EXHIBIT 99.1
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N E W S R E L E A S E
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Xxxxx Xxxxx & Xxxxxxxx, Inc.
N E W S
3110 Main Street, The Annex
Xxxxx Xxxxxx, Xxxxxxxxxx 00000
Date: October 18, 2005 For: BKF CAPITAL
Contact: Xxxxx Xxxxxxxxx/
Xxxx Xxxxxxx
(000) 000-0000
XXXX X. XXXXX & CO. ANNOUNCES WIND-UP OF EVENT DRIVEN
INVESTMENT VEHICLES
-FIRM SAYS IT REMAINS COMMITTED TO ALTERNATIVE INVESTMENT STRATEGIES-
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NEW YORK, October 18, 2005 - Xxxx X. Xxxxx & Co., Inc. announced today
the anticipated departure in the first half of 2006 of the senior portfolio
managers of its event-driven investment strategy. The Company stated that, as a
consequence, the portfolios of its event-driven investment vehicles will be
liquidated and the funds will be returned to investors in a timely fashion. The
liquidation will be conducted by the existing event-driven portfolio management
team. As of June 30, 2005, Event Driven assets under management represented
approximately 17% of total assets under management. For the six months ended
June 30, 2005, Event Driven Investment Management Fees and Incentive Fees
represented approximately 44% of total advisory revenue.
Xxxx X. Xxxxxxxxx, President and Chief Executive Officer of the firm,
stated: "The decision to wind-up the funds was made following negotiations with
all key event-driven investment personnel regarding compensation arrangements
going forward. While we are disappointed that we were not able to reach an
agreement with any of them in a timely manner, the firm remains committed to
offering a range of alternative investment strategies to our clients. The growth
of our existing alternative investment strategies and the development of new
strategies continue to be among our primary objectives. We appreciate the
efforts made over many years by Xxxxx Rango, Xxxxx Xxxxx and their entire
investment team, as they played a key role in establishing our firm as a
well-known provider of alternative investment strategies."
2
Xxxx X. Xxxxx & Co., Inc. is a New York-based investment management firm
offering long-only equity and alternative investment strategies. Clients include
U.S. and foreign individuals, their related trusts and charitable organizations,
college endowments, foundations, registered investment funds and pension and
profit-sharing plans. Xxxx X. Xxxxx & Co. is a subsidiary of BKF Capital Group,
Inc., which trades on the New York Stock Exchange under the symbol "BKF."
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This press release contains certain statements that are not historical facts,
including, most importantly, information concerning possible or assumed future
results of operations of BKF and statements preceded by, followed by or that
include the words "may," "believes," "expects," "anticipates," or the negation
thereof, or similar expressions, which constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 (the
"Reform Act"). For those statements, BKF claims the protection of the safe
harbor for forward-looking statements contained in the Reform Act. These
forward-looking statements are based on BKF's current expectations and are
susceptible to a number of risks, uncertainties and other factors, and BKF's
actual results, performance and achievements may differ materially from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include the following: retention and
ability of qualified personnel; the performance of the securities markets and of
value stocks in particular; the investment performance of client accounts; the
retention of significant client and/or distribution relationships; competition;
the existence or absence of adverse publicity; changes in business strategy;
quality of management; availability, terms and deployment of capital; business
abilities and judgment of personnel; labor and employee benefit costs; changes
in, or failure to comply with, government regulations; the costs and other
effects of legal and administrative proceedings; and other risks and
uncertainties referred to in this document and in BKF's other current and
periodic filings with the Securities and Exchange Commission, all of which are
difficult or impossible to predict accurately and many of which are beyond BKF's
control. BKF will not undertake and specifically declines any obligation to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events. In addition, it is BKF's policy generally not to make any specific
projections as to future earnings, and BKF does not endorse any projections
regarding future performance that may be made by third parties.
