August 8, 2010

For my clients only

As part of the effort to put together a complete portfolio that best meets your specific needs, I am constantly searching for products that can help you realize your investment goals.  The most important aspect of any investment made on your behalf is ensuring I understand what the product is designed to do. Once that is established, I analyze the investment’s historical performance, get to know the portfolio manager and become familiar with his or her investment process.

One investment that I have been following for the past several years is hedge fund Dynamic Alpha Performance Fund. The concept of a hedge fund dates back more than 60 years; the original intention of such funds was to take on long exposure in the market and offset that with short exposure in order to help protect a portfolio during times of market correction.  The ability to maintain both long and short positions in the market grants a fund the potential to reduce total volatility while at the same time remaining focused on long-term growth potential. This is what I mean by a hedge fund that hedges.

With Dynamic Alpha Performance Fund, portfolio manager Noah Blackstein can take long exposure, short exposure and hold high levels of cash. This flexible approach allowed the Fund to not only weather the challenging environment of 2008, but also participate in the recovery of 2009.  In fact, the Fund has posted positive annualized returns for each of the past 1-, 2-, 3-, 5- and 7-year periods.[1] With equity volatility likely to persist for the foreseeable future, we believe an active investment approach is critical and this fund allows the manager to use various tools to exploit both the long and short sides of the market to generate returns.

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There are two additional reasons I am discussing this Fund with certain accredited investors, and those are the Fund’s low initial minimum investment of $5,000 and its Series T purchase option which provides a fixed monthly distribution based on a 5% yield.

I look forward to discussing the advantages of this investment with you shortly and have enclosed a Dynamic Alpha Performance Fund commentary and fact sheet, as well as a biography of the portfolio manager, Noah Blackstein, for your review in advance of our meeting.

Michael Arbetov, CFP, FMA

Information contained herein pertaining to the Dynamic Alpha Performance Fund (the “Fund”) is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of the Fund is made pursuant to its Confidential Offering Memorandum ( the “OM”) only to those investors in jurisdictions of Canada who meet certain eligibility and/or minimum purchase requirements. Important information about the Fund, including a statement of its fundamental investment objective, is contained in the

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[1] Annualized returns as at February 28, 2010: 1-yr: 9.5%, 2-yr: 6.7%, 3-yr: 4.6%, 5-yr: 8.4%, 7-yr: 8.9%

OM., Eligible investors should read the OM carefully before investing. Investments in the Fund are not guaranteed, their values change frequently and past performance may not be repeated.