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Alternative Market Briefing

AlphaNorth Partners Fund up 19.1% in September, 138.7% YTD

Thursday, October 08, 2009

From the Opalesque team:

The AlphaNorth Partners Fund increased by 19.1% in September, bringing the YTD return to 138.7%. The Fund has recouped all of its 2008 losses (-53.3%) and generated positive returns for investors which are well ahead of the Canadian benchmarks. By comparison, the TSX Venture Index rose 8.7% in September (60.1% YTD) and the TSX Composite Index gained 5.1% (30% YTD).

Since inception in December 2007, the Fund has returned 19.6% as compared to -53.3% for the TSX Venture and -11.7% for the TSX Composite.

In a communication obtained by Opalesque, Steven Palmer, President and CEO comments "Over the past couple of months, we have been reducing exposure to some of our big winners and transitioning into new ground floor opportunities with more attractive risk/reward profiles. Winners during the month included AusPotash, one of our private company investments, which was taken over for roughly twice our cost. Another one of the Fund's private company investments is expected to go public in October at a premium to our cost. It is encouraging that our in- vestment thesis for these holdings has materialized and has not been negatively impacted by the liquidity crisis of 2008 as there are many junior companies which have not seen their share prices recover.

Our short term trading strategy added about 2% to the monthly return, while the remainder of the positive performance was generated through a variety of our lon......................

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