MAXXUM Financial Services Co. is introducing the Quantum Aggressive Market Neutral Equity Fund. This hedge fund is designed to produce competitive returns while helping to shelter investor portfolios from equity market volatility.

The fund’s “market neutral” quality comes from sophisticated risk management techniques and a structure that includes both long and short portfolios. “A fund that is truly market neutral has little or no correlation with the overall equity indices — that is, it will not necessarily move with market fluctuations,” said Quantum lead manager Dr. John Schmitz. “So, adding the Quantum Fund to an existing equity portfolio provides tremendous diversification value and a degree of wealth protection.”

The fund fills a growing need among Canadian investors said John Wood, president and CEO of MAXXUM. “Hedge funds are moving into the mainstream of investments as people recognize that, firstly, they are not all alike, and secondly, they can help achieve superior risk-adjusted returns,” said Wood.

“When combined with a traditional portfolio of equities and bonds, these funds can increase overall returns while substantially lowering the risk associated with market volatility,” Wood added.

The Quantum Aggressive Market Neutral Equity Fund is a pooled fund trust sold by offering memorandum. The minimum investment ranges from $25,000 to $150,000, consistent with provincial regulations for prospectus-exempt products. Staring today, the fund is available through broker-dealers, discount brokers and other financial intermediaries.