Unaudited Interim Management Statement

Bramdean Alternatives Limited

Unaudited Interim Management Statement - 3 months to 31 December 2009

To the shareholders of Bramdean Alternatives Limited

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 October 2009 to 31 December 2009, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.

Overview

Bramdean Alternatives Limited ("the Company") is a Guernsey closed-ended 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.

Investment objective

To generate long term capital gains primarily through investment in a diversified portfolio of private equity funds, hedge funds and other specialty funds.

Material events

On 19 November 2009, the Company announced the appointment of Aberdeen Asset Managers Limited as its investment manager in place of Bramdean Asset Management LLP. Aberdeen will be assuming responsibility for management of the entire portfolio.

On 26 November 2009, certain holders of Shares in the Company owning Sterling Shares elected to switch into US Dollar Shares and certain holders of Shares in the Company owning US Dollar Shares elected to switch into Sterling Shares on the basis of the net asset value of the Company's Shares as at 30 October 2009.

As a result of the switch, 76,500 Sterling Shares were converted into 131,673 new US Dollar Shares and 321,790 US Dollar Shares were converted into 186,962 new Sterling Shares. Accordingly, the total voting rights in the Company changed to 261,797,331 following the conversion.

These elections were approved by the Board of Directors on 19 November 2009 and took effect on 26 November 2009.

On 23 December 2009 the Board announced the appointment of Jennifer L Wick, Philip Hebson, David Staples and Howard Myles as non-executive directors of the Company with immediate effect.

General description of Company's financial position as at 31 December 2009

As described in the Company's prospectus, and as has been the case since its launch, the net asset value ("NAV") and the NAV per share are both calculated monthly by the Company's administrator based on the latest published NAV for each underlying fund.

With only one exception, investments in underlying funds for the month ended 31 December 2009 are valued using the values (whether final or estimated) as advised by their managers, general partners or administrators. The Company therefore relied on valuation and reporting methods used by the managers, general partners or administrators of the underlying funds in deriving the 31 December 2009 NAV and NAV per share. That exception was Aarkad and was valued at a level recommended by the Company's Investment Manager (see investment commentary, below).

Investment Commentary

The Company remains committed to 16 Private Equity funds, with commitments totalling US$215.3 million. No new commitments were made during the quarter. The total drawn down on commitments made is approximately US$115.5m, with 23 capital calls having been made in the quarter, totalling US$10.7 million. The Company has received total distributions of US$5.6 million since inception, with US$1.4 million received during the quarter. Revaluations were received from all of the managers during the quarter, 12 were upwards revaluations and 4 were downwards revaluations.

The portfolio holds two specialty funds, one of which, Aarkad, remains suspended. Following a substantial analysis of this holding we have written its valuation down by 75%. This is based on ongoing sales of underlying 'called up' assets realising considerably lower proceeds than might have been expected when referenced to the original loan value on those underlying assets. Please note that Aarkad has been reclassified by Aberdeen, from a Transitional Fund, to a Specialty Fund.

The Strategic Hedge Funds portfolio was down for the quarter. Our multi-strategy manager, Deephaven, registered a substantial loss based on a potential tax liability that could arise from historical trades in Spain and Australia. The markdown was initially conservative and this has been subsequently reduced.

The portfolio's commitment cover which includes cash and the strategic hedge funds was 89.1% at 31 December 2009.

Portfolio Highlights

Geographical Allocation

Portfolio Holdings Asset Allocation

Portfolio Holdings (Invested Capital) on 31 December 2009

Cash: The Company currently has six approved cash deposit accounts.

Transitional Investments: The Company will seek to avoid return dilution caused by holding amounts that are not committed or are committed, but not yet drawn-down, on both underlying private equity funds and underlying specialty funds by investing such amounts in a range of transitional investments, which may include equity hedge, senior debt, mezzanine and market neutral funds.

Strategic Hedge Funds: The part of the Company's portfolio managed by Man Investments (CH) AG. 

Key Facts

Cumulative performance (%) (GBP)

Cumulative performance (%) (USD)

Discrete performance (%) (GBP)

Discrete performance (%) (USD)

Total Return; NAV to NAV, Net Income Reinvested, GBP

Source: Aberdeen Asset Managers Limited and Morningstar

NAV returns based on NAVs excluding income and with debt valued at par

The Board is not aware of any significant events or transactions which have occurred between 1 January 2010 and the date of publication of this interim management statement which would have a material impact on the financial position of the Company. For latest performance information, please refer to the Company's website, www.invtrusts.co.uk/bramdean.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.

For Bramdean Alternatives Limited

RBC Offshore Fund Managers LimitedSecretary

17 February 2010