RNS Number : 8165F
  Absolute Capital Mgmt Holdings Ltd
  14 October 2008
   
    Absolute Capital Management Holdings Limited
    ("ACMH" or the "Company")

    Funds Update

    ACMH announces an update on its funds' trading performance, assets under management and its future fund product offering. 

    Background

    In October 2007, following the sudden resignation of former Chief Investment Officer Florian Homm, ACMH implemented a restructuring plan
applicable to four of the Company's eight equity funds - Absolute Octane Fund, Absolute East West Fund, Absolute Catalyst Fund and the
Absolute Return Europe Fund - to deal with those funds' illiquid assets. The restructuring plan entailed the creation of side pocket
portfolios within the funds and the imposition of a 12 month lock-in on the funds' main portfolios. 

    In January 2008 ACMH closed the Absolute India Fund, which, despite excellent performance, had become too small to continue trading.
More recently, ACMH took the decision to close the Absolute Activist Value Fund effective 31 October 2008. 

    New Trading Strategies

    Over the past 10 months, ACMH has completed the transition of the Absolute European Catalyst Fund, Absolute Return Europe Fund and
Absolute Germany Fund to European mid to large cap trading strategies. The year to date performance of these funds under their new trading
strategies is as follows:

                                    Jan - Sept 08 performance  AUM at 30 Sept 
                                                                          EURm

 Absolute Germany Fund                       18.19%                 20.4
 Absolute Large Cap Fund                     10.57%                  9.5
 Absolute European Catalyst Fund             -3.85%                 77.6
 (A class)
 Absolute Return Europe Fund (A              -10.81%                110.8
 class)

    As set out above, on a year to date basis, the trading performance of two funds in particular, the Absolute Germany Fund and the
Absolute Large Cap Fund, has been very strong returning 18.19% and 10.57% respectively, during a period which has proven extremely
challenging for hedge funds. It should be noted that performance of the A class portfolio of the Absolute European Catalyst Fund and
Absolute Return Europe Fund was adversely affected during this period by pre-September 2007 legacy positions, which these funds have since
disposed of or are in the process of disposing. 

    ACMH is pleased to report that its funds' October month to date trading performance will be broadly flat, after having taken the
decision on 26 September 2008 to move substantially all of the funds' A class portfolios to cash and thereby avoiding losses from the
precipitous decline in equity values in the first two weeks of October.

    Assets Under Management

    With the lock-in period on the A class portfolios of the Absolute Return Europe Fund, Absolute European Catalyst Fund, Absolute East
West Fund and Absolute Octane Fund about to end, ACMH has reviewed its fund product offering in the context of the level of redemption
requests received from investors in those funds. As a result, ACMH has taken the decision to discontinue the trading strategies pursued by
the Absolute East West Fund and the Absolute Octane Fund and to close those funds as of 31 October 2008. 

    ACMH estimates that its continuing funds will have the following levels of assets under management as at November 2008:

                                 November 2008 AUM EURm (est.)  % of September 2008 AUM (est.)

 Absolute Germany Fund                       20.1                            99%
 Absolute Large Cap Fund                      9.0                            95%
 Absolute European Catalyst                  23.1                            30%
 Fund (A class)
 Absolute Return Europe Fund (A              45.0                            41%
 class)


    Corporate Strategy

    Under the restructuring plan initiated in 2007, ACMH had anticipated a reduction in assets under management post the lock-in period, so
many of the changes necessary to operate under the business's reduced size have already been taken. ACMH believes the business can operate
profitably and, in time, attract new investors under its revised trading strategies. This belief is in part based on the strength of the
investment management team and the strong commitment it has received from its new service providers. The Company's funds will reopen to new
subscriptions in November 2008 as their net asset value reporting is expected to have been brought up to date by the end of this month.

    Going forward, ACMH will strive to rebuild its business by focusing on managing absolute return investment funds with European mid to
large cap trading strategies. To this end, ACMH is currently working towards re-branding and re-launching its four continuing equity funds
in anticipation of demand from investors seeking to re-enter European equity markets through conservative, risk-controlled equity strategies
after the recent unprecedented period of extreme market volatility and declining equity values.



 Enquiries: 

 ACMH                        Tel: +41 41 560 9660
 Glenn Kennedy 
 Jonathan Treacher

 Panmure Gordon         Tel: +44 (0) 20 7459 3600
 Dominic Morley
 Callum Stewart

 Cardew Group           Tel: +44 (0) 20 7930 0777
 Tim Robertson
 Shan Shan Willenbrock
 David Roach



This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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