Welcome to Bramdean Asset Management LLP (BAM)
BAM’s registered office is 42 Bruton Place, London, W1J 6PA. BAM is regulated by the Financial Conduct Authority. To contact BAM, please use the details above.
Madoff Investment - The Facts
In 2008, Bramdean Alternatives Limited (BAL) was listed on the London Stock Exchange. It was a Guernsey-domiciled investment company, which was totally independent of BAM with a separate board chaired by Brian Larcombe (formerly of 3i). BAM’s Supervisory Committee was chaired by Sir Derek Higgs. The board of BAL appointed two fund managers to take responsibility for the company’s investments. BAM was appointed to manage the private equity, venture and specialty funds and RMF (which was part of Man Group) was appointed to manage the hedge fund portfolio. A third fund manager, Integrated Asset Management, was appointed to manage part of the hedge fund portfolio.
BAL had monies invested in two Madoff funds when the scandal broke in late 2008, which were held in the hedge fund portfolio, which was not managed by BAM. To be prudent, BAL took the decision to write-off both investments, which resulted in a 9.5% reduction in the net asset value of the fund. One of these funds was leveraged and the other was not. As a result, BAL (which is now known as the Aberdeen Private Equity Fund) has recovered some of the money that was written off at the time of the scandal.
Despite the write off of 9.5% of the value of BAL’s investments at the end of 2008, BAL’s net asset value actually rose by 0.5% during 2008. This was mainly due to excellent performance from RMF, who had invested in funds such as Paulson, which performed particularly well. During 2008, global equity markets fell by 40% and so this performance was truly exceptional. BAL was the second best performing investment trust in terms of NAV performance during 2008 in the UK.
It has been widely reported in the UK press that BAM was responsible for the Madoff investments. This was not the case. This reporting is inaccurate. The impression has also been given that BAL performed disastrously as a result of the Madoff losses. This is not the case. BAL was the second best-performing investment trust in the UK during 2008, when its net asset value rose by 0.5% against a decline in global equity markets of 40%.