Monday, October 01, 2007

Abcap Relents on Redemptions

Absolute Capital Management has relented on the 'no redemption' policy that its was looking to get investor approval for. The company has suffered a collapse in the share price over the last couple of weeks but seems to be taking the bull by the horns and doing its best to get the company back on track.

In a letter to investors in four of its funds the company said it was going ahead with proposed restructuring with one exception. "Following discussions with numerous fund investors, the proposals now include provisions under which investors may redeem up to an aggregate 30% of their investments in the funds' liquid share classes on scheduled redemption days over the following 12 months."

The company last week halted redemptions on the Absolute Activist Value Fund, run by Homm. It is still asking investors to agree to deferring their redemptions from this fund for up to 10 months. It is also proposing deferrals of redemptions on two of its other hedge funds. Only the Absolute Large Cap Fund, which is highly liquid, has escaped restrictions on redemptions.

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