CMA Global Hedge

Interim Management Statement

RNS Number : 1796M
CMA Global Hedge PCC Ltd
19 May 2010

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



Performance Review


The first quarter of 2010, was overall flat to slightly positive for the Company's portfolio at the same time as it continued to raise liquidity across the portfolio. This 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 so far this year has not been made with a significant haircut or at a discount.


The Company's USD NAV was positive 0.86% in January, negative -0.48% in February, and negative -0.24% in March.


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 stopped in December 2009 according to the resolutions passed at the EGM held in December. The Company will not be currency hedging going forward. 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 appreciated significantly in the first quarter of 2010 the EUR and GBP classes performed much better than the USD class. The EUR class was up 4.03% in January, 1.13% in February, and 0.87% in March. The GBP class was up 1.79% in January, 4.52% in February, and 0.12% in March.


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.


The remainder of the portfolio which has not been yet liquidated represents illiquid assets invested into Equity, Arbitrage and Trading managers.


We expect the majority of these holdings to be liquidated in the next 2-3 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


Summer 2010


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 26%. 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 as expected.


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