Zurich-based Systematic Absolute Return AG to launch green FoHFs

Having researched environmental or ‘green’ investments for the past 12 months, SAR has completed its rigorous due diligence and has set a January 1st , 2008 launch date for a unique new environmental fund of hedge funds.

The SAR Environmental Fund is unleveraged and targets absolute returns above 15% net for investors, with limited correlation to general debt and equity markets.

SAR is a Zurich-based asset manager founded by Arne Schmidt and Michael Ahrndt in 2001. They currently manage two distinct funds of hedge funds. With regard to the positioning of the fund, Mr. Schmidt states, “This absolute return product differentiates itself in this burgeoning space through active hedging, a truly environmental character and the exclusion of venture capital investments from the universe.” The fund maintains global exposure and a diversified sector approach.

This space is already becoming a key investment theme and is set to offer superior growth rates and outperformance for decades to come. Climate change, population growth, water scarcity, increased pollution and expanding energy demand create an environment that will drive returns across short, medium and long-term investment horizons.

This innovative product is positioned to extract alpha from a variety of investment strategies such as renewable energy, clean technology, carbon finance, water, agricultural and timber projects as well as ecological microfinance.

Returns on a pro-forma basis were 26.75% in 2006 (launch Nov 06) and 24.54% YTD to October 07, with only one down month (24.91% annualised).

Mr. Schmidt will be conducting due diligence visits in North America during the first two weeks of December. If you wish to schedule a meeting or an interview with him or Mr. Ahrndt, please feel free to contact Andrew Perry at +41 43 268 8440, ir@sar-ag.ch