Denmark's public prosecutor for Serious Economic Crime (Statsadvokaten for Særlig Økonomisk Kriminalitet) today raided SmallCap Danmark, a specialist asset manager in Nordic SME stocks.

The company said in a statement that the raid on its office was undertaken on the basis of suspicions about laws governing securities trading being broken.

It said that it had no further comment currently on the prosecutor's action.

The full response published in Danish on SmallCap Danmark's website reads:

Statsadvokaten for Særlig Økonomisk Kriminalitet (SØK) har i dag ransaget foreningens kontor med baggrund i mistanke om overtrædelse af værdipapirhandelsloven. Foreningen har for nærværende ikke nærmere oplysninger om baggrunden og kan derfor ikke kommentere yderligere på sagen på nuværende tidspunkt.

Med venlig hilsen

Investeringsforeningen SmallCap Danmark

Bestyrelsen

No further comment has been released by the prosecutor's office.

The asset manager offers two funds: SmallCap Danmark A/S and SmallCap Danmark, which is a so-called Investeringsforening or type of collective investment specific to the Danish market.

Over 10 years from launch in 2000, the SmallCap Danmark A/S fund returned 356.2%, or an annual average of 15.2%, according to figures published by the manager.

This track record means that over the period it has beaten all equity-based Investeringforening portfolios that focus on Danish equity, the manager states.

The SmallCap Danmark Investeringsforening portfolio returned -28.9% between May 2006 to the end of September 2011. However, it beat its benchmark KFMX index, which returned -51% over the same period.

The top five holdings as of the most recent data available included DLH, North Media, BoConcept Holding, Egetæpper, and H+H International.

The board, which issued today's statement, is chaired by Jan Frøshaug. He is also listed as a chair or board member of the following organisations: Absolute Return Partners, Trafalgar House Trustees, Veronis Suhler Stevenson, Ringier, THPA, Veronis Suhler Stevenson, and as partner at Vega Invest.

Other board directors listed by the company are Niels Roth, Erik Skjøtt and Per Pedersen.

Their respective other board duties are listed here: http://www.smallcap.dk/bestyrelse/