Headstart Settles 2003 Dispute With the SEC

LONDON, June 29 /PRNewswire/ -- Headstart Fund Ltd, Headstart Advisers
Ltd, an FSA-regulated hedge fund adviser and Mr Najy Nasser, its Chief
Investment Officer, today announces they have settled their dispute with the
United States Securities and Exchange Commission relating to Headstart's
historic involvement in market-timing from which it disengaged in September
2003 prior to re-focusing on its other trading strategies. This will allow
Headstart to concentrate on its core business as an investment adviser to
offshore hedge funds and expand the business with the launch of new funds.
Without admitting or denying the allegations, the civil settlement
includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled
in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy
Nasser, the Chief Investment Officer. This settlement will conclude the case
brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr
Najy Nasser arising from Headstart's historic market-timing strategy.
Headstart has since September 2003 focused its business on other
successful strategies. The Headstart Fund of Funds has returned 65% (or 5.4%
average annual net return) since its inception in 1999, whereas most European
and US equity markets are down over the same period.
Najy Nasser, Chief Investment Officer of Headstart Advisers Ltd said:
"Headstart is very pleased to have reached a settlement. We responded to
US concerns about market timing and immediately ceased this element of
Headstart's business in September 2003. We have since worked hard to build up
Headstart's funds using different strategies. As we equalled or bettered our
overall returns against our benchmark, we are especially pleased with what we
have achieved.
"We have superb long-term performance against both the market and our
peer group and have some interesting plans to grow Headstart's investment
business."
Notes to editors:
About Headstart
Headstart Advisers Ltd is a financial services company incorporated in
1990, authorised and regulated by the FSA as an investment adviser to the
Headstart family of hedge funds. It advises three hedge funds and a fund of
hedge funds with the common mandate of superior returns with lower volatility
(risk).
Its two multi-strategy hedge funds, Headstart Global Fund and Headstart
Global Aggressive Fund, have respectively made an average annualised return
of 7.8% and 12% over the last 10 years.
Headstart Fund of Funds, the firm's flagship fund of hedge funds, also
has a good long-term track record and has made an average annualised return
of 5.4% over the last 9 years. The firm launched the Limestone Fund Wider
Russia SP strategy in 2007 after advising on the emerging market strategy
within a multi-strategy mandate for over 18 months. The Limestone Fund has
returned 103% year-to-date. The firm has plans to launch other investment
strategies as opportunities arise.
The directors of Headstart Advisers Ltd are Najy Nasser and Henry
Watkinson. The firm has its office in Chelsea Harbour, London.
For further information on market timing please see the FSA website:
http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/024.shtml
For further information:
M:Communications
Adrian Flook, +44(0)20-7153-1588, +44(0)7768-608396, flook@mcomgroup.com
Caroline Villiers, +44(0)20-7153-1521, +44(0)7808-585184,
villiers@mcomgroup.com
SOURCE Headstart Advisers Ltd

For further information: M:Communications: Adrian Flook, +44(0)20-7153-1588,
+44(0)7768-608396, flook@mcomgroup.com; Caroline Villiers, +44(0)20-7153-1521,
+44(0)7808-585184, villiers@mcomgroup.com