Swiss alternative investment company ALTIN AG has said it intends to maintain its share price by buying back between 5% and 10% of its own shares, its Board of Directors has also approved a capital reduction program. The fund of hedge fund's management performance was predictably negative (-29.20%) in 2008, yet considerably higher than key stock market indices.
2008 proved a particularly harsh year for the financial markets, compounded by additional difficulties specific to the hedge fund industry. The severe credit crisis often forced hedge funds to fire-sell positions.
In addition, the increased correlation between hedge funds and equity markets did not protect them against falling stock markets. In performance terms, the year 2008 has thus been negative for hedge funds and ALTIN proved no exception with a -29.20% fall in its net asset value. However, in light of the losses incurred by world stock markets over the same period, this result is acceptable and hedge funds remain the best performing asset class over the medium term.
Invested in approximately 40 hedge funds, the company has chosen to avoid illiquid strategies that have caused the closing of a number of hedge funds, ALTIN’s manager has been favouring liquidity since 2007.
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