Factsheet October 2008

RNS Number : 9793I
Bramdean Alternatives Limited
26 November 2008

RNS Announcement
26 November 2008

Bramdean Alternatives Limited

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

October Estimated Net Asset Values

Sterling shares: 101.78 pence
U.S. Dollar shares: US$0.9028

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 �101.2 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 JPMorgan Cazenove
Cenkos Securities Plc

Sterling class share price on 64.50p
31st October 2008

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

Number of Sterling shares in 97,701,842
issue

U.S. Dollar class share price US$ 0.9350
on 31st October 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

October Sterling Estimated NAV 101.78 pence
per share

October U.S. Dollar Estimated US$ 0.9028
NAV per share

Total common assets US$225,262,180

Total Estimated Net Asset US$220,245,659
Value

Half-year end 30th September 2008

Financial year end 31st March 2009

Company Secretary and RBCOffshore 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

OCTOBER MARKET COMMENTARY

The reprieve that came at the opening of the month with the eventual passing by U.S. Congress of the Troubled Asset Relief Plan (TARP)
was short-lived. The financial crisis deepened during October as weak economic data reinforced the consensus that global recession is
inevitable. Central Banks were forced to take action in an attempt to calm markets with coordinated interest rate cuts from the Federal
Reserve, European Central Bank and Bank of England. The Bank of England's �50 billion banking rescue plan was well-received and emulated by
its European peers. But the subsequent rally in financial markets lacked conviction and was soon reversed.

Across continental Europe, sharp falls in employment, business and consumer confidence were reported. In the U.S., the Institute of
Supply Management index of manufacturing slid to 43, where 50 signals economic contraction. In the past 30 years, the ISM has only dropped
below 45 during recessions.

The oil price came under sustained pressure, opening the month at US$98.53 for the November West Texas Intermediate (WTI) contract and
ending the month at US$65.32 for the December WTI contract.

Against a deteriorating global economic outlook, Government bonds rose as investors sought out the safest possible instruments, while
corporate bonds sank. Credit spreads widened as fears grew over the solvency of a number of financial institutions and more financial
institutions had to be rescued. Central Banks and Government injected capital to stimulate the banking system, but to little avail.

In what was to become the worst month on record for hedge funds, signs of the stress that would gain momentum over the coming weeks saw
a number of hedge funds suspend or restrict redemptions and, in some cases, fold without warning. Equity markets around the world fell
sharply with the MSCI World Index losing 19% over the month; the FTSE-100 index lost 10.7%; the Eurofirst 300 Index lost 12.7% and the S&P
500 index lost 16.9%.

Sterling was one of the biggest casualties of the month, losing 9.4% to the U.S. Dollar, which closed the month at US$/�1.62.

PORTFOLIO NEWS

General

The underlying unaudited performance in October was +4.65% for the Sterling Share class and
-0.89% for the U.S Dollar Share class, as measured against the revised September 2008 announced as part of the half-yearly financial
review. This compares to falls of -5.99% and
-6.30% for the HFRI Fund of Funds Composite Index and Credit Suisse/Tremont Hedge Fund Index.

The discrepancy in performance between the two Share classes is caused by the continued strengthening of the U.S. Dollar, which
appreciated by a further 10% against Sterling during October. The Company hedges at the Share class level with the Sterling Share class
reducing its hedge ratio, during October, to 35% of its U.S. Dollar and Euro exposure, while the U.S. Dollar Share class hedged, during
October, 70% of its Euro and Sterling exposure. The decision to reduce the hedging rate on the Sterling Share class was taken in support of
our view that the U.S. Dollar will continue to appreciate at the expense of Sterling.

As a result of our negative view of the outlook for Sterling, Mesirow Financial Currency Management will manage the hedge on the U.S.
Dollar and Euro exposure in the Sterling Share class tactically. This may include taking the hedge ratio to zero in the Sterling Share
class. Such a tactic would be matched by a 100% hedge ratio being applied to the Sterling and Euro exposure in the U.S. Dollar Share class.
The hedge ratio will remain under close scrutiny and this tactical management does not signal any change in the Company's stated hedging
policy.

There are 34 holdings in the Company's overall portfolio. During the month, the Company's redemptions from three Funds in the
Transitional portfolio became effective: Oak Hill Credit Alpha Offshore Limited, York European Opportunities Unit Trust and York Asian
Opportunities Unit were redeemed on 1 October 2008. As a result of these redemptions, there are now four Funds held within the Transitional
portfolio: Aarkad plc, Defender Ltd., Kaiser Trading Fund and Renaissance Institutional Futures Fund ("RIFF").

The stand-out performers during October were Evergreen MAC and Arcas MAC 79 Ltd., both held within the Strategic Hedge Funds portfolio.
Both reported outstanding, strong performance during what was the worst month yet for hedge funds.

Overall, the Company's hedge fund investments experienced mixed fortunes. In the Transitional portfolio, RIFF struggled while the other
three Funds in that portfolio remained in positive territory. In the Strategic Hedge Funds portfolio, the impressive returns from Evergreen
and Arcas were supported by robust performance from Paulson Advantage Plus and Kaiser Trading Group Diversified 2X Segregated Portfolio.

At 31 October 2008, the Company held 20% of its total Portfolio in cash. The Investment Manager intends to maintain cash reserves in
order to fund draw-downs from the Private Equity and Specialty Funds and also to protect the NAV in these continuing volatile markets.

Private Equity and Specialty

The Company has now made commitments to eighteen underlying Private Equity Funds and underlying Specialty Funds amounting to
approximately $222.6 million, taking into account the U.S. Dollar's appreciation over the month. One new commitment of US$5.45 million was
made, on 31 October 2008, to Resonant Music I L.P., an innovative music-for-film Fund which provides finance for the music of independently
produced feature films and TV series. Resonant Music will seek to provide finance for around 200 film and TV projects, predominantly in the
UK and the U.S. over the next four years and is currently completing its first investments.

The total amount that has been drawn-down on the commitments made is approximately
$79.4 million, with approximately $7.6 million of capital having been drawn-down in October. The Company received one distribution
during October from Greenpark International Investors III L.P. and has now received total distributions of $2.3 million since inception.

Capital calls were received from eight of the underlying Funds. Revaluations relating to the third quarter 2008 have been received from
the managers of some of the Company's Private Equity and Specialty Funds and these have been incorporated into the NAV calculations for
either September 2008, as revised, or October 2008, depending on the date on which the valuation updates were received by the Company.
Downward valuations are to be expected given the exceptional market environment and it is likely that the Company will receive further fair
market valuation write-downs from some of these managers over the coming months.

Transitional Portfolio

The portfolio held four Funds at 31 October 2008 having redeemed from Oak Hill Credit Alpha Fund, York European Opportunities Unit Trust
and York Asian Opportunities Unit Trust. As a result of the Company's decision to redeem from the majority of its investments in the
Transitional portfolio and to hold the proceeds in cash, the remaining four Fund investments in the Transitional portfolio represent 13.8%
of the Company's overall Portfolio as at 31 October 2008.

The Transitional portfolio returned -1.2%, including cash, during October and has returned an unaudited -9.2%, including cash, in the
calendar year-to-date compared with -18.5% year-to-date return for the HFRI Fund of Funds Composite Index and -15.5% for the Credit
Suisse/Tremont Hedge Fund Index. Since inception, the Transitional portfolio has returned -7.9%.

The portfolio's holdings in Aarkad plc and Defender Ltd. continued to show positive returns. The overall performance was impacted
primarily by Renaissance Institutional Futures Fund, which was the only Fund in the Transitional portfolio to report a negative return.

Since the end of October 2008, the Investment Manager has also decided to redeem from both Aarkad plc and RIFF. We feel that Aarkad plc
may become exposed to the widespread impact of the sharp decline in the UK property market. In regard to RIFF, we feel that the recent
returns have been disappointing and that the Fund has not demonstrated the characteristics we seek from Funds within the Transitional
portfolio, which aims to manage the cash that the Company commits to Private Equity and Specialty Funds but has yet to be drawn-down. In the
short term, the proceeds, once received, will be held in cash, pending reinvestment in due course.

Strategic Hedge Funds Portfolio

The portfolio posted a loss during the month, but held up well in exceptionally challenging conditions. The portfolio held 13 Funds and
returned -1.5% during October 2008 and has returned an unaudited +1.3% in the calendar year-to-date. Since inception, the portfolio has
returned an unaudited +10.9%.

As at 31 October 2008, the Company's redemption from its investment in Arcas MAC 79 Ltd. has become effective. Redemption notices have
also been submitted to Atticus European Fund Ltd. and to Hard Assets 2X Fund Ltd., both scheduled to become effective 31 December 2008.

The strong performance of the Strategic Hedge Funds portfolio has taken its total share of the Company's Portfolio to just over 38% as
at 31 October 2008, against its target allocation of 30%. The Investment Manager has, therefore, determined to reduce the allocation to be
in line with its target. This will be achieved primarily through the redemptions from Atticus European Fund Ltd. and Hard Assets 2X Fund
Ltd. although some of the other holdings within the Strategic Hedge Funds portfolio will be trimmed in order to control their position
sizes.

Portfolio Highlights

Equity Hedged
It was an extremely testing month for equity long/short managers as we witnessed severe declines in most stock markets across the globe.
The style posted a slight loss, with our dedicated short seller instrumental in limiting losses as the manager thrived amid sharp falls in
US equities. Elsewhere, our U.S.-focused manager posted a small loss. The key positives for the manager were shorts in industrials, while
longs in consumer sectors were the largest detractor. Our UK based manager generated gains from its short exposure to the financial sector;
however, these were offset by losses incurred as a result of significant declines in resource stocks.

Event Driven
The style generated a gain, thanks to short positioning in both equities and credit. Our distressed manager posted a solid gain in the
worst-ever month for credit. The manager profited from basis trades and short positions in European sovereign bonds. It was a mixed month
for our special situations managers: one manager posted a strong gain, benefiting from its short credit exposure, while another manager was
down as core holdings declined over the month.

Global Macro
The style was down, as our commodities manager was impacted by the widespread declines in commodity prices. Global mining companies
began to price-in significant price falls for 2009, while the mid and small-cap space understandably remained under severe pressure. Despite
minimal market exposure, shorts were unable to offset losses from long positions. Our global trader enjoyed a slightly positive month with
returns being derived from equity trading, whilst some losses were experienced in asset class discretionary and futures & foreign exchange
trading.

Managed Futures
A small profit was recorded, as strong gains from a trend-follower were offset by losses from a short-term trader. During the month we
saw strong trends in all sectors, which benefited our trend-followers. Short positions in equity indices and long positions in the U.S.
Dollar were particularly profitable, especially against Sterling. Our short-term trader was impacted by long positions in global stock
futures as equity markets crashed early in the month. In a month, with strong relentless trends, it was difficult for contrarian and
mean-reversion strategies to perform.

Relative Value
In an extremely difficult environment, the style posted the largest loss for the month. Our derivative arbitrageur fund was slightly
down as the manager did not deploy its strategy during the month and remained mostly in cash. Our multi-strategy manager was down
significantly with the majority of losses coming from the manager's convertible bond and credit strategies. The month was an extraordinary
one for credit markets, with the relationship between bonds and credit derivatives appearing to break down completely.

Portfolio Highlights

Geographical Allocation
North America 59.6%
Global 21.1%
Europe 16.6%
Asia & Other 2.7%

Portfolio Holdings Asset Allocation
Strategic Hedge Funds 38.3%
Cash 20.1%
Private Equity 20.0%
Transitional 13.8%
Specialty 7.8%

PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 31 October 2008

Manager Type Portfolio Weighting
Cash Cash 20.1%
Defender Ltd. Transitional 5.1%
Greenpark International Investors Private Equity 4.9%
III L.P.
D.E. Shaw Oculus International Strategic Hedge Funds 4.7%
Members Interest
Paulson Advantage Plus Ltd. Strategic Hedge Funds 4.7%
Rye Select Broad Market XL Strategic Hedge Funds 4.4%
Portfolio Ltd.
Alydar Fund Ltd. Strategic Hedge Funds 4.3%
Aarkad Plc Transitional 3.8%
Hard Assets 2X Fund Ltd. Strategic Hedge Funds 3.7%
Lansdowne UK Equity Strategic Hedge Funds 3.6%
Thomas H. Lee Parallel Fund VI Private Equity 3.6%
L.P.
Oaktree OCM Opportunities Fund Specialty 3.2%
VIIb L.P.
Deephaven Global Multi-Strategy Strategic Hedge Funds 2.9%
Fund Ltd.
Renaissance Institutional Futures Transitional 2.7%
Fund International LLC
King Street Capital Ltd. Strategic Hedge Funds 2.6%
Coller International Partners V Private Equity 2.5%
L.P.
Kaiser Trading Fund Transitional 2.3%
Goldman Sachs Capital Partners VI Private Equity 2.2%
L.P.
MatlinPatterson Global Specialty 1.9%
Opportunities Partners III L.P.
Terra Firma Capital Partners III Private Equity 1.8%
L.P.
Kaiser Trading Diversified 2X Strategic Hedge Funds 1.8%
Segregated Portfolio
Kei Ltd. Strategic Hedge Funds 1.7%
Arcas MAC 79 Ltd. Strategic Hedge Funds 1.7%
Evergreen MAC Ltd. Strategic Hedge Funds 1.5%
SVG Strategic Recovery Fund II Specialty 1.3%
L.P.
DFJ Athena Private Equity 1.3%
Lehman Brothers Venture Partners Private Equity 1.3%
V L.P.
Silver Lake Partners III L.P. Private Equity 1.0%
AIG Brazil Special Situations II Private Equity 0.8%
L.P.
Atticus European Fund Ltd. Strategic Hedge Funds 0.7%
Pine Brook Capital Partners L.P. Specialty 0.7%
HIG Bayside Debt & LBO II Fund Specialty 0.6%
L.P.
Thoma Bravo Fund IX L.P Private Equity 0.4%
Rho Ventures VI L.P. Private Equity 0.3%
LimeTree Emerging Beachfront Land Specialty 0.1%
Investment Fund II 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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