ZURICH, Switzerland – After having researched environmental or “green” investments for the past 12 months, SAR has completed its rigorous due diligence process 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 Zürich-based asset manager founded by Arne Schmidt and Michael Ahrndt in 2001, and has managed two distinct funds of hedge funds since 2003. With regard to the positioning of the fund, Mr. Schmidt states, “This absolute return product differentiates itself in this burgeoning space through its active hedging, truly environmental character and its exclusion of venture capital investments from the universe.” The fund has 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. Population growth, water scarcity, climate change, 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.