Sat, Nov 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Castle Alternative Invest initiates share buyback program

Wednesday, July 13, 2011

Thomas Weber
Opalesque Industry Update - Castle Alternative Invest AG, a fund of hedge funds listed on the SIX Swiss Exchange and on the London Stock Exchange, authorized the board to effect a share buyback program at the Annual General Meeting held on 17 May 2011. Under the program a maximum of 10 per cent of the Company's share capital (1,748,160 shares) can be repurchased. The effective size of the program remains at the discretion of the board in light of available portfolio liquidity, the number of shares already purchased and market conditions.

Dates for the share buyback program have now been confirmed. It will be executed via a second trading line denominated in CHF which will be opened on the SIX Swiss Exchange on 18 July 2011, and will remain open until 5 June 2012 at the latest. The Company will be the exclusive buyer on the second line and will repurchase shares for the purpose of subsequently reducing its share capital. Zurich Cantonal Bank will be the SIX Swiss Exchange member responsible for setting bid prices on the second line. For shares purchased on the second trading line, Swiss federal withholding tax of 35% of the difference between the repurchase price and the nominal value of the shares (CHF 5) will be deducted from the price.

The AGM also approved a share capital reduction by way of cancellation of 2,225,464 shares being the number of shares purchased in last year’s second line buyback program. The cancellation will occur after 25 July 2011. The Company, which has assets of approximately USD 278 million, was listed on the SIX Swiss Exchange in April 1997 and has been dual listed in London since June 2009. Castle AI invests in a diversified and actively managed portfolio of hedge funds, managed accounts and other investment vehicles in order to target long term capital growth.

Castle AI has achieved a net annualized return of 6.85% since inception in US Dollar terms, compared to an annualized return of 3.35% for the MSCI World Index, with correlation to the index of 0.49. Thomas Weber, co-head of hedge fund investment management, LGT Capital Partners (LGT CP), has been lead portfolio manager since launch.

Mark White, co-head of listed investment companies, LGT CP, said: "The board of Castle AI believes in an active approach to managing the discount to net asset value and has implemented this program to support the price at which shares trade in the secondary market. The Company has a long track record of delivering positive returns, proving an effective investment vehicle for investors wishing to enhance their portfolio diversification. The second trading line should help to tighten the discount, and should result in a share price which better reflects the value of the Company and the quality of its underlying investments."
(press release)
Source
KM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  4. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed

  5. Legal - Six years after AIG takeover, lawsuit reveals another potential buyer[more]

    From Institutional investor.com: When former Treasury secretary Henry (Hank) Paulson Jr. testified in a suit last month about the U.S. government takeover of American International Group, his words were — mostly — numbingly familiar. Explaining the “punitive” terms set for the September 2008 bailout