Experience. Intelligent Investing.

FEBRUARY 2016
The Hirsch Performance Fund was down -2.41% for
the month of February.
Februarys short squeeze of over-sold commodity
stocks has meant Canada is finally leading global
markets higher (along with other resource-based
markets) after under-performing for 5 years running.
It is unlikely that we have seen the end of volatility
or that we can avoid a lengthy bottoming process,
but I suspect we might have seen the nadir in the
resource sectors. Investors might decide that we are
close enough to the trough in the energy market
and thus it might be wiser to start accumulating
long positions rather than face another painful
short squeeze.
Now that stock markets seem to have found a
bottom, I cant stop obsessing about the U.S.
presidential election. I am no political expert, but
there seems to be some statistical probability that
Donald Trump might make it into the White House.
Because I dont feel comfortable sharing my political
views, I have decided to quote Meg Whitman, CEO of
HP, who bashed Trump as a dishonest demagogue
who plays to our worst fears while stating: The
country needs a thoughtful, experienced leader
with the temperament to unite the American
people, and Trump is not that person.
As Canadas neighbor and largest trading partner, I
worry about the uncertainty of Trumps policies if he
were to become President. Markets were extremely
difficult to navigate in the last 6 months despite a
predictably ineffective President Obama. How will
investors be able to assess future course of markets
with an unpredictable leader? As you know, I
have been relying on investments in Canadian
companies with operations outside Canada -

HIRSCH PERFORMANCE FUND

predominantly in the U.S. If I am unable to make
sensible assumptions about the U.S. economic and
political climate, I will have to rethink my strategy.
There will be many twists and turns in the 8 months
leading up to the U.S. presidential election. Given
my apprehension, I have covered all Canadian ETF
shorts (and most Canadian stock shorts) with a view
of focusing on U.S. short positions as opportunities
arise. Arrow has begun formulating a Trump
portfolio during our weekly investment meeting.
Despite its beginning as a tongue-in-cheek exercise,
I have to admit to getting some useful ideas.
One of the consequences of a Trump victory might
be foreign capital sitting on the sidelines until
investors get a better feel for President Trump. That
might translate to relative CAD strength, especially
if commodity prices are on the rise by then. Again,
I am not suggesting investors abandon the largest
and most dynamic market on the planet, but
perhaps we are looking at a temporary pause in the
money flow.
What happens under President H. Clinton? Status
quo.
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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