Redwood Asset Management Inc.

Redwood Asset Management Inc.
Ark Fund Management Ltd.

Ark Fund Management Ltd.

February 04, 2010 22:54 ET

Redwood Asset Management Corporate Update

TORONTO, ONTARIO--(Marketwire - Feb. 4, 2010) - Redwood Asset Management Inc.("Redwood"), a Toronto-based manager of investment funds marketed under the Redwood, Ark and SciVest brands, along with its wholly-owned subsidiary Gatehouse Capital Inc., provide the following corporate and fund update for investors.

Change of Control of Ark

On August 31st, 2009, Redwood, in a share exchange, acquired all the outstanding shares of Ark Financial Holdings Ltd., the parent company to Ark Fund Management Ltd. ("Ark"). Consequently, Redwood became the indirect owner of Ark through its ownership of Ark Holdings. Ark was the manager and promoter of the Ark Mutual Funds and other investment funds, and was the trustee of those funds structured as trusts.

Gatehouse Acquisition

As previously announced in a press release issued on October 2, 2009, Redwood acquired Gatehouse Capital Inc. ("Gatehouse") in a share purchase deal which closed on December 31, 2009. Gatehouse is the manager of TIS Preservation & Growth Fund, which is portfolio managed by the TIS Group in Minneapolis, Minnesota, and is the manager of Global Credit Pref Corp. (TSX:GPA.PR.A), a closed-end structured product listed on the TSX.

Subsequent Amalgamation of Ark and Redwood

On January 1, 2010, Redwood, Ark Holdings and Ark moved to simplify their corporate structure by amalgamating. The newly amalgamated entity continues as manager and, where applicable, trustee of the Ark Mutual Funds and the Redwood Funds under the name "Redwood Asset Management Inc.".

The amalgamation brings together two experienced fund management teams and results in a fund manager with increased capitalization and resources, which will enable it to raise new assets in the funds, thereby allowing for greater profile in the market place. With this increase in asset size, there is the potential for increased economies of scale in operating each fund, as the operating costs will be spread across a larger asset base.

Fund Change

As previously announced on January 25, 2010, Redwood has entered into an agreement whereby Trapeze Asset Management Inc. has become the portfolio manager of Ark Aston Hill Opportunities Class. The Fund has also changed its name to Trapeze Value Class.

Trapeze Asset Management Inc. ("TAMI") is a Toronto-based investment manager. Since its inception in 1999, TAMI has followed a value investment approach and an investment process which combines macroeconomic and general market analysis with a bottom-up approach which emphasizes security selection backed by its fundamental research. Together with its affiliated investment dealer, Trapeze Capital Corp. ("TCC"), TAMI and TCC have in excess of CDN $500 million of assets under administration.

Management of Redwood

The names, municipalities of residence, offices held with Redwood and principal occupations of the directors and officers of Redwood are as follows:



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Name and
Municipality Position
of Residence with Redwood Principal Occupation
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Jonathan Clapham Director, Chief Executive
Toronto, Ontario Chief Executive Officer of the Manager
Officer
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Peter Shippen Director, President President and Chief
Toronto, Ontario and Chief Financial Financial Officer of
Officer the Manager
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Brian Petersen Director President of
Calgary, Alberta Versant Partners Inc.
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Gian Delzotto Director President of IPI Corp.
Toronto, Ontario
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Jonathan Clapham is currently the Chief Executive Officer and a Director of Redwood Asset Management Inc. He formed Redwood in December 2002. He began his career in the financial services industry at BMO Nesbitt Burns, where he was employed as an Investment Representative and Investment Advisor from May 1996 to June 1997. From June 1997 to September 2001, Mr. Clapham served as the Vice-President, Sales, for Clarington Capital Management Inc. In 2002, Mr. Clapham served as the head of sales for Ascendent Fund, a market-neutral arbitrage fund. Mr. Clapham is a graduate of York University.

Peter Shippen is currently the President, Chief Financial Officer and a Director of Redwood Asset Management Inc.. He was an executive officer and a Director of Ark Fund Management and its affiliated entities from September, 2007 until its amalgamation with Redwood on January 1, 2010. From July, 2002 until August 2007, Mr. Shippen worked at TD Waterhouse Canada Inc., most recently as Vice President, Fund Research and Product Due Diligence. Prior to his role with TD Waterhouse, Mr. Shippen held increasingly senior positions in the Investment Fund Research Group at BMO Nesbitt Burns, including that of Investment Fund Analyst. Mr. Shippen is a CFA Charterholder, holder of the CAIA designation and earned a BA, Economics from Wilfrid Laurier University.

Brian Petersen has over 20 years investment banking experience and has been President of Versant Partners Inc. since September, 2009. From October, 2007, Mr. Petersen was founder and Managing Director of Petersen Capital Corporation, a firm that merged with Versant Partners in September, 2009. From March, 2005 to October, 2007, Mr. Petersen was a director with Cormark Securities. Prior to his tenure at Cormark, Mr. Petersen had a 16 year career with RBC Capital Markets.

Gian Delzotto is and, since January 2002, has served as President and co-founder of IPI Corp. (formerly, Pinga Investment Corporation), an investment company with interests in certain Canadian financial and technology companies. Mr. Delzotto has served as a director of Redwood Asset Management Inc. since July 2008, and previously from February 2004 to June 2007.

Current Fund Line-Up

Redwood now operates mutual funds under the Ark and Redwood banners. Below is a current list of the Redwood and Ark mutual funds:



Lead Manager/Sub-
Mutual Fund Name Portfolio Adviser Advisor
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Ark Aston Hill Energy Catapult Financial
Class Management Inc. Joanne Hruska, CFA
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Ark Aston Hill Monthly Catapult Financial
Income Class Management Inc. Benedict Cheng, CFA
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Ark Catapult Energy Catapult Financial
Class Management Inc. Joanne Hruska, CFA
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Ark NorthRoad Global SciVest Capital NorthRoad Capital
Fund Management Inc. Management
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Ark Stonecastle Stable StoneCastle Investment
Growth Class Management Inc. Bruce Campbell, CFA
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Redwood Diversified
Equity LDIC Inc. Michael Decter
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Redwood Diversified
Income LDIC Inc. Michael Decter
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Redwood Global Small
Cap LDIC Inc. Michael Decter
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Trapeze Asset Randall Abramson,
Trapeze Value Class Management Inc. CFA
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Through all these corporate changes and the one change in portfolio adviser, Redwood has remained focused on providing the highest quality investment management products to its clients. It continues to focus on offering funds in a number of investment categories, including monthly income, equity and market neutral, as part of a portfolio solution for investors.

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