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Absolute Capital Man (ACMH)

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Friday 03 March, 2006

Absolute Capital Man

First Day of Dealings

Absolute Capital Management
03 March 2006

               Absolute Capital Management - First Day of Dealings

Absolute Capital Management Holdings Limited ('ACM' or 'the Company'), a fund
management company focused on delivering investment returns through the
management of absolute return funds, is pleased to announce its flotation today
on AIM under the ticker symbol ACMH.

Group Overview

     • ACM is a fund manager seeking to exploit the rapid growth in demand for 
       absolute returns, from both institutional and private investors. As at 31
       December 2005, ACM had funds under management of approximately €700m.

     • The Company is also focused on ensuring that its business can accommodate
       organic growth, the acquisition of complementary funds and teams and the
       development of an integrated fund management business. Currently the
       Company, which is incorporated in the Cayman Islands, has two 
       wholly-owned subsidiaries, namely ACM (UK) and ACM (Spain). The Company's
       management team has a strong track record in building and managing 
       successful fund management businesses.

     • The Company was incorporated in August 2004 and its CEO is Sean Ewing, an
       experienced figure in the UK asset management industry. ACM currently
       manages a portfolio of six funds, which seek to generate absolute 

     • Absolute return strategies aim to achieve an absolute return on invested
       capital rather than to outperform a benchmark such as an index. ACM
       manages the Funds and is responsible for ensuring that the funds are
       managed in accordance with their stated investment policies and

     • ACM currently manages six funds:

|       Fund        |Launch   |Net Asset Value as at 31  |Growth in fund since |
|                   |Date     |December 2005 €m          |inception %          |
|Absolute           |         |                          |                     |
|Return Europe      |         |                          |                     |
|(ARE)              |March    |                   285.7  |               93.7  |
|                   |2002     |                          |                     |
|European           |         |                          |                     |
|Catalyst Fund      |         |                          |                     |
|(ECF)              |October  |                   174.5  |               66.3  |
|                   |2003     |                          |                     |
|Absolute           |         |                          |                     |
|Germany Fund       |         |                          |                     |
|(AGF)              |January  |                   138.3  |               51.8  |
|                   |2004     |                          |                     |
|Absolute           |         |                          |                     |
|East/West Fund     |         |                          |                     |
|(AGF)              |July 2005|                    34.4  |               10.4  |
|Absolute           |         |                          |                     |
|Octane Fund        |         |                          |                     |
|(AOF)              |July 2005|                    60.1  |               48.4  |
|Absolute Large Cap |February |                    N/A   |               N/A   |
|Fund (ALC)         |2006     |                          |                     |

     • At the end of 2005, the Directors of ACM estimate, the hedge fund
       'universe' which represents a broad array of managers and funds had an 
       asset base in excess of US$1 trillion compared with US$800 billion at the
       end of 2003, an increase of 25 percent. In addition, significant assets
       are held in privately managed accounts in the industry.

     • The proportion of assets under management invested in alternative
       holdings, such as hedge funds, was reported to be 1.6 percent in 2004
       according to an IMF report - a four fold increase on the 0.4 percent
       share in 2000. The Directors estimate this pattern of increasing flows
       into hedge funds will continue at least in the short to medium term.

     • This shift in investor profile has significant consequences for proven
       hedge fund managers. These new institutional investors are requiring the
       hedge funds in which they invest to have more robust business models and
       resources, including systems for corporate governance, business 
       management, structure, operational controls, client service and

     • This changing environment presents opportunities for absolute return
       investment managers who can offer the infrastructure and transparency 
       that both institutional investors and regulators require. Larger funds of
       hedge funds are seeking operational excellence, institutional
       infrastructure and institutional business management to fulfil more
       demanding due diligence requirements.

     • The Directors believe that investors are increasingly seeking investment
       management pursuing strategies across diverse sectors and asset classes 
       such as absolute return, long only, capital protected, private equity, 
       mezzanine finance and venture capital. The Directors believe significant
       growth opportunities are available to the Group in these sectors.


     • ACM's objective is to continue to develop its existing fund management
       business, to increase the size of the funds under management principally
       through organic growth and to launch new funds by building upon core
       competencies. ACM is currently planning to launch a new fund, with an
       Indian based investment manager acting as co-advisor, the Absolute India
       Fund Limited, which will focus on opportunities in India.

     • ACM's business strategy is to exploit the demand from investors seeking
       capable, robust and transparent single strategy managers that provide low

     • In addition to organic growth in funds under management, primarily
       through new fund launches, the Directors will look for acquisitions that
       they believe will expand and complement the existing fund management 
       team, enhance distribution and increase funds under management. The 
       Company intends to target high quality managers with proven track records
       and complementary investment styles who will be provided with
       infrastructure and support with the aim of enabling them to establish and
       grow new funds.

     • ACM intends to broaden its marketing reach geographically and deepen its
       marketing initiatives in existing territories.

The Funds

All of the funds managed are listed on the Irish Stock Exchange.

The investment approach combines the following:

     • The use of in-depth research in order to identify investment
     • Blending pair trading strategy, whereby a long position in one stock is
       taken at the same time as a short position of a similar stock, reducing 
     • Long positions are typically taken in asset-rich companies with strong
       cash flows that are likely candidates for corporate action and short
       positions in companies that are often capital intensive, over-geared, too
       complex and opaque, use liberal accounting and are, by definition, 
       marginal competitors in its industry
     • A system of tight stop losses and active use of derivatives to hedge
       market and sector exposures.

Absolute Return Europe (ARE)

The objectives of this fund are to achieve annual returns of between six
percent and 15 percent with moderate downside risk whilst seeking to preserve
capital in weak markets. The fund does not aim to be correlated to the European
equity hedge fund universe and seeks to control risk and volatility through
rigorous stop loss and monitoring mechanisms. The fund has grown consistently
from inception and was closed to new subscriptions in late 2004. The fund has
since reopened and it is envisaged that it will close permanently in the second
quarter of 2006.

European Catalyst Fund (ECF)

The objectives of the ECF fund are similar to those of ARE but it aims to
achieve more aggressive annual returns of between 15 percent and 25 percent
with a higher risk tolerance than that adopted by ARE. The fund seeks to control
risk and volatility through rigorous stop loss monitoring and mechanisms. The
fund is closed to new subscriptions.

Absolute Germany Fund (AGF)

AGF is focused on German equities and therefore has a limited capacity. In
addition, it operates a high risk/return strategy. Investment advice on German
equities is provided to ACM by FPM, a German investment specialist. FPM
typically identifies attractive long equity positions to which ACM provides a
short position balance. The fund is closed to new subscriptions.

Absolute East/West Fund (AEW)

The aim of AEW is to invest in developed and emerging European markets and to
exploit convergence opportunities created as resources are reallocated across
developed and developing regions in Europe.

Absolute Octane Fund (AOF)

The aim of AOF is to achieve absolute returns with a high-risk investment
strategy placing a special emphasis on investments in areas where there is
specialist sector knowledge or competitive verification.

Absolute Large Cap Fund (ALC)

The aim of ALC is to invest primarily in long and short positions in liquid
European equities and securities.

Sean Ewing, ACM's Chairman, said:

'Since inception, ACM has enjoyed tremendous growth and built up a strong track
record. I am confident that we can continue to achieve our objectives to grow
funds under management, while generating absolute returns for our clients. We
have invested in creating a scaleable platform with the ability to integrate
other fund managers and businesses and provide increasingly higher levels of
control, governance and liquidity to extend our reach into the institutional
investor market.'

Copies of the Company's Admission Document will be available from the offices of
Solomon Hare Corporate Finance, the Company's Nominated Advisor, at Oakfield
House, Oakfield Grove, Clifton, Bristol, BS8 2BN, for at least one month from



ACM            Sean Ewing, Chairman and CEO          T: +44 (0)7768255472
Cardew Group   Tim Robertson                         T: 020 7930 0777
               Shan Shan Willenbrock
               David Roach

This announcement does not constitute or form any part of an offer or invitation
to sell or issue, or any solicitation of an offer to purchase or subscribe for,
any shares in ACM, nor shall it or any part of it or the fact of its
distribution form the basis of, or be relied on in connection with, any
contract thereof.  The contents of this announcement have not been approved by
an authorised person and recipients of this announcement who intend to purchase
or subscribe for shares in ACM following its publication of an
admission document in final form are reminded that any such purchase or
subscription may only be made on the basis of the information contained in such
document which may be different from the information contained in this
announcement.  Accordingly, no reliance may be placed for any purpose whatsoever
on the information contained in this announcement or on its completeness.   No
representation or warranty, express or implied, is given by ACM, its directors,
Solomon Hare LLP, Smith & Williamson Corporate Finance Limited, Cardew Group or
any other professional adviser as to the accuracy or completeness of the
information and opinions contained in this announcement and no liability is
accepted for the same.


Directors and the senior management team

The Company's Board comprises two Executive Directors and four Non-Executive
Directors. Brief biographies of the Directors, Chief Investment Officer and Head
of Investor Relations are set out below:

• Sean Ewing (Chairman and Chief Executive, aged 40)

Sean Ewing was Chairman and Chief Executive of Farlake Group plc, an AIM quoted
asset management firm, building funds under management from £120 million to £600
million in four years, prior to its successful disposal for cash to Seymour
Pierce in April 2000. Sean Ewing also founded and launched the UK and European
fund supermarket Fundsdirect, which he sold to Egg and Prudential in 2002. In
addition to his primary role as Chairman, he is also currently undertaking the
role of Chief Executive Officer but the intention is to split these roles in due
course. He has an MBA from the University of Ulster.

• Darren Sisk (Finance Director, aged 40)

Darren Sisk holds a degree in Accountancy & Finance from Dublin City University,
Ireland. He is an associate member of both the Chartered Institute of Management
Accountants and the Association of Corporate Treasurers, and is currently
completing an MBA with Manchester Business School. He has accumulated
considerable international financial experience through different roles held
with companies based in the UK and Spain, principally the Toleman and Alpitour

• John Albert Fleming (Non-Executive Director, aged 72)

John Albert Fleming is a retired Managing Director of a Private Bank and Trust
Company subsidiary of one of the world's largest banks and has held senior
managerial posts in the banking world. He has and advised clients on the
formation of trusts, companies and other offshore operations including mutual
funds. He edited manuals on banking and trust company operations as well as
guidelines for compliance and the licensing of commercial institutions in the
Cayman Islands. He was the Interim Inspector of Financial Services for the
Government of the Cayman Islands and involved in the initial transition to the
Cayman Islands Monetary Authority and also assisted in the liquidation of bank

• Michael Kloter (Non-Executive Director, aged 38)

Michael Kloter holds a law degree from the University of Geneva, Switzerland,
and a lawyer's licence of the Canton of Zurich, Switzerland. After professional
experience as clerk at the District Court in Zurich and experience in a business
law practice in Zurich, Switzerland, he founded his own law firm in Zurich in
1995. Since then he has practiced as a business lawyer and acts as director of a
number of companies, including as non-executive director for Fortune Management
Inc, mobilezone holding ag and Hansa Chemie International AG.

• Ronald ('Ron') Evan Tompkins (Non-Executive Director, aged 70)

Ron Evan Tompkins is a former Managing Director of the Cayman Islands. After his
retirement from that post, he was engaged by the Cayman Islands Monetary
Authority to be Head of Investments Division (Mutual Funds) and was subsequently
appointed as a consultant on a full time basis to establish a new Fiduciary
Services Division. Following the successful completion of his contract, he left
the services of the Monetary Authority to pursue a career in private practice.
He has also served with the International Monetary Fund as an expert on
fiduciary services to review regulations in other offshore financial centres.

• Jonathan Treacher (Non-Executive Director, aged 46)

Jonathan Treacher has over 20 years of asset management and corporate finance
experience and has been actively involved in the development of a number of
growth companies in the sector. He was a non-executive director of Farlake Group
plc, and a founder and director of Romanian Reconstruction Capital, a country
specific fund. He has experience of public offerings and in particular the AIM
market. Jonathan has an MBA from the London Business School.

• Florian Homm, (Chief Investment Officer, aged 46)

Florian formed his first investment company at the age of 18. In 1983 he became
one of Merrill Lynch's youngest securities analysts. After graduating from the
Harvard Business School in 1987, he joined Fidelity as a Securities Analyst and
Portfolio Manager. Thereafter, he headed the Institutional Asset Management
Department of Bank Julius Baer (Deutschland) AG as Senior Vice President. In
1992 he became Managing Partner of Tweedy Browne Europe GmbH.

Florian founded Value Management & Research AG in late 1993, which he developed
into one of Germany's premier independent asset managers and private equity
groups with peak assets under management of $1.5 billion. The company was listed
on the Frankfurt Stock Exchange in 1998 achieving a market value of about $500
million in 2000. Florian has managed numerous mutual and hedge funds and has
received several investment awards. As Chief Investment Officer, Florian
monitors portfolios and co-ordinates investment research idea generation.

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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