WEST PALM BEACH, FL (www.hedgeco.net) – Aman Capital Management Pte Ltd., of Singapore has confirmed it is returning investor money in its main hedge fund back to its holders. According to publishedreports, the fund is in the process of liquidating soon. Mayur Ghelani, director at Aman Capital, told news correspondents, “We have not shut down.” But he also confirmed reports that the fund iscurrently cashing out since April 2005.
The Hedge fund reportedly lost some money in its derivatives trades, in the tens of millions but no specific amount was mentioned. The hedge fund manager operated a US$240-million hedge fund, which invested in currencies, bonds and equities. Some of the losses were also traced to South Korean stock investments; the firm also confirmed reports that the fund�s manager Michael Syn who was formerly a derivatives trader at UBS AG has also departed the fund.
One of the managers of the fund also said, �The fund is no longer trading; the directors are taking steps to make distributions to shareholders, and that all shareholders have been kept fully informed of the situation.” Such closure may create some public relations issue for Singaporean financial authorities, who have been trying to entice more investors to the country. Singapore has moderated its hedge fund investment regulations few years ago in a bid to woe many international hedge fund managers and operators to the country.
Peter Douglas, council member for the Singapore chapter of the Alternative Investment Management Association, downplayed the significance of such closure on the country. He believes the impact would have minimal effects on the country, he however regretted such event. Douglas said, “We have seen a lot of noise blowing around about whether this is some kind of Armageddon, and I have to say that investment funds lose money every week of the year.� Adding, “In that case, at worst, we have a situation where some big professional investors lost 20% of their money in one fund out of presumably several tens or even hundreds of funds that they have.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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