Yes, Nicola Horlick, it probably was too good to be true.
We’re getting in first here, advertising the existence of an FT Money podcast from May 9 this year, where the Bramdean Asset Management boss sings the praises of one Bernie Madoff.
FT Money editor Matthew Vincent had taken tea with Nicola at the Wolseley in Piccadilly, where they talked about absolute return funds.
About eight minutes into the podcast, responding to Matthew’s observation that few money managers appeared to have the requisite track record for investors wanting stable, reliable, above-average income, Nicola observers:
This an example of a market maker in the States called Madoff. He is someone who is very very good at calling the US equity market…If he’s really negative then he puts cash into US treasuries…If he’s positive then he puts on a derivative trade..it’s actually called a collar, which limits the upside, but also the downside…
This guy has managed to return 1-1.2 per cent PER MONTH, year after year after year…
Inevitably, investors were invited to achieve exposure to this marvel through the listed Bramdean Alternatives fund, which on Friday announced:
Bramdean Alternatives Limited (the “Company”) has two holdings that maintain trading accounts with Bernard L. Madoff Investment Securities LLC (”Madoff”), Defender Ltd. and Rye Select Broad Market XL Portfolio Ltd., representing approximately 9.5% of the Company’s net asset value as at 31 October 2008.
The Company has received a letter from Defender Ltd. informing the Company that Bernard Madoff has been arrested by agents of the Federal Bureau of Investigation on charges of alleged securities fraud.
The Company is monitoring the situation closely to ascertain any impact on these two holdings. At the current time the financial status of the holdings in Madoff-managed vehicles is uncertain.
Related links:
Madoff faces securities fraud charge - FT
He Madoff with how much??? - FT Alphaville
