Tremont Trust May Terminate

Date: Monday, January 22, 2007
Author: HFN Daily Report

Hedge fund manager Tremont Capital Management announced Thursday it will hold a special meeting of unitholders to consider the early termination of the Tremont Capital Opportunity Trust.

The trust is currently scheduled to terminate in 2013, but Tremont believes an early termination date would be in the best interest of shareholders. The fund manager cited recent losses and increasing regulatory and operational costs as reasons for the decision.

Currently, the trust receives exposure to the returns of a hedge fund portfolio held by Tremont Hedge Fund Ltd. through a forward agreement with TD Global Finance. If the trust terminates, it will have to pay an early termination fee to TD Global.

The unitholders meeting has not yet been scheduled but it is expected to take place in March.

Tremont is based in Rye, N.Y, with additional offices in Toronto, London and Hong Kong. The firm has about $8 billion in assets under management.