Star Hedge Managers Corp T.XHM.A

Star Hedge Info - First Post

[nambu]

Took a peek at this at IPO and waiting for shakeout and for NAV to be in better value than the $10 issue price - and a bit of volume / depth might be nice too.

To sum up this is how you get exposure to a few famous (infamous) Canadian hedge funds without putting up the dough. Sprott, Front Street and Dynamic hedge products are held in the unit... prospectus here:

https://www.bmocm.com/bmosp/closedendfunds/starhedge/images/Star_Hedge_Prospectus_English.pdf

Star Hedge Managers was pretty ballsy to offer up a 75mil IPO of this kind of risk product this September during the worst downturn possible - but there might be a method to the madness. IPO newswire here:

https://www.newswire.ca/en/releases/archive/September2008/29/c9300.html

So this is definely on the watch list - accumulating it here on the cheap this season might be a pretty killer opportunity (hehe or killer period - some risk here) to get at those hedges without huge outlays - admittedly this packaged unit has fee structure but not exorbitant compared to some smaller hedges.

Still can't find any analyst coverage or new commentary but will post if I do.

A caveat is that IPO buyers got a warrant with unit as well at $10.35 ex by October 2009 - this warrant overhang will have little or no effect if pricing falls now 20% or more lower than issue at sub $7 but could dent next year's upside over $10 range IMHO. If there was a bit of volume, the warrant might actually present a nice trade - should split out soon as XHM.WT and might go cheap if hedge market takes a sh*t kicking.