Absolute Capital Not Into Withdrawals At The Moment


A second Outback hedge fund has become ensnared in the subprime mortgage blip. This time it’s Absolute Capital, which invests in collateralized debt obligations (last week it was Basis Capital). The Sydney-based fund, half owned by ABN Amro Holding NV's Australian unit, informed investors that it won’t be processing any requests for withdrawals until October 25. The suspended funds are the Yield Strategies Fund and Yield Strategies Fund NZD, which have a combined $177 million under management.
Chief Investment Officer Bill Entwistle said in an interview today, “There are lots of sellers and no buyers, the market has to settle down before we can get some clarity,” which sounds like James Cayne-speak for “We’ve got nothing, join us as we live this lie for a few months longer.” Expect subprime fallout opportunist Blackstone to offer its advice on the matter, for a price.
Second Australia hedge fund suspends withdrawals [Reuters]