May 2008 Factsheet
25 Juni 2008 - 10:43AM
UK Regulatory
RNS Number : 4783X
Bramdean Alternatives Limited
25 June 2008
RNS Announcement
25 June 2008
Factsheet May 2008
Bramdean Alternatives Limited
This Factsheet contains commentary and news for the calendar month ending 30th May 2008, unless otherwise stated.
May Estimated Net Asset Values
Sterling shares: 101.86 pence
U.S. Dollar shares: US$ 1.0053
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 91.00p
30thMay 2008
Sterling class issue price 100.00p
(9th July 2007)
Number of Sterling shares in 97,751,842
issue
U.S. Dollar class share price US$ 1.02
on 30thApril 2008
U.S. Dollar class issue price US$ 1.00
(9th July 2007)
Number of U.S. Dollar shares 65,988,142
in issue
Minimum investment N/A
Dealing Daily
Valuation Monthly
NAV publication Monthly
May Sterling Estimated NAV per 101.86 pence
share
May U.S. Dollar Estimated NAV US$ 1.0053
per share
Total common assets US$ 263,491,045
Total Estimated Net Asset US$ 263,098,305
Value
Half-year end 30th September 2008
Financial year end 31st March 2008
Company Secretary and RBC Offshore Fund
Administrator Managers Limited
Registrar Capita Registrars
(Guernsey) Limited
Stock Exchange code (Sterling BRAL
shares)
Stock Exchange code (US Dollar BRAU
shares)
Sedol code (Sterling shares) B1XCHB9
Sedol code (US Dollar shares) B1XCLF1
ISIN code (Sterling shares) GG00B1XCHB94
ISIN code (US Dollar shares) GG00B1XCLF11
MAY MARKET COMMENTARY
During May, oil stepped up its upwards incline and within the first trading week had soared by 40% from its January low. By the end of
the month, oil was nudging $130 per barrel, up from $86.94 a barrel in January.
Overall, May was a month of contrasting news within the Eurozone and U.S. economies. Inflation began to emerge as a serious threat and
the prospect of interest rate cuts receded accordingly. In the UK, consumer price inflation rose 3% year-on-year during April, up from 2.5%
in March. First quarter growth in the Eurozone was much stronger than expected with GDP growth of 0.7% across the continent as a whole after
particularly strong growth from Germany.
Back in the UK, the Royal Institution of Chartered Surveyors published its most pessimistic house price survey since records began in
1978 and a research report claimed that one-fifth of UK homebuyers with poor credit histories had fallen behind in their mortgage payments.
The UK's Nationwide building society published its house price index showing that house prices fell by 4.4% year-on-year to May 2008, their
biggest annual fall since that recorded in December 1992.
The mixed picture of international economic activity initially buoyed financial markets which rose during the first half of the month,
before giving back the majority of their gains to end the month close to flat as markets started to worry about the prospect of stagflation.
The FTSE 100 index ended the month down 0.56%; the FTSE Eurofirst 300 index was down 0.25% while the S&P 500 index rose 1.07% and the MSCI
Word index closed the month up 1.1%. Hedge funds had a positive month, with the Credit Suisse Tremont index and the HFRI fund of funds index
up 2.0% and 1.92% respectively by the end of May.
PORTFOLIO NEWS
General
The underlying estimated performance in May was +1.91% for the Sterling share class and
+1.72% for the U.S Dollar share class.
In May, 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 stand-out performer during May was Kei Ltd., but the Company's hedge fund investments had a strong month overall with only three
funds posting small losses.
We are continuing to review the Company's Transitional portfolio with a view to reducing the exposure to market volatility. We expect to
increase investment in market neutral and relative value funds. The Company continues to hold a significant amount of cash, which amounted
to 11% of the portfolio as at 30 May 2008.
Private Equity and Specialty
The Company has now made commitments to sixteen underlying private equity funds and underlying specialty funds amounting to
approximately $223 million. One new specialty investment was completed during the month, a $15 million commitment to HIG Bayside Debt & LBO
Fund II L.P. This is a Miami-based distressed debt and growth equity manager investing in, primarily, U.S. small to medium-sized companies.
The total amount that has been drawn-down on the commitments made is approximately $54 million, with approximately $3.5 million of
capital having been drawn-down in May. The Company received no distributions during May and has now received total distributions of $825,921
since inception.
Transitional Portfolio
The portfolio held eight funds at 30 May. It returned 2.40%, including cash, during May and has returned an unaudited +0.88%, including
cash, in the calendar year-to-date compared with -1.45% year-to-date return for the HFRI Fund of Funds Composite Index. The portfolio's
holdings in Enso, Platinum Grove, York Asian and York European delivered strong returns during the month, while none of the funds had a
negative month. Holdings in defensive and market neutral funds, Aarkad and Defender, continued to deliver steady monthly returns.
Our Transitional portfolio is designed to manage the cash that the Company commits to private equity and specialty funds but has yet to
be drawn-down. The Company may seek to implement portfolio protection through the use of derivatives from time to time for some portion of
the Transitional portfolio, though the Company has not used derivatives for this purpose to date.
The Transitional portfolio was set up with three aspirations; to reflect private equity-type characteristics and returns, to preserve
capital over the medium-term and to be as liquid as possible so that the Company can meet its capital calls. Initially, to achieve these
aims the portfolio was largely invested in a series of specialist global equity managers, long/short equity and event-driven managers as
these classes demonstrate the most similar characteristics to private equity. The portfolio also aimed to reduce exposure to market risk
through market neutral and relative value funds. In response to the continuing market turbulence, the investment manager has been reducing
the emphasis on achieving private equity-type returns and increasing the focus on capital preservation. Positions in the long-only managers
have now been exited and investments in additional market neutral funds are being considered. In the meantime, the Company is holding
significant cash balances which will be reinvested in the Transitional portfolio as and when new opportunities are identified.
Strategic Hedge Funds Portfolio
The portfolio had a strong month amidst renewed concerns over inflation and a continued rise in the oil price. The strongest positive
outlier this month was Managed Futures, although every strategy posted strong returns. The portfolio held 12 funds at 30 May. It returned
3.5% during May and has returned an unaudited +6.7% in the calendar year-to-date.
Portfolio Highlights
Equity Hedged
The style posted good gains, as long/short managers with a thematic bias were able to profit. Our dedicated short seller was the only
negative performer, posting a loss as the U.S. markets rallied. One European manager's strong stock picking skills, which saw it short
UK-exposed shares, such as homebuilders, added significant returns to the style.
Event Driven
The style posted a gain driven mainly by the special situations book. Our U.S. based manager benefited from the severe weakening in the
financial markets, as the sector dropped by approximately 6% in May. Our other special situations manager profited from long positions in
railroads, with these stocks rallying between 10-15% during the month. Performance was encouraging from our distressed manager, which
reported a gain despite the negative month for credit.
Global Macro
It was a positive month for the style, with gains from our commodity manager underpinning performance. The global trader finished flat
as positive returns in asset class discretionary were offset by losses in equity statistical arbitrage. Our commodities manager's notable
contribution was driven by strong performance in its long/short positions in natural resources, with energy exposure further boosting the
performance.
Managed Futures
Impressive performance was reported by our managed futures managers. With the price of crude oil reaching a record high, many futures
markets moved in response to being increasingly or inversely-correlated to the price of crude. One of our managers had outstanding returns
from its allocation to natural gas futures, as speculation in the energy market continues to be a dominant topic.
Relative Value
It was a solid month for the style as we saw a continuation of the relief rally in risk assets and reduction of risk premia. The
strategy of our derivative arbitrage manager performed well, with the majority of gains stemming from its basket of S&P 100 Index options.
Returns from our multi-strategy were also positive, with equity and event-driven sub-strategies performing well.
Geographical Allocation
North America 35.9%
Global 29.8%
Europe 29.4%
Asia & Other 4.9%
Portfolio Holdings Asset Allocation
Transitional 34.8%
Strategic Hedge Funds 34.4%
Private Equity 15.9%
Cash 11.4%
Specialty 3.5%
PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 30th May 2008
Manager Type Portfolio Weighting
Cash Cash 11.4%
Platinum Grove Contingent Capital Transitional 6.6%
Offshore Fund Ltd.
Enso Global Equities Fund Ltd. Transitional 6.1%
YorkEuropean Opportunities Unit Transitional 5.8%
Trust
Paulson Advantage Plus Ltd. Strategic Hedge Funds 4.6%
Defender Ltd. Transitional 4.2%
D.E. Shaw Oculus International Strategic Hedge Funds 4.2%
Members Interest
Hard Assets 2X Fund Ltd. Strategic Hedge Funds 3.7%
Terra Firma Capital Partners III Private Equity 3.6%
L.P.
Greenpark International Investors Private Equity 3.6%
III L.P.
Rye Select Broad Market XL Strategic Hedge Funds 3.5%
Portfolio Ltd.
Lansdowne UK Equity Strategic Hedge Funds 3.4%
YorkAsian Opportunities Unit Transitional 3.3%
Trust
Deephaven Global Multi-Strategy Strategic Hedge Funds 3.3%
Fund Ltd.
Thomas H. Lee Parallel Fund VI Private Equity 3.2%
L.P.
Renaissance Institutional Transitional 3.0%
Equities Fund International L.P.
Aarkad Plc Transitional 3.0%
Abchurch Europe Fund Ltd. Strategic Hedge Funds 3.0%
Oak Hill Credit Alpha Fund Transitional 2.7%
Offshore Ltd.
Kei Ltd. Strategic Hedge Funds 2.3%
King Street Capital Ltd. Strategic Hedge Funds 2.1%
Strategic Recovery Fund II L.P. Specialty 1.9%
Arcas MAC 79 Ltd. Strategic Hedge Funds 1.8%
Goldman Sachs Capital Partners VI Private Equity 1.6%
L.P.
Kaiser Trading Diversified 2X Strategic Hedge Funds 1.5%
Segregated Portfolio
Coller International Partners V Private Equity 1.4%
L.P.
MatlinPatterson Global Specialty 1.3%
Opportunities Partners III L.P.
Atticus European Fund Ltd. Strategic Hedge Funds 1.0%
DFJ Athena Private Equity 0.8%
Silver Lake Partners III L.P. Private Equity 0.6%
Lehman Brothers Venture Partners Private Equity 0.6%
V L.P.
Pine Brook Capital Partners L.P. Specialty 0.3%
AIG Brazil Special Situations II Private Equity 0.4%
L.P.
Oaktree OCM Opportunities Fund Specialty 0.0%
VIIb L.P.
RhoVentures VI L.P. Private Equity 0.0%
Thoma Bravo Fund IX L.P Private Equity 0.0%
HIG Bayside Debt &LBO II Fund Specialty 0.0%
L.P.
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 further note that the Company is currently in its Close Period and is undergoing an annual audit for the financial year to 31
March 2008. All information provided in this document is provided on a best endeavours basis and may be subject to revision at a later date
as a result of the audit.
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 in due course.
Capita Registrar's helpline is 0871 664 0300 (Calls cost 10 pence per minute plus network extras). For callers outside the UK, please
dial: +44 (0)20 8639 3399.
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
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