CMAE Cma GL. Eur

 

TIDMCMAE TIDMCMAU TIDMCMAS 
 
RNS Number : 7077C 
CMA Global Hedge PCC Ltd 
18 November 2009 
 

CMA Global Hedge PCC Ltd ("The Company") - Interim Management 
Statement 
November 2009 
 
 
 
 
Performance Review 
 
 
The period since July 1st 2009 was positive for the Company while at the same 
time it continued to raise liquidity across the portfolio. 
The Company's US Dollar NAV was up 0.97% in July, 0.60% in August, and 0.48% in 
September bringing the year to date NAV return for 2009 to 3.71%. Furthermore, 
the estimated performance for October was flat. 
 
 
In terms of leverage the Company at the end of March 2009 fully repaid its loan 
and has not deployed any leverage since. In fact it has been operating with a 
very high level of cash which at the end of September was 57.6% of its NAV and 
exceeded 60% during October. It is expected to increase further before the end 
of the year. 
 
 
Market Overview 
 
 
Equity markets globally continued their strong performance during most of the 
period with the exception of October. Even with September being a historic month 
of poor performance that has been well-documented, a number of market 
participants were surprised as share prices maintained the upward move in a 
continuation of the rally since March's bottom. The S&P 500 returned 3.6% in 
September, 3.4% in August and 7.4% in July with nearly all sectors moving 
higher. Only October was negative with a return of -2%. 
Highly cyclical sectors such as industrials, financials, technology, and energy 
continued to lead the way while lower beta stocks in utilities and healthcare 
moved less aggressively. The Vix continued its trend and moved steadily lower 
into the low 20s. 
 
 
In the event-driven space, the environment also improved during the period. 
Conservative managers did not participate as much in the upside while the more 
directional managers were rewarded. M&A announcements staged an uptick in volume 
to over $140 billion for the month. Healthcare, technology, agriculture, and 
insurance were particular areas of activity and there was a notable increase in 
divestitures as firms sought to become more focused and efficient. Many 
participants believe that as many corporate balance sheets strengthen by 
hoarding cash, a larger wave of activity is coming over the next 12-18 months 
and should provide plenty of opportunity for these managers. 
 
 
As we look forward, there will be more of a focus on revenue growth than in the 
past few quarters. Whether investors will applaud continued cost-cutting 
benefits remains to be seen, and their decisions will reflect the tone that will 
move markets going forward. A hopeful resumption of more normal market activity 
where correlations decrease further and quality means something is expected. 
However, it is noted that consensus has moved towards a bullish tone over the 
next couple of quarters as year-over-year comparatives should be easy to beat, 
but fears of a late 2010 correction are growing. 
 
 
Portfolio Update 
 
The Company has been focused on liquidating the portfolio and will continue to 
do so. It has thus not participated to any significant extent in the equity 
rally mentioned above but has managed to raise very significant cash in light of 
the passing by a very large majority of the discontinuation vote of the Company 
on the 3rd September. In more detail, as the Company has already announced, at 
the Extraordinary General Meeting of the Company duly convened and held on 3 
September 2009 the resolution for the discontinuation of the Company was passed 
as an Ordinary Resolution of the Company, with 88.93 per cent. of votes cast in 
favour. The Board is presently preparing appropriate proposals and will present 
them to shareholders as soon as practicable. 
 
 
The remainder of the portfolio which has not been yet liquidated represents less 
liquid assets invested into Equity, Arbitrage and Trading managers. The Manager 
will continue to focus on liquidating the remaining assets and it expects that 
the majority of them may have been liquidated in the next 12-18 months. 
 
 
 
 
Strategy Allocation as at 30 September 2009 
 
 
+------------------------+--------+ 
| Strategy               |   %    | 
+------------------------+--------+ 
| Systematic Trading     |  7.88% | 
+------------------------+--------+ 
| Absolute Yield         | 14.64% | 
+------------------------+--------+ 
| Equity Long/Short      |  1.02% | 
+------------------------+--------+ 
| Convertible Arbitrage  |  3.57% | 
+------------------------+--------+ 
| Global Macro           |  6.03% | 
+------------------------+--------+ 
| Distressed             |  8.52% | 
+------------------------+--------+ 
| CASH                   | 57.60% | 
+------------------------+--------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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