Mon, Feb 20, 2017
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. With $54bn in assets, Philippines is ready for hedge funds, alternative investment products[more]

    Komfie Manalo, Opalesque Asia: With the country's outstanding fund management industry at $54bn and growing, the Philippine market and its investors are ready to invest in "more sophisticated" asset management products, like hedge funds and alternative investments, said Deanno J. Basas, presi

  2. SoftBank to buy Fortress Investment for $3.3bn[more]

    From Reuters.com: Japan's SoftBank Group Corp on Wednesday said it has agreed to buy Fortress Investment Group LLC for about $3.3 billion, looking to add investment expertise as it prepares to launch the world's largest private equity fund. The all-cash deal is SoftBank's first major investmen

  3. ...And Finally - Truth in advertising[more]

    From Newsoftheweird.com: Girl Scout Charlotte McCourt, 11, of South Orange, New Jersey, saw her sales zoom recently when she posted "brutally honest" reviews of the Scouts' cookies she was selling -- giving none of them a "10" and labeling some with dour descriptions. She was hoping to sell

  4. Europe - Brexit - Updated legal guide, Euro exchange rates set to tumble as hedge fund's super computer predicts Marine Le Pen will be next French president, Swiss fund market hits all-time high[more]

    Brexit - Updated legal guide From Herbertsmithfreehills.com: When we began analysing in depth the possibility of Britain exiting the EU (Brexit), 18 months prior to the June 2016 referendum, the business consensus was very much that Brexit was a remote prospect that either would never hap

  5. People - Gramercy appoints Bradshaw McKee as managing director of Capital Solutions, Trump taps Cerberus's Feinberg to lead intelligence review[more]

    Gramercy appoints Bradshaw McKee as managing director of Capital Solutions Gramercy Funds Management LLC, a $5.8 billion dedicated emerging markets investment manager, today announced the appointment of Bradshaw McKee to the position of Managing Director, Capital Solutions and Distressed