Tremont Capital Opportunity Trust

Tremont Capital Opportunity Trust

March 29, 2007 20:49 ET

Tremont Capital Opportunity Trust of Canada Announces Results of Special Meeting of Unitholders

TORONTO, ONTARIO--(CCNMatthews - March 29, 2007) - At a special meeting of the unitholders of Tremont Capital Opportunity Trust (TSX:TT.UN), an Ontario trust with assets of approximately C$10.5 million as at January 31, 2007, called by its Canadian trustee and manager, Tremont Capital Management, Corp., a New Brunswick company, the unit holders approved two resolutions proposed by the Trustee.

The unit holders approved the early termination of the Trust and the forward purchase and sale agreement with TD Global Finance, as well as the termination of the annual redemption right attached to units of the Trust.

The Trustee has determined, in the exercise of its powers, that it is in the best interests of the unit holders that the Trust be wound up and its net assets distributed to unit holders prior to its original scheduled termination date of March 29, 2013. In making this determination, the Trustee has relied on a number of factors, including the unanticipated flow of redemptions from the Trust and increasing regulatory and operational costs. The resulting smaller investor base has made it increasingly difficult to pursue the achievement of the investment objectives originally established by the Trust. As part of the early termination of the Trust, the Trust will pay the required fee to TD Global Finance due upon the early termination of the forward agreement.

In accordance with the above, the Trust will be dissolved as soon as possible, which is currently expected to be on or about August 15, 2007. On termination of the forward agreement, the Trust will be entitled to receive, in consideration for the common share portfolio held by the Trust that is the subject of the forward agreement, the proceeds realized by the counterparty pursuant to the redemption or sale of all outstanding notes of Tremont Hedge Fund Limited, a Cayman Islands exempted company formed at the same time as the Trust, to which the Trust gains exposure by virtue of the forward agreement. On dissolution of the Trust, all outstanding units will be redeemed and all trust property remaining after paying or providing for all liabilities and obligations of the Trust, including all costs associated with the wind-up of the Trust and the fees and expenses incurred to settle the forward agreement, will be distributed pro rata among the unitholders.

The trustee expects that the units will thereupon be de-listed from the TSX at the close of business on or about the dissolution date.

Tremont Capital Management, Corp., acting as Trustee, is the Toronto-based affiliate of Tremont Group Holdings, Inc., which manages U.S. $5.9 billion in hedge fund of fund assets worldwide.

Tremont Capital Management, Corp. is the Canadian subsidiary of Tremont Group Holdings, Inc. Formed in 1998, Tremont Capital Management, Corp. provides fund of hedge fund investment management and advisory services to the Canadian marketplace.

Contact Information

  • Tremont Capital Management, Corp.
    Craig Dewberry
    141 Adelaide Street West, Suite 1661
    Toronto, ON, M5H 3L5
    (416) 360-3395