ZURICH, Switzerland (HedgeWorld.com)- Fund of funds Altin AG now is tracking closely its net asset value on the Swiss and London stock exchanges, after trading at a discount for years.
Altin’s NAV increased by 8.7% in 2003, but its share price rose at a much higher rate, the firm announced. It was trading around US$45 on both exchanges at the beginning of this year, within a few cents of its NAV.
By contrast, the stock traded at a 25% discount to its NAV at the start of 2001. Altin’s board of directors instituted measures to reduce the discount .
The fund of funds currently is about 50% invested in arbitrage and relative value strategies, with an emphasis on merger arbitrage and credit spread volatility trading. The rest of it is almost equally divided between long/short equity funds on the one hand and macro and CTA funds on the other.
Syz & Co. Group, Altin’s manager, has more than US$1 billion in hedge fund investments out of total assets of US$5.5 billion.
The few hedge fund firms that trade on exchanges have tended to be priced below their asset values. London-based Man Group plc* went up substantially on the London Stock Exchange in the past 12 months, but analysts continue to see it as undervalued .
Man is the largest freestanding hedge fund business and a component of the FTSE 100 index.
*Man Group plc is a minority investor in HedgeWorld.