Monday, 4 May 2015
Last updated 37 sec ago
Oct 19 2007 | 7:05am ET
Troubled hedge fund Absolute Capital Management will put its fate in the hands of its clients next week, as it seeks to stave off extinction.
Shareholders of four of Majorca, Spain-based AbCap’s eight funds will be asked to give their approval to a restructuring plan at an extraordinary meeting on Oct. 27 in a Grand Cayman hotel. Under the proposal, investors will accept a new one-year lockup to allow AbCap to ditch the illiquid holdings built up by founder Florian Homm—who abruptly left the firm last month. Those illiquid stocks would be put into “side pockets” separate from the exiting fund.
AbCap management said it has spoken to about 70% of its investors, and said it is “encouraged by the indications of support.” Most of the investors AbCap has discussed the plan with favor it, which would have been enough, were it not for one: John Bruhl.
Bruhl, an investor in two of the firm’s funds, sued AbCap to force it to liquidate. Before Bruhl’s motion, the firm needed only two-thirds support to move forward with its plan. Now, it needs three-quarters. Still, AbCap said it “expects that fund shareholders will vote to approve the restructuring proposals at the forthcoming meetings.”
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…