Bramdean Alternatives, the listed fund of hedge funds run by Nicola Horlick, has been approached by a potential buyer despite a difficult period in which it has suffered big losses on investments in vehicles run by Bernie Madoff and poorly-performing funds.

In an announcement to shareholders this morning, the fund, which is listed on the London Stock Exchange, said it had been approached by a suitor over the sale of all outstanding shares. Securities boutique, Cenkos, had been appointed to run a review of the fund's future, including a potential sale, before this approach was made.