Nicola Horlick's firm has admitted exposure to Bernard Madoff's "Ponzi scheme".
A UK investment fund's exposure to allegedly fraudulent hedge funds run by Bernard Madoff is to be written off.
Bramdean reportedly lost out on around nine percent of its total net assets - or, around £10 million - in November. The UK firm was exposed to two of the funds, Rye Select and Defender, and has indicated that it will now look to recover money lost in them.
Mr Madoff was arrested late last year by the US authorities, apparently telling them soon after that his company operated as "a Ponzi scheme" - where old investors are paid with money from new investors, rather than from the fund itself - and that the fraud could be worth as much as £33 billion. Since then, investors ranging from local authorities to wealthy socialites have admitted their exposure to Mr Madoff.
In a statement, Bramdean said: "The company [investment trust] will continue to monitor the situation in respect of its investments in Rye Select and Defender and make every appropriate effort to seek recovery of the assets."
Bramdean is well known in the City as it counts "superwoman" Nicola Horlick on its staff. The financial expert hit the headlines in the 1990s, when it was revealed that she was holding down a high-profile job while bringing up five children.
