Friedberg Mercantile Group, Ltd (FMGL)

September 18, 2007 17:30 ET

Friedberg Mercantile Group Ltd.: Press Release

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2007) - Friedberg Mercantile Group Ltd. ("FMGL") announced today that it is prepared to accept limited subscriptions for the Friedberg Global Macro Hedge Fund (the "Fund") to match, as closely as possible, the amount of cash outflows, primarily due to redemptions.

FMGL announced on August 2, 2007 that, while it was not suspending redemptions, it was suspending acceptance of subscriptions to the Fund, because of the likelihood that any substantial inflow of net new subscriptions would dilute existing investors due to the recent high degree of volatility in credit derivatives and the extreme difficulty to faithfully replicate the position of over-the-counter traded credit default swaps that the Fund currently maintains. As a result FMGL determined that it would be in the best interests of the Fund's unitholders to temporarily close the Fund to new subscriptions.

Subscriptions will be accepted on a first-come basis in aggregate amounts approximating aggregate cash outflows.

FMGL will review this decision on an ongoing basis with a view to fully re-opening the Fund to new investors as soon as appropriate.

Contact Information

  • Friedberg Mercantile Group Ltd.
    Henry Fenig
    Vice President
    (416) 350-2890
    (416) 364-0572 (FAX)