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.

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!