Factsheet January 2009

 

TIDMBRAL 
 
RNS Number : 9731N 
Bramdean Alternatives Limited 
26 February 2009 
 

RNS Announcement 
26 February 2009 
 
 
Factsheet January 2009 
 
 
Bramdean Alternatives Limited 
 
 
This Factsheet contains commentary and news for the calendar month 
ended 30th January 2009, unless otherwise stated. 
 
 
January Estimated Net Asset Values 
 
 
Sterling shares:  96.14 pence 
U.S. Dollar shares:   US$0.8033 
 
 
 
 
Overview 
Bramdean Alternatives Limited, (the "Company") is a Guernsey-based Investment 
Company listed on the London Stock Exchange. The Company invests in a 
diversified portfolio of Private Equity Funds, Hedge Funds and other Specialty 
Funds. 
 
 
 
 
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| KEY FACTS                              |                                  | 
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|                                        |                                  | 
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| Market Capitalisation                  | GBP84.6 million                  | 
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|                                        |                                  | 
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| Manager                                | Bramdean Asset Management LLP    | 
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|                                        |                                  | 
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| Annual Management Fee                  | 1.5%                             | 
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|                                        |                                  | 
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| Performance fee                        | 10% subject to an 8% return and  | 
|                                        | a high watermark                 | 
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|                                        |                                  | 
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| Company Brokers                        | JPMorgan Cazenove                | 
|                                        | Cenkos Securities Plc            | 
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|                                        |                                  | 
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| Sterling class share price on 30th     |   46.75p                         | 
| January 2009                           |                                  | 
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|                                        |                                  | 
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| Sterling class issue price (9th July   | 100.00p                          | 
| 2007)                                  |                                  | 
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|                                        |                                  | 
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| Number of Sterling shares in issue     | 92,142,177                       | 
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|                                        |                                  | 
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| U.S. Dollar class share price on 30th  | US$ 0.7850                       | 
| January 2009                           |                                  | 
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|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| U.S. Dollar class issue price (9th     | US$ 1.00                         | 
| July 2007)                             |                                  | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Number of U.S. Dollar shares in issue  | 76,116,060                       | 
|                                        |                                  | 
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|                                        |                                  | 
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| Minimum investment                     | N/A                              | 
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|                                        |                                  | 
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| Dealing                                | Daily                            | 
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|                                        |                                  | 
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| Valuation                              | Monthly                          | 
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|                                        |                                  | 
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| NAV publication                        | Monthly                          | 
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|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| January Sterling Estimated NAV per     | 96.14 pence                      | 
| share                                  |                                  | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| January U.S. Dollar Estimated NAV per  | US$ 0.8033                       | 
| share                                  |                                  | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Total common net assets                | US$191,399,981                   | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Total Estimated Net Asset Value        | US$188,852,589                   | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Half-year end                          | 30th September 2009              | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Financial year end                     | 31st March 2009                  | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Company Secretary and Administrator    | RBC Offshore Fund Managers       | 
|                                        | Limited                          | 
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|                                        |                                  | 
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| Registrar                              | Capita Registrars (Guernsey)     | 
|                                        | Limited                          | 
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|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Stock Exchange code (Sterling shares)  | BRAL                             | 
|                                        |                                  | 
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|                                        |                                  | 
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| Stock Exchange code (US Dollar shares) | BRAU                             | 
|                                        |                                  | 
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|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Sedol code (Sterling shares)           | B1XCHB9                          | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| Sedol code (US Dollar shares)          | B1XCLF1                          | 
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|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| ISIN code (Sterling shares)            | GG00B1XCHB94                     | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
| ISIN code (US Dollar shares)           | GG00B1XCLF11                     | 
+----------------------------------------+----------------------------------+ 
|                                        |                                  | 
+----------------------------------------+----------------------------------+ 
 
 
 
 
JANUARY MARKET COMMENTARY 
 
 
The year opened to a month of unrelenting gloom as the scale of the global 
economic downturn became apparent. The International Monetary Fund projected 
world growth will fall to 0.5% in 2009, its lowest rate since Word War II. The 
IMF expects no recovery until the financial sector and credit markets' 
functionality are restored, but currently expects a gradual return to growth in 
2010 with global growth forecast at 3%. 
 
 
The slump in global demand has resulted in considerable pressure on commodity 
prices. The oil price continued to slide during January, falling another 6.5% to 
US$41.7 a barrel. The IMF has revised downwards its forecast oil prices for 2009 
and 2010 to US$50 a barrel and US$60 a barrel respectively from its previous 
estimates for US$68 a barrel and US$78 a barrel for 2009 and 2010. Against this 
backdrop gold shone, rising over 5% to US$928 per troy ounce during January. 
 
 
Global inflation continues to decline as a consequence of the contraction in 
economic activity and lower commodity prices. In developed economies, the IMF is 
expecting headline inflation to fall to a record low of 0.25% in 2009 from 3.5% 
in 2008 with a slow increase thereafter to 0.75% in 2010. 
 
 
With negative data emerging from all quarters, the U.S. Dollar and Japanese Yen 
stood out as gainers in January. The U.S. Dollar continued to advance against 
both Sterling and the Euro, ending the month at $/GBP 1.44 and $/EUR 1.28. 
 
 
Global equity markets remained under pressure throughout the month with negative 
returns reported across the principal financial indices. The FTSE-100 Index 
ended January down 6.4%; the FTSE Eurofirst 300 Index closed down 4.2%, while 
the S&P 500 Index lost 8.5% and the MSCI Word Index lost 8.9%. 
 
 
PORTFOLIO NEWS 
 
 
General 
 
 
The underlying unaudited performance in January was -3.68% for the Sterling 
Share class and 
 -1.89% for the U.S Dollar Share class. This compares to gains of +0.8% and 
+1.09% for the HFRI Fund of Funds Composite Index and Credit Suisse/Tremont 
Hedge Fund Index. 
 
 
The discrepancy in performance between the two Share classes relates to 
currency. The Company hedges at the Share class level and the tactical default 
hedging ratio is currently zero with discretion to operate tactically within a 
range -30% to +30%. During January, the Company's currency manager, Mesirow 
Financial Currency Management, hedged the Company's Euro, U.S. Dollar and 
Sterling exposure within both Share classes. 
 
There were 30 holdings in the Company's overall Portfolio as at 30 January 2009, 
following the write-down to zero of the holdings in Defender and Rye Select and 
further hedge funds redemptions. During the month, proceeds were received in 
relation to redemptions from Atticus European Fund Ltd., with the exception of a 
residual sidepocket relating to Atticus's holding in Deutsche Borse; Hard Assets 
2X Fund Ltd., and Renaissance Institutional Futures Fund International LLC. 
 
 
As reported in the recently published Interim Management Statement, Deephaven 
Capital Management LLC has made proposals to investors which relate to the 
Company's holding in Deephaven Global Multi-Strategy Fund Ltd. to which RMF 
Investment Management is responding. The Company also submitted a redemption 
notice in November 2008 to Aarkad plc, proceeds from which are not due until May 
2009, although the manager has suspended redemptions until further notice. 
Aarkad is currently holding its NAV at the December 2008 valuation as a result 
of its redemption suspension. It has been indicated, however, that the 
performance in January was positive. 
 
 
The Company continues its programme of tactically reducing its allocation to 
hedge funds, a strategy that the investment manager started to implement in 
December 2007. As a result, there have been partial redemptions during January 
from certain holdings in the Strategic Hedge Funds portfolio, which have also 
been made in order to maintain weightings within the overall allocation range 
for that portfolio. Further partial redemptions will be made over the coming 
months. 
 
 
In December 2007, the Company's hedge fund holdings represented 86.3% of the 
Company's overall Portfolio. As at the end of January 2009, they represented 
37.6% of the overall Portfolio. As a result of the repositioning of the 
Portfolio during the course of 2008, the Company holds 27.4% of its net assets 
in cash as at the end of January. The investment manager intends to maintain 
cash reserves in order to fund draw-downs from the Private Equity and Specialty 
Funds and also to protect the NAV in these continuing volatile markets. The 
investment manager also maintains a close dialogue with Mesirow regarding the 
tactical use of currency hedging. 
 
 
The stand-out performers during January were Kei Ltd. and Paulson Advantage Plus 
Ltd., with positive returns also reported by Kaiser Trading Fund, Kaiser Trading 
Diversified 2X Segregated Portfolio, King Street Capital Ltd., Evergreen MAC 
Ltd., DE Shaw Oculus Members Interest and Alydar Fund Ltd.  During January, the 
sidepocket within Atticus European Fund Ltd., Deephaven Global Multi-Strategy 
Fund Ltd. and Lansdowne UK Equity Fund reported negative returns. 
 
 
 
 
 
 
 
 
Private Equity and Specialty Funds 
 
 
The Company has now made commitments to eighteen underlying Private Equity Funds 
and underlying Specialty Funds amounting to approximately $221.7 million, taking 
into account the U.S. Dollar's appreciation over the month. No new commitments 
have been made during January. 
 
 
The total amount that has been drawn-down on the commitments made is 
approximately 
$90.3 million, with approximately $3.1 million of capital having been drawn-down 
in January. The Company received one distribution during January of US$1.45 
million from Goldman Sachs Capital Partners VI L.P. and has now received total 
distributions of $3.8 million since inception. 
 
 
Seven capital calls were received from underlying Funds. Revaluations were 
received from four managers of the Company's Private Equity and Specialty Funds 
and these have been incorporated into the January NAV calculations. Of these 
four revaluations, one was revalued upwards and three were revalued downwards, 
the most severe being Terra Firma Capital Partners III L.P. As stated in 
previous communications, downward valuations are to be expected given the 
exceptional market environment and it is likely that the Company will receive 
further fair market valuation write-downs, including valuations as at 31 
December 2008, from some of its managers. 
 
 
 
 
Transitional portfolio 
 
 
The portfolio held two Funds at the end of January 2009 following the write-down 
of Defender in November 2008 and the redemption from Renaissance Institutional 
Futures Fund LLC.  These two Fund investments in the Transitional portfolio 
represent 7.2% of the Company's overall Portfolio as at 30 January 2009. 
 
 
The Transitional portfolio returned 0.1%, including cash, during January. Kaiser 
Trading Fund reported a positive return, while Aarkad's return was held at the 
December 2008 valuation as explained above. 
 
 
Strategic Hedge Funds portfolio 
 
 
The portfolio delivered a solid return amid heavy falls in global equity 
markets, with strongest returns from the Event Driven style. January was 
dominated by further weak economic data and fresh evidence that bank capital 
positions remain impaired. The portfolio held 10 Funds and returned 2.4% during 
January 2009. 
 
 
Portfolio Highlights 
 
 
Equity Hedged 
The style was flat in an environment where the majority of regional indices 
posted losses. The declining European equity markets made it difficult for the 
UK manager to profit from any long exposure, as some of the large cap positions, 
such as Deutsche Post and HSBC, saw their share prices fall heavily. The U.S. 
manager's large short exposure to industrials paid off, as mounting poor 
economic data from the sector pushed the S&P Industrials Index down over 12%. 
The manager continues to run with a small net long positioning, but is 
generating alpha from both the long and the short side, as demonstrated by its 
positive return in a month when U.S. equities were down -8.5%. 
 
 
 
 
Event Driven 
It was a good start of the year for the style. A special situations manager 
benefited from the continued deterioration of the banking sector, where 
substantial short positions are in place. After profiting from shorts in U.S. 
banks, the manager has been focusing on Europe in recent months, and profited 
strongly from shorts in UK banks such as RBS, which saw large selling pressure. 
The distressed manager manoeuvred through the generally strengthening credit 
market, but maintained short credit exposure as part of its hedging programme. 
 
 
Global Macro 
Performance was positive during the month, with the manager employing a more 
dynamic trading approach focusing on liquid instruments and short-term trades. 
Largest performance contributors were in futures and foreign exchange asset 
classes, where gains were realised from short U.S. Dollar exposure. 
 
 
Managed Futures 
The style posted a strong return despite the slowing tempo of recently 
profitable trends, in particular the long bond rally. The strongest performer 
was a short-term trader, which not only switched into the downtrend for bonds 
early in the month, but also caught the negative mid-month reversal in the 
equity market, shifting into short equity positions and benefiting from the 
declines that followed. Elsewhere, another short-term trader posted a modest 
gain, and a trend-following manager generated a small profit from currency 
trading, where shorts in Sterling helped performance. 
 
 
Relative Value 
The style posted a loss. The multi-strategy manager ended the month slightly 
down as illiquid positions continued to be a drag on performance. Increased 
demand for convertible bonds and some liquid credit instruments did help 
performance, however, illiquid positions failed to participate in the rally. The 
manager continues to bring down exposure, and limited its flexibility during the 
month. 
 
 
 
 
Portfolio Highlights 
 
 
Geographical Allocation 
+--------------------------------+ 
| North America 62.6%            | 
+--------------------------------+ 
| Global                         | 
| 17.4%                          | 
+--------------------------------+ 
| Europe15.8%                    | 
+--------------------------------+ 
| Asia & Other   4.2%            | 
+--------------------------------+ 
 
 
 
 
Portfolio Holdings Asset Allocation 
+--------------------------------+ 
| Strategic Hedge Funds   30.3%  | 
+--------------------------------+ 
| Cash                           | 
| 27.4%                          | 
+--------------------------------+ 
| Private Equity                 | 
| 23.5%                          | 
+--------------------------------+ 
| Specialty                      | 
| 11.6%                          | 
+--------------------------------+ 
| Transitional     7.2%          | 
+--------------------------------+ 
 
 
 
 
 
 
 
 
 
 
PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 30th January 2009 
 
 
+------------------------+---------------------+-------------+ 
| Manager                | Type                | Portfolio   | 
|                        |                     | Weighting   | 
+------------------------+---------------------+-------------+ 
| Cash                   | Cash                | 27.4%       | 
+------------------------+---------------------+-------------+ 
| Greenpark              | Private Equity      |   6.3%      | 
| International          |                     |             | 
| Investors              |                     |             | 
| III L.P.               |                     |             | 
+------------------------+---------------------+-------------+ 
| Paulson Advantage Plus | Strategic Hedge     |   6.3%      | 
| Ltd.                   | Funds               |             | 
+------------------------+---------------------+-------------+ 
| D.E. Shaw Oculus       | Strategic Hedge     |   5.4%      | 
| International Members  | Funds               |             | 
| Interest               |                     |             | 
+------------------------+---------------------+-------------+ 
| Alydar Fund Ltd.       | Strategic Hedge     |   5.0%      | 
|                        | Funds               |             | 
+------------------------+---------------------+-------------+ 
| Oaktree OCM            | Specialty           |   5.0%      | 
| Opportunities Fund     |                     |             | 
| VIIb L.P.              |                     |             | 
+------------------------+---------------------+-------------+ 
| Aarkad Plc             | Transitional        |   4.5%      | 
+------------------------+---------------------+-------------+ 
| Lansdowne UK Equity    | Strategic Hedge     |   4.2%      | 
| Fund                   | Funds               |             | 
+------------------------+---------------------+-------------+ 
| Thomas H. Lee Parallel | Private Equity      |   4.1%      | 
| Fund VI L.P.           |                     |             | 
+------------------------+---------------------+-------------+ 
| King Street Capital    | Strategic Hedge     |   3.1%      | 
| Ltd.                   | Funds               |             | 
+------------------------+---------------------+-------------+ 
| Coller International   | Private Equity      |   3.0%      | 
| Partners V L.P.        |                     |             | 
+------------------------+---------------------+-------------+ 
| Deephaven Global       | Strategic Hedge     |   2.9%      | 
| Multi-Strategy Fund    | Funds               |             | 
| Ltd.                   |                     |             | 
+------------------------+---------------------+-------------+ 
| MatlinPatterson Global | Specialty           |   2.9%      | 
| Opportunities Partners |                     |             | 
| III L.P.               |                     |             | 
+------------------------+---------------------+-------------+ 
| Kaiser Trading Fund    | Transitional        |   2.8%      | 
+------------------------+---------------------+-------------+ 
| Goldman Sachs Capital  | Private Equity      |   1.9%      | 
| Partners               |                     |             | 
| VI L.P.                |                     |             | 
+------------------------+---------------------+-------------+ 
| DFJ Athena             | Private Equity      |   1.9%      | 
+------------------------+---------------------+-------------+ 
| Kaiser Trading         | Strategic Hedge     |   1.7%      | 
| Diversified 2X         | Funds               |             | 
| Segregated Portfolio   |                     |             | 
+------------------------+---------------------+-------------+ 
| Lehman Brothers        | Private Equity      |   1.5%      | 
| Venture Partners V     |                     |             | 
| L.P.                   |                     |             | 
+------------------------+---------------------+-------------+ 
| Silver Lake Partners   | Private Equity      |   1.3%      | 
| III L.P.               |                     |             | 
+------------------------+---------------------+-------------+ 
| Terra Firma Capital    | Private Equity      |   1.2%      | 
| Partners III L.P.      |                     |             | 
+------------------------+---------------------+-------------+ 
| SVG Strategic Recovery | Specialty           | 1.1%        | 
| Fund II L.P.           |                     |             | 
+------------------------+---------------------+-------------+ 
| AIG Brazil Special     | Private Equity      |   0.9%      | 
| Situations II L.P.     |                     |             | 
+------------------------+---------------------+-------------+ 
| Pine Brook Capital     | Specialty           |   0.9%      | 
| Partners L.P.          |                     |             | 
+------------------------+---------------------+-------------+ 
| Evergreen MAC Ltd.     | Strategic Hedge     |   0.8%      | 
|                        | Funds               |             | 
+------------------------+---------------------+-------------+ 
| HIG Bayside Debt & LBO | Specialty           |   0.7%      | 
| II Fund L.P.           |                     |             | 
+------------------------+---------------------+-------------+ 
| Resonant Music I L.P.  | Specialty           |   0.7%      | 
+------------------------+---------------------+-------------+ 
| Thoma Bravo Fund IX    | Private Equity      |   0.7%      | 
| L.P                    |                     |             | 
+------------------------+---------------------+-------------+ 
| Rho Ventures VI L.P.   | Private Equity      |   0.7%      | 
+------------------------+---------------------+-------------+ 
| Kei Ltd.               | Strategic Hedge     |   0.6%      | 
|                        | Funds               |             | 
+------------------------+---------------------+-------------+ 
| Atticus European Fund  | Strategic Hedge     |   0.1%      | 
| Ltd.                   | Funds               |             | 
+------------------------+---------------------+-------------+ 
| LimeTree Emerging      | Specialty           |   0.1%      | 
| Beachfront Land        |                     |             | 
| Investment Fund II     |                     |             | 
| L.P.                   |                     |             | 
+------------------------+---------------------+-------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
DISCLAIMER 
 
 
This Factsheet update has been produced by Bramdean Asset Management LLP, which 
is authorised and regulated by the Financial Services Authority ("FSA"). 
This material constitutes a financial promotion for the purposes of the 
Financial Services and Markets Act 2000 (the "Act") and the handbook of rules 
and guidance issued from time to time by the FSA (the "FSA Rules"). 
This material is provided for information purposes, is intended for your use 
only and does not constitute an invitation or offer to subscribe for or purchase 
any of the products or services mentioned. This material has been provided 
specifically for the use of the recipient only and must be treated as 
proprietary and confidential information. It may not be passed on, nor 
reproduced in whole or in part under any circumstances without express written 
consent from Bramdean Asset Management LLP. The material provided is not 
intended to provide a sufficient basis on which to make an investment decision. 
Information and opinions presented in this material have been obtained or 
derived from sources believed by Bramdean Asset Management LLP and its 
affiliates ("Bramdean") to be reliable, but Bramdean makes no representation as 
to their accuracy or completeness. Bramdean accepts no liability for loss 
arising from the use of this material. Bramdean give no representations or 
warranty that any indicative performance or return will be achieved in the 
future or that the investment objectives and policies from time to time of 
Bramdean Alternatives Limited (the "Company") will be achieved. 
You should note that, if you choose to invest in the Company, your capital will 
be at risk and you may therefore lose some or all of any amount that you choose 
to invest. This material is not intended to constitute, and should not be 
construed as, investment advice. 
Potential investors in the Company should seek their own independent financial 
advice. Bramdean neither provides investment advice to, nor receives and 
transmits orders from, investors in the Company nor does it carry on any other 
activities with or for such investors that constitute "MiFID or equivalent third 
country business" for the purposes of this FSA Rules. 
PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE RESULTS. 
Please note that up-to-date information on the Company, including its monthly 
NAV and share prices, factsheets, Annual Report and Financial Statements, 
Prospectus and portfolio information can be found at 
www.bramdeanalternatives.com or via a link from www.bramdean.com. 
Capita Registrar's helpline is 0871 664 0300 (Calls cost 10 pence per minute 
plus network extras). For callers outside the UK, please dial: [phone] 
3399. 
 
 
Registered Office: Canada Court, Upland Road, St. Peter Port, Guernsey, GY1 3QE, 
Channel Islands. 
 
 
CONTACT DETAILS 
 
 
Loretta Murphy, or [e-mail] 
Bramdean Asset Management LLP. 35 Park Lane, London W1K 1RB, United Kingdom 
 
 
T+44 (0)20 7052 9272  F+44 (0)20 7052 9273  W www.bramdean.com 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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