HedgeCo.net - As part of the the debate over the European Union’s draft Alternative Investment Fund Managers Directive, French and German Finance Ministers, Christine Lagarde and Wolfgang Schäuble, made a statement about the standard for European hedge funds, - found in full in today’s Wall Street Journal, proposing a draft directive providing supervisors with full access to all relevant information regarding individual hedge funds.
AIMA, (The Global Hedge Fund Industry Association) said: “We very much welcome the comments by Mrs. Lagarde and Mr. Schäuble that ‘France and Germany believe in open financial markets’ and that ‘qualified investors should be free to invest in funds from all around the globe irrespective of quality standards set for state-of-the-art European hedge funds’. Given the widespread international concern over possible protectionist consequences of the Directive and the potential impact on European investors, this is a significant and reassuring statement.
“While the comments by Mrs. Lagarde and Mr. Schäuble are welcome, we would note that the current texts of the Directive do not necessarily reflect these sentiments, and we presume that the French and German governments would therefore support appropriate revisions in line with these remarks. In particular, while Mrs. Lagarde and Mr. Schäuble say that EU investors should be free to invest in non-EU funds as long as non-EU investment funds and their supervisors provide for adequate information exchange to mitigate systemic risk, the current text being discussed at Council level imposes additional requirements on non-EU funds beyond this.
“We do agree that it is important that the AIFM Directive addresses the issue of systemic risk; AIMA, as the global hedge fund industry association, has consistently supported transparency by the industry in this respect, namely the reporting of systemically relevant data in the interests of financial stability to national supervisors.
“We also remain concerned about the details of the practical application of this Directive and would urge policymakers to liaise closely not only with the industry but with the regulators with the most experience of the sectors covered by this Directive to ensure a consistent, proportionate and practical piece of final legislation.”
28 Apr 2010
Assets Seized After Suicide Attempt
HedgeCo.net – The Denver Post reports that authorities have seized the assets of local hedge fund manager Sean Mueller. The State is accusing him of running a Ponzi scheme involving approximately $122 million.
An investment statement released by investigators showed only $15 million in his account, after the hedge fund had claimed assets of $122 million.
Mueller Capital’s Over-Under Fund raised more than $20 million from three investors and that at least 30 more also may have made “substantial investments”, the Denver Post reported.
“I’m very sorry for the damage I have done.” Mueller said in a handwritten note, according to the Post.” I always thought I could make it back. Nobody else had any involvement except me.”
After threatening to kill himself, it is reported that Mueller was found by police last Thursday considering a jump from about 19 stories. Mueller had also apologized to his clients for financial losses by Email.
The hedge fund manager was taken to a hospital by the Greenwood Village police.
An investment statement released by investigators showed only $15 million in his account, after the hedge fund had claimed assets of $122 million.
Mueller Capital’s Over-Under Fund raised more than $20 million from three investors and that at least 30 more also may have made “substantial investments”, the Denver Post reported.
“I’m very sorry for the damage I have done.” Mueller said in a handwritten note, according to the Post.” I always thought I could make it back. Nobody else had any involvement except me.”
After threatening to kill himself, it is reported that Mueller was found by police last Thursday considering a jump from about 19 stories. Mueller had also apologized to his clients for financial losses by Email.
The hedge fund manager was taken to a hospital by the Greenwood Village police.
23 Apr 2010
Fund Of Funds Investing: Q&A with Richard Bookbinder
New York (HedgeCo.net) In the new book, ‘Fund of Funds Investing – A Roadmap to Portfolio Diversification,’ Richard Bookbinder and Daniel Strachman write about the evolution of capital markets and the changes that have taken place in the arena of alternative investing.
I asked Richard Bookbinder, founder of Bookbinder Capital Management LLC and co-author of the book about his thoughts on what investors should look for in choosing a hedge fund manager.
Some pointers include:- Ensure that the manager has a verifiable track record, it is important to review performance results and source of returns not only in 2009, but also to review prior and current periods.
- Take time for due diligence and review: 3 to 6 months minimum, even as long as 12 to 24 months.
- Look at the quantitative as well as qualitative results:
“While a quantitative review of performance and correlation results is critical,” Bookbinder said, “the qualitative on site due diligence includes review of systems, procedures, processes, and risk management systems along with extensive meetings of managers and key personnel.”
- Size is important, but bigger is not always better:
“While much of the new flow of capital into the hedge fund industry has been directed to large, visible hedge fund complexes, size should not be the key factor, “ The author explained, “There are many smaller funds with long, consistent track records that have outperformed the large funds.”
- Learning from history:
“It is important to understand what the source of alpha was in driving past performance returns.” Bookbinder said regarding the history of market performance and its relevance on future performance. “Investors had the wind to their backs in 2009 with the equity and credit market rally. In 2010, the story has changed. Performance returns are dependent upon manager skill sets and depth of the organization team.”
In conclusion, I asked what the crisis had to teach us. Bookbinder said, “Due diligence is not a check the box business. It must be performed by seasoned analysts who have a specialized understanding of the strategies.”
Bookbinder is a frequent speaker at hedge fund industry academic forums including the New York Society of Security Analysts and various hedge fund industry programs. He is also active in charitable activities including as a member of the Board of Trustees of the Darrow School, New Lebanon, NY. He is the External Advisor to the Wharton Hedge Fund Club, and participates in the Executive Student Partnership Mentoring program at Baruch College, New York, NY.
22 Apr 2010
Fictional Trading Experts Charged in NY Hedge Fund Scam
HedgeCo.net - The SEC has charged the self-proclaimed, “Wolves of Wall Street,” a Staten Island investment advisory firm, with operating an Internet-based scam that misleads investors into paying fees for phony stock tips and investment advice from fictional trading experts.
The team is charged with fraud, pretending to run a $1.4 billion hedge fund using fake names and claiming millions of dollars in trading riches as well as top-notch educational backgrounds and prominent experience at major Wall Street firms.
The “hedge fund”, called Gryphon, had fabricated glowing testimonials from George Soros and other big name traders on its website.
Gryphon frequently posted investment tips on the Internet, the SEC alleges, using at least 40 different monikers such as “Wolves of Wall Street,” “Wall Street’s Most Wanted,” “Pure Profit,” and “Mafia Trader.” In reality, Gryphon’s financial publications only served as a vehicle to attract unsuspecting investors.
According to the SEC’s complaint, Gryphon obtained more than $17.5 million from its operations over the past three years.
The Judge granted the SEC’s request for a temporary restraining order and asset freeze against the Defendants and six others named as Relief Defendants: (real names) Richard Borrello, Nicole Marsh, Ginna Mungiovi, Michael Scarpaci, Dominic Spinelli, and Paul Stokes.
The team is charged with fraud, pretending to run a $1.4 billion hedge fund using fake names and claiming millions of dollars in trading riches as well as top-notch educational backgrounds and prominent experience at major Wall Street firms.
The “hedge fund”, called Gryphon, had fabricated glowing testimonials from George Soros and other big name traders on its website.
Gryphon frequently posted investment tips on the Internet, the SEC alleges, using at least 40 different monikers such as “Wolves of Wall Street,” “Wall Street’s Most Wanted,” “Pure Profit,” and “Mafia Trader.” In reality, Gryphon’s financial publications only served as a vehicle to attract unsuspecting investors.
According to the SEC’s complaint, Gryphon obtained more than $17.5 million from its operations over the past three years.
The Judge granted the SEC’s request for a temporary restraining order and asset freeze against the Defendants and six others named as Relief Defendants: (real names) Richard Borrello, Nicole Marsh, Ginna Mungiovi, Michael Scarpaci, Dominic Spinelli, and Paul Stokes.
21 Apr 2010
Hedge Fund Launch: OM Global
Traditional and alternative asset managemer, OM Investment Management has launched a new hedge fund, the OM Global Investment Fund.
Launched on April 1, 2010, the new hedge fund expects to raise $50 million by June, with a target of $100 million by year end. The fund has returns of 22.3% as of 4/12/2010 in the first month alone.
"The OM Global Investment Fund targets 1500 of the most liquid global companies and is open to new investors." Portfolio manager Gignesh Movalia, said of the launch, "OM Investment Management is a multi-strategy investment and wealth advisory firm created to provide traditional and alternative asset management exclusively for wealthy individuals, institutional investors, and retirement plan sponsors."
The new hedge fund is a global long/short fund that uses a blend of fundamental and technical analysis to generate positive absolute returns in rising, falling and volatile, range-bound markets.
Movalia started OM Investments Management in 2007 and formed OM Global Investment Fund as a standalone fund structure in April 1, 2010. Movalia is the chairman and chief investment officer of OM and serves as portfolio manager for the equity fund."
Target size for the fund is currently $200m in assets under management in one year. Goldman Sachs is the prime broker for the fund while Patke & Associates will serve as the auditor and BGT Consulting, the administrator.
Prior to the formation of OM, Mr. Movalia was an Investment Advisor at Morgan Stanley & Co. and UBS, where he advised a niche group of wealthy clients representing several hundred million dollars in investment assets spanning equities, fixed income, and alternative investments. He also serves on the Advisory Board of Directors of Fahrenheit Investments, a Chicago-based hedge fund.
Launched on April 1, 2010, the new hedge fund expects to raise $50 million by June, with a target of $100 million by year end. The fund has returns of 22.3% as of 4/12/2010 in the first month alone.
"The OM Global Investment Fund targets 1500 of the most liquid global companies and is open to new investors." Portfolio manager Gignesh Movalia, said of the launch, "OM Investment Management is a multi-strategy investment and wealth advisory firm created to provide traditional and alternative asset management exclusively for wealthy individuals, institutional investors, and retirement plan sponsors."
The new hedge fund is a global long/short fund that uses a blend of fundamental and technical analysis to generate positive absolute returns in rising, falling and volatile, range-bound markets.
Movalia started OM Investments Management in 2007 and formed OM Global Investment Fund as a standalone fund structure in April 1, 2010. Movalia is the chairman and chief investment officer of OM and serves as portfolio manager for the equity fund."
Target size for the fund is currently $200m in assets under management in one year. Goldman Sachs is the prime broker for the fund while Patke & Associates will serve as the auditor and BGT Consulting, the administrator.
Prior to the formation of OM, Mr. Movalia was an Investment Advisor at Morgan Stanley & Co. and UBS, where he advised a niche group of wealthy clients representing several hundred million dollars in investment assets spanning equities, fixed income, and alternative investments. He also serves on the Advisory Board of Directors of Fahrenheit Investments, a Chicago-based hedge fund.
Hedge Fund Manager Released On Bail in Texas/Canada/China Investment Fraud Case
HedgeCo News - Weizhen Tang was jailed in mid-January this year on the charges of running a multi-million dollar Ponzi scheme. The SEC said that the defendant orchestrated the fraud through an overseas hedge fund and a Texas-based investment adviser.
Tang was released after a bail review on $150,000 bail, the Toronto Sun reported. The bail conditions order the hedge fund manager to stay in Canada and do not permit him from communicating with investors or hedge funds.
The fraud is alleged to have began as early as 2004, and through the hedge fund Tang raised between $50 million and $75 million from more than 200 investors. According to the SEC complaint, more than $51 million was allegedly involved in the hedge fund failure.
A Judge also previously granted a temporary restraining order, asset freeze, and other emergency relief against the defendants.
“I want a chance to prove my innocence, that’s why I came back from China,” Weizhen Tang told reporters at the Toronto Sun.
Tang was released after a bail review on $150,000 bail, the Toronto Sun reported. The bail conditions order the hedge fund manager to stay in Canada and do not permit him from communicating with investors or hedge funds.
The fraud is alleged to have began as early as 2004, and through the hedge fund Tang raised between $50 million and $75 million from more than 200 investors. According to the SEC complaint, more than $51 million was allegedly involved in the hedge fund failure.
A Judge also previously granted a temporary restraining order, asset freeze, and other emergency relief against the defendants.
“I want a chance to prove my innocence, that’s why I came back from China,” Weizhen Tang told reporters at the Toronto Sun.
Hedge Fund Democrat Donors
HedgeCo News
1. Jim Simons, founder of quantitative hedge fund Renaissance Technologies gave $94,100 in contributions over the past year, almost all of it going to Democrats, including Senators Harry Reid of Nevada, Chris Dodd of Connecticut and New York’s Charles Schumer, ABC said.
2. Also in the top ten, former Goldman Sachs trader Eric Mindich doled out $89,600, all to Democrats, including Reid, Dodd and Sen. Kirsten Gillibrand of New York.
3. Michael Sacks, CEO of Grosvenor Capital Management and a big Obama supporter, donated $76,425, all to Democrats, the report shows, including $1,000 to House Speaker Nancy Pelosi and $2,300 to Sen. Al Franken.
4. Henry Laufer, who works for Simons’ Renaissance, gave $73,600, all to Democrats. Among the recipients was HILLPAC, the PAC started by Hillary Clinton to support Democratic candidates.
5. Scott Nathan of Boston-based hedge fund Baupost gave $73,050, all to Democratic causes, including a maximum gift of $4,800 to Alan Khazei, who ran unsuccessfully to fill the Senate seat vacated by the late Ted Kennedy.
6. Eliott Associates’ Paul Singer gave $70,000 to Republicans in the past year. He donated $30,400, the maximum allowable, to the National Republican Senatorial Committee.
7. Cliff Asness, of AQR Capital, a Greenwich, Connecticut-based quantitative fund, donated $71,600 to Republicans, including $30,400 to the National Republican Senatorial Committee. In the tiniest of hedges, Asness gave Dodd $490, or around 1 percent of his total of $72,090 in donations during the past year.
8. Robert Mercer, also of Renaissance, gave $71,976, of which $69,576 went to the GOP.
9. Steve Cohen gave $68,400, all but $4,800 of which went to Republicans, including Rep. Eric Cantor of Virginia and the scandal-embroiled Senator from Nevada, John Ensign, ABC said.
10. Phil Falcone, of Harbinger Capital, seems to be hedging his bets, donating $30,400 to the Democratic Senatorial Campaign Committee and $10,000 to the Republican Party.
Hedge fund manager John Paulson gave money to both political parties, ABC reported. The most any individual can contribute in one election cycle is $115,500.
1. Jim Simons, founder of quantitative hedge fund Renaissance Technologies gave $94,100 in contributions over the past year, almost all of it going to Democrats, including Senators Harry Reid of Nevada, Chris Dodd of Connecticut and New York’s Charles Schumer, ABC said.
2. Also in the top ten, former Goldman Sachs trader Eric Mindich doled out $89,600, all to Democrats, including Reid, Dodd and Sen. Kirsten Gillibrand of New York.
3. Michael Sacks, CEO of Grosvenor Capital Management and a big Obama supporter, donated $76,425, all to Democrats, the report shows, including $1,000 to House Speaker Nancy Pelosi and $2,300 to Sen. Al Franken.
4. Henry Laufer, who works for Simons’ Renaissance, gave $73,600, all to Democrats. Among the recipients was HILLPAC, the PAC started by Hillary Clinton to support Democratic candidates.
5. Scott Nathan of Boston-based hedge fund Baupost gave $73,050, all to Democratic causes, including a maximum gift of $4,800 to Alan Khazei, who ran unsuccessfully to fill the Senate seat vacated by the late Ted Kennedy.
6. Eliott Associates’ Paul Singer gave $70,000 to Republicans in the past year. He donated $30,400, the maximum allowable, to the National Republican Senatorial Committee.
7. Cliff Asness, of AQR Capital, a Greenwich, Connecticut-based quantitative fund, donated $71,600 to Republicans, including $30,400 to the National Republican Senatorial Committee. In the tiniest of hedges, Asness gave Dodd $490, or around 1 percent of his total of $72,090 in donations during the past year.
8. Robert Mercer, also of Renaissance, gave $71,976, of which $69,576 went to the GOP.
9. Steve Cohen gave $68,400, all but $4,800 of which went to Republicans, including Rep. Eric Cantor of Virginia and the scandal-embroiled Senator from Nevada, John Ensign, ABC said.
10. Phil Falcone, of Harbinger Capital, seems to be hedging his bets, donating $30,400 to the Democratic Senatorial Campaign Committee and $10,000 to the Republican Party.
Hedge fund manager John Paulson gave money to both political parties, ABC reported. The most any individual can contribute in one election cycle is $115,500.
20 Apr 2010
Sadis & Goldberg Congratulates SkyBridge Capital on Purchase of Citigroup's Hedge Fund Business
HedgeCo News - When SkyBridge Capital announced the purchase of Citigroup's Hedge Fund Business on April 14, Paul Fasciano, who headed up the acquisition team from Sadis & Goldberg, stated. "We are pleased that SkyBridge selected us to represent them in this transaction and we congratulate Anthony on his vision to acquire the hedge fund business from Citigroup."
The Sadis & Goldberg team working on the transition consists of Paul Fasciano, Mergers and Acquisitions and Investment Management Partner, and Lance Friedler, Investment Management. Also on the team were Steven Etkind and Roger Lorence, Tax; Dan Viola, Regulatory and Compliance; and Ron S. Geffner, Head of the Financial Services Group.
The deal included the purchase of Citi Alternative Investments' fund of funds, hedge fund seeding and advisory businesses, with $4.2 billion worth of assets under management. The transaction is scheduled to close on June 30, 2010.
“SkyBridge continues to expand its presence in the financial services industry and this acquisition will position us as one of the leading global alternative asset managers,” said Anthony Scaramucci, Managing Partner of SkyBridge Capital. “We have been working on the purchase with a team of attorneys from Sadis & Goldberg since February and once the deal closes, we will have approximately $5.6 billion in assets under management.”
"The current climate of increased opportunity for M&A in the asset management industry provides great benefits to our clients who continue to fortify their position in the financial services industry. While the increased regulatory scrutiny presents new challenges, it is critical to be aware of the latest developments and trends," said Ron S. Geffner, Partner and Head of the Financial Services Group.
The Sadis & Goldberg team working on the transition consists of Paul Fasciano, Mergers and Acquisitions and Investment Management Partner, and Lance Friedler, Investment Management. Also on the team were Steven Etkind and Roger Lorence, Tax; Dan Viola, Regulatory and Compliance; and Ron S. Geffner, Head of the Financial Services Group.
The deal included the purchase of Citi Alternative Investments' fund of funds, hedge fund seeding and advisory businesses, with $4.2 billion worth of assets under management. The transaction is scheduled to close on June 30, 2010.
“SkyBridge continues to expand its presence in the financial services industry and this acquisition will position us as one of the leading global alternative asset managers,” said Anthony Scaramucci, Managing Partner of SkyBridge Capital. “We have been working on the purchase with a team of attorneys from Sadis & Goldberg since February and once the deal closes, we will have approximately $5.6 billion in assets under management.”
"The current climate of increased opportunity for M&A in the asset management industry provides great benefits to our clients who continue to fortify their position in the financial services industry. While the increased regulatory scrutiny presents new challenges, it is critical to be aware of the latest developments and trends," said Ron S. Geffner, Partner and Head of the Financial Services Group.
Cheung Capital Management to launch Global Gaming Opportunities Fund
Today Cheung Capital Management announced the launch of its maiden fund, the Global Gaming Opportunities Fund (“Fund”). The Fund will invest in listed casino and gaming stocks around the world. The Fund is open to Australian wholesale and sophisticated investors.
“The global gaming industry includes casinos, poker machine manufacturers, lotteries and bookmakers and has a total market capitalization in excess of $100 billion. In spite of its size, many traditional fund managers and brokerage houses still shy away from the sector. This presents an opportunity for the Fund to generate strong returns for its clients through the application of bespoke research,” said Timothy Cheung, Portfolio Manager for the Global Gaming Opportunities Fund.
“Gaming stocks can be very attractive for investors because they have defensive characteristics while still retaining exposure to increasing consumer affluence. This is particularly relevant to investors seeking exposure to Asia’s burgeoning middle class. One market the Fund will focus on is Macau, the world’s largest casino destination. In spite of the global financial crisis, casino revenues in Macau have grown every year since it welcomed overseas operators in 2004.”
“The global gaming industry includes casinos, poker machine manufacturers, lotteries and bookmakers and has a total market capitalization in excess of $100 billion. In spite of its size, many traditional fund managers and brokerage houses still shy away from the sector. This presents an opportunity for the Fund to generate strong returns for its clients through the application of bespoke research,” said Timothy Cheung, Portfolio Manager for the Global Gaming Opportunities Fund.
“Gaming stocks can be very attractive for investors because they have defensive characteristics while still retaining exposure to increasing consumer affluence. This is particularly relevant to investors seeking exposure to Asia’s burgeoning middle class. One market the Fund will focus on is Macau, the world’s largest casino destination. In spite of the global financial crisis, casino revenues in Macau have grown every year since it welcomed overseas operators in 2004.”
"Hedge Fund Hotel" Manager Arrested For $1.6 Million Fraud
HedgeCo News - Hedge fund manager and owner and President of New York Financial Company (NYFC), was arrested in an FBI operation on allegations of wire and hedge fund fraud in an alleged $1.6 million investment fraud scheme, according to the SEC.
The complaint alleges that New Jersey resident Robert J. Sucarato, through his financial consulting firm, launched two hedge funds, the NYFC Strategic Fund and the NYFC Diversified Strategic Fund, which purportedly invested in the commodities market.
Sucarato solicited for his hedge funds through a website, the SEC claims, working from a “virtual office” in New York City which allowed him to claim that NYFC had a prestigious mailing address. In reality, this space was nothing more than shared office space, rented for a nominal fee, which shared receptionists, conference rooms, and office areas with many other companies.
The allegations include, making false claims about the age of the hedge funds as well as their performance and returns. The hedge fund manager claimed over $7.2 billion in assets under management and a net worth of approximately $798 million.
The charge of wire fraud carries a maximum statutory sentence of 20 years in prison and a fine of $250,000. The charge of fraud by a commodity pool operator carries a maximum statutory sentence of 10 years in prison and a fine of $1 million.
19 Apr 2010
Treasury Goes Green, Saves, Green
Broad New Initiative Will Increase Electronic Transactions, Save More Than $400 Million, 12 Million Pounds of Paper in First Five Years Alone
Washington (Press release) – With Americans poised to celebrate the 40th anniversary of Earth Day this week, the U.S. Department of the Treasury today announced a broad new initiative to dramatically increase the number of electronic transactions that involve Treasury and millions of citizens and businesses, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone. In addition to greatly reducing costs, enhancing customer service and minimizing Treasury's environmental impact, the move from paper to electronic transactions will increase reliability, safety and security for benefit recipients and taxpayers.
"Treasury must lead the way in developing methods to deliver payments that are safe and secure in a manner that is efficient and reliable," said Treasury Secretary Tim Geithner. "By moving to all-electronic payments, Treasury will save hundreds of millions of dollars and substantially reduce our environmental impact, making this a win-win for all Americans."
Starting today, Treasury will begin implementing a three-pronged initiative to dramatically reduce the number of transactions that are conducted on paper by moving them to electronic systems. First, Treasury will require individuals receiving Social Security, Supplemental Security Income, Veterans, Railroad Retirement and Office of Personnel Management benefits to receive payments electronically. Individuals will be able to receive benefits either through direct deposit into a bank account or Treasury's Direct Express debit card. Today, one million Americans are receiving their benefit payments through Direct Express and they have found the card safe, convenient and easy to use. The requirement will apply to new enrollees beginning on March 1, 2011 and to existing check recipients beginning on March 1, 2013. Currently, 85 percent of federal benefit recipients receive their payments electronically. Moving all recipients of these benefits to electronic payments is expected to save upwards of $300 million in the first five years.
Second, businesses currently permitted to use paper Federal Tax Deposit coupons will have to make those deposits electronically beginning in 2011 with a few exceptions, primarily businesses with $2,500 or less in quarterly tax liabilities that pay when filing their returns. Currently, nearly 98 percent of all business tax dollars are paid electronically through Treasury's free Electronic Federal Tax Payment System. IRS research has shown that businesses using EFTPS are 31 times less likely to make an error. This change will save an estimated $65 million in the first five years.
Finally, Treasury will eliminate the option to purchase paper savings bonds through payroll deductions for federal employees on September 30, 2010 and for the private sector by January 1, 2011. This policy covers only paper savings bonds purchased through payroll sales; individuals will still be able to purchase paper savings bonds at financial institutions for themselves and as gifts. Payroll savers will be encouraged to continue their purchases through Treasury Direct, a web-based system that allows investors to buy and hold electronic savings bonds. Transitioning employees to electronic payroll purchases saves employers administrative costs and allows employees to manage their own bond accounts. This is estimated to save nearly $50 million in the first five years.
The benefits of electronic transactions are well documented. Aside from the large cost savings, electronic transactions provide safety, convenience and control for payment recipients, taxpayers and savings bond holders. These initiatives do not require new legislation and can be accomplished by changes to Treasury's existing regulations.
As Treasury moves towards an all electronic payment environment, the Administration is strengthening protections for individuals who receive Direct Deposit. Treasury and the federal agencies that issue benefit payments have published a notice of proposed rulemaking to ensure that exempt federal benefit payments are protected from garnishment after they are directly deposited into accounts. Also, Treasury will soon issue a notice of proposed rulemaking that reaffirms the longstanding policy that federal benefits must be directly deposited into an account in the name of the recipient and not into an account of a third party. This rule will prevent entities such as payday lenders from establishing a master account to receive payments on behalf of multiple beneficiaries.
The rule address concerns that benefit recipients do not have control over their funds in these arrangements. In addition, this proposed rule will permit the direct deposit of benefit payments into master accounts established by organizations such as nursing homes, as long as certain consumer protections are provided for their residents.
Washington (Press release) – With Americans poised to celebrate the 40th anniversary of Earth Day this week, the U.S. Department of the Treasury today announced a broad new initiative to dramatically increase the number of electronic transactions that involve Treasury and millions of citizens and businesses, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone. In addition to greatly reducing costs, enhancing customer service and minimizing Treasury's environmental impact, the move from paper to electronic transactions will increase reliability, safety and security for benefit recipients and taxpayers.
"Treasury must lead the way in developing methods to deliver payments that are safe and secure in a manner that is efficient and reliable," said Treasury Secretary Tim Geithner. "By moving to all-electronic payments, Treasury will save hundreds of millions of dollars and substantially reduce our environmental impact, making this a win-win for all Americans."
Starting today, Treasury will begin implementing a three-pronged initiative to dramatically reduce the number of transactions that are conducted on paper by moving them to electronic systems. First, Treasury will require individuals receiving Social Security, Supplemental Security Income, Veterans, Railroad Retirement and Office of Personnel Management benefits to receive payments electronically. Individuals will be able to receive benefits either through direct deposit into a bank account or Treasury's Direct Express debit card. Today, one million Americans are receiving their benefit payments through Direct Express and they have found the card safe, convenient and easy to use. The requirement will apply to new enrollees beginning on March 1, 2011 and to existing check recipients beginning on March 1, 2013. Currently, 85 percent of federal benefit recipients receive their payments electronically. Moving all recipients of these benefits to electronic payments is expected to save upwards of $300 million in the first five years.
Second, businesses currently permitted to use paper Federal Tax Deposit coupons will have to make those deposits electronically beginning in 2011 with a few exceptions, primarily businesses with $2,500 or less in quarterly tax liabilities that pay when filing their returns. Currently, nearly 98 percent of all business tax dollars are paid electronically through Treasury's free Electronic Federal Tax Payment System. IRS research has shown that businesses using EFTPS are 31 times less likely to make an error. This change will save an estimated $65 million in the first five years.
Finally, Treasury will eliminate the option to purchase paper savings bonds through payroll deductions for federal employees on September 30, 2010 and for the private sector by January 1, 2011. This policy covers only paper savings bonds purchased through payroll sales; individuals will still be able to purchase paper savings bonds at financial institutions for themselves and as gifts. Payroll savers will be encouraged to continue their purchases through Treasury Direct, a web-based system that allows investors to buy and hold electronic savings bonds. Transitioning employees to electronic payroll purchases saves employers administrative costs and allows employees to manage their own bond accounts. This is estimated to save nearly $50 million in the first five years.
The benefits of electronic transactions are well documented. Aside from the large cost savings, electronic transactions provide safety, convenience and control for payment recipients, taxpayers and savings bond holders. These initiatives do not require new legislation and can be accomplished by changes to Treasury's existing regulations.
As Treasury moves towards an all electronic payment environment, the Administration is strengthening protections for individuals who receive Direct Deposit. Treasury and the federal agencies that issue benefit payments have published a notice of proposed rulemaking to ensure that exempt federal benefit payments are protected from garnishment after they are directly deposited into accounts. Also, Treasury will soon issue a notice of proposed rulemaking that reaffirms the longstanding policy that federal benefits must be directly deposited into an account in the name of the recipient and not into an account of a third party. This rule will prevent entities such as payday lenders from establishing a master account to receive payments on behalf of multiple beneficiaries.
The rule address concerns that benefit recipients do not have control over their funds in these arrangements. In addition, this proposed rule will permit the direct deposit of benefit payments into master accounts established by organizations such as nursing homes, as long as certain consumer protections are provided for their residents.
UK Hedge Fund Provider Beefs Up Tax Offering
HedgeCo News - Throgmorton, one of the UK’s largest specialist accountancy and professional services providers to the hedge fund, private equity and corporate finance industries, has added two senior tax industry practitioners to its growing team.
The company also has expertise in helping US hedge fund managers relocate and set-up in the UK.
Raminder Chowdhary has joined as the firm’s new Head of VAT, while Stephen Smith has assumed the role of Tax Manager.
Raminder Chowdhary joined from KPMG where he specialised in VAT matters relating to UK and European financial services. He was previously VAT Manager at Vantis Plc. Raminder started his career with Deloitte & Touche.
Stephen Smith joins Throgmorton from the international accountancy firm Mazars where he has spent the last 12 years. A business tax specialist, Stephen has 15 years experience, encompassing start-ups, corporate and partnership tax compliance, tax planning and transaction tax.
“We are delighted that Raminder and Stephen have joined." Andrew Rubio, Throgmorton CEO, said "Our employees are our greatest assets. We quickly develop a complete understanding of our client’s operations and become a fully integrated function of their business. Throgmorton’s core values are integrity, transparency, collegiality and quality and Raminder and Stephen exemplify these."
The company also has expertise in helping US hedge fund managers relocate and set-up in the UK.
Raminder Chowdhary has joined as the firm’s new Head of VAT, while Stephen Smith has assumed the role of Tax Manager.
Raminder Chowdhary joined from KPMG where he specialised in VAT matters relating to UK and European financial services. He was previously VAT Manager at Vantis Plc. Raminder started his career with Deloitte & Touche.
Stephen Smith joins Throgmorton from the international accountancy firm Mazars where he has spent the last 12 years. A business tax specialist, Stephen has 15 years experience, encompassing start-ups, corporate and partnership tax compliance, tax planning and transaction tax.
“We are delighted that Raminder and Stephen have joined." Andrew Rubio, Throgmorton CEO, said "Our employees are our greatest assets. We quickly develop a complete understanding of our client’s operations and become a fully integrated function of their business. Throgmorton’s core values are integrity, transparency, collegiality and quality and Raminder and Stephen exemplify these."
Sports Hedge Fund Launch
HedgeCo News - Hedge fund Centaur Group has launched the Centaur Galileo fund in London, investing in soccer, tennis and horse racing, The Los Angeles Times reported on Sunday.
The hedge fund claims to have a number-crunching betting system. The paper says that Galileo is probably the first hedge fund to make bets on sports events.
"We put numbers against those things that you and me and everyone in pubs have casual discussions about," Tony Woodhams, the managing director at Centaur Group said in an interview with The Los Angeles Times. "That gives us an edge on these markets."
Like other more "traditional" hedge funds, Galileo requires 100,000 euros ($135,000) minimum investment. The hedge fund also plans to make money off fluctuations in odds and point spreads that are affected by amateur bets, the paper said.
"You have a lot of sports fans who are betting for their favorite team," Woodhams said. "They get excited and discipline goes out the window. All of that provides opportunity for a trader like us to go in a very clinical manner. That's where the edge is."
Domiciled in Gibraltar, Centaur will have 25 traders working on its London trading floor. The hedge fund is only open to UK investors at the moment but the company is applying for SEC approval in the US next year.
16 Apr 2010
Hedge Fund Radio returns to Resonance FM: Monday, April 19
Stuart MacDonald posted on LinkedIn:
You are cordially invited to listen to the Monday, April 19th edition of the N@ked Short Club: 9-10pm/ 21.00-22.00 hrs., London time on not-for profit radio station, Resonance 104.4FM
The Guardian calls it: “the best radio station in London”
The Village Voice: “the best radio station in the world”
One hour of loose talk about hedge funds and the state of the world, plus sublime poetry and heady music... Nothing to do with anyone's day job, no promotional agenda, no commercial intent...just light relief in these interesting times.
Host: Dr. Stu and a team of Level 2 FAS 157 therapists will help callers to the Emergency Hedge Fund Helpline (1-800-DISTRESSED) to restore their Inner Fair Value frameworks.
Special guests:
* Dr. Chris Jones, CIO at Key/ Fellow at the Judge Institute, Cambridge University
* Chris Keen, Partner at Culross
* Gus Black, Partner at lawyers, Dechert; UCITS/ NewCITS expert
* Marilyn Ramplin, CEO of Ramplin Capital/ UCITS for Hedge Funds
* Thomas Bullman, Founder of the ground breaking Hedge Fund College and Hedge Fund Society
* Harriet Agnew from Financial News/ Dow Jones
* Thomas Deinet from the Hedge Fund Standards Board
Listen to the show within London on 104.4FM. Access it worldwide via resonancefm.com
The show will be broadcast again from 3-4pm/ 15.00-16.00 hrs., London time on Thursday, April 22.
Feedback to doctorstu@resonancefm.com
SkyBridge Acquire 3 of Citi’s Hedge Fund Businesses
HedgeCo News - SkyBridge Capital has agreed to buy the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses from Citi Alternative Investments, LLC (CAI), with total investments under management and advisory of $4.2 billion.
“It has been our belief for several years that the integration of a fund of hedge funds business is a natural fit with the SkyBridge platform, and this deal is a result of our long-term strategy to acquire assets that maximize value for investors,” said Anthony Scaramucci, managing partner of SkyBridge Capital.
The transaction will position SkyBridge as one of the leading global alternative asset managers with a total of $5.6 billion in assets under management and advisory and solidifies the firm as a global leader in hedge fund incubation. Terms of the transaction were not disclosed.
“It has been our belief for several years that the integration of a fund of hedge funds business is a natural fit with the SkyBridge platform, and this deal is a result of our long-term strategy to acquire assets that maximize value for investors,” said Anthony Scaramucci, managing partner of SkyBridge Capital.
The transaction will position SkyBridge as one of the leading global alternative asset managers with a total of $5.6 billion in assets under management and advisory and solidifies the firm as a global leader in hedge fund incubation. Terms of the transaction were not disclosed.
Hedge Funds up 3.09% for the First Quarter of 2010
HedgeCo News - Final performance for the Credit Suisse/Tremont Hedge Fund Index ("Broad Index") is confirmed up 2.22% in March.
"The Credit/Suisse Tremont Hedge Fund Index returned 2.22% in March, finishing the first quarter of 2010 up 3.09%." Oliver Schupp, President of Credit Suisse Index Co., Inc., said, "Nine out of ten sectors posted positive performance for the month and top performing sectors included Managed Futures (+4.25%), Emerging Markets (+3.89%) and Long/Short Equity (+2.99%).
"Gains in the Managed Futures space were largely due to positive performance among trend followers who generated profits across equity, commodity and currency markets. Emerging Markets and Long/Short Equity managers capitalized on both global equity market rallies and an increase in investor appetite for risky assets. Conversely, Dedicated Short Bias managers posted the weakest performance this month, down 6.61%." Schupp concluded.
The Credit Suisse/Tremont Hedge Fund Index ("Broad Index") is one of the industry's premier asset-weighted hedge fund indices. Unlike equal-weighted indices, the Broad Index does not underweight top performers and overweight decliners in seeking to provide the most accurate representation of the hedge fund universe.
"The Credit/Suisse Tremont Hedge Fund Index returned 2.22% in March, finishing the first quarter of 2010 up 3.09%." Oliver Schupp, President of Credit Suisse Index Co., Inc., said, "Nine out of ten sectors posted positive performance for the month and top performing sectors included Managed Futures (+4.25%), Emerging Markets (+3.89%) and Long/Short Equity (+2.99%).
"Gains in the Managed Futures space were largely due to positive performance among trend followers who generated profits across equity, commodity and currency markets. Emerging Markets and Long/Short Equity managers capitalized on both global equity market rallies and an increase in investor appetite for risky assets. Conversely, Dedicated Short Bias managers posted the weakest performance this month, down 6.61%." Schupp concluded.
The Credit Suisse/Tremont Hedge Fund Index ("Broad Index") is one of the industry's premier asset-weighted hedge fund indices. Unlike equal-weighted indices, the Broad Index does not underweight top performers and overweight decliners in seeking to provide the most accurate representation of the hedge fund universe.
15 Apr 2010
SEC Actively Recruiting Hedge Fund Managers
HedgeCo News - Bloomberg reports that hedge fund managers are being recruited by the SEC to boost oversight of the $14 trillion hedge fund industry.
“The fund world has become much more sophisticated and complex over the last decade,” said Steve Crimmins, a former SEC trial lawyer now at K&L Gates LLP, which represents asset managers. “The SEC hasn’t had the resources or the full expertise needed to keep pace.”
“The fund world has become much more sophisticated and complex over the last decade,” said Steve Crimmins, a former SEC trial lawyer now at K&L Gates LLP, which represents asset managers. “The SEC hasn’t had the resources or the full expertise needed to keep pace.”
The hedge fund SEC task force is looking for managers and people with “direct exposure to trading and operations” at hedge funds, Bloomberg said. The ad for 5 new recruits was posted by the SEC last month.
The SEC currently has five specialty units targeting financial misconduct ranging from insider trading to corporate bribery, the paper said.
The number of registered investment advisers jumped 50 percent to more than 11,000 from 2002 to 2009, excluding many offshore hedge funds and un-declared funds, according to officials.
The application period is set to close April 19.
Salida Capital Launches Private Equity Fund
HedgeCo News - Canadian alternative investor and fund of hedge fund manager, Salida Capital, is launching a private equity fund focused on the natural resources space. The fund’s official marketing period will begin in May and continue for a 6 to 8 month period, or until it has hit its targeted maximum capital commitment.
“We’re extremely excited about the opportunities we see for our private equity fund,” Courtenay Wolfe, President & CEO of Salida Capital, said. “It’s an area we’ve been planning on venturing into for awhile, and we are pleased to announce that we have already secured a $100 million seed investment for the fund prior to its official launch.”
"We manage our funds within a disciplined risk management framework that has predetermined limits on the percentage of privates that can be held in a fund,” Ms. Wolfe said. “Many of our investors have asked for a longer term time horizon for investing, wishing to access some of the great private investment opportunities we are seeing in the natural resources space.”
The anchor investment comes from Bill Gallacher, President and CEO of Avenir Capital. Gallacher has been involved with the start-up of a number of junior energy companies in Calgary and currently sits on the board of directors of Athabasca Oil Sands Corporation, as well as Maxim Power Corp., Mahalo Energy Ltd., Black Diamond Group Inc. and Avenir Diversified Income Trust.
“My relationship with Salida goes back many years. I’m a huge supporter and friend of the firm and am optimistic about the future of this relationship.” Gallacher said.
Salida Capital manages approximately $650 million for a growing global client base of family offices, high net worth individuals, institutions and fund of hedge funds. Salida said they are also looking to add an oil & gas analyst to their investment team in the upcoming weeks.
“We’re extremely excited about the opportunities we see for our private equity fund,” Courtenay Wolfe, President & CEO of Salida Capital, said. “It’s an area we’ve been planning on venturing into for awhile, and we are pleased to announce that we have already secured a $100 million seed investment for the fund prior to its official launch.”
"We manage our funds within a disciplined risk management framework that has predetermined limits on the percentage of privates that can be held in a fund,” Ms. Wolfe said. “Many of our investors have asked for a longer term time horizon for investing, wishing to access some of the great private investment opportunities we are seeing in the natural resources space.”
The anchor investment comes from Bill Gallacher, President and CEO of Avenir Capital. Gallacher has been involved with the start-up of a number of junior energy companies in Calgary and currently sits on the board of directors of Athabasca Oil Sands Corporation, as well as Maxim Power Corp., Mahalo Energy Ltd., Black Diamond Group Inc. and Avenir Diversified Income Trust.
“My relationship with Salida goes back many years. I’m a huge supporter and friend of the firm and am optimistic about the future of this relationship.” Gallacher said.
Salida Capital manages approximately $650 million for a growing global client base of family offices, high net worth individuals, institutions and fund of hedge funds. Salida said they are also looking to add an oil & gas analyst to their investment team in the upcoming weeks.
14 Apr 2010
Hedge Fund Seeder Partners With UK Statistical Research Laboratory
HedgeCo.net - Hedge fund seeder, Revere Capital Advisors LLC has launched an equity partnership with Statistical Research Laboratory (SRL), a UK based technology company.
New York, London and Singapore based, Revere was founded by former Man Group CFO Dan Barnett, as well as other former senior executives of hedge fund Man Group, including Harvey McGrath and Michael Stone.
“Revere is delighted to be partnering with SRL, a company that is at the forefront of the institutionalization of the asset management industry." Barnett said, "The partnership allows Revere and our clients to monitor investments on a real time basis as well as respond to the increasing demand of clients requesting a managed account solution.”
Revere currently provides capital, advisory expertise, sales and distribution and technology infrastructure to its partner hedge fund managers.
Current Revere partner managers include: Dickson Capital Management, a European long/short equity fund based in London, Broadmark Asset Management, a tactical allocation long/short equity fund based in San Francisco and Bayswater Asset Management, a systematic global macro manager also based in San Francisco.
New York, London and Singapore based, Revere was founded by former Man Group CFO Dan Barnett, as well as other former senior executives of hedge fund Man Group, including Harvey McGrath and Michael Stone.
“Revere is delighted to be partnering with SRL, a company that is at the forefront of the institutionalization of the asset management industry." Barnett said, "The partnership allows Revere and our clients to monitor investments on a real time basis as well as respond to the increasing demand of clients requesting a managed account solution.”
Revere currently provides capital, advisory expertise, sales and distribution and technology infrastructure to its partner hedge fund managers.
Current Revere partner managers include: Dickson Capital Management, a European long/short equity fund based in London, Broadmark Asset Management, a tactical allocation long/short equity fund based in San Francisco and Bayswater Asset Management, a systematic global macro manager also based in San Francisco.
12 Apr 2010
UCITS Hedge Fund Strategy Index Gains 0,79% in April
HedgeCo News - After a strong performance in March the UCITS Hedge Fund Strategy Index showed no signs of weakness in the first week of April (by business day 5, April 8th 2010).
The broad index gained 0,79% as every strategy was positive, the most successful being Credit (1,99%), Global Macro (1,81%) and Convertible (1,29%). These three strategies continue to be the most successful strategies in 2010, bringing the UCITS HFS Index to a year to date performance of 3,04%.
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 ($13.5 million) 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 broad index gained 0,79% as every strategy was positive, the most successful being Credit (1,99%), Global Macro (1,81%) and Convertible (1,29%). These three strategies continue to be the most successful strategies in 2010, bringing the UCITS HFS Index to a year to date performance of 3,04%.
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 ($13.5 million) 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.
LandColt Launches Mutual Fund Model Focused on Precious Metals
Hedgeco News - Alternative trading solutions expert, LandColt Trading, LLC has launched a new investment model, The LandColt Trading Precious Metals Model, which will concentrate on the gold market. The new model capture returns on the upside, and downside, of the market, while emulating the Dow Jones Precious Metals Index.
“We have received many inquiries from investors and traders asking us to launch additional trading models,” said Todd M. Schoenberger, Managing Director of LandColt Trading, LLC. “The success of our Oil & Gas Model really helped incorporate the same investment philosophy into other sectors. We believe the new Precious Metals Model can help investors who wish to incorporate a gold methodology into their portfolios.”
The Precious Metals Model uses the same investment logic as its cousin, the LandColt Trading Oil & Gas Model, which has posted a year-to-date return of 20.80% through April 7th. The official start date for the new Precious Metals Model was April 1st, and it has a return of 9.01% through April 7th.
The LandColt Trading Precious Metals Model uses only three no-load mutual funds, all of which permit frequent trading without penalty. The three funds, all created by the ProFunds Mutual Fund family, are as follows:
1. ProFunds Precious Metals UltraSector Fund (PMPIX)
2. ProFunds Short Precious Metals Fund (SPPIX)
3. ProFunds U.S. Government Plus Bond Fund (GVPIX)
LandColt Trading's mission is to proactively and ethically offer trading solutions for a client's "explore" investments with a passion for calculated risk-taking and thorough due diligence. The firm’s core product is its LandColt Trading Oil & Gas Model, which sells its trading signal and can be purchased as a subscription service.
“We have received many inquiries from investors and traders asking us to launch additional trading models,” said Todd M. Schoenberger, Managing Director of LandColt Trading, LLC. “The success of our Oil & Gas Model really helped incorporate the same investment philosophy into other sectors. We believe the new Precious Metals Model can help investors who wish to incorporate a gold methodology into their portfolios.”
The Precious Metals Model uses the same investment logic as its cousin, the LandColt Trading Oil & Gas Model, which has posted a year-to-date return of 20.80% through April 7th. The official start date for the new Precious Metals Model was April 1st, and it has a return of 9.01% through April 7th.
The LandColt Trading Precious Metals Model uses only three no-load mutual funds, all of which permit frequent trading without penalty. The three funds, all created by the ProFunds Mutual Fund family, are as follows:
1. ProFunds Precious Metals UltraSector Fund (PMPIX)
2. ProFunds Short Precious Metals Fund (SPPIX)
3. ProFunds U.S. Government Plus Bond Fund (GVPIX)
LandColt Trading's mission is to proactively and ethically offer trading solutions for a client's "explore" investments with a passion for calculated risk-taking and thorough due diligence. The firm’s core product is its LandColt Trading Oil & Gas Model, which sells its trading signal and can be purchased as a subscription service.
9 Apr 2010
Is Cyprus Missing From Your Global Footprint? New strategies for multi Jurisdiction management
HedgeCo Blogs - The Cyprus Embassy Trade Center is hosting a seminar: "New strategies for multi Jurisdiction management", on Wednesday, April 14, 2010 at the Harvard Club of New York.
A recent UN report calls Cyprus “the forerunner model for the future of corporate holding jurisdictions and international business centers.” Cyprus, is a clearly defined leader in global commerce that gives you unprecedented transparency and stability to respond to the new realities of today's marketplace.
Seminar Agenda:
* 1. Cyprus as an Intermediate Jurisdiction - Considerations for U.S. investors when investing through Cyprus:
- Uses of jurisdictions as related to corporate activities
- Tax benefits of Cyprus Based Funds
- Fund Structures
- Cyprus as a central platform solution for Multinational
* Administrative issues and solutions:
- Addressing the current issues of administration facing MNC s and Hedge Funds
* Issues of Taxation in a multi jurisdiction solution
* Legal framework
* Administrative requirements as related to Hedge Funds
- Defining the capacity of Cyprus as a central administrative hub within the global footprint of your company
This private event is an opportunity to meet with leading global legal, administrative and corporate structure specialists, defining relevant multi jurisdiction strategies, tax efficiencies, opportunities for minimizing costs and limiting liability.
Panelists include:
* Michael F. Mavrides, partner: Bingham McCutchen LLP
Named one of the leading up-and-coming attorneys in the U.S., The Lawdragon 500 New Stars, New Worlds Mike Mavrides is a Member of the American Bar Association and New York State Bar Association and focuses on working with hedge funds. His practice includes counselling domestic and offshore private investment funds, funds of funds, and other pooled investment vehicles, including general equity funds, arbitrage funds, market neutral, small cap, global investment and emerging market funds, distressed debt funds, multi-manager funds, group trusts for employee benefit plans and commodity pools.
* Dr. Christodoulos G. Pelaghias, Attorney-at-Law, Law Offices of Christodoulos G. Pelaghias
Dr. Pelaghias holds a postgraduate degree in International Affairs, as well as J.D and Ph.D. degrees (in Law and Political Science) from Columbia University. He is admitted to practice Law in New York and Cyprus. He served as adviser to the Cyprus Mission at the UN, is a fellow of the World Policy Institute in New York and the Western European Institute of Columbia University.
The Law Offices of Chr. G. Pelaghias & Co is a Cyprus based law firm which dates back to the early 1950s. The firm’s main practise areas are corporate law, international taxation, finance law and EU-law. Pelaghias & Co focuses exclusively on international clients, and the firm has a long history of accommodating clients despite geographic boundaries or complexity.
Seaward Management Ltd. is a corporate management firm established by Pelaghias & Co in 1986 with a broad scope of Administrative and management services that include corporate and tax planning for a wide spectrum of clients. Seaward was one of the first service providers in Cyprus to set-up and manage holding and investment structures in Russia and the NIS on behalf of major U.S. investment funds. In 1999 Seaward also became the first Cypriot company to list a foreign public company on the Cyprus Stock Exchange.
A recent UN report calls Cyprus “the forerunner model for the future of corporate holding jurisdictions and international business centers.” Cyprus, is a clearly defined leader in global commerce that gives you unprecedented transparency and stability to respond to the new realities of today's marketplace.
Seminar Agenda:
* 1. Cyprus as an Intermediate Jurisdiction - Considerations for U.S. investors when investing through Cyprus:
- Uses of jurisdictions as related to corporate activities
- Tax benefits of Cyprus Based Funds
- Fund Structures
- Cyprus as a central platform solution for Multinational
* Administrative issues and solutions:
- Addressing the current issues of administration facing MNC s and Hedge Funds
* Issues of Taxation in a multi jurisdiction solution
* Legal framework
* Administrative requirements as related to Hedge Funds
- Defining the capacity of Cyprus as a central administrative hub within the global footprint of your company
This private event is an opportunity to meet with leading global legal, administrative and corporate structure specialists, defining relevant multi jurisdiction strategies, tax efficiencies, opportunities for minimizing costs and limiting liability.
Panelists include:
* Michael F. Mavrides, partner: Bingham McCutchen LLP
Named one of the leading up-and-coming attorneys in the U.S., The Lawdragon 500 New Stars, New Worlds Mike Mavrides is a Member of the American Bar Association and New York State Bar Association and focuses on working with hedge funds. His practice includes counselling domestic and offshore private investment funds, funds of funds, and other pooled investment vehicles, including general equity funds, arbitrage funds, market neutral, small cap, global investment and emerging market funds, distressed debt funds, multi-manager funds, group trusts for employee benefit plans and commodity pools.
* Dr. Christodoulos G. Pelaghias, Attorney-at-Law, Law Offices of Christodoulos G. Pelaghias
Dr. Pelaghias holds a postgraduate degree in International Affairs, as well as J.D and Ph.D. degrees (in Law and Political Science) from Columbia University. He is admitted to practice Law in New York and Cyprus. He served as adviser to the Cyprus Mission at the UN, is a fellow of the World Policy Institute in New York and the Western European Institute of Columbia University.
The Law Offices of Chr. G. Pelaghias & Co is a Cyprus based law firm which dates back to the early 1950s. The firm’s main practise areas are corporate law, international taxation, finance law and EU-law. Pelaghias & Co focuses exclusively on international clients, and the firm has a long history of accommodating clients despite geographic boundaries or complexity.
Seaward Management Ltd. is a corporate management firm established by Pelaghias & Co in 1986 with a broad scope of Administrative and management services that include corporate and tax planning for a wide spectrum of clients. Seaward was one of the first service providers in Cyprus to set-up and manage holding and investment structures in Russia and the NIS on behalf of major U.S. investment funds. In 1999 Seaward also became the first Cypriot company to list a foreign public company on the Cyprus Stock Exchange.
7 Apr 2010
CalSTRS Launch 3-Year Hedge Fund Pilot Project
HedgeCo News - The California State Teachers’ Retirement System (CalSTRS) is looking to hire a hedge fund consultant. CalSTRS said they are seeking a consultant to help select, monitor and assess hedge fund managers for a global macro strategy the fund will be undertaking.
CalSTRS is the second largest public pension fund in the United States. The selected firm will help the $132.5 billion public pension fund initiate, monitor and assess a global macro hedge fund strategy for its new absolute return asset class. The strategy will undergo an incubation period of not more than three years.
CalSTRS staff will work with the consultant to select three to six hedge fund managers who will invest a $200 million commitment in global macro strategies. Within the three-year period, the CalSTRS board will determine whether to expand or terminate the strategy.
During the three-year period, the global macro hedge fund strategy will be part of the innovation portfolio, which is charged with incubating new investment opportunities outside the traditional asset classes that CalSTRS currently uses. The purpose is to try out new investment strategies and to determine their success before committing large dollar amounts to them.
CalSTRS is the second largest public pension fund in the United States. The selected firm will help the $132.5 billion public pension fund initiate, monitor and assess a global macro hedge fund strategy for its new absolute return asset class. The strategy will undergo an incubation period of not more than three years.
CalSTRS staff will work with the consultant to select three to six hedge fund managers who will invest a $200 million commitment in global macro strategies. Within the three-year period, the CalSTRS board will determine whether to expand or terminate the strategy.
During the three-year period, the global macro hedge fund strategy will be part of the innovation portfolio, which is charged with incubating new investment opportunities outside the traditional asset classes that CalSTRS currently uses. The purpose is to try out new investment strategies and to determine their success before committing large dollar amounts to them.
6 Apr 2010
Goldman Sachs Invests In $4 Billion Hedge Fund
Goldman Sachs’s Petershill Fund Offshore LP, a $1 billion fund set up buy hedge fund shares has bought a minority stake in a $4 billion hedge fund, according to a Bloomberg report.
The New York hedge fund, Level Global Investors LP., founded by David Ganek, bets on the global rise and fall of stock prices employing long/short strategy to make its investments. The firm typically invests in technology and financial sectors. Level Global Investors was founded in 2003 and is based in Greenwich, Connecticut with an additional office in New York, New York.
“We believe this investment by Petershill is an important milestone in the continued development of Level Global’s investment management platform as an institutional quality business,” managing partners David Ganek and Anthony Chiasson said in a letter to shareholders, which was first published by Bloomberg news.
1 Apr 2010
Cayman Islands & Australia Sign Tax Information Exchange Agreement
HedgeCo Blogs - The Cayman Islands signed its fifteenth tax information exchange agreement with Australia on Tuesday, during a ceremony held at the Australian embassy in Washington, D.C.
“The Cayman Islands Government is pleased to have signed this agreement with our Australian counterparts and we look forward to many years of cooperation between our two countries as part of our global commitment to upholding international standards of tax transparency and accountability,” said the Premier, the Honourable W. McKeeva Bush.
The Premier was accompanied at the signing by three members of the Cayman Islands TIEA negotiating team: The Honourable Samuel Bulgin, Attorney General, Mr George McCarthy, Chairman of the Cayman Islands Monetary Authority, and; Mrs Michelle Bahadur, Director of the Financial Services Secretariat, Ministry of Finance.
“We believe this agreement will reinforce an already solid relationship that exists between Australia and the Cayman Islands, as Cayman’s excellent professional infrastructure, effective legal and regulatory framework and stable business environment are well-known amongst Australian private equity and hedge fund firms.” the Premier, said.
The Cayman Islands is successfully concluding negotiations with several OECD and G-20 countries and the Government anticipates signing a number of additional agreements over the coming months.
GreenTech and the Obama Budget
New York (HedgeCo.net) – GreenWorld Capital reports: “President Obama has put his weight behind a new budget that sends a clear message: despite Congressional gridlock, the administration will push forward on cleantech. The budget reflects Obama’s promise to triple US cleantech investment over the next four years as well as his G20 pledge to phase out fossil fuel subsidies. Cleantech has become a centerpiece of the Obama budget and the administration has made it clear that it will use the president’s veto power to get this budget passed. “
Following is a summary by agency:
- Department of Energy: $3-5 billion in loan guarantees for energy efficiency and renewable energy, $4.7 billion in cleantech investment and $144 million for smart-grid research;
- Department of the Interior: $73 million for fast-tracking permits for renewable energy projects on federal lands, with a goal of offering permits for at least 9,000 megawatts of new solar, wind, and geothermal electricity by the end of 2011, plus $85 million to foster 14,000 new green jobs;
- Department of Transportation: $530 million for sustainable transportation; and
- Environmental Protection Agency: $21 million to implement the Mandatory Greenhouse Gas Reporting Rule and $56 million to address climate change through regulatory initiatives.
The biggest winners over last year’s budget are solar, GreenWorld Capital says, wind and geothermal, which will see annual increases in the range of 25%-50%. The big loser will be petroleum. The budget eliminates $36.5 billion in tax breaks to the oil and natural gas industry and cuts $2.3 billion for the coal sector between 2011 and 2020. In 2008, the Senate curtailed Obama’s attempts to cut petroleum subsidies. However, this year’s emphasis on fiscal responsibility gives Obama cover to fight the petroleum lobby. The other rallying point is US economic recovery. Obama has argued that cleantech investment will fuel US economic growth, a message underscored in his 2010 State of the Union Address.
Meridian Hedge Funds Lose Case Against Madoff 's "Feeder Fund" Auditor
HedgeCo News - The U.S. District Court in Manhattan has ruled that KPMG LLP cannot be sued for its ties with a hedge fund which was found to be a "feeder fund" for Madoff.
The accounting firm won dismissal yesterday, "Because it lacked actual intent to deceive, manipulate, or defraud the investors in the funds that brought the suit." Judge Thomas Griesa said, according to a Reuters report.
KPMG audited hedge fund manager Tremont Partners, which Meridian Horizon Fund and other affiliated hedge funds claim received fees for investing enormous amounts of money with Madoff, Reuters said.
The Meridian hedge funds claim that the auditors should have noticed something wrong, as Tremont lost more than $3 billion investing in the ponzi scheme. However, the Judge ruled, that, "Merely alleging that the auditor had access to the information by which it could have discovered the fraud is not sufficient."
The accounting firm won dismissal yesterday, "Because it lacked actual intent to deceive, manipulate, or defraud the investors in the funds that brought the suit." Judge Thomas Griesa said, according to a Reuters report.
KPMG audited hedge fund manager Tremont Partners, which Meridian Horizon Fund and other affiliated hedge funds claim received fees for investing enormous amounts of money with Madoff, Reuters said.
The Meridian hedge funds claim that the auditors should have noticed something wrong, as Tremont lost more than $3 billion investing in the ponzi scheme. However, the Judge ruled, that, "Merely alleging that the auditor had access to the information by which it could have discovered the fraud is not sufficient."
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