United Capital will not wind down hedge funds

4 July 2007

United Capital has announced it will not cease operations at its Horizon Strategy group hedge funds, after calling a temporary halt to payments earlier this week.

Yesterday it emerged that the firm has stopped payments from four funds, namely Horizon Fund L.P., Horizon ABS Fund L.P., Horizon ABX Fund Ltd and Horizon ABS Master Fund Ltd.

However, today United has moved to deny that the funds, which hold the lion's share of the firm's assets under management and have heavily invested in sub-prime mortgage bonds, are to be to wound down.

A statement from the firm said: "We wish to emphasize that UCAM (United Capital Asset Management) and Horizon are not liquidating and intend to continue in operation."

United took the decision to suspend payments "to protect the interests of our investors", noting that it received an abnormally high amount of redemption requests from its clients in the last ten days, according to a report from Bloomberg.

One client in particular had sought to withdraw about a quarter of the funds' capital.

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