According to Dr Nasser Saidi, Chief Economist of the Dubai International Financial Centre, "Economies of GCC states should now be considered as asset-based ones rather than oil-based."
The 'Sovereign Reserve Management, Pension and Institutional Funds Congress 2007' was held in Doha, Qatar. During the keynote address Dr Saidi said that in the UAE for example, "asset revenue is more important than resources". The economist discussed at length sovereign wealth funds. These funds are foreign currency assets held by states over and above the reserves of their central banks.
"We have seen the emergence of GCC countries going into acquisitions. With oil prices up, government spending has gone up. This resulted in the emergence of bureaucracies in GCC countries and as welfare states."
Though sovereign wealth funds are fully-capitalized and have low leverage, accounting for $3.1trillion globally, hedge funds account for $1.4 trillion but are highly-leveraged. However, both these funds are dwarfed by the size of insurance funds which amount to $16-17 trillion and pension funds, which total $18 trillion globally.
"It is highly unlikely that sovereign funds will act in a cohesive way. Growth is driven by high commodity prices, not just oil. This has led to high current account surpluses," said Dr Saidi.
Saidi said if a country has an extra $20 billion on hand, questions would arise on how the money should be invested. "The money should not be put into the central bank's reserves but placed where the money would get high returns. Emerging economies have now turned from being net capital importers to net capital exporters. The money is mainly going to other emerging markets."
It is matter of time, anything between five to ten years, for China to start investing in oil-producing states. "This will be because of China's need for energy resources and the need to diversify its assets," Dr Saidi said.
The Gulf Cooperation Council (GCC) also known as the The Cooperation Council for the Arab States of the Gulf (CCASG) is a trade bloc involving the six Arab states of the Persian Gulf with many economic and social objectives.
29 Oct 2007
Fund Of Resources-Hedge Fund Launch
The Gibraltar based Sirius Investment Management is launching the Sirius Investment Fund II, a natural resource and mining-focused fund of hedge funds, which will be open to new investment on 1 November.
It will invest predominantly in hedge funds that invest in very early stage mining plays and other natural resources, projects which are not dependent on fluctuations in commodity prices to generate returns, Sirius said.
It is particularly interested in projects which are moving from exploration to production, the stage with the greatest uplift in valuation. Larger companies with established production are more sensitive to the commodity price, Sirius added, so the fund will not invest in such opportunities. It targets 20% and hopes to raise $300m.
The Sirius Resource Fund, a resources special situations hybrid fund launched in April this year is broadly targeting iron ore, gold, diamonds, energy and copper plays, but expects to concentrate primarily on African emerging markets. Its special situations strategy will see investment targeted in pre-initial public offering companies as well as in small-cap listed equities and physical assets.
The fund has delivered 54.2% since inception, with an August return of 16.07% and has $50 million in assets under management.
It will invest predominantly in hedge funds that invest in very early stage mining plays and other natural resources, projects which are not dependent on fluctuations in commodity prices to generate returns, Sirius said.
It is particularly interested in projects which are moving from exploration to production, the stage with the greatest uplift in valuation. Larger companies with established production are more sensitive to the commodity price, Sirius added, so the fund will not invest in such opportunities. It targets 20% and hopes to raise $300m.
The Sirius Resource Fund, a resources special situations hybrid fund launched in April this year is broadly targeting iron ore, gold, diamonds, energy and copper plays, but expects to concentrate primarily on African emerging markets. Its special situations strategy will see investment targeted in pre-initial public offering companies as well as in small-cap listed equities and physical assets.
The fund has delivered 54.2% since inception, with an August return of 16.07% and has $50 million in assets under management.
Blackstone Appoints New Hilton Head
Hilton Hotels Corporation and Blackstone Group announced the completion of their merger last week and are now expected to name Host chief executive of Hotels & Resorts Inc Christopher Nassetta as president and CEO, according to the Wall Street Journal.
The Merger has been financed with $20.6 billion of mortgage and mezzanine debt financing and approximately $5.7 billion of equity invested by hedge funds affiliated with The Blackstone Group. As part of his new responsibilities, Nassetta will build up Hilton’s luxury lines, aiming to "marry" the hotel’s numerous lines, including Embassy Suites, Doubletree and Hampton Inn, with many of Blackstone's own hotels.
Acquisition financing was provided by Bear Stearns, Bank of America, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley. Hilton Hotels Corporation is the leading global hospitality company, with 2,896 properties totaling approximately 490,000 rooms in 76 countries and territories.
The Blackstone Group is a global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
The Merger has been financed with $20.6 billion of mortgage and mezzanine debt financing and approximately $5.7 billion of equity invested by hedge funds affiliated with The Blackstone Group. As part of his new responsibilities, Nassetta will build up Hilton’s luxury lines, aiming to "marry" the hotel’s numerous lines, including Embassy Suites, Doubletree and Hampton Inn, with many of Blackstone's own hotels.
Acquisition financing was provided by Bear Stearns, Bank of America, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley. Hilton Hotels Corporation is the leading global hospitality company, with 2,896 properties totaling approximately 490,000 rooms in 76 countries and territories.
The Blackstone Group is a global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
25 Oct 2007
UAE Investors To Increase Hedge Fund Holdings
Private investors in the United Arab Emirates plan to increase their holdings in alternative investments such as private equity, hedge funds and derivatives in the next three years, according to a new global report published by Barclays Wealth.
However, fewer than half of UAE investors polled expressed confidence in their knowledge of personal finance, hedge funds and private equity.
The report, 'Barclays Wealth Insights: Risk, Return and Reward', reveals that investors with at least $100,000 in investable assets plan to put more money into alternative investments over the next three years, as they seek more absolute returns.
The report reveals a trend amongst these investors of an increasing appetite for financial products which help reduce volatility, such as derivatives, private equity and hedge funds, particularly in the Middle East and Asia. At the same time, there is a move away from equities, which suggests investors have more of an appetite for returns that are stable rather than driven by market movements.
The survey, based on a global sample of 790 respondents that includes 100 individuals from the UAE, shows that 41% of UAE investors plan to invest in hedge funds in the next three years compared with the past three years (32%), according to the report.
Soha Nashaat, Managing Director and Head of Middle East at Barclays Wealth said, "Assets like hedge funds,... can all be used to manage risk, reduce volatility and stabilize results. Shariah-compliant products are of particular interest, as they are viewed in absolute return terms as well. The region has seen huge development in the Islamic finance sector in recent years and this is rapidly filtering through to the asset management arena, where considerable product development is now taking place."
However, fewer than half of UAE investors polled expressed confidence in their knowledge of personal finance, hedge funds and private equity.
The report, 'Barclays Wealth Insights: Risk, Return and Reward', reveals that investors with at least $100,000 in investable assets plan to put more money into alternative investments over the next three years, as they seek more absolute returns.
The report reveals a trend amongst these investors of an increasing appetite for financial products which help reduce volatility, such as derivatives, private equity and hedge funds, particularly in the Middle East and Asia. At the same time, there is a move away from equities, which suggests investors have more of an appetite for returns that are stable rather than driven by market movements.
The survey, based on a global sample of 790 respondents that includes 100 individuals from the UAE, shows that 41% of UAE investors plan to invest in hedge funds in the next three years compared with the past three years (32%), according to the report.
Soha Nashaat, Managing Director and Head of Middle East at Barclays Wealth said, "Assets like hedge funds,... can all be used to manage risk, reduce volatility and stabilize results. Shariah-compliant products are of particular interest, as they are viewed in absolute return terms as well. The region has seen huge development in the Islamic finance sector in recent years and this is rapidly filtering through to the asset management arena, where considerable product development is now taking place."
24 Oct 2007
Real Estate Entrepreneur Rod Khleif And Personal Philanthropy
The Florida real estate investor Rod Khleif has founded two non-profit charity organizations -Tiny Hands Foundation and A Better Choice Foundation.
The Tiny Hands Foundation was founded by Rod Khleif in the year 2001 with an intention to create an experience of joy for low-income children by providing a holiday meal for their entire family.
Through his basket brigade, implementing educational programs, researching cancer methodologies and love, Mr. Khleif intends to make a huge impact on the world. Through this foundation Rod Khleif has fed thousands of children around the holidays with giant baskets of food during the holidays for the past 6 years. Rod Khleif along with the “Tiny Hands Foundation” will feed 1,600 families on November 17, 2007 for the Thanksgiving holiday.
Rod Khleif also founded “A Better Choice Foundation” to support the search for alternative cures for cancer, emphasizing a non-traditional, holistic approach to a cancer patient’s physical and emotional well-being.
This foundation was formed to educate the public and doctors about the benefits of fighting cancer holistically. A Better Choice Foundation is in the process of assembling as many methodologies and practitioners as possible to form a collective voice, which will be presented to the public thus creating a massive impact.
The Tiny Hands Foundation was founded by Rod Khleif in the year 2001 with an intention to create an experience of joy for low-income children by providing a holiday meal for their entire family.
Through his basket brigade, implementing educational programs, researching cancer methodologies and love, Mr. Khleif intends to make a huge impact on the world. Through this foundation Rod Khleif has fed thousands of children around the holidays with giant baskets of food during the holidays for the past 6 years. Rod Khleif along with the “Tiny Hands Foundation” will feed 1,600 families on November 17, 2007 for the Thanksgiving holiday.
Rod Khleif also founded “A Better Choice Foundation” to support the search for alternative cures for cancer, emphasizing a non-traditional, holistic approach to a cancer patient’s physical and emotional well-being.
This foundation was formed to educate the public and doctors about the benefits of fighting cancer holistically. A Better Choice Foundation is in the process of assembling as many methodologies and practitioners as possible to form a collective voice, which will be presented to the public thus creating a massive impact.
Greenspan Concerned With Low-risk Long-term Rates
According to former Federal Reserve Chairman Alan Greenspan, "Low risk-free long-term rates worldwide seem to be one factor driving investors to reach for higher returns, thereby lowering the compensation for bearing credit risk and many other financial risks over recent years", he said in a said in an interview published on Friday by the Federal Reserve board.
"The search for yield is particularly manifest in the massive inflows of funds to private equity firms and hedge funds. These entities have been able to raise significant resources from investors who are apparently seeking above-average risk-adjusted rates of return, which, of course, can be achieved by only a minority of investors."
Greenspan also expressed his concern over, "many new hedge fund entrepreneurs....embracing a strategy of pinpointing temporary market inefficiencies, the exploitation of which is expected to yield above-average rates of return."
Greenspan concluded with, "I trust such an episode would not induce us to lose sight of the very important contributions hedge funds and new financial products have made to financial stability by increasing market liquidity and spreading financial risk, and thereby enhancing economic flexibility and resilience."
"The search for yield is particularly manifest in the massive inflows of funds to private equity firms and hedge funds. These entities have been able to raise significant resources from investors who are apparently seeking above-average risk-adjusted rates of return, which, of course, can be achieved by only a minority of investors."
Greenspan also expressed his concern over, "many new hedge fund entrepreneurs....embracing a strategy of pinpointing temporary market inefficiencies, the exploitation of which is expected to yield above-average rates of return."
Greenspan concluded with, "I trust such an episode would not induce us to lose sight of the very important contributions hedge funds and new financial products have made to financial stability by increasing market liquidity and spreading financial risk, and thereby enhancing economic flexibility and resilience."
19 Oct 2007
Hedge Funds Go For Stability
GFT UK, one of Europe's leading suppliers of innovative IT solutions is seeing hedge funds beginning to adopt business housekeeping methods in an attempt to reduce risk and improve continuity.
Having seen the assets under management in global hedge funds reach $2.48 trillion in July this year the market was positively buoyant; that was until the summer’s credit crunch which has taken its toll and seen the funds stutter through a turbulent few months.
The growth spurt, followed by a downturn, has raised some business continuity issues for hedge funds. Market and personnel changes can be very damaging for such technology and process-light companies. When fund managers leave, so does their knowledge and competencies.
These companies’ traditional lack of technical infrastructure is perhaps beginning to change. GFT has recently received an increase in request for process reviews from hedge funds. It would seem that even in these traditionally finance-driven companies, infrastructure is beginning to play a vital role.
GFT has been approached by a leading hedge fund, keen get the procedures and processes of its European Equities Team documented. GFT was selected due to previous project work and a strong knowledge of internal operations.
Having seen the assets under management in global hedge funds reach $2.48 trillion in July this year the market was positively buoyant; that was until the summer’s credit crunch which has taken its toll and seen the funds stutter through a turbulent few months.
The growth spurt, followed by a downturn, has raised some business continuity issues for hedge funds. Market and personnel changes can be very damaging for such technology and process-light companies. When fund managers leave, so does their knowledge and competencies.
These companies’ traditional lack of technical infrastructure is perhaps beginning to change. GFT has recently received an increase in request for process reviews from hedge funds. It would seem that even in these traditionally finance-driven companies, infrastructure is beginning to play a vital role.
GFT has been approached by a leading hedge fund, keen get the procedures and processes of its European Equities Team documented. GFT was selected due to previous project work and a strong knowledge of internal operations.
18 Oct 2007
Hedge Fund Hires New Members To Allocation Committee
The Portland City Council and the Multnomah County Commission recently appointed 2 new members to the Portland Children's Investment Fund Allocation Committee. They are respectively: Alissa Keny-Guyer, a consultant for foundations and nonprofits; and Adrienne Livingston, executive director of the Black United Fund of Oregon.
Both Keny-Guyer and Livingston have spent much of their professional careers devoted to improving the lives of others, especially the youngest and most vulnerable in our society.
The Children's Investment Hedge Fund annually allocates about $10 million to programs throughout Portland in areas of early childhood, after school and mentoring and child abuse prevention and intervention. A five-member Allocation Committee meets publicly to make funding decisions for the Fund.
In 2002 Portland voters passed Measure 26-33 creating the Children’s Investment Fund. The Fund provides approximately $10 million a year for five years to support 65 programs in early childhood development, after-school and mentoring and child abuse prevention and intervention. Programs annually help more than 10,000 of the city’s neediest children and their families so youth enter kindergarten prepared to succeed, stay engaged in school and safe after school and families most at risk for abuse and neglect receive support and intervention services.
Both Keny-Guyer and Livingston have spent much of their professional careers devoted to improving the lives of others, especially the youngest and most vulnerable in our society.
The Children's Investment Hedge Fund annually allocates about $10 million to programs throughout Portland in areas of early childhood, after school and mentoring and child abuse prevention and intervention. A five-member Allocation Committee meets publicly to make funding decisions for the Fund.
In 2002 Portland voters passed Measure 26-33 creating the Children’s Investment Fund. The Fund provides approximately $10 million a year for five years to support 65 programs in early childhood development, after-school and mentoring and child abuse prevention and intervention. Programs annually help more than 10,000 of the city’s neediest children and their families so youth enter kindergarten prepared to succeed, stay engaged in school and safe after school and families most at risk for abuse and neglect receive support and intervention services.
Technology Biggest Spending Area For Hedge Funds
According to a poll of over 100 top global hedge funds (and fund of funds) managers,
collectively managing some $900 billion in assets, shows that three quarters of respondents identified technology as the biggest spending area in the next two year, for 58% of funds, expenditure on risk management systems was anticipated to be the biggest proportion of that spend.
Only 13% of respondents expect to raise permanent capital in the next two years. The most popular route is deemed to be a partial sale to an external owner. The greatest interest in raising permanent capital comes, from managers in the Far East.
David Sung of Ernst & Young's Hong Kong office said: "Given that the managers in the Far East have yet to experience the maturity of businesses in the US and Europe, the idea of having more permanent capital could be appealing as a faster means of stabilizing their asset base."
Greater transparency around the valuation process is the foremost medium-to-high level regulatory challenge for 64% of respondents in the next two years; conflicts of interest (57%) and market abuse (55%) are the next key concerns. Valuation and pricing risks were also deemed the second greatest operational risk for managers.
The survey shows that the majority of funds (80%) expect incentive fees and management fees to decrease in the next two years. Almost two-thirds also identified increased operational costs as a significant future pressure on fees over the same period.
The survey was carried out by Ernst & Young in partnership with Ipsos MORI, an independent research company, across a number of leading global hedge funds, and fund of funds managers.
collectively managing some $900 billion in assets, shows that three quarters of respondents identified technology as the biggest spending area in the next two year, for 58% of funds, expenditure on risk management systems was anticipated to be the biggest proportion of that spend.
Only 13% of respondents expect to raise permanent capital in the next two years. The most popular route is deemed to be a partial sale to an external owner. The greatest interest in raising permanent capital comes, from managers in the Far East.
David Sung of Ernst & Young's Hong Kong office said: "Given that the managers in the Far East have yet to experience the maturity of businesses in the US and Europe, the idea of having more permanent capital could be appealing as a faster means of stabilizing their asset base."
Greater transparency around the valuation process is the foremost medium-to-high level regulatory challenge for 64% of respondents in the next two years; conflicts of interest (57%) and market abuse (55%) are the next key concerns. Valuation and pricing risks were also deemed the second greatest operational risk for managers.
The survey shows that the majority of funds (80%) expect incentive fees and management fees to decrease in the next two years. Almost two-thirds also identified increased operational costs as a significant future pressure on fees over the same period.
The survey was carried out by Ernst & Young in partnership with Ipsos MORI, an independent research company, across a number of leading global hedge funds, and fund of funds managers.
17 Oct 2007
Research Shows Hedge Fund Talent A Priority
According to new research 'Navigating New Complexities' published today by Ernst & Young. The world's leading hedge funds managers are more concerned about attracting and retaining talented people and managing growth than anything else.
"Governance and infrastructure are the top enablers for hedge fund growth, as the industry continues to mature and develop," said Leon Chin, partner in the Ernst & Young Toronto hedge funds practice.
The poll of over 100 top global hedge funds (and fund of funds) managers, collectively managing some $900 billion in assets, shows that retaining the right people (42%) and managing growth (39%) are the highest level challenges over the next year, compared to just 9% who anticipate investing or developing in new products. Respondents were principals, chief operating officers and chief financial officers at these funds.
Art Tully, co-leader of the global hedge funds practice at Ernst & Young, said: "The global hedge fund industry now manages $2.5 trillion of assets; $41.1 billion poured in from investors in the second quarter of 2007 alone.
The industry appears to be proving that it can handle such inflows. The ability to absorb such flows is only tested by the capacity to grow and retain talent.
Hedge funds are working just as hard as other financial institutions to ensure they attract and retain the right people. Salary packages (86%) and firm culture (83%) are the main attractions enticing the best staff to join.
The managers surveyed for this research represented some US$900 billion in funds (approximately 55% of the entire industry).
Ernst & Young has teams around the world, including North America, the UK, Cayman, Bermuda, Ireland, continental Europe, Hong Kong and Australia, who are part of our global alternative asset management practice.
"Governance and infrastructure are the top enablers for hedge fund growth, as the industry continues to mature and develop," said Leon Chin, partner in the Ernst & Young Toronto hedge funds practice.
The poll of over 100 top global hedge funds (and fund of funds) managers, collectively managing some $900 billion in assets, shows that retaining the right people (42%) and managing growth (39%) are the highest level challenges over the next year, compared to just 9% who anticipate investing or developing in new products. Respondents were principals, chief operating officers and chief financial officers at these funds.
Art Tully, co-leader of the global hedge funds practice at Ernst & Young, said: "The global hedge fund industry now manages $2.5 trillion of assets; $41.1 billion poured in from investors in the second quarter of 2007 alone.
The industry appears to be proving that it can handle such inflows. The ability to absorb such flows is only tested by the capacity to grow and retain talent.
Hedge funds are working just as hard as other financial institutions to ensure they attract and retain the right people. Salary packages (86%) and firm culture (83%) are the main attractions enticing the best staff to join.
The managers surveyed for this research represented some US$900 billion in funds (approximately 55% of the entire industry).
Ernst & Young has teams around the world, including North America, the UK, Cayman, Bermuda, Ireland, continental Europe, Hong Kong and Australia, who are part of our global alternative asset management practice.
16 Oct 2007
Federal Reserve moves to stop Credit Crunch
In September, according to the Credit Suisse/Tremont Hedge Fund Index, the U.S. Federal Reserve moved to stop the spreading Credit Crunch from further impacting the global economy with a half-percentage-point cut in interest rates.
Overall, the market environment has led to the majority of hedge fund sectors ending September on a positive note. In particular, the Managed Futures sector benefited with a 5.13% return as the market rebounded and volatility rose, leaving managers with a positive opportunity set.
The cut sought to ease terms on direct loans from its discount window in hopes banks would use the Fed's cash to restore liquidity to the credit markets. The interest rate cuts sparked a rally in global stock markets as investor fears were somewhat quelled, said Oliver Schupp. "However, the rate cut also led to a sharp fall by the U.S. Dollar and the rise of long-term Treasury-bond yields and oil prices, which could potentially foster inflationary pressures."
The Index is constructed using the Credit Suisse/Tremont database of more than 5,000 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds. The Index is calculated as a total return index on a monthly basis, adjusted for asset in- and outflow, including a reselection according to the procedure outlined above on a quarterly basis.
Overall, the market environment has led to the majority of hedge fund sectors ending September on a positive note. In particular, the Managed Futures sector benefited with a 5.13% return as the market rebounded and volatility rose, leaving managers with a positive opportunity set.
The cut sought to ease terms on direct loans from its discount window in hopes banks would use the Fed's cash to restore liquidity to the credit markets. The interest rate cuts sparked a rally in global stock markets as investor fears were somewhat quelled, said Oliver Schupp. "However, the rate cut also led to a sharp fall by the U.S. Dollar and the rise of long-term Treasury-bond yields and oil prices, which could potentially foster inflationary pressures."
The Index is constructed using the Credit Suisse/Tremont database of more than 5,000 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds. The Index is calculated as a total return index on a monthly basis, adjusted for asset in- and outflow, including a reselection according to the procedure outlined above on a quarterly basis.
11 Oct 2007
Robeco Bank Bought By Kaupthing Bank Luxembourg S.A.
Private banking and alternative asset manager Robeco Bank of Belgium was purchased by Kaupthing Bank of Luxembourg, it was announced today.
Robeco was established in Rotterdam in 1929, and has EUR 142 billion ($201.5 billion) in assets under management (as of 31 December 2006). Their product range runs from equity and fixed-income investments, to money-market and real-estate funds and alternative investments, such as private equity, hedge funds and structured products.
George Möller, Chief Excecutive Officer of Robeco said, "The Belgian market has evolved enormously over these last years with most banks now operating an `open architecture´. They are increasingly incorporating the financial products of other specialist banks -including Robeco-. This opening up enables us to focus on third party distribution and on the institutional market in Belgium."
Magnus Gudmundsson, Managing Director of Kaupthing Bank Luxembourg said, "Robeco Bank Belgium represents an excellent strategic fit forKaupthing Bank in terms of geographic diversification, products and business culture. This acquisition is a logical step in building up Private Banking offerings in the Benelux countries. By taking over the activities of Robeco Bank Belgium we become immediately operational in Belgium and will have a platform for further growth".
Robeco has offices in Bahrain, Belgium, Germany, France, Japan, Luxembourg, Poland, Spain, the United States and Switzerland. Robeco has a bank license in Belgium, France and the Netherlands.
Robeco was established in Rotterdam in 1929, and has EUR 142 billion ($201.5 billion) in assets under management (as of 31 December 2006). Their product range runs from equity and fixed-income investments, to money-market and real-estate funds and alternative investments, such as private equity, hedge funds and structured products.
George Möller, Chief Excecutive Officer of Robeco said, "The Belgian market has evolved enormously over these last years with most banks now operating an `open architecture´. They are increasingly incorporating the financial products of other specialist banks -including Robeco-. This opening up enables us to focus on third party distribution and on the institutional market in Belgium."
Magnus Gudmundsson, Managing Director of Kaupthing Bank Luxembourg said, "Robeco Bank Belgium represents an excellent strategic fit forKaupthing Bank in terms of geographic diversification, products and business culture. This acquisition is a logical step in building up Private Banking offerings in the Benelux countries. By taking over the activities of Robeco Bank Belgium we become immediately operational in Belgium and will have a platform for further growth".
Robeco has offices in Bahrain, Belgium, Germany, France, Japan, Luxembourg, Poland, Spain, the United States and Switzerland. Robeco has a bank license in Belgium, France and the Netherlands.
Thomson Financial Invests $180 Million in TradeWeb
Thomson Financial today announced it plans to form a strategic partnership with nine of the world's leading global dealers including, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland, and UBS to drive the expansion of electronic trading using the TradeWeb platform.
Under the terms of the agreement, the dealers will invest approximately $180 million to purchase a minority stake in TradeWeb's established markets. Separately, Thomson and the dealers will fund additional investment in asset class expansion.
"This partnership is a natural step forward in the evolution of the online financial marketplace, taking us closer to the time when almost all trading is electronic," said Jim Toffey, CEO of Thomson TradeWeb. "TradeWeb is ideally positioned to seize this opportunity, and expand e-trading for our clients on one platform through organic growth and through acquisition. The end-game is to be the leading global network where markets meet."
The transaction is expected to close in the next few months, pending regulatory approval. TradeWeb will maintain its global headquarters in Jersey City, NJ. Average daily trading volume on TradeWeb exceeds $250 billion.
Thomson TradeWeb is the leading online fixed-income trading network with over 12 million trades executed and total volume surpassing $200 trillion since its inception in 1998.
Under the terms of the agreement, the dealers will invest approximately $180 million to purchase a minority stake in TradeWeb's established markets. Separately, Thomson and the dealers will fund additional investment in asset class expansion.
"This partnership is a natural step forward in the evolution of the online financial marketplace, taking us closer to the time when almost all trading is electronic," said Jim Toffey, CEO of Thomson TradeWeb. "TradeWeb is ideally positioned to seize this opportunity, and expand e-trading for our clients on one platform through organic growth and through acquisition. The end-game is to be the leading global network where markets meet."
The transaction is expected to close in the next few months, pending regulatory approval. TradeWeb will maintain its global headquarters in Jersey City, NJ. Average daily trading volume on TradeWeb exceeds $250 billion.
Thomson TradeWeb is the leading online fixed-income trading network with over 12 million trades executed and total volume surpassing $200 trillion since its inception in 1998.
10 Oct 2007
TS Capital Launches $200 Million Fund Of Hedge Funds
Alternative asset management firm ThinkStrategy Capital, today announced the launch of the TS Multi-Strategy Fund LP Class B. The TS Multi-Strategy Fund is a hedge fund-of-funds designed to generate solid returns from creative strategies while preserving capital.
With a $1 million minimum investment and $200 million in assets under management, according to the announcement, this new class is an unleveraged version of ThinkStrategy's existing TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of current investments from which TS selected the best performers.
Headquartered in New York, NY, the fund targets medium-term capital appreciation in the mid-teens per annum with controlled risk. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
The TS Multi-Strategy Fund has an initial lock up period of 12 months with quarterly returns.
With a $1 million minimum investment and $200 million in assets under management, according to the announcement, this new class is an unleveraged version of ThinkStrategy's existing TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of current investments from which TS selected the best performers.
Headquartered in New York, NY, the fund targets medium-term capital appreciation in the mid-teens per annum with controlled risk. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
The TS Multi-Strategy Fund has an initial lock up period of 12 months with quarterly returns.
Camelot Hedge Fund Launch Announced
Alternative investing consultant and director Bob Torkelund has announced the launch of a new hedge fund, Camelot Global Investments, with the initial offering period running throughout October 2007.
Camelot Global Investment is a Global Macro Fund with a strategy of utilising global economical developments, cycles and events. Due to the investments in Futures, Camelot is able to profit from both falling and rising markets.
Analysis is founded on data from Torkelund's own researched stocks, the analysis of political and social environments, knowledge of biological facts and continuous observation, according to the statement.
State-of-the-Art trading programmes independently developed are used by an experienced team of traders, analytics and experts. Since the trading start, according to the statement, Camelot has outperformed almost all investments in different classes and performed well not correlating to the world markets.
Torkelund is Director of Global Retail Sales, Marketing & Operations for several boutique fund managers. He was also responsible for the formulation and execution of Threadneedle Investments as a serious and reliable player in Continental Europe.
Camelot Global Investment is a Global Macro Fund with a strategy of utilising global economical developments, cycles and events. Due to the investments in Futures, Camelot is able to profit from both falling and rising markets.
Analysis is founded on data from Torkelund's own researched stocks, the analysis of political and social environments, knowledge of biological facts and continuous observation, according to the statement.
State-of-the-Art trading programmes independently developed are used by an experienced team of traders, analytics and experts. Since the trading start, according to the statement, Camelot has outperformed almost all investments in different classes and performed well not correlating to the world markets.
Torkelund is Director of Global Retail Sales, Marketing & Operations for several boutique fund managers. He was also responsible for the formulation and execution of Threadneedle Investments as a serious and reliable player in Continental Europe.
9 Oct 2007
Tokyo Stock Exchange Has Strong Week
Stocks rose on the Tokyo Stock Exchange this week giving the Tokyo market a strong start, catching up with U.S. and other overseas counterparts.
The dollar's upswing versus the yen, which reflects receding expectations for an imminent interest rate cut by the Federal Reserve, provided an additional boost to the market, brokers said.
"The better-than-expected employment data eased worries about the U.S. economic outlook," said Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc. "But there were few domestic incentives to support the Tokyo market and turnover remained slack. So, many players chose to cash in profits before Japan's fiscal first-half earnings reporting season swings into full gear next week."
Kenichi Hirano, equity general manager at Tachibana Securities Co., pointed out that the market is vulnerable to selling as the recent upturn is providing long-awaited profit-taking opportunities to investors who bought stocks three to six months ago, before the U.S. subprime mortgage market meltdown rattled the global financial markets this summer.
"It will take some time before the market fully absorbs the profit-taking pressure," said Hirano. "But given the improving overseas market environment, the Tokyo market is certain to stay in a long-term uptrend."
Consumer loan companies Promise, Aiful and Takefuji advanced, thanks apparently to short covering by hedge funds.
Meanwhile, Nippon Steel, JFE and Sumitomo Metal Industries slipped, due to speculation that the commercialization of carbon fiber automotive parts may reduce demand for steel. The recent downturn in crude oil prices pushed down Inpex, AOC and Nippon Oil.
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The dollar's upswing versus the yen, which reflects receding expectations for an imminent interest rate cut by the Federal Reserve, provided an additional boost to the market, brokers said.
"The better-than-expected employment data eased worries about the U.S. economic outlook," said Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc. "But there were few domestic incentives to support the Tokyo market and turnover remained slack. So, many players chose to cash in profits before Japan's fiscal first-half earnings reporting season swings into full gear next week."
Kenichi Hirano, equity general manager at Tachibana Securities Co., pointed out that the market is vulnerable to selling as the recent upturn is providing long-awaited profit-taking opportunities to investors who bought stocks three to six months ago, before the U.S. subprime mortgage market meltdown rattled the global financial markets this summer.
"It will take some time before the market fully absorbs the profit-taking pressure," said Hirano. "But given the improving overseas market environment, the Tokyo market is certain to stay in a long-term uptrend."
Consumer loan companies Promise, Aiful and Takefuji advanced, thanks apparently to short covering by hedge funds.
Meanwhile, Nippon Steel, JFE and Sumitomo Metal Industries slipped, due to speculation that the commercialization of carbon fiber automotive parts may reduce demand for steel. The recent downturn in crude oil prices pushed down Inpex, AOC and Nippon Oil.
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3 Oct 2007
An American Hedge Fund Review
I like the way the book was self published under the "Bull Ship Press" name, I guess Sykes has always been a bit of a madcap entrepreneur. There is a lot of insight and honesty in "An American Hedge Fund", and Sykes has an exciting way of explaining his strategy.
This bit is pretty relevant, "Opportunities come and go. The key is to remain nimble enough to be able to take advantage of situations when they arise."
Besides being the book's official release date, Sykes also announced the closing of the Cilantro fund on October 1st, a day he said, "Will free him from the shackles of SEC regulations he will be able to detail Cilantro's complete trading history- winners and losers."
Rubinstein & Rubinstein Launch Alternative Offshore Fund
Rubinstein & Rubinstein, LLP has launched an offshore alternative investment fund practice which has seen a great deal activity in the past few months.
Taking advantage of a tax treaty between the United States and a foreign government, Rubinstein & Rubinstein established the fund in an offshore jurisdiction, reducing taxation to 1 to 2%. In addition, private placement and foreign registration allowed the fund exemption from S.E.C. and blue sky registration.
One of the fund's highlights being that Asher Rubinstein represented a principal in establishing an international co-investment fund based in New York, London and Dubai. The fund will make investments in private equity buyouts, real estate, aerospace and other sectors. It has also been capitalized by various onshore and offshore investment sources, including "sovereign wealth," i.e., investment by a foreign government.
In addition, Kenneth Rubinstein and Asher Rubinstein represented United States-based principals and foreign- based managers of an investment fund dedicated to investments in the insurance settlement industry.
Kenneth Rubinstein has also developed a proprietary tax strategy to allow tax-free access to offshore deferred compensation assets by hedge fund and private equity fund managers.
The strategy is particularly timely, given the recent calls by members of the United States Congress to increase taxes on the "carried interest" portion of fund managers' compensation. Rubinstein & Rubinstein's tax patent application for this strategy is currently pending before the United States Patent and Trademark Office.
Taking advantage of a tax treaty between the United States and a foreign government, Rubinstein & Rubinstein established the fund in an offshore jurisdiction, reducing taxation to 1 to 2%. In addition, private placement and foreign registration allowed the fund exemption from S.E.C. and blue sky registration.
One of the fund's highlights being that Asher Rubinstein represented a principal in establishing an international co-investment fund based in New York, London and Dubai. The fund will make investments in private equity buyouts, real estate, aerospace and other sectors. It has also been capitalized by various onshore and offshore investment sources, including "sovereign wealth," i.e., investment by a foreign government.
In addition, Kenneth Rubinstein and Asher Rubinstein represented United States-based principals and foreign- based managers of an investment fund dedicated to investments in the insurance settlement industry.
Kenneth Rubinstein has also developed a proprietary tax strategy to allow tax-free access to offshore deferred compensation assets by hedge fund and private equity fund managers.
The strategy is particularly timely, given the recent calls by members of the United States Congress to increase taxes on the "carried interest" portion of fund managers' compensation. Rubinstein & Rubinstein's tax patent application for this strategy is currently pending before the United States Patent and Trademark Office.
Hedge Fund BlackRock Aquisitions Quellos Fund of Funds
Hedge fund investor BlackRock, Inc. today announced that it has completed its acquisition of the fund of funds business of Quellos Group, LLC. BlackRock is calling the combined fund of funds platform BlackRock Alternative Advisors.
Laurence D. Fink, BlackRock’s Chairman and Chief Executive Officer said, “Extreme market volatility over the past couple of months accelerated the opportunity for strategic interactions between our respective investment and risk management professionals and reinforced the value of operating on a unified, global platform."
"In addition, the market environment bolstered our belief that demand for top quality funds of funds and innovative investment solutions will continue to increase. We are excited to welcome our new colleagues and look forward to delivering the tremendous capabilities of BlackRock Alternative Advisors to our clients." Fink said.
BlackRock is one of the world’s largest publicly traded investment management firms. As of June 30, 2007, assets under management were $1.230 trillion. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East.
Laurence D. Fink, BlackRock’s Chairman and Chief Executive Officer said, “Extreme market volatility over the past couple of months accelerated the opportunity for strategic interactions between our respective investment and risk management professionals and reinforced the value of operating on a unified, global platform."
"In addition, the market environment bolstered our belief that demand for top quality funds of funds and innovative investment solutions will continue to increase. We are excited to welcome our new colleagues and look forward to delivering the tremendous capabilities of BlackRock Alternative Advisors to our clients." Fink said.
BlackRock is one of the world’s largest publicly traded investment management firms. As of June 30, 2007, assets under management were $1.230 trillion. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East.
2 Oct 2007
Alternative Investor Partners With Former Head Currency Trader at Tudor
Alternative investor Last Atlantis Capital Management and Jerry Considine, former head currency trader at Tudor Investment, have partnered to introduce LACM Foreign Exchange, Share Class W within the Last Atlantis Partners Fund.
The share class will be traded by Mr. Considine and seeks to capitalize on near-term opportunities in the global currency futures and foreign exchange markets.
The short-term, largely discretionary methodology was developed by Mr. Considine and has produced consistently non-correlated returns, according to the press release. "It combines fundamental and technical market analysis, sentiment evaluation, crowd psychology assessment, and money management to create a risk-averse investment strategy."
Irwin Berger, managing partner of Last Atlantis said, “Jerry has established an exceptional track record and reputation over the course of his career including stellar turns at Tudor and his own trading firm,.....His currency program adds another quality alternative to our Last Atlantis Partners platform.”
With the launch of this new share class, Mr. Considine continues his nearly 30-year career trading the currency markets.
Last Atlantis Capital Management (St. Thomas, USVI) develops and markets innovative alternative products. Last Atlantis Partners, LLC is master-feeder offering currently providing onshore and offshore investors access to fifteen segregated share classes with individual fund strategies incorporating proprietary and discretionary options, trend following futures, multi-strategy, macro discretionary, credit receivables, real estate financing and others.
The company was founded by managing directors Irwin Berger and Stig Ostgaard, one of the original Richard Dennis “Turtles”, and Last Atlantis Capital, LLC, a professional trading firm with highly-developed systems incubation and trading technology.
The share class will be traded by Mr. Considine and seeks to capitalize on near-term opportunities in the global currency futures and foreign exchange markets.
The short-term, largely discretionary methodology was developed by Mr. Considine and has produced consistently non-correlated returns, according to the press release. "It combines fundamental and technical market analysis, sentiment evaluation, crowd psychology assessment, and money management to create a risk-averse investment strategy."
Irwin Berger, managing partner of Last Atlantis said, “Jerry has established an exceptional track record and reputation over the course of his career including stellar turns at Tudor and his own trading firm,.....His currency program adds another quality alternative to our Last Atlantis Partners platform.”
With the launch of this new share class, Mr. Considine continues his nearly 30-year career trading the currency markets.
Last Atlantis Capital Management (St. Thomas, USVI) develops and markets innovative alternative products. Last Atlantis Partners, LLC is master-feeder offering currently providing onshore and offshore investors access to fifteen segregated share classes with individual fund strategies incorporating proprietary and discretionary options, trend following futures, multi-strategy, macro discretionary, credit receivables, real estate financing and others.
The company was founded by managing directors Irwin Berger and Stig Ostgaard, one of the original Richard Dennis “Turtles”, and Last Atlantis Capital, LLC, a professional trading firm with highly-developed systems incubation and trading technology.
Reuters Hosts Solution for Hedge Fund Trading in Singapore
Reuters and BT announced the launch of the lowest latency Proximity Hosting Solution for hedge funds trading on the Singapore Exchange Limited.
Rama Pillai, Senior Vice President of Intermediaries and Market Access at SGX said, "The Singapore Exchange is seeing an increasing demand for low-latency direct access to our markets by high-frequency traders as well as our traditional customer base. We welcome the Reuters Proximity Hosting Solution."
Edward Haddad, Managing Director, ASEAN, Reuters said, "We recognize the increasing demand for low latency feeds to meet the needs of a growing automated and programmed trading community on the Singapore Exchange. Reuters provides our clients with a complete suite of comprehensive capabilities -- from algorithmic trading tools, such as tick history, tick capture and time-stamped news, to proximity hosting to allow our customers to be first to market."
Demand for trading services that are hosted within close proximity of the exchange is increasing as institutions look to take advantage of low latency data provision and reduced time to trade execution. This enables firms to gain competitive advantage through programmed trading strategies that can consume data and execute trades more quickly.
This proximity hosting solution provides an end-to-end hosted service that is fully managed, and that also allows clients to co-locate their own applications within the Reuters data centre.
Rama Pillai, Senior Vice President of Intermediaries and Market Access at SGX said, "The Singapore Exchange is seeing an increasing demand for low-latency direct access to our markets by high-frequency traders as well as our traditional customer base. We welcome the Reuters Proximity Hosting Solution."
Edward Haddad, Managing Director, ASEAN, Reuters said, "We recognize the increasing demand for low latency feeds to meet the needs of a growing automated and programmed trading community on the Singapore Exchange. Reuters provides our clients with a complete suite of comprehensive capabilities -- from algorithmic trading tools, such as tick history, tick capture and time-stamped news, to proximity hosting to allow our customers to be first to market."
Demand for trading services that are hosted within close proximity of the exchange is increasing as institutions look to take advantage of low latency data provision and reduced time to trade execution. This enables firms to gain competitive advantage through programmed trading strategies that can consume data and execute trades more quickly.
This proximity hosting solution provides an end-to-end hosted service that is fully managed, and that also allows clients to co-locate their own applications within the Reuters data centre.
1 Oct 2007
Growth in IPOs Help European Hedge Funds Gain Ground
According to a press release, the new edition of IFSL's annual report; Financial Market Trends Europe vs. US 2007, shows that in three quarters of indicators, 14 out of 18, financial markets in Europe have been growing faster than those in the US between 2001 and 2006.
The 14 indicators showing improvement in Europe included 8 out of 9 in sectors such as private equity and hedge funds. Funds raised by European private equity companies have moved up from half of funds raised in North America in 2004 to almost equal in 2006.
European hedge fund assets moved up from 12% of US assets in 2001 to 42% in 2006. Growth in European IPOs has been even more dramatic, increasing ten times between 2002 and 2006 and were well ahead of US IPOs in 2005 and 2006.
The short term trend in indicators between 2005 and 2006 was also positive, with business in Europe improving relative to the US in 11 out of 18 activities.
The trend over a number of years demonstrates how London, as the capital for many of Europe's most important wholesale financial markets, is gaining in importance as a global financial center.
The 14 indicators showing improvement in Europe included 8 out of 9 in sectors such as private equity and hedge funds. Funds raised by European private equity companies have moved up from half of funds raised in North America in 2004 to almost equal in 2006.
European hedge fund assets moved up from 12% of US assets in 2001 to 42% in 2006. Growth in European IPOs has been even more dramatic, increasing ten times between 2002 and 2006 and were well ahead of US IPOs in 2005 and 2006.
The short term trend in indicators between 2005 and 2006 was also positive, with business in Europe improving relative to the US in 11 out of 18 activities.
The trend over a number of years demonstrates how London, as the capital for many of Europe's most important wholesale financial markets, is gaining in importance as a global financial center.
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