Bluenose Capital is on course to launch Bluenose Capital Market Neutral Fund on October 1, 2009, Hedge Funds Review has learned.

The fund will use a proprietary factor-based approach to trade liquid US and Canadian equities. The investment process is 100% systematic and combines US and Canadian equity long/short trading strategies.

Bluenose aims to generate a 15% annual compound return with less volatility than the S&P/TSX and the S&P 500 indices and almost no correlation to the benchmarks.

The fund is aimed at accredited and professional investors. The minimum investment is $1 million with a one year lock-up and quarterly liquidity. Investors are advised the investment horizon should be at least five years.

The fund has an estimated maximum capacity of $350 million.

Bluenose Capital is led by co-CEOs Jean-Sebastien Pelletier and Dario Borelli.

Both were formerly at DundeeWealth, one of the largest wealth managers in Canada with over $55 billion in assets.

The Bluenose Capital Market Neutral Fund is domiciled in the British Virgin Islands.

The prime broker is Merlin Securities with clearing and custody services provided by Goldman Sachs.

Folio Administrators has been appointed as the administrator and Baker Tilly is the auditor.