The directors of Castle Alternative Invest, a closed-ended investment company listed on the SIX Swiss Exchange, have published a prospectus in connection with its dual listing on the Lo
The directors of Castle Alternative Invest, a closed-ended investment company listed on the SIX Swiss Exchange, have published a prospectus in connection with its dual listing on the London Stock Exchange.
The listing is expected to become effective on 5 June 2009. The company says it will result in Castle AI becoming one of the top three funds of hedge funds by assets listed on the London Stock Exchange.
The investment adviser to Castle AI is LGT Capital Partners, a global alternative investment manager whose sole focus is hedge fund and private equity fund research and investment. Thomas Weber (pictured), LGT Capital Partners’ head of hedge fund investment management, has been lead portfolio manager since Castle AI’s inception on 1 January 1997.
Castle AI seeks to achieve long term capital growth through investment in a well diversified and actively managed portfolio of hedge funds, managed accounts and other investment vehicles.
In US dollar terms it has achieved a net annualised return of 6.6 per cent over the period from 1 January 1997 through 31 March 2009, compared to an annualised return of 0.3 per cent for the MSCI World Index in US dollars for the same period.
The portfolio as at 31 March 2009 was diversified across a mix of strategies including equity long/short, event driven, relative value and macro/CTA. Macro/ CTA strategies comprised some 36 per cent of the portfolio, a significant medium term overweight position.
By listing the company on the LSE, Castle AI’s board expects to see improved secondary market liquidity and a tightening of the present share price discount to net asset value over time.
Weber says: ‘Castle AI has a good long term track record, and with assets of over USD500 million it will become an immediate heavyweight in the LSE’s listed alternatives sector. Through the listing we expect to broaden Castle AI’s shareholder base and add to our existing group of UK institutional and intermediary investors.
‘Our team has managed Castle AI through the peaks and troughs of the hedge fund market over the last 12 years. We expect that our rigorous due diligence process and active strategy selection will continue to contribute significantly to Castle AI’s strong performance.’
