Aberdeen takes control of Horlick's Bramdean
Aberdeen Asset Management has started managing the listed alternatives fund founded by Nicola Horlick two years ago, drawing a line under one of the highest profile management battles the City of London has witnessed in the past year.
The board of Bramdean Alternatives said it had appointed the asset manager to run the fund for three years for an undisclosed sum.
Bramdean Alternatives invests in a range of alternative funds, including hedge funds, private equity portfolios and it has even put money with film financing funds. Since listing in July 2007, its shares fell peak to trough by 53%. However, they have since risen by 12%.
Aberdeen replaces Bramdean Asset Management, Horlick's management firm, in runnning the fund.
Property entrpreneur Vincent Tchenguiz mounted a high profile campaign during Spring, via his Elsina investment vehicle, in an effort to oust the fund's board and bring about change at the fund manager.
He won his bid to replace Bramdean's board in June, and soon after Horlick halted her attempt to force a wind-down of the £69m (€77m) fund she had founded.
In December, Horlick revealed it had invested 9.2% of its assets with Bernard Madoff, the New York conman which defrauded it, and various other high profile hedge fund investors, of a combined $65bn (€44bn).
As Bramdean tried to lower its exposure to hedge funds during this year, it was trapped in several after markets seized and many managers barred redemptions. It remains unable to retrieve all its holding in Aarkad.
However, one London-based investor said: "Nicola Horlick also got access to impressive funds such as Lansdowne [Partners'] UK equity fund and John Paulson's Advantage Plus fund. She and Bramdean were caught up in the worst markets for a lifetime, and they were joined by some pretty prominent rivals who also should have known better than to invest in Madoff."
Tchenguiz welcomed the appointment of Aberdeen.
Horlick could not be reached for comment.
- write to dwalker@efinancialnews.com
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