Absolute Capital Thaws Frozen Assets

Sep 28 2007 | 12:40pm ET

Embattled Absolute Capital Management Holdings is thawing the redemption freeze it put into place last week after its founder resigned and its shares went into a tailspin. The Majorca, Spain-based hedge fund said investors will be permitted to withdraw 30% of their investments in four of its funds.

The firm announced a restructuring after co-founder Florian Homm’s departure, planning to separate the funds’ liquid investments from their illiquid investments, which are to be placed into side pockets.

ACM will permit redemptions “up to an aggregate 30% of their investments in the funds’ liquid share classes on scheduled redemption days over the following 12 months,” it said today. The funds covered by the new arrangement are the Absolute Return Europe Fund, Absolute European Catalyst Fund, Absolute Octane Fund and Absolute East West Fund.

ACM shares have more than dropped 80% since Homm’s shock announcement last week, and nearly 90% since the end of July. The firm’s clients have been no kinder, pulling more than 40% of its assets under management before it suspended redemptions on Sept. 20.


In Depth

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of