LONDON (Reuters) - Nicola Horlick’s boutique fund manager Bramdean Alternatives said on Thursday it has received an approach for a possible takeover by an unnamed bidder.
The manager -- which last year was hit by an exposure to Bernard Madoff funds equivalent to 9.5 percent of its portfolio -- said the approach “may or may not lead to an offer being made for the entire issued share capital of the company.”
The firm, which invests largely in hedge funds and private equity funds, declined to give further details.
One investor in Bramdean, who spoke on the condition of anonymity, told Reuters: ”It will be relatively easy to assess the value of the given that it has so much of its holdings in cash.
“As an investor we would be reluctant to give our backing to any offer that undervalues the fund significantly.”
At 11:30 a.m. the Bramdean Alternatives share price was up 3.8 percent at 48 pence.
At the end of March Bramdean said its estimated net asset value per share in sterling terms was 92.94 pence.
Estimated net assets at the end of March stood at $181.65 million (122.28 million pounds), down from $187.2 million in February.
According to Bramdean’s March factsheet, its underlying unaudited performance in the month was -3.55 percent for the sterling share class and -2.87 percent for the US dollar share class, compared with 0.65 percent returned by Credit Suisse/Tremont Hedge Fund Index.
At the end of March Bramdean had 32.7 percent invested in cash, 24.61 percent in strategic hedge funds, 22.84 percent in private equity funds, 12.31 percent in speciality funds and 7.47 percent in transitional portfolio.
Bramdean also said Cenkos Securities will continue conducting a strategic review of the options available to the Company. The mandate had been awarded before the approach.
Cenkos declined to provide any further information.
Additional reporting by Cecilia Valente; Editing by Greg Mahlich