Search This Blog

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.

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.

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.