Wednesday, 23 July 2014
Last updated 7 hours ago
Oct 16 2007 | 5:32am ET
In spite of having won the backing of the vast majority of its investors for a restructuring planned, troubled hedge fund group Absolute Capital said it still lacks the requisite level of support to move forward.
The Majorca, Spain-based group, which was rocked by the abrupt departure of founder Florian Homm last month, said it has the support of “substantially all” of the 70% of investors it has spoken to. But it needs more than 75% support to move forward with a restructuring plan, which would segregate highly-illiquid positions—believed to be primarily U.S. pink sheets—in half of its eight funds into corner pockets and impose a one-year asset freeze.
To make matters worse for the firm, which manages about US$4 billion in assets, one investor has petitioned the Cayman Islands courts to liquidate two of its funds—European Catalyst and Octane—immediately.
Absolute managed to stave off the liquidation move by investor John Bruhl, which was adjourned until the end of the month, but only several large shareholders intervened on its behalf. In addition, a group of investors last week retained legal counsel to consider their claims.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…