Polar

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Polar
Canadas most experienced hedge fund manager.
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Polar Securities Inc.
Securities

• Introduction

• Founded in 1991 Ten year track record and
  infrastructure
• Manage 91.5 million (US) All funds have
  capacity
• NORTH POLE CAPITAL INVESTMENTS
• broadly diversified, multi-strategy hedge fund
• 17.6 in 2001 18.6 annual return (Oct. 1991)
• ALTAIRIS OFFSHORE
• long/short market neutral equity hedge fund
• 20.3 in 2001 28.9 annual return (Sep. 1997)

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Altairis

• Objectives

• Market neutral and managed industry exposure
• Stock selection based on fundamental research
• Returns come from superior stock selection
• Both long and short
• Low volatility
• Monthly standard deviation 1.9,
• Sharpe Ratio 2.2
• Target returns 16 - 20

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Altairis

• Altairis Monthly Returns in US (net of fees)

Returns from Aug. 97 to Dec. 00 are converted
from Cdn to US based on month end f/x rates.

From Jan. 01 onwards,
returns are reported in US
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Altairis

• Portfolio Characteristics

Health Care Business Services Consumer Staples
Financial Industrial Consumer
Cyclical
Technology Biotechnology
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Altairis

• Strategy

• Seek valuation extremes that revert to normal
  valuations
• Focus Points
• Price to sales
• Operating margins
• Cash flow and balance sheet metrics
• Accounting issues
• Rising inventories and receivables (vs. sales)
• Positive earnings with negative cash flow
• Long characteristics
• Potential for multiple expansion e.g. busted
  growth
• Good operating margins and growth potential
• Short characteristics
• Aggressive accounting
• Potential for multiple compression