Factsheet July 2008

RNS Number : 8705B
Bramdean Alternatives Limited
22 August 2008

RNS Announcement

22 August 2008

Factsheet July 2008

Bramdean Alternatives Limited

This Factsheet contains commentary and news for the calendar month ending 31st July 2008, unless otherwise stated.

July Estimated Net Asset Values

Sterling shares: 99.42 pence

U.S. Dollar shares: US$ 0.9836

Overview
Bramdean Alternatives Limited, (the "Company") is a Guernsey-based Investment Company listed on the London Stock Exchange. The Company
invests in a diversified portfolio of private equity funds, hedge funds and other specialty funds.

KEY FACTS

Market Capitalisation �110.4 million

Manager Bramdean Asset Management LLP

Annual Management Fee 1.5%

Performance fee 10% subject to an 8% return and a high watermark

Company Brokers Cenkos Securities Plc

Sterling class share price on 78.25p
31st July 2008

Sterling class issue price 100.00p
(9th July 2007)

Number of Sterling shares in 97,751,842
issue

U.S. Dollar class share price US$ 1.01
on 31st July 2008

U.S. Dollar class issue price US$ 1.00
(9th July 2007)

Number of U.S. Dollar shares 65,988,142
in issue

Minimum investment N/A

Dealing Daily

Valuation Monthly

NAV publication Monthly

July Sterling Estimated NAV 99.42 pence
per share

July U.S. Dollar Estimated NAV US$ 0.9836
per share

Total common assets US$ 258,442,316

Total Estimated Net Asset US$ 257,409,620
Value

Half-year end 30th September 2008

Financial year end 31st March 2009

Company Secretary and Royal Bank of Canada Offshore Fund Managers Limited
Administrator

Registrar Capita Registrars (Guernsey) Limited

Stock Exchange code (Sterling BRAL
shares)

Stock Exchange code (US Dollar BRAU
shares)

Sedol code (Sterling shares) B1XCHB9

Sedol code (US Dollar shares) B1XCLF1

ISIN code (Sterling shares) GG00B1XCHB94

ISIN code (US Dollar shares) GG00B1XCLF11

JULY MARKET COMMENTARY

July opened to confirmation that the first six months of 2008 had been the worst for global stocks for 26 years. The first day of
trading in July saw stocks continue the pattern with all major indices registering drops as oil hovered around the $141 a barrel mark.

Commodities opened the month sharply higher for a variety of reasons. Sugar soared 5% on news that Brazil will convert more cane into
ethanol biofuel; cocoa hit an all-time high amid fears about the crop in the Ivory Coast to stand 60% up this year; soyabeans hit a record
high on worries that the U.S. harvest could disappoint; and gold reached a 10-week high.

After the first week of trading, the S&P 500 index was hovering by the slimmest possible margin above the official mark of a bear
market, having fallen by 19.99% from its peak in October 2007. The index subsequently ceded defeat, sliding into official bear market
territory. The VIX index, which measures equity volatility, touched a three-month high; oil fell to $136, down $10 in the space of a single
week.

As the month progressed, trading remained volatile and highly tuned to news from the financials sector, economic news, commodities and
the oil price. Fears about the strength of the two U.S. government-sponsored mortgage financiers sent the shares of those companies plunging
and prompted emergency support from the Federal Reserve. As the Fed Chairman signalled 'numerous difficulties ahead', equity markets lurched
downwards, the Dollar sank to an all-time low of $/EUR1.6038 and gold rallied to a four-month high. UK and U.S. inflation numbers for June
were both significantly higher than forecast. In the case of the UK, inflation of 3.8% was twice the Bank of England target.

As the month closed, oil had dropped below $125 a barrel for the first time in six weeks, triggering declines in other commodities. The
FTSE-100 index ended July down 3.8%; the FTSE Eurofirst 300 index was down 1.77%, the S&P 500 index was down 0.99% and the MSCI World index
was down 1.08%. The Dollar had scraped back from its lows, closing at $/EUR1.56 and $/�1.98 against the Euro and Sterling respectively.

PORTFOLIO NEWS

General

The underlying unaudited performance in July was -1.67% for the Sterling share class and
-1.69% for the U.S Dollar share class. This compares to falls of 2.7% and 2.6% for the HFRI Fund of Funds Composite Index and Credit
Suisse/Tremont Hedge Fund Index.

There are 36 holdings in the Company's overall portfolio. During the month, the investment manager sold its holding in Abchurch Europe
Fund Limited and reinvested the proceeds in Alydar Fund Limited, a Boston-based long/short equity fund.

In mid-July, the Company appointed Mesirow Financial Currency Management with the dual aim of protecting the portfolio from currency
movements and of generating alpha. Mesirow will maintain a default hedge at 70% of the Company's major currency exposures, but it has
discretion to change that ratio according to market conditions.

The stand-out performer during July was Renaissance Institutional Equities Fund Limited. Overall, the Company's hedge fund investments
experienced widely varying fortunes during the month with Atticus European, Enso global Equities Fund Limited, York Asian Opportunities Unit
Trust, Hard Assets 2X, King Street Capital Limited and Lansdowne UK Equity Fund finding market conditions particularly tough going.
Encouraging resilience was displayed by Rye Select Broad Market XL Portfolio Limited, D.E. Shaw Oculus International Members Interest,
Kaiser Trading Diversified 2X Segregated Portfolio, Aarkad plc and Defender Limited.

We are making changes to the Company's Transitional portfolio to reduce the exposure to market volatility. We expect to increase
investment in absolute return, market neutral and relative value funds during September and October following redemptions from five of the
Company's eight holdings in the Transitional portfolio, as described in more detail below. The Company continues to hold a significant
amount of cash, which amounted to 9.4% of the portfolio at 31 July 2008.

Private Equity and Specialty

The Company has now made commitments to sixteen underlying private equity funds and underlying specialty funds amounting to
approximately $223 million. No new commitments were made during July.

The total amount that has been drawn-down on the commitments made is approximately $63 million, with approximately $4.1 million of
capital having been drawn-down in July. The Company received one distribution during July from Coller International Partners V L.P. and has
now received total distributions of $1.9 million since inception.

The private equity and specialty portfolios are performing as expected, with much of the portfolio going through the J-curve currently
and so experiencing the initial losses that are typically incurred as private equity firms begin improving their portfolio companies. The
secondaries private equity funds are providing support for the portfolio, continuing with distributions as expected to balance against the
capital calls for other funds. Some of the 2006 investments are coming to a stage where they are starting to consider exit options and
pricing. The value of some investments has been written up to reflect both impending exits as well as operating improvements in their
portfolio companies. The distressed debt managers to which the Company committed late last year and earlier this year have started investing
into certain quality distressed situations during the current quarter, as the investment manager had anticipated. These commitments are
expected to draw heavily over the next two years to take advantage of the prime opportunity for distressed assets and are expected to generate good returns as a result.

Transitional Portfolio

The portfolio held eight funds at 31 July. It returned -1.4%, including cash, during July and has returned an unaudited -1.9%, including
cash, in the calendar year-to-date compared with -5.0% year-to-date return for the HFRI Fund of Funds Composite Index and -2.1% for the
Credit Suisse/Tremont Hedge Fund Index. Since inception, the portfolio has returned -0.5%.

The portfolio's holding in Renaissance Institutional Equities Fund International L.P. was a strong performer during the month, while
holdings in defensive and market neutral stocks, Aarkad plc and Defender Ltd, once again continued to deliver steady monthly returns.

Our Transitional portfolio is designed to manage the cash that the Company commits to private equity and specialty funds but has yet to
be drawn-down. The Company may seek to implement portfolio protection through the use of derivatives from time to time for some portion of
the Transitional portfolio, though the Company has not used derivatives for this purpose to date.

The Transitional portfolio was set up with three aspirations; to reflect private equity-type characteristics and returns, to preserve
capital over the medium-term and to be as liquid as possible so that the Company can meet its capital calls. Initially, to achieve these
aims the portfolio was largely invested in a series of specialist global equity managers, long/short equity and event-driven managers as
these classes demonstrate the most similar characteristics to private equity. The portfolio also aimed to reduce exposure to market risk
through market neutral and relative value funds.

In response to the continuing market turbulence, the investment manager has been reducing the emphasis on achieving private equity-type
returns and increasing the focus on capital preservation. In this context, the investment manager has submitted redemption notices to five
of its eight managers and a switch notice to one manager. It will retain only Aarkad Plc and Defender Limited from its original portfolio of
managers. The holding in Renaissance is being switched to Renaissance Institutional Futures Fund International L.P., effective 1 September
2008. The repositioning of the Company's Transitional portfolio is being implemented to reduce the exposure to long-only equities in favour
of absolute return, market neutral and defensive stocks. The investment manager intends to reinvest the proceeds from the five redemptions
during September and October 2008.

Strategic Hedge Funds Portfolio

It was an arduous month for global markets, as sector rotation and sharp reversals made for difficult trading conditions. The portfolio
held up reasonably well, although was unable to avoid losses. The portfolio held 12 funds at 31 July. It returned -1.8% during July and has
returned an unaudited +6.1% in the calendar year-to-date. Since inception, the portfolio has returned an unaudited +16.2%.

Portfolio Highlights

Equity Hedged
It was a volatile month for the style, which posted a loss. Our European manager's bias against financials and in favour of mining hit
the portfolio returns as these sectors were exposed to rapid market rotation. Our dedicated short seller profited from single stock
positions in energy, tech and utilities, with the largest overall gain coming from the fund's levered short index hedge.

Event Driven
The style posted a loss, attributed in the main to the special situations managers, which had a difficult time amidst the extreme
volatility in equity markets during July. One manager was severely impacted by its net long exposure, posting losses due to the reversal in
financial stocks combined with the large sell off in energy and mining. Our distressed manager was down as credit markets suffered similar
volatility to equity markets, with cash markets underperforming synthetic markets.

Global Macro
The sharp corrections in commodities were detrimental to the style, leading to a loss during the month. While our commodities manager
was driven downwards by energy and agricultural exposure, our global trader was better positioned to seize opportunities in the tumultuous
environment. The manager's equity statistical arbitrage strategy performed well, taking advantage of the U.S. equity sector rotation.

Managed Futures
Managed Futures ended its positive run, posting a loss for the month as the trading environment favoured short-term trend followers over
long-term traders.The collapse in energy prices created ripples in other sectors, driving bonds and equities up, leading one manager to
profit from positions in bond and equities indices. Despite negative performance for the month, another manager was able to find profitable
pockets in the portfolio, benefiting from short Nikkei positions and Japanese Government Bonds.

Relative Value
The style posted a loss this month, amidst inconsistent volatility levels, spiking towards the beginning of the month and retreating
month-end. The multi-strategy manager was negatively affected by the industry-wide deleveraging, although the manager's defensive
positioning was able to offset some losses through its U.S.-centric equity long/short strategy. Despite the big gyrations in implied and
realised volatility, one quantitative manager profited from its derivative strategy focusing on the S&P 100 Index.

Geographical Allocation
North America 39.2%
Global 29.3%
Europe 26.6%
Asia & Other 4.9%

Portfolio Holdings Asset Allocation
Transitional 34.2%
Strategic Hedge Funds 33.9%
Private Equity 18.0%
Cash 9.4%
Specialty 4.5%

PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 31st July 2008

Manager Type Portfolio Weighting
Cash Cash 9.4%
Platinum Grove Contingent Capital Transitional 6.5%
Offshore Fund Ltd.
York European Opportunities Unit Transitional 5.8%
Trust
Enso Global Equities Fund Ltd. Transitional 5.7%
D.E. Shaw Oculus International Strategic Hedge Funds 4.4%
Members Interest
Defender Ltd. Transitional 4.3%
Greenpark International Investors Private Equity 4.2%
III L.P.
Paulson Advantage Plus Ltd. Strategic Hedge Funds 3.7%
Hard Assets 2X Fund Ltd. Strategic Hedge Funds 3.7%
Terra Firma Capital Partners III Private Equity 3.7%
L.P.
Rye Select Broad Market XL Strategic Hedge Funds 3.7%
Portfolio Ltd.
Lansdowne UK Equity Strategic Hedge Funds 3.4%
Thomas H. Lee Parallel Fund VI Private Equity 3.3%
L.P.
Deephaven Global Multi-Strategy Strategic Hedge Funds 3.2%
Fund Ltd.
Renaissance Institutional Transitional 3.1%
Equities Fund International L.P.
Aarkad Plc Transitional 3.1%
Alydar Fund Limited Strategic Hedge Funds 3.0%
York Asian Opportunities Unit Transitional 2.9%
Trust
Oak Hill Credit Alpha Fund Transitional 2.8%
Offshore Ltd.
King Street Capital Ltd. Strategic Hedge Funds 2.2%
Kei Ltd. Strategic Hedge Funds 2.1%
Arcas MAC 79 Ltd. Strategic Hedge Funds 2.0%
Goldman Sachs Capital Partners VI Private Equity 2.0%
L.P.
Strategic Recovery Fund II L.P. Specialty 1.8%
MatlinPatterson Global Specialty 1.6%
Opportunities Partners III L.P.
Kaiser Trading Diversified 2X Strategic Hedge Funds 1.5%
Segregated Portfolio
Coller International Partners V Private Equity 1.5%
L.P.
DFJ Athena Private Equity 0.8%
Lehman Brothers Venture Partners Private Equity 0.8%
V L.P.
Atticus European Fund Ltd. Strategic Hedge Funds 0.8%
AIG Brazil Special Situations II Private Equity 0.7%
L.P.
Silver Lake Partners III L.P. Private Equity 0.6%
Pine Brook Capital Partners L.P. Specialty 0.5%
Oaktree OCM Opportunities Fund Specialty 0.4%
VIIb L.P.
Thoma Bravo Fund IX L.P Private Equity 0.3%
Rho Ventures VI L.P. Private Equity 0.1%
HIG Bayside Debt &LBO II Fund Specialty 0.07%
L.P.

This Factsheet has been produced by Bramdean Asset Management LLP, authorised and regulated by the Financial Services Authority. It is
aimed solely at shareholders of Bramdean Alternatives Limited and it should not be relied upon by any other person.

Please note that Bramdean Asset Management LLP has obtained information from a wide variety of sources for the content of this
Factsheet. Whilst it has made reasonable endeavours to verify such information, this Factsheet should not be used as the exclusive basis of
any investment decisions. It relates to a relatively short time period whilst many of the investments of Bramdean Alternatives Ltd are of a
long-term nature.

Bramdean Alternatives Limited invests in high risk alternative investment vehicles. It is
aimed at professional or sophisticated investors who intend to hold their investment
for the longer term. If you are not a professional or sophisticated investor you should take independent financial advice in relation to
any proposed investment in
Bramdean Alternatives Limited.

Please note that up to date information on the Company, including its monthly NAV and share prices, fact sheets, Prospectus and
portfolio information can be found at www.bramdeanalternatives.com.

This Factsheet will be available on www.bramdeanalternatives.com in PDF format in due course.

Capita Registrar's helpline is 0871 664 0300 (Calls cost 10 pence per minute plus network extras). For callers outside the UK, please
dial: +44 (0)20 8639 3399.

Registered Office: Canada Court, Upland Road, St. Peter Port, Guernsey, GY1 3QE, Channel Islands.

CONTACT DETAILS

Amanda McCrystal, or amccrystal@bramdean.com
Bramdean Asset Management LLP. 35 Park Lane, London W1K 1RB, United Kingdom

T+44 (0)20 7052 9272 F+44 (0)20 7052 9273 W www.bramdean.com

This information is provided by RNS
The company news service from the London Stock Exchange

END

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