Tue, Apr 24, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its