Absolute Capital Management | Holdings & Hedge Fund Notes

Absolute Capital Management

Absolute Capital | Hedge Fund Notes

Absolute Capital Management | Jonathan TreacherThe following piece on Absolute Capital Management is being published as part of our daily effort to track hedge funds in the industry. To review other hedge fund research notes please see our Hedge Fund Tracker Tool.

Troubled hedge fund firm Absolute Capital Management Holdings will see more investors than expected head for the door, it said today. The Swiss-based firm, which is listed on London’s Alternative Investment Market, posted a €1.2 million loss for the first half, and said it would not recommend a dividend. The firm’s assets under management at the end of June were just US$884 million, down from US$3.25 billion a year ago, due to hedge fund redemption requests and poor performance as well as the demerger of its emerging markets credit division, Argo Group. In July, Absolute Capital Management's Chairman Jonathan Treacher said he expected as much as €500 million in redemptions.

“While the performance of certain of our funds’ A class portfolios in the first six months has been encouraging, looking ahead, the group expects to have substantial redemptions from its funds at the end of the lock-up periods,” the firm said, due in part to the liquidation of its Absolute Activist Value Fund. It added that it would continue to monitor the viability of its other funds.

Last year, AbCap was rocked by the abrupt departure of co-founder Florian Homm and the revelation that Homm had put as much as a quarter of AbCap’s equity fund’s assets into highly-illiquid pink sheets. The firm then suspended redemptions, putting the illiquid assets into side pockets. Source

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Tags: Absolute Capital Management , London’s Alternative Investment Market, Argo Group, Jonathan Treacher, Absolute Activist Value Fund, Florian Homm, absolute capital hedge fund

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