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By Benedicte Gravrand, Opalesque London: CMA Advisors, a Zurich-based fund of hedge funds business, floated its fund of hedge funds on the London Stock Exchange in the summer 2006 to create a separate investment company called CMA Global Hedge. In July 2006, CMA Global Hedge PCC said it had raised $402 million from its IPO. This was the second-biggest stock market flotation by a financial services company in the UK so far that year after Standard Life (then Goldman Sachs immediately followed suite and raised $507m for a new vehicle called Goldman Sachs Dynamic Opportunities.)
We heard a couple of months ago that CMA Global Hedge had lost almost 7% of its value in the first half of 2008, "nearly three times the 2.5% average loss across the fund of hedge funds sector" (efinancialnews.com). In September, the fund's USD share class lost 9.43% (est.), it has further lost 8.92% (est.) so far in October and is now down 23.30% (est.) YTD.
The board of CMA Global Hedge PCC Limited yesterday announced that it had been aware of the wide discounts to NAV at which the Company's shares had been trading in recent weeks, and that it had reviewed its options. It came up with two proposals, taking into account the shareholders who wished to remain with CMA and those who wanted to sell their investment:
1 - The board offered two redemptions of up to 20% each of the Company's issued share capital based on the 31st December 2008 f...................... To view our full article Click here
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