February 2008 Factsheet
28 März 2008 - 5:34PM
UK Regulatory
RNS Number:0796R
Bramdean Alternatives Limited
28 March 2008
RNS Announcement
28th March 2008
Factsheet February 2008
Bramdean Alternatives Limited
This Factsheet contains commentary and news for the calendar month ending 29th
February 2008, unless otherwise stated.
February Net Asset Values
Sterling shares: 99.16 pence
U.S. Dollar shares: US$ 0.9846
Overview
Bramdean Alternatives Limited, (the "Company") is a Guernsey-based Investment
Company listed on the London Stock Exchange. The Company invests in a
diversified portfolio of private equity funds, hedge funds and other specialty
funds.
KEY FACTS
Total issued share capital �131 million
Manager Bramdean Asset Management LLP
Annual Management Fee 1.5%
Performance fee 10% subject to an 8% return
and a high watermark
Company Brokers Cenkos Securities Plc
Sterling class share price on 29th February 2008 87.75p
Sterling class issue price (9th July 2007) 100.00p
Number of Sterling shares in issue 130,142,311
U.S. Dollar class share price on 29th February 2008 US$ 1.02
U.S. Dollar class issue price (9th July 2007) US$ 1.00
Number of U.S. Dollar shares in issue 1,785,000
Minimum investment N/A
Dealing Daily
Valuation Monthly
NAV publication Monthly
February Sterling NAV per share 99.16 pence
February U.S. Dollar NAV per share US$ 0.9846
Total common assets US$ 258,471,918
Total Net Asset Value US$ 258,455,805
Half-year end 30th September 2008
Financial year end 31st March 2008
Company Secretary Royal Bank of Canada
and Administrator Offshore Fund Managers Limited
Registrar Capita Registrars (Guernsey) Limited
Stock Exchange code (Sterling shares) BRAL
Stock Exchange code (US Dollar shares) BRAU
Sedol code (Sterling shares) B1XCHB9
Sedol code (US Dollar shares) B1XCLF1
ISIN code (Sterling shares) GG00B1XCHB94
ISIN code (US Dollar shares) GG00B1XCLF11
FEBRUARY MARKET COMMENTARY
February opened with two major bids on the table - Microsoft bid $43 billion for
Yahoo while BHP Billiton bid �75 billion for Rio Tinto.
The markets settled into another volatile month which saw the Bank of England
cut rates by 25 basis points to 5.25% in an attempt to prevent a UK economic
slowdown. Signs of pressure on the economy came in the shape of the Institute of
Supply Management (ISM) which records non-manufacturing business activity. The
ISM Index fell to 41.3 in January from 54.4 in December, marking its first fall
below 50% since March 2003. Overall, news lacked consistency as UK retail sales
showed a better performance from their low point in December, registering a 0.8%
rebound during January, while UK housing once again showed signs of stress with
prices falling 0.5% in February, the fourth consecutive month of decline,
according to the Nationwide Building Society.
The Northern Rock continued to dominate news as the Government announced it
would nationalise the UK mortgage lender rather than continue with its efforts
to sell the bank to a private buyer.
Precious metals, soft commodities and oil continued their steep upward inclines.
Gold closed the month nudging $970 per troy ounce, Platinum had climbed
comfortably over $2,000 a troy ounce while oil breached $100 a barrel and was
trading happily above that level as the month ended. Soft commodities took
centre stage as Kazakhstan threatened export tariffs to curb wheat sales thereby
sending wheat soaring to $24 a bushel.
Gloom continued to weigh down the U.S Dollar which fell to a record low of $1.51
against the Euro. Two-year Treasury yields continued to slide to less than half
their 5.1% level of June 2007.
UK equities markets had a mixed month with the FTSE 100 index and the FTSE
All-Share Index returning 0.1% and 0.4% respectively while the FTSE SmallCap
Index gained 4.1%. On the international stage, the MSCI World Index recorded a
marginal fall of 0.74%.
PORTFOLIO NEWS *
General
The underlying performance in February was 2.09% for the Sterling share class
and 2.03% for the U.S. Dollar share class.
In February, the Company maintained its monthly rolling currency hedge of 70% of
its U.S. Dollar exposure and expects to keep the hedge in place in the
near-term.
The portfolio continues to have minimal long exposure to sub-prime debt. The
Company did not hold or have any exposure to Peloton Partners, which at the end
of February put the assets of its $2bn flagship ABS fund up for sale. During
March, it was reported that Platinum Grove was one of the hedge fund firms that
had been affected by a sudden unwinding of Japanese bond positions by some of
its peers. Bramdean Asset Management LLP (the "Manager") has satisfied itself
through conversations with Platinum Grove that the firm is managing the
situation sensibly and the Manager is comfortable with the action the firm is
taking to manage its risk exposure.
We have eliminated our exposure to our long-only managers in the transitional
portfolio and have received the substantial majority of the cash during March,
subsequent to the February NAV. The resulting impact on the portfolio weightings
and the Company's cash holdings will, therefore, be reflected in the March NAV.
Private Equity and Specialty
The Company made no new commitments to private equity or specialty managers in
February.
The Company has now made commitments to underlying private equity funds and
underlying specialty funds amounting to approximately �104.2 million. The total
amount that has been drawn-down on the commitments made is approximately �21.7
million, with �945,000 million having been drawn-down in February. The Company
received no distributions during February and has now received total
distributions of �294,000.
Transitional Portfolio
Our transitional portfolio is designed to reflect private equity type
characteristics while commitments to our private equity funds are awaiting
capital draw-downs. It is also structured to preserve that capital over the
medium-term and to be liquid so that the Company may meet its draw-down calls.
There are two parts of the investment strategy within the transitional portfolio
- the first is made up of investments in specialist global equity managers, long
/short equity and event-driven managers as these classes demonstrate the most
similar characteristics to private equity. The second strategy is to reduce
exposure to market risk through market neutral funds. The Company may seek to
implement portfolio protection through the use of derivatives from time to time.
The transitional portfolio's investments in equity-correlated assets will not
perform well during short-term equity market down-turns, however these
investments are counter-balanced by investments in market neutral funds.
The portfolio held 11 funds at 29 February, of which two - Third Avenue Value
Equity Offshore Fund and Oldfield Overstone Global Equity Fund - were redeemed
by close of business that day.
The portfolio returned 1.4% during February. The portfolio has benefited from
its holdings in Enso, Platinum Grove and York European as well as from reducing
exposure to Third Avenue Value Equity Offshore Fund and Oldfield Overstone
Global Equity Fund, although these proceeds will be reflected fully in the March
NAV.
Strategic Hedge Funds Portfolio
The portfolio posted generated a strong gain in February in what continued to be
turbulent times for equity and credit markets. The managed futures style was the
standout performer.
Portfolio Highlights
Equity Hedged
The style recorded a good gain for the month, as global equity markets continued
to struggle. Our short seller had another strong month, as it benefited from
gains in the majority of the single stock shorts and a strong gain in the
levered short index hedge. Our UK equity-focused manager was the best performer
as market conditions were generally helpful to its thematic positioning - long
mining/short financials. The manager also benefited from good stock picking,
both in areas affected thematically and outside of them.
Event Driven
The style posted a strong return as all managers delivered positive gains. Our
U.S. special situations manager posted a strong gain, as its short play in the
credit and equity of financial institutions is proving to be an appropriate
hedge in the current climate. Our distressed manager again generated a pleasing
return from its short positions in credit indices, single name CDS as well as in
sovereign debt. Our European special situations manager recorded a profit as
gains in mining and energy stocks offset losses from financials and technology
positions.
Global Macro
The style registered a strong return. Our global trader saw all three parts of
the fund contribute positively. The futures and foreign exchange basket led the
way, benefiting from the falling Dollar; energy trading benefited from strong
moves across the board and on the credit side, short CDS positions generated
profits. Our equity-biased commodity manager also performed well, benefiting
from upward moves in natural gas company stocks to which the manager recently
increased exposure.
Managed Futures
The style enjoyed a strong month, with one short term trader profiting in all
sectors with the exception of metals. The other short term trader generated
double-digit returns, as the manager capitalised on the run-up in energy prices,
with crude oil and natural gas performing particularly well. Elsewhere, the
manager generated gains in stock index and interest rate sectors, with the short
positions in the NASDAQ 100 proving profitable.
Relative Value
The style posted a modest loss. Due to a shortage of trading opportunities, our
derivative arbitrage manager was only able to utilise one-third of available
capital. The manager posted a small loss for the month as interest income from
the capital held in cash was not sufficient to offset leverage costs. Our
multi-strategy manager was marginally down, as returns from the different
sub-strategies were widely dispersed with continued underperformance from credit
relative value and modest gains in long/short equity and European volatility.
Geographical Allocation
Global 38.2%
North America 28.4%
Europe 27.7%
Asia & Other 5.7%
Portfolio Holdings Asset Allocation
Transitional 45.1%
Strategic Hedge Funds 33.3%
Private Equity 12.7%
Cash 6.0%
Specialty 2.8%
PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 29th February 2008
Portfolio
Manager Type Weighting
Platinum Grove Contingent Capital Offshore Fund Ltd. Transitional 6.7%
Cash Cash 6.0%
York European Opportunities Unit Trust Transitional 5.8%
Enso Global Equities Fund Ltd. Transitional 5.8%
Paulson Advantage Plus Ltd. Strategic Hedge Funds 4.6%
Defender Ltd. Transitional 4.1%
D.E. Shaw Oculus International Members Interest Strategic Hedge Funds 3.9%
Third Avenue Value Equity Offshore Fund Ltd. Transitional 3.8%
Terra Firma Capital Partners III L.P. Private Equity 3.8%
Brencourt Enhanced Multi-Strategy International Ltd. Transitional 3.6%
Rye Select Broad Market XL Portfolio Ltd. Strategic Hedge Funds 3.5%
Hard Assets 2X Fund Ltd. Strategic Hedge Funds 3.5%
York Asian Opportunities Unit Trust Transitional 3.4%
Lansdowne UK Equity Strategic Hedge Funds 3.4%
Overstone Global Equity Fund Transitional 3.2%
Deephaven Global Multi-Strategy Fund Ltd. Strategic Hedge Funds 3.2%
Renaissance Institutional Equities Fund International L.P. Transitional 3.1%
Aarkad Plc Transitional 3.0%
Abchurch Europe Fund Ltd. Strategic Hedge Funds 2.9%
Greenpark International Investors III L.P. Private Equity 2.9%
Oak Hill Credit Alpha Fund Offshore Ltd. Transitional 2.7%
King Street Capital Ltd. Strategic Hedge Funds 2.2%
Strategic Recovery Fund II L.P. Specialty 1.9%
Thomas H. Lee Parallel Fund VI L.P. Private Equity 1.9%
Arcas MAC 79 Ltd. Strategic Hedge Funds 1.9%
Kei Ltd. Strategic Hedge Funds 1.8%
Goldman Sachs Capital Partners VI L.P. Private Equity 1.7%
Kaiser Trading Diversified 2X Segregated Portfolio Strategic Hedge Funds 1.4%
Atticus European Fund Ltd. Strategic Hedge Funds 1.0%
Coller International Partners V L.P. Private Equity 0.8%
Silver Lake Partners III L.P. Private Equity 0.6%
MatlinPatterson Global Opportunities Partners III L.P. Specialty 0.6%
DFJ Athena Private Equity 0.6%
Lehman Brothers Venture Partners V L.P. Private Equity 0.4%
Pine Brook Capital Partners L.P. Specialty 0.3%
AIG Brazil Special Situations II L.P. Private Equity 0.0%
Oaktree OCM Opportunities Fund VIIb L.P. Specialty 0.0%
Rho Ventures VI L.P. Private Equity 0.0%
Transitional investments: The Company will seek to avoid return dilution caused by holding amounts that are not
committed or are committed, but not yet drawn-down, on both underlying private equity funds and underlying specialty
funds by investing such amounts in a range of transitional investments, which may include equity hedge, senior debt,
mezzanine and market neutral funds.
Strategic Hedge funds: The part of the Company's portfolio which is managed by RMF Investment Management - Nassau
branch.
This Factsheet has been produced by Bramdean Asset Management LLP, authorised
and regulated by the Financial Services Authority. It is aimed solely at
shareholders of Bramdean Alternatives Limited and it should not be relied upon
by any other person.
Please note that Bramdean Asset Management LLP has obtained information from a
wide variety of sources for the content of this Factsheet. Whilst it has made
reasonable endeavours to verify such information, this Factsheet should not be
used as the exclusive basis of any investment decisions. It relates to a
relatively short time period whilst many of the investments of Bramdean
Alternatives Ltd are of a long-term nature.
Bramdean Alternatives Limited invests in high risk alternative investment
vehicles. It is aimed at professional or sophisticated investors who intend to
hold their investment for the longer term. If you are not a professional or
sophisticated investor you should take independent financial advice in relation
to any proposed investment in Bramdean Alternatives Limited.
Please note that up to date information on the Company, including its monthly
NAV and share prices, fact sheets, Prospectus and portfolio information can be
found at www.bramdeanalternatives.com.
This Factsheet will be available on www.bramdeanalternatives.com in PDF format
from this evening.
Capita Registrar's helpline is 0871 664 0300 (Calls cost 10 pence per minute
plus network extras)
Registered Office: Canada Court, Upland Road, St. Peter Port, Guernsey, GY1 3QE,
Channel Islands.
CONTACT DETAILS
Amanda McCrystal, or amccrystal@bramdean.com
Bramdean Asset Management LLP. 100 Brompton Road London SW3 1ER, United Kingdom
T+44 (0)20 7052 9272 F+44 (0)20 7052 9273 W www.bramdean.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEDFMASASEED
Bramdean � (LSE:BRAL)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
Bramdean � (LSE:BRAL)
Historical Stock Chart
Von Jan 2024 bis Jan 2025
