Troubled hedge fund manager Absolute Capital Management, which was thrown into turmoil two years ago by the resignation of its controversial founder, plans to delist its shares from London’s Alternative Investment Market.
The firm told the stock exchange that one-third of its shareholders have already approved the plans; it requires three-quarters approval. If its investors give the proposal the OK, AbCap will delist by June.
The firm said its assets have fallen so low that “there is no longer any advantage” in remaining listed. AbCap, which once managed more than US$3 billion, now has just £1.6 million (US$2.3 million) in assets under management, according to the filing.
In 2007, AbCap was rocked by the abrupt departure of co-founder Florian Homm and the revelation that Homm had put as much as a quarter of AbCap’s equity fund’s assets into highly-illiquid pink sheets. The firm then suspended redemptions, putting the illiquid assets into side pockets.