Fortis asset management unit winds down hedge fund
London-based Artemis Asset Management, the firm controlled by Fortis, is winding down one of its hedge funds, representing yet another casualty in what is the fifth consecutive month of losses for hedge funds.
Artemis said in a filing with the Irish Stock Exchange: “Following discussions with the directors of Artemis Absolute Return Hedge Fund GP Ltd., it has been determined that the affairs of the fund should be wound up.”
William Littlewood ran the fund since joining the firm in December 2005.
In advance of the compulsory redemption, shareholders will have an opportunity to redeem their shareholdings on Dec. 1, 2008, according to the filing.
Spokespeople for Artemis were not immediately available for further comment.
The firm’s investments include unit trusts, an investment trust, hedge funds, venture capital trusts, an international investment company with variable capital, as well as segregated institutional portfolios. The firm manages $24.1 bn (€18.7bn) in assets.
In September, Fortis increased its equity interest in Artemis Asset Management, from 67.1% to a sole shareholding position. ABN Amro Asset Management had held a majority interest in Artemis since 2002, which was transferred to Fortis in April 2008.
According to Hedge Fund Research, with investors redeeming approximately $40bn last month, industry assets now stand at levels not seen since the fourth quarter of 2006, declining to $1.56 trillion by the end of October.
In an interview last week, Kenneth Heinz, HFR president, told Financial News that in addition to $115bn in performance-based asset losses, it reduced the industry capital base by $155bn.
Investors withdrew "indiscriminately across the board," Heinz said.
—Write to Yael Bizouati at yael.bizouati@dowjones.com
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