Making Money in a Market Storm


Location Date: 
August 8, 2011
Content: 

As volatility spikes and markets sink around us, a well-run market neutral fund is something that everyone should take a close look at. One great example is the Curvature Fund run by James Hodgins and Geoff Phipps, which invests in the small-mid-cap North American market. Curvature often benefits from both rising volatility and negative correlation as we are experiencing now.

For example, on the day of the flash crash last May 6, 2010, the Curvature Fund was up approximately 45 bps gross. Last Friday, August 5, was no different – the Curvature Fund was up approximately 55 bps gross. As of 2:20pm today, they are up approximately 85 bps gross.

James Hodgins has been featured on BNN several times over the last few months, and was featured on Market Call last Friday night. As you can see in the replay, James discusses how he has been bearish since April, and how they have managed the portfolio to achieve positive monthly returns each month since then. James also discusses how he thinks that the realities of the U.S. situation is not yet priced into the market.

Part one: http://watch.bnn.ca/#clip512616

Part two: http://watch.bnn.ca/#clip512619

Part three: http://watch.bnn.ca/#clip512620

For more information, please contact your regional Arrow representative, or visit our advisor site at: http://www.arrow-capital.com/Home.aspx

Jim McGovern
 


Disclaimer:

Unless otherwise stipulated returns are net of all fees, in Canadian dollars, reflect class “A” units and assume reinvestment of all distributions. Sub-advisor direct fund fees may vary from Arrow funds. This document is not to be construed as a public offering of securities in any jurisdiction in Canada. The offering of units of the Fund is made pursuant to the Offering Memorandum only to those investors in all jurisdictions of Canada who meet certain eligibility of minimum purchase requirements. Important information about Arrow Funds, including statement of each fund’s fundamental investment objective, is contained in their respective offering memorandum, a copy of which may be obtained from Arrow Capital Management Inc. Please read the applicable offering memorandum carefully before investing. The information and materials in this document are for informational purposes only. They are not intended as investment, financial or other advice. The information included in this document is not an offer to sell. While the information and material in this document are believed to be accurate at the time they are prepared, Arrow Capital Management Inc. (and its affiliates, subsidiaries or sub-advisors) cannot give any assurance that they are accurate, complete or current at all times. Past returns are not necessarily indicative of future performance. Actual results will vary. This document is confidential and is intended solely for the information of the person to which it has been delivered.