RE: RE: So what you think ?
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When I look at Hugh's portfolio, I see that every single one of his core positions is a stronger company now than it was before entering the worst global recession since the Great Depression,
I'm not sure how that gentleman can make the above statement with a straight face considering that Vendtech was one of the core positions...and it's been suspended from trading since February 11/09 for accounting irregularities...and even its management are unable to give any guidance as to when it will be reinstated.
In light of the following ...it's not hard to see why Northern Rivers and Hugh were in need of a life line!!
Wednesday, December 16, 2009 6:16 PM
BluMont Capital snaps up Northern Rivers
Shirley Won
Consolidation is continuing in Canada’s hedge fund industry.
BluMont Capital Corp. has struck a deal to acquire Northern Rivers Capital Management Inc., which has had a rough ride after last year’s stock market collapse.
There were no financial details of the transaction between the two private companies that is expected to close in February – the key month in the registered retirement savings plan (RSSP) season.
In January, Northern Rivers suspended redemptions for up to two years in its flagship hedge fund Northern Rivers Innovation LP. It lost 66 per cent last year, and is up 7.5 per cent for the first 11 months of this year.
That fund was invested in smaller companies and illiquid private securities. Meeting redemption requests would have meant the forced selling of investments, manager Hugh Cleland said at that time.
Fernando Morales/The Globe and Mail
Hugh Cleland, hedge fund manager at Northern Rivers Capital Management
Northern River has also slashed its performance fee by half on the Northern Rivers Innovation Fund and its RRSP version until they reach the high water mark achieved in April, 2007. These funds were eligible for a performance fee if they earned more than 2 per cent per quarter because its high-water mark is reset annually.
BluMont is a subsidiary of Toronto-based Integrated Asset Management Corp. which was established in 1998, and has more than $2-billion in assets under management.
“We believe that this transaction is in the best interests of our clients, who should benefit significantly from being served by a larger organization with a direct and wholesale sales force, substantial balance sheet and ample resources,” Northern Rivers president Robert Blakely said Wednesday.