BluMont Capital Inc.

BluMont Capital Inc.

May 20, 2005 09:57 ET

BluMont Man Multi-Strategy Series 5 Notes Close at C$ 27.9 Million

TORONTO, ONTARIO--(CCNMatthews - May 20, 2005) - BluMont Capital Inc. (TSX VENTURE:BCC) is pleased to announce that its wholly-owned subsidiary, BluMont Capital Corporation ("BluMont Capital"), has raised C$ 27.9 million on the closing of the BluMont Man Multi-Strategy Series 5 Notes ("Series 5 Notes") - a multi-manager, multi-strategy product with a 110% repayment at maturity, guaranteed by Citibank Canada.

With the aim of delivering double-digit annual returns with lower than equity market volatility, the Series 5 Notes are modeled upon the original Man Multi-Strategy Guaranteed Limited fund (not available to Canadian investors), which has an impressive four-year track record of positive returns each year since its July 2000 inception and an annualized net return of 10.0% as of February 28, 2005.

Initial capital invested in the Series 5 Notes will be allocated to a wide range of alternative investment strategies that can be categorized into six broad styles - managed futures, arbitrage, fund of hedge funds, equity hedge, long/short equities and directional. These strategies have historically demonstrated low correlation to each other and to traditional investments, meaning the Series 5 Notes have the potential to enhance portfolio returns, reduce overall risk and provide valuable diversification benefits irrespective of how the markets perform.

In addition to providing a guaranteed return of 10% at Maturity and principal protection by Citibank Canada, the Series 5 Notes provide up to C$150 of investment exposure for every C$100 of initial capital invested. The offering was made available to investors for a minimum investment of only C$5,000.

The BluMont Man Multi-Strategy Notes program is part of BluMont Capital's strategic alliance with Man Investments ("Man"), one of the world's largest independent alternative investment managers. The closing of the Series 5 Notes brings the total assets raised in the BluMont Man structured products program to approximately C$ 400 million.

"A great effort in a difficult market environment" says John M. Kelly, President & CEO, Man Investments Inc. "My experience has been that investors who invest during difficult periods could be relatively better positioned than those who invest during good times. We look forward to an exciting product development program in Canada with Blumont over the coming years."

"Given recent market conditions, we are very pleased with the success of the BluMont Man Multi-Strategy Series 5 Notes offering," said Toreigh Stuart, Chief Executive Officer of BluMont Capital. "It reinforces investors' demand for alternative investment products that have the potential to enhance both return and diversification within a traditional portfolio. As a result, we intend to introduce subsequent BluMont Man structured products to meet this continued demand."

About BluMont Capital

BluMont Capital is a leading provider of alternative investment products to Canadian investors. Specializing in hedge funds, the firm offers investors innovative investment solutions that provide enhanced diversification and robust return potential. Established in 2000, BluMont employs 50 people nationwide and has approximately C$700 million in assets under management. BluMont is 46.1% owned by Toronto-based Integrated Asset Management Corp. (TSXV:IAM), a leading alternative asset manager with over C$2.6 billion in assets under management and commitments. Further information on BluMont Capital can be found at

About Man Investments

Man Investments is an independent and global leader in alternative investments, providing innovative products and tailor-made solutions for private and institutional clients. Established in 1983, Man Investments has launched approximately 450 products worldwide, many with leading financial institutions. The firm manages $43.0 billion (as of March 31, 2005) and employs more than 1,100 people worldwide, with offices in Chicago, Switzerland, London, Hong Kong, Dubai, Montevideo, New York and Tokyo.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • BluMont Capital
    Toreigh N. Stuart
    President and Chief Executive Officer
    (416) 216-3566
    BluMont Capital
    Bryan A. Nykoliation
    Vice-President of Marketing
    (416) 202-6695