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West Palm Beach (HedgeCo.net) – European hedge fund manager, NB Private Equity Partners (NBPE), and a new fund launched by Altus, ‘Altus Resource Capital,’ have been accepted by The London Stock Exchange into the The Specialist Fund Market (SFM).
As an EU Regulated Market, SFM is designed to offer access for specialist investment vehicles targeting institutional, professional and highly knowledgeable investors. It’s admission standards offer sufficient flexibility for single strategy hedge funds, private equity funds and other alternative strategies and structures. The market is open to both UK and international issuers.
"We are delighted to welcome two new funds to the Specialist Fund Market today. Altus Resource Capital demonstrates that despite the wider economic climate, London’s investors continue to be responsive to new investment opportunities, (Altus recently raised GBP26 million ($43 million) for the launch)." Tracey Pierce, Head of Equity Primary Markets at London Stock Exchange Group, said, "NB Private Equity Partners’ decision to join highlights some of the London markets’ other key strengths: the enhanced liquidity and increased investor profile that they offer to issuers on an ongoing basis."
"We are very pleased to launch Altus Resource Capital (ARC) on the Specialist Fund Market today." Marc Gordon, partner at Nimrod Capital LLP, placing agents for Altus Resource Capital, commented, "This is our second successful fundraising within 12 months on the London market. The Specialist Fund Market has provided the flexibility to bring the new fund to the attention of leading asset managers and to attract interest even in these difficult times."
Since the start of 2008, a number of specialist funds have taken advantage of new opportunities to access London-based investors through the London Stock Exchange’s Main Market and Specialist Fund Market, including: Boussard and Gauvaudan Holdings, BH Global, Castle Alternative Invest, FRM Diversified Alpha, Marwyn Value, and MW Tops. They benefit from the deepest liquidity available to publicly quoted alternative investment vehicles.
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Financial Times – The London market’s new year bounce continued into a fifth session, but Tate & Lyle missed the trend.
Tate lost 8.5 per cent to 386¼p amid speculation that Harbinger, its second-biggest shareholder, might have to sell to meet redemptions.
The US hedge fund run by Philip Falcone cut its holding from 19 per cent to 13.9 per cent through December.
Tate shares were also hit by concerns that the sweetener industry had failed to push through price rises. Supply contracts for 2009 have been fixed at 1-2 cents above last year’s levels, but below the 3½-cent increase requested, according to a trade press report.
Tate shares rallied 5.5 per cent last week, helped by talk of a Russian investor looking to buy a 10 per cent stake but had struggled to find a broker willing to take the trade.
The FTSE 100 closed up 0.4 per cent, rising 17.85 points to a two-month high of 4579.64. Activity remained at holiday levels, however, with just over 840m blue-chip shares changing hands.
Investors Chronicle – 2008 witnessed a boom and bust of monumental proportions in the junior mining and oil and gas sectors. From being among the London market’s strongest performers, driven by record commodity prices, resources stocks plummeted out of favour even more rapidly to languish among the market’s laggards.
Although strong recovery is unlikely in the short term, the longer term outlook for resources remains bullish. The world will run on oil for many years to come, and analysts estimate a $70-80/barrel oil price is needed to drive sufficient exploration and supply to satisfy likely demand when economies recover. Growth-driven Asian demand for all commodities, though slowing, has in all probability built up an unstoppable momentum.
Supply-side constraints plus the possibility of a weakening dollar and further falls in equities will create upward price pressure on oil, gold and other commodities. Commodities may start to recover during the year, depending on the severity and duration of the recession. Even if they don’t, continued low prices will deter exploration and development, and cause supply shortages, which will simply store upward price momentum to be released when economies eventually do recover. What’s more, the depth of the current downturn suggests that post-recession demand could rapidly create supply pressures, an over-correction and renewed price shocks.
