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16 Oct 2006

RMF Team creates Four Funds of Funds

A new hedge fund run by former RMF-Man Investment analysts is being set up and named after its Swiss latitude, 47 Degrees North Capital Management in Pfaeffikon, Switzerland, the hedge fund also plans on offices in New York.

47 Degrees North Capital is launching four new funds of funds, including one this year. This alternative investment firm will be backed by Jim Kelly, former Moore Capital Management co founder and president of Third Point Capital. The team of partners are Bruno Wicki, Raphael Blunschi and Claude Porret. Kelly plans to invest in the fund wth his own money as well as investments from other hedge fund managers.
When with RMF/Man Investments, this alternative team specialized in researching and developing hedge fund strategies, such as CAT bonds, electricity trading or insurance securities. Wicki, Blunschi and Porret were involved in the launch of the RMF Commodity Fund, which has grown to $2 billion and has yielded a 20% annual rate of return.

47 Degrees North New Generation Fund will offer investors access to emerging managers with a track record of between a few months and two or three years. This fund will target returns of 12% with 5% to 7% volatility.

The 47 Degrees N Seeding Fund will invest in start-up hedge funds, this fund aims for annual returns of 15% over a five-year cycle with volatility of 6% to 8%.

The 47 Degrees N Commodity Fund will use the expertise of the team in selecting commodity managers and invest in hedge funds using both directional and non-directional strategies across commodity markets.

Finally, the 47 Degrees N Innovation Fund will invest in hedge funds trading in innovative markets, such as emissions rights or weather derivatives as well as exotic products, including insurance-linked securities or financing and lending.

Hedge Fund Billionaire Couple donate $19 Million to the Arts

Kenneth C. Griffin, president and CEO of Citadel Investment Group, one of the world’s largest hedge funds and his wife Anne Dias Griffin, founder of hedge fund Aragon Global Management, donated $19 million to the Art Institute of Chicago late last week.

James Cuno, president of the Institute said the wing will be named the “Kenneth and Anne Griffin Court.” The Modern Wing’s central court, scheduled to open in 2009, is expected to cost $260 million.

The Griffins have collections of modern art, and have been known to loan them out to museums and exhibitions.

Citadel Investment Group is a $12 billion Chicago-based hedge fund. The alternative investment firm is known for its daily trading volume, which amounts to 1 to 2% of daily trading activity in New York and Tokyo. Citadel was founded by Kenneth Griffin in 1990.

Anne Dias Griffin is managing partner and founder of the firm Aragon Global Management, a long/short hedge fund focusing on global equities.

Hedge Funds accused of Securities Violation

Hedge fund managers Michael A. Roth and Brian J. Stark have had a complaint lodged aganst them by Multi Fineline Electronix (M-Flex) with the United States District Court.

The complaint alleges that the Stark hedge fund filings are misleading to their stockholders and that the hedge fund failed to disclose their 32,075,000 shares of M-Flex securities. The complaint asks that the hedge funds be required to amend their filings stateing the nature of their investment and wants an injunction keeping them from voting their shares in favor of the offer.

The complaint also alleges that the Stark hedge funds have been short selling their stock, causing a negative effect on the value of M-Flex stock.

Other hedge funds and management companies controlled by these individuals, including Stark Master Fund Ltd., Stark Asia Master Fund Ltd., Stark Onshore Master Holdings, LLC, Stark Offshore Managements, LLC, and Stark Asia Management, LLC., have also been accused of planning to profit at the expense of the company and its shareholders.

According to the filing with the U.S. Securities and Exchange Commission (SEC), the Stark hedge funds own approximately 4.5 million shares of M-Flex stock, representing approximately 18.4% of M-Flex’s outstanding shares of common stock, and approximately 48% of the shares held by non-affiliated stockholders.

According to Phil Harding, M-Flex’s chairman and chief executive officer, the company believes that the Stark hedge funds have little or no interest in the company’s current business operations and strategies nor in the long term well being of M-Flex.