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CMA Global Hedge (CMAE)


Friday 19 November, 2010

CMA Global Hedge

Interim Management Statement

RNS Number : 4965W
CMA Global Hedge PCC Ltd
19 November 2010

CMA Global Hedge PCC Ltd ("The Company") - Interim Management Statement November 2010



Performance Review


2010 has so far been negative for the Company, as it continued to raise liquidity across the portfolio. The first quarter was overall flat to slightly positive, while the second and third quarters were negative. For the 9 months to the end of September 2010 the Company's USD NAV was down 6.85%. We consider this not unusual nor excessive while the portfolio is being liquidated. In fact it tells us that the illiquid assets that have so far been realized, have done so on average at values close to NAV. i.e. the liquidation of the illiquid assets has continued to be made without any significant haircut or discount.


For the same 9-month period the EUR Class NAV was down 1.82% while the GBP Class NAV was down 4.22%.


Leverage and FX Hedging


The Company at the end of March of 2009 fully repaid its leverage and will not deploy any leverage again. The FX hedging program of the Company was also stopped in December 2009 according to the resolutions passed at the EGM held.

This means that the value of the EUR and GBP classes who are linked to the same USD denominated portfolio will fluctuate, in addition to the performance of the portfolio, according to the USD/EUR and USD/GBP exchange rates.


As the USD overall appreciated in the 9 months of 2010 to the end of September, the net effect for the EUR and GBP classes has been better performance than the USD class as mentioned above.


Portfolio Update


We have been focused on liquidating the portfolio and will continue to do so. An indicative expected liquidation schedule for the remaining portfolio is below.


At the end of June the Company had cash of around 13m USD or 35% of its NAV and at the end of September over 17m USD or around 50% of its NAV. The Company is intending to make a significant cash distribution to its shareholders.


The remainder of the portfolio which has not been yet liquidated represents illiquid assets invested primarily into Arbitrage strategies. There is also some exposure to Macro and Equity strategies.


We expect the majority of these holdings to be liquidated in the next 3 years. The below schedule is indicative, based on available information at the time as well as subjective expectations.




Expected Liquidation Schedule of Remaining Portfolio


Current cash


December 2010


December 2011


2012 or later







Liquidation Update


So far in 2010 we have received several cash distributions from underlying funds which brought our cash level to approximately 51%. This has been relatively close to our expectations and we have not had any significant unpleasant surprises. We will continue to focus our efforts so that the orderly liquidation of the portfolio continues in the best possible way.


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