Hedge fund Man Investments has launched Man Vision Ltd., with structured notes investing equally in AHL, Man's flagship managed futures fund, and RMF Investment Management, the hedge fund operator's Swiss-based fund of hedge funds business targeting emerging markets and managers.
"We are seeing significant changes in world capital flows," said Peter Clarke, chief executive of Man Group plc, in a statement. "Man Vision Index Notes is an exciting gateway to access the new investment opportunities which arise. By combining AHL and RMF, Man Vision Index Notes offers access to these opportunities through a single product." The note is designed to offer high-security access to developing markets, the effect of changing demographics, climate change and future sources of energy.
AHL employs systematic, statistically based investment processes to identify inefficiencies in more than 120 markets around the world. RMF uses proprietary research to select specialist hedge fund managers in new fields to create multi-manager portfolios.
The launch of Man Vision is expected to be among the hedge fund's biggest new product launches of 2008. With a minimum investment of $50,000, the new fund will target exposure to a range of markets and investment strategies, including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.
25 Apr 2008
24 Apr 2008
Hedge Fund Chief Elected to Hedge Fund Association Board of Directors
Jay B. Howard, Portfolio Manager & Chief Investment Officer of hedge fund Leonard Asset Management (LAM), has been elected to serve on the 2008 Board of Directors for the Hedge Fund Association (HFA).
HFA is an international not-for-profit association of hedge fund managers, investors, and service providers formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds. Members of the HFA Board of Directors are elected and chosen by other HFA members. As one of the HFA Directors, Howard will endeavor to further the HFA mission by increasing awareness of the HFA within the hedge fund community.
Howard is the founder of the alternative investment practice at LAM, his career in the investment and finance industry spans over ten years. He graduated with honors from the University of Dallas with a master’s degree in business administration and graduated cum laude from Augustana College in Rock Island, IL with a bachelor’s degree in accounting. He is an affiliate member of the CFA Institute, a member of the Financial Services Institute, and is a Registered Financial Consultant (RFC™). Active in the industry, he regularly attends and has spoken at alternative investment industry events.
Leonard Asset Management, Inc. is an SEC Registered Investment Advisor that specializes in alternative investments. LAM is under common ownership with Leonard & Company, a federally registered securities broker-dealer and an SEC Registered Investment Advisor. Founded in 1989, Leonard & Company is a regional investment firm providing full service brokerage services, with offices across Michigan in Birmingham, Grand Rapids, Grosse Pointe Farms, Sterling Heights, Troy, and in New York and Colorado.
HFA is an international not-for-profit association of hedge fund managers, investors, and service providers formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds. Members of the HFA Board of Directors are elected and chosen by other HFA members. As one of the HFA Directors, Howard will endeavor to further the HFA mission by increasing awareness of the HFA within the hedge fund community.
Howard is the founder of the alternative investment practice at LAM, his career in the investment and finance industry spans over ten years. He graduated with honors from the University of Dallas with a master’s degree in business administration and graduated cum laude from Augustana College in Rock Island, IL with a bachelor’s degree in accounting. He is an affiliate member of the CFA Institute, a member of the Financial Services Institute, and is a Registered Financial Consultant (RFC™). Active in the industry, he regularly attends and has spoken at alternative investment industry events. Leonard Asset Management, Inc. is an SEC Registered Investment Advisor that specializes in alternative investments. LAM is under common ownership with Leonard & Company, a federally registered securities broker-dealer and an SEC Registered Investment Advisor. Founded in 1989, Leonard & Company is a regional investment firm providing full service brokerage services, with offices across Michigan in Birmingham, Grand Rapids, Grosse Pointe Farms, Sterling Heights, Troy, and in New York and Colorado.
Missouri Attorney General Seeks To Halt Hedge Fund ‘Gambling On Grain’
Missouri Attorney General Jay Nixon is urging the Commodity Futures Trading Commission (CFTC), the federal agency that regulates futures markets, to take action to protect consumers and farmers by reducing the influence of pension funds, hedge funds, and other futures speculators.
"Farming already brings enough uncertainty without the introduction of outside players into the sensitive markets in which farmers sell their goods," said Nixon in a letter to CFTC Chairman Walter Lukken. "I urge the CFTC to step in and reduce the influence of speculators and give farmers the benefit of the bargained-for price on these contracts."
He asked to put a halt to price manipulation, as, "Farmers are not getting the full benefit of their hard work, and consumers are experiencing sticker shock in the cereal aisle," Nixon said. "Much of this is because speculators, who are neither producers nor consumers, are manipulating prices, and they are the primary beneficiaries. Wall Street gambling on grain hasn't had a positive impact on Main Street, Missouri."
According to Nixon's letter, many Missouri farmers sell their commodities on futures contracts, which require them to deliver a quantity of goods on a particular date. These contracts have a fixed price and protect farmers from fluctuations in market prices between planting time and harvest time.
In recent years, however, pension funds, hedge funds, and other speculators have flooded commodities markets by buying futures contracts. Unlike other commodities buyers, speculators use these contracts as a way to game the market and do not actually receive the commodities they contract for.
The CFTC is holding a roundtable discussion on this and other issues today, and Nixon's letter will be included in the agency's record. The CTFC was created by Congress in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the U.S.
Alex Akesson
Editor for HedgeCo LLC
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. For more information, visit www.hedgeconetworks.com
"Farming already brings enough uncertainty without the introduction of outside players into the sensitive markets in which farmers sell their goods," said Nixon in a letter to CFTC Chairman Walter Lukken. "I urge the CFTC to step in and reduce the influence of speculators and give farmers the benefit of the bargained-for price on these contracts."
He asked to put a halt to price manipulation, as, "Farmers are not getting the full benefit of their hard work, and consumers are experiencing sticker shock in the cereal aisle," Nixon said. "Much of this is because speculators, who are neither producers nor consumers, are manipulating prices, and they are the primary beneficiaries. Wall Street gambling on grain hasn't had a positive impact on Main Street, Missouri."
According to Nixon's letter, many Missouri farmers sell their commodities on futures contracts, which require them to deliver a quantity of goods on a particular date. These contracts have a fixed price and protect farmers from fluctuations in market prices between planting time and harvest time.
In recent years, however, pension funds, hedge funds, and other speculators have flooded commodities markets by buying futures contracts. Unlike other commodities buyers, speculators use these contracts as a way to game the market and do not actually receive the commodities they contract for.
The CFTC is holding a roundtable discussion on this and other issues today, and Nixon's letter will be included in the agency's record. The CTFC was created by Congress in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the U.S.
Alex Akesson
Editor for HedgeCo LLC
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. For more information, visit www.hedgeconetworks.com
Emerging Makets to Showcase Islamic Finance Initiatives in IFSB Summit
Malaysia, Singapore and Hong Kong are participating in the country showcases which will be held prior to the 5th Islamic Financial Services Board (IFSB) summit, on 12th May 2008 in Amman, Jordan.
The country showcases are part of this annual summit hosted by the Central Bank of Jordan. The summit will be held under the Royal Patronage of Her Majesty Queen Rania Al-Abdullah, themed 'Financial Globalisation and Islamic Financial Services'.
Professor Rifaat Ahmed Abdel Karim, IFSB's Secretary General said, "This is our second year of introducing the country showcases as a pre-summit event. The IFSB is happy to provide this platform for its member countries to showcase their individual country initiatives and policies on Islamic financial services."
The country showcases will run concurrently with another pre-summit event, namely a public hearing on two IFSB Exposure Drafts: 1) Governance for Islamic Collective Investment Schemes and 2) Capital Adequacy Requirements for Sukuk Securitisation and Real Estate Investment, which were issued in December 2007 for public consultation as part of the IFSB due process for preparing its standards and guidelines.
The IFSB is an international organisation that promotes the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors.
The IFSB currently has 164 members comprising 41 banking, securities and insurance regulatory and supervisory authorities, 6 international inter-governmental organisations and 117 market players and professional firms from over 31 jurisdictions.
The country showcases are part of this annual summit hosted by the Central Bank of Jordan. The summit will be held under the Royal Patronage of Her Majesty Queen Rania Al-Abdullah, themed 'Financial Globalisation and Islamic Financial Services'.
Professor Rifaat Ahmed Abdel Karim, IFSB's Secretary General said, "This is our second year of introducing the country showcases as a pre-summit event. The IFSB is happy to provide this platform for its member countries to showcase their individual country initiatives and policies on Islamic financial services."
The country showcases will run concurrently with another pre-summit event, namely a public hearing on two IFSB Exposure Drafts: 1) Governance for Islamic Collective Investment Schemes and 2) Capital Adequacy Requirements for Sukuk Securitisation and Real Estate Investment, which were issued in December 2007 for public consultation as part of the IFSB due process for preparing its standards and guidelines.
The IFSB is an international organisation that promotes the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors.
The IFSB currently has 164 members comprising 41 banking, securities and insurance regulatory and supervisory authorities, 6 international inter-governmental organisations and 117 market players and professional firms from over 31 jurisdictions.
23 Apr 2008
Connecticut Hedge Fund Association Member Joins Bracewell & Giuliani
Bracewell & Giuliani LLP has appointed hedge fund specialist John A. Brunjes as partner in their Private Investment Funds practice.
“Connecticut is home to hundreds of hedge, private equity and other alternative investment funds, as well as a number of the country's largest institutional investors,” said Evan Flaschen, the Connecticut-based chair of the firm’s Financial Restructuring Group. “John is a leader in the hedge fund community and a great addition to our highly-regarded private investment funds practice in New York and our premier national and international financial restructuring practice,” added Mr. Flaschen.
Brunjes is to handle law matters for institutional and individual investors, investment funds, and fund managers, as well as for public and private operating companies. His practice focuses on private equity, venture capital and hedge fund formation, operations, and investment transactions, with particular emphasis on advising private domestic and offshore pooled investment funds and managed accounts and their stakeholders. He also advises funds and operating companies on state, federal, and international compliance and enforcement considerations.
In the managed funds sector, Brunjes has formed and represents institutionally-sponsored and entrepreneur-organized hedge funds ranging in size from smaller funds with state-registered advisers, to larger domestic and international funds and funds of funds with billions of dollars in assets under management.
Brunjes has served as an Assistant Attorney General in the Finance and Antitrust Divisions under Connecticut Attorney General Richard Blumenthal, during which time he was Connecticut’s primary securities enforcement lawyer.
Bracewell & Giuliani LLP is a prominent international law firm with more than 400 lawyers in Texas, New York, Washington, DC, Connecticut, Dubai, Kazakhstan and London.
“Connecticut is home to hundreds of hedge, private equity and other alternative investment funds, as well as a number of the country's largest institutional investors,” said Evan Flaschen, the Connecticut-based chair of the firm’s Financial Restructuring Group. “John is a leader in the hedge fund community and a great addition to our highly-regarded private investment funds practice in New York and our premier national and international financial restructuring practice,” added Mr. Flaschen.
Brunjes is to handle law matters for institutional and individual investors, investment funds, and fund managers, as well as for public and private operating companies. His practice focuses on private equity, venture capital and hedge fund formation, operations, and investment transactions, with particular emphasis on advising private domestic and offshore pooled investment funds and managed accounts and their stakeholders. He also advises funds and operating companies on state, federal, and international compliance and enforcement considerations.
In the managed funds sector, Brunjes has formed and represents institutionally-sponsored and entrepreneur-organized hedge funds ranging in size from smaller funds with state-registered advisers, to larger domestic and international funds and funds of funds with billions of dollars in assets under management.
Brunjes has served as an Assistant Attorney General in the Finance and Antitrust Divisions under Connecticut Attorney General Richard Blumenthal, during which time he was Connecticut’s primary securities enforcement lawyer.
Bracewell & Giuliani LLP is a prominent international law firm with more than 400 lawyers in Texas, New York, Washington, DC, Connecticut, Dubai, Kazakhstan and London.
Hedge Funds Care Announces Benefit Gala
The Midwest Chapter of Hedge Funds Care (HFC) announced its sixth annual benefit, “Open Your Heart to the Children”. Organizers of the black tie gala hope to top the $900,000 which was raised at last year’s event.
More than 500 members of the alternative investments community and their guests are expected to attend this year’s benefit. They will be treated to food, music and silent and live auctions. The latter will include a lavish U.S. Open Tennis package, an “instant” wine collection comprised of more than 100 bottles of fine wine, storage and an in-home tasting party with a professional sommelier, and passage to the Hollywood premier of Will Smith’s upcoming movie “Hancock”.
One unique and special live auction item will be created before attendee’s eyes over the course of the benefit —an oil painting by noted Los Angeles artist Scott Glazier which will be taken home by one generous bidder.
“This great event, with all of the very attractive auction items, will raise much needed funds to support children who are suffering from abuse and neglect which is a widespread national tragedy and a serious problem in our local communities,” said Melinda Kramer, Co-Chairperson of the HFC Midwest Chapter. “Hedge Funds Care is doing its part to help children in these situations and to prevent them. Our industry members are very passionate about making a difference which is demonstrated by their generous donation of money, time and talent,” she continued.
HFC is a global organization composed of concerned alternative investment industry professionals committed to protecting children from abuse and neglect. To date, the Midwest chapter of HFC, based in Chicago, has distributed more than $2.6 million in 73 grants for the cause. HFC works with select local agencies and programs that can best serve the needs of these children. Grants are made through a rigorous process to insure that their funds have the highest impact possible.
Established in 1998, Hedge Funds Care is an alliance of concerned hedge fund industry professionals committed to protecting children from abuse and neglect. The group includes accountants, attorneys, fund managers, information providers, investors and prime brokers. The Midwest chapter, founded in 2002, has raised $2.7 million to combat child abuse and neglect throughout the Midwest region.
More than 500 members of the alternative investments community and their guests are expected to attend this year’s benefit. They will be treated to food, music and silent and live auctions. The latter will include a lavish U.S. Open Tennis package, an “instant” wine collection comprised of more than 100 bottles of fine wine, storage and an in-home tasting party with a professional sommelier, and passage to the Hollywood premier of Will Smith’s upcoming movie “Hancock”.
One unique and special live auction item will be created before attendee’s eyes over the course of the benefit —an oil painting by noted Los Angeles artist Scott Glazier which will be taken home by one generous bidder.
“This great event, with all of the very attractive auction items, will raise much needed funds to support children who are suffering from abuse and neglect which is a widespread national tragedy and a serious problem in our local communities,” said Melinda Kramer, Co-Chairperson of the HFC Midwest Chapter. “Hedge Funds Care is doing its part to help children in these situations and to prevent them. Our industry members are very passionate about making a difference which is demonstrated by their generous donation of money, time and talent,” she continued.
HFC is a global organization composed of concerned alternative investment industry professionals committed to protecting children from abuse and neglect. To date, the Midwest chapter of HFC, based in Chicago, has distributed more than $2.6 million in 73 grants for the cause. HFC works with select local agencies and programs that can best serve the needs of these children. Grants are made through a rigorous process to insure that their funds have the highest impact possible.
Established in 1998, Hedge Funds Care is an alliance of concerned hedge fund industry professionals committed to protecting children from abuse and neglect. The group includes accountants, attorneys, fund managers, information providers, investors and prime brokers. The Midwest chapter, founded in 2002, has raised $2.7 million to combat child abuse and neglect throughout the Midwest region.
22 Apr 2008
Hedge Fund Man Investments Launches Own Product
Man Investments announced the launch of Man Vision Index Notes, 'We are seeing significant changes in world capital flows,' says Man Group chief executive Peter Clarke.'
The launch centers on a capital-guaranteed hedge fund product that seeks to benefit from the key developments of the future including the growth of emerging markets, the impact of new demographics, climate change and future sources of energy, all of which the firm says offer significant return potential.
Man Vision Index Notes combines the complementary approaches of two of the group's hedge fund managers, AHL and RMF. AHL employs systematic, statistically-based investment processes to identify inefficiencies in more than 120 markets around the world, while RMF applies strategic research and innovation to select specialist hedge fund managers in new fields to create multi-manager portfolios
Man Vision targets an investment exposure of 150% of net asset value, allocating equally to AHL and RMF across a wide range of markets and investment strategies including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.
Man Vision will be open for investment from until June 3, with a possibility of extension, with a minimum subscription of $50,000 or EUR 50,000, and a maturity date of December 31, 2020.
Man Investments is one of the world's largest providers of hedge fund investments with a 25-year record in alternative investments and an estimated $75 billion under management. Part of London-listed Man Group, the firm employs some 1,600 people at its investment centres in London and Pfäffikon, Switzerland, and offices in Chicago, Hong Kong, Dubai, Dublin, Miami, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
The launch centers on a capital-guaranteed hedge fund product that seeks to benefit from the key developments of the future including the growth of emerging markets, the impact of new demographics, climate change and future sources of energy, all of which the firm says offer significant return potential.
Man Vision Index Notes combines the complementary approaches of two of the group's hedge fund managers, AHL and RMF. AHL employs systematic, statistically-based investment processes to identify inefficiencies in more than 120 markets around the world, while RMF applies strategic research and innovation to select specialist hedge fund managers in new fields to create multi-manager portfolios
Man Vision targets an investment exposure of 150% of net asset value, allocating equally to AHL and RMF across a wide range of markets and investment strategies including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.
Man Vision will be open for investment from until June 3, with a possibility of extension, with a minimum subscription of $50,000 or EUR 50,000, and a maturity date of December 31, 2020.
Man Investments is one of the world's largest providers of hedge fund investments with a 25-year record in alternative investments and an estimated $75 billion under management. Part of London-listed Man Group, the firm employs some 1,600 people at its investment centres in London and Pfäffikon, Switzerland, and offices in Chicago, Hong Kong, Dubai, Dublin, Miami, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
21 Apr 2008
UBS Reports Hedge Fund Losses
UBS issued a Shareholder Report detailing the key facts relating to the firm’s positions and losses through December 31, 2007. In the summary the Swiss bank says thats it's massive subprime losses were the result of excessive risk-taking and insufficient controls.
UBS said that three of its business units are principally to blame for the losses totaling $37.4 billion over the past nine months.
UBS pinpoints a series of failures that began with its now-defunct U.S.-based hedge fund Dillon Read Capital Management. "The closure of DRCM should have been a basis for a more comprehensive review and assessment of all subprime [debt] positions in the investment bank, and for a review of UBS's risk assessment processes in connection with the same," the bank said in the report.
Other mistakes include a short-term investment outlook and a failure to appreciate the severity of the American housing crisis early on.
UBS made the summary of its report to the Swiss banking regulator public because of pressure from Ethos Fund, an activist shareholder.
UBS said that three of its business units are principally to blame for the losses totaling $37.4 billion over the past nine months.
UBS pinpoints a series of failures that began with its now-defunct U.S.-based hedge fund Dillon Read Capital Management. "The closure of DRCM should have been a basis for a more comprehensive review and assessment of all subprime [debt] positions in the investment bank, and for a review of UBS's risk assessment processes in connection with the same," the bank said in the report.
Other mistakes include a short-term investment outlook and a failure to appreciate the severity of the American housing crisis early on.
UBS made the summary of its report to the Swiss banking regulator public because of pressure from Ethos Fund, an activist shareholder.
18 Apr 2008
UBS Teams Up With Hedge Fund Enso To Create Alternative Fund
UBS AG is teaming with $600 million hedge fund, Enso Capital Management LLC, creating UBS Enso Management LLC. The new fund will pursue alternative stock investment strategies, the companies said in a joint statement.
UBS clients qualified as institutional investors will be able to invest in the fund, UBS Enso will invest both long and short in a broad range of global equity securities. The fund's investment objective is to achieve consistent risk-adjusted returns that are uncorrelated to both general market indices and hedge fund indices, while at the same time preserving capital and minimizing downside risk and volatility.
"We are excited to be aligning Enso with the exceptional wealth management platform at UBS," said Josh Fink, CEO and Chief Investment Officer of Enso. "Partnering with UBS, a recognized leader in the management and distribution of over $100 billion in alternative investment assets, creates a unique and powerful opportunity to expand our global investor base."
The companies said portfolio managers from Enso will manage the fund's investments while UBS will oversee their activities. It said UBS Enso "will seek to identify unusual investment ideas in niche industries that may be overlooked by typical analytical methods."
Founded in 2002, Enso is an investment management firm based in New York that invests in both public and private companies globally, with over $600 million in assets under management. Roughly two-thirds of the portfolios Enso currently manages are allocated outside of North America.
UBS is present in all major financial centers worldwide. It has offices in 50 countries, employing more than 80,000 people around the world. Its shares are listed on the SWX Swiss Exchange (SWX), the New York Stock Exchange (NYSE) and the Tokyo Stock Exchange (TSE).
UBS clients qualified as institutional investors will be able to invest in the fund, UBS Enso will invest both long and short in a broad range of global equity securities. The fund's investment objective is to achieve consistent risk-adjusted returns that are uncorrelated to both general market indices and hedge fund indices, while at the same time preserving capital and minimizing downside risk and volatility.
"We are excited to be aligning Enso with the exceptional wealth management platform at UBS," said Josh Fink, CEO and Chief Investment Officer of Enso. "Partnering with UBS, a recognized leader in the management and distribution of over $100 billion in alternative investment assets, creates a unique and powerful opportunity to expand our global investor base."
The companies said portfolio managers from Enso will manage the fund's investments while UBS will oversee their activities. It said UBS Enso "will seek to identify unusual investment ideas in niche industries that may be overlooked by typical analytical methods."
Founded in 2002, Enso is an investment management firm based in New York that invests in both public and private companies globally, with over $600 million in assets under management. Roughly two-thirds of the portfolios Enso currently manages are allocated outside of North America.
UBS is present in all major financial centers worldwide. It has offices in 50 countries, employing more than 80,000 people around the world. Its shares are listed on the SWX Swiss Exchange (SWX), the New York Stock Exchange (NYSE) and the Tokyo Stock Exchange (TSE).
15 Apr 2008
Hedge Fund Bayou Group Founder Sentenced To 20 Years
U.S. District Judge Colleen McMahon has now sentenced the founder of hedge fund Bayou Group, Samuel Israel, to 20 years in prison. Daniel Marino, the former finance chief was also sentenced to 20 years back in January.
The judge said of Israel at the sentencing, "You were, in every meaning of the sense, a career criminal, you ruined lives,...Financial fraud, white-collar crimes are every bit as heinous as every other type of crime and they will be punished severely."
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.
Samuel Israel must also pay $300 million in restitution for masterminding a “ponzi scheme” in which investment returns were paid with new investors’ money. His sentence is the longest for a white-collar crime since Enron.
The co-founder James G. Marquez was also implicated in the conspiracy and was sentenced to 51 months in prison.
The judge said of Israel at the sentencing, "You were, in every meaning of the sense, a career criminal, you ruined lives,...Financial fraud, white-collar crimes are every bit as heinous as every other type of crime and they will be punished severely."
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.
Samuel Israel must also pay $300 million in restitution for masterminding a “ponzi scheme” in which investment returns were paid with new investors’ money. His sentence is the longest for a white-collar crime since Enron.
The co-founder James G. Marquez was also implicated in the conspiracy and was sentenced to 51 months in prison.
14 Apr 2008
The World's Ultra-Rich List
The Family Office Organisation has just released the 3rd Edition of "The 3300 Global Family Office Database 2008", with 1800 entries from the USA and 1240 from Europe.
The world's ultra-rich families have established these 'Family Offices' to ensure that their wealth is preserved for future generations. The annual cost to manage a Family Office can exceed $2 million. However, assets - under-management would normally exceed $500 million and well into the Billions.
Family Offices started to evolve in the late 1800s - early 1900s on the sale of major family businesses during the industrial revolution. Instead of dividing the proceeds to the family siblings at that time. European aristocratic families had similar set-ups, called Estate Offices; many are still in existence to this day. However at that time, as now, most European families were predominately major land owners.
Family Offices do not invest in the kind of retail financial products one finds on the High-Street. Like financial institutions, they invest in "High-Risk / High Return" investments and tend to retain a mixed portfolio of investments, primarily in alternative investments such as Hedge Funds, Private Equity, Bonds, Equities, Commodities (such as gold), Futures & Options and Currency Trading to justify a higher rate of return. Real estate investments and shareholdings will of course remain a key part of their portfolio.
Since 1989, The Family Office Organisation has researched the world's ultra-rich families in depth. Since 2005, this research has been more keenly focused on Family Offices for the benefit of financial institutions and fund managers across the globe.
The world's ultra-rich families have established these 'Family Offices' to ensure that their wealth is preserved for future generations. The annual cost to manage a Family Office can exceed $2 million. However, assets - under-management would normally exceed $500 million and well into the Billions.
Family Offices started to evolve in the late 1800s - early 1900s on the sale of major family businesses during the industrial revolution. Instead of dividing the proceeds to the family siblings at that time. European aristocratic families had similar set-ups, called Estate Offices; many are still in existence to this day. However at that time, as now, most European families were predominately major land owners.
Family Offices do not invest in the kind of retail financial products one finds on the High-Street. Like financial institutions, they invest in "High-Risk / High Return" investments and tend to retain a mixed portfolio of investments, primarily in alternative investments such as Hedge Funds, Private Equity, Bonds, Equities, Commodities (such as gold), Futures & Options and Currency Trading to justify a higher rate of return. Real estate investments and shareholdings will of course remain a key part of their portfolio.
Since 1989, The Family Office Organisation has researched the world's ultra-rich families in depth. Since 2005, this research has been more keenly focused on Family Offices for the benefit of financial institutions and fund managers across the globe.
11 Apr 2008
UK Hedge Fund Faces SEC Lawsuit
UK hedge fund Headstart Advisers Ltd. is facing a SEC suit alleging the hedge fund earned $198m in profits by manipulating U.S. mutual funds through late-trading and deceptive market-timing practices from 1998 through to 2003.
The suit, filed on Thursday by the Securities and Exchange Commission, is the second one this week filed against a British hedge fund for allegedly orchestrating a scheme to defraud US mutual funds.
In the civil action suit, filed in New York, the SEC said that Headstart and Najy Nasser, its then chief investment adviser, illegally profited by buying and selling mutual funds more frequently than allowed, sometimes after prices had been closed for the day.
Headstart had assets under management of at least $500m, according to the SEC filing.
The suit, filed on Thursday by the Securities and Exchange Commission, is the second one this week filed against a British hedge fund for allegedly orchestrating a scheme to defraud US mutual funds.
In the civil action suit, filed in New York, the SEC said that Headstart and Najy Nasser, its then chief investment adviser, illegally profited by buying and selling mutual funds more frequently than allowed, sometimes after prices had been closed for the day.
Headstart had assets under management of at least $500m, according to the SEC filing.
10 Apr 2008
Florida Hedge Fund Sues Citigroup
Hedge fund Falcon Strategies Two B LLC, is suing a business unit of Citigroup, accusing the financial giant of failing to disclose a change in risk, causing the West Palm Beach hedge fund to loose more than 40% of its value.
The hedge fund's law firm filed the suit in the U.S. District Court in Southern Florida on behalf of all purchasers of the hedge fund between Sept. 30, 2005 and Jan. 8, 2008. It is seeking class-action status and compensation and punitive damages.
The suit alleges Citigroup Alternative Investment LLC marketed the fund as low-risk and low-volatility, and then defrauded investors by failing to disclose its change to a far riskier investment strategy. The suit further alleges that the fund's management did so to increase income from its "exorbitant fees."
According to the suit, S&P had assigned the fund a S2 volatility rating. Ratings are given on a scale from S1 to S6, with S1 representing the lowest risk. On Jan. 8 S&P changed the rating to S5. The suit claims management had switched to riskier instruments without informing the investors.
The 18-page, four-count suit, accuses the defendants of: fraud, violations of the Florida Blue Sky Law, negligent misrepresentation and violation of the 1933 Securities Act.
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. For more information, visit www.hedgeconetworks.com
The hedge fund's law firm filed the suit in the U.S. District Court in Southern Florida on behalf of all purchasers of the hedge fund between Sept. 30, 2005 and Jan. 8, 2008. It is seeking class-action status and compensation and punitive damages.
The suit alleges Citigroup Alternative Investment LLC marketed the fund as low-risk and low-volatility, and then defrauded investors by failing to disclose its change to a far riskier investment strategy. The suit further alleges that the fund's management did so to increase income from its "exorbitant fees."
According to the suit, S&P had assigned the fund a S2 volatility rating. Ratings are given on a scale from S1 to S6, with S1 representing the lowest risk. On Jan. 8 S&P changed the rating to S5. The suit claims management had switched to riskier instruments without informing the investors.
The 18-page, four-count suit, accuses the defendants of: fraud, violations of the Florida Blue Sky Law, negligent misrepresentation and violation of the 1933 Securities Act.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
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Goodman To Raise $500 Million For Asia Fund Launch
Australia based hedge fund and global property manager, Goodman Property Investors, is raising funds for a $500 million Asia Pacific fund of funds(FoF).
The new FoF will invest in established real estate funds across Asia, it has a target annual return of 14% and will invest in the traditional office, retail and industrial sectors as well as specialist sectors such as residential.
Andrew Smith, Head of Investment Strategy and Deputy Managing Director of Goodman Property Investors said, "We are launching this product in response to increasing demand from institutional investors for exposure to real estate in the Asia Pacific region." He said, "This demand reflects both the increasing appetite for cross-border property investment, and the current performance and diversification opportunities the region now offers."
With offices in Australia, Belgium, China, Czech Republic France, Germany, Hong Kong, Hungary, Italy, Japan, New Zealand, Poland, Spain, The Netherlands and the United Kingdom, Goodman Property Investors has in excess of $13.8 billion in assets under management as of December 31.
The new FoF will invest in established real estate funds across Asia, it has a target annual return of 14% and will invest in the traditional office, retail and industrial sectors as well as specialist sectors such as residential.
Andrew Smith, Head of Investment Strategy and Deputy Managing Director of Goodman Property Investors said, "We are launching this product in response to increasing demand from institutional investors for exposure to real estate in the Asia Pacific region." He said, "This demand reflects both the increasing appetite for cross-border property investment, and the current performance and diversification opportunities the region now offers."
With offices in Australia, Belgium, China, Czech Republic France, Germany, Hong Kong, Hungary, Italy, Japan, New Zealand, Poland, Spain, The Netherlands and the United Kingdom, Goodman Property Investors has in excess of $13.8 billion in assets under management as of December 31.
9 Apr 2008
Hedge Fund Services Group Formed By RBC
RBC Capital Markets, the hedge fund arm of the Royal Bank of Canada, has formed the RBC Global Prime Services Group to provide support to hedge fund managers, mutual fund managers and institutional asset managers.
Jeremy Frommer, head of RBC Global Prime Services said, "We recognize that the lines between hedge fund and traditional institutional managers are becoming more obscure as their needs become more similar....We decided to break down silos by bringing together, under a single umbrella, everything from prime brokerage to trading technology, securities lending to capital introductions, as well as financing."
The Global Prime Services Group, which has made a substantial investment in technology this year, has seen a 20% increase in clients and a related increase in assets under management in the past six months. It has also recently launched he RBC Capital Introduction Group, the RBC Emerging Manager Allocator platform, and the RBC Global Futures & Base Metals Group.
RBC Capital Markets is the corporate and investment banking arm of the Royal Bank of Canada (RCB). Its North American platform includes a significant U.S. middle market investment banking franchise and leading equity, underwriting, sales, trading and research businesses. Bloomberg ranks the firm as one of the top 15 investment banks globally.
Jeremy Frommer, head of RBC Global Prime Services said, "We recognize that the lines between hedge fund and traditional institutional managers are becoming more obscure as their needs become more similar....We decided to break down silos by bringing together, under a single umbrella, everything from prime brokerage to trading technology, securities lending to capital introductions, as well as financing."
The Global Prime Services Group, which has made a substantial investment in technology this year, has seen a 20% increase in clients and a related increase in assets under management in the past six months. It has also recently launched he RBC Capital Introduction Group, the RBC Emerging Manager Allocator platform, and the RBC Global Futures & Base Metals Group.
RBC Capital Markets is the corporate and investment banking arm of the Royal Bank of Canada (RCB). Its North American platform includes a significant U.S. middle market investment banking franchise and leading equity, underwriting, sales, trading and research businesses. Bloomberg ranks the firm as one of the top 15 investment banks globally.
8 Apr 2008
Asia's Top Ten Hedge Funds
Asia's 10 largest hedge fund managers based on reported or estimated assets under management (AUM) as of March 31, 2007, according to a ranking by Alpha Magazine.
1. Sparx Group Co Ltd $6.7 billion
2. Value Partners Group $4.8 billion
3. Arisaig Partners $2.1 billion
4. Penta Investment Advisers $1.9 billion
5. Ward Ferry Management $1.8 billion
6. Lapp Capital $1.4 billion
7. Tree Line Investment Management $1.3 billion
8. Artradis Fund Management $1.2 billion
9. Tantallon Capital $1.1 billion
10. Asuka Asset Management $1.0 billion
1. Sparx Group Co Ltd $6.7 billion
2. Value Partners Group $4.8 billion
3. Arisaig Partners $2.1 billion
4. Penta Investment Advisers $1.9 billion
5. Ward Ferry Management $1.8 billion
6. Lapp Capital $1.4 billion
7. Tree Line Investment Management $1.3 billion
8. Artradis Fund Management $1.2 billion
9. Tantallon Capital $1.1 billion
10. Asuka Asset Management $1.0 billion
7 Apr 2008
Chada Launches Alternative Investment Division In London
European hedge fund advisor Carne Global Financial Services Group has announced the launch of alternative investment and wealth management technology and operational consultancy divisions in London.
Chief executive John Donohoe said, "The entire fund management industry - both traditional and alternative - is experiencing high demand for expertise in risk management and technology, particularly with the convergence of those industries with wealth management."
Carne said the new divisions add technology capabilities to the group's existing operational services and capitalise on its established presence within the hedge fund management industry. Carne also annonced the recruitment of Sunil Chadda and Phil Kitto.
Chadda joins Carne as head of alternative investments, he is previously of London-based financial systems consultancy Citisoft, where he was head of the hedge funds and derivatives practice for the past three years.
Kitto also joins Carne from Citisoft to lead the new global wealth management and private client division, after after a career including spells with UBS, Baring Asset Management and Mercury Asset Management.
The firm now advises more than 100 clients that oversee more than $200bn in assets, and has more than 40 staff in Dublin, London and Luxembourg, Chada offers expertise in hedge fund establishment, directorship programmes and hedge fund management operational and compliance services.
Chief executive John Donohoe said, "The entire fund management industry - both traditional and alternative - is experiencing high demand for expertise in risk management and technology, particularly with the convergence of those industries with wealth management."
Carne said the new divisions add technology capabilities to the group's existing operational services and capitalise on its established presence within the hedge fund management industry. Carne also annonced the recruitment of Sunil Chadda and Phil Kitto.
Chadda joins Carne as head of alternative investments, he is previously of London-based financial systems consultancy Citisoft, where he was head of the hedge funds and derivatives practice for the past three years.
Kitto also joins Carne from Citisoft to lead the new global wealth management and private client division, after after a career including spells with UBS, Baring Asset Management and Mercury Asset Management.
The firm now advises more than 100 clients that oversee more than $200bn in assets, and has more than 40 staff in Dublin, London and Luxembourg, Chada offers expertise in hedge fund establishment, directorship programmes and hedge fund management operational and compliance services.
3 Apr 2008
Hedge Fund Panel to Discuss Future of Advertising
A high-level panel of hedge fund experts are planing a forum to discuss and debate the state of hedge fund advertising and marketing in the alternative investment management community.
Panel-participant Phil Goldstein, the plaintiff who single-handedly defeated a plan to require hedge funds to register with the SEC, has even discussed suing the SEC on First Amendment grounds, which could lead to major changes in the industry.
The 1,600-member Managed Funds Association, represented on the panel by Benjamin Allensworth, senior legal counsel, has long advocated for a loosening of the SEC's restrictions.
Jay Gould, head of the Investment Funds Practice at Pillsbury said, "Hedge funds typically rely on provisions of the securities laws that prohibit general communications with the public, as those provisions are interpreted by the SEC, and also because legal counsel has drilled them on the need to 'fly below the radar' and keep their investment strategies solely for qualified investors."
"The panel also will discuss what hedge funds can and should do to effectively market themselves, while staying within SEC guidelines." Gould concluded.
Other forum participants are: Pillsbury's Terry Davis, who will provide a regulatory update; and Richard Dukas, president & CEO of Dukas Public Relations, which has long provided proactive publicity and media relations services to top hedge funds.
The panel is set to meet April 16th at the law offices of Pillsbury in San Francisco.
Panel-participant Phil Goldstein, the plaintiff who single-handedly defeated a plan to require hedge funds to register with the SEC, has even discussed suing the SEC on First Amendment grounds, which could lead to major changes in the industry.
The 1,600-member Managed Funds Association, represented on the panel by Benjamin Allensworth, senior legal counsel, has long advocated for a loosening of the SEC's restrictions.
Jay Gould, head of the Investment Funds Practice at Pillsbury said, "Hedge funds typically rely on provisions of the securities laws that prohibit general communications with the public, as those provisions are interpreted by the SEC, and also because legal counsel has drilled them on the need to 'fly below the radar' and keep their investment strategies solely for qualified investors."
"The panel also will discuss what hedge funds can and should do to effectively market themselves, while staying within SEC guidelines." Gould concluded.
Other forum participants are: Pillsbury's Terry Davis, who will provide a regulatory update; and Richard Dukas, president & CEO of Dukas Public Relations, which has long provided proactive publicity and media relations services to top hedge funds.
The panel is set to meet April 16th at the law offices of Pillsbury in San Francisco.
2 Apr 2008
Blackstone Creates Fund Worth Over 10 Billion
Hedge fund Blackstone Group L.P. announced the closing of Blackstone Real Estate Partners VI (BREP VI) with capital commitments totaling $10.9 billion, creating the largest real estate opportunity fund ever raised.
The new fund has more then 60 investment and asset management professionals with broad experience across most real estate categories, including hotels, office, residential, retail, and other commercial properties.
The hedge fund firm has raised a total of nine real estate funds since inception, both funds for global investing and funds with a specific focus on Western Europe, with total capital commitments of $25.7 billion
Jonathan Gray, Senior Managing Director and New York-based co-head of Blackstone's real estate group, said, "We are delighted to have this vote of confidence from our investors. We believe there should be attractive investment opportunities for this capital given the market dislocation that exists today." Chad Pike, Senior Managing Director and London-based co-head of Blackstone's real estate group added, "With this fund we will be able to enter new markets and expand Blackstone's global investment activities."
The Blackstone Group L.P. is a leading 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 funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds.
In the past several years Blackstone has completed a number of major transactions including Equity Office Properties, Hilton Hotels, CarrAmerica, Wyndham Hotels, Trizec Properties and Southern Cross / NHP. The group has completed more then 225 separate investments in North America and Europe with a total transaction value of approximately $132 billion since 1992. Most recently the group opened offices in Tokyo, Mumbai and Hong Kong to expand Blackstone's real estate business in Asia.
The new fund has more then 60 investment and asset management professionals with broad experience across most real estate categories, including hotels, office, residential, retail, and other commercial properties.
The hedge fund firm has raised a total of nine real estate funds since inception, both funds for global investing and funds with a specific focus on Western Europe, with total capital commitments of $25.7 billion
Jonathan Gray, Senior Managing Director and New York-based co-head of Blackstone's real estate group, said, "We are delighted to have this vote of confidence from our investors. We believe there should be attractive investment opportunities for this capital given the market dislocation that exists today." Chad Pike, Senior Managing Director and London-based co-head of Blackstone's real estate group added, "With this fund we will be able to enter new markets and expand Blackstone's global investment activities."
The Blackstone Group L.P. is a leading 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 funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds.
In the past several years Blackstone has completed a number of major transactions including Equity Office Properties, Hilton Hotels, CarrAmerica, Wyndham Hotels, Trizec Properties and Southern Cross / NHP. The group has completed more then 225 separate investments in North America and Europe with a total transaction value of approximately $132 billion since 1992. Most recently the group opened offices in Tokyo, Mumbai and Hong Kong to expand Blackstone's real estate business in Asia.
Former Secretary of State for Texas To Host Entreprenurial Funding Conference
Hedge fund weath manager CACH Capital Management announced that former Secretary of State for Texas and current co-founder & Chairman Honorable, Geoffrey S. Connor will be a Keynote at the Central Texas Entrepreneur Funding Symposium.
The conference provides entrepreneurs access to experts and information to educate them on how to adequately fund their businesses. His keynote address, "Texas and the Global Economy", will pull from his extensive experience with the process of investment capital procurement, providing entrepreneurs with priceless insight on their funding issues.
The event will include panel sessions as well as breakout sessions. CACH Capital Management President and CEO, Michael Hundley, will be a featured speaker sharing his insight on private equity as an alternative source of funding. Mr. Hundley, a well-regarded and award winning manager in the financial services industry, often consults early stage companies helping them become "capital ready". His expertise in institutional sales and service management extends worldwide.
Central Texas entrepreneurs are already signing up for the Funding Symposium which takes place on April 18th, at the JJ Pickle Center.
CACH Capital Management, LLC, a Texas-based global wealth management firm, manages portfolios, global hedge funds and business advisory services. Each CACH team member has been selected for the specialized expertise he brings to the firm. The human capital of CACH Capital represents over 50 years of investment experience and over 100 years of combined expertise in the business, legal and financial fields.
The conference provides entrepreneurs access to experts and information to educate them on how to adequately fund their businesses. His keynote address, "Texas and the Global Economy", will pull from his extensive experience with the process of investment capital procurement, providing entrepreneurs with priceless insight on their funding issues.
The event will include panel sessions as well as breakout sessions. CACH Capital Management President and CEO, Michael Hundley, will be a featured speaker sharing his insight on private equity as an alternative source of funding. Mr. Hundley, a well-regarded and award winning manager in the financial services industry, often consults early stage companies helping them become "capital ready". His expertise in institutional sales and service management extends worldwide.
Central Texas entrepreneurs are already signing up for the Funding Symposium which takes place on April 18th, at the JJ Pickle Center.
CACH Capital Management, LLC, a Texas-based global wealth management firm, manages portfolios, global hedge funds and business advisory services. Each CACH team member has been selected for the specialized expertise he brings to the firm. The human capital of CACH Capital represents over 50 years of investment experience and over 100 years of combined expertise in the business, legal and financial fields.
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