BGHL August 2008 newsletter

I.      Company Information


   General information
   Investment Manager  Boussard & Gavaudan Asset Management, L.P.
   Company Domicile    Guernsey
   Website             www.bgholdingltd.com
   Management fee      1.5% p.a.
   Performance fee     20%




                      SEDOL   ISIN         Reuters Bloomberg
         EUR LSE      B28ZZQ1 GG00B1FQG453 BGHLx.L BGHL LN
         EUR Euronext B1FQG45 GG00B1FQG453 BGHL.AS BGHL NA
         GBX LSE      B39VMM0 GG00B39VMM07 BGHS.L  BGHS LN
         GBX Euronext B39VMM1 GG00B39VMM07 BGHS.AS BGHS NA



II.   Overview

Boussard  &  Gavaudan   Holding  Limited  ("BGHL")   is  a   Guernsey
closed-ended investment  company and  is  registered with  the  Dutch
Authority for the Financial Markets as a collective investment scheme
under article 1:107 of the  Dutch Financial Markets Supervision  Act.
BGHL invests its assets in order  to deliver an exposure to  multiple
alternative investment strategies managed by the Investment  Manager.
The investment objective is to seek to produce long-term appreciation
of its assets. BGHL will seek to achieve this by investing into  Sark
Fund Limited  ("Sark Fund").  In addition,  a proportion  of the  net
assets of the BGHL may, at the discretion of the Investment  Manager,
be invested  in  other  hedge funds  and/or  other  financial  assets
selected  by  the  Investment  Manager.  As  at  today's  note,   two
investments have been made. BGHL aims to generate a target annualised
return in excess of 10% (net of all fees).

I.      Share information


   NAV                                Euro Shares Sterling Shares
   Estimated NAV                       ¤10.4112       £9.8372
   Estimated Month to date return        0.24%        -0.18%
   Estimated Year to date return        -6.21%        -1.63%
   Estimated Inception to date return    4.11%        -1.63%




  Euro Shares                         Amsterdam (AEX) London (LSE)
  Market close                             ¤8.40         ¤8.50
  Premium / discount to estimated NAV     -19.32%       -18.36%




  Sterling Shares                     Amsterdam (AEX) London (LSE)
  Market close                              n/a        GBX 825.00
  Premium / discount to estimated NAV       n/a         -16.13%



In the context of the current discount to NAV, the Company  continues
to purchase some of its own shares into treasury.


                                 Euro Shares Sterling Shares
         Shares issued           83,958,598     5,117,202
         Shares held in treasury  4,918,110       1,000
         Shares outstanding      79,040,488     5,116,202





Total value of the investments  of BGHL based on  the    ¤885 million
estimated NAV for the shares outstanding
Market capitalisation of BGHL based on the share
price for the shares outstanding                         ¤716 million
Amsterdam (AEX) market close for the Euro Shares &
London (LSE) market close for the Sterling shares

II.         BGHL Composition

The proceeds  of  the  initial  public offering  of  BGHL  have  been
invested into the Sark Fund as of October 31, 2006 (net of a  certain
amount retained  by  BGHL  for  working  capital  requirements).  The
proceeds of  the  secondary  offering  of  BGHL  (approximately  ¤534
million) have been entirely invested into the Sark Fund: ¤530 million
as of July 1, 2007 and approximately ¤4 million as of August 1,  2007
(as a result of the over-allotment).

In addition to  having 100% of  its proceeds invested  into the  Sark
Fund, BGHL is invested in private equity companies.

A.     Sark Fund Limited

Note that trade examples  detailed in each  strategy below are  among
the best and worst performances of the month.


Commentary and highlights
European equities markets were very quiet in August. The Eurostoxx 50
ended the  month flat  and volatilities  on stock  markets  decreased
further with the  VDAX index down  to 19.7% from  21% and the  VStoxx
index down to 21.1% from  23.3%. Corporate credit spreads widened  to
some extent with the Itraxx Crossover at 548bps (+27 points).

Credit strategies
Credit strategies continued to perform poorly in August, and  weighed
-7bps* on the fund's return.  We suffered from further re-pricing  on
one of our stressed positions, as liquidations from CLOs, late in the
month, drove price  action. This caused  a substantial re-pricing  of
the debt, despite better  than expected results  from the company  in
June. This position remains  challenging, and we  expect the debt  to
exceed its financial  leverage covenant at  the end of  the year.  We
think the sponsor  of this  deal will  elect to  solve the  situation
through an "equity cure".

Funded instruments continued  to underperform CDS  in August, and  we
expect this behavior to  prevail for the  foreseeable future. The  Q2
earnings season  for high  yield issuers  is ending  with, at  large,
results that are not as bad  as one would have feared for  industrial
and chemical companies. This has  challenged short risk positions  in
the credit market  in the 2nd  half of  the month, and  we will  take
advantage of tighter spreads  to add to  several hedges. Indeed,  the
biggest story of  recent weeks is  a decisive turn  for the worse  in
non-US macro data.  Once again, we still think we are at the onset of
a credit cycle, and therefore are looking to allocate capital only to
very specific situations. Furthermore, we do not think risk/reward is
ultra compelling on most short-term directional trades right now.

Equity Strategies
Equity strategies  contributed  a  positive 47bps*  in  August.  Seat
Pagine Gialle,  the  Italian  yellow  pages,  contributed  positively
during the month  following results announcement  better than  market
expectations. IFI-IFIL, the  Agnelli holding companies,  outperformed
following  the  sale  of  Amber  capital's  stake  to  the  Agnellis,
triggering speculation of corporate restructuring. GFI  Informatique,
the French IT services provider, also performed on a resilient set of
results.

On the negative side, the Thomson Reuters dual listing spread widened
due  to  continued  availability  issues  with  the  Canadian   line.
Additional modest losses were spread  across a number of  investments
in the portfolio.

Volatility strategies
Convertible bond arbitrage
The  convertible   bonds book contributed   a  negative   40bps*   to
the fund's performance  in August,  with a  negative 60bps*  actually
coming  from  the  credit  restructuring  trades  that  were  sharply
remarked down in  very light  trading volumes, probably  more due  to
market illiquidity rather than corporate fundamentals. Some of  these
bonds now trade with 30% bid/offer spreads!
The rest of the convertible  bond book contributed positively to  the
performance  of  the  fund,  with   a  mix  of  theta  from   (other)
credit-sensitive  names,   gamma/vega   from  the   long   volatility
positions, and  as  the Fortis Convertible  And  Subordinated  Hybrid
Equity-linked Securities ('CASHES')  were marked  slightly up.  There
was no new issue in Europe  in August, and our trading was  extremely
limited, reflecting the very low  level of activity and liquidity  on
the European secondary market globally.

Mandatory convertible bond arbitrage
The mandatory convertible  bond book  stabilized this  month, with  a
negative 6bps*  contribution to  the performance  of the  fund, in  a
context of  muted  activity,  very  low liquidity  and  lack  of  any
significant flows on the secondary market, apart from one block which
traded towards the end of the month.  We bought that block in one  of
our most short-dated mandatory positions at a very good discount  and
intend  to  hold  it  until  maturity.  The  long  standing  UBS/BBVA
mandatory exchangeable bond  position contributed negatively as  UBS'
credit spread widened on the back of the ¤1.75bn 5-year new issue  by
the Swiss bank (priced at mid swaps + 165bps). On the positive  side,
the Fresenius mandatory was marked  up, and we benefited from  strong
gamma gains  on the  Lukoil mandatory  position on  the back  of  the
recent volatility in the oil price and the uncertainties  surrounding
the Caucasus situation. The European mandatory market continues to be
characterized by very low liquidity and a clear lack of participants,
but we remain  very excited  and convinced that  it offers  extremely
attractive opportunities for the Sark fund

Gamma Trading
Gamma trading  posted a  negative 10bps*  to the  performance of  the
fund.  Markets  recovered  from  their  lows  recorded  mid-July  and
tensions about the  health of  the US  financial system  eased. As  a
typical holiday season,  volatilities drifted slightly  lower on  low
realized volatility and thin  volumes. Dollar/ Oil sensitive  sectors
(cars, airlines) jumped higher while implied volatilities went lower.

Trading
Trading contributed  a positive  29bps*  to the  fund's  performance,
mostly driven by the Société Générale rerating over earnings, both in
absolute and relative terms.


As of  September 1,  2008, Sark  Master Fund  Limited's assets  under
management were approximately ¤1.8bn.

Annex 1: Greeks


                               Greeks
Delta                              1.25%   1.25 bps P&L variation for
                                           market +1%
Gamma                              2.87%   Delta variation for market
                                           +1%
Vega                            17.9 bps   By vol point
Vega  with   maturity   weight  23.7 bps   By vol point
(1/sqrt(T))
Theta                           -2.3 bps   By day
Rho                             -0.2 bps   For 1 bp of interest rates
                                           increasing
Credit sensitivity              -2.5 bps   For 1 bp of credit spreads
                                           widening



Annex 2: Performance attribution


      Contribution to the performance*
Credit strategies                      -7 bps
Credit                                 -5 bps
Capital Structure Arbitrage            -2 bps
Equity strategies                      47 bps
Risk Arbitrage / Special Situations    17 bps
Value with Catalyst / Value            31 bps
Volatility strategies                 -57 bps
Mandatory Convertible Bond Arbitrage   -6 bps
Convertible Bond Arbitrage            -40 bps
Gamma Trading                         -10 bps
Warrant Arbitrage                      -1 bps
Trading                                29 bps



Total                                 12 bps



Annex 3: Equity at Risk


                            Equity at Risk
Credit Strategies                6.5%
                     Credit      5.7%
Capital Structure Arbitrage      0.5%
             Restructurings      0.3%
Equity Strategies               15.9%
             Risk Arbitrage      1.0%
         Special Situations      3.8%
        Value with Catalyst     10.4%
                      Value      0.7%
Volatility Strategies           29.3%
        Mandatory Arbitrage     23.5%
 Convertible Bond Arbitrage      4.2%
              Gamma Trading      1.6%
         Warrants Arbitrage      0.0%
Trading                          1.5%
                    Trading      1.5%
Total                           53.2%



Annex 4: Historical returns summary

Euro share class


Year  Jan   Feb   Mar   Apr   May   Jun   Jul   Aug    Sep   Oct   Nov   Dec   YTD     ITD
2003   -     -   0.75% 0.76% 0.82% 1.04% 0.93% 1.06%  1.18% 1.55% 1.05% 0.17% 9.69%   9.69%
2004 1.07%   -   1.03% 0.22% 0.14%   -     -     -      -     -   1.18% 1.07% 2.81%  12.77%
           0.12%                   0.29% 0.42% 0.42%  0.19% 0.49%
2005 1.70% 1.06% 1.09%   -   0.27% 1.27% 1.16% 0.50%  1.00%   -   0.71% 0.77% 8.70%  22.58%
                       0.69%                                0.44%
2006   -   1.56% 1.64% 0.86%   -   1.35% 0.40% 1.56%  2.73% 2.90% 2.34% 2.91% 18.99% 45.85%
     0.18%                   0.47%
2007 3.14% 1.46% 4.67% 0.74% 1.39%   -   0.87%   -      -   1.83%   -     -   5.85%  54.38%
                                   2.24%       2.20%  0.31%       2.15% 1.24%
2008   -     -     -   1.10% 1.13%   -     -   0.12%*   -     -     -     -     -    45.52%*
     2.08% 0.01% 2.35%             2.33% 1.39%                                5.74%*



US Dollar share class


Year  Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec   YTD     ITD
2003   -     -   0.67% 0.70% 0.77% 0.94% 0.84% 0.97% 1.15% 1.46% 1.01% 0.15% 9.00%   9.00%
2004 1.00%   -   0.96% 0.13% 0.07%   -     -     -     -     -   1.16% 1.06% 2.08%  11.27%
           0.17%                   0.35% 0.47% 0.47% 0.24% 0.59%
2005 1.66% 1.08% 1.09%   -   0.31% 1.30% 1.22% 0.62% 1.06%   -   0.81% 0.89% 9.45%  21.79%
                       0.64%                               0.32%
2006   -   1.64% 1.78% 1.08%   -   1.49% 0.56% 1.74% 2.83% 3.06% 2.64% 3.01% 21.29% 47.72%
     0.01%                   0.29%
2007 3.19% 1.58% 4.82% 0.89% 1.45%   -   0.97%   -     -   1.92%   -     -   6.97%  58.02%
                                   2.15%       2.12% 0.22%       2.13% 1.17%
2008   -     -     -   1.02% 0.98%   -     -     -     -     -     -     -     -    47.32%*
     2.12% 0.07% 2.57%             2.52% 1.50% 0.12*                         6.77%*


Annex 5: Macroeconomic risks through stress tests

General stress tests


             Scenario                   Description           Impact
                                                             % of NAV
                               Spot : 10% ; Credit : 0% ;
1   Delta - spot up            Vol : 0% ; Rates : 0%            1.45%
                               Spot : -10% ; Credit : 0% ;
2   Delta - spot down          Vol : 0% ; Rates : 0%            1.31%
                               Spot : 0% ; Credit : 0% ; Vol
3   Vega - vol up              : 10% ; Rates : 0%               0.54%
                               Spot : 0% ; Credit : 0% ; Vol
4   Vega - vol down            : -10% ; Rates : 0%             -0.49%
                               Spot : 0% ; Credit : 25% ;
5   Credit spread widen        Vol : 0% ; Rates : 0%           -2.06%
                               Spot : 0% ; Credit : -25% ;
6   Credit spread tighten      Vol : 0% ; Rates : 0%            2.35%
                               Spot : -10% ; Credit : 50% ;
7   Market crash 1             Vol : 30% ; Rates : 0%          -1.20%
                               Spot : -20% ; Credit : 75% ;
8   Market crash 2             Vol : 50% ; Rates : 0%           1.01%
                               Spot : -30% ; Credit : 100% ;
9   Market crash 3             Vol : 70% ; Rates : 0%           4.18%
                               Spot : -10% ; Credit : 50% ;
10  Market crash, rates down 1 Vol : 30% ; Rates : -12.5%      -1.12%
                               Spot : -20% ; Credit : 75% ;
11  Market crash, rates down 2 Vol : 50% ; Rates : -12.5%       1.08%
                               Spot : -30% ; Credit : 100% ;
12  Market crash, rates down 3 Vol : 70% ; Rates : -12.5%       4.23%
                               Spot : -10% ; Credit : 50% ;
13  Market crash, rates up 1   Vol : 30% ; Rates : 12.5%       -1.27%
                               Spot : -20% ; Credit : 75% ;
14  Market crash, rates up 2   Vol : 50% ; Rates : 12.5%        0.95%
                               Spot : -30% ; Credit : 100% ;
15  Market crash, rates up 3   Vol : 70% ; Rates : 12.5%        4.14%
    Equity Credit              Spot : 5% ; Credit : 25% ;
16  decorrelation 1            Vol : 0% ; Rates : 0%           -1.62%
    Equity Credit              Spot : 5% ; Credit : 25% ;
17  decorrelation 2            Vol : 10% ; Rates : 0%          -1.08%
    Equity Credit              Spot : 5% ; Credit : 25% ;
18  decorrelation 3            Vol : -10% ; Rates : 0%         -2.10%
    Equity Credit              Spot : -5% ; Credit : -25% ;
19  decorrelation 4            Vol : 10% ; Rates : 0%           3.18%
    Equity Credit              Spot : -5% ; Credit : -25% ;
20  decorrelation 5            Vol : -10% ; Rates : 0%          2.19%
    Equity Credit              Spot : 0% ; Credit : 25% ;
21  decorrelation 6            Vol : 10% ; Rates : 0%          -1.52%
    Equity Credit              Spot : 0% ; Credit : 25% ;
22  decorrelation 7            Vol : -10% ; Rates : 0%         -2.55%
                               Spot : 5% ; Credit : -25% ;
23  Market rally 1             Vol : -10% ; Rates : 0%          2.27%
                               Spot : 5% ; Credit : -25% ;
24  Market rally 2             Vol : 0% ; Rates : 0%            2.75%
                               Spot : 5% ; Credit : -25% ;
25  Market rally 3             Vol : 10% ; Rates : 0%           3.30%
                               Spot : 10% ; Credit : -25% ;
26  Market rally 4             Vol : -10% ; Rates : 0%          3.32%
                               Spot : 10% ; Credit : -25% ;
27  Market rally 5             Vol : 0% ; Rates : 0%            3.77%
                               Spot : 10% ; Credit : -25% ;
28  Market rally 6             Vol : 10% ; Rates : 0%           4.30%
                               Spot : 5% ; Credit : -25% ;
29  Market rally, Inflation 1  Vol : -10% ; Rates : 12.5%       2.10%
                               Spot : 5% ; Credit : -25% ;
30  Market rally, Inflation 2  Vol : 0% ; Rates : 12.5%         2.59%
                               Spot : 5% ; Credit : -25% ;
31  Market rally, Inflation 3  Vol : 10% ; Rates : 12.5%        3.14%
                               Spot : 10% ; Credit : -25% ;
32  Market rally, Inflation 4  Vol : -10% ; Rates : 12.5%       3.17%
                               Spot : 10% ; Credit : -25% ;
33  Market rally, Inflation 5  Vol : 0% ; Rates : 12.5%         3.62%
                               Spot : 10% ; Credit : -25% ;
34  Market rally, Inflation 6  Vol : 10% ; Rates : 12.5%        4.16%
                               Spot : 5% ; Credit : -25% ;
35  Market rally, Inflation 7  Vol : -10% ; Rates : 25%         1.95%
                               Spot : 5% ; Credit : -25% ;
36  Market rally, Inflation 8  Vol : 0% ; Rates : 25%           2.44%
                               Spot : 5% ; Credit : -25% ;
37  Market rally, Inflation 9  Vol : 10% ; Rates : 25%          2.99%
                               Spot : 10% ; Credit : -25% ;
38  Market rally, Inflation 10 Vol : -10% ; Rates : 25%         3.03%
                               Spot : 10% ; Credit : -25% ;
39  Market rally, Inflation 11 Vol : 0% ; Rates : 25%           3.50%
                               Spot : 10% ; Credit : -25% ;
40  Market rally, Inflation 12 Vol : 10% ; Rates : 25%          4.04%
    Worst                                                      -2.55%


Stress tests with small and mid caps adjustments


             Scenario                   Description           Impact
                                                             % of NAV
                               Spot : 10% ; Credit : 0% ;
1   Delta - spot up            Vol : 0% ; Rates : 0%            2.17%
                               Spot : -10% ; Credit : 0% ;
2   Delta - spot down          Vol : 0% ; Rates : 0%            0.63%
                               Spot : 0% ; Credit : 0% ; Vol
3   Vega - vol up              : 10% ; Rates : 0%               0.54%
                               Spot : 0% ; Credit : 0% ; Vol
4   Vega - vol down            : -10% ; Rates : 0%             -0.49%
                               Spot : 0% ; Credit : 25% ;
5   Credit spread widen        Vol : 0% ; Rates : 0%           -2.06%
                               Spot : 0% ; Credit : -25% ;
6   Credit spread tighten      Vol : 0% ; Rates : 0%            2.35%
                               Spot : -10% ; Credit : 50% ;
7   Market crash 1             Vol : 30% ; Rates : 0%          -1.90%
                               Spot : -20% ; Credit : 75% ;
8   Market crash 2             Vol : 50% ; Rates : 0%          -0.39%
                               Spot : -30% ; Credit : 100% ;
9   Market crash 3             Vol : 70% ; Rates : 0%           2.08%
                               Spot : -10% ; Credit : 50% ;
10  Market crash, rates down 1 Vol : 30% ; Rates : -12.5%      -1.82%
                               Spot : -20% ; Credit : 75% ;
11  Market crash, rates down 2 Vol : 50% ; Rates : -12.5%      -0.32%
                               Spot : -30% ; Credit : 100% ;
12  Market crash, rates down 3 Vol : 70% ; Rates : -12.5%       2.13%
                               Spot : -10% ; Credit : 50% ;
13  Market crash, rates up 1   Vol : 30% ; Rates : 12.5%       -1.97%
                               Spot : -20% ; Credit : 75% ;
14  Market crash, rates up 2   Vol : 50% ; Rates : 12.5%       -0.45%
                               Spot : -30% ; Credit : 100% ;
15  Market crash, rates up 3   Vol : 70% ; Rates : 12.5%        2.04%
    Equity Credit              Spot : 5% ; Credit : 25% ;
16  decorrelation 1            Vol : 0% ; Rates : 0%           -1.27%
    Equity Credit              Spot : 5% ; Credit : 25% ;
17  decorrelation 2            Vol : 10% ; Rates : 0%          -0.73%
    Equity Credit              Spot : 5% ; Credit : 25% ;
18  decorrelation 3            Vol : -10% ; Rates : 0%         -1.75%
    Equity Credit              Spot : -5% ; Credit : -25% ;
19  decorrelation 4            Vol : 10% ; Rates : 0%           2.83%
    Equity Credit              Spot : -5% ; Credit : -25% ;
20  decorrelation 5            Vol : -10% ; Rates : 0%          1.85%
    Equity Credit              Spot : 0% ; Credit : 25% ;
21  decorrelation 6            Vol : 10% ; Rates : 0%          -1.52%
    Equity Credit              Spot : 0% ; Credit : 25% ;
22  decorrelation 7            Vol : -10% ; Rates : 0%         -2.55%
                               Spot : 5% ; Credit : -25% ;
23  Market rally 1             Vol : -10% ; Rates : 0%          2.62%
                               Spot : 5% ; Credit : -25% ;
24  Market rally 2             Vol : 0% ; Rates : 0%            3.10%
                               Spot : 5% ; Credit : -25% ;
25  Market rally 3             Vol : 10% ; Rates : 0%           3.65%
                               Spot : 10% ; Credit : -25% ;
26  Market rally 4             Vol : -10% ; Rates : 0%          4.03%
                               Spot : 10% ; Credit : -25% ;
27  Market rally 5             Vol : 0% ; Rates : 0%            4.48%
                               Spot : 10% ; Credit : -25% ;
28  Market rally 6             Vol : 10% ; Rates : 0%           5.01%
                               Spot : 5% ; Credit : -25% ;
29  Market rally, Inflation 1  Vol : -10% ; Rates : 12.5%       2.45%
                               Spot : 5% ; Credit : -25% ;
30  Market rally, Inflation 2  Vol : 0% ; Rates : 12.5%         2.94%
                               Spot : 5% ; Credit : -25% ;
31  Market rally, Inflation 3  Vol : 10% ; Rates : 12.5%        3.49%
                               Spot : 10% ; Credit : -25% ;
32  Market rally, Inflation 4  Vol : -10% ; Rates : 12.5%       3.88%
                               Spot : 10% ; Credit : -25% ;
33  Market rally, Inflation 5  Vol : 0% ; Rates : 12.5%         4.33%
                               Spot : 10% ; Credit : -25% ;
34  Market rally, Inflation 6  Vol : 10% ; Rates : 12.5%        4.87%
                               Spot : 5% ; Credit : -25% ;
35  Market rally, Inflation 7  Vol : -10% ; Rates : 25%         2.30%
                               Spot : 5% ; Credit : -25% ;
36  Market rally, Inflation 8  Vol : 0% ; Rates : 25%           2.79%
                               Spot : 5% ; Credit : -25% ;
37  Market rally, Inflation 9  Vol : 10% ; Rates : 25%          3.35%
                               Spot : 10% ; Credit : -25% ;
38  Market rally, Inflation 10 Vol : -10% ; Rates : 25%         3.74%
                               Spot : 10% ; Credit : -25% ;
39  Market rally, Inflation 11 Vol : 0% ; Rates : 25%           4.21%
                               Spot : 10% ; Credit : -25% ;
40  Market rally, Inflation 12 Vol : 10% ; Rates : 25%          4.75%
    Worst                                                      -2.55%


Stress tests assuming a third of risk arbitrage trades breaks in case
market drops by more than 10%


             Scenario                   Description           Impact
                                                             % of NAV
                               Spot : 10% ; Credit : 0% ;
1   Delta - spot up            Vol : 0% ; Rates : 0%            1.47%
                               Spot : -10% ; Credit : 0% ;
2   Delta - spot down          Vol : 0% ; Rates : 0%            1.29%
                               Spot : 0% ; Credit : 0% ; Vol
3   Vega - vol up              : 10% ; Rates : 0%               0.54%
                               Spot : 0% ; Credit : 0% ; Vol
4   Vega - vol down            : -10% ; Rates : 0%             -0.49%
                               Spot : 0% ; Credit : 25% ;
5   Credit spread widen        Vol : 0% ; Rates : 0%           -2.06%
                               Spot : 0% ; Credit : -25% ;
6   Credit spread tighten      Vol : 0% ; Rates : 0%            2.35%
                               Spot : -10% ; Credit : 50% ;
7   Market crash 1             Vol : 30% ; Rates : 0%          -1.23%
                               Spot : -20% ; Credit : 75% ;
8   Market crash 2             Vol : 50% ; Rates : 0%           0.69%
                               Spot : -30% ; Credit : 100% ;
9   Market crash 3             Vol : 70% ; Rates : 0%           3.70%
                               Spot : -10% ; Credit : 50% ;
10  Market crash, rates down 1 Vol : 30% ; Rates : -12.5%      -1.15%
                               Spot : -20% ; Credit : 75% ;
11  Market crash, rates down 2 Vol : 50% ; Rates : -12.5%       0.76%
                               Spot : -30% ; Credit : 100% ;
12  Market crash, rates down 3 Vol : 70% ; Rates : -12.5%       3.75%
                               Spot : -10% ; Credit : 50% ;
13  Market crash, rates up 1   Vol : 30% ; Rates : 12.5%       -1.30%
                               Spot : -20% ; Credit : 75% ;
14  Market crash, rates up 2   Vol : 50% ; Rates : 12.5%        0.63%
                               Spot : -30% ; Credit : 100% ;
15  Market crash, rates up 3   Vol : 70% ; Rates : 12.5%        3.67%
    Equity Credit              Spot : 5% ; Credit : 25% ;
16  decorrelation 1            Vol : 0% ; Rates : 0%           -1.61%
    Equity Credit              Spot : 5% ; Credit : 25% ;
17  decorrelation 2            Vol : 10% ; Rates : 0%          -1.07%
    Equity Credit              Spot : 5% ; Credit : 25% ;
18  decorrelation 3            Vol : -10% ; Rates : 0%         -2.09%
    Equity Credit              Spot : -5% ; Credit : -25% ;
19  decorrelation 4            Vol : 10% ; Rates : 0%           3.16%
    Equity Credit              Spot : -5% ; Credit : -25% ;
20  decorrelation 5            Vol : -10% ; Rates : 0%          2.18%
    Equity Credit              Spot : 0% ; Credit : 25% ;
21  decorrelation 6            Vol : 10% ; Rates : 0%          -1.52%
    Equity Credit              Spot : 0% ; Credit : 25% ;
22  decorrelation 7            Vol : -10% ; Rates : 0%         -2.55%
                               Spot : 5% ; Credit : -25% ;
23  Market rally 1             Vol : -10% ; Rates : 0%          2.28%
                               Spot : 5% ; Credit : -25% ;
24  Market rally 2             Vol : 0% ; Rates : 0%            2.76%
                               Spot : 5% ; Credit : -25% ;
25  Market rally 3             Vol : 10% ; Rates : 0%           3.31%
                               Spot : 10% ; Credit : -25% ;
26  Market rally 4             Vol : -10% ; Rates : 0%          3.34%
                               Spot : 10% ; Credit : -25% ;
27  Market rally 5             Vol : 0% ; Rates : 0%            3.79%
                               Spot : 10% ; Credit : -25% ;
28  Market rally 6             Vol : 10% ; Rates : 0%           4.32%
                               Spot : 5% ; Credit : -25% ;
29  Market rally, Inflation 1  Vol : -10% ; Rates : 12.5%       2.11%
                               Spot : 5% ; Credit : -25% ;
30  Market rally, Inflation 2  Vol : 0% ; Rates : 12.5%         2.60%
                               Spot : 5% ; Credit : -25% ;
31  Market rally, Inflation 3  Vol : 10% ; Rates : 12.5%        3.15%
                               Spot : 10% ; Credit : -25% ;
32  Market rally, Inflation 4  Vol : -10% ; Rates : 12.5%       3.19%
                               Spot : 10% ; Credit : -25% ;
33  Market rally, Inflation 5  Vol : 0% ; Rates : 12.5%         3.64%
                               Spot : 10% ; Credit : -25% ;
34  Market rally, Inflation 6  Vol : 10% ; Rates : 12.5%        4.18%
                               Spot : 5% ; Credit : -25% ;
35  Market rally, Inflation 7  Vol : -10% ; Rates : 25%         1.96%
                               Spot : 5% ; Credit : -25% ;
36  Market rally, Inflation 8  Vol : 0% ; Rates : 25%           2.45%
                               Spot : 5% ; Credit : -25% ;
37  Market rally, Inflation 9  Vol : 10% ; Rates : 25%          3.00%
                               Spot : 10% ; Credit : -25% ;
38  Market rally, Inflation 10 Vol : -10% ; Rates : 25%         3.05%
                               Spot : 10% ; Credit : -25% ;
39  Market rally, Inflation 11 Vol : 0% ; Rates : 25%           3.51%
                               Spot : 10% ; Credit : -25% ;
40  Market rally, Inflation 12 Vol : 10% ; Rates : 25%          4.06%
    Worst                                                      -2.55%


B.     Private Equity Investments

The private  equity investment,  entered  into on  May 23,  2007  and
financed by a loan facility, is in the unlisted securities  resulting
from the public offer made by Apollo on Countrywide Plc, the  largest
network of UK  real estate  agents. BGHL  holds Castle  HoldCo 1  Ltd
shares and Castle HoldCo 2 Ltd debt securities.

The historical price  paid by  BGHL for the  unlisted securities  was
approximately £12m. The Investment Manager acquired its investment in
Castle HoldCo  for BGHL  from  certain other  funds it  manages.  The
purchase price paid by BGHL for the unlisted securities was equal  to
the cost to those other funds of acquiring those unlisted securities.

The Castle HoldCo  investment is  reviewed by  a valuation  committee
which meets quarterly and has an independent member appointed by  the
board of BGHL. The investment has  been marked down after the  August
quarterly review of the valuation committee.

The Company entered into a second small private equity investment  in
Rasaland on  June 27,  2008 for  $10m. This  investment is  currently
marked at cost.

Both investments represent 1% of its assets under management.


Boussard & Gavaudan Asset Management update

Transaction in the Company's securities
Please note that transactions in  the Company's securities that  have
been performed by officers, directors and persons referred to in  the
section 5:60 of the Financial Supervision Act ("Wft") are reported:
-         directly on the AFM website: www.afm.nl  (public database >
notification > insider-transactions 5:60 wft);
-         on  the  Company's  website  through  a  link  to  the  AFM
notification: www.bgholdingltd.com (Investment  Manager >  Regulatory
information).

Transactions in the Company's own securities are also reported on:
-          the   AFM   website:  www.afm.nl    (public   database   >
notification > price-sensitive press releases);
-          the  Company's  website:  www.bgholdingltd.com   (Investor
Relations > Financial announcements).

Béatrice  Cardona  (operations  team)  and  Céline  Epeirier   (asset
management team) have left us. We wish them luck for the future.

We are pleased to welcome  Olivier Nobile, Aurelio Rodriguez,  Julien
Hazan and Pierre Potier.

Olivier and Aurelio join BG as equity traders.
Olivier worked previously  at HSBC  before joining  CAI Cheuvreux  as
deputy head of risk arbitrage. In his last position at Calyon, he was
global head of risk arbitrage.
Aurelio Rodriguez worked  as a consultant  in risk management  before
joining  Calyon  in  2006  as   trader  on  the  equity   derivatives
proprietary trading desk.

Julien joins the asset management team.  He is a graduate from  Paris
Pantheon Sorbonne University and was an intern for 10 months at Dexia
Asset Management where he focused on alternative investments and long
short European equity hedge funds.

Pierre  joins  the  operations  team  after  completing  a  6  months
internship at BG. He is a graduate from Ecole Supérieure de Rouen.


Sincerely,

E. Boussard & E. Gavaudan

Contact information

Investors
Boussard & Gavaudan Asset Management, LP
Emmanuel Gavaudan
1 Dover Street
London W1S 4LA

Media
Financial Dynamics
Robert Bailhache / Nick Henderson
Holborn Gate
26 Southhampton Buildings
London WC2A 1PB


Disclaimer
This  newsletter  contains   forward-looking  statements,   including
statements relating to market conditions and environments,  estimated
performance  of  investment  strategies,  investment  activities  and
funding of  BGHL.  Such  forward-looking statements  involve  unknown
risk, uncertainties and  other factors,  which may  cause the  actual
results, financial condition, performance or achievement of BGHL,  or
market  conditions  or  investment   strategies,  to  be   materially
different  from  any  future  results,  performance  or  achievements
expressed or implied by  such forward-looking statements.  BGHL  does
not undertake an obligation to update its forward-looking  statements
to reflect future events.
This announcement is not  (i) an offer to  sell or a solicitation  of
any offer to buy  the ordinary shares of  BGHL (the "Securities")  or
any  other  securities  in  the   United  States  or  in  any   other
jurisdiction,  (ii)  any  invitation  or  inducement  to  engage   in
investment activity  or financial  promotion of  any kind,  or  (iii)
investment advice or a recommendation.
BGHL is established as an investment company domiciled in  Guernsey.
BGHL has received  the necessary approval  of the Guernsey  Financial
Services Commission and the States  of Guernsey Policy Council.  BGHL
is registered with the Dutch Authority for the Financial Markets as a
collective  investment  scheme  under  article  1:107  of  the  Dutch
Financial Markets Supervision Act.

You should always bear in mind that:

  * all investment is subject to risk;
  * results in the past are no guarantee of future results;
  * the investment performance of BGHL may go down as well as up.
    You may not get back all of your original investment; and
  * if you are in any doubt about the contents of this communication
    or if you consider making an investment decision, you are advised
    to seek expert financial advice.

BGHL has not been and will not be registered under the US  Investment
Company Act of 1940, as  amended (the "Investment Company Act").   In
addition, the Securities  have not  been and will  not be  registered
under the  US Securities  Act of  1933, as  amended (the  "Securities
Act").  Consequently,  the Securities  may not  be offered,  sold  or
otherwise transferred  within the  United States  or to,  or for  the
account or  benefit of,  US  persons except  in accordance  with  the
Securities Act  or an  exemption  therefrom and  under  circumstances
which will not require BGHL to register under the Investment  Company
Act.  Accordingly, US Persons acquiring the Securities are subject to
significant restrictions on  transfer.  In addition,  US persons  who
are not qualified purchasers (within  the meaning of section  3(c)(7)
of the Investment Company Act) will be prohibited from purchasing the
Securities at any time, including on the secondary market.  No public
offering of the  Securities has been  or will be  made in the  United
States.

This  communication  is  for   information  purposes  only  and   the
information contained in this communication should not be relied upon
as a substitute for financial or other professional advice.

* Estimated figures

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