imo hfa may struggle in the medium term, page-2

Hi AJ

IMO, not much going to happen locally in hedge funds space given all the points you raise. However, the US is another story...from what I hear flows are back running positive in the US and investors are returning to hedge funds...thus plenty of opportunity.

Unfortunately, HFA is not giving us transparency on the business peformance (i.e. FUM information) for Lighthouse, so we are in the dark as to whether they are benefiting from the US flows. IMO, this is why the sp has been heading south.

My gut feel is that HFA will produce a reasonable profit number for the half year and pay off more debt, even if FUM just stands still. Thus, may be waiting till February to get a decent update and information on which to make a fully informed decision.

Anyway, just my uneducated thoughts.

Cheers
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