BHUE : BlackRock Hedge Selector considering its future
BlackRock Hedge Selector has released a statement this morning that says “Given the current market capitalisation of the Company and prevailing share price discount, the Board of BlackRock Hedge Selector Ltd announce that they will be undertaking a shareholder consultation in relation to the current investment objective and policy of the Company’s existing share class.”
The announcement follows a period of disappointing performance by the fund – over the six months ended 30 June 2014 its net asset value fell by 7.7% while most small cap. indies were flat. The statement attributed this to “a combination of
exceptional market conditions over the period under review” that meant that “on balance, the quality companies in the portfolio fell, underperforming lower quality “value” stocks” and this “combined with a sharp reversal in share price momentum.”
History suggests that a statement like this is usually followed by some form of restructuring, merger or liquidation of the fund. However the interim statement also mentioned “continuing demand for the company’s shares”.