Portfolio Update

    RNS Number : 6091B
  HSBC Global Absolute Limited
  19 August 2008
   

    HSBC Global Absolute Limited
    31 March 2008 - 31 July 2008 Review

    Objective
    HSBC Global Absolute Limited (the "company") aims to provide a total return from selective investment in a diversified portfolio of
hedge funds, which utilise and trade a range of different strategies and markets worldwide. These hedge funds are selected and monitored by
HSBC Alternative Investments Limited, who blend the holdings to provide a diversified portfolio. The company was launched on 28 November
2001. 

                           Summary of Fund
                                       Dollar           Sterling
 Net Asset Value (NAV) per share     US$ 2.0352        GBP 1.1045
     No. of shares in issue        US$ 41,365,763    GBP 11,907,598
            Bloomberg                 HSGU LN            HSGS LN
             Reuters              HSBC/HMGG;HSGa.L  HSBC/HMGG; HSGb.L
              ISIN                  GB00B03QH698      GB00B03QH474
              Sedol                   B03QH69            B03QH47

    Company Description
    The company is a Guernsey registered closed-ended investment company which launched on 28 November 2001. The Company's objectives are to
seek to achieve absolute returns with lower levels of volatility than equities generally exhibit. Its policy is to seek to achieve this by
investing in a diversified portfolio of hedge funds and managed accounts exposed to long/short strategies investing predominantly in global
markets.

    The Company's manager is HSBC Management (Guernsey) Limited ("HMG") and the Company's investment adviser is HSBC Alternative Investments
Limited.  
    Performance (through 31 July 2008)
    Over the last four months the company's performance was down 0.1% in US$ terms and up 1.0% in GBP terms.  

    The net asset value (NAV) of the US dollar class decreased from US$ 2.0369 at 31 March to US$ 2.0352 as at 31 July 2008. The share price
of the US dollar class of the company increased from US$ 2.05 to US$ 2.16 as at 31 July 2008, an increase of 5.37% over the quarter. In GBP
terms, the NAV of the GBP increased from GBP 1.0800 at 31 March to GBP 1.1045 as at 31 July 2008. The share price over the quarter rose from
GBP 1.08 at the beginning of the quarter to GBP 1.10 as at 31 July 2008.

    The company's portfolio over the quarter was positive with strong performance.  At the beginning of the quarter, managers in the high
yield and distressed sector led returns as new opportunities came to market. Equity markets performed in line with fundamental data and the
only detractor from performance came from macro managers, primarily those with exposure to emerging markets.

    Leading performers were mainly managers in the high yield/distressed space as new opportunities continued to arise within the slowing
markets. These managers continued to perform well throughout the quarter.  Managers in the market neutral space were particularly strong as
quantitative models regained their footing from earlier in the year. Managed futures managers were also positive contributors with gains
across commodities and currencies leading performance. Over the course of July equity long/short managers detracted from performance as
positions in financials and the mining and metals sector moved against them.

    Summary of Portfolio (as at 31 July 2008)

                Summary of Portfolio as at 31 July 2008
               Strategy                 No. of holdings within strategy
         Convertible Arbitrage                         1
           Equity Long/Short                          13
         High Yield/Distressed                         3
                 Macro                                 5
            Managed Futures                            2
            Market Neutral                             3
      Multi-Strategy/Event Driven                      9
         Total number of Funds                        36


    Market Commentary 

    Despite higher realised volatility within the markets at the end of the quarter, convertibles cheapened, indicating continued
deleveraging. New issuance was down considerably from the record levels seen in May. Monthly global M&A volume rose, led by Belgian InBev's
unsolicited all cash bid for Anheuser-Busch, the maker of Budweiser Beer. The Moody's global speculative grade default rate remained
unchanged. In commodities, energy markets reached new heights with Brent crude increasing 9.6%. The grains sector performed strongly, with
corn and soybeans reaching all time highs. 
    Within the main fund strategies HAIL believes that on a global basis, equity markets will continue to be challenging. Despite
opportunities for some long and short stock pickers, due to the continuing market uncertainty. Within distressed opportunities it is
anticipated that the continuation of opportunities arising will now be limited. However, HAIL does believe that there will be an increase in
the coming months. While merger opportunities remain slow, HAIL believe that some sectors which are cash rich have not been as impacted and
are expected to continue activity in the space. Equity market volatility is expected to remain at elevated levels.

    Company Actions
    On 16 April 2008, the Company processed conversion requests received from shareholders under the conversion facility. 6,608,246 sterling
hedged shares were converted to 7,051,668 US dollar shares and 4,018 US dollar shares were converted to 3,764 sterling hedged shares.

    At the Company's annual general meeting held on 5 June 2008, the shareholders approved the following resolutions: (i) to grant authority
for the Company to make market purchases of US dollar shares and sterling hedged shares of up to 14.99% of the issued shares as at 5 June
2007; (ii) to amend the provisions of the articles of association to restructure the semi-annual redemption facility as a tender offer
facility and to allow the Company to hold treasury shares; (iii) to grant authority for the Company to make future purchases of its own
shares by way of tender offer.

    On 22 June 2008, the Company processed tender requests received from shareholders under the tender facility. 1,556,417 sterling hedged
shares were purchased at a price of GBP1.1478 per sterling hedged share and 13,758,880 US dollar shares were purchased at a price of
USD2.1196 per US dollar share.


    Contacts

    Investment Adviser
    HSBC Alternative Investments Limited
    78 St James's Street
    London SW1A 1JB

    Clive Paine 020 7860 6525
    Noel von Kaltenborn 020 7860 3067

    Board of Directors
    Raymond Apsey (chairman)
    Keith Dorian
    Stuart Carnegie
    Paul Wrench

    Company secretary, Administrator and Registered Office
    HSBC Management (Guernsey) Limited
    St Martins House
    Le Bordage
    St Peter Port
    Guernsey GY1 4AU

    Auditor
    KPMG Channel islands Limited
    2 Grange Place
    PO Box 235
    St Peter Port
    Guernsey GY1 4LD











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