Hedge Funds

BBVA withdraws from alternatives business

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Spanish bank BBVA decided to allow for a gradual withdrawal from its alternative investment funds. These assets were previously managed through Proxima Alfa Investments, a subsidiary, and Altitude, a joint venutre with NewFinance in London.

The move comes after the bank revealed a $447 million exposure to Bernard Madoff. This came from structuring products that referred to third-party investments in Primeo Fund, managed by Pioneer Alternative Investment; Fairfield Sentry, managed by Fairfield Greenwich; and Kingate Global Fund.

All of Altitude's $158 million in assets has already been requested for redemptions, while Proxima's $930 million portfolio is said to