A fund listed on the Bermuda Stock Exchange has revealed that it has $2.8 million in indirect exposure to the Madoff scandal.

Global Specialised Opportunities 1 Ltd. (GSO1) said in a stament released by the BSX: "As you may be aware, allegations have emerged of potential fraudulent activities by Mr. Bernard L. Madoff and his investment advisory business, which potentially has a material impact on both direct and indirect investments in the Madoff funds.

"As at December 15, 2008, GSO1 had a total indirect exposure to this manager of $2.8 million (or c. five percent of NAV) in the discretionary Investment Portfolio.

"Whilst this situation could potentially have an impact on the NAV of GSO1, the Directors do not foresee it having a significant impact on the overall strategy of GSO1. We will update shareholders as and when further information emerges."