Experience. Intelligent Investing.

APRIL 2016

HIRSCH PERFORMANCE FUND

The Hirsch Performance Fund was up 1.96% for the month of May, bringing YTD performance to
-2.22%.
We are barely two weeks away from the UK referendum on European Union (EU) membership. Apart
from recent British Pound volatility, markets seem sanguine about the possibility of Brexit, despite
the adverse effects such vote would have on the euro-zone economy and its financial sector. The
fact that the U.S. presidential election has deteriorated into a circus also seems to have little effect
on the markets for now. On the other hand, investors have been paying ample attention to Chair
Yellens alternating hawkish/dovish posture on the timing of the next interest rate hike. However,
in the absence of a clear message, U.S. equity markets have climbed back very close to previous
highs. At some point in the near future, markets should decisively break-out. The alternative would
be the resumption of current trading range with the implication of some unpleasant corrective
bouts.
None of the above inspire confidence in me, but as promised I have been beefing up resource
positions while slowly chipping away at the cash. My strategy has been two-fold. I have been
focused on increasing positions of my favorite core quality companies [energy example: CNQ, RRX
/ gold example: DGC]. However, I have also taken advantage of increased volatility to trade stocks I
consider non-core [energy example: POU, TRP / gold example: YRI]. This strategy provides me with
a much bigger pool of stocks to pick from and allows me to be more active without having to wait
for specific opportunities.
In the current environment markets have become reactionary and short-term focused, increasingly
driven by technical factors such as price momentum. Most sectors have been affected, however
volatility is always most pronounced in the resource sectors. Beefed up resource weightings
allow me to take advantage of daily price volatility better than my previous, much more thematic
approach.
Thank you for your continued interest in the Fund. For further information, please contact your
regional Arrow Capital Management representative.
Sincerely,
Veronika Hirsch
Portfolio Manager
Arrow Capital Management Inc.

Commissions, trailing commissions, management, performance and other fees may be associated with this investment. Investors should read the offering memorandum before investing. Unless otherwise stipulated returns are for
Series A units in Canadian funds. Except as otherwise noted returns are historical compounded total returns including changes in the unit value and reinvestment of all dividends or distributions and do not take into account the sales, redemption, distributions or optional charges or income tax payable by the investor that may affect the compound growth
rate and are not intended to reflect the future value of the fund. Past performance may not be repeated. Offering of units
in the Hirsch Performance Fund are made pursuant to the Confidential Offering Memorandum (OM) only to those investors who meet certain eligibility or minimum purchase requirements. Important information, including the funds fundamental investment objective is contained in the OM which may be obtained from Arrow Capital Management Inc.
36 Toronto Street, Suite 750 Toronto, Ontario Canada M5C 2C5 Tel: 416.323.0477 Tel: 1.877.327.6048 Fax: 416.323.3199 www.arrow-capital.com

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