Hedge Fund Reader : All Eyes on Canadian Hedge Funds

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June 15, 2006

All Eyes on Canadian Hedge Funds

It’s happening quietly, but it’s taking place all the same – the Canadian hedge fund industry is becoming the cynosure of US investors and Wall Street banks. While overseas investors are looking at the hedge fund firms’ know-how in oil and mining, Wall Street hopes to expand its brokerage business by either starting new outfits or by tying up with existent hedge fund managers. Although Canada is a relative newcomer to the world of hedge funds, the Canadian chapter of the Alternative Investment Management Association estimates the value of the Canadian hedge fund industry to be C$ 35 billion, and growing at a healthy clip. Reuters Canada reports:

"There's some very good investment talent here that is, just now, starting to get recognized internationally," said James McGovern, chief executive of Toronto-based Arrow Hedge Partners Inc., which manages more than C$650 million ($585.6 million). "I think we're going to see a lot of the growth in these managers come via international allocations over domestic allocations (of assets)."

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June 15, 2006 in Emerging Markets | Permalink