London-based hedge fund, Dynamic Decisions Capital Management, which operated the Cayman Islands-based Growth Premium Master fund is being investigated by the Serious Fraud Office (SFO).
The hedge fund collapsed in April this year when investors applied for it to be put into liquidation, making accusations of "gross mismanagement and misfeasance".
The Guardian reports that it is alleged that the hedge fund moved a large proportion of its assets out of equities and into asset-backed bonds that could be converted into oil. According to reports, the company then "received legal advice that raised questions relating to the counterparties to the oil sales contracts that lie behind the bonds".
Dynamic Decisions’ chairman, Dr Alberto Micalizzi, said in an interview with the Times, “The investigations are not founded, first of all. There have been complaints from investors about the delays in payment of redemptions.” He said that it was his “expectation” that investors would receive their money back in full.
12 Nov 2009
Hedge Fund Compensation on the Rise For 2010
HedgeCo News Archives - The 2010 Hedge Fund Compensation Report, released by Glocap Search LLC and HedgeWorld, shows signs that a recovery is underway. In addition to raising compensation over 2008 levels, funds have begun hiring again, the report explains.
The 2010 report shows that on average, 2009 base salaries for all investment professionals and traders were essentially flat (regardless of fund size or performance)with increases in the low single-digits.
Estimates call for 2009 cash bonuses for investment professionals (those paid in early 2010) to increase about 15% on average above suppressed 2008 levels. The highest percentage increases will go to professionals at those funds that decreased compensation the most in 2008. These bonus levels are still, on average, below 2007 levels.
The report consists of analysis of 2009 compensation paid by U.S. hedge funds including estimates for year-end cash bonuses expected to be paid for 2009.
Adam Zoia, CEO at Glocap, pointed out that in 2008, owners of hedge funds heavily subsidized employee compensation in order to keep their teams together and to help boost morale given that funds needed everyone motivated this year to dig out of the high water mark hole created from last year’s abysmal returns. This year there was some initial thought of taking back some of that subsidy from last year and paying lower bonuses than would otherwise be the norm given performance levels.
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