Unaudited Interim Management Statement

 

TIDMBRAL 
 
RNS Number : 3009H 
Bramdean Alternatives Limited 
17 February 2010 
 

Bramdean Alternatives Limited 
Unaudited Interim Management Statement - 3 months to 31 December 2009 
 
To the shareholders of Bramdean Alternatives Limited 
This interim management statement has been produced solely to provide additional 
information to shareholders as a body to meet the relevant requirements of the 
UK Listing Authority's Disclosure and Transparency Rules. It should not be 
relied upon by any other party or for any other purpose. 
 
This interim management statement relates to the period from 1 October 2009 to 
31 December 2009, and contains information that covers this period, and up to 
the date of publication of this interim management statement, unless otherwise 
specified. 
 
Overview 
Bramdean Alternatives Limited ("the Company") is a Guernsey closed-ended 
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. 
 
Investment objective 
To generate long term capital gains primarily through investment in a 
diversified portfolio of private equity funds, hedge funds and other specialty 
funds. 
 
Material events 
 
On 19 November 2009, the Company announced the appointment of Aberdeen Asset 
Managers Limited as its investment manager in place of Bramdean Asset Management 
LLP. Aberdeen will be assuming responsibility for management of the entire 
portfolio. 
 
On 26 November 2009, certain holders of Shares in the Company owning Sterling 
Shares elected to switch into US Dollar Shares and certain holders of Shares in 
the Company owning US Dollar Shares elected to switch into Sterling Shares on 
the basis of the net asset value of the Company's Shares as at 30 October 2009. 
 
As a result of the switch, 76,500 Sterling Shares were converted into 131,673 
new US Dollar Shares and 321,790 US Dollar Shares were converted into 186,962 
new Sterling Shares. Accordingly, the total voting rights in the Company changed 
to 261,797,331 following the conversion. 
 
These elections were approved by the Board of Directors on 19 November 2009 and 
took effect on 26 November 2009. 
 
On 23 December 2009 the Board announced the appointment of Jennifer L Wick, 
Philip Hebson, David Staples and Howard Myles as non-executive directors of the 
Company with immediate effect. 
 
General description of Company's financial position as at 31 December 2009 
+----------------------------------+--------------------------------+ 
| Sterling shares NAV              | 82.33 pence                    | 
+----------------------------------+--------------------------------+ 
| US Dollar shares NAV             | US$ 0.7724                     | 
+----------------------------------+--------------------------------+ 
| Market Capitalisation            | GBP72.7 million                | 
+----------------------------------+--------------------------------+ 
 
As described in the Company's prospectus, and as has been the case since its 
launch, the net asset value ("NAV") and the NAV per share are both calculated 
monthly by the Company's administrator based on the latest published NAV for 
each underlying fund. 
 
With only one exception, investments in underlying funds for the month ended 31 
December 2009 are valued using the values (whether final or estimated) as 
advised by their managers, general partners or administrators. The Company 
therefore relied on valuation and reporting methods used by the managers, 
general partners or administrators of the underlying funds in deriving the 31 
December 2009 NAV and NAV per share. That exception was Aarkad and was valued at 
a level recommended by the Company's Investment Manager (see investment 
commentary, below). 
 
Investment Commentary 
The Company remains committed to 16 Private Equity funds, with commitments 
totalling US$215.3 million. No new commitments were made during the quarter. The 
total drawn down on commitments made is approximately US$115.5m, with 23 capital 
calls having been made in the quarter, totalling US$10.7 million. The Company 
has received total distributions of US$5.6 million since inception, with US$1.4 
million received during the quarter. Revaluations were received from all of the 
managers during the quarter, 12 were upwards revaluations and 4 were downwards 
revaluations. 
 
The portfolio holds two specialty funds, one of which, Aarkad, remains 
suspended. Following a substantial analysis of this holding we have written its 
valuation down by 75%. This is based on ongoing sales of underlying 'called up' 
assets realising considerably lower proceeds than might have been expected when 
referenced to the original loan value on those underlying assets. Please note 
that Aarkad has been reclassified by Aberdeen, from a Transitional Fund, to a 
Specialty Fund. 
 
The Strategic Hedge Funds portfolio was down for the quarter. Our multi-strategy 
manager, Deephaven, registered a substantial loss based on a potential tax 
liability that could arise from historical trades in Spain and Australia.  The 
markdown was initially conservative and this has been subsequently reduced. 
 
The portfolio's commitment cover which includes cash and the strategic hedge 
funds was 89.1% at 31 December 2009. 
 
Portfolio Highlights 
 
Geographical Allocation 
+--------------------------+ 
| North America            | 
| 77.2%                    | 
+--------------------------+ 
| Europe                   | 
| 12.6%                    | 
+--------------------------+ 
| Global                   | 
| 7.1%                     | 
+--------------------------+ 
| Asia & Other             | 
| 3.1%                     | 
+--------------------------+ 
 
Portfolio Holdings Asset Allocation 
+--------------------------+ 
| Cash                     | 
| 39.0%                    | 
+--------------------------+ 
| Private Equity Funds     | 
| 49.1%                    | 
+--------------------------+ 
| Specialty Funds          | 
| 2.2%                     | 
+--------------------------+ 
| Strategic Hedge Funds    | 
| 9.7%                     | 
+--------------------------+ 
 
 
Portfolio Holdings (Invested Capital) on 31 December 2009 
 
+--------------------------------+-----------------+-------------------+ 
| Manager                        |       Type      |         Portfolio | 
|                                |                 |         Weighting | 
+--------------------------------+-----------------+-------------------+ 
| Cash                           |       Cash      |         39.0%     | 
+--------------------------------+-----------------+-------------------+ 
| Oaktree OCM Opportunities Fund |       Private   |         8.9%      | 
| VIIb LP                        |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Greenpark International        |       Private   |         6.5%      | 
| Investors III LP               |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| D.E. Shaw Oculus International |       Strategic |         4.6%      | 
| Members Interest               |       Hedge     |                   | 
|                                |       Funds     |                   | 
+--------------------------------+-----------------+-------------------+ 
| Thomas H Lee Parallel Fund VI  |       Private   |         3.8%      | 
| LP                             |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Coller International Partners  |       Private   |         3.7%      | 
| V LP                           |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| SVG Strategic Recovery Fund II |       Private   |         3.6%      | 
| LP                             |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| MatlinPatterson Global         |       Private   |         3.2%      | 
| Opportunities Partners III LP  |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| HIG Bayside Debt & LBO Fund II |       Private   |         2.8%      | 
| LP                             |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Paulson Advantage Plus Ltd     |       Strategic |         2.6%      | 
|                                |       Hedge     |                   | 
|                                |       Funds     |                   | 
+--------------------------------+-----------------+-------------------+ 
| DFJ Athena LP                  |       Private   |         2.6%      | 
|                                |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Silver Lake Partners III LP    |       Private   |         2.5%      | 
|                                |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Tenaya Capital V LP            |       Private   |         2.3%      | 
|                                |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Goldman Sachs Capital Partners |       Private   |         2.2%      | 
| VI LP                          |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Terra Firma Capital Partners   |       Private   |         2.2%      | 
| III LP                         |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| King Street Capital Ltd        |       Strategic |         1.8%      | 
|                                |       Hedge     |                   | 
|                                |       Funds     |                   | 
+--------------------------------+-----------------+-------------------+ 
| Pine Brook Capital Partners LP |       Private   |         1.5%      | 
|                                |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Thoma Bravo Fund IX LP         |       Private   |         1.4%      | 
|                                |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Resonant Music LP              |       Specialty |         1.4%      | 
+--------------------------------+-----------------+-------------------+ 
| Rho Ventures VI LP             |       Private   |         1.0%      | 
|                                |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| AIG Brazil Special Situations  |       Private   |         0.9%      | 
| II LP                          |       Equity    |                   | 
+--------------------------------+-----------------+-------------------+ 
| Aarkad Plc                     |       Specialty |         0.8%      | 
+--------------------------------+-----------------+-------------------+ 
| Deephaven Global               |       Strategic |         0.7%      | 
| Multi-Strategy Fund Ltd        |       Hedge     |                   | 
|                                |       Funds     |                   | 
+--------------------------------+-----------------+-------------------+ 
 
 
Cash: The Company currently has six approved cash deposit accounts. 
Transitional Investments: The Company will seek to avoid return dilution caused 
by holding amounts that are not committed or are committed, but not yet 
drawn-down, on both underlying private equity funds and underlying specialty 
funds by investing such amounts in a range of transitional investments, which 
may include equity hedge, senior debt, mezzanine and market neutral funds. 
Strategic Hedge Funds: The part of the Company's portfolio managed by Man 
Investments (CH) AG. 
 
 
Key Facts 
+----------------------------------+--------------------------------+ 
| Market Capitalisation            | GBP72.7 million                | 
+----------------------------------+--------------------------------+ 
| Investment Manager               | Aberdeen Asset Managers        | 
|                                  | Limited                        | 
+----------------------------------+--------------------------------+ 
| Annual Management Fee            | 1.5%                           | 
+----------------------------------+--------------------------------+ 
| Performance fee                  | 10% subject to an 8% return    | 
|                                  | and a high watermark           | 
+----------------------------------+--------------------------------+ 
| Company Brokers                  | Matrix Corporate Capital LLP   | 
|                                  | JPMorgan Cazenove              | 
+----------------------------------+--------------------------------+ 
| Sterling class share price on 31 | 52.00 pence                    | 
| December 2009                    |                                | 
+----------------------------------+--------------------------------+ 
| Number of Sterling shares in     | 90.825 million                 | 
| issue                            |                                | 
+----------------------------------+--------------------------------+ 
| US Dollar class share price on   | US$ 0.525                      | 
| 31 December 2009                 |                                | 
+----------------------------------+--------------------------------+ 
| Number of US Dollar shares in    | 78.384 million                 | 
| issue                            |                                | 
+----------------------------------+--------------------------------+ 
| NAV publication                  | Monthly                        | 
+----------------------------------+--------------------------------+ 
| December Sterling Estimated NAV  | 82.33 pence                    | 
| per share                        |                                | 
+----------------------------------+--------------------------------+ 
| December US Dollar Estimated NAV | US$ 0.7724                     | 
| per share                        |                                | 
+----------------------------------+--------------------------------+ 
| Total December Estimated Net     | US$ 181,297,723.88             | 
| Asset Value                      |                                | 
+----------------------------------+--------------------------------+ 
| Half-year end                    | 30 September                   | 
+----------------------------------+--------------------------------+ 
| Financial year end               | 31 March                       | 
+----------------------------------+--------------------------------+ 
| Company Secretary and            | RBC Offshore Fund Managers     | 
| Administrator                    | Limited                        | 
+----------------------------------+--------------------------------+ 
| Registrar                        | Capita Registrars (Guernsey)   | 
|                                  | Limited                        | 
+----------------------------------+--------------------------------+ 
| Stock Exchange code (Sterling    | BRAL                           | 
| shares)                          |                                | 
+----------------------------------+--------------------------------+ 
| Stock Exchange code (U.S. Dollar | BRAU                           | 
| shares)                          |                                | 
+----------------------------------+--------------------------------+ 
| Sedol code (Sterling shares)     | B1XCHB9                        | 
+----------------------------------+--------------------------------+ 
| Sedol code (U.S. Dollar shares)  | B1XCLF1                        | 
+----------------------------------+--------------------------------+ 
| ISIN code (Sterling shares)      | GG00B1XCHB94                   | 
+----------------------------------+--------------------------------+ 
| ISIN code (US Dollar shares)     | GG00B1XCLF11                   | 
+----------------------------------+--------------------------------+ 
 
 
Cumulative performance (%) (GBP) 
 
+-------------+------------+---------+--------+--------+--------+ 
|             |     as at  | 1 month |      3 |      6 | 1 year | 
|             |            |         | months | months |        | 
+-------------+------------+---------+--------+--------+--------+ 
|             | 31/12/2009 |         |        |        |        | 
+-------------+------------+---------+--------+--------+--------+ 
| Share Price |       52.0 |     4.0 |   -2.8 |    1.5 |   18.9 | 
+-------------+------------+---------+--------+--------+--------+ 
| NAV         |       82.3 |    -1.9 |   -4.4 |    3.9 |  -17.5 | 
+-------------+------------+---------+--------+--------+--------+ 
 
 
Cumulative performance (%) (USD) 
 
+-------------+------------+---------+--------+--------+--------+ 
|             |     as at  | 1 month |      3 |      6 | 1 year | 
|             |            |         | months | months |        | 
+-------------+------------+---------+--------+--------+--------+ 
|             | 31/12/2009 |         |        |        |        | 
+-------------+------------+---------+--------+--------+--------+ 
| Share Price |        0.5 |   -11.7 |  -11.7 |  -11.7 |  -44.2 | 
+-------------+------------+---------+--------+--------+--------+ 
| NAV         |        0.8 |    -3.6 |   -3.5 |    1.7 |   -5.7 | 
+-------------+------------+---------+--------+--------+--------+ 
 
 
Discrete performance (%) (GBP) 
 
+-------------+------------+------------+ 
|             | 31/12/2009 | 31/12/2008 | 
+-------------+------------+------------+ 
| Share Price |       18.9 |      -52.7 | 
+-------------+------------+------------+ 
| NAV         |      -17.5 |        0.4 | 
+-------------+------------+------------+ 
 
Discrete performance (%) (USD) 
 
+-------------+------------+------------+ 
|             | 31/12/2009 | 31/12/2008 | 
+-------------+------------+------------+ 
| Share Price |      -44.2 |       -6.9 | 
+-------------+------------+------------+ 
| NAV         |       -5.7 |      -17.3 | 
+-------------+------------+------------+ 
 
Total Return; NAV to NAV, Net Income Reinvested, GBP 
Source: Aberdeen Asset Managers Limited and Morningstar 
NAV returns based on NAVs excluding income and with debt valued at par 
 
 
The Board is not aware of any significant events or transactions which have 
occurred between 1 January 2010 and the date of publication of this interim 
management statement which would have a material impact on the financial 
position of the Company. For latest performance information, please refer to the 
Company's website, www.invtrusts.co.uk/bramdean. 
 
Please note that past performance is not necessarily a guide to the future and 
that the value of investments and the income from them may fall as well as rise. 
 Investors may not get back the amount they originally invested. 
 
For Bramdean Alternatives Limited 
RBC Offshore Fund Managers Limited 
Secretary 
17 February 2010 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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