Russia’s strong economic growth, rapidly expanding domestic market and increasing financial market liquidity has been fuel for rapidly expanding hedge funds and specialist investors in Russia and the former Soviet Union (FSU).
One such company is the Pharos Financial Group, which now runs three hedge funds, the Pharos Russia Fund, the Pharos Small Cap Fund, and the one-of-a-kind Pharos Gas Investment Fund.
Pharos has been Moscow based since 1997, making it one of one of the oldest Russian hedge funds, positioning it well for the new Russian market of 2008. The team has over 90 years of combined Russian and Western market experience. Their hedge fund strategy is long biased with shorting capability and has been stress tested with a track record featuring high returns with lower volatility.
Prior to founding Pharos Financial Group in 1997, CEO Peter Halloran was the principal contributor toward building the CS First Boston equity and fixed income brokerage businesses in Russia and the CIS.
He has been working with the development of the Russian capital markets since their inception in 1994, bringing more than $8 billion to the markets through debt, equity and private placements. Halloran has also acted as adviser to Soros Fund Management(the largest investor in Russia to date).
John J. Papesh, marketing director for Pharo said, "Since the Western public perception is different than the reality of the Russian market, I think it would be great to set the record straight when comparing Russia to that of Brazil, India and China, especially at a time when Russia is in favor to other EMs."
The Pharos Russia Fund has been in existence since 1997, offers daily liquidity and is a multi-sector Russia and FSU fund. It has a diverse portfolio of liquid equities, and can short and use derivatives. The fund is up 20% over the past 12 months.
The Pharos Gas Investment Fund is designed to take advantage of the transformation of the gas sector in Russia and Eurasia. As the only hedge fund focused on this sector, it invests in listed equity and offers monthly liquidity. The fund is up 21% over the past 12 months.
The Pharos Small Cap Fund invests in undervalued second and third tier companies and offers monthly liquidity. The fund is up 14% over the past 12 months. Two Pharos Funds have ranked in the Top 15 hedge funds globally by Bloomberg and in the Top 10 by Eurohedge.
30 Jan 2008
Hedge Fund Finance Chief Sentenced To 20 Years
U.S. District Judge Colleen McMahon said of Daniel Marino, the former finance chief of the bankrupt hedge-fund firm Bayou Group LLC, "You are as much a career criminal as any mobster or any drug kingpin." The Judge then sentenced him to 20 years in prison.
His prison time will be followed by three years of supervised release. Restitution will be determined at a later date, but the judge said it likely will be in the amount of hundreds of millions of dollars.
Hedge fund founder Samuel Israel III and finance chief Daniel Marino pleaded guilty in 2005 to using fake results and a phony auditing firm. Investors lost approximately $400 million according to court papers, but the government put the loss at over $450 million.
The co-founder James G. Marquez was also implicated in the conspiracy and was sentenced to 51 months in prison. Israel is awaiting sentencing.
"I am truly sorry," Marino said.
His prison time will be followed by three years of supervised release. Restitution will be determined at a later date, but the judge said it likely will be in the amount of hundreds of millions of dollars.
Hedge fund founder Samuel Israel III and finance chief Daniel Marino pleaded guilty in 2005 to using fake results and a phony auditing firm. Investors lost approximately $400 million according to court papers, but the government put the loss at over $450 million.
The co-founder James G. Marquez was also implicated in the conspiracy and was sentenced to 51 months in prison. Israel is awaiting sentencing.
"I am truly sorry," Marino said.
29 Jan 2008
SEC Comissioner Says Hedge Funds May Help Solve Market Turmoil
SEC Commissioner Paul Atkins recommended that European and US regulators should learn from each other’s approach to regulating hedge funds, particularly as the hedge fund industry became more international. Atkins said he also expects hedge funds to help solve the market turmoil surrounding sub-prime US mortgage loans.
The Comissioner resisted the agency’s efforts to become involved with hedge funds since he joined the SEC as a commissioner in 2002, the Republican has also questioned the agency’s practice of not allowing hedge funds to market themselves to the general public.
"Most importantly, we must remember that hedge funds are likely to be an important part of the solution to the sub-prime crisis," he told French business school Edhec that, as far as he was able to see, hedge funds could not be blamed for the sub-prime problems.
"Hedge funds and other shareholder activists may have created a negative impression by pursuing their own self-serving agenda at times. This problem may be exacerbated by 'empty voting' and similar practices that are based on decoupling voting rights from economic interests. This is why good disclosure is so important in this area." Atkins also warned that, while shareholder activists can play a valuable role in corporate governance, they will be acting in their own interests and these will not necessarily be the same as the interests of their fellow shareholders.
The Comissioner resisted the agency’s efforts to become involved with hedge funds since he joined the SEC as a commissioner in 2002, the Republican has also questioned the agency’s practice of not allowing hedge funds to market themselves to the general public.
"Most importantly, we must remember that hedge funds are likely to be an important part of the solution to the sub-prime crisis," he told French business school Edhec that, as far as he was able to see, hedge funds could not be blamed for the sub-prime problems.
"Hedge funds and other shareholder activists may have created a negative impression by pursuing their own self-serving agenda at times. This problem may be exacerbated by 'empty voting' and similar practices that are based on decoupling voting rights from economic interests. This is why good disclosure is so important in this area." Atkins also warned that, while shareholder activists can play a valuable role in corporate governance, they will be acting in their own interests and these will not necessarily be the same as the interests of their fellow shareholders.
Indian Policymakers Looking At Hedge Funds To Neutralize Rupee Appreciation
India has been looking to hedge funds and loans since this year's decline began in industrial growth from 11% a year ago to 9.5% in the first half of 2007-08, coupled with a fall in the expansion of India's exports demanded the rationalisation of credit rates by the central banks.
The Federation of Indian Export Organisations president Ganesh Kumar Gupta requested India's policymakers to consider establishing a hedge fund to neutralize rupee appreciation along with an apportionment of low-cost dollar loans to exporters among small and medium enterprises.
"It seems that inflation has become the sole concern of the central bank," said V.N. Dhoot, president of the Associated Chambers of Commerce and Industry of India (Assocham), reacting to the central bank's monetary policy review.
He also expressed concern for the small and medium scale sector, which in the absence of funding from equity markets and competition from cheaper imports was bearing the maximum brunt of a demand slowdown and cost of funds.
The Federation of Indian Export Organisations president Ganesh Kumar Gupta requested India's policymakers to consider establishing a hedge fund to neutralize rupee appreciation along with an apportionment of low-cost dollar loans to exporters among small and medium enterprises.
"It seems that inflation has become the sole concern of the central bank," said V.N. Dhoot, president of the Associated Chambers of Commerce and Industry of India (Assocham), reacting to the central bank's monetary policy review.
He also expressed concern for the small and medium scale sector, which in the absence of funding from equity markets and competition from cheaper imports was bearing the maximum brunt of a demand slowdown and cost of funds.
28 Jan 2008
Northern Trust FoHF's To Recieve Daily, Instead of Monthly Data
Northern Trust has announced the setup of a worldwide partnership with financial applications company youDevise, it will offer funds of hedge funds daily portfolio management data. Typically, funds of hedge funds ("FoHF") can only get this type of information from their administrators on a monthly basis and without nearly as much detail.
"The combined Northern Trust-HIP solution represents a tremendous step forward in management information systems for the US$1.5 trillion global fund of hedge funds industry," said Wilson Leech, head of Northern Trust's Global Fund Services group. He noted this development comes at a particularly crucial time for the industry as it faces increasing demand from institutional investors for more transparency, governance, and detailed reporting.
The HIP will be fully integrated onto Northern Trust's single, global technology platform so that FoHF clients can obtain daily information about their hedge fund holdings, current value, performance, liquidity, hedging, and a detailed breakdown of assets and transactions. The information will be accessible through Passport, Northern Trust's interactive web portal, which provides clients with secure access to account information and portfolio reports.
"As a result of this integration, funds of hedge funds will no longer have to run shadow accounting and will have online access to data which will have been fully reconciled against, and integrated with, the official month-end NAV(i)," said Peter Cherecwich, head of Global Product and Strategy for Northern Trust's asset servicing business. "This supports Northern Trust's drive to offer comprehensive asset servicing capabilities to the global fund of hedge funds industry."
"The combined Northern Trust-HIP solution represents a tremendous step forward in management information systems for the US$1.5 trillion global fund of hedge funds industry," said Wilson Leech, head of Northern Trust's Global Fund Services group. He noted this development comes at a particularly crucial time for the industry as it faces increasing demand from institutional investors for more transparency, governance, and detailed reporting.
The HIP will be fully integrated onto Northern Trust's single, global technology platform so that FoHF clients can obtain daily information about their hedge fund holdings, current value, performance, liquidity, hedging, and a detailed breakdown of assets and transactions. The information will be accessible through Passport, Northern Trust's interactive web portal, which provides clients with secure access to account information and portfolio reports.
"As a result of this integration, funds of hedge funds will no longer have to run shadow accounting and will have online access to data which will have been fully reconciled against, and integrated with, the official month-end NAV(i)," said Peter Cherecwich, head of Global Product and Strategy for Northern Trust's asset servicing business. "This supports Northern Trust's drive to offer comprehensive asset servicing capabilities to the global fund of hedge funds industry."
President Bush' Economic Stimulus Package
Stephen Horan, CFA, head of private wealth for CFA Institute, commented today on the economic stimulus package proposed by President Bush and the U.S. House of Representatives.
“What’s interesting about this proposal is the yet-to-be-determined impact it will have on the soft housing market and the durable goods sector,” said Horan. “The more than $200,000 increase in the jumbo mortgage limits is significant because it might provide some refinancing opportunities to homeowners who are finding it difficult to pay their existing mortgage. Banks, knowing that they can possibly repackage these jumbo loans and sell them back to Fannie Mae or Freddie Mac, might now be willing to refinance at lower rates.”
Horan added that “when it comes to the impact consumer spending will have on sector performance we may possibly see improvements in the consumer non-durable sectors, such as retail. However, time will tell how this plays out.”
“What’s interesting about this proposal is the yet-to-be-determined impact it will have on the soft housing market and the durable goods sector,” said Horan. “The more than $200,000 increase in the jumbo mortgage limits is significant because it might provide some refinancing opportunities to homeowners who are finding it difficult to pay their existing mortgage. Banks, knowing that they can possibly repackage these jumbo loans and sell them back to Fannie Mae or Freddie Mac, might now be willing to refinance at lower rates.”
Horan added that “when it comes to the impact consumer spending will have on sector performance we may possibly see improvements in the consumer non-durable sectors, such as retail. However, time will tell how this plays out.”
25 Jan 2008
Hedge Fund Report
There are more than 8,100 hedge funds globally managing over $1 trillion in assets today. Speculative energy trading has a strong future, but it will not be the traditional utilities and energy merchants that will create and maturate that market.
The report concludes that energy trading will now be dominated by more sophisticated and well-capitalized financial players such as hedge funds and investment banks, as well as by multinational energy companies with a global footprint. Evidence of the fund's influence on oil markets has been the 55% growth in open interest on Nymex crude, heating oil, and gasoline contracts over last year and the more volatile intraday trading moving during recent months. These market drivers are bringing greater financialization and maturation to the energy complex
Other Topics covered in this report include:
Basics of Hedge Funds
Performance and Management Fees
Hedge Funds & Energy Trading
Energy Trading Exchanges
Leading Energy-related Hedge Funds
This reports sells for $497 and can be ordered at http://energybusinessreports.com/shop/item.asp?itemid=1458&affillink=EPRW20080123
About the Publisher: "Energy Hedge Funds" is published by Energy Business Reports (www.EnergyBusinessReports.com), an energy industry think tank and leading source for energy industry information and research products. Details on all reports can be found at http://energybusinessreports.com/shop/item.asp?itemid=1458&affillink=EPRW20080123
The report concludes that energy trading will now be dominated by more sophisticated and well-capitalized financial players such as hedge funds and investment banks, as well as by multinational energy companies with a global footprint. Evidence of the fund's influence on oil markets has been the 55% growth in open interest on Nymex crude, heating oil, and gasoline contracts over last year and the more volatile intraday trading moving during recent months. These market drivers are bringing greater financialization and maturation to the energy complex
Other Topics covered in this report include:
Basics of Hedge Funds
Performance and Management Fees
Hedge Funds & Energy Trading
Energy Trading Exchanges
Leading Energy-related Hedge Funds
This reports sells for $497 and can be ordered at http://energybusinessreports.com/shop/item.asp?itemid=1458&affillink=EPRW20080123
About the Publisher: "Energy Hedge Funds" is published by Energy Business Reports (www.EnergyBusinessReports.com), an energy industry think tank and leading source for energy industry information and research products. Details on all reports can be found at http://energybusinessreports.com/shop/item.asp?itemid=1458&affillink=EPRW20080123
Six Asian FOHF Launches
3A SA, the hedge fund management division of Swiss banking group SYZ & CO, has launched six new sub-funds of its $1.3bn Luxembourg-domiciled umbrella fund SICAV, offering Asian and opportunistic fund of hedge fund strategies in US dollar, euro and Swiss franc versions.
The step is envisaged as a complement to an existing portfolio of hedge funds. The new funds are part of Alternative Capital Enhancement, an open-ended investment company (Sicav) structure that currently comprises 20 sub-funds representing various hedge fund strategies including multistrategy, arbitrage, long/short, macro and natural resources.
The surge in investment opportunities has prompted vigorous growth in the alternative investment industry in Asia, where some 1,200 hedge funds manage about $150bn in assets.
The ACE Opportunity Fund is currently invested in 17 hedge funds representing various distinct strategies: US economic slowdown (macro), rising default rate (credit), Russia/technology/gold (long/short equity), increased volatility in Asia (long volatility) and opportunistic managers.
Both new strategies are available in US dollar-, euro- and Swiss franc-denominated versions and in three share classes. Class A and B shares for private investors and discretionary asset managers require a minimum subscription of 1,000 and 10,000 dollars, euros or francs respectively, and carry a 1.5 per cent annual management fee, while Class C for institutional investors has a 5 million dollar, euro or franc minimum and a 1 per cent management fee. The performance fee for all three share classes is 7.5 per cent; all six sub-funds are open for subscription and redemption on a monthly basis.
The alternative management division of Syz & Co, 3A had total assets of more than $4bn at the end of last year.
Syz & Co specialises in asset management through three interconnected area of activity, high-level private banking offered by Banque Syz & Co, the Oyster range of investment funds and 3A as the group's alternative investment unit. The group manages CHF31bn in assets and employs 320 staff at its Geneva headquarters and offices in Zurich, Lugano, Locarno, London, Luxembourg, Nassau, Salzburg, Milan, Rome and Hong Kong.
The step is envisaged as a complement to an existing portfolio of hedge funds. The new funds are part of Alternative Capital Enhancement, an open-ended investment company (Sicav) structure that currently comprises 20 sub-funds representing various hedge fund strategies including multistrategy, arbitrage, long/short, macro and natural resources.
The surge in investment opportunities has prompted vigorous growth in the alternative investment industry in Asia, where some 1,200 hedge funds manage about $150bn in assets.
The ACE Opportunity Fund is currently invested in 17 hedge funds representing various distinct strategies: US economic slowdown (macro), rising default rate (credit), Russia/technology/gold (long/short equity), increased volatility in Asia (long volatility) and opportunistic managers.
Both new strategies are available in US dollar-, euro- and Swiss franc-denominated versions and in three share classes. Class A and B shares for private investors and discretionary asset managers require a minimum subscription of 1,000 and 10,000 dollars, euros or francs respectively, and carry a 1.5 per cent annual management fee, while Class C for institutional investors has a 5 million dollar, euro or franc minimum and a 1 per cent management fee. The performance fee for all three share classes is 7.5 per cent; all six sub-funds are open for subscription and redemption on a monthly basis.
The alternative management division of Syz & Co, 3A had total assets of more than $4bn at the end of last year.
Syz & Co specialises in asset management through three interconnected area of activity, high-level private banking offered by Banque Syz & Co, the Oyster range of investment funds and 3A as the group's alternative investment unit. The group manages CHF31bn in assets and employs 320 staff at its Geneva headquarters and offices in Zurich, Lugano, Locarno, London, Luxembourg, Nassau, Salzburg, Milan, Rome and Hong Kong.
23 Jan 2008
Turkey Investment Fund Launch
Strateji Asset Management this week announced a newly launched equity hedge fund, the VV Madaus Strategy Turkey. The new fund is Euro based with a 50.000 mimimum investment($73.000), a 1.5% management fee and a 10% performance fee.
The Luxembourg based fund is registered for sales and marketing in Germany and Austria, with signed distribution agreements with eight major banks across Germany, Austria, Luxembourg, Switzerland and other countries.
Strateji was founded in Istanbul in 1995 and has approximately $85 million in assets under management. They have partnered with Berlin based ValVeri Invest GmbH, and Munich based Madaus Capital Partners to produce this fund.
The Luxembourg based fund is registered for sales and marketing in Germany and Austria, with signed distribution agreements with eight major banks across Germany, Austria, Luxembourg, Switzerland and other countries.
Strateji was founded in Istanbul in 1995 and has approximately $85 million in assets under management. They have partnered with Berlin based ValVeri Invest GmbH, and Munich based Madaus Capital Partners to produce this fund.
22 Jan 2008
Brazilian Hedge Fund Manager AFX Acquired by $20 Trillion NY Mellon Corporation
Hedge fund manager ARX Capital Management has been acquired by The Bank of New York Mellon Corporation.
The Brazilian hedge fund manager is headquartered in Rio de Janeiro, Brazil, and specialises in multi-strategy, long/short and long only investment strategies and has more than $2.8 billion in assets under management.
Founded in 2001, the company manages 20 equity and hedge funds, in domestic and offshore versions. ARX will be integrated with BNY Mellon Asset Management Brasil with the combined business becoming one of the leading asset managers in Brasil.
Jose Alberto Tovar, CEO of ARX Capital Management, will become the head of the integrated asset management business in Brazil. "We are already seeing new business as a result of the acquisition which is testament to our teams working successfully during integration." Tovar said.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
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The Brazilian hedge fund manager is headquartered in Rio de Janeiro, Brazil, and specialises in multi-strategy, long/short and long only investment strategies and has more than $2.8 billion in assets under management.
Founded in 2001, the company manages 20 equity and hedge funds, in domestic and offshore versions. ARX will be integrated with BNY Mellon Asset Management Brasil with the combined business becoming one of the leading asset managers in Brasil.
Jose Alberto Tovar, CEO of ARX Capital Management, will become the head of the integrated asset management business in Brazil. "We are already seeing new business as a result of the acquisition which is testament to our teams working successfully during integration." Tovar said.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com
Emerging Markets Fund Of Hedge Funds Launched By Matrix
West Palm Beach (HedgeCo.Net)- Matrix announced the launch a new fund of hedge funds (FOHF), the Matrix Emerging Markets Index Fund. The FOHF is designed to allow participation in the upside of emerging markets, whilst reducing downside risk. The initial offering opens on the 28th of January through the 20th of February 2007.
The FOHF is being managed by Maxam Capital Management LLC, with approximately 40 underlying hedge funds, the portfolio will be broadly diversified across emerging market regions and asset classes.
According to the predicted launch portfolio of the new fund, back tested, the FOHF would have provided total returns of 305% but with a maximum drawdown of only 9.71% over the period from the beginning of 2000 to the end of November 2007.
"The portfolio will consist of around 40 Underlying hedge funds heavily diversified across the Far East, Eastern Europe, Latin America and the Middle East and will include equities, debt, distressed securities and currency managers, " Bridget Guerin, managing director of Matrix Money Management said, "The managers in the portfolio will be able to hedge out risk via short exposure and other techniques."
The FOHF is being managed by Maxam Capital Management LLC, with approximately 40 underlying hedge funds, the portfolio will be broadly diversified across emerging market regions and asset classes.
According to the predicted launch portfolio of the new fund, back tested, the FOHF would have provided total returns of 305% but with a maximum drawdown of only 9.71% over the period from the beginning of 2000 to the end of November 2007.
"The portfolio will consist of around 40 Underlying hedge funds heavily diversified across the Far East, Eastern Europe, Latin America and the Middle East and will include equities, debt, distressed securities and currency managers, " Bridget Guerin, managing director of Matrix Money Management said, "The managers in the portfolio will be able to hedge out risk via short exposure and other techniques."
21 Jan 2008
Hedge Fund Scam Artist to be Deported
Ayferafat Yalincak, also known as "Jackie Yalincak," and "Irene Kelly," age 50, has been ordered deported to her native Turkey. Her son, Hakan Yalincak, also known as "Hagen Yalincak," age 21, also a Turkish citizen, may also be deported after he completes his 3.5 year sentence, according to officials.
The mother and son team were charged in March of 2007 with operating a multi-million dollar investment hedge fund fraud scheme. According to documents filed with the Court and statements made in court, Ayferafat Yalincak and Hakan Yalincak solicited approximately $7 million from several investors for their fake hedge fund.
The conspiracy charge carried a maximum term of imprisonment of five years and a fine of up to $250,000. She completed her prison term in November after getting credit for serving more than 14 months in prison before her sentencing. She is now in the custody of federal immigration officials.
Prosecutors say Hakan Yalincak charmed his way into the exclusive world of Greenwich high finance by posing as an heir to a wealthy Turkish family. He moved counterfeit checks and brokered deals with a Kuwaiti financier. Ayferafet Yalincak told a federal judge last year that she attended meetings with investors and allowed her son to present her as a member of an exceedingly wealthy Turkish family who was going to invest millions in his hedge fund.
Prosecutors say Ayferafet Yalincak was responsible for an intended loss of $5.3 million and an actual loss of $3.9 million after some of the money was returned to investors.
The mother and son team were charged in March of 2007 with operating a multi-million dollar investment hedge fund fraud scheme. According to documents filed with the Court and statements made in court, Ayferafat Yalincak and Hakan Yalincak solicited approximately $7 million from several investors for their fake hedge fund.
The conspiracy charge carried a maximum term of imprisonment of five years and a fine of up to $250,000. She completed her prison term in November after getting credit for serving more than 14 months in prison before her sentencing. She is now in the custody of federal immigration officials.
Prosecutors say Hakan Yalincak charmed his way into the exclusive world of Greenwich high finance by posing as an heir to a wealthy Turkish family. He moved counterfeit checks and brokered deals with a Kuwaiti financier. Ayferafet Yalincak told a federal judge last year that she attended meetings with investors and allowed her son to present her as a member of an exceedingly wealthy Turkish family who was going to invest millions in his hedge fund.
Prosecutors say Ayferafet Yalincak was responsible for an intended loss of $5.3 million and an actual loss of $3.9 million after some of the money was returned to investors.
Mutual Fund to Replicate Hedge Fund in Japan
BNP Paribas Securities announced plans to launch a mutual fund in Japan which will go after similar investment returns to those generated by hedge funds.
The mutual fund will target regional banks and other institutional investors replicating the structure and investment methods of hedge funds.
Japanese regional banks have begun to hold back on hedge fund investments since the requirements for new capital ratios mandate stricter assessment of credit risks for institutions. Since this move last year by the Bank for International Settlements, a growing number of overseas brokerages have begun offering mutual funds and other investments that replicate methods adopted by hedge funds but offer greater transparency.
A Canadian asset management company in which BNP Paribas holds a stake will oversee management of the fund. Because the fund invests in exchange-traded funds and bond futures, it offers higher liquidity and lower costs compared with individual hedge funds charging high fees, according to the Canadian firm.
The mutual fund will target regional banks and other institutional investors replicating the structure and investment methods of hedge funds.
Japanese regional banks have begun to hold back on hedge fund investments since the requirements for new capital ratios mandate stricter assessment of credit risks for institutions. Since this move last year by the Bank for International Settlements, a growing number of overseas brokerages have begun offering mutual funds and other investments that replicate methods adopted by hedge funds but offer greater transparency.
A Canadian asset management company in which BNP Paribas holds a stake will oversee management of the fund. Because the fund invests in exchange-traded funds and bond futures, it offers higher liquidity and lower costs compared with individual hedge funds charging high fees, according to the Canadian firm.
18 Jan 2008
Alternative Hedge Fund Website
Interesting site here at; Albourne Viilage.com. They have a Mayor, a Town Hall, and an entire village that you can become a resident of.
I like the set up and the alternate assumation of assignation, if you will. Anyhoo, touch base with me if you find any cool investing sites as differentially assimilated.
Also see; AdultVest.com (No connection to Alborne Village)
14 Jan 2008
SMH Capital Fined $450 K for Improper Hedge Fund Sales
The Financial Industry Regulatory Authority (FINRA) announced that it has fined a Houston company, SMH Capital Inc., $450,000 for failing to adopt adequate procedures in its prime brokerage and soft dollar services to hedge funds.
As a result, SMH made improper payments of $325,000 in soft dollars to a hedge fund manager. The firm's failures also included drafting and distributing hedge fund sales materials that did not adequately disclose material investment risks to potential hedge fund investors.
In addition to the fine, SMH was ordered to retain an Independent Consultant to conduct a comprehensive review of the adequacy of the firm's policies, systems, procedures and training with regard to its hedge fund operation.
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Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement said, "As broker-dealers increasingly provide services to hedge funds, they need to carefully tailor their supervisory systems and procedures to ensure they guard against conflicts of interest that result in securities law violations," Merrill said, "SMH's inadequate procedures resulted in the firm making soft dollar payments without a reasonable inquiry into red flags indicating the payments were improper."
FINRA, the Financial Industry Regulatory Authority, is the largest non-governmental regulator for all securities firms doing business in the United States.
In 2006, members of the public used this service to conduct more than 4.7 million searches for existing brokers or firms and requested more than 207,000 reports in cases where disclosable information existed on a broker or firm.
As a result, SMH made improper payments of $325,000 in soft dollars to a hedge fund manager. The firm's failures also included drafting and distributing hedge fund sales materials that did not adequately disclose material investment risks to potential hedge fund investors.
In addition to the fine, SMH was ordered to retain an Independent Consultant to conduct a comprehensive review of the adequacy of the firm's policies, systems, procedures and training with regard to its hedge fund operation.
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Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement said, "As broker-dealers increasingly provide services to hedge funds, they need to carefully tailor their supervisory systems and procedures to ensure they guard against conflicts of interest that result in securities law violations," Merrill said, "SMH's inadequate procedures resulted in the firm making soft dollar payments without a reasonable inquiry into red flags indicating the payments were improper."
FINRA, the Financial Industry Regulatory Authority, is the largest non-governmental regulator for all securities firms doing business in the United States.
In 2006, members of the public used this service to conduct more than 4.7 million searches for existing brokers or firms and requested more than 207,000 reports in cases where disclosable information existed on a broker or firm.
Vesuvius Hedge Fund Launch
Magma Fund Advisors, Ltd announced the launch of their first hedge fund, the Cayman domiciled Vesuvius Investment Fund, which opened its doors in January, 2008.
The new hedge fund was formed for a select group of international investors, using approximately 10% of the funds gross assets to trade S&P 500 futures contracts based on trends forecasted by Xybemomics.
With Citigroup Global Markets as prime broker, the hedge fund has a 12 month lock up period, a 2% management fee and 20% as performance fee. Vesuvius has a minimum investment of $1,000,000.
The Vesuvius Investment Fund will also, as secondary investment strategy, achieve consistent long-term capital appreciation by using approximately 90% of the hedge fund's assets to hold cash, or other risk adverse positions, in order to offset the risk associated with trading futures.
Magma Fund Advisors was founded in 2007 to secure high quality investment returns for institutional investors and high net worth individuals by applying a diverse range of investment products.
7 Jan 2008
Hedge Funds Not a `Lame Duck´ in Northern Rock Bid
Hedge funds SRM Global and RAB Capital over the weekend announced their reasons for blocking the takeover of Northern Rock, saying their bid is still a viable one.
"It is nothing like the "lame duck" that some would have you believe," said the hedge fund SRM in a statement. "Based on the company's stated guidance regarding its valuation, SRM believes that the company's book value is materially in excess of its current share price."
Major Northern Rock shareholder and fellow hedge fund RAB Capital said that it believes the bank will be able to repay the billions of pounds loaned to it by the Bank of England "with careful guidance and support of its shareholders".
SRM, with the backing of RAB Capital, is seeking support for shareholder resolutions next week that would prevent Northern Rock from selling itself or changing its capital structure without the support of shareholders.
Both SRM and RAB are in support of a bid by Olivant Partners for Northern Rock, rivaling a bid led by Richard Branson's Virgin Group.
"SRM believes that any sale of assets and/or business of the company at below its true value is detrimental to the company and to its shareholders and would inhibit a timely and complete repayment of the Bank of England facilities," the hedge fund said.
Northern Rock has been after a reasonable bid since it became a casualty in the global credit crisis this year.
"It is nothing like the "lame duck" that some would have you believe," said the hedge fund SRM in a statement. "Based on the company's stated guidance regarding its valuation, SRM believes that the company's book value is materially in excess of its current share price."
Major Northern Rock shareholder and fellow hedge fund RAB Capital said that it believes the bank will be able to repay the billions of pounds loaned to it by the Bank of England "with careful guidance and support of its shareholders".
SRM, with the backing of RAB Capital, is seeking support for shareholder resolutions next week that would prevent Northern Rock from selling itself or changing its capital structure without the support of shareholders.
Both SRM and RAB are in support of a bid by Olivant Partners for Northern Rock, rivaling a bid led by Richard Branson's Virgin Group.
"SRM believes that any sale of assets and/or business of the company at below its true value is detrimental to the company and to its shareholders and would inhibit a timely and complete repayment of the Bank of England facilities," the hedge fund said.
Northern Rock has been after a reasonable bid since it became a casualty in the global credit crisis this year.
3 Jan 2008
Dow Jones Top Hedge Fund Trades of 2007
Dow Jones Hedge Fund Trades announced in a a press release today the annual list of the best and boldest hedge fund moves.
Among the top hedge fund trades were two deals by Atticus Management, which resulted in a collective profit of nearly $1.2 billion for the firm. All told, the "Big 10" hedge fund trades garnered profits of more than $3 billion for their respective investors.
Top Trade #1: Freeport McMoran Copper & Gold
Firm: Atticus Management
Profit: $800 million
The New York-based hedge fund hit the mother lode for the second year in the row, scoring paper gains of at least $800 million through its holding in the mining giant.
Top Trade #2: MBIA Inc., Ambac Financial
Firm: Pershing Square Capital Management
Profit: $500+ million
William Ackman's longtime gamble that bond insurance companies would run into trouble finally paid off this year as mortgage loans to high-risk borrowers started going bad and credit markets stumbled.
Top Trade #3: Foster Wheeler
Firm: Tontine Partners
Profit: $426 million
Sage investments in engineering and construction companies helped cushion the Greenwich, Conn.-based firm's losses in finance and housing.
Top Trade #4: Union Pacific, Other U.S. Railroads
Firm: Atticus Management
Profit: $387 million
A counterintuitive bet in a sector that typically slows down as an economic cycle peaks paid off handsomely for Timothy Barakett's shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.
Top Trade #5: First Solar
Firm: Maverick Capital
Profit: $350+ million
After a stormy 2006, Maverick rebounded in 2007 thanks to its investments in solar and alternative energy. First Solar was one of the sector's hottest performers.
Top Trade #6: Crown Castle International, American Tower
Firm: Glenview Capital Management
Profit: $319 million
Larry Robbins' New York-based hedge fund got all the right signals when it targeted the wireless towers sector. The trades crowned a successful year that saw the firm up 24%.
Top Trade #7: CF Industries
Firm: Dawson-Herman Capital Management
Profit: $160 million
Ethanol companies suffered this year, but taking a long view of the biofuels sector helped the New York-based firm cultivate a neat return from the fertilizer company.
Top Trade #8: Onyx Pharmaceuticals
Firm: Meditor Capital Management
Profit: $155 million
Having booked some profits in Onyx at the beginning of the year, the U.K.- based firm held on to the company's shares to benefit from a further jump when its cancer drug beat analysts' estimates.
Top Trade #9: Chipotle Mexican Grill
Firm: Tremblant Capital Group
Profit: $95 million
When other firms were asking for the check, Brett Barakett went back for seconds in this fast-food chain that promises healthy fare and delivered a healthy profit for the $4 billion-plus firm.
Top Trade #10: United Therapeutics Corp.
Firm: Shunway Capital Partners
Profit: $73 million
The New York-based firm gradually increased its stake in United Therapeutics during the year, gaining big-time on good news about the company's pulmonary hypertension drug.
To ensure the accuracy of this collection to top trades, Dow Jones Hedge Fund Trades only included trades that were verified directly with fund managers or through securities filings.
Among the top hedge fund trades were two deals by Atticus Management, which resulted in a collective profit of nearly $1.2 billion for the firm. All told, the "Big 10" hedge fund trades garnered profits of more than $3 billion for their respective investors.
Top Trade #1: Freeport McMoran Copper & Gold
Firm: Atticus Management
Profit: $800 million
The New York-based hedge fund hit the mother lode for the second year in the row, scoring paper gains of at least $800 million through its holding in the mining giant.
Top Trade #2: MBIA Inc., Ambac Financial
Firm: Pershing Square Capital Management
Profit: $500+ million
William Ackman's longtime gamble that bond insurance companies would run into trouble finally paid off this year as mortgage loans to high-risk borrowers started going bad and credit markets stumbled.
Top Trade #3: Foster Wheeler
Firm: Tontine Partners
Profit: $426 million
Sage investments in engineering and construction companies helped cushion the Greenwich, Conn.-based firm's losses in finance and housing.
Top Trade #4: Union Pacific, Other U.S. Railroads
Firm: Atticus Management
Profit: $387 million
A counterintuitive bet in a sector that typically slows down as an economic cycle peaks paid off handsomely for Timothy Barakett's shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.
Top Trade #5: First Solar
Firm: Maverick Capital
Profit: $350+ million
After a stormy 2006, Maverick rebounded in 2007 thanks to its investments in solar and alternative energy. First Solar was one of the sector's hottest performers.
Top Trade #6: Crown Castle International, American Tower
Firm: Glenview Capital Management
Profit: $319 million
Larry Robbins' New York-based hedge fund got all the right signals when it targeted the wireless towers sector. The trades crowned a successful year that saw the firm up 24%.
Top Trade #7: CF Industries
Firm: Dawson-Herman Capital Management
Profit: $160 million
Ethanol companies suffered this year, but taking a long view of the biofuels sector helped the New York-based firm cultivate a neat return from the fertilizer company.
Top Trade #8: Onyx Pharmaceuticals
Firm: Meditor Capital Management
Profit: $155 million
Having booked some profits in Onyx at the beginning of the year, the U.K.- based firm held on to the company's shares to benefit from a further jump when its cancer drug beat analysts' estimates.
Top Trade #9: Chipotle Mexican Grill
Firm: Tremblant Capital Group
Profit: $95 million
When other firms were asking for the check, Brett Barakett went back for seconds in this fast-food chain that promises healthy fare and delivered a healthy profit for the $4 billion-plus firm.
Top Trade #10: United Therapeutics Corp.
Firm: Shunway Capital Partners
Profit: $73 million
The New York-based firm gradually increased its stake in United Therapeutics during the year, gaining big-time on good news about the company's pulmonary hypertension drug.
To ensure the accuracy of this collection to top trades, Dow Jones Hedge Fund Trades only included trades that were verified directly with fund managers or through securities filings.
Blackstone and Citadel looking at stakes in Australia
The Australian Financial Review reported that US hedge funds Blackstone and Citadel have both flown teams into Australia to discuss buying a stake in troubled shopping centre owner Centro Properties Group. Australian institutions including AMP, Colonial First State and listed property group DB RREEF Trust have also expressed interest in investing in the group, the newspaper said.
Centro said yesterday it is seeking expressions of interest in the potential acquisition of the entire group or its wholesale funds in Australia and the US as it desperately tries to raise funds to refinance 2.7 billion Australian dollars in short-term debt by a February 15 deadline. Another 1.2 billion dollars is due to mature in the next 12 months.
"Some pretty big and credible players are talking about injecting equity in the business," the banker was quoted as saying.
"These aren't bottom fishers. They know that if the company can sort out the the liquidity issues, the shares will be over 3 dollars. There's an enormous amount of money to be made."
Centro shares closed 3 cents or 3 percent higher at 1.04 dollars yesterday, although it traded as high as 1.24 dollars earlier in the session.
Centro shares fell from 5.70 dollars to as low as 48 cents after it announced a 3.9 billion dollar financing shortfall, cancelled its half-year to December distribution and slashed its year to June earnings guidance last month.
Centro said yesterday it is seeking expressions of interest in the potential acquisition of the entire group or its wholesale funds in Australia and the US as it desperately tries to raise funds to refinance 2.7 billion Australian dollars in short-term debt by a February 15 deadline. Another 1.2 billion dollars is due to mature in the next 12 months.
"Some pretty big and credible players are talking about injecting equity in the business," the banker was quoted as saying.
"These aren't bottom fishers. They know that if the company can sort out the the liquidity issues, the shares will be over 3 dollars. There's an enormous amount of money to be made."
Centro shares closed 3 cents or 3 percent higher at 1.04 dollars yesterday, although it traded as high as 1.24 dollars earlier in the session.
Centro shares fell from 5.70 dollars to as low as 48 cents after it announced a 3.9 billion dollar financing shortfall, cancelled its half-year to December distribution and slashed its year to June earnings guidance last month.
2 Jan 2008
South African Hedge Fund Index Returns 15.56%
The South African Times reported that their hedge Fund Index returned 15.56% over one year to November, while the month-on-month growth rate dipped by 1.67%.
Director of Clade Investment Management Gavin Goldblatt said, "The volatility in both these markets has also increased dramatically over past months....Bond markets performed considerably better, with a number of central banks raising rates, and a flight to the safety of bonds." As a result the JP Morgan Global Bond Index returned a staggering 4.10%, its highest monthly return in years, according to the paper.
Meanwhile, the Clade equity long-short index fund returned 20.17% over one year, while the offshore enhanced index fund denominated in dollars was up 7.69%, according to the newspaper. November was a very tough month for global equity markets, with the MSCI All World Index losing 4.57%, and the JSE ALSI losing 3.19%.
Goldblatt added, "However, renewed inflation fears in South Africa drove the All Bond Index down 1.55%, for a net return for the last 12 months of only 4.82%. All of Clade’s funds reported losses for the month. However, none of these losses were as large as that of equity markets, and the funds succeeded in their main objective of reducing volatility and preserving capital during difficult times." concluded Goldblatt.
Director of Clade Investment Management Gavin Goldblatt said, "The volatility in both these markets has also increased dramatically over past months....Bond markets performed considerably better, with a number of central banks raising rates, and a flight to the safety of bonds." As a result the JP Morgan Global Bond Index returned a staggering 4.10%, its highest monthly return in years, according to the paper.
Meanwhile, the Clade equity long-short index fund returned 20.17% over one year, while the offshore enhanced index fund denominated in dollars was up 7.69%, according to the newspaper. November was a very tough month for global equity markets, with the MSCI All World Index losing 4.57%, and the JSE ALSI losing 3.19%.
Goldblatt added, "However, renewed inflation fears in South Africa drove the All Bond Index down 1.55%, for a net return for the last 12 months of only 4.82%. All of Clade’s funds reported losses for the month. However, none of these losses were as large as that of equity markets, and the funds succeeded in their main objective of reducing volatility and preserving capital during difficult times." concluded Goldblatt.
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