BBVA says getting out of alternative investments |
Date: Friday, February 27, 2009
Author: Reuters.com
Spanish bank BBVA (BBVA.MC) said on Thursday that it would close down its alternative investment businesses including hedge funds and would reimburse investors.
"The bank has decided to anticipate the possible effects of the current situation of markets and of the alternative investment industry via an orderly exit in order to safeguard the interests of investors and of the bank itself," BBVA said in a statement.
BBVA said it would move to close Proxima Alfa Investments, whose funds total $930 million, and Altitude, which manages hedge funds totalling a bit over 125 million euros ($159.2 million). In both cases, most of the funds are in the hands of institutional investors.
BBVA said the amount involved was equivalent to less to 1 percent of its asset management business. (Reporting by Jason Webb; editing by Judy MacInnes)
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