Galileo Absolute Return Fund

GlobeinvestorGOLD.com, April 22, 2008

WINNIPEG (GlobeinvestorGOLD)

In the toughest investment market since the 2000-2002 tech meltdown, Peter Hanley has managed to keep his portfolio out of the red.

His Galileo Absolute Return Fund produced a 0.3-per-cent return for the 12 months ended March 31, 2008. That may seem modest, but peer Canadian focused small to mid cap equity funds lost an average of 8.5 per cent in the same period. Mr. Hanley, vice president and portfolio manager at Galileo Global Equity Advisors Inc. in Toronto, has headed the $3-million portfolio since inception in November, 2006.

We want names that will outperform the economy and the market for a long time, Mr. Hanley said. We look at price to growth of earnings, but we don't mind paying a premium for compelling opportunities. We see value in select U.S. biotechs with products already on the market and selected energy names in Canada with substantial revenues from natural gas. will continue to invest in this market, taking opportunities where they appear.

Aecon Group Inc.  is a Toronto-based construction company that gets 90 per cent of revenues from work in Canada. Shares purchased at an average cost of $17.67 have recently traded at $16.08. Canada is in need of infrastructure work, which is Aecon's speciality  bridges, highways and pipes, Mr. Hanley said. Earnings for the year ended Dec. 31, 2009 should rise to $1.20 per share from 94 cents for 2008 and $1.16 for 2007. Within 12 months, shares should hit $20, he said.

Trinidad Drilling Ltd.  is a Calgary-based oil well service company. Shares purchased at an initial cost of $2.75 have recently traded at $13.34 with a 60 cent annual dividend equal to a yield of 4.5 per cent. Trinidad is focused on deep well drilling, a higher margin business than conventional drilling. As well, the company is an innovator in new rig design. Trinidad was an income trust until March 17, 2008, then returned to corporate form so that it can grow without the financial restrictions on income trusts, Mr. Hanley explained. As a result of the reorganization, it will have another $140-million to $160-million per year in free cash flow. The company can reinvest it in the business or use it for acquisitions. Earnings for the year ended Dec. 31, 2009, should rise to $1 from 80 cents a year earlier and 95 cents for 2007, he suggested. Within 12 months, shares should rise to $16, he suggested.

Celgene Corp.  is a Summit, N.J.-based biopharmaceutical company. Shares purchased at $61.32 (U.S.) have recently traded at $64.07. The company has redeveloped thalidomide, the morning sickness drug used in the 1960s, and called it Thalomid, which is for treating multiple myeloma. Another product, Revlimid is also used for treating multiple myeloma. As well, Vidaza is used for treating other blood borne cancers. Earnings for the year ended Dec. 31, 2009 should rise to $2.35 from $1.53 a year earlier and 59 cents for 2007, he said. Within 12 months, shares should hit $80, he added.

For further information: Dan Hall, Executive Vice President, (416) 594-0606