Arrow Hedge Partners Inc. and Epic Capital Management Inc. are teaming up to launch the Arrow Epic Capital Fund. The investment objective of the fund is to generate absolute returns through buying and shorting Canadian listed securities.

The managers will select long and short positions on the basis of intensive fundamental research, both at the company and industry level. The managers will also use risk arbitrage to exploit the mis-pricing of securities on company merger or takeover deals.

The minimum investment levels for the Arrow Epic Capital Fund are $150,000 for all provinces in Canada, with the exceptions of accredited investors in Alberta, BC and Ontario, where the minimum is $25,000.

The establishment of the fund represents an exclusive distribution agreement between Arrow Hedge and Epic Capital. Arrow Hedge will assist in marketing the fund to sophisticated high net worth investors and institutional investors, while Epic Capital will advise the portfolio.

“Arrow Hedge’s mission is to provide clients with access to high quality hedge funds and multi-managers funds that provide superior absolute performance with lower levels of risk. The addition of Epic Capital’s specialized hedge fund expertise is a key addition to our core multi-strategy fund of funds,” said Jim McGovern, Arrow’s managing director and CEO in a news release.