In a statement to the ASX, the listed absolute return fund HFA Accelerator Plus Limited (HAP) has announced an Asset Realisation Program in which it will redeem all of its leveraged instruments (i.e. notes and swaps). HAP is undertaking the program in order to protect shareholder value in the current environment.
HAP stated: "The HAP investment model is predicated on leveraging HAP's capital 3 times as an investment in the Lighthouse Diversified Fund, a diversified offshore fund of hedge funds.
The HAP model was designed to provide superior returns in a wide variety of hedge funds with different investment strategies. The model was successful during periods of high capital market liquidity and market confidence in the global economy. However, the HAP model has underperformed during the sustained deterioration of global capital markets over the past 12 months."
HAP is listed in the AFM database under a Global Diversified strategy and recorded a return of negative 20.89% in October bringing its year-to-date (YTD) return to negative 52.79%.
To read the full statement, click here.
