Highbridge Multi-Strategy Fund has announced that, noting the reduction in the discount of the share price to NAV over the subsequent three months and also the recent stability of the discount at around 5%, the fund’s Board has canvassed the views of a number of larger Shareholders, a majority of whom have indicated that they do not favour a further Tender Offer in the short term (the fund has been offering quarterly tender offers). The board says that, in the current circumstances, it believes that continuing to repurchase shares will be more effective than a tender offer at balancing the interests of all Shareholders and that, as any market repurchases would be made at a discount to NAV, they would be accretive to Shareholder returns.
The board says that, given the low volatility of the Company’s NAV returns, it is keen to ensure that shareholder returns are not damaged by a volatile or widening discount to NAV at which the shares trade. Accordingly it says that it may implement the repurchase of Shares over the coming quarter, should it believe at that time that such repurchases are in the best interests of shareholders. The Board says that it is investigating a credit facility to assist with any repurchases and will make a further announcement should this be finalised.
Whilst the Board has determined not to implement a Tender Offer for the quarter ending 31 March 2017, it says that it will continue to consider each quarter whether or not to provide a Tender Offer and will make an announcement during the first quarter regarding any Tender Offer for 30 June 2017.
Narrowing discount sees Highbridge Multi-Strategy press pause on quarterly tenders : HMSF