Mon, May 2, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Castle AI announces share buyback initiative

Thursday, June 17, 2010
Opalesque Industry Updates - Castle Alternative Invest AG (“Castle AI”), the second largest London listed fund of hedge funds, intends to buy back a maximum of 10 per cent of its issued share capital at up to 95 per cent of Net Asset Value (“NAV”) as part of a discount management programme.

The company, which has assets of approximately USD 600 million (as at 30 April 2010), has been listed on the SIX Swiss Exchange since January 1997 and dual listed on the London Stock Exchange on 5 June 2009.

The share buyback will be executed via a second trading line which will be opened on the SIX Swiss Exchange on 21 June 2010, and remain open until 10 December 2010 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 has been appointed as the SIX Swiss Exchange member responsible for setting bid prices on the second line.

In US Dollar terms, Castle AI’s NAV has achieved a net annualised return of 7.23% since inception, compared to an annualised return of 3.07% for the MSCI World Index, with correlation to the index of 0.46*. Thomas Weber, head of hedge fund investment management at LGT Capital Partners, has been lead portfolio manager since inception.

Mark White, General Manager of Castle AI, said:
“It is vital that the boards of listed alternative investment vehicles have effective discount control mechanisms in place. At the time of the London listing, the company announced that it would implement share repurchases, subject to the board’s discretion, in order to support share price performance in the secondary market. These measures, coupled with the enhanced profile and liquidity provided by the dual listing, have attracted new investors in the company and there has been a significant reduction in the level of discount at which the shares trade.

“The second trading line should be an effective way of tightening the discount further, and result in a share price which more accurately reflects the merits of the company, which has delivered positive returns with low correlation to traditional asset classes since its inception.”

Castle AI, based in Pfaeffikon, Switzerland, seeks to achieve long term capital growth through investment in a well diversified and actively managed portfolio of hedge funds, managed accounts and other investment vehicles. Corporate website: www.castleai.com

- FG

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n