• Closure of K2 Australian Small Cap Hedge Fund following strategic review
• Reallocation of capital and resources to higher-growth, higher-return opportunities
• Improved operating efficiency and streamlined product suite

K2 Asset Management Holdings Ltd (K2) has announced that it will be closing its K2 Australian Small Cap Fund (the Fund or KSM) following a comprehensive internal strategic review. The review was part of K2's ongoing commitment to disciplined capital allocation, product performance oversight, and long-term value creation for shareholders. After a detailed assessment of the Fund's financial contribution, scalability, growth trajectory, and forward-looking profitability, K2 determined that the Fund is unlikely to achieve the sustainable profitability required to meet the company's return thresholds over the medium term. As a result, the closure of the Fund is deemed the best course of action. The closure will allow K2 to reallocate capital and resources toward higher-growth and higher-return opportunities, improve overall operating efficiency, streamline the product suite with a focus on Fund-of-Fund products and CIO advisory, and enhance long-term profitability and shareholder value. Subject to any required regulatory approvals, the Fund will be wound down in an orderly manner, with investors to be contacted directly with detailed information regarding timelines, redemption processes, and key dates. K2 remains focused on executing its core strategy and delivering sustainable returns to clients and shareholders.

K2 Asset Management remains focused on executing its core strategy and delivering sustainable returns to clients and shareholders.