BLUMONT STRATEGIC PARTNERS HEDGE FUND
TSX : BSP.UN

BLUMONT STRATEGIC PARTNERS HEDGE FUND

February 02, 2006 16:58 ET

BluMont Strategic Partners Hedge Fund Announce Results of Annual Redemption Privilege

TORONTO, ONTARIO--(CCNMatthews - Feb. 2, 2006) - BluMont Strategic Partners Hedge Fund (the "Fund") (TSX:BSP.UN) today announced the results of the Fund's annual redemption privilege. Unitholders of the Fund elected to redeem an aggregate of 1,889,533 units at the January 31 net asset value per unit of $12.14, reflecting a $22.9 million reduction in assets.

"It is ironic that this redemption comes at the fund's highest NAV. The fund has a total return of 29.34% since its launch in 2002 and we are extremely pleased with the Fund's last 12 months performance return of 19.21%" said Stephen Kangas, President of BluMont Capital. "The Fund continues with its mandate to achieve its objective of capital appreciation with lower volatility than the S&P/TSX Total Return Index."

The redemption requires the Fund to reallocate its assets among the various investment advisors. Given the current size of the Fund a decision was made to reduce the number of Investment Advisors to four, which provides adequate diversification potential. Consequently at a Board of Trustees meeting held February 2, 2006 a decision was made to terminate the investment advisory agreement with JC Clark Ltd.

Immediately following the settlement of the redemption activity, the percentage allocation to the remaining investment advisors will be: 31.5% to Sprott Asset Management Inc.; 26.5% to Hillsdale Investment Management Inc. 25.8% to Front Street Capital Inc.; and 16.2% to BluMont Capital Corporation.

About the Fund

BluMont Strategic Partners Hedge Fund is a closed-end fund, the primary objective of which is to achieve capital appreciation while managing risk through the use of a diversified hedged equity investment program that allocates assets across a diversified portfolio, using currently four distinct long/short equity hedge styles.

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 43 people nationwide and has approximately C$770 million in assets under management as of December 31, 2005. BluMont Capital is 46.1% owned by Toronto-based Integrated Asset Management Corp. (TSXV:IAM), a leading alternative asset manager with approximately C$3.0 billion in assets under management and commitments (www.iamgroup.ca). Further information about BluMont Capital can be found at www.blumontcapital.com.

Contact Information

  • BluMont Capital
    Stephen J. Kangas
    President
    (416) 216-3566