BluMont Capital Inc. has announced the results of the annual redemption privilege of BluMont Strategic Partners Hedge Fund. Unitholders of the fund elected to redeem 6,606,507 units reflecting $60.5 million ($9.15 per unit) of the fund’s Jan. 30, 2004 net asset value.

As previously announced, unitholders were provided with the opportunity to redirect their redemption proceeds on account of a subscription for the BluMont Man Multi-Strategy Series A Notes — a multi manager, multi-strategy product structure with a principal repayment guarantee by Citibank Canada. An aggregate of 2,308,541 units or $21.1 million have been redirected for Series A Notes. The net impact of the redemption and the redirection is an $81.6 million reduction in the net assets of the fund to approximately $68.1 million.

“Although the fund’s capital appreciation objective has not yet been realized at this time, the Fund has been quite successful to date in fulfilling its secondary objective of delivering lower volatility than the S&P/TSX Total Return Index.” said Toreigh Stuart, president and CEO of BluMont Capital. “With more than four years left in the life of the Fund, we are confident in its ability to deliver the quality of returns outlined in the dund’s objectives.”