VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 26, 2014) - Inflection Management Inc. today announced that the Inflection Strategic Opportunities Fund ("Inflection" or the "Fund") delivered a net return of 10.34% in 2013, outperforming the Fund's benchmark indices and the TSX S&P Index.
The Fund's most relevant benchmark, the HFN Fund of Funds Multi Strategy Index, returned 9.11% for the year, and the Scotiabank Canadian Hedge Fund Index (Asset Weighted) was up 1.40% for the year, compared with Inflection's gains.
Since inception (October 2010), Inflection has produced a net return of 28.66%, outperforming the S&P/TSX Composite by 18.44%, the HFN Fund of Funds Multi-Strategy Index by 17.06%, and the Scotiabank Canadian Hedge Fund Index (Asset Weighted) by 28.12%.
"December provided a strong finish to another successful year for the Inflection Strategic Opportunities Fund," said Ari Shiff, Founder and Head of Fund Research. "Our Fund's performance demonstrates that healthy returns may result from taking on moderate risk and patiently seeking sources of overlooked value that are largely uncorrelated with the Canadian and US equities found in many investors' portfolios."
Equity long/short strategies and distressed and corporate debt strategies employed by Inflection were the main drivers of returns for 2013, with quantitative behavioral traders providing significant support. Looking forward, Inflection has increased convertible arbitrage and global macro allocations to continue to diversify and hedge against bouts of volatility.
Mr. Shiff added, "With so many Canadian investors exhausted by the volatility of their equity portfolios over the last five years, we have welcomed the strong interest we've had from investors looking to diversify and potentially improve their returns with alternative investments."
About Inflection Management Inc.
Inflection Management Inc. is a Portfolio Manager, Investment Fund Manager, and Exempt Market Dealer based in Vancouver BC. Inflection Management is registered as an Exempt Market Dealer in the provinces of Ontario, Quebec, Saskatchewan, Alberta, and British Columbia. Inflection's Founder and President, Ari Shiff, has over 25 years of experience in the financial markets with particular emphasis on hedge funds, special situations, mergers, and acquisitions. Trevor Giles, Inflection's VP Investments, has over 24 years of investment experience including hedge funds, private equity, foreign bonds, derivatives and publicly traded investments.
Inflection Management's flexible investment style and markets experience allows it to select what it believes are the most appropriate mix of strategies to suit diverse market conditions and to seek to opportunistically capitalize on near term trading opportunities.
About Inflection Strategic Opportunities Fund
The Inflection Strategic Opportunities Fund (the Fund) is a fund of hedge funds. It invests in a broad array of carefully selected and analyzed hedge funds in order to capitalize on dislocations and market opportunities. The Fund has a global mandate and focuses primarily on the Americas, Europe and Asia, providing access to the expertise of hedge fund managers in identifying what it believes are exceptional investment opportunities throughout the world. Some taxable investors may find that the Fund`s structure has significant tax benefits.
Data Source for Index/Fund Performance: Kaufman Rossin Fund Services. Fund performance numbers presented are blended net returns after investment management and performance fees which vary by class of unit. Index returns shown above are for general information purposes only. The returns stated reflect the most current data at the time of issuing this communication. Returns may be amended after we have reported these monthly numbers. These amendments may be due to repricing adjustments or receipt of more accurate data, among other things, and are reflected in the next period`s document. Past performance is not necessarily indicative of future performance. The HFN Fund of Funds index contains a wide variation of hedge funds that may limit its comparability to ISOF. ISOF is only available to Canadian resident investors who are Accredited Investors or meet certain other criteria. Please refer to ISOF's Confidential Information Memorandum for further information. Please seek professional investment advice before making any investment.
FOR FURTHER INFORMATION PLEASE CONTACT:
Inflection Management Inc.Ari Shiff
Source: Inflection Management Inc.