Pro-Hedge Funds has launched its diversified Pro-Hedge Multi-Manager Energy Fund, the first such fund to be launched in Canada.
Specializing in the North American Energy and Utility sectors, the fund is widely diversified in its strategies, sectors and security types, and is designed to take advantage of this top performing energy sector while significantly lowering portfolio volatility.
This is another first for the Pro-Hedge team, who last year launched the "No Fee Guarantee" Capital Preservation Funds. Pro-Hedge Funds President and CEO Stuart McKinnon, said: "We continue to hand-pick the best of the best, and are thrilled to be able to offer exclusive access to some of Canada and the world's best money managers. Initially allocated amongst seven managers utilizing six strategies, our multi-manager energy fund is designed to optimize portfolio performance with substantially reduced volatility."
One of the featured managers for this energy fund of funds is Second Street Capital's John Stephenson, who for 19 years has been a recognized and respected name in the domestic and international finance industry, and has spent much of his tenure building expertise in the oil, gas and utility sectors.
Stephenson said: "Energy is front page news - and with good reason. The world is facing unprecedented challenges and opportunities in its search for sustainable hydrocarbon resources or alternatives. Now, more than ever, investors are looking to the energy sector for the growth component of their portfolios. We are delighted to be partnering with Pro-Hedge Funds Inc, a recognized leader in the hedge fund community, to offer investors a truly unique approach to energy investing. The Pro-Hedge energy fund offers investors a diversified approach to global energy investing - one that maximizes return while mitigating risk."
The past two years have seen the energy sector amongst the top performing sectors in North America; with S&P/TSX Capped Energy having doubled as the price of a single barrel of crude oil climbed over 150 per cent. During this period, volatility in the energy sector has been relatively subdued, thereby creating a wonderful environment for long only investors in the energy sector. However like many industry experts, the Pro-Hedge team believes it likely that volatility in both crude oil and energy shares will begin to rise as oil prices reach levels that could potentially disrupt the global economy.
"We believe now is an excellent time to bring this fund to market. Despite what has been a great environment for investors who have been long the energy sector, we are now at a point where volatility will likely rise regardless of the future direction of prices," says Pro-Hedge Vice President, Portfolio Manager Les Grober, adding: "This creates a more advantageous environment for hedge funds relative to long only managers. We have structured the portfolio with this view in mind and as a result, investors will now be able to participate in a far more diversified portfolio of underlying managers and strategies in both the energy and utility sectors."
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