News and Media

Thursday | Apr 1, 2010 10:43 AM

NewGen Asset Management is pleased to announce the launch of the NewGen Mining Fund LP as of April 1, 2010, an open-ended investment vehicle for Canadian Accredited Investors. The Fund will be managed under the same mandate as the NewGen Mining Fund SPC- i.e. “to achieve superior, long-term, absolute returns on strategic investments within the global mining industry”. The Manager believes that the convergence of cyclical and secular forces has created an historic investment opportunity and that there is considerable appetite for a new specialty mining Fund to efficiently capitalize on this market potential.

The Fund will implement a disciplined management strategy driven by in-depth fundamental and quantitative research designed to identify high-quality investment opportunities at optimal points along the development curve. Targeted investments will include advanced explorers, emerging developers and high-growth producers across all market capitalizations. Investments must offer (1) world class projects; (2) strong catalysts; (3) proven management teams; and (4) takeover potential (low cost, large-scale, stable jurisdiction).

A concentrated portfolio of 30-40 high-conviction holdings will be actively managed. Downside risk will be mitigated though a combination of hedging strategies and active portfolio management, while liquidity will be closely monitored. Net exposures will be frequently adjusted in accordance with market conditions and typically range from 50-150%.

The NewGen Mining Fund LP has a minimum subscription of CAD$50,000. It will be priced monthly, have no minimum lock-up and no initial subscription or redemption fee. The management fee is 1.8% per year and a profit allocation of 20% (hurdle rate – CAD 1-yr risk free rate) is payable to the NewGen Mining Fund GP.

“On the back of the success of our offshore Fund, we are extremely excited to launch a Canadian Fund in what promises to be a high-growth year for global commodity equities. The NewGen Mining Fund LP is a vehicle through which investors can gain exposure to a concentrated and actively managed portfolio of high-quality, catalyst-driven companies with world class assets. We believe that this investment will be attractive to those who wish to benefit from the broad idea generation network and experience that the NewGen team has built over numerous years in Canada and abroad.“

David Dattels
President and Portfolio Manager

NewGen Asset Management Limited
Commerce Court North, Suite 2900
25 King Street West, P.O. Box 405
Toronto, ON, Canada M5L 1G3
Phone: 416-941-9111 Fax: 416-941-0012
Email: ddattels@newgenfunds.com
Website: www.newgenfunds.com