Mackenzie Financial Corp. has launched the Mackenzie Long/Short Equity Fund, a multi-manager fund of long/short equity hedge funds.

The fund, available for sale since December 21, is designed to deliver equity-type returns with lower correlation to the market than traditional long-only equity portfolios. Tremont Investment Management, Inc. has been retained as the advisor to the fund.

Long/short equity is a common hedge fund strategy that invests in equities on both the long and short sides of the market. Though long/short funds are generally long on a net basis, managers can adjust their exposure over time to take advantage of opportunities. Just as managers can research companies to anticipate a rise in their stock price, this same analysis can also reveal potential downfalls in performance that can benefit investors holding a short position.

“Hedge funds have gained broad acceptance in the Canadian market over the last five years,” said Phil Cunningham, president, Mackenzie Financial Services Inc. “The launch of Mackenzie Long/Short Equity Fund underlines our clients’ interest in this type of product – something that is distinctive in the market and focused on returns.”

The Mackenzie Alternative Strategies Fund, a multi-manager fund of hedge funds that is also managed by Tremont, was launched January 2001, and has returned 8.1% over its first year, while attracting $110 million in assets.

In a similar arrangement to the Mackenzie Alternative Strategies Fund, Tremont will handpick and manage the Mackenzie Long/Short Equity Fund portfolio of hedge fund managers. The management teams will be selected for their various expertise in growth or value investing, different geographic areas, market sectors and capitalization sizes.

Though Mackenzie Long/Short Equity Fund has an investment minimum (required under varying provincial laws) between $97,000 and $150,000, this amount can be decreased under certain circumstances.

Ontario residents who qualify as ‘Accredited Investors,’ and British Columbia residents who qualify as ‘Sophisticated Purchasers’ may make initial minimum investments of $25,000.