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31 Mar 2010

BNY Mellon Named Asia's Best Hedge Fund Administrator

HedgeCo News - BNY Mellon was named Best Fund Administrator - Hedge Funds and Best in Corporate Trust for the at The Asset magazine's Triple A Transaction Banking Awards 2010.

Scooping six accolades including the title of Best Global Custodian in Asia for the third consecutive year, BNY Mellon's Corporate Trust division also walked away with the trophies for Australia, Korea and India.

"Hedge funds are increasingly turning to BNY Mellon not only because of our global strengths, but also because of our sophisticated local capabilities in the region." Andrew Gordon, Head of Alternative Investment Services for Asia at BNY Mellon, said, "They believe it is vital to choose a partner which has a long term commitment to Asia. This award underlines the strengths of our offering and shows that our focus on quality and service excellence over the last three years has paid off handsomely."

BNY Mellon has $22.3 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $12 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. Expands Hedge Fund & ETF Operations With The Acquisition Of Weston Capital Management

HedgeCo News - New York hedge fund manager,, Inc., has acquired a $1 billion hedge fund distributor based in West Palm Beach Fl., Weston Capital Management, LLC.

“With Weston Capital’s proven capability to seed new fund products, combined with its seasoned global institutional sales force, is now positioned to capture revenue streams from an array of hedge fund and actively managed ETFs.” Gregory Webster, CEO at, said.

Founded in 1993, Weston originates and markets fund of funds, single-manager hedge funds and raises capital to seed new hedge funds. In 2010, Weston Capital formed a strategic alliance for investment manager identification and fund seeding with Harcourt AG, a $4.5 billion alternative investments manager that is majority owned by Vontobel Group, the $70 billion Swiss banking group, is a leading global advisor of alternative investments for institutional investors.

Under the Harcourt strategic alliance, Weston Capital and Harcourt will seed and develop new hedge fund businesses via Weston Capital’s incubation platform. The alliance combines Weston’s extensive experience in early stage hedge fund investing and marketing with Harcourt’s proven investment expertise in global manager selection, due diligence and risk management.

Weston Capital founder Albert Hallac continues as CEO of Weston Capital, directing its day-to-day operations and business strategy. In addition, Chairman Joseph J. Bianco will become Chairman of Weston Capital. Weston Capital also has offices in London and New York City.

Since January 2004, Weston Capital’s hedge fund seeding platform (via the Weston-Atlas Partners Fund and the Weston Capital Partners Fund II) has provided sponsor capital for 13 emerging hedge fund managers. Weston intends to raise $250 million for its third incubation fund, Partners III, which will seed both hedge funds and actively managed ETFs, with Harcourt providing investment infrastructure and risk management.

30 Mar 2010

Vegas Hedge Fund Sued For $8.2 Million

HedgeCo News - Ethan Conrad, Frank Sim and Harrold Pressly, are being accused of running a bogus hedge fund, the Black Card Group. The allegations, according to Courthouse News Services, claim a family was cheated out of $8 million which the 'hedge fund managers' then spent on luxury vehicles and resort property.

Ex IBM SVP Pleads Guilty To Hedge Fund Insider Trading

Hedgeco News - Robert Moffat, Jr., a former senior executive at International Business Machines Corp. (IBM), pleaded guilty in the Manhattan federal court to conspiracy and securities fraud stemming from his involvement in the largest US hedge fund insider trading case in history. Hedge fund founder Raj Rajaratnam v. SEC.

"Moffat's guilty plea marks the 11th conviction in this ongoing insider trading investigation." U.S. Attorney Preet Bharara said Together with our partners at the FBI and the SEC, we will continue to protect the integrity of our markets by prosecuting illegal tipping by corporate professionals."

From August to October 2008, Moffat got insider information relating to IBM, Advanced Micro Devices, Inc. (AMD) and Lenovo Group Ltd. (Lenovo), according to information and statements made during the guilty plea proceedings.

Moffat confessed to providing the indider information to to Danielle Chiesi, Rajaratnam's co-defendant. She worked for New Castle Partners, an equity hedge fund group affiliated with JPMorgan Chase & Co.

The court documents reveal that in September 2008, Moffat provided Chiesi with information relating to IBM's and Lenovo's performance in the companies' respective fiscal quarters ending in September 2008.

The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million.

Moffat is scheduled to be sentenced on July 26, 2010, by Judge Buchwald.

29 Mar 2010

Australia Hedge Fund Roundtable Highlight Super Funds, Mezzanine, Retail

HedgeCo News - Opalesque launched the 28th issue in a series of regional roundtable forums, the “Opalesque 2010 Australia Roundtable”. With Matthias Knab, founder of Opalesque and internationally recognized expert on hedge funds and alternatives, moderating, the Opalesque Roundtable discussed the growth of the Aussie pension fund industry.

Leading Australian hedge funds discussed what opportunities they see for their funds and strategies going forward. Superannuation Funds explained how they select their hedge funds, and what at the moment excites seeders who work exclusively with Australian funds.

With A$1.2 trillion (US$1,1 trillion), it is now the world's fifth largest investment industry. 9% of every person’s salary in Australia getting invested into a registered superannuation (pension) fund, the country has created one of the fastest growing asset pools worldwide.

Australia has very mature wholesale and retail markets, which both offer unique opportunities for local and global hedge funds, th paper informs.

However, "Be aware of the rules and set-up of those markets." Opalesque warned "Beyond wholesale and retail, the Roundtable also explains how to access a third rapidly growing asset pool, the so-called mezzanine market which is managed by the local dealer groups."

One of the most stunning aspects of the Australian pension fund industry has been the ascent of the Self-Managed Super Funds, where the individual is managing his pension assets himself as a self-directed investor. At the smaller end, a Self-Managed Super Funds may have only $250,000 in assets, through to many millions at the high end. Within just five years, over one third of all superannuation assets have been moved into the 400,000 self-managed super funds.

The domestic Australian hedge fund industry has traditionally been a strong performer and was also able to protect the downside in the crisis of 2008, where the average Australian hedge fund lost 17.74% against the ASX which fell over 40%, the report explains.

At the same time, the global industry fell somewhere between 17% and 21%. In addition, 25% of the 200 plus managers in the Australian Fund Monitors database produced positive returns, and over 90% of them outperformed the ASX200.

The following experts participated:

Bruce Tomlinson, Portfolio Manager, Sunsuper Superannuation Fund
Adrian Redlich, Chief Investment Officer, Merricks Capital
Chris Gosselin, Founder, Australian Fund Monitors
Dominic McCormick, Chief Investment Officer, Select Asset Management
John Corr, Founder, Fortitude Capital
Larry Simon, Co-Founder, Lazorne Group
Nelson Lam, Head of Investments, Ascalon Capital Managers

The 2010 Opalesque Australia Roundtable was sponsored by Australian Fund Monitors and the Opalesque 2010 Roundtable Series sponsors Custom House Group and Taussig Capital.

26 Mar 2010

Novum Statement on FSA Insider Trading and Hedge Fund Fraud Case

HedgeCo News - The Financial Services Authority (FSA) visited the offices of independent UK securities stockbroker, Novum Securities, on the 23 March in relation to an investigation into a single member of staff, who has been with the firm since July 2009.

Novum Securities said that they have, "been cooperating fully with the investigation and will continue to do so."

In what is being called the largest insider trading crackdown in Britain’s history, an operation was carried out this week by 143 FSA personnel together with officers from the Serious Organised Crime Agency (SOCA).

A junior trader for Moore Capital was arrested at the hedge fund's office in Mayfair and an employee in Deutsche Bank’s office was also taken for questioning. All together, 6 mix men were arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.

J.P. Morgan Funds Wins Five 2010 Lipper Awards

HedgeCo News - J.P. Morgan Funds, the mutual fund arm of J.P. Morgan Asset Management has been recognized by Lipper as a best performer in five categories.

5 Year Performance

JP Morgan Core Bond Fund, Select ranked 1st out of 57 funds in the U.S. Government Funds category. With $14.7 billion in assets, this fund is managed by Douglas Swanson.

JP Morgan Research Market Neutral Fund, Institutional ranked 1st out of 23 funds in the Equity Market Neutral category. With $818 million in assets, this fund is managed by Terance Chen.

3 Year Performance

JP Morgan Core Bond Fund, Ultra ranked 1st out of 63 funds in the Intermediate U.S. Government Funds. With $14.7 billion in assets, this fund is managed by Douglas Swanson.

JP Morgan SmartRetirement 2020 Fund, Institutional ranked 1st out of 109 funds in the Mixed-Asset Target 2020 Funds category. With $405 million in assets, this fund is managed by the J.P. Morgan Global Multi-Assets Group, with Anne Lester as senior portfolio manager.

JP Morgan SmartRetirement 2030 Fund, Institutional ranked 1st out of 106 funds in the Mixed-Asset Target 2030 category. With $358 million in assets, this fund is managed by the J.P. Morgan Global Multi-Assets Group, with Anne Lester as senior portfolio manager.

"These awards clearly demonstrate the strength of our investment capabilities across all asset classes during a very challenging market cycle and over the long-term," said George Gatch, President and CEO of J.P. Morgan Funds.

J.P. Morgan Funds had a very strong year in 2009, ranking 3rd in inflows for all U.S. mutual fund companies, and is the 4th largest mutual fund firm in the U.S., with $445 billion in assets under management (as of 12/31/2009). It offers over 100 mutual fund products across the full range of asset classes, as well as separately managed accounts and retirement products.

Cayman Islands on Transparency

The Cayman Islands is concluding a further 16 tax information exchange agreements (TIEAs) with several G-20 jurisdictions of economic significance to the country, in addition to the 14 TIEAs already in place.

The Cayman Islands has also advanced its work with the Organisation for Economic Development and Cooperation (OECD) Global Forum Steering Group, particularly in reference to the recently announced peer review evaluation programme (link to OECD statement).

“The results of our negotiation programme along with the Negotiating Team’s deep involvement in helping shape international standards in tax transparency through active participation in key initiatives is commendable and has been recognised by the OECD and the global community,” said the Premier, the Honourable W. McKeeva Bush, OBE JP. “We look forward to continuing this engagement and doing our part in demonstrating the effectiveness of our transparency regimes and our expertise as a jurisdiction.”

A breakdown of the identified 16 pending TIEAs is as follows:

  • An agreement with Australia will be signed in Washington, D.C. on 30 March.
  • Agreements have been reached with 6 countries: Aruba, Canada, Germany, Italy, Mexico and South Africa. These agreements, which have been finalised from the Cayman Islands, are with the signatory countries for their authorisation process and confirmation of a signing date.
  • Negotiations are in various stages with 9 additional OECD/G-20 countries.

For the Steering Group, the Cayman Islands delegation was able to provide input, guidance and direction on the methodology and terms of reference for the peer review programme. The Cayman Islands will also be an assessor for the peer review programme and a representative from the Ministry of Finance recently participated in the assessor training, as organised by the OECD.

In addition to having input on OECD’s peer review process, the Cayman Islands has been identified in the first cohort of countries to undergo a peer review evaluation. The Financial Services Secretariat, Ministry of Finance, is leading the first phase of this process with supervisory oversight by the Negotiating Team.

This phase of the peer review involves providing comprehensive information on the implementation of Cayman’s tax transparency regimes to OECD assessors, including relevant laws, regulations and guidance notes.

The Cayman Islands is on the Organisation for Economic Cooperation and Development (OECD) ‘white list’ of jurisdictions that substantially implement international tax standards and has 14 bilateral arrangements with the following countries for the provision of tax information: Denmark, Faroe Islands, Finland, France, Greenland, Iceland, Ireland, the Netherlands, Netherlands Antilles, New Zealand, Norway, Sweden, the United States and the United Kingdom.

25 Mar 2010

Morgan Stanley Loses 6 Senior Traders To Hedge Funds

HedgeCo News - Marcin Wiszniewski, a 14 year veteran of Morgan Stanley has quit his job to join the $18.3 billion hedge fund, BlueCrest Capital Management, the Wall Street Journal Reports.

Wiszniewski joins the London hedge fund May 10, as a portfolio manager for the hedge fund’s $500 million BlueCrest Emerging Markets Fund.

Wiszniewski was co-head of European foreign exchange and emerging markets at Morgan Stanley, previous co-heads who have left Morgan Stanley include Bart Turtelboom and Karim Abdel-Motall who were hired by London hedge fund firm GLG Partners.

Wiszniewski is the fourth Morgan Stanley senior trader to leave this year, the newspaper reported. Eric Cole is moving to hedge fund Appaloosa Management. Ahsim Khan is set to join Europe’s largest hedge fund firm, Brevan Howard. Geoffroy Houlot has already left in January to join the $30 billion hedge fund, the Wall Street Journal said.

BlueCrest Capital Management LLP is founded by Michael Platt and William Reeves, both former Managing Directors and senior proprietary traders at JP Morgan, who left to establish BlueCrest in 2000. The Hedge fund is 25% owned by Man Group Holdings.

Hedge Fund Founder Sued in Atlanta

HedgeCo News - Robert L. Duncan, an Atlanta hedge fund manager is being accused of misleading investors. His fund, Seaside Partners Fund LP. is being sued by an Atlanta trust and two investment managers, the Piedmont Family Office Fund LP and West Mountain Partners LP., according to a report by the Wall Street Journal.

Duncan will appear on Friday in Fulton County Superior Court in Atlanta. His clients allege that Duncan had been faking his performance numbers and forging statements since 2006. The clients claim that Duncan confessed his fraud to them in a private meeting.

The Wall Street Journal spoke to the hedge fund manager by phone and Duncan is reported to have said he was trying to work out how to return his clients' money. "I want everyone to have their money back," said Duncan, without answering further questions.

Seaside Partners Fund has approximately $20 million in assets under management and the alleged fraud is considered to reach $4.5 million.

24 Mar 2010

London Hedge Fund Raid Update

HedgeCo News - London $14 billion hedge fund, Moore Capital Management was raided yesterday in the crackdown on insider trading, the New York Times reported.

In their first joint operation the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA) searched 16 addresses in London, seizing documents and computers from both residential and business premises.

A junior trader for Moore Capital was arrested at the hedge fund's office in Mayfair and an employee in Deutsche Bank’s office was also taken for questioning the newspaper reported.

All together, 6 mix men were arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.

The FSA alleges that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.

In what is being called the largest crackdown in Britain’s history, the operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation started in late 2007.

Moore Capital said the investigation did not involve any of its own funds and that it was cooperating with authorities.

23 Mar 2010

Volunteer Day: Hedge Funds for Habitat - NYC

HedgeCo News - The initiative by the hedge fund community, Hedge Funds for Habitat-NYC is hosting a volunteer day on April 2nd. For a minimum contribution of $500, members of the alternative investment community are invited to join their peers on Good Friday and help the group on their latest green project.

Hedge Funds for Habitat-NYC is currently building a 41-unit affordable condominium building on Atlantic in Brooklyn made with environmentally-friendly materials, this will also be the largest multi-family building ever constructed by Habitat for Humanity anywhere in the world.

Led by Stuart Feffer, Co-Chief Executive Officer of Lacrosse Global Fund Services, Hedge Funds for Habitat-NYC is calling on supporters from hedge funds and private equity firms who recognize that there are incredible working families in NYC living in unsafe and overcrowded conditions whose life will be forever be changed with a Habitat home.

FSA Raids 16 Homes And Businesses On Suspicion Of Hedge Fund Insider Trading

In their first joint operation the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA) have this morning searched 16 addresses in London, seizing documents and computers from both residential and business premises.

Six men, including two senior professionals at leading city institutions and one city professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.

The FSA alleges that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.

The operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation that commenced in late 2007.

The FSA has so far secured five sentences of imprisonment (one suspended) in relation to insider dealing: McQuoid and Melbourne in March 2009; Matthew and Neel Uberoi in November 2009 and Malcolm Calvert on 11 March 2010.

The FSA is currently prosecuting three other insider dealing criminal cases: Andrew King, Andrew Rimmington and Michael McFall, with a trial date of 19 April 2010; Christian and Angie Littlewood and Neil Rollins, both with a trial date yet to be fixed.

22 Mar 2010

UK Bribery Bill Will Give Sharper Teeth To Global Fraud Clampdown

HedgeCo Blogs - Britain looks set to become part of the world’s biggest ever concerted attack on fraud and corruption within financial institutions.

The Bribery Bill – which now seems certain to be passed before the UK General Election – will bring Britain more into line with tough U.S. regulations, according to Complinet, one of the world’s leading suppliers of global finance solutions.

“The new laws will be the most powerful weapons yet in the fight against fraud and deception”, said Chris Pilling, Complinet’s CEO. “They will also be the first step towards worldwide co-ordination of compliance laws among regulators.”

Key parts of the Bribery Bill include making it illegal to bribe a foreign official to obtain or retain business and making it an offence if companies fail to prevent a bribe being paid by their employees or by other firms on their behalf.

Employees face jail sentences of up to ten years and companies could be hit with unlimited fines.

There had been fears that the Bill – currently making its way through the Houses of Parliament – could have been a victim of the timing of the General Election, which looks increasingly likely to be held on May 6th.

Now legislators are confident – because of widespread agreement among the political parties – that the new laws will not run into time difficulties and receive Royal Assent before the Dissolution of Parliament.

“At Complinet, we’ve seen financial companies trying hard to keep up with compliance changes, but the option for strict legal enforcement is necessary as well”, said Pilling. “The Serious Fraud Office (SFO) urgently needs the new powers contained in the Bill to deal with corruption in companies and keep Britain in line with laws which have been introduced in other countries.”

Morgan Stanley's Hedge Fund Division Raises $370 Million For Private Equity Funds

HedgeCo News - Morgan Stanley Alternative Investment Partners (AIP) raised $370 million in commitments for Morgan Stanley AIP Phoenix Global Real Estate Secondaries 2009 LP (Phoenix), a fund dedicated to acquiring secondary interests in opportunistic and value-added private equity real estate funds. The capital raised exceeded AIP's initial $250 million target.

"For the first time ever, investors in private equity real estate funds are selling significant interests in the secondary market, and as a result, we are finding tremendous opportunities to acquire high quality assets at attractive valuations," said Joseph D. Stecher, Head and Chief Investment Officer of AIP Real Estate Fund of Funds. "We are focusing on best-in-class small- to mid-size fund managers globally as we seek to capitalize on several distinct advantages of investing in the secondary market, including the ability to avoid start-up costs and fees, accelerate investment programs and shorten time for realization, and effectively value underlying asset portfolios."

The objective of Phoenix is to target off-market secondary opportunities in private equity real estate funds that have a sustainable strategy for generating superior returns across real estate cycles, an emphasis on strong real estate fundamentals and in-depth knowledge of local markets.

AIP is the fund of funds division of Morgan Stanley Investment Management. AIP manages portfolios of hedge funds, private equity funds and real estate funds for some of the world's largest institutions and high net worth individuals. AIP has offices in West Conshohocken, Pennsylvania; New York; San Francisco; Atlanta; London and Hong Kong.

Fund Of Hedge Funds ATLIN Completes $11 Million Buyback

HedgeCo News - Swiss $280m fund of hedge funds, ALTIN AG, has completed its 10% share buyback program initiated in July 2009. ALTIN repurchased 248,279 of its shares for a total of CHF 12.7 million ($11.95 million) corresponding to 5% of the share capital of ALTIN.

As of 1 Jan 2010 ALTIN was fully invested in hedge funds with 15.26% allocated to Macro strategy, 29.71% in Equity Long/Short, 2.58% in Equity long bias, 3.70% in Equity Arbitrage strategy, 3.70% in Event Driven, 3.64% in Fixed Income, 3.54% in Convertible Bonds, 13.38% in Credit Strategy, 17.32% in Multi-Strategy funds, 1.23% in Private Equity, 0.77% in Other Equity and Derivatives strategy, 1.04% in Others and 4.76% in ALTIN shares. Cash was reduced from 6.3% at the end of June 2009 to zero on 1 January 2010.

ALTIN AG is invested in approximately 40 hedge funds following various investment strategies. Its objective is to generate an absolute annual return in US dollars terms with lower volatility than equity markets. ALTIN is managed by Alternative Asset Advisors SA, a management firm specialised in alternative investments and a member of the SYZ & CO Group.

17 Mar 2010

Hedge Fund Manager Survey Finds Sentiment Moving Against Europe, in Favor of U.S.

New York ( - Investors have recovered their bullishness towards equity markets but are shifting their focus away from Europe and into the U.S. and Japan, according to the BofA Merrill Lynch Survey of Fund Managers for March.

A total of 207 fund managers, managing a total of US$589 billion, participated in the global survey from 5 March to 11 March. A total of 165 managers, managing US$403 billion, participated in the regional surveys.

After weakened sentiment in February, the survey shows that investors have restored their faith in equities with a net 46 percent of asset allocators saying they are overweight the asset class, up from 33 percent the previous month. Cash positions have fallen with respondents at a net neutral cash allocation compared with a net 12 percent underweight in February.

Asset allocators have retrenched from Europe, however. A net 21 percent are underweight European equities this month, up sharply from a net 2 percent overweight in January.

The change in favor of U.S. equities has been similar. A net 19 percent of asset allocators are overweight U.S. equities this month, up from just 1 percent in January. Japan is also regaining popularity. A net 6 percent of allocators are overweight Japanese equities, the most bullish reading since August 2007, and up from a net 10 percent underweight in January.

Global investors believe that the corporate outlook is better away from Europe. A net 40 percent of the panel says the outlook for eurozone corporate profits is the least favorable of all regions.

"Investors' concerns about Greece are easing, but European country risk remains a key constraint to optimism over economic recovery," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Research. "Investors are more willing to embrace corporate risk, via equities, than sovereign risk," said Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch Research.

The net number of European fund managers predicting growth in their own economy over the coming 12 months has fallen to 45 percent, down from 72 percent in January, according to the Regional Fund Manager Survey. While European sentiment might have been expected to weaken, a similar fall in optimism is also evident among U.S. investors. A net 43 percent forecast growth in the American economy over the next 12 months, down from a net 76 percent in January.

Investors in both regions have stronger belief in earnings growth. A net 60 percent of European respondents predict improved earnings in the coming 12 months, an increase of 11 percent on February. Their colleagues in the U.S. are more positive with a net 72 percent forecasting earnings growth, up from a net 52 percent in February.

U.S. and European investors have significantly scaled back their cash allocations. A net 9 percent of the European panel is overweight cash this month, down from 26 percent in February. The corresponding numbers for U.S. investors are a net 8 percent in March and 19 percent in February.

European respondents have increased exposure to cyclical sectors, including Basic Resources and Construction. They have reduced their underweight position on banks. US investors have also increased exposure to cyclicals, such as Industrials and Materials, but have extended their underweight positions in Banks.

16 Mar 2010

SEC Charges Texas Hedge Fund Adviser With Fraud

HedgeCo News - The SEC has filed a federal case against hedge fund advisor Stephen X. Kim and Spyglass Management, L.P. for their roles in allegedly defrauding Spyglass Capital Partners, L.P., a hedge fund managed by Kim through Spyglass. according to court filings.

The SEC complaint, filed in Texas, alleges that between in 2004 and 2006, Kim and Spyglass raised approximately $4.7 million from investors located primarily in Houston, Texas using offering materials that contained misleading information relating to Kim's education, business experience, and compensation.

The SEC alleges that Kim and Spyglass failed to employ any hedging strategy to manage risk, causing the hedge fund to loose over $2 million then directing the hedge fund to make approximately $1.7 million in Ponzi payments to investors.

Finally, the SEC alleges that Kim misappropriated approximately $1.5 million of the hedge fund's remaining assets to repay several outstanding personal obligations.

Without admitting or denying the allegations, Kim and Spyglass have made a settlement with the SEC, which is subject to the approval of the United States District Court for the Southern District of Texas.

SSARIS Wins Fund of Hedge Fund Award

HedgeCo News - Hedge fund and FoHF manager, SSARIS Advisors, LLC, won the "Global Multi-Strategy ($500 million -$1 billion) over 3 years" award at the annual InvestHedge FoHF Awards ceremony held last night in New York City. SSARIS won in the Multi-Manager Absolute Return Strategy category.

To qualify, all funds of funds must provide a strategy allocation breakdown for each fund nominated. InvestHedge has the final say in which category a fund is nominated. Winners are decided using an established methodology based on a combination of Sharpe ratios and returns over the relevant time period.

SSARIS Advisors, LLC is a majority-owned subsidiary of State Street Global Alliance, LLC. SSARIS Advisors, LLC was founded in 2001 and is directed by Mark Rosenberg, Chairman and CIO; Peter Hinrichs, CFO and Chief Compliance Officer; and Jim Tomeo, COO and Senior Portfolio Manager.

With $1.9 trillion in assets under management, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.

15 Mar 2010

UCITS Hedge Fund Strategy Index up 0,93% in first two weeks of March

HedgeCo News - The UCITS Hedge Fund Strategy Index gained 0,93% within the first two weeks in March 2010, every strategy except fixed income and market neutral were positive, Global macro not only being the most successful strategy in 2010 but also in March with gains of 2,85% so far.

The other most successful strategies in March are convertible (+1,75%), CTA (+1,70%) and L/S equity (+1,54%), the latter turning positive ytd for the first time.

The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS III funds that apply absolute return strategies, have more than 10 Million Euros of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.

The indices are calculated on every 5th, 10th and 15th business day and at the end of each month by the index calculator Structured Solutions AG.

There have been 8 UCITS hedge fund launches since January 2010.

New Ticonderoga Launch As Hedge Funds Embrace ETFs

HedgeCo News - Institutional broker dealer, Ticonderoga Securities has launched an exchange traded funds (ETF) desk, led by industry veteran William Bauer. Bauer joins Ticonderoga with more than 18 years of institutional equity and derivative sales and trading experience, with five years focused on ETFs.

“Hedge funds and money managers are increasingly embracing ETFs as a superior product with greater transparency and liquidity,” said Bauer. “As this continues, Ticonderoga will be positioned well for growth.”

The new group will specialize in market making capabilities for institutional investors moving in and out of ETFs. The team will also advise clients on portfolio-trading issues, provide analysis and strategy, and assist in order execution through strong collaboration with the firm’s Sales & Trading Desk. As head of the ETF Desk, Bauer will focus on building out the ETF platform over the next several months, adding support staff, assistant traders and sales traders focused on ETF sales.

Bauer comes to Ticonderoga from Knight Capital, where he was a Director in ETF sales and trading. Before that, he was Vice President in sales and trading on the ETF market-making desk at Newedge Financial LLC, and also served as Vice President in sales and trading at RBC Capital Markets. Bauer attended University of Hartford with a focus on economics and finance.

Hedge Funds Leaders Forum 2010

The Hedge Funds Leaders Forum 2010, "Generating Alpha in Challenging Times", is being held March 18th, in New York City. The event will review recent performance of multi-strategy hedge funds, at panel "Generating Market-Beating Returns Under the Watchful Eye of the SEC".

Dow Jones reported: "The average hedge fund lagged behind the nearly 3% return of the Standard & Poor's 500 Stock Index return in February. The hedge funds that beat the market tended to be multi-strategy, according to both hedge fund databases and fund managers' letters to investors. Daniel Loeb's Third Point Offshore fund was up 3.2% for February and 6.9% for the year through February, according to HSBC Private Bank; the fund is multi-strategy."

Panelists, speakers and sponsors are invited to contact the organizers by sending an email to

9 Mar 2010

Hedge funds up 0.52% in February

New York ( - Hedge funds returned to positive territory in February 2010 according to a preliminary Eurekahedge report. There were approximately 90 hedge fund launches globally in 1Q2010. With arbitrage hedge funds delivering 15 consecutive months of positive returns, gaining 26.23% since November 2008.

Hedge fund returns across most regions were marginally positive for February; however, early reports showed that North American managers, who make up 65% of the hedge fund universe, posted impressive gains of 1.41%. Regional managers capitalised on the marked improvements in market sentiment on the back of some strong earnings reports, positive movements in the US dollar and commodities as well as improved manufacturing data and the Fed’s decision to maintain low interest rates

Latin American funds were also positive with a 0.48% returns in February while Asia ex-Japan and Japan funds returned nominally positive performances. Continued problems in the eurozone led to negative results by the region’s managers, who were down 0.66% in February as the euro weakened amid speculation of Greece’s sovereign debt default.

The composite Eurekahedge Hedge Fund Index gained 0.52% during the month as the underlying global markets posted a recovery from a disappointing January. The MSCI World Index was up 1.23% in February, bringing its YTD figure to -3.01%.

The Eurekahedge CTA/Managed Futures Hedge Fund Index was up a strong 1.27% during the month. Continued low interest rates in the US also helped managers in the bonds sector to deliver yet another month of positive results. Fixed income, arbitrage and relative value hedge funds were all up during the month while distressed debt managers were flat to slightly negative.

Minnesota Hedge Fund Manager Petters May Face Double Madoff Term

HedgeCo News - U.S. prosecutors yesterday recommended a sentence of 335 years in prison for hedge fund founder Thomas Petters, more than twice the term given to Bernard Madoff, according to Bloomberg. Petters was charged with mail and wire fraud, money laundering and obstructing justice.

A federal judge in Minneapolis ordered Petters to be held without bail in October 2000, after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country.

Petters and his hedge fund, Petters Group Worldwide LLC was convicted in December 2000, of all 20 criminal counts, adding up to a $3.5 billion fraud.

“The defendant’s fraud is staggering and unprecedented in size and impact on victims and the community,” prosecutors said, according to Bloomberg.

The case is U.S. v. Thomas Joseph Petters, U.S. District Court, District of Minnesota. The final sentencing is set for April 8th.

8 Mar 2010

2010 Top Hedge Fund Firm Launches

Via HedgeTracker

Style Estimated
Assets at
AE Capital Management
Global Macro 10 Singapore
Astenbeck Capital Management
Commodities Focused 1,400 Westport, CT
Black’s Link Capital Ltd
Event-Driven NA Central Hong Kong
Castle Hill Asset Management
Fixed Income 2,150 London
Doubloon Capital LLC
Distressed NA Norwalk, CT
Edward Hornstein LLC
Long/Short Equity 10 New York, NY
Munsun Asset Management
Asian Equities NA China
Nautical Capital Management
Commodities Focused NA Purchase, NY

The Hedge Fund Fraud Casebook - Review

New York ( - Research and Markets has added John Wiley and Sons Ltd's new report "The Hedge Fund Fraud Casebook" to their offering. An in-depth look at the first 100 cases of proven fraud at hedge funds.

Some highlights:

* First comprehensive survey of hedge fund fraud including 100 chronological fraud cases
* Includes descriptions of each case, diagram of the player interaction, and tables detailing monies recovered, fines paid, prison terms, and professional sanctions
* Useful for both individual and professional investors, particularly given the last eighteen months of fraud and mismanagement among leading financial professionals and companies

Author Bruce Johnson spent more than a decade as a hedge fund practitioner, managing and advising funds. He was CEO of Albourne America LLC, the U.S. arm of Albourne Partners, a hedge fund advisory firm based in London. While at Albourne, Johnson researched new approaches to hedge fund due diligence including the quantitative analysis of "fund failure" and hedge fund credit.

After an earlier career as an architect and city planner in New York and London, Johnson has gained twenty-four years worth of experience in finance, including extended postings in Tokyo, Hong Kong, and London. While head of Global Research for Baring Securities, he published an important paper on the future of the Chinese and Indian economies, correctly predicting their current impact on global trade, and also created and managed the first investable global emerging markets equity index.

3 Mar 2010

Maples Launches Luxembourg Hedge Fund Administration Services

Independent hedge fund services provider, Maples Finance, has expanded its European service offering in Luxembourg following the approval of its Registrar Agent license by Luxembourg’s financial supervisory authority, the Commission de Surveillance du Secteur Financier.

"We are delighted to broaden our capabilities in Luxembourg, where we have acted as a licensed Domiciliation Agent since 2007." Maxine Rawlins, CEO of Maples Finance, said," As we begin to see recovery in global markets, Maples Finance is well positioned to deliver seamless services to our clients both in Luxembourg and globally."

Maples Finance services $30 billion in investment fund net assets from its worldwide network of offices in financial centres including Canada, Dubai, Dublin, Luxembourg, Hong Kong, and the Cayman Islands.

Hedge Fund Regulation Certification Launch

The Ireland-based Hedge Fund College has announced the launch of its Certificate in Hedge Fund Regulation, the first regulatory certification in the hedge fund industry.

“Never has it been more important for the hedge fund industry to demonstrate a greater regulatory awareness." Thomas Bullman, founder of the Hedge Fund College, said, "Both European and US regulatory proposals will have far-reaching effects. Everybody within the hedge fund industry has an obligation to ensure that they are sufficiently educated on how these new measures will impact them. The Hedge Fund College aims to provide a broad certification that a candidate has demonstrated an understanding of hedge fund regulation and current issues.”

The Certificate in Hedge Fund Regulation provides a broad-based curriculum in hedge fund regulation, delivered online by distance learning.

Sponsored by The Hedge Fund Society and its international advisory board of academics and commercial practitioners, the course provides an introduction to hedge funds, their history and the regulatory issues surrounding them. The course also provides a review of regulatory theory and analysis of the regulation of hedge funds, hedge fund managers, hedge fund service providers and hedge fund standards in the UK, EU and US.