IAM is a Toronto-based
alternative asset management company. As of it latest fiscal year-end, which
was September 30, 2009, the Company had approximately $2 billion in assets and
committed capital under management in Real Estate, Private Corporate Debt,
Private Equity, Managed Futures, Retail Alternative Investments, and Mining
Asset Management.
The Company offers its asset
management services to institutional, pension, and private clients.
Through
its wholly-owned subsidiary, BluMont Capital Corporation, on December 16, 2009,
IAM entered into a binding agreement to acquire Northern Rivers Capital
Management Inc. The purchase (price not disclosed) is expected to close in
February 2010. Northern Rivers was founded in 2001, and offers specialized
investment funds, including the Northern Rivers Innovation Fund LP, the
Northern Rivers Conservative Growth Fund LP, and the Northern Rivers Global
Energy Fund LP. The
acquisition of Northern Rivers will bring to IAM two highly-acclaimed portfolio
managers - Hugh Cleland and Alex Russ - who will augment IAM’s team of over 20
investment professionals.
As shown in the accompanying chart, the shares of IAM
have been range-bound since the March 9 market lows. This could continue until
the investing public is satisfied that the Company is dealing with its
corporate challenges. The shares probably have little downside risk from
current levels, and there is considerable upside potential once there is
visible evidence that the challenges are being solved.
These challenges are: (i) to turn around the Retail
Alternative Investments (BluMont Capital Corporation); and (ii) to resume
growth in assets under management.
We are maintaining our
12-month Target Price of $1.00 per share.
Mr. Weir has 43 years of investment research and analytical
experience in both the equity and fixed-income sectors, and in the
commercial real estate industry. He was at Dominion Bond Rating Service
(DBRS) from 1994 to 2001, latterly as Executive Vice-President
responsible for supervising the firm’s 34 analysts and conducting the
day-to-day management affairs of the company. He joined eResearch in 2004 and has been its President, CEO, and Managing Director, Research Services since May 2005.
