RISKY as a Hedge Fund Management Group.

Heres what it does..

Absolute Capital Management Holdings Limited is a specialist fund management
company focused on delivering investment returns through the management of
absolute return funds in equities and fixed income products, since inception in
2004. The enlarged company now has offices in, the Cayman Islands, Switzerland,
the United Kingdom, Singapore, Spain, Cyprus, Poland, Brazil and Argentina Post
completion the group will manage 12 funds and have in excess of US$3.25 billion
under management. ACMH listed on AIM on 3rd March 2006.


Investment track record for the 11 funds managed by ACMH

ACM Funds AUM US$ million Annualised Performance Down Months Launch date
Absolute
Return Europe
Fund 490 15.82 2 out of 63 March 2002
Absolute
European
Catalyst Fund 273 20.29 4 out of 44 October 2003
Absolute
Germany Fund 381 22.00 2 out of 41 January 2004
Absolute East
West Fund 222 23.78 1 out of 23 July 2005
Absolute
Octane Fund 342 39.49 1 out of 23 July 2005
Absolute
Large 137 20.96 1 out of 16 February 2006
Cap Fund
Absolute
India 18 17.50 0 out of 11 July 2006
Fund
Absolute
Activist
Value 241 31.66 0 out of 11 July 2006
Fund
Argo Fund 484 17.77 3 out of 80 October 2000
Argo Global
Special
Situations
Fund 455 15.64 3 out of 34 August 2004
Argo Capital
Partners Fund 73 N/A


Note: Performance to 31 May 2007 and AUM as at 1July 2007

Recent Trading Performance

Absolute Capital Mgmt Holdings Ltd
09 July 2007


Absolute Capital Management Holdings Limited

('ACMH')


Trading Update



ACMH (AIM: ACMH), the fund management company focused on delivering investment
returns through the management of absolute return funds, today announces a
trading update for the six months ended 30 June 2007. ACMH will announce its
interim results on 26 July 2007.


The board is pleased to announce that the strong financial performance achieved
through 2006 has continued into 2007. For the six months ended 30 June 2007, the
board expects trading to be ahead of expectations and that turnover will be not
less than 58.0 million and profit after tax will be circa 30 million


As at 30 June 2007, assets under management stood at $3.1 billion.


The successful integration of Argo Capital Management, acquired in January 2007
added significant product diversification and revenue from debt/finance
opportunities in emerging markets. Today, we have also announced the creation of
a new division, Absolute Capital Management Property Limited ('ACMPL') in order to
develop our long/short equity presence in the global real estate market.


Sean Ewing, Chairman and Chief Executive Officer, said: 'We have increased
assets under management by almost 100% during the first six months of 2007
through significant organic growth and the successful integration of Argo .
Demand from institutional investors for our expanding portfolio of alternative
investment products remains strong and we believe the creation of ACMPL is
well-timed to take advantage of the long/short opportunities in the current
global real estate market. As we continue to execute our business strategy we
are well positioned to exploit the significant and growing demand from global
investors for consistent, low volatile absolute returns.'

Fundies

Forecasts

To 31/Dec 2007 EPS 57.9p P/E 9.1 PEG 0.1 EPS growth 65% Yield 7.1%

To 31/Dec 2008 EPS 71.4p P/E 7.4 PEG 0.3 EPS growth 23% Yield 8.4%

TA



Not for the faint hearted please DYOR.

Interesting research on the company....

12.07.2007 - Still Absolutely Fabulous.

Remember this extract from News Archive 24.08.06 less than 12 months ago ? By any yardstick, ACMH should be changing hands at over 400p and we fully expect the share to be closer to that level by the time the full year results are declared next Spring. This is a company for all weathers and at around 200p Absolute represents a steal.

Each week we try and highlight some of the best growth companies in the market that are clearly undervalued against their peers. These anomalies usually occur because they are under-researched and still well below the radar of most larger funds. Of course, it is impossible for most private investors to buy all of them but ABSOLUTE CAPITAL MANAGEMENT should feature very highly on your shopping list simply because it remains very substantially undervalued in terms of further growth potential versus downside risk.

Voted the European Hedge Fund Group of the Year in 2006, ACMH has just about everything smart investors look for in a company. Its founder, Sean Ewing, has already built up and sold 2 financial groups, Farlake and Fundsdirect, and is a proven moneymaker. Over a third of the shares are held by group directors and employees so there is every incentive to keep building the company and not to jump ship to hungry rivals. Next, its highly paid staff and expensive offices are the only real overhead so cashflow just keeps piling up ( enabling a tasty 30 p a share special dividend in April ). Finally, owning the shares appears to be even more rewarding than investing directly in their top performing hedge funds which are only accessible to large institutions and the mega-rich.

Forget the fact that the stock has already surged over 170 % to 545 p since August. One of the companys older rivals, MAN Group, has multiplied elevenfold from 7 to 77 over the last 5 years. Its not difficult to identify why these top hedge fund management groups maintain such heady growth. They make their money from management and performance fees from total assets under management ( AUM ) and are pretty well given carte blanche to invest in anything, anywhere to achieve the best absolute annual return.

Since they are free to use all sorts of fancy financial instruments and derivatives, they can perform just as well in falling markets. If we assume that they grow their AUM by 15 % p.a. not an unusual event at ACMH who run about a dozen separate funds. Consistent performance like this attracts new investors so that this 15 % is topped up by say another 15 % in new funds. Therefore, AUM and the fees charged on them grow in our rough example by a total of 30 % p.a.

As a top flight hedge fund manager can just as easily look after 130 million as 100 million, staff numbers and overheads rise at a slower rate than fee income with the result that profits growth comes in even higher than 30 %. In ACMH s case, earnings per share are on course to soar at least another 65 % in 2007 even after last years 158 % growth rate. This will bring the price earnings ratio back into single figures while early but conservative forecasts for next year suggest e.p.s of over 70 p for a p.e.r of only 7.8 about half that of the groups larger peers. Small wonder that one of the few brokers who follow the stock have an initial price target of 700 p. The fact is that the shareprice simply cant keep up with events. We can easily see this one doubling again over the next 18 months with some very juicy dividend growth to enjoy in the meantime. The historic yield is 3.6 % but likely to be 7 % ( sic ) on this years payout.

Off to a positive start this morning.

When' the divi's paid GF ?

Info I have got so far..

Dividend

On 11 December 2006 ACMH announced its intention to return up to 20 million to
shareholders after the audit of its 2006 results. Given the strong performance
in 2006 and the cash-generative nature of the business, it has been decided to
increase this amount to 29.9 million. We are therefore pleased to announce the
payment of a dividend 0.447 (30.4p) per share, comprising an ordinary dividend
for 2006 of 0.165 (11.22p) plus a special dividend of 0.282 (19.18p) per
share. The dividend will be paid in sterling and the payment date for this
dividend has been set as Thursday 5 April 2007 for shareholders recorded on the
register as at close of business on Friday 23 March 2007.

It remains our intention to review our cash reserves and to raise the level of
dividend payouts in line with growth in underlying earnings.ENDS.

Dil give them a ring.

Not really interested myself in divis just capital appreciation.

Looks like its on another leg up.

Yeah , good job I bought a few early on :-)

Recent trading update.....

Absolute Capital Mgmt Holdings Ltd
09 July 2007






Absolute Capital Management Holdings Limited

('ACMH')


Trading Update



ACMH (AIM: ACMH), the fund management company focused on delivering investment
returns through the management of absolute return funds, today announces a
trading update for the six months ended 30 June 2007. ACMH will announce its
interim results on 26 July 2007.


The board is pleased to announce that the strong financial performance achieved
through 2006 has continued into 2007. For the six months ended 30 June 2007, the
board expects trading to be ahead of expectations and that turnover will be not
less than 58.0 million and profit after tax will be circa 30 million


As at 30 June 2007, assets under management stood at $3.1 billion.


The successful integration of Argo Capital Management, acquired in January 2007
added significant product diversification and revenue from debt/finance
opportunities in emerging markets. Today, we have also announced the creation of
a new division, Absolute Capital Management Property Limited ('ACMPL') in order to
develop our long/short equity presence in the global real estate market.


Sean Ewing, Chairman and Chief Executive Officer, said: 'We have increased
assets under management by almost 100% during the first six months of 2007
through significant organic growth and the successful integration of Argo .
Demand from institutional investors for our expanding portfolio of alternative
investment products remains strong and we believe the creation of ACMPL is
well-timed to take advantage of the long/short opportunities in the current
global real estate market. As we continue to execute our business strategy we
are well positioned to exploit the significant and growing demand from global
investors for consistent, low volatile absolute returns.'


Enquiries:


Absolute Capital Management Holdings Limited
Sean Ewing, Chairman and CEO T: +34 971 406018


Panmure Gordon
Dominic Morley T: +44 (0)20 7614 8388


Cardew Group
Tim Robertson T: +44 (0)20 7930 0777
Shan Shan Willenbrock
David Roach

Recent tip.....




http://news.independent.co.uk/business/comment/article2750529.ece

Absolute Capital Management

Our view: Buy

Current price: 529p

Until recently hedge funds shied away from listing on the public markets; if your reputation is built on secrecy, opaqueness and servicing only the super-rich, it paid to stay away from prying eyes.

But Absolute Capital Management has been public for a while and its share price is up nearly 300 per cent since listing in March last year. At the very least, yesterday's trading update justified the surge in its share price. The company now has more than $3.1bn of assets under management, more than double the amount it was managing just six months ago.

It runs its suite of 12 funds on a absolute returns basis - meaning that its funds are not benchmarked against any index. Absolute returns mean that the manager seeks to make a positive real-term return regardless of the volatility in debt or equity markets.

The company also confirmed the creation of a new division, Absolute Capital Property, and the acquisition of 100m of new assets for 12.5m, previously run by another AIM-listed fund manager, North Asset Management. The deal, although relatively minor in terms of numbers, should give ACM a decent foot in the door to the lucrative real-estate hedge fund arena.

Importantly, ACM's staff owns 34 per cent of the stock.

In spite of its strong recent rally, investors in favour of the bigger names in the industry have largely overlooked ACM. But continue to ignore ACM at your peril - the shares trade on a significant discount to their peers and, according to house broker Panmure Gordon, a 700p share price implies just 10.4 times forecast 2007 earnings. Buy.

Also a main tip in January's Quantum Leap GF.

Yep Jimmy it just gets better heres a broker note from 11/07/2007

http://www.equitydevelopment.co.uk/downloader/432

Flying of the shelves like hot cakes.

Web site for the company.

http://www.abcapman.com/home.asp

This is going to a tenner post results , owe you one GF cheers mate.

Friday's tip update from 'The Share Weekly'...

Absolute Capital increased funds managed eightfold in less than three years
Fri 13/07/07

Recommended in the 9 February issue of TSW at 441p, shares in Absolute Capital Management Holdings (ACMH) have jumped strongly on news of an acquisition and a positive trading update for the six months to 30 June 2007. The business is storming ahead with funds under management reaching $3.1bn as at the end of June, up 100 per cent in six months.If we allow for the acquisition, funds under management are presently $3.25bn against $394m at the end of December 2004. All the signs are that this blistering growth can continue fuelling strong growth in profits and enabling the highly cash-generative group to pursue a generous dividend policy.The shares are a good bet for income as well as capital growth. In 2006 the group paid a dividend of 11.2p. This was the ordinary dividend paid by the group. In addition it paid a special dividend of 19.18p so shareholders received a total of 30.4p. The plan is to grow dividends in line with the growth in earnings.

12 funds, all doing well

There are a number of features that make ACMH an exciting business. The funds, of which there are now 12, are designed to deliver positive returns in all market conditions (hence the name of the group with its emphasis on absolute rather than relative returns). Performance has been consistently excellent. In the first half, out of 346 total performance months across all the funds, there have been only 17 down months. The funds all rank highly against peers, typically first, second, third or fourth against as many as 63 rivals.Tight control of costs means that the strong growth in assets under management translates into equally strong growth in profits. In 2006 revenues, costs and operating profits all rose by around 72 per cent. If the group was not expanding its operating base so strongly profits growth would be even faster and cash generation even more dramatic.

Moneymaking machine in full flow

The hedge fund business is a great machine for turning investment expertise into profits. The group earns management fees (based on assets under management) that in 2006 covered 76.4 per cent of operating costs. The bonanza comes from performance fees levied at 20 per cent of annual returns on the funds. In 2006 pre-tax profits of 27.6m euros were close to the performance fees earned of 29.3m euros.Last but not least is the broadening base of the group that now has equity, bond, property and special situation, activist funds. The result is that ACMH has a talented and growing pool of individuals able to make money across the globe from a wide range of financial instruments. This is a highly scalable cash generative business that could become huge.

Nice one CB.

Absolute Capital Mgmt Holdings Ltd
16 July 2007


Absolute Capital Managements Holdings Limited
('ACMH')

Change of Interim Results Date

ACMH has changed the date announcing its interim results for the period ended 30
June 2007 to Wednesday 25 July 2007.

The change of date has been brought forward from Thursday 26 July 2007 in order
to avoid making the results announcement at the same time as a number of other
quoted financial services companies.

Enquiries:

ACMH Sean Ewing, Chairman and CEO T: +44 (0)7768 255 472

Cardew Group Tim Robertson T: +44 (0)20 7930 0777
Shan Shan Willenbrock
David Roach




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

A small tick up this morning in a very quiet market place.

North Real Estate says Suceava Shopping City leasing ahead of schedule
AFX


LONDON (Thomson Financial) - North Real Estate Opportunities Fund Ltd said leasing at the Suceava Shopping City in Suceava Romania is substantially ahead of schedule, with the joint venture development having leased about 60 pct of space in the Shopping Mall segment.

The Guernsey based closed-ended investment company said the joint venture development has fully leased all of its anchor tenant units, and added that the construction is progressing on schedule for its opening in April 2008.

Based upon leases signed to date, the scheme, when fully let, is estimated to generate a net rental yield of 8.5 pct to it, the company said.

The company also said leases have been agreed to extend the European Retail Park Sibiu with Austrian and German sporting goods and fashion retailers.

The development of the extension will generate a yield on cost over 15 pct and is scheduled to be completed by the first quarter of 2008, the company said.

TFN.newsdesk@thomson.com

bsu/slm

HIGHLIGHTS


Financial

Assets under management including acquisitions now $3.25bn, up 165% since
30 June 2006, and 110% since 1 January 2007
Management and performance fees up by 139% and 148%, respectively
(compared to 6 months to 30 June 2006)
Industry leading operating profit margin of 58% (before share-based
payments)
Revenue up 149% to 61.7 million (2006: 24.8 million)
Pre-tax profit up 215% to 36.0 million (2006: 11.4 million)
Substantial progress in building a market leading portfolio of absolute
return funds: ten of our 12 funds are now in excess of $100 million
Basic EPS* up 117% to 0.50 (compared to 6 months to 30 June 2006)
Proposed interim dividend of 0.133

* Excluding non-cash items


Operational

Successful integration of Argo Capital Management, acquired in January
2007, adding significant product diversification and revenue from debt/
finance opportunities in emerging markets
Creation of a new division, Absolute Capital Management Property Limited
('ACMPL') in order to develop a long/short equity presence in the global
real estate market, through managing the AIM listed North Real Estate
Opportunities Fund
Development of in-house client services team in Europe and North America
to distribute the growing range of absolute return funds
To manage the increased size and continued growth of the business, we
have appointed a Chief Operating Officer and separated the role of Chairman
and Chief Executive
Strong investment performance during first half of 2007: event-driven and
long/short funds averaged in excess of 18% annualised net return in H1 2007;
the Argo emerging market debt, the Argo funds averaged 14% annualised net
return in H1 2007
Three recent award nominations: AIM Company of the year 2007 (AIM);
Alternative Investment News Leader of the Year (Alternative Investment
News); and again nominated as HFR's European Hedge Fund Group of the Year
Significant institutional share placing to leading institutional
investors, increasing the free float to over 40%


On the face of it, these seem to be a fairly outstanding set of results. Yet another RNS released with an error in it though, spot the difference!:-

Sean Ewing, Chairman and Chief Executive Officer, said: 'We have increased
assets under management by 165% since 30 June 2006. Organic growth continues to
be strong, with demand from institutional investors for our expanding portfolio
of alternative investment products. We believe that the creation of ACMPL is
well timed to take advantage of long/short opportunities in the current global
real estate market.'



Outlook

We are broadly positive as regards the outlook for the rest of year. Our assets
under management have increased by 165% since June 2007. Our organic growth is
materially ahead of both our peer group and the market in general. Assuming that
fund performance remains in line with target returns, the Board believe that the
business is well positioned and structured to make further significant progress.


Sean Ewing
Chairman and Chief Executive Officer
25 July 2007

165% since June 2006, 165% since June 2007??? Oh well, you just can't get the staff these days. Of course, the quote may be correct, now wouldn't that be brilliant?!!

Good results and we are in the blue, on a rotten day alround.

I can see broker upgrades now.

Yep not a lot wrong with these results.

Re rating on the cards and convinced we'll see a tenner this year.

Cheers again gf.

Panmure reiterate buy and raise target to 750 from 700.

Sharecast coverage:

Hedge fund manager Absolute Capital comfortably beat forecasts it made just two weeks ago as management and performance fees soared in the past six months.

Pre-tax profit jumped by 215% to 36m, from 11.4m in the half-year to June, while revenues climbed 149% to 61.7m from 24.8m. Earlier this month, Absolute had forecast interim profits would be not less than 30m.

Assets under management including acquisitions now total $3.25bn up by 110% over the past six months. Management and performance fees rose by 139% and 148%, respectively, over the same period in 2006, Absolute said.

Event-driven and long/short funds averaged in excess of 18% annualised net return in the first half, the fund manager added, while the Argo emerging market debt funds averaged 14% .

"Organic growth continues to be strong, with demand from institutional investors for our expanding portfolio of alternative investment products," chief executive Sean Ewing said.

The interim dividend proposed is 0.133.

An Absolute winner GF?! I think so, a lot of upside potential here.

KO Loads.

Dill could be right about his tenner.

That would be nice! I dumped some GSK this am at 12.475, expecting results to be nowhere near as good as they are, to fund a T+10 on ACMH so initially I'm pi**ed off. BUT this time next week it could be all :o)

No, let's be positive it WILL be all :o)

Come sept/oct i think this one will blaze away.

Good to see that they have already corrected the date error in the original RNS, pity it was there in the first place but to err is human etc.! I had been watching this share for far too long, not being 100% happy with investing in Hedge funds, a little late getting in but still confident that I'll do well with these.

More on the broker note...

Absolute Capital Management "buy," target price raised

Wednesday, July 25, 2007 6:23:08 AM ET
Panmure Gordon & Co

LONDON, July 25 (newratings.com) - Analyst Sandy Chen of Panmure Gordon maintains his "buy" rating on Absolute Capital Management (ticker: A9B), while raising his estimates for the company. The target price has been raised from 700p to 750p.

In a research note published this morning, the analyst mentions that the company has posted its 1H PBT ahead of the estimates, boosted by an improvement in operating efficiency. Absolute Capital Management has also made changes, which would reinforce and provide support to its board and management structures, the analyst says. The EPS estimates for 2007 and 2008 have been raised from 55.6p to 62.0p and from 67.6p to 72.3p, respectively.

Another Broker note out, SP target 850p, getting nearer Dills 10 quid by the hour...

http://www.equitydevelopment.co.uk/downloader/436

On a good day the SP would be up. This is not what I would call a good day!

Too right, but then again being a contrarian a few of mine are up.

From online worldwidebb 26/07/2007.................

You need to take another look at ABSOLUTE CAPITAL MANAGEMENT whom we featured just 2 weeks ago ( News Archive ). We were all expecting spectacular interim figures from this award winning hedge fund management group but no-one expected the company to virtually blow next years profit target out of the water 12 months in advance !

Like Fletcher King, ACMH is largely immune to actual movements in the markets it serves. The whole point of the sort of hedge funds that the company runs is that they grow in value in falling as well as rising equity markets. The only way for small investors to profit from this nimble footwork and agile use of intricate derivatives is to hold shares in a company like ACMH which derives management fees in line with the growth in assets managed.

The company now has a dozen funds under management so even if one starts to underperform, the rest should keep this express train well and truly on the rails. The interim figures released a few days ago showed that Assets Under Management ( AUM ) now stand at 1.6 bn, up 165% since 30th June 2006. Management fees charged to these funds less overheads produced pretax profits up 215 % to 24 million even though a portion of this came from acquisitions. The bottom line is that, at the half way stage, earnings per share soared 117 % to 34 p suggesting a full year outcome of over 70 p which is, as we said , what many were pencilling in for 2008 . The interim dividend is 9p per share.

The shareprice might be up to 570 p compared with our original entry price of 200 p last August and 545 p just a fortnight ago but, as we said then, this is a case of the shares struggling to keep up with fundamentals. A 70 p e.p.s.full year outcome would still only leave the stock selling on 8 times earnings way below the multiple enjoyed by slower growing peers - while a total dividend payout of 38 p would provide a yield of 6. 7 %. Growth or income ? Who says you cant have your cake and eat it ?

Nice GF, a shame I didn't buy in August last year!!

A very strange day. Does the left hand know what the right is doing???? Is this a good buy or a goodbye?

Have not yet worked out the real problem here, at the present there does not seem to be anything specific, seems perhaps to be a victim of conjecture. Buy if you have the balls, they will have to be made of steel, there must be a serious problem. Don't buy if you have the balls, they will have to be made of steel, there is absolutely no problem.

Take your pick!!!!!!!!!

Thank fcuk I use stop losses and got out a while ago. Think he may be suggesting that if it weren't for his "donations" then funds would have a poor record of late.

Best let the dust settle imo there maybe other disgruntled managers about to jump ship.

Funds Update


Following the recent resignations of former Chairman and Chief Executive Officer
Sean Ewing and Co-Chief Investment Officer Florian Homm, the Board of ACMH has
begun a review of the equity fund business and in particular the portfolios of
the investment funds previously under Florian Homm's immediate control. The
preliminary results of this review indicate that seven of the eight Absolute
Capital equity funds contain quoted investments which the Board believes are not
immediately realisable at their stated values due to their illiquid nature. All
such equity investments are carried at market price as reported through the
US-based Over the Counter Bulletin Board / Pink Sheets and have been marked to
market in accordance with industry practice. However, as liquidity adjustments
are not contained in the funds' valuation methodologies, current net asset
values do not reflect the immediately realisable value of such investments.
Subsequent to Florian Homm's resignation, the Company has received in excess of
$100 million in redemption notices, which, combined with the illiquid positions
described above, will force the suspension of the calculation of the funds' net
asset values and investors' ability to redeem fund shares in the normal course.


The Board estimates that approximately $440 million to $530 million of the
equity funds' assets are affected in this way. The bulk of these investments are
in the funds previously managed directly by Florian Homm. However, a smaller
amount is present in the Company's other equity funds as a result of Florian
Homm's ability to effect trades on all of the Company's equity funds.


It is believed that the following funds hold illiquid positions in the following
amounts:

Assets Under Management 31st August Illiquid Positions
2007, $m % of assets
EQUITY
Absolute Return Europe 490 35-40%
Absolute European 273 25-30%
Catalyst
Absolute Germany 381 1-5%
Absolute East West 222 15-20%
Absolute Octane 342 40-45%
Absolute Large Cap 137 0%
Absolute Activist Value 241 10-15%
Absolute India 18 1-5%
Sub total Equity $2,104



As a result of the foregoing, the Board is intending to implement, subject to
investor approval, a restructuring of the equity funds to create a 'side pocket'
share class structure. The illiquid positions would be transferred into separate
portfolios to which newly issued side pocket shares will relate. Following the
restructuring, fund investors will hold two classes of shares in each of the
funds, the first tracking the funds' liquid portfolio and the other the illiquid
portfolio. The funds' liquid portfolios would continue to be traded in the
normal course using current NAV calculation methodology, whilst the illiquid
portfolio would be re-priced following extensive due diligence with the
assistance of independent outside advisors. The funds' illiquid portfolios would
be managed with a view to orderly realisation. As part of this proposed
restructuring, the equity funds would seek a 12 month lock-in from all
investors. The effect of this action will be to close the affected funds to
redemptions for the period, thereby ensuring that all investors in the funds are
treated equally. The management fee will remain in place and some adjustment to
the performance fee structure will be proposed. The Company is confident that
the orderly liquidation of the illiquid positions in the foregoing manner will
maximise realisation to fund investors. The Company has held discussions with
large fund investors, who have indicated their preliminary support for the
proposal.


The Company believes that the proposed restructuring of the equity funds and the
imposition of the lock in period will provide stability to its equity fund
business and additional flexibility to create value for all stakeholders.


The Board of ACMH wishes to emphasise that a large part of the company's assets
under management comprising its fixed income and real estate business, which are
managed independently and have approximately $1 billion and $130 million
respectively under management, are not affected by these matters.


The Company has received notification from the vendors of the Argo Group
(acquired in February, 2007), that as a result of the above events, they
consider that the Company has breached certain representations and warranties
given pursuant to the purchase agreements. Under those agreements, the Argo
vendors had reserved the right to veto increases above 20% to the Company's
employee bonus pool. Florian Homm's resignation letter alludes to disagreement
with the Board over the size of the Company's bonus pool. The arrangement that
resulted in these veto rights for the Argo vendors was borne of the insistence
by Florian Homm and others that the Company's bonus pool should remain at 20%,
which resulted in the Company's then shareholders retaining a bigger part of the
enlarged group. It is disingenuous that Mr. Homm has sought to portray himself
as the employees' champion. For the avoidance of doubt, the Company's
remuneration committee approved the payment of bonuses in the amounts
recommended by Florian Homm. The Argo vendors and the Company have undertaken to
negotiate in good faith the resolution of the above issues.


The Board intends to appoint senior investment professionals to head the
Absolute Octane Master Fund, the Absolute Activist Master Fund and the Absolute
European Catalyst Fund, as well as appointing a new Co-Chief Investment Officer
in due course.


Jonathan Treacher, Chief Executive Officer of ACMH, said, 'At this stage the
Board is focused on exploring all options which will assist in maximising value
for investors in the both the funds and in ACMH. It is also focused on ensuring
that recent events do not overshadow the fact that the majority of the business
is unaffected and our investment professionals will continue to trade as
normal.'


Further announcements will be made as appropriate


Hmm, some soothing words from Mr Jonathan Treacher at the end there. The company is steady as a Rock then?!

anyone know what the postmortem result is?

Overdose of pink sheets!

Market seems to like the CIO Rialas buy of shares from Homm.

Powering upwards.

24 October 2007

"The Company announces that it has sent each investor in the Absolute Return
Europe Fund Limited, Absolute European Catalyst Fund Limited, Absolute Octane
Fund Limited and Absolute East West Fund Limited an urgent letter requesting
them to complete and return their proxy forms in order to vote in favour of the
restructuring proposals at the extraordinary general meetings of these funds to
be held on 27 October 2007."

26 October 2007

"Absolute Capital has today been notified that Susan E. Devine Homm no longer has
a notifiable interest in the issued share capital of the Company."

For those still interested in ACMH, the latest news is :-

27 October 2007

Investors voted through the restructuring proposals at the meeting.

28 October 2007

The leading lawyer representing Absolute shareholders said today that they would be demanding a thorough explanation of why as much as $500m (244m) of Mr Homms investments had turned out to be in lightly regulated and illiquid American stocks, listed only on bulletin boards and traded over the counter. He said that investors had been unaware of the nature of the funds holdings.

William Rodger, the financial litigation partner at Simmons & Simmons, which has been working for the Absolute Investors Action Group, said that the agreed restructuring was not the end of the matter for shareholders.Mr Rodger declined to be drawn on the Action Groups next move before discussions with investors that are expected to take place this week, but he ruled out the need for a criminal investigation.

Mr Rodger said that investors had voted in favour of the proposals because of concessions made by Absolute last week. Investors had been particularly concerned about the level of performance fees for Absolutes managers, who could have reaped a substantial windfall if the fund rebounded in value once the restructuring had been approved. Absolutes share price, which slumped 70 per cent in the days after Mr Homms exit, is expected to gain ground this week.

Could be life in the old dog yet!