A second Australian hedge fund has become caught up in the subprime mortgage fallout, with Absolute Capital telling investors it has suspended withdrawals from two funds until October due to a lack of liquidity in structured credit markets. Sydney-based Absolute Capital, which specialises in structured credit assets and is half-owned by ABN Amor Australia, said the two funds are Absolute Capital Yield Strategies Fund and the Absolute Capital Strategies Fund NZD, and are worth A$200m ($177m) combined. The suspension follows a decision by Australian hedge fund Basis Capital to suspend redemptions on two of its funds and appoint US-based Blackstone Group as financial adviser to help prevent a fire sale of its assets.

This entry was posted by Gwen Robinson on Thursday, July 26th, 2007 at 5:31 and is filed under Capital markets, Hedge funds. Tagged with absolute capital, Basis, blackstone. Edit this entry.