AIC Limited is launching its first hedge fund. The goal of the AIC American Focused Plus Fund is to capitalize on current market volatility and market inefficiencies. The Fund is on sale starting September 24, 2001.

The AIC American Focused Plus Fund does not face the same restrictions as other traditional retail mutual funds, says the company. The fund may take large positions in individual securities – in excess of 10 per cent of the fund – and may also employ techniques such as long and short positions and the use of leverage.

The new AIC American Focused Plus Fund will be managed by Larry Sarbit, senior VP and portfolio manager, AIC Limited. Sarbit currently manages AIC American Focused Fund and brings with him more than 20 years mutual fund experience.

“The AIC American Focused Plus Fund allows us to behave as genuine business investors,” says Sarbit. “Because it is not limited by the 10 per cent rule, the Fund can hold concentrated positions in truly exceptional companies as can true business owners. Plus, the Fund can use a variety of investment techniques such as shorting to profit from market inefficiencies in order to enhance Fund performance over the long run.”