.38 18.38 - 20.62 14.40 2.57 -2.41 7.23 - 0.64 12.26 0.77 0.48 100.00 80.00
RDA Mons Regalis Multi-Strategy LP - -1.27 -0.62 -8.21 -14.86 -14.86 1.11 1.11 12.35 -10.10 -18.03 8.63 9.43 -0.32 -11.80 -0.32 -0.61 81.97 50.00
Rosalind Capital Partners L.P. - 7.50 11.63 41.41 92.08 92.08 10.74 21.52 47.73 -38.79 -40.85 12.74 19.97 0.62 86.15 0.42 -0.12 100.00 66.67
Ross Smith Capital Investment Fund 21.452 1.38 1.67 3.85 8.49 8.49 7.51 10.43 6.38 0.30 -17.17 2.86 2.79 0.01 8.39 0.02 -0.14 100.00 70.59
Ross Smith Opportunities Fund 25.428 1.55 1.86 3.12 6.51 6.51 - 8.93 10.22 1.08 -1.18 2.57 - 0.05 6.03 0.16 0.40 100.00 70.83
RPH Global Sovereign Bond Pooled Fund - 0.98 1.86 2.02 6.74 6.74 - 5.36 6.13 -2.05 -4.02 5.63 - 0.02 6.55 0.03 0.10 100.00 65.38
SEI Futures Index Fund Class D 0.030 0.51 0.83 0.31 -2.89 -2.89 -2.95 -2.88 4.04 -7.21 -13.12 2.33 3.55 -0.06 -2.32 -0.21 -0.14 87.96 39.47
SEI Futures Index Fund Class E 0.010 0.64 1.23 1.11 -1.81 -1.81 -2.24 -2.18 4.32 -6.95 -11.75 2.41 3.57 -0.05 -1.33 -0.18 -0.14 89.58 39.47
SEI Futures Index Fund Class F 0.180 0.61 1.15 1.02 -1.35 -1.35 -1.27 1.13 4.98 -6.37 -9.79 2.31 3.55 -0.06 -0.78 -0.22 -0.15 91.51 51.09
SEI Futures Index Fund Class O 19.650 0.76 1.55 1.75 -0.09 -0.09 -0.17 2.33 5.53 -5.88 -8.66 2.35 3.56 -0.06 0.48 -0.21 -0.14 93.52 54.49
SEI Futures Index Fund Class P 1.990 0.61 1.12 0.90 -1.75 -1.75 -1.83 0.66 4.65 -6.68 -10.95 2.34 3.56 -0.06 -1.18 -0.21 -0.15 90.33 50.00
SG US Market Neutral Fund 34.660 3.53 4.07 3.05 4.62 4.62 5.21 0.83 6.15 -1.78 -12.63 5.41 4.31 0.08 3.85 0.12 -0.40 100.00 52.46
SG US Market Neutral Fund Class G - 2.82 3.48 2.55 4.12 4.12 - 4.41 4.63 -1.62 -1.94 4.63 - 0.04 3.74 0.08 -0.42 100.00 58.33
SG US Market Neutral Fund Class U - 1.49 1.94 0.74 2.14 2.14 - 3.23 6.39 -2.05 -2.53 4.77 - 0.09 1.28 0.16 -0.41 99.37 53.33
Sherpa Diversified Returns Fund Class A - 1.00 3.72 5.45 9.88 9.88 4.44 3.90 11.56 -10.76 -21.95 2.84 6.21 0.19 8.06 0.59 0.98 100.00 70.15
Sherpa Market Neutral Income Fund Class A - 0.38 0.56 0.55 0.25 0.25 0.31 1.82 3.09 -5.30 -6.90 0.49 3.17 0.02 0.06 0.34 0.09 98.26 76.74
Silvercove Hard Asset Fund L.P. 14.312 1.80 -2.18 1.05 -4.09 -4.09 -1.46 3.59 8.20 -8.85 -10.98 5.93 7.26 0.39 -7.82 0.57 0.29 93.40 56.86
SMI Defensive LP 145.200 -1.65 -0.71 -27.02 -33.80 -33.80 -6.78 15.12 8.90 -28.55 -33.80 16.24 11.63 -0.69 -27.20 -0.37 -0.22 66.20 83.87
SMI Income LP 3.400 3.09 6.87 14.62 21.98 21.98 - 22.24 14.62 4.82 0.00 4.02 - 0.21 19.97 0.45 -0.19 100.00 100.00
Spartan Dorset Fund - 2.76 - - 4.89 - - - - - 0.00 - - - - - - 100.00 100.00
Spartan Eleven Fund - 0.63 3.58 5.90 6.80 6.80 - 10.27 12.87 -1.97 -4.16 3.82 - 0.41 2.88 0.92 0.54 100.00 80.77
Spartan Humber Global Opportunity Fund - 1.53 4.32 6.98 9.97 - - - - - -0.66 - - - - - - 100.00 77.78
Spartan Humber Global Preservation Fund - 0.66 2.48 2.84 4.44 4.44 - 2.89 3.02 -2.39 -3.04 3.17 - 0.11 3.39 0.29 0.12 100.00 65.00
Spartan LSQ - 0.89 1.81 1.85 3.21 3.21 - 7.42 7.69 0.08 -1.65 3.02 - 0.10 2.25 0.29 -0.08 100.00 90.91
Spartan onTREND Fund - -0.47 7.02 15.38 15.31 15.31 - 15.31 18.79 -0.06 -3.08 10.16 - 0.81 7.56 0.69 0.26 99.53 58.33
Spartan Teraz Fund 1.000 0.83 -0.09 5.28 -7.97 -7.97 - -8.84 5.28 -15.98 -24.09 10.54 - 0.56 -13.33 0.46 0.01 79.92 37.50
Sprott Absolute Return Income Fund Class A 31.785 0.26 0.18 -1.82 -6.62 -6.62 -0.37 0.71 5.74 -7.72 -8.94 6.77 5.23 0.41 -10.54 0.52 0.37 91.29 62.50
Sprott Absolute Return Income Fund Class T - 0.26 0.18 -1.84 -6.69 -6.69 -0.30 0.77 5.81 -7.74 -9.01 6.77 5.29 0.41 -10.61 0.52 0.37 91.23 62.50
Sprott Bull/Bear RSP Fund Class A 18.377 -3.78 -22.01 -18.84 -59.18 -59.18 -39.33 -2.34 6.41 -49.70 -78.69 35.30 29.62 1.71 -75.54 0.42 -0.24 21.31 51.88
Sprott Enhanced Long/Short Equity Fund 52.935 0.77 4.94 7.93 17.81 17.81 0.04 12.02 9.16 -13.52 -19.15 3.86 9.05 0.12 16.66 0.28 0.68 96.62 58.62
Sprott Enhanced Long/Short Equity RSP Fund 19.244 0.74 4.84 7.78 17.44 17.44 -0.26 6.04 8.96 -13.62 -19.39 3.85 9.05 0.13 16.20 0.28 0.68 95.89 53.54
H E D G E F U N D P E R F O R M A N C E (as of December 31, 2013)
Fund NameAsset Size
($MM)1
Month3
Month6
MonthYTD
1 Year
3 Year
(Ann.)
Since Inception
(Ann.)
Best 6 Mo.
(3 Year)
Worst 6 Mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Beta (1 Year,
TSX)
Alpha (%) (1 Year,
TSX)
Correl. (1 Year,
TSX)
Correl. (1 Year, S&P500)
% High Water- mark
% Pos. Month
Since Inc.
Sprott Hedge Fund L.P. Class A 114.413 -4.09 -19.48 -17.53 -55.75 -55.75 -38.53 5.44 6.06 -46.34 -77.79 32.49 28.36 1.62 -71.25 0.43 -0.25 22.21 55.70
Sprott Hedge Fund L.P. II Class A 75.941 -4.27 -20.74 -18.89 -57.07 -57.07 -38.83 -4.43 6.30 -47.07 -78.10 33.09 28.27 1.58 -72.18 0.41 -0.27 21.90 50.00
Sprott Small Cap Hedge Fund 14.157 3.88 9.20 17.57 1.86 1.86 -7.40 3.62 17.57 -18.87 -54.39 10.82 14.02 0.87 -6.46 0.69 0.23 74.54 59.04
SW8 Strategy Fund LP Class A 27.916 -0.14 -5.30 -7.49 -9.32 -9.32 0.13 0.13 8.42 -7.49 -10.52 6.39 6.42 0.04 -9.70 0.05 -0.40 89.48 47.22
SW8 Strategy Fund LP Class B - -0.10 -5.16 -7.23 -8.80 -8.80 0.62 9.89 8.66 -7.23 -10.08 6.38 6.41 0.04 -9.18 0.05 -0.40 89.92 57.78
SW8 Strategy Trust Class A 13.260 -0.14 -5.30 -7.49 -9.32 -9.32 -0.37 -0.37 7.88 -7.49 -10.52 6.39 6.39 0.04 -9.70 0.05 -0.40 89.48 47.22
SW8 Strategy Trust Class B - -0.10 -5.16 -7.23 -8.80 -8.80 0.29 0.29 8.27 -7.23 -10.08 6.38 6.39 0.04 -9.18 0.05 -0.40 89.92 47.22
Tapestry Balanced Growth Private Port Corp Cl A 11.180 1.14 6.25 8.44 11.07 11.07 2.56 3.95 8.44 -6.05 -8.55 4.89 5.24 0.46 6.67 0.81 0.65 100.00 62.50
Tapestry Balanced Growth Private Port Corp Cl T 2.550 1.06 6.26 8.44 11.03 11.03 2.56 3.80 8.44 -5.98 -8.48 4.97 5.24 0.47 6.53 0.81 0.64 100.00 62.50
Tapestry Balanced Income Private Port Corp Cl A 3.980 0.80 4.99 6.07 7.27 7.27 2.89 3.59 6.07 -3.42 -5.18 4.54 4.23 0.40 3.44 0.75 0.63 100.00 68.09
Tapestry Balanced Income Private Port Corp Cl T 0.630 0.72 4.98 6.03 7.24 7.24 2.22 3.33 6.03 -3.45 -5.26 4.51 4.13 0.39 3.51 0.75 0.63 100.00 62.50
Tapestry Divers Income Private Port Corp Class A 3.820 0.34 3.46 3.63 4.37 4.37 3.12 4.34 5.12 -2.27 -3.20 4.22 3.13 0.33 1.21 0.67 0.62 100.00 65.96
Tapestry Global Balanced Private Port Corp Cl A 4.670 1.20 6.78 9.15 13.33 13.33 4.26 4.52 9.15 -5.86 -7.38 5.22 5.75 0.46 8.93 0.76 0.63 100.00 59.57
Tapestry Global Growth Private Port Corp Cl A 1.550 1.56 8.48 13.03 21.69 21.69 6.88 6.28 13.03 -8.43 -10.32 6.09 7.71 0.53 16.62 0.75 0.69 100.00 65.22
Tapestry Global Growth Private Port Corp Cl T - 1.50 8.46 12.98 21.52 21.52 5.65 5.37 12.98 -8.77 -10.65 6.12 7.63 0.53 16.45 0.75 0.69 100.00 64.58
Tapestry Growth Private Portfolio Corporate Cl A 3.140 1.34 7.57 10.18 13.54 13.54 2.37 3.81 10.18 -8.13 -10.62 5.81 6.47 0.55 8.28 0.82 0.66 100.00 60.42
Tapestry Growth Private Portfolio Corporate Cl T - 1.39 7.60 10.19 13.44 13.44 2.26 3.70 10.19 -8.29 -10.84 5.75 6.45 0.55 8.18 0.82 0.65 100.00 58.33
The Vantage Fund 90.000 1.22 2.76 7.60 5.14 5.14 2.86 6.31 8.95 -9.93 -12.68 5.60 8.19 0.13 3.90 0.19 -0.12 100.00 67.39
Topaz Multi-Startegy Fund (Canada) Series H 37.600 -0.29 -1.33 0.55 -4.99 -4.99 - -4.31 0.89 -8.01 -10.29 3.61 - 0.31 -7.96 0.73 0.07 90.20 45.83
Trident Performance Corp II 10.770 0.32 0.22 -2.80 -2.43 -2.43 -1.21 -2.02 10.14 -9.32 -15.35 7.08 7.13 -0.32 0.63 -0.39 0.10 85.79 45.28
Venator Founders Fund Class A 73.000 2.60 5.80 11.22 31.43 31.43 12.16 14.25 24.71 -20.64 -32.02 4.89 12.94 0.10 30.47 0.18 0.60 100.00 69.15
Venator Income Fund Class F 61.000 2.70 4.24 6.55 16.03 16.03 13.20 16.11 11.39 -6.55 -12.91 4.13 5.92 0.13 14.79 0.26 0.45 100.00 81.54
Venator Investment Trust Class A - 2.71 5.87 11.33 31.45 31.45 12.26 9.73 24.77 -20.55 -32.72 4.81 12.90 0.10 30.49 0.19 0.59 100.00 67.11
Venator Select Fund - 4.60 12.81 - 16.75 - - - - - 0.00 - - - - - - 100.00 100.00
Vertex Fund Class A 1,115.890 2.32 6.22 10.06 16.11 16.11 5.17 15.95 10.06 -14.36 -47.22 5.00 8.61 0.35 12.76 0.61 0.35 100.00 70.37
Vertex Fund Class B 225.210 2.34 6.06 9.84 15.65 15.65 4.90 10.80 9.84 -14.88 -47.05 5.37 8.75 0.37 12.11 0.60 0.36 100.00 72.13
Vertex Fund Class F 499.430 2.32 6.19 10.01 16.04 16.04 5.05 13.67 10.01 -14.37 -47.60 5.00 8.61 0.35 12.69 0.61 0.35 100.00 72.66
Vision Opportunity Fund L.P. - 2.83 10.08 7.00 4.05 4.05 10.54 20.69 16.64 -12.39 -17.27 11.76 10.26 0.24 1.75 0.17 0.53 100.00 72.73
Vision Opportunity Fund L.P. II - 2.85 9.97 6.78 3.66 3.66 10.87 20.45 16.44 -12.59 -12.59 11.82 9.95 0.24 1.36 0.17 0.53 99.71 75.00
Vision Opportunity Fund Trust - 2.51 7.24 4.30 2.11 2.11 8.13 16.60 17.35 -12.37 -15.47 10.12 9.27 0.33 -1.05 0.28 0.59 97.35 71.21
WARATAH Income Fund 94.600 1.30 6.95 11.59 17.16 17.16 7.37 8.19 11.59 -5.00 -5.85 5.86 5.47 0.52 12.19 0.77 0.60 100.00 69.05
WARATAH One Fund 184.300 0.70 4.15 7.83 10.88 10.88 6.79 8.09 7.83 -1.22 -1.99 2.65 3.24 0.14 9.54 0.46 0.08 100.00 80.95
WARATAH Performance Fund 201.900 2.10 9.26 13.99 22.40 22.40 10.44 15.40 13.99 -3.39 -4.73 5.15 5.91 0.33 19.24 0.56 0.71 100.00 76.19
Wealhouse Panorama Fund, L.P. 252.515 2.12 5.82 9.18 19.84 19.84 4.51 11.88 13.34 -14.39 -17.00 5.12 8.40 0.36 16.40 0.60 0.72 100.00 66.15
Wolverine Opportunity Fund Series A - 6.28 18.23 21.05 10.78 10.78 -14.03 -9.39 21.05 -37.20 -48.94 13.30 18.25 1.13 -0.03 0.74 0.60 61.81 51.28
Equally Weighted Average Performance of All Funds 8,086.171 1.40 4.03 6.12 7.35 7.04 0.56 - - - - - - - - - - - -
Number of Funds in Sample 112 185 184 183 185 181 156 - - - - - - - - - - - -
Volume 14 Issue 1 - January 2014 17
To ensure the highest level of accuracy, Hedge Funds are encouraged to directly submitmonthly/quarterly/annual data to: [email protected]
Canadian Hedge Watch receives, tracks and presents the data and results of Canadian funds as a service tothe hedge fund and alternative investment community. Business announcements, key personnel appointments and
press releases are also welcome for publication. Please send to [email protected].
www.canadianhedgewatch.com18
M A R K E T I N D I C E S (as of December 31, 2013)
INDEX NAME 1 Month
3 Month
6 Month
YTD1
Year3
YearSince
Inception
Best 6mo.
(3 Year)
Worst 6mo.
(3 Year)
Max. Draw Down
Std. Dev.
(1 Year)
Std. Dev.
(3 Year)
Alpha (1 Year,
TSX)
Beta (1 Year,
TSX)
% High Water- mark
% Pos. Months
183 Day Canada T-Bill 0.08 0.24 0.51 1.00 1.00 1.01 6.46 0.54 0.46 0.00 0.02 0.02 1.00 0.00 100.00 100.00
91 Day Canada T-Bill 0.08 0.24 0.49 0.97 0.97 0.95 6.18 0.49 0.43 0.00 0.01 0.02 0.97 0.00 100.00 100.00
BMO Canadian Small Cap Index 1.74 5.82 13.19 4.31 4.31 -4.60 5.71 13.19 -22.25 -57.31 10.53 14.48 -5.64 1.04 83.82 58.64
CHW-HF Composite Index 0.33 -0.02 4.17 -3.42 -3.42 -7.12 0.05 4.17 -11.60 -32.08 5.68 6.54 -7.92 0.47 72.69 58.33
CHW-HF Equity Hedged Index 0.25 -0.19 4.44 -3.73 -3.73 -7.35 1.60 4.44 -11.79 -34.75 6.12 6.84 -8.42 0.49 72.05 59.26
CHW-HF FoHF Index 1.03 2.83 2.89 0.32 0.32 -5.08 -7.74 2.89 -9.85 -57.95 3.09 3.91 -2.55 0.30 43.27 49.53
CHW-HF Notes Index 0.21 0.77 2.05 4.71 4.71 3.63 0.44 3.75 -1.83 -11.09 0.88 1.91 4.42 0.03 100.00 58.49
Dow Jones Global Index (C$) 1.80 10.20 16.18 29.42 29.42 9.76 4.94 16.18 -11.97 -50.31 6.81 9.28 23.78 0.59 92.26 56.06
Dow Jones Global Index (U$) 1.65 6.81 14.96 20.79 20.79 7.03 5.30 18.68 -18.57 -55.89 9.53 14.40 15.34 0.57 97.20 59.85
Nasdaq Composite Index (C$) 3.03 14.25 24.03 48.20 48.20 18.98 9.22 24.03 -6.54 -74.24 7.05 9.94 42.65 0.58 65.28 58.59
S&P 500 Total Return Index C$ 2.69 14.03 17.55 41.87 41.87 18.84 10.81 21.42 -6.83 -51.16 7.88 8.42 36.80 0.53 100.00 61.36
S&P 500 Total Return Index US$ 1.69 9.61 15.36 31.32 31.32 15.86 10.60 25.88 -13.78 -50.98 8.51 12.09 26.54 0.50 100.00 61.86
S&P/TSX 60 Index TR 1.82 7.24 13.00 10.12 10.12 2.01 6.99 13.00 -16.44 -47.89 8.52 10.07 0.75 0.98 100.00 60.45
S&P/TSX Composite Index 1.69 6.53 12.31 9.57 9.57 0.45 6.37 12.31 -17.66 -45.05 7.92 10.29 0.77 0.92 92.59 59.18
A N N O U N C E M E N T S
AIMA, the global hedge fund association, has announced a new Chair and Deputy Chair of the AIMA Investor Steering Committee (ISC),which features leading institutional investors in hedge funds from around the world and undertakes educational initiatives.
The new Chair is Michelle McGregor-Smith, Chief Executive, British Airways Pension Investment Management Ltd, and the Deputy Chairis Kurt Silberstein, Managing Director, Alternative Investments, Ascent Private Capital Management, a subsidiary of U.S. Bank.
Ms McGregor-Smith is an adviser to the Investment Committee of the Health Foundation, a UK based charity, and a member of the UK AdvisoryCouncil of the CFA Institute. A member of the ISC since 2009, she co-authored the ISC’s investors’ views and preferences paper in 2011 andwrote the foreword to Beyond 60/40: The evolving role of hedge funds in institutional investor portfolios, which was published in May 2013.
She said: “I have enjoyed working with my ISC colleagues and AIMA on the various projects and research initiatives undertaken in the last fewyears, and I look forward to collaboration with a broadened ISC which will add new insights and experience to further the work of the Committee.”
Prior to joining Ascent in August 2011, Mr Silberstein worked for 12 years at CalPERS. He has been a key contributor to many of the ISC’spublications over the years, including being a co-author of the first edition of AIMA’s Roadmap to Hedge Funds guide for investors in 2008.
Mr Silberstein said: “I look forward to working with AIMA and the ISC in furthering its efforts to providing information and addressing specificissues associated with investing in alternatives."
Their appointments coincide with an expansion of the ISC, which now includes more than 20 institutional investor members who collectivelymanage over $800 billion in assets.
AIMA CEO Andrew Baker said: “I would like to pay tribute to Michelle and Kurt, who have been among the ISC's strongest supporters inrecent years. The ISC now comprises pension funds, endowments and sovereign wealth funds from every region of the world and goesfrom strength to strength.”
For media enquiries, please contact:Christen Thomson, Deputy CEO, Head of External Affairs Tel: +44 (0)20 7822 8380 Email: [email protected]
AIMA ANNOUNCES NEW CHAIR AND DEPUTY CHAIROF INVESTOR STEERING COMMITTEE
London – December 6, 2013
CONTINUING EDUCATIONIE CANADA’S NEWSPAPER FOR FINANCIAL ADVISORS IE EXECUTIVE MID-FEBRUARY
2013 | 5 6 P A G E S
INVESTMENT
this year’s rrsp season is
shaping up to be the best in sev-
eral years as investors regain con-
fidence and hold a more positive
view of the future.
In fact, financial advisors report
that clients are eager to review
their portfolios and add to their
equities exposure. Fund compan-
ies, meanwhile, are seeing sizable
increases in sales volumes com-
pared with the past few years.
“A number of clients who were
running to the ‘safe and secure’
last year are much more opti-
mistic this year,” says Bill Bell,
president of Bell Financial Inc.
of Aurora, Ont. “Last year, they
wanted to talk about the inter-
est rate on a five-year guaranteed
investment certificate [GIC]; this
year, they want to know about the
U.S. equities market. Instead of
saying, ‘Get me out’ after the good
year we saw in equities in 2012,
clients are seeing the benefits of
Andrea Kladar, an investment advisor with TD Waterhouse
Private Investment Advice in Calgary, volunteers and raises
funds for organizations that help homeless and mistreated
animals. She works with the Alberta Animal Rescue Crew
Society, fostering dogs in need of care. She eventually adopted
Drizella, above. “We have an obligation,” she says, “to give to
those who need us the most.” (See story on page B12.)
R R S P S
More clients are warming to equities
late last year, the om-
budsman for Banking Services
and Investments (OBSI) un-
leashed its so-called “nuclear op-
tion” by publicly singling out sev-
eral financial services firms that
were refusing to follow OBSI’s
recommendations to compensate
aggrieved investors. But investor
advocates say those nukes clearly
fizzled, and now it’s time for regu-
lators to give OBSI more bite.
For most of OBSI’s life, the
desjardins group’s recent
decision to buy a stake in
Qtrade Financial Group will al-
low Desjardins, the Lévis, Que.-
based financial services giant,
to extend its reach into the cred-
it union system outside its home
province. At the same time, the
deal will strengthen Vancouver-
based Qtrade’s existing position
as a third-party wealth-manage-
ment provider to the credit union
system.
DAVE BUSTON
WWW. INVESTMENTEXECUTIVE .COM
> TURN TO SOME / PAGE 4
> TURN TO “NAME / PAGE 6> TURN TO DEAL / PAGE 6
Fund companies
report sizable boosts in
sales volumes
BY JADE HEMEON
O M B U D S E R V I C E
Binding powers
C R E D I T U N I O N S
Beyond Quebec
INSIDE NEWS
LOOPHOLE New rules will be
put in place to restrict the
activities of EMDs. Pg. 8
TOP 25 Louis Vachon is the
2012 Quebec Financial
Person of the Year. Pg. 10
DOOMSDAY? Our Western way
of life faces collapse, says a
new economic report. Pg. 12
MOVE Bruce Kagan now is
back in front of clients with
Gluskin Sheff. Pg. 20
RRSPS While most retirees
are happy, those saving up
face hurdles. Pg. 22
PENSIONS Securities and real
estate markets drove growth
in DB plans. Pg. 23
FOCUS ON PRODUCTS
GROWTH PLAN Sentry Select’s
strategy is paying off despite
a tough climate. Pg. 25
DECELERATION Slower growth
is predicted for global bond
funds. Pg. 26
RESEARCH
GUILTY GROWTH Why “sin”
stocks can generate good
returns for clients. Pg. 29
BONDS New government
issues could start producing
real returns soon. Pg. 30
INSIGHT
OTTAWA Will the Tories’
next budget watchdog be a
lapdog? Pg. 33
ST. JOHN’S Opposition says
the Petroleum Board is too
close to the industry. Pg. 34
BYB
RUNNING FOR LIFE
Brian Culbert runs
ultramarathons to help save
lives. Pg. B10
BIKER Hal Spelliscy helps to
fund ALS research. Pg. B14
40
06
49
24
BY RUDY MEZZETTA
BY JAMES LANGTON
For full details turn to pg B17
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Highest Return (3 Year)
Fund Name Ann. ReturnAnn. Std.
Dev.
# of Negative Months
Lycos Value Fund Class O 25.91 26.92 14
Agilith North American Diversified Fund 25.23 14.77 11
King & Victoria Fund LP 20.99 10.67 6
King & Victoria RSP Fund Class A Units 20.63 10.66 6
DKAM Capital Ideas Fund 20.36 11.41 8
Exemplar Leaders Fund Series F 15.74 13.08 10
ChapelGate Credit Opportunity Fund Ltd. 15.73 3.85 4
Northern Rivers Conservative Growth Fund LP 15.72 12.86 10
JM Catalyst Fund 15.53 4.39 3
Calrossie Partners Fund 13.77 8.29 9
Venator Income Fund Class F 13.20 5.92 6
Goodwood Milford Fund 12.59 5.44 7
Broadview Dark Horse LP 12.47 6.68 6
Venator Investment Trust Class A 12.26 12.90 11
Venator Founders Fund Class A 12.16 12.94 10
Exemplar Leaders Fund Series A 12.00 12.13 10
Burlington Partners Plus LP 11.26 9.40 11
Vision Opportunity Fund L.P. II 10.87 9.95 11
Rosalind Capital Partners L.P. 10.74 19.97 14
Vision Opportunity Fund L.P. 10.54 10.26 11
WARATAH Performance Fund 10.44 5.91 10
Highest Return (1 Year)
Fund Name Ann. ReturnAnn. Std.
Dev.
# of Negative Months
Rosalind Capital Partners L.P. 92.08 12.74 1
Agilith North American Diversified Fund 52.79 10.73 2
DKAM Capital Ideas Fund 51.63 9.95 1
Lightwater Conservative Long/Short - Class A 46.03 12.98 2
Formula Growth Global Opportunities Fund Cl. S C$ 36.44 12.24 3
King & Victoria RSP Fund Class A Units 36.15 7.40 1
King & Victoria Fund LP 36.15 7.40 1
Northern Rivers Conservative Growth Fund LP 35.90 6.97 1
Venator Investment Trust Class A 31.45 4.81 1
Venator Founders Fund Class A 31.43 4.89 1
Exemplar Leaders Fund Series F 29.18 6.98 2
Exemplar Leaders Fund Series A 28.94 6.77 2
Barometer Long Short Equity Pool Class A 28.54 11.50 3
FrontFour Opportunity Fund 27.73 8.63 3
BT Global Growth Fund L.P. 27.49 10.43 2
Calrossie Partners Fund 26.40 7.10 2
BluMont Hirsch Performance Fund 26.18 4.50 1
Palos Income Fund, L.P. 24.98 5.17 1
Fiera Long Short Equity Fund Class A 24.26 5.20 1
JM Catalyst Fund 23.10 3.90 0
WARATAH Performance Fund 22.40 5.15 3
Highest Return (3 Month)
Fund Name 3 Month 6 Month 1 YearAnn. std
Dev. (1 Year)
DKAM Capital Ideas Fund 20.53 33.42 51.63 9.95
Wolverine Opportunity Fund Series A 18.23 21.05 10.78 13.30
Formula Growth Global Opportunities Fund Cl. S C$ 17.52 22.44 36.44 12.24
Meson Capital Partners Fund 17.10 10.86 7.91 16.99
AlphaNorth Partners Fund Class F 16.24 43.14 13.02 22.91
BT Global Growth Fund L.P. 16.11 21.11 27.49 10.43
Barometer Long Short Equity Pool Class A 13.61 15.61 28.54 11.50
Lightwater Conservative Long/Short - Class A 13.24 40.90 46.03 12.98
Venator Select Fund 12.81 - - -
Agilith North American Diversified Fund 11.71 21.45 52.79 10.73
Rosalind Capital Partners L.P. 11.63 41.41 92.08 12.74
JC Clark Adaly Fund Class A 10.69 15.97 15.23 9.83
BluMont Hirsch Performance Fund 10.27 15.33 26.18 4.50
Barometer Tactical Exchange Traded Fund Pool 10.13 7.31 16.37 9.09
Vision Opportunity Fund L.P. 10.08 7.00 4.05 11.76
JC Clark Adaly Fund Class B 10.05 15.14 14.09 9.79
Kensington Global Private Equity Fund Class E+G 9.97 10.85 0.71 9.30
Vision Opportunity Fund L.P. II 9.97 6.78 3.66 11.82
Palos Income Fund, L.P. 9.81 15.38 24.98 5.17
JC Clark Preservation Trust (Class B) 9.79 14.40 18.41 7.46
Calrossie Partners Fund 9.63 15.32 26.40 7.10
Lowest Return (3 Month)
Fund Name 3 Month 6 Month 1 YearAnn. std
Dev. (1 Year)
Sprott Bull/Bear RSP Fund Class A -22.01 -18.84 -59.18 35.30
Sprott Hedge Fund L.P. II Class A -20.74 -18.89 -57.07 33.09
Sprott Hedge Fund L.P. Class A -19.48 -17.53 -55.75 32.49
Pathway Multi SF Explorer Series A Rollover MIN001 -16.46 -23.58 -58.13 18.01
Dynamic Power Hedge Fund Series C -5.87 -2.01 -17.84 14.07
SW8 Strategy Fund LP Class A -5.30 -7.49 -9.32 6.39
SW8 Strategy Trust Class A -5.30 -7.49 -9.32 6.39
SW8 Strategy Fund LP Class B -5.16 -7.23 -8.80 6.38
SW8 Strategy Trust Class B -5.16 -7.23 -8.80 6.38
Pathway Energy Series A Rollover MIN002 -5.15 -4.51 -31.43 17.58
Arrow U.S. Equity Income Fund Class U U$ -2.33 -6.22 -10.21 5.42
Silvercove Hard Asset Fund L.P. -2.18 1.05 -4.09 5.93
Arrow U.S. Equity Income Fund F -1.69 -5.69 -8.08 5.70
Arrow U.S. Equity Income Fund A C$ -1.41 -5.16 -8.86 5.96
Topaz Multi-Startegy Fund (Canada) Series H -1.33 0.55 -4.99 3.61
Friedberg Asset Allocation Fund -1.16 1.18 -8.92 9.81
AlphaNorth Partners Fund Class A -0.81 10.71 -12.93 15.05
SMI Defensive LP -0.71 -27.02 -33.80 16.24
RDA Mons Regalis Multi-Strategy LP -0.62 -8.21 -14.86 8.63
Man Canada AHL DP Investment Fund Class T -0.45 -6.09 -13.97 11.11
Man Canada AHL DP Investment Fund Class O -0.42 -6.04 -13.87 11.11
Volume 14 Issue 1 - January 2014 21
Fewest Negative Months (1 Year)
Fund Name# of
Negative Months
Ann. Return
Ann. Std. Dev.
JM Catalyst Fund 0 23.10 3.90
SMI Income LP 0 21.98 4.02
Lycos Value Fund Class P 0 6.02 0.10
Rosalind Capital Partners L.P. 1 92.08 12.74
DKAM Capital Ideas Fund 1 51.63 9.95
King & Victoria RSP Fund Class A Units 1 36.15 7.40
King & Victoria Fund LP 1 36.15 7.40
Northern Rivers Conservative Growth Fund LP 1 35.90 6.97
Venator Investment Trust Class A 1 31.45 4.81
Venator Founders Fund Class A 1 31.43 4.89
BluMont Hirsch Performance Fund 1 26.18 4.50
Palos Income Fund, L.P. 1 24.98 5.17
Fiera Long Short Equity Fund Class A 1 24.26 5.20
Tapestry Global Growth Private Port Corp Cl A 1 21.69 6.09
Tapestry Global Growth Private Port Corp Cl T 1 21.52 6.12
Broadview Dark Horse LP 1 19.86 4.80
ChapelGate Credit Opportunity Fund Ltd. 1 17.35 3.89
Venator Income Fund Class F 1 16.03 4.13
Burlington Partners Plus LP 1 15.93 5.26
Tapestry Growth Private Portfolio Corporate Cl A 1 13.54 5.81
WARATAH One Fund 1 10.88 2.65
Fewest Negative Months (3 Year)
Fund Name# of
Negative Months
Ann. Return
Ann. Std. Dev.
JM Catalyst Fund 3 15.53 4.39
ChapelGate Credit Opportunity Fund Ltd. 4 15.73 3.85
King & Victoria Fund LP 6 20.99 10.67
King & Victoria RSP Fund Class A Units 6 20.63 10.66
Venator Income Fund Class F 6 13.20 5.92
Broadview Dark Horse LP 6 12.47 6.68
Goodwood Milford Fund 7 12.59 5.44
DKAM Capital Ideas Fund 8 20.36 11.41
Ross Smith Capital Investment Fund 8 7.51 2.79
WARATAH One Fund 8 6.79 3.24
BSP Absolute Return Fund Multi Strat.US$ 8 5.11 2.87
Sherpa Diversified Returns Fund Class A 8 4.44 6.21
Calrossie Partners Fund 9 13.77 8.29
Exemplar Leaders Fund Series F 10 15.74 13.08
Northern Rivers Conservative Growth Fund LP 10 15.72 12.86
Venator Founders Fund Class A 10 12.16 12.94
Exemplar Leaders Fund Series A 10 12.00 12.13
WARATAH Performance Fund 10 10.44 5.91
Palos Income Fund, L.P. 10 8.30 8.57
Sherpa Market Neutral Income Fund Class A 10 0.31 3.17
SMI Defensive LP 10 -6.78 11.63
Lowest Volatility (1 Year)
Fund NameAnn. Std.
Dev.Ann.
Return
# of Negative Months
Lycos Value Fund Class P 0.10 6.02 0
Sherpa Market Neutral Income Fund Class A 0.49 0.25 6
Picton Mahoney Market Neutral Equity Fund Class A 1.65 5.45 3
BSP Absolute Return Fund Multi Strat.US$ 1.87 9.75 1
Goodwood Milford Fund 2.10 8.25 1
SEI Futures Index Fund Class F 2.31 -1.35 6
SEI Futures Index Fund Class D 2.33 -2.89 6
SEI Futures Index Fund Class P 2.34 -1.75 6
SEI Futures Index Fund Class O 2.35 -0.09 6
Fiera Tactical Bond Yield Fund Class A 2.36 -1.26 6
Performance Diversified Fund 2.37 5.18 3
BSP Absolute Return Fund L/S Eq. US$ 2.39 11.93 2
Performance Growth Fund 2.41 1.99 3
SEI Futures Index Fund Class E 2.41 -1.81 6
Ross Smith Opportunities Fund 2.57 6.51 4
Arrow Diversified Fund Class F U$ 2.57 0.77 4
WARATAH One Fund 2.65 10.88 1
Arrow Diversified Fund Class F C$ 2.67 0.93 4
Arrow Diversified Fund Class A 2.68 -0.47 5
Sherpa Diversified Returns Fund Class A 2.84 9.88 2
Ross Smith Capital Investment Fund 2.86 8.49 2
Lowest Volatility (3 Year)
Fund NameAnn. Std.
Dev.Ann.
Return
# of Negative Months
Picton Mahoney Market Neutral Equity Fund Class A 2.16 2.24 16
Ross Smith Capital Investment Fund 2.79 7.51 8
BSP Absolute Return Fund Multi Strat.US$ 2.87 5.11 8
Tapestry Divers Income Private Port Corp Class A 3.13 3.12 14
Sherpa Market Neutral Income Fund Class A 3.17 0.31 10
WARATAH One Fund 3.24 6.79 8
Picton Mahoney Global Market Netural Equ Cl A C$ 3.25 4.85 12
SEI Futures Index Fund Class F 3.55 -1.27 22
SEI Futures Index Fund Class D 3.55 -2.95 22
SEI Futures Index Fund Class O 3.56 -0.17 21
SEI Futures Index Fund Class P 3.56 -1.83 22
SEI Futures Index Fund Class E 3.57 -2.24 22
Marret High Yield Hedge LP Class B 3.70 1.21 18
Arrow Diversified Fund Class A 3.74 -4.85 22
Arrow Diversified Fund Class F C$ 3.78 -3.67 20
Arrow Diversified Fund Class F U$ 3.83 -4.42 21
ChapelGate Credit Opportunity Fund Ltd. 3.85 15.73 4
Performance Diversified Fund 3.91 -0.47 16
Arrow Diversified Fund Class A U$ 4.04 -5.22 22
Tapestry Balanced Income Private Port Corp Cl T 4.13 2.22 14
Amethyst Arbitrage Fund 4.22 0.83 16
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Volume 14 Issue 1 - January 2014 23
Terms of Use
Proprietary RightsAll intellectual property rights in or related to the Content are and willremain the exclusive property of CHW, whether or not specificallyrecognized or perfected under applicable law. If Customer creates orcompiles content, data, or information identical or similar to any partof the Content (except as expressly permitted by this Agreement orby CHW in writing), Customer will not use or access the Content todo so. CHW will own all rights in any copy, translation, modification,adaptation or derivation of the Content. The Content, CHW’s datacollection methods, data structures and formats are the confidentialinformation of CHW, to the extent they are nonpublic information.Customer will use reasonable care to protect and keep confidentialand will not disclose such information or documents to third partiesexcept as permitted by CHW.
The CompanyCanadian Hedge Watch Inc. (CHW) is a publishing, educational andinformation firm providing timely hedge fund and other alternativeinvestment information to the Canadian marketplace. CHW publishesthe monthly Canadian Hedge Watch monthly report and maintainsthe website www.canadianhedgewatch.com which is designed bothas a core source of Canadian hedge fund and alternative investmentnews and to provide information to investment advisors, institutions,sophisticated investors and other industry participants. The monthlyreport and website provide up-to-date statistical data on Canadianhedge funds, quarterly hedge fund reports, current hedge fund news,links to Canadian hedge fund companies, an archive of previousissues of the newsletter and a library of hedge fund related booksand articles. CHW hosts the annual World Alternative InvestmentSummit Canada (www.waisc.com), a highly successful event which nowattracts over 400 hedge fund and alternative investment professionalsand service providers. CHW has also launched the CHAIP (CharteredAlternative Investment Planner) designation for sellers of hedge fundsin Canada. This designation is the only one relating to alternatives thatis recognized by the Canadian investment industry.
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Redistribution of ContentCustomer will not redistribute or otherwise use this Content for thebenefit of third parties or to create a product for resale, provided,however, that Customer may copy limited amounts of the Content forinternal use only, and may copy or quote limited amounts of theContent in external documents only if such uses do not have thepurpose or effect of eliminating the recipient’s need to purchasethe Content. All or part of the Content may be used in publicpresentations, provided that such presentations will not be madeavailable via hardcopies or via the Internet or other electronic meanswithout prior permission from CHW. In all cases, the Content mustbe attributed to CHW by means of a notice that substantially states“Source: CHW Quarterly Hedge Fund Report,© CHW, www.canadianhedgewatch.com.”
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www.canadianhedgewatch.com24
1. G
raph
s an
d Ta
bles
Rel
ated
to A
sset
Siz
e an
d D
istr
ibut
ion
of C
anad
ian
Hed
ge F
unds
1.1.
Num
ber o
f Hed
ge F
unds
Rep
ortin
g
Num
ber o
f Hed
ge F
unds
Rep
ortin
g
050100
150
200
250
300
350
400
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Funds
Dec
-94
1M
ar-1
324
3D
ec-9
54
Jun-
1323
4D
ec-9
66
Sep
-13
227
Dec
-97
7D
ec-1
318
5D
ec-9
811
Dec
-99
14D
ec-0
028
Dec
-01
49D
ec-0
292
Dec
-03
131
Dec
-04
181
Dec
-05
234
Dec
-06
280
Dec
-07
260
Dec
-08
353
Mar
-09
323
Jun-
0932
7S
ep-0
927
4D
ec-0
930
9M
ar-1
029
2Ju
n-10
303
Sep
-10
323
Dec
-10
339
Mar
-11
326
Jun-
1132
8S
ep-1
134
2D
ec-1
126
7M
ar-1
224
7Ju
n-12
258
Sep
-12
231
Dec
-12
220
DAT
EH
EDG
EF
UND
SR
EPO
RTI
NG
DAT
EH
ED
GE
FUN
DSR
EPO
RTI
NG
88
% o
f the
fund
s re
porte
d po
sitiv
e re
turn
s fo
r the
four
th q
uarte
r of 2
013
whi
le 7
3% fo
r the
pas
t 12
mon
ths.
Volume 14 Issue 1 - January 2014 25
1.2.
Num
ber o
f Hed
ge F
und
Man
ager
s R
epor
ting
Num
ber o
f Hed
ge F
und
Man
ager
s R
epor
ting
0102030405060708090100
Dec-06Mar-07
Jun-07Sep-07Dec-07
Mar-08Jun-08
Sep-08Dec-08Mar-09
Jun-09Sep-09Dec-09
Mar-10Jun-10
Sep-10Dec-10Mar-11
Jun-11Sep-11Dec-11
Mar-12Jun-12
Sep-12Dec-12Mar-13
Jun-13Sep-13Dec-13
Dec
-06
65D
ec-0
758
Dec
-08
60M
ar-0
974
Jun-
0977
Sep
-09
68D
ec-0
983
Mar
-10
77Ju
n-10
80S
ep-1
085
Dec
-10
88M
ar-1
194
Jun-
1189
Sep
-11
88D
ec-1
184
Mar
-12
79Ju
n-12
84S
ep-1
279
Dec
-12
83M
ar-1
384
Jun-
1382
Sep
-13
83D
ec-1
371
DAT
EM
AN
AGE
RS
REP
OR
TIN
G
Ther
e ar
e no
w a
tota
l of 7
1 he
dge
fund
man
ager
s re
porti
ng th
eir p
erfo
rman
ce to
Can
adia
n H
edge
Wat
ch.
www.canadianhedgewatch.com26
1.3.
Hed
ge F
unds
Rep
ortin
g A
sset
s
Num
ber o
f Hed
ge F
unds
Rep
ortin
g A
sset
s
020406080100
120
140
160
180
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Funds
DA
TEF
UN
DS
Rep
ortin
gA
sset
s
# of
Fun
d M
anag
ers
Dec
-94
1D
ec-9
54
Dec
-96
6D
ec-9
77
Dec
-98
12D
ec-9
914
Dec
-00
22D
ec-0
142
Dec
-02
64D
ec-0
394
Dec
-04
121
Dec
-05
133
Dec
-06
117
28D
ec-0
711
428
Dec
-08
129
35M
ar-0
911
838
Jun-
0913
938
Sep
-09
154
41D
ec-0
911
443
Mar
-10
112
44Ju
n-10
121
49S
ep-1
012
147
Dec
-10
149
53M
ar-1
113
950
Jun-
1114
147
Sep
-11
153
47D
ec-1
111
046
Mar
-12
135
44Ju
n-12
149
52S
ep-1
213
752
Dec
-12
126
49M
ar-1
312
750
Jun-
1312
545
Sep
-13
125
47D
ec-1
312
648
O
f the
185
fund
s re
porti
ng, 1
12 re
porte
d th
e si
ze o
f the
ir as
sets
, a fi
gure
repr
esen
ted
by 4
8 he
dge
fund
man
ager
s as
of D
ecem
ber 3
1, 2
013.
Volume 14 Issue 1 - January 2014 27
1.4.
Hed
ge F
unds
Ass
ets
Und
er M
anag
emen
t (A
UM
)
Hedg
e Fu
nd A
sset
s
0
2,00
0
4,00
0
6,00
0
8,00
0
10,0
00
12,0
00
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Asset Under Management ($MM)
DA
TEA
SSE
T
($M
M)
AS
SET
G
ROW
TH
($M
M)
Dec
-94
5.61
0-
Dec
-95
67.2
8461
.674
Dec
-96
164.
735
97.4
51D
ec-9
725
9.14
094
.405
Dec
-98
412.
506
153.
366
Dec
-99
923.
808
511.
302
Dec
-00
1486
.768
562.
960
Dec
-01
2955
.215
1468
.447
Dec
-02
3463
.887
508.
672
Dec
-03
4941
.409
1477
.522
Dec
-04
6671
.642
1730
.233
Dec
-05
7166
.778
495.
136
Dec
-06
7603
.667
436.
890
Dec
-07
7949
.529
345.
861
Dec
-08
5736
.551
-221
2.97
8M
ar-0
954
05.4
53-2
544.
076
Jun-
0958
42.6
4610
6.09
4S
ep-0
965
86.6
2374
3.97
7D
ec-0
962
97.5
29-2
89.0
94M
ar-1
061
84.5
24-1
13.0
05Ju
n-10
7438
.786
1254
.262
Sep
-10
6863
.449
-575
.337
Dec
-10
8982
.884
2119
.435
Mar
-11
8283
.491
-699
.393
Jun-
1186
47.0
2936
3.53
8S
ep-1
174
61.8
60-1
185.
169
Dec
-11
6137
.633
-132
4.22
7M
ar-1
277
06.7
1615
69.0
83Ju
n-12
8071
.277
364.
561
Sep
-12
7633
.582
-437
.695
Dec
-12
7092
.179
-541
.403
Mar
-13
8365
.596
1273
.417
Jun-
1378
76.0
71-4
89.5
25S
ep-1
383
22.6
0244
6.53
1D
ec-1
384
05.0
7582
.473
The
tota
l hed
ge fu
nd a
sset
s re
porte
d to
Can
adia
n H
edge
Wat
ch a
t the
end
of Q
4/20
13 w
as C
$8.4
05 b
illion
, a s
light
incr
ease
from
the
prev
ious
qua
rter.
www.canadianhedgewatch.com28
1.5.
Hed
ge F
und
Ass
et C
hang
e
Hed
ge F
und
Ass
et C
hang
e
-40%
-20%0%20
%
40%
60%
80%
100%
120%
Dec-94Jun-95Dec-95Jun-96Dec-96Jun-97Dec-97Jun-98Dec-98Jun-99Dec-99Jun-00Dec-00Jun-01Dec-01Jun-02Dec-02Jun-03Dec-03Jun-04Dec-04Jun-05Dec-05Jun-06Dec-06Jun-07Dec-07Jun-08Dec-08Jun-09Dec-09Jun-10Dec-10Jun-11Dec-11Jun-12Dec-12Jun-13Dec-13
Asset Change (%)
DAT
EAS
SET
($M
M)
% C
HANG
E(1
year
)D
ec-9
45.
610
-D
ec-9
567
.284
1099
%D
ec-9
616
4.73
514
5%D
ec-9
725
9.14
057
%D
ec-9
841
2.50
659
%D
ec-9
992
3.80
812
4%D
ec-0
014
86.7
6861
%D
ec-0
129
55.2
1599
%D
ec-0
234
63.8
8717
%D
ec-0
349
41.4
0943
%D
ec-0
466
71.6
4235
%D
ec-0
571
66.7
787%
Dec
-06
7603
.667
6%D
ec-0
779
49.5
295%
Dec
-08
5736
.551
-28%
Mar
-09
5405
.453
-32%
Jun-
0958
42.6
462%
Sep-
0965
86.6
2315
%D
ec-0
962
97.5
2910
%M
ar-1
061
84.5
2414
%Ju
n-10
7438
.786
27%
Sep-
1068
63.4
494%
Dec
-10
8982
.884
43%
Mar
-11
8283
.491
34%
Jun-
1186
47.0
2916
%Se
p-11
7461
.860
9%D
ec-1
161
37.6
33-3
2%M
ar-1
277
06.7
16-7
%Ju
n-12
8071
.277
-7%
Sep-
1276
33.5
822%
Dec
-12
7092
.179
16%
Mar
-13
8365
.596
9%Ju
n-13
7876
.071
-2%
Sep-
1383
22.6
029%
Dec
-13
8405
.075
19%
To
tal r
epor
ted
hedg
e fu
nd a
sset
s in
crea
sed
by 1
9% o
ver t
he p
ast 1
2 m
onth
.
Volume 14 Issue 1 - January 2014 29
1.6.
Dis
trib
utio
n of
Can
adia
n H
edge
Fun
ds b
y A
sset
Siz
e
Dist
ribut
ion
of C
anad
ian
Hedg
e Fu
nds
by A
sset
Siz
e(D
ecem
ber,
2013
)
05101520253035
0
5010
015
020
025
030
035
040
045
050
055
060
065
070
075
080
085
090
095
010
0010
5011
00
Ass
et S
ize
($M
M)
Number of Funds
The
num
ber o
f Can
adia
n he
dge
fund
s re
porti
ng a
sset
siz
e is
ove
r $72
MM
. The
num
ber o
f hed
ge fu
nds
repo
rting
$20
0MM
or m
ore
in a
sset
s is
10
(or 7
.2%
). Th
ere
are
22 h
edge
fund
s w
ith $
100M
M o
r mor
e in
Ass
ets
Und
er M
anag
emen
t (AU
M),o
r 20%
. It i
s es
timat
ed th
at 6
8% o
f the
as
set r
epor
ting
hedg
e fu
nds
have
$50
MM
or l
ess
in A
sset
s U
nder
Man
agem
ent,
a fig
ure
that
has
bee
n la
rgel
y co
nsis
tent
for s
ome
time.
www.canadianhedgewatch.com30
1.7.
Rep
orte
d C
anad
ian
Hed
ge F
und
Ass
ets
by F
und
Man
ager
Rep
orte
d C
anad
ian
Hed
ge F
und
Ass
ets
by F
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anag
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t Cap
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orp.
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ith A
sset
Man
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ent
SEI I
nves
tmen
ts C
anad
a Co
mpa
nySe
ven
Seas
Cap
ital M
anag
emen
t Si
lver
cove
Cap
ital
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ercr
eek
Man
agem
ent I
nc.
Spro
tt As
set M
anag
emen
tSW
8 As
set M
anag
emen
t Inc
.Th
e G
oodw
ood
Fund
Vant
age
Asse
t Man
agem
ent
Vena
tor C
apita
l Mgm
t. Lt
d.Ve
rtex
One
War
atah
Adv
isor
sW
ealh
ouse
Cap
ital M
anag
emen
t
AUM
($M
M)
Thes
e nu
mbe
rs re
flect
the
Ass
ets
Und
er M
anag
emen
t (A
UM
) whe
re re
porte
d, a
nd d
o no
t ref
lect
tota
l mar
ket A
UM
.
Volume 14 Issue 1 - January 2014 31
1.8.
Ave
rage
Ass
et S
ize
of C
anad
ian
Hed
ge F
unds
Ove
r Tim
e
Ave
rage
Ass
et S
ize
of C
anad
ian
Hed
ge F
unds
Ove
r Tim
e
01020304050607080
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Averages Fund Asset ($MM)
Th
e C
anad
ian
hedg
e fu
nd m
arke
tpla
ce�s
ave
rage
repo
rted
Ass
ets
Und
er M
anag
emen
t (A
UM
) is
now
est
imat
ed a
t C$7
2 m
illion
.
www.canadianhedgewatch.com32
1.9.
Mon
thly
Ave
rage
Ret
urn
(Equ
ally
Wei
ghte
d)
Mon
thly
Ave
rage
Ret
urn
(Equ
ally
Wei
ghte
d)
-10%-8%
-6%
-4%
-2%0%2%4%6%8%10%
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Return (%)
Th
e 1
year
retu
rn o
f the
Equ
ally
Wei
ghte
d A
vera
ge o
f the
Can
adia
n he
dge
fund
s (+
3.46
%) i
s no
w b
elow
of t
he S
&P
/TS
X C
ompo
site
Inde
x (+
9.57
%).
Volume 14 Issue 1 - January 2014 33
1.10
. D
istr
ibut
ion
of R
etur
ns in
the
mos
t rec
ent Q
uart
er
Dis
trib
utio
n of
Mon
thly
Ret
urns
Oct
ober
, 201
3
0102030405060 -20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Number of Funds
Bas
ed u
pon
a to
tal o
f 221
fund
s re
porti
ng to
Can
adia
n H
edge
Wat
ch in
Oct
ober
, 201
3.
www.canadianhedgewatch.com34
Dis
trib
utio
n of
Mon
thly
Ret
urns
Nov
embe
r, 20
13
05101520253035404550 -20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Number of Funds
B
ased
upo
n a
tota
l of 1
86 fu
nds
repo
rting
to C
anad
ian
Hed
ge W
atch
in N
ovem
ber,
2013
.
Volume 14 Issue 1 - January 2014 35
Dis
trib
utio
n of
Mon
thly
Ret
urns
Dec
embe
r, 20
13
0102030405060 -20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Number of Funds
B
ased
upo
n a
tota
l of 1
85 fu
nds
repo
rting
to C
anad
ian
Hed
ge W
atch
in D
ecem
ber,
2013
.
www.canadianhedgewatch.com36
1.11
. D
istr
ibut
ion
of M
onth
ly A
vera
ge R
etur
n (E
qual
ly W
eigh
ted,
sin
ce D
ecem
ber,
1994
)
Dis
trib
utio
n of
Mon
thly
Ave
rage
Ret
urns
02468101214161820
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%1%
2%3%
4%5%
6%7%
8%9%
10%
Ave
rage
Mon
thly
Ret
urn
(%)
Number of Months
Eac
h ba
r rep
rese
nts
the
num
ber o
f mon
ths
that
agg
rega
te th
e sa
me
hist
oric
al a
vera
ge m
onth
ly re
turn
s si
nce
Dec
embe
r 199
4.
Volume 14 Issue 1 - January 2014 37
1.12
. Q
uart
erly
Ave
rage
Ret
urns
(Equ
ally
Wei
ghte
d)
Qua
rter
ly A
vera
ge R
etur
ns (E
qual
ly W
eigh
ted)
-15%
-13%
-11%-9
%
-7%
-5%
-3%
-1%1%3%5%7%9%11%
13%
15%
Dec-94Jun-95Dec-95Jun-96Dec-96Jun-97Dec-97Jun-98Dec-98Jun-99Dec-99Jun-00Dec-00Jun-01Dec-01Jun-02Dec-02Jun-03Dec-03Jun-04Dec-04Jun-05Dec-05Jun-06Dec-06Jun-07Dec-07Jun-08Dec-08Jun-09Dec-09Jun-10Dec-10Jun-11Dec-11Jun-12Dec-12Jun-13Dec-13
Return (%)
Dec
-94
-0.8
3%M
ar-9
51.
08%
Jun-
957.
46%
Sep
-95
5.32
%D
ec-9
5-2
.68%
Mar
-96
5.50
%Ju
n-96
8.21
%S
ep-9
64.
69%
Dec
-96
4.47
%M
ar-9
74.
39%
Jun-
972.
64%
Sep
-97
7.47
%D
ec-9
76.
18%
Mar
-98
4.37
%Ju
n-98
-2.8
6%S
ep-9
8-2
.09%
Dec
-98
2.22
%M
ar-9
96.
16%
Jun-
995.
86%
Sep
-99
4.92
%D
ec-9
95.
68%
Mar
-00
9.91
%
Jun-
000.
88%
Sep
-00
1.45
%D
ec-0
04.
21%
Mar
-01
3.33
%Ju
n-01
-0.2
1%S
ep-0
12.
13%
Dec
-01
-0.6
7%M
ar-0
2-0
.85%
Jun-
022.
23%
Sep
-02
-1.6
1%D
ec-0
21.
69%
Mar
-03
0.64
%Ju
n-03
5.41
%S
ep-0
34.
38%
Dec
-03
5.20
%M
ar-0
44.
40%
Jun-
04-3
.64%
Sep
-04
1.00
%D
ec-0
45.
34%
Qua
rter-
End
Ave
rage
Q
uart
erly
R
etur
n
Mar
-05
2.51
%Ju
n-05
-0.1
9%S
ep-0
55.
49%
Dec
-05
0.83
%M
ar-0
65.
74%
Jun-
06-1
.50%
Sep
-06
-1.2
8%D
ec-0
64.
23%
Mar
-07
1.81
%Ju
n-07
3.31
%S
ep-0
7-1
.53%
Dec
-07
1.60
%
Mar
-08
-1.6
2%Ju
n-08
4.56
%S
ep-0
8-1
1.73
%
Dec
-08
-12.
33%
Mar
-09
0.16
%Ju
n-09
3.70
%
Sep
-09
6.25
%D
ec-0
91.
36%
Mar
-10
2.29
%
Jun-
10-3
.17%
Sep
-10
4.40
%D
ec-1
08.
78%
Mar
-11
0.40
%Ju
n-11
-3.1
8%S
ep-1
1-6
.45%
Dec
-11
-0.5
2%M
ar-1
21.
53%
Jun-
12-4
.14%
Sep
-12
2.59
%D
ec-1
2-1
.09%
Mar
-13
1.42
%Ju
n-13
-2.3
3%S
ep-1
30.
65%
Dec
-13
3.77
%
Qua
rter-
End
Ave
rage
Q
uart
erly
R
etur
n
O
n av
erag
e, h
edge
fund
s re
turn
ed +
3.77
% in
Q4/
2013
, low
er th
an th
e S
&P
/TS
X a
t +6.
53%
and
the
S&
P50
0 TR
I C$
at +
14.0
3%.
www.canadianhedgewatch.com38
1.13
. 12
-mon
th R
ollin
g St
anda
rd D
evia
tion
od E
qual
ly W
eigh
ted
Ave
rage
Per
form
ance
(ann
ualiz
ed)
12-m
onth
Rol
ling
Stan
dard
Dev
iatio
n (a
nnua
lized
)
0%2%4%6%8%10%
12%
14%
16%
18%
Dec-95Jun-96Dec-96Jun-97Dec-97Jun-98Dec-98Jun-99Dec-99Jun-00Dec-00Jun-01Dec-01Jun-02Dec-02Jun-03Dec-03Jun-04Dec-04Jun-05Dec-05Jun-06Dec-06Jun-07Dec-07Jun-08Dec-08Jun-09Dec-09Jun-10Dec-10Jun-11Dec-11Jun-12Dec-12Jun-13Dec-13
Annualized Standard Deviation
Th
e de
crea
se s
tarte
d in
Q4/
2011
and
con
tinue
d in
Q4/
2013
indi
cate
s th
at h
edge
fund
man
ager
s ar
e ta
king
less
risk
y po
sitio
ns. I
t als
o in
dica
tes
som
e so
rt of
cal
m s
tate
on
the
stoc
k m
arke
ts.
Volume 14 Issue 1 - January 2014 39
For risk and efficiency parameters of Canadian hedge fundscompared to other major indices, the Canadian hedge funds hadsimilar figures (Chart 2.3 – Efficiency and Calendar Year Returns) interms of annualized standard deviation, percentage of positivemonths, and percentage of positive quarters, largest drawdown andalpha against TSX compared to the HFRI Fund Weighted CompositeIndex. Over the past 5 years the correlation between Canadian hedgefunds and the TSX was 0.764 (refer to chart 2.4 – CorrelationMatrices); and was also highly correlated with HFRI Fund WeightedComposite Index of 0.873. The correlations for last 12 months were0.850 and 0.795 for the TSX and HFRI Fund Weighted CompositeIndex respectively.
2.1 CommentaryEqually weighted Canadian hedge funds had a quarterly (Q4) gain of3.77% (refer to chart 2.2 - Comparison of Returns), which was worse thanthe S&P/TSX which posted a gain of 6.53%. The HFRI Fund WeightedComposite Index rose 3.57%, while Dow Jones Global Index (C$) rose10.20%, and the S&P 500 Total Return Index (C$) was at 14.03%.
On the risk side, (refer to Chart 2.3 – Efficiency and Calendar YearReturns) the annual standard deviation (measured for the period ofDecember, 1994 to December, 2013) of equally weighted Canadianhedge funds was 7.74% compared to the Canadian market’s TSX of15.44%. The largest drawdown was also significantly lower forCanadian hedge funds with a negative 23.24% loss compared to theS&P/TSX’s negative 45.05% loss. Overall, Canadian hedge fundsperformed efficiently and hedged against the market - TSX since1994, in terms of the annual returns and standard deviations of7.14%, 7.74%, and 6.21%, 15.44%, respectively. Equally weightedCanadian hedge funds had 0.243 beta to the TSX and correlation was0.850 over the last 12 months.
2. Performance Comparison: Canadian Hedge Funds vs. Major Indices
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©2011. A BNY Mellon and CIBC Joint Venture Company. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY Mellon trade-marks.
www.canadianhedgewatch.com40
2.2. Comparison of Returns
Equally Weighted Average
Canadian HF Return
S&P/TSX Composite
Index
S&P 500 Total Return
Index C$
Dow Jones Global Index
(C$)
HFRI Fund Weighted
Composite Index
1.40% 1.69% 2.69% 1.80% 1.09%3.77% 6.53% 14.03% 10.20% 3.57%4.44% 12.31% 17.56% 16.18% 5.87%2.01% 6.85% 25.11% 18.73% 5.81%3.46% 9.57% 41.88% 29.42% 9.70%
-2.59% 0.45% 18.91% 9.77% 3.74%3.06% 8.68% 14.86% 9.81% 8.32%
* annual
1 month3 month6 monthYTD
RETURN
1 year3 year *5 year *
2.3. Efficiency and Calendar Year Returns Equally
Weighted Average
Canadian HF Return
S&P/TSX Composite
Index
S&P 500 Total Return
Index C$
Dow Jones Global Index
(C$)
HFRI Fund Weighted
Composite Index
7.14% 6.21% 8.08% 3.85% 9.26%7.74% 15.44% 13.07% 12.52% 7.00%
0.79 0.34 0.54 0.23 1.1862.61% 61.30% 60.87% 55.65% 69.13%70.13% 68.83% 66.23% 64.94% 75.32%
1.21 1.44 2.81 1.10 5.569.45% -98.97% -43.31% -60.54% -59.69%
238.22% 290.89% 9.20% 49.91% 261.54%-23.24% -45.05% -51.16% -50.31% -19.51%
0.243 - 0.500 0.593 0.3864.87% - 4.48% -0.24% 6.24%
Equally Weighted Average
Canadian HF Return
S&P/TSX Composite
Index
S&P 500 Total Return
Index C$
Dow Jones Global Index
(C$)
HFRI Fund Weighted
Composite Index
11.34% 11.87% 33.92% 12.50% 21.50%24.85% 25.74% 23.55% 11.21% 21.10%22.26% 13.03% 39.19% 15.99% 16.79%
1.47% -3.19% 37.82% 26.42% 2.62%24.60% 29.72% 13.94% 20.21% 31.29%17.22% 6.18% -5.57% -10.66% 4.98%
4.59% -13.94% -6.41% -11.50% 4.62%1.43% -13.97% -22.84% -20.79% -1.44%
16.50% 24.28% 5.76% 9.33% 19.54%7.02% 12.48% 2.80% 6.12% 9.05%8.82% 21.90% 1.51% 5.86% 9.28%7.16% 14.52% 16.04% 18.76% 13.01%5.23% 7.16% -9.80% -7.30% 11.06%
-20.40% -35.03% -23.08% -30.23% -17.25%11.85% 30.69% 9.17% 14.11% 20.35%12.48% 14.45% 8.89% 5.81% 11.02%-9.53% -11.07% 4.70% -7.88% -4.49%-1.24% 4.01% 13.19% 10.94% 6.55%3.46% 9.57% 41.88% 29.42% 9.70%
20062007200820092010201120122013
2002200320042005
1998199920002001
1997
Largest Drawdown:Beta (S&P/TSX):Alpha (S&P/TSX):
CALENDAR YEAR RETURNS
% Positive Months:
19951996
Skewness:Kurtosis:
% Positive Quarters:Sortino Ratio (1%):
Since December, 1994
Annualized Return:Annualized Standard Deviation:Sharpe Ratio (1%):
Volume 14 Issue 1 - January 2014 41
Calendar Year Returns
-40%
-30%
-20%
-10%
0%
10%20%
30%
40%19
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
1020
1120
1220
13
Retu
rn (%
)
Equally Weighted Average Canadian HF Return
Calendar Year Returns
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Ret
urn
(%)
S&P/TSX Composite Index
Calendar Year Returns
-40%
-30%-20%
-10%
0%
10%
20%
30%
40%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Ret
urn
(%)
HFRI Fund Weighted Composite Index
Calendar Year Returns
-40%
-30%
-20%-10%
0%
10%
20%
30%
40%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Ret
urn
(%)
Dow Jones Global Index (C$)
Calendar Year Returns
-40%
-30%-20%
-10%
0%
10%
20%
30%
40%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Ret
urn
(%)
S&P 500 Total Return Index C$
www.canadianhedgewatch.com42
2.4. Correlation Matrices
1 0.850 0.636 0.770 0.7950.850 1 0.578 0.743 0.6110.636 0.578 1 0.796 0.5790.770 0.743 0.796 1 0.8130.795 0.611 0.579 0.813 1
1 0.837 0.517 0.714 0.8500.837 1 0.500 0.784 0.7780.517 0.500 1 0.794 0.5640.714 0.784 0.794 1 0.8420.850 0.778 0.564 0.842 1
1 0.830 0.480 0.691 0.8810.830 1 0.559 0.748 0.7860.480 0.559 1 0.841 0.5990.691 0.748 0.841 1 0.8590.881 0.786 0.599 0.859 1
1 0.764 0.375 0.570 0.8730.764 1 0.510 0.660 0.8290.375 0.510 1 0.898 0.4770.570 0.660 0.898 1 0.7150.873 0.829 0.477 0.715 1
HFRI Fund Weighted
Composite Index
HFRI Fund Weighted Composite Index
HFRI Fund Weighted
Composite Index
HFRI Fund Weighted Composite Index
HFRI Fund Weighted
Composite Index
Equally Weighted Average
Canadian HF Return
Correlation (1 year)
HFRI Fund Weighted
Composite Index
HFRI Fund Weighted Composite Index
S&P/TSX Composite IndexS&P 500 Total Return Index C$Dow Jones Global Index (C$)
S&P/TSX Composite
Index
S&P 500 Total Return
Index C$
Dow Jones Global Index
(C$)
Equally Weighted Avg. Cdn. HF Return
Equally Weighted Average
Canadian HF Return
S&P/TSX Composite
Index
Dow Jones Global Index
(C$)
S&P 500 Total Return
Index C$
S&P 500 Total Return
Index C$
Dow Jones Global Index
(C$)
Equally Weighted Avg. Cdn. HF ReturnS&P/TSX Composite Index
S&P/TSX Composite
Index
S&P 500 Total Return Index C$Dow Jones Global Index (C$)
Correlation (5 year)
Equally Weighted Average
Canadian HF Return
S&P 500 Total Return
Index C$
Dow Jones Global Index
(C$)
Equally Weighted Avg. Cdn. HF ReturnS&P/TSX Composite Index
Dow Jones Global Index (C$)
Correlation (3 year)
Equally Weighted Average
Canadian HF Return
S&P/TSX Composite
Index
HFRI Fund Weighted Composite Index
S&P/TSX Composite Index
S&P 500 Total Return Index C$Dow Jones Global Index (C$)
S&P 500 Total Return Index C$
Correlation (2 year)
Equally Weighted Avg. Cdn. HF Return
Volume 14 Issue 1 - January 2014 43
CHW Canadian Hedge Indices
Canada's first non-investible hedge fund indices were created byCanadian Hedge Watch. They include 3 sub indices:
. CHW-HF Equity Hedged Index
. CHW-HF Notes Index
. CHW-FOHF Index
The composite index is the asset weighted CHW-HF CompositeIndex. The most prevalent Canadian hedge fund type is equityhedged as the majority of Canadian hedge funds are followers of thetraditional equity long-short types of hedge funds. Most hedge fundsexhibited negative performance in 2008 but many began to recover
lost ground in 2009. However, a number of hedge funds have takena more defensive position since 2009 by holding cash and takingshort positions in the market. There have been a growing number ofmanaged futures funds and real estate funds reporting as well.
The CHW-HF Composite Index is down 3.42% in the last 12 months.Losses derive from one of the three sub-indices: the Equity Index lost3.72%, while the Fund of Funds Index gained 0.32%, and the NotesIndex gained 4.60% in the ast 12 month.
Canadian Hedge Watch Inc.
Historical Monthly Returns
Canadian Hedge Fund Indices
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2013 0.60% -2.05% -0.30% -3.22% -0.25% -2.24% 1.87% 2.33% -0.06% 0.62% -0.96% 0.33% -3.42%
2012 2.48% 2.07% -2.73% -1.85% -1.93% -1.64% 0.59% 1.21% 1.42% -0.41% -1.65% -1.70% -4.24%
2011 -1.49% 1.81% -0.78% 0.29% -2.41% -2.52% 1.74% -3.92% -5.21% 1.27% -0.81% -1.92% -13.35%
2010 -0.61% 1.14% 1.82% 0.78% -3.45% -1.12% 0.31% 1.43% 4.08% 3.25% 2.20% 3.06% 13.41%
2009 2.10% -1.40% 1.66% 2.26% 3.92% 0.11% 1.31% 0.89% 3.47% -0.33% 0.58% 1.95% 17.70%
2008 -4.31% 2.65% -2.88% 0.67% 3.42% 1.08% -5.99% -2.32% -9.20% -9.81% -4.14% -3.79% -30.37%
2007 0.45% 2.55% 0.68% 2.58% 0.42% -0.26% 1.82% -4.52% 3.34% 3.87% -3.70% 1.14% 8.29%
2006 4.86% -0.21% 3.86% 1.49% -1.89% -2.81% 0.65% 0.73% -2.51% 3.25% 1.54% 2.97% 12.23%
2005 1.23% 4.21% -1.40% -2.89% 0.36% 1.29% 3.40% 1.50% 2.12% -3.38% 1.52% 2.63% 10.79%
2013 0.64% -2.21% -0.32% -3.50% -0.33% -2.30% 1.99% 2.67% -0.07% 0.54% -0.97% 0.25% -3.72%
2012 2.73% 2.16% -2.89% -1.93% -1.91% -1.73% 0.63% 1.31% 1.49% -0.43% -1.73% -1.89% -4.30%
2011 -1.56% 1.84% -0.78% 0.29% -2.50% -2.56% 1.75% -3.96% -5.27% 1.31% -0.81% -2.10% -13.68%
2010 -0.68% 1.23% 1.96% 0.78% -3.74% -1.33% 0.32% 1.45% 4.14% 3.28% 2.23% 3.10% 13.21%
2009 1.67% -1.68% 1.83% 2.61% 4.56% 0.37% 1.39% 0.97% 3.85% 0.33% 2.64% 2.19% 22.62%
2008 -5.04% 3.30% -3.32% 0.87% 3.98% 1.22% -7.33% -2.51% -11.04% -10.39% -4.54% -2.81% -32.73%
2007 0.53% 3.91% 1.04% 3.47% 0.57% -0.32% 2.50% -5.37% 4.41% 4.72% -4.66% 1.78% 12.65%
2006 6.44% -0.38% 5.29% 1.93% -2.48% -3.53% 0.98% 0.92% -3.46% 4.74% 2.28% 4.54% 17.95%
2005 2.05% 6.31% -1.99% -4.20% 0.50% 1.94% 5.02% 2.30% 2.99% -4.59% 1.99% 4.01% 16.87%
2013 0.19% 0.39% 0.69% 0.35% 0.90% -0.06% 0.59% 0.55% 0.12% 0.38% 0.18% 0.21% 4.60%
2012 -0.21% -0.24% -0.87% -1.00% 0.33% 0.44% 0.25% -0.16% 0.93% -0.44% 1.12% 0.07% 0.18%
2011 1.70% 0.16% -0.08% 0.99% 0.90% 0.03% 0.49% 1.15% 0.14% -0.32% 0.62% 0.16% 6.07%
2010 0.31% -0.25% -0.74% -0.54% 0.34% 2.92% -0.08% 1.65% 0.03% 0.58% -0.84% 0.28% 3.67%
2009 -0.05% 0.57% 0.49% -1.43% 0.64% -1.21% -0.49% 1.24% 0.67% -0.40% 1.39% -0.18% 1.22%
2008 -0.82% 0.23% 0.26% -0.75% 0.61% 0.47% -1.07% -0.76% -1.76% -2.57% -1.32% 0.21% -7.08%
2007 -0.04% -0.15% -0.36% 0.13% -0.31% -0.46% 0.34% -1.31% -0.19% 0.83% 0.70% -1.12% -1.93%
2006 0.83% 0.18% 0.77% 0.35% -0.56% -2.11% 0.21% 0.24% 0.26% 0.36% 0.27% 0.76% 1.53%
2005 -0.23% -0.35% -0.20% -0.44% 0.51% 0.52% -0.31% 0.09% -0.03% -1.02% 0.39% -0.31% -1.39%
2013 0.08% -0.40% -0.07% -0.76% 0.42% -1.78% 0.92% -0.82% -0.03% 1.40% 0.37% 1.03% 0.32%
2012 0.02% 0.29% -0.62% -0.71% -2.22% -0.57% 0.11% -0.09% 0.45% -0.14% -0.65% 0.43% -3.65%
2011 0.09% 1.07% -1.25% -0.16% -1.89% -1.97% 0.51% -3.20% -3.50% -0.02% -1.50% -0.24% -11.53%
2010 -0.34% 0.82% 1.78% 0.79% -1.99% -0.33% 0.72% 0.64% 2.44% 2.62% 1.07% 2.68% 11.36%
2009 7.91% 0.11% 0.72% 1.35% 3.74% -1.95% 1.58% -0.30% 1.36% -7.34% -28.46% -1.14% -24.54%
2008 -2.43% 0.51% -1.74% 0.22% 0.74% 0.40% -1.33% -1.62% -6.34% -10.52% -6.04% -17.30% -38.25%
2007 0.74% -0.22% 0.14% 1.11% 0.53% 0.31% -0.35% -2.85% 0.61% 1.49% -1.96% -0.11% -0.65%
2006 3.01% -0.03% 1.88% 1.07% -1.32% -1.25% -0.30% 0.37% -2.02% 0.44% -0.26% -0.26% 1.24%
2005 0.25% 2.98% -0.93% -1.52% -0.39% -0.04% 2.74% 0.53% 1.97% -2.17% 1.38% 1.37% 6.22%
Notes
FoHF
Equity
Composite
CHW INDICES
CHW Hedge Fund Indices vs. Major Market Indices
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
1700
1800
Mar
-05
Jun-0
5
Sep-0
5
Dec-0
5
Mar-
06
Jun-0
6
Sep-0
6
Dec-0
6
Mar-
07
Jun-0
7
Sep-
07
Dec-0
7
Mar-
08
Jun-0
8
Sep-
08
Dec-
08
Mar-
09
Jun-0
9
Sep
-09
Dec-
09
Mar-
10
Jun-1
0
Sep
-10
Dec-
10
Mar-
11
Jun-1
1
Sep
-11
Dec-
11
Mar-
12
Jun-1
2
Sep
-12
Dec-
12
Mar-
13
Jun-1
3
Sep-1
3
Dec-
13
CHW-HF Composite IndexCHW-HF Equity Hedged IndexCHW-HF Notes IndexCHW-FoHF IndexS&P/TSXS&P 500 TRI C$Dow Jones Global Index (C$)Dow Jones Credit Suisse HF Index
www.canadianhedgewatch.com
Canadian Hedge Watch Inc.20 Toronto St., Suite 820, Toronto, Ontario M5C 2B8
T: 416.848.0277 Toll Free: 877.249.9249 Fax: 416.848.0278 [email protected]
Copyright © 2005 - 2013
DisclaimerCanadian Hedge Watch calculates and publishes the CHW-HF Indices at its own expense and it is prepared solely as an information service to financial market participants. The index is published on a best-efforts basis. Canadian Hedge Watchand its affiliates and subsidiaries do not recommend, express any opinion or accept any liability regarding the constituent hedge funds or their respective securities by virtue of their inclusion in the CHW-HF Indices. Performance and capitaldata used to construct the CHW-HF Indices is provided by the constituent funds on a voluntary basis and has not been reviewed, audited or in independently verified in any way by Canadian Hedge Watch.
The index is based on data believed to be reliable. No guarantee is made as to the accuracy, timeliness, or completeness of the data used in the index. Neither Canadian Hedge Watch, nor its affiliates, accept liability whatsoever for any lossarising from any use of this report or its contents. In the event a data input to a published index calculation is subsequently believed to be in error, we may at our sole discretion declare the data error to be immaterial to the published indexvalue, and are under no obligation to re-calculate an already published index value. Index construction rules, guidelines, and practices may be changed at any time at our sole discretion, though we will endeavor to provide reasonable advancenotice of such changes, including termination of the index. The information included herein is not intended for use by retail clients.
Index Summary
Canada's First Hedge Fund Indices
1 ye ar Jan-05
1002.85 -0.02% 4.17% -3.42% -3.42% 0.03% -32.18% 72.30% 57.41% 5.68% 9.39%
1153.20 -0.19% 4.44% -3.72% -3.72% 1.60% -34.75% 71.88% 58.33% 6.12% 11.13%
1063.97 0.77% 2.05% 4.60% 4.60% 0.69% -10.79% 99.79% 57.41% 0.93% 2.72%
474.10 2.83% 2.89% 0.32% 0.32% -7.96% -59.09% 41.66% 48.15% 3.09% 13.31%
1 mo. 3 mo. 6 mo. YTD 1 year Jan-05 1 year Jan-05
0.33% -0.02% 4.17% -3.42% -3.42% 0.03% 5.68% 9.39%
0.26% 5.03% 10.73% 8.03% 8.03% 4.21% 7.87% 14.49%
4.90% 16.49% 20.09% 44.93% 44.93% 5.88% 8.10% 11.57%
1.80% 10.20% 16.18% 29.42% 29.42% 3.77% 6.81% 11.97%
1.19% 4.15% 5.82% 9.72% 9.72% 5.05% 3.57% 6.12%
0.488
10.638
1
0.6380.895 1
0.895
10.000
1744.642
1 yea rYTDMax.
Draw downAssets Representedby the Index ($MM)
173.290
Ann. Std. Dev.3 mo. 6 mo.
Sinc eJan-05
% Pos. Month
% HighWater mark
CHWHEDGE FUND INDICES
CHW-HF Composite Index
CORRELATION(since January, 2005)
0.829
CHW-HF Equity Hedged Idx. 1561.352
S&P/TSX
CHW-HF Composite Index
1
S&P/TSXCHW-HF Composite
Index
Dow Jones Credit Suisse HF
Index0.861
Dow Jones Global Index (C$)
MSCI World Index (C$)
0.513
0.48810.829 0.8360.680S&P/TSX
Index
Level
0.390
S&P 500 TRI C$
0.260
CHW-HF Notes IndexCHW-FoHF Index
MARKET INDICES
CHW-HF Composite Index
Dow Jones Credit Suisse HF Inde
0.680
0.3900.861
Dow Jones Global Index (C$) 0.513
0.836
Ann. Std. Dev.PERFORMANCE
Dow Jones Credit Suisse HF In
S&P 500 TRI C$
S&P 500 TRI C$ 0.260
Constituent Funds:Arro w Can adian Income FundArro w Act II New Media Fund AArro w Enhan ced Income FundArro w Glob al Long/Shor t Fund
Arro w High Yield Fu ndArro w JC Clark Oppo rtunities Fun dArro w PMC Global Long /Short FundArro w U.S. Eq uity Income Fun d ClassCI Glo bal Op portu nities Fu ndDynamic Alpha Performance FundDynamic C ontrarian FundDynamic In co me Opportunities FundDynamic Po wer Emerging M arkets Fu ndDynamic Po wer Hedge Fund Series CFro nt Stre et Can adia n Hed ge Fu ndGoo dwood Fund
Hillsd ale Canad ian L/S Equity Fund Class A
I A Multi-Strate gyArrow Fo cus Fund C lass A2Arrow Fo cus Fund C lass U2Arrow Multi-Stra tegy Fun d
Arrow Multi-Stra tegy Fun d U$Arrow Fo cus Fund C lass F2Arrow Fo cus Fund C lass G2Arrow Multi-Stra tegy Fun d Class FArrow Multi-Stra tegy Fun d Class G U $ Class F
Hillsdale Global L/S Equity Fu nd Class A U$No rthern Rivers Global Energ y Fund L PNo rthern Rivers Inn ova tion RSP FundPicto n Maho ney Global Market Net ural Equ
Picto n Maho ney Long Sho rt Equity Fu ndPicto n Maho ney Market Neutral Eq uity Fund ASprott Bull/ Bear RSP Fun dSprott He dge Fund L. P.Sprott He dge Fund L.P. IISprott Opportunitie s H edge FundSprott Opportunitie s R SP Fun dThe Friedberg Curren cy FundVertex Fun d
ON E Financial M SCI He dge Invest Inde x N ts S2ON E PLI G7 Glo bal Index Note Series 1ON E PLI G7 Glo bal Index Note Series 2ON E PLI Gold Note Se ries 1
ON E PLI Gold Note Se ries 2ON E PLIC Canadian D ividend N ote Ser ies 1ON E PLIC Global Dividen d Note Series 1
The Chartered Alternative Investment Planner (CHAIP)TM Programme was developed in 2005, in responseto the rapidly growing hedge funds market and the large variety of related alternative investment productsavailable. With a higher degree of complexity and challenges facing the hedge fund industry, the programmewas updated in 2009, including a tax and legal update from McMillan. CHAIPTM provides a comprehensive bodyof knowledge outlining the standards now required by advisors and planners, managers and analysts to makeinformed decisions on the purchase or recommendation of hedge funds.
Unlike other alternative investment courses, CHAIP is low-cost, can be completed in a short time period andcontains specific Canadian content updated with recent data.
Developed with the direct input of Canadian hedge fund and alternative investment professionals, the CHAIPTM certificationprocess includes:
1. An independent certification board of academic and practice experts who will certify the CHAIPTM curriculum and examination, set practice standards and determine continuing education requirements.
2. A comprehensive self-study course (approximately 75 study hours) providing a body of knowledge through theory and applied practice on the parameters, application and risks of hedge funds as an alternative in an investment portfolio, the history and theory of hedge funds, best practices that need to be employed by the Alternative Investment Planner, and a rigorous evaluation through the completion of course unit assignments and case studies.
3. The CHAIPTM designation can be earned by completing the course and passing the 4-hour proctored certification exam ensuring the highest level of recognition for certification mark holders.
To register, call 1-416-306-0151 or go to www.chaip.com
The CHAIPTM programme and CHAIPTM designation is produced by Radius Financial Educationa division of Canadian Hedge Watch Inc. www.radiusfinancialeducation.com
Know your alternatives.
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Every Exempt Market Dealer is required to complete and pass theIFSE Exempt Market Products (EMP) course and register with one single EMD firm registered
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Disclaimer The information contained in Canadian Hedge Watch has been compiled from sources believed to be reliable, however accuracy is not guaranteed. Canadian Hedge Watch provides information asa general source of news and events and should not be considered personal investment advice. Before taking any action all readers are advised and cautioned to consult a certified financial advisor. We haveendeavoured to ensure that the material contained in Canadian Hedge Watch is accurate at time of publication.
Stay Informed with a Canadian Hedge Watch MembershipCanadian Hedge Watch is published 11 times per year by Canadian Hedge Watch Inc.
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Contact InformationCanadian Hedge Watch Inc.20 Toronto Street, Suite 820, Toronto, Ontario M5C 2B8tel: 416.848.0277 ext. 2225 fax: 416.848.0278toll free: 1.877.249.9249Media, Advertising & Editorial: [email protected]: [email protected]
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Q U A R T E R LY R E V I E W O F H E D G E F U N D S & A LT E R N AT I V E I N V E S T I N GJULY 2013 VOLUME 13 ISSUE 7
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