One fund removed from NHX – Two pending

Date: Friday, January 9, 2009
Author: Hedge Nordic.com

The Norwegian hedge fund Discovery Fund has been removed from The Nordic Hedge Fund Index (NHX) as the fund is winding-up.

The hedge funds Scandium Fund Limited and Scandium Absolute Return fund may be removed from NHX in February, as the funds have not reported their performance for November. The funds are having problems due to the absence of liquidity in the markets and the forced selling of assets, Hedgenordic.com was told in an email in December:

- To date, the ongoing financial crisis has severely impacted asset values across equity and fixed income markets in which many of our underlying managers operate. This combined with an absence of liquidity in these markets and forced selling of assets in November by a number of large hedge funds undergoing liquidation has caused significant losses within our portfolio. In November we expect these factors to impact our performance in the region of -10% to -12% making the year to date return in the region of -21% to -23%. As a result of the difficulties experienced by a number of Scandium Absolute Return Fund underlying holdings and their decision to suspend subscriptions and redemptions, the Directors of Scandium Absolute Return Fund have resolved to suspend all subscriptions and redemptions from the fund. The Board of Directors believe this course of action is in the best interests of all shareholders.