Toronto-based Arrow Hedge Partners Inc has launched the Arrow Roundtable Fund and the JC Clark Opportunities Fund designed to exploit opportunities unique to the Canadian smaller and mid-cap markets
The firm stated: 'These funds provide qualified investors with an opportunity to participate in the extraordinary gains potential that exists in the Canadian small and mid-cap markets through long/short products managed by top-quality managers'.
'The opportunity for extraordinary gains in the Canadian market arises from several factors, including the relatively light analytical coverage of small and mid-cap stocks relative to larger-cap stocks', says Mark Purdy, Chief Investment Officers of Arrow Hedge in Toronto. 'This provides managers like JC Clark and Roundtable an opportunity to leverage their deep Canadian information networks to exploit arbitrage opportunities in ways that long-only managers - even in the small and mid-cap space - simply can't.'
Both managers have long track records managing Canadian stocks, deep industry networks and approach their mandates with bottom-up security selection. But both bring a unique approach to their stock-picking expertise.
JC Clark's concentrated fund has a contrarian bent. Its utilization of a disciplined short sell regime enables a variable-bias long/short complexion, resulting in extremely low correlations to broader markets, making them an excellent diversification tool.
Roundtable's approach, which includes a long bias and limited use of leverage, is deployed against a concentrated core of stocks while allowing more frequent, catalyst-driven trading against key emerging themes with the remainder, enhancing long term performance.
'These two managers represent amongst the most talented managers of their types in Canada,' says Jim McGovern, Arrow's Chief Executive. 'We're proud to represent the two complementary approaches - and include them in several of our fund of fund offerings - in our efforts to bring the unique opportunity set of the non-large cap Canadian market to our investors.'