KBSH Capital Management Inc. and Goodwood Inc. have announced a joint venture between the two firms. KBSH will become the sole distributor of Goodwood’s investment products in the Canadian institutional marketplace.

The KBSH Goodwood Canadian Long/Short Fund, which was recently introduced to the Canadian marketplace, is the first product offering by KBSH in the fast growing alternative asset category.

The collaboration of KBSH. and Goodwood. provides one of the strongest product offerings in the hedge fund arena to date. The KBSH Goodwood Canadian Long/Short Fund is specifically designed to help clients meet their investing needs through an excellent alternative asset class.

The fund will invest in both long and short positions, through the purchase and sale of primarily Canadian securities, where it foresees opportunities with superior potential and reduced risk. The primary objective of the fund is to deliver enhanced returns while minimizing overall portfolio volatility under all market conditions.

Goodwood’s ability to generate superior and consistent absolute rates of return has resulted in a five star ranking from the Globe and Mail over the last five years. Their compound annual rate of return 31.2% (after fees) from their inception in October 1996 to Dec. 31, 2001 has been achieved in a very risk controlled fashion with no derivatives, minimal use of leverage and with a value-based investment process. The very low correlation of returns with Canadian and U.S. equity markets makes this fund a valuable offset to traditional asset classes.