Syz takes action to bolster hedge fund
The listed fund of hedge funds group sponsored by Swiss private bank Syz & Co, has unveiled new measures to bolster its flagging share price.
The fund, Altin AG, intends to repurchase up to 10% of its shares through a capital reduction programme, on top of buying stock through its corporate treasury. Altin has also reduced its leverage to zero, adopted a more conservative investment strategy and disclosed the identity of the hedge funds in which it invests.
Prior to the credit crisis, Altin's shares were trading at a premium of 5% to assets. At the start of this year, they were trading on a discount of 33%, against 28% today. During 2008, Altin fell in value by 29.2%, although it is up nearly 2% this year. Its assets are worth Sfr270m (€180m).
According to Jean Keller, investor relations manager: "Our board of directors is determined to maintain the share price within close range of net asset value." Altin decided not to put a share buyback in place at bottom, for fear that investors would end up selling their stock at an unrealistically low price.
As a result of the credit crisis, Syz's overall hedge fund stable has fallen in value from Sfr5bn to Sfr2.7bn. Keller said the fall, in part, reflected his bank's decision not to gate their funds against redemptions, wherever possible. The sole exception is a fund called Windrider, where trading has been suspended for the three months to June, due to its relatively high leverage.
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