HedgeCo News - Opalesque has released the 32nd issue in a series of regional roundtable forums - the 2010 Opalesque West Coast Roundtable. The 25 page Roundtable publication covers “Armageddon” strategies and how plan sponsors have changed their game during the past 18 months.
"All we did was provide huge amounts of liquidity." John Burbank from Passport Capital said regarding the massive deficits run up in an effort to stabilize the markets and economies, "The markets are as vulnerable to financial shocks and at least as highly leveraged than they were before the financial crisis. The Fed has more than doubled its balance sheet and will have to exit markets at some point or its legitimacy will be called into question".
Burbank added that a number of people have asked Passport to design funds comprised of macro trades that would help them hedge against systemic risks.
Jay Gould from Pillsbury also helped creating distaster insurance or “armageddon strategy” funds which work under the premise that U.S. will experience a very difficult time over the next several years, “including hyper-inflation, the abandonment of the U.S. dollar as the world’s reserve currency, further complications associated with our huge deficit spending, and a rush toward hard assets.”
The Roundtable discussion also includes:
• Overview of the latest products and research from funds and CTAs on intermarket correlations and quantitative trading
• A discussion on the impact the regulatory changes will have on the markets: How will mandating more OTC products to clear/trade on an exchange impact liquidity? What is more important in a derivatives contract - liquidity or flexibility?
• The democratization of alternatives: More funds using the 1940 Act format will be offering real CTA strategies with daily liquidity
• Running a hedge fund from the West Coast: Why this location counts and where West beats the East Coast.
The Roundtable was sponsored by the CME Group and the Opalesque 2010 Roundtable Series Sponsors Custom House Group and Taussig Capital. The following West Coast based experts participated:
• John Burbank, Managing Member and Chief Investment Officer, Passport Capital
• Jay Gould, Partner, Pillsbury
• Jeremy Evnine, President, Evnine & Associates, Inc.
• Matt Osborne, Executive Vice President & CIO, Altegris
• Ranjit Sufi, Manging Director, Nuveen
• Rishi Narang, Founding Principal, Telesis Capital
• Tina Lemieux, Managing Director of Hedge Fund and Broker Services, CME Group
• Tom Shanks, Founder and CEO, Hawksbill
Matthias Knab, founder of Opalesque and internationally recognized expert on hedge funds and alternatives, moderates the Opalesque Roundtables.
4 Jun 2010
Pastor's Hedge Fund Fraud Verdict Upheld
HedgeCo news - A Colorado Springs pastor found guilty in 2008 of hedge fund fraud lost his appeal in a Court yesterday according to the Colorado Springs Gazette.
The pastor, Douglas Alan Scott, was charged with taking part in a $12 million hedge fund scam, more than 400 investors were solicited from his parish for a fraudulent hedge fund, XL Capital Partners Inc.
The conviction was upheld in a 14-page, three-judge panel, who unanimously upheld the jury’s guilty verdict on charges of theft and securities fraud, the paper reported.
The appeal was held because the defense alleged flaws in the jury instruction, the evidence presented and in the prosecution's closing arguments. The panel dismissed the arguments, saying the errors were insignificant.
Scott is sentenced to 15 years probation and ordered to pay $1.4 million in restitution.
The pastor, Douglas Alan Scott, was charged with taking part in a $12 million hedge fund scam, more than 400 investors were solicited from his parish for a fraudulent hedge fund, XL Capital Partners Inc.
The conviction was upheld in a 14-page, three-judge panel, who unanimously upheld the jury’s guilty verdict on charges of theft and securities fraud, the paper reported.
The appeal was held because the defense alleged flaws in the jury instruction, the evidence presented and in the prosecution's closing arguments. The panel dismissed the arguments, saying the errors were insignificant.
Scott is sentenced to 15 years probation and ordered to pay $1.4 million in restitution.
People Moves: Kathryn Graham Joins London Board Of 100 Women In Hedge Funds
HedgeCo News - Kathryn Graham has been appointed to the 100 Women in Hedge Fund's London Board, a non-profit organization for professionals in the alternative investments industry.
"I joined 100 Women in Hedge Funds in 2008 as a member because of its dedication to providing educational seminars, networking events and philanthropy work and now I look forward to contributing as a London Board member." Ms. Graham said "I have been very impressed with both the quality and creativity of the organisation's work and look forward to building on this success".
Ms. Graham is a Director of BT Pension Scheme Management Limited, the pensions advisory arm of the BT Pension Scheme, the largest in the UK. She joined BTPSM in 2004 to help establish a new team mandated to invest up to 5% of the BT Scheme directly into single manager hedge funds.
In 2007, she took responsibility for Manager Selection across the BT scheme before moving in 2009 to set up a new team tasked with managing Liability Risk. She has more than 15 years experience in capital markets and hedge funds both as an end buyer and structurer. She began her career at SG Warburg in 1994 and also worked at UBS and Progressive Alternative Investments before joining BTPSM. She was educated at Edinburgh University, where she was awarded an MA in Economics and Mathematics.
Ms. Graham is a member of the BTPSM Investment Committee, through which she is fully involved in all aspects of the scheme’s investments. She has a special interest in improving the treatment of investors in offshore vehicles and most recently has been heavily involved in lobbying for changes to the EU Alternatives Directive alongside other like-minded investors. She is a Trustee of the Hedge Fund Standards Board, a Director of a number of BTPSM offshore vehicles, is an occasional board member at the UNPRI, and was one of the Hedge Fund Journal’s “50 Leading Women in Hedge Funds”.
Ms. Graham is the seventh member of its London Board. She joins an already well established London board that includes London Board Chair - Effie Datson, Product Head of the dbSelect Platform for Deutsche Bank; London Board Vice Chair - Carole Philippe, Global General Counsel, Aviva Investors; Treasurer - Olivia Bernard, CFO, Massena Capital Partners; Philanthropy Board Champion - Kristen Weldon (Eshak), Managing Director, The Blackstone Group; Swiss Board Champion - Claire Smith, Research Analyst, Partner, Albourne Partners Limited, and Anne Popkin, Chair of the Board of 100WHF Association. The Board manages 2,000 members in London, and has extended its European reach to Paris, Geneva and Zurich. Amanda Pullinger serves as the organisation’s global Executive Director.
"I joined 100 Women in Hedge Funds in 2008 as a member because of its dedication to providing educational seminars, networking events and philanthropy work and now I look forward to contributing as a London Board member." Ms. Graham said "I have been very impressed with both the quality and creativity of the organisation's work and look forward to building on this success".
Ms. Graham is a Director of BT Pension Scheme Management Limited, the pensions advisory arm of the BT Pension Scheme, the largest in the UK. She joined BTPSM in 2004 to help establish a new team mandated to invest up to 5% of the BT Scheme directly into single manager hedge funds.
In 2007, she took responsibility for Manager Selection across the BT scheme before moving in 2009 to set up a new team tasked with managing Liability Risk. She has more than 15 years experience in capital markets and hedge funds both as an end buyer and structurer. She began her career at SG Warburg in 1994 and also worked at UBS and Progressive Alternative Investments before joining BTPSM. She was educated at Edinburgh University, where she was awarded an MA in Economics and Mathematics.
Ms. Graham is a member of the BTPSM Investment Committee, through which she is fully involved in all aspects of the scheme’s investments. She has a special interest in improving the treatment of investors in offshore vehicles and most recently has been heavily involved in lobbying for changes to the EU Alternatives Directive alongside other like-minded investors. She is a Trustee of the Hedge Fund Standards Board, a Director of a number of BTPSM offshore vehicles, is an occasional board member at the UNPRI, and was one of the Hedge Fund Journal’s “50 Leading Women in Hedge Funds”.
Ms. Graham is the seventh member of its London Board. She joins an already well established London board that includes London Board Chair - Effie Datson, Product Head of the dbSelect Platform for Deutsche Bank; London Board Vice Chair - Carole Philippe, Global General Counsel, Aviva Investors; Treasurer - Olivia Bernard, CFO, Massena Capital Partners; Philanthropy Board Champion - Kristen Weldon (Eshak), Managing Director, The Blackstone Group; Swiss Board Champion - Claire Smith, Research Analyst, Partner, Albourne Partners Limited, and Anne Popkin, Chair of the Board of 100WHF Association. The Board manages 2,000 members in London, and has extended its European reach to Paris, Geneva and Zurich. Amanda Pullinger serves as the organisation’s global Executive Director.
3 Jun 2010
Credit Suisse: Hedge Funds Post Negative Returns in May
HedgeCo News - Hedge fund performance was negative across most strategies in May, according to Jordan Drachman, Head of Research for Alternative Beta Strategies at Credit Suisse.
"The Credit Suisse Liquid Alternative Beta Index (CSLAB) generated negative performance in May, returning -2.64% for the month, bringing year-to-date performance to +0.27%." Dr. Drachman said, "All four Liquid Alternative Beta (LAB) sector indices also posted negative performance in May, suggesting that hedge fund managers across different strategies suffered as a result of the month's increased market volatility. Despite negative returns, hedge funds appear to have outperformed global equity markets, as represented by the MSCI World Index, which lost -9.91% in May and is down 7.59% year-to-date."
LAB is a series of indices that seek to replicate the aggregate return profiles of alternative investment strategies using liquid, tradable instruments that are selected and weighted using an objective and transparent rules-based methodology. An algorithm determines the appropriate factors and weightings employed in seeking to replicate the returns of specific hedge fund strategies.
"The Credit Suisse Liquid Alternative Beta Index (CSLAB) generated negative performance in May, returning -2.64% for the month, bringing year-to-date performance to +0.27%." Dr. Drachman said, "All four Liquid Alternative Beta (LAB) sector indices also posted negative performance in May, suggesting that hedge fund managers across different strategies suffered as a result of the month's increased market volatility. Despite negative returns, hedge funds appear to have outperformed global equity markets, as represented by the MSCI World Index, which lost -9.91% in May and is down 7.59% year-to-date."
LAB is a series of indices that seek to replicate the aggregate return profiles of alternative investment strategies using liquid, tradable instruments that are selected and weighted using an objective and transparent rules-based methodology. An algorithm determines the appropriate factors and weightings employed in seeking to replicate the returns of specific hedge fund strategies.
"Hedge Fund Manager" on the Run From FBI Arrested in Poland
HedgeCo News - An American fugitive, Alexsander Efrosman, also known as Alex Besser, has been arrested in Krakow, Poland, the Associated Press reports.
The Polish police arrested the Staten Island "hedge fund manager", who is wanted by the FBI for fraud and money laundering.
AP reports that the U.S. Commodity Futures Trading Commission alleges that Efrosman/Besser stole about $5 million from customers of two fraudulent hedge funds that he claimed to manage, Century Maxim Fund, Inc. and AJR Capital Inc.
The commission says that investors were shown fake financial statements for trades that never occurred and the fake earnings were used in the solicitation of new investors to his hedge funds.
The Polish police arrested the Staten Island "hedge fund manager", who is wanted by the FBI for fraud and money laundering.
AP reports that the U.S. Commodity Futures Trading Commission alleges that Efrosman/Besser stole about $5 million from customers of two fraudulent hedge funds that he claimed to manage, Century Maxim Fund, Inc. and AJR Capital Inc.
The commission says that investors were shown fake financial statements for trades that never occurred and the fake earnings were used in the solicitation of new investors to his hedge funds.
2 Jun 2010
Hedge Fund Nominees Wanted: 40 Under 40 M&A Advisor Recognition Awards
HedgeCo News - Nominations are now being accepted by for candidates for the 2010 40 Under 40 M&A Advisor Recognition Awards in the professional classifications of, Investment Banking, Private Equity, Hedge Fund, Law, Valuation, Research, among others.
Nominees will be evaluated by their career accomplishments and professional expertise. Consideration will be given to their community/charitable involvement and special circumstances.
The 2010 40 Under 40 M&A Advisor Recognition Awards will be announced on July 26, 2010 at the inaugural Awards Gala.
Eligible candidates are invited to submit a nomination directly or be nominated by their firm, associates, friends or family. To qualify, nominees must be under 40 years of age as of July 25, 2010. An independent committee of M&A industry business leaders will judge all nominations and finalists will be invited to attend the Awards Gala in Los Angeles.
Nominees will be evaluated by their career accomplishments and professional expertise. Consideration will be given to their community/charitable involvement and special circumstances.
The 2010 40 Under 40 M&A Advisor Recognition Awards will be announced on July 26, 2010 at the inaugural Awards Gala.
Eligible candidates are invited to submit a nomination directly or be nominated by their firm, associates, friends or family. To qualify, nominees must be under 40 years of age as of July 25, 2010. An independent committee of M&A industry business leaders will judge all nominations and finalists will be invited to attend the Awards Gala in Los Angeles.
Citigroup Hedge Fund Investors Awarded 100% Return on Losses
HedgeCo News - Investors in Citigroup's fixed-income municipal arbitrage hedge fund have been awarded over $550,000 by the Financial Industry Regulatory Authority (FINRA).
The Wall Street Journal reports that the MAT 3 Municipal Arbitrage Fund was "a risky investment that not only exposed investors to a 100% or more loss of principal, but was 2.5 times more volatile than the S&P 500 and 7.8 times more volatile than a traditional portfolio of municipal bonds," according to lawyers.
FINRA said that the bank understated the hedge fund's risk to investors and awarded a 100% return on the investors' losses.
"We are disappointed and disagree with this decision as it is inconsistent with other panels, which have dismissed similar claims." Citigroup Spokesman Alex Samuelson said in an interview with WSJ. Citigroup also said the hedge funds were offered only to clients who knew about and could afford the risks.
The Wall Street Journal reports that the MAT 3 Municipal Arbitrage Fund was "a risky investment that not only exposed investors to a 100% or more loss of principal, but was 2.5 times more volatile than the S&P 500 and 7.8 times more volatile than a traditional portfolio of municipal bonds," according to lawyers.
FINRA said that the bank understated the hedge fund's risk to investors and awarded a 100% return on the investors' losses.
"We are disappointed and disagree with this decision as it is inconsistent with other panels, which have dismissed similar claims." Citigroup Spokesman Alex Samuelson said in an interview with WSJ. Citigroup also said the hedge funds were offered only to clients who knew about and could afford the risks.
1 Jun 2010
UCITS Funds of Hedge Funds Monitor Launched
HedgeCo News - Investment manager Northern Trust is enhancing its hedge fund monitor with a new compliance module designed to support the demands of Undertakings for Collective Investment in Transferable Securities (UCITS) funds of hedge funds.
"Our latest hedge fund monitor enhancement helps fund managers running UCITS funds of hedge funds to monitor their compliance with restrictions on liquidity, concentration risk and exposure to underlying non-UCITS funds," said Ian Headon, senior product manager for alternative asset servicing at the $647.3 billion Northern Trust.
UCITS' are a set of European Union directives that allow collective investment schemes to operate throughout the European Union on the basis of a single authorisation from one member state. UCITS funds must operate within a strict regulatory framework that imposes standards on liquidity, concentration risk, transparency and other attributes.
"Northern Trust is committed to meeting the asset servicing needs of traditional and alternative investment managers, often with complex fund structures and multi-jurisdictional requirements," said Wilson Leech, head of Northern Trust's Global Fund Services business.
"Our latest hedge fund monitor enhancement helps fund managers running UCITS funds of hedge funds to monitor their compliance with restrictions on liquidity, concentration risk and exposure to underlying non-UCITS funds," said Ian Headon, senior product manager for alternative asset servicing at the $647.3 billion Northern Trust.
UCITS' are a set of European Union directives that allow collective investment schemes to operate throughout the European Union on the basis of a single authorisation from one member state. UCITS funds must operate within a strict regulatory framework that imposes standards on liquidity, concentration risk, transparency and other attributes.
"Northern Trust is committed to meeting the asset servicing needs of traditional and alternative investment managers, often with complex fund structures and multi-jurisdictional requirements," said Wilson Leech, head of Northern Trust's Global Fund Services business.
People Moves: Insparo Expands Hedge Fund Team
HedgeCo News - UK-based limited liability investment group, Insparo Asset Management, has appointed Man Investments’ Emma Robinson as Investor Relations Manager to the Africa and Middle East Fund, which has returned over 45% since the start of 2009.
The Africa and Middle East Fund has a range of hedge fund and emerging market investors in Europe, Middle East and the US. Emma will also take on responsibility for the firm’s investor communications and client liaison.
“The return our Africa and the Middle East strategy has made in the last 18 months has, unsurprisingly, drawn a lot of attention from investors." Jamie Allsopp, the fund's investment manager, said, "Frontier markets are in relatively robust fiscal positions when compared to their OECD counterparts, and the investment community is generally underweight this enormous growth opportunity. With the confluence of our historic returns and our optimistic outlook for our region we feel that it is the right time to increase our capabilities in client services.”
Before joining Insparo, Emma spent two years at Man Investments as an institutional sales assistant before heading up Man’s UK consultant relationship management. Prior to joining Man, Emma was with recruitment consultancy Venn Group.
The Africa and Middle East Fund has a range of hedge fund and emerging market investors in Europe, Middle East and the US. Emma will also take on responsibility for the firm’s investor communications and client liaison.
“The return our Africa and the Middle East strategy has made in the last 18 months has, unsurprisingly, drawn a lot of attention from investors." Jamie Allsopp, the fund's investment manager, said, "Frontier markets are in relatively robust fiscal positions when compared to their OECD counterparts, and the investment community is generally underweight this enormous growth opportunity. With the confluence of our historic returns and our optimistic outlook for our region we feel that it is the right time to increase our capabilities in client services.”
Before joining Insparo, Emma spent two years at Man Investments as an institutional sales assistant before heading up Man’s UK consultant relationship management. Prior to joining Man, Emma was with recruitment consultancy Venn Group.
28 May 2010
Hedge Funds & FoHFs Expect Competition
HedgeCo News - International hedge fund advisory firm, Rothstein Kass, released a survey report "A Call to Action" on key trends impacting the fund of funds sector. Findings suggest that the hedge fund industry expects intense competition for investment capital as firms work to enhance transparency.
Nearly half of survey respondents indicated that they anticipate increased competition from single-manager vehicles, and over 45 percent expect greater competition from institutional investors replicating fund of funds. As the sector confronts this challenge, 60 percent of fund of funds are providing greater transparency to investors in response to market conditions.
"The growth of the fund of funds sector was propelled by its ability to offer portfolio diversification, superior results consistent with specific risk profiles and to some extent, peace of mind. Though investor resolve was shaken by market events and high-profile incidents of malfeasance, the fund of funds industry was sustained by an institutional investment community that recognized that the fundamental benefits were unchanged by short-term market volatility," said Howard Altman, Co-CEO and Co-Managing Principal of Rothstein Kass.
"As they seek to raise new capital, however, fund of funds managers are finding that institutional investors are placing a greater emphasis on due diligence processes. By continuing to act institutional themselves, fund of funds can provide a window into their operating environment to restore investor confidence and effectively compete with single manager vehicles and fund of funds replication strategies that are more aggressively pursuing institutional assets."
Results were based on online and telephone interviews with 103 fund of fund managers and executives representing a total of 93 companies and 294 funds.
Rothstein Kass commissioned market research firm Infosurv to conduct the research to gain insight into the trends shaping the fund of funds space and the outlook for the future. 34 percent of participants' underlying funds reported assets under management under $50 million, with 36 percent reporting assets under management between $50 and $150 million. 19 percent of survey respondents indicated assets under management between $150 and $500 million, with the balance, 11 percent reporting assets under management over $500 million. Survey participation included but was not limited to Rothstein Kass clients.
Notable findings include:
-- 60 percent of respondents indicated that they are providing increased
transparency in response to market conditions
-- 58 percent of survey participants would consider lowering fees in
exchange for longer investment lock-up periods
-- 34 percent of fund of funds are providing increased liquidity in
response to market conditions
-- 47 percent of respondents suggested that of existing service
providers, they would be most likely to review or change their fund
administrator relationship this year
-- 25 percent of participants indicated that they would be most likely to
review or change their custodian, with 28 percent most likely to
review or change their auditor or legal counsel
"The institutional investment community's trust in the alternative investment sector has not been shattered, but it's fair to say it has been rattled. As they work to thoroughly address the market-driven demand for greater transparency, for many fund of funds, the dynamics of the relationship have changed," said Jeff Kollin, a Director in the Financial Services practice of the Rothstein Kass Business Advisory Services Group. "Fund of fund managers also understand that they will be judged, to a greater extent, on the quality of professional relationships. As a result alignment with reputable third-parties has become a key differentiator in the marketing of these investment vehicles."
Nearly half of survey respondents indicated that they anticipate increased competition from single-manager vehicles, and over 45 percent expect greater competition from institutional investors replicating fund of funds. As the sector confronts this challenge, 60 percent of fund of funds are providing greater transparency to investors in response to market conditions.
"The growth of the fund of funds sector was propelled by its ability to offer portfolio diversification, superior results consistent with specific risk profiles and to some extent, peace of mind. Though investor resolve was shaken by market events and high-profile incidents of malfeasance, the fund of funds industry was sustained by an institutional investment community that recognized that the fundamental benefits were unchanged by short-term market volatility," said Howard Altman, Co-CEO and Co-Managing Principal of Rothstein Kass.
"As they seek to raise new capital, however, fund of funds managers are finding that institutional investors are placing a greater emphasis on due diligence processes. By continuing to act institutional themselves, fund of funds can provide a window into their operating environment to restore investor confidence and effectively compete with single manager vehicles and fund of funds replication strategies that are more aggressively pursuing institutional assets."
Results were based on online and telephone interviews with 103 fund of fund managers and executives representing a total of 93 companies and 294 funds.
Rothstein Kass commissioned market research firm Infosurv to conduct the research to gain insight into the trends shaping the fund of funds space and the outlook for the future. 34 percent of participants' underlying funds reported assets under management under $50 million, with 36 percent reporting assets under management between $50 and $150 million. 19 percent of survey respondents indicated assets under management between $150 and $500 million, with the balance, 11 percent reporting assets under management over $500 million. Survey participation included but was not limited to Rothstein Kass clients.
Notable findings include:
-- 60 percent of respondents indicated that they are providing increased
transparency in response to market conditions
-- 58 percent of survey participants would consider lowering fees in
exchange for longer investment lock-up periods
-- 34 percent of fund of funds are providing increased liquidity in
response to market conditions
-- 47 percent of respondents suggested that of existing service
providers, they would be most likely to review or change their fund
administrator relationship this year
-- 25 percent of participants indicated that they would be most likely to
review or change their custodian, with 28 percent most likely to
review or change their auditor or legal counsel
"The institutional investment community's trust in the alternative investment sector has not been shattered, but it's fair to say it has been rattled. As they work to thoroughly address the market-driven demand for greater transparency, for many fund of funds, the dynamics of the relationship have changed," said Jeff Kollin, a Director in the Financial Services practice of the Rothstein Kass Business Advisory Services Group. "Fund of fund managers also understand that they will be judged, to a greater extent, on the quality of professional relationships. As a result alignment with reputable third-parties has become a key differentiator in the marketing of these investment vehicles."
Hedge Fund Adviser & Politician Charged in Fraud Case
HedgeCo News - Hedge fund adviser Kenneth Starr has been charged with investment fraud in an alleged $30 million scheme in which Andrew Stein, a former New York City politician, has also been described as an "associate", the Wall Street Journal reports.
Starr, who has advised Wesley Snipes and Goldie Hawn, was named in a criminal complaint filed by federal prosecutors, allegedly using his access to hedge funds and celebrities, to "burnish an image of trustworthiness", according to the Journal.
"The criminal complaint didn't name the alleged victims, but described them as an unnamed hedge fund manager and well-known philanthropist, an actress, a former executive of a talent agency, an elderly heiress and a jeweler who is a convicted felon." The paper reported.
The SEC said Starr provided investment adviser services to more than 30 high net worth individuals and has AUM over $700 million.
Starr remains detained while Stein, who is accused of making false statements to the IRS, was released on a $250,000 bond.
Starr, who has advised Wesley Snipes and Goldie Hawn, was named in a criminal complaint filed by federal prosecutors, allegedly using his access to hedge funds and celebrities, to "burnish an image of trustworthiness", according to the Journal.
"The criminal complaint didn't name the alleged victims, but described them as an unnamed hedge fund manager and well-known philanthropist, an actress, a former executive of a talent agency, an elderly heiress and a jeweler who is a convicted felon." The paper reported.
The SEC said Starr provided investment adviser services to more than 30 high net worth individuals and has AUM over $700 million.
Starr remains detained while Stein, who is accused of making false statements to the IRS, was released on a $250,000 bond.
26 May 2010
Comada Partners with Custom House to Deliver Online Transaction Tracking Platform for Hedge Fund Investors
HedgeCo News - Transaction technology developer Comada today announced that it has partnered with hedge fund administrator Custom House to launch a new platform for fund managers and their investors. Launched this week, the platform allows investors in hedge funds administered by Custom House to invest, track and receive investment and redemption confirmations electronically. Most importantly, it achieves this via browser-based architecture that precludes the need to download software to a desktop computer, seamlessly integrating with, and extending in-house legacy technology.
"The hedge fund industry has needed an application like this for some time now," said Rupert Vaughan Williams, Co-Founder of Comada. "We are delighted to be working with Custom House who are committed to best of breed technology. This platform significantly raises the bar for hedge fund investing. Users of this technology can now rely on robust infrastructure that electronically processes and reconciles transactions from a single reference point. It is specifically designed to minimise the operational risks of the day to day management of portfolios of alternative investments."
Comada specialises in designing and delivering transaction-based solutions for the managed assets industry, particularly hedge funds. Its core management team has been working together in the industry for almost two decades. It provides both bespoke and off-the-shelf solutions for hedge fund managers and their clients. Comada partnered with Custom House to deliver an advanced platform that would further integrate investors into the investment cycle and help reduce operational risk.
Dermot Butler, Chairman of hedge fund administrator Custom House commented: "We wanted to deliver a service to our customers which they could rely on. It is now possible for both managers and investors to track the progress of investments and redemptions electronically, real time, 24 hours a day. Thanks to our partnership with Comada, we believe we are the first hedge fund administrator to be able to offer this particular kind of service."
Custom House is responsible for the administration of more than $40 billion in hedge fund assets globally, across a range of different investment strategies. It has established its credentials as being a first mover and innovator in the arena of hedge fund administration.
"The hedge fund industry has needed an application like this for some time now," said Rupert Vaughan Williams, Co-Founder of Comada. "We are delighted to be working with Custom House who are committed to best of breed technology. This platform significantly raises the bar for hedge fund investing. Users of this technology can now rely on robust infrastructure that electronically processes and reconciles transactions from a single reference point. It is specifically designed to minimise the operational risks of the day to day management of portfolios of alternative investments."
Comada specialises in designing and delivering transaction-based solutions for the managed assets industry, particularly hedge funds. Its core management team has been working together in the industry for almost two decades. It provides both bespoke and off-the-shelf solutions for hedge fund managers and their clients. Comada partnered with Custom House to deliver an advanced platform that would further integrate investors into the investment cycle and help reduce operational risk.
Dermot Butler, Chairman of hedge fund administrator Custom House commented: "We wanted to deliver a service to our customers which they could rely on. It is now possible for both managers and investors to track the progress of investments and redemptions electronically, real time, 24 hours a day. Thanks to our partnership with Comada, we believe we are the first hedge fund administrator to be able to offer this particular kind of service."
Custom House is responsible for the administration of more than $40 billion in hedge fund assets globally, across a range of different investment strategies. It has established its credentials as being a first mover and innovator in the arena of hedge fund administration.
24 May 2010
Silk Invest To Launch Fronteir Fund Including Pakistan Reigon
HedgeCo News - Specialist asset management boutique Silk Invest has announced the launch of a new UCITS III frontier fund, The Silk Road Equities fund, which will invest in Africa, the Middle East and the Caucasus and Caspian region. The fund is to be launched later this year, according to hedge fund industry magazine, FundStrategy.
These regions have traditionally been shunned by emerging market funds as being too illiquid. "We have handled such illiquidity in the past with the award winning Silk Road Fixed Income fund, which covers the same geographies." Silk Invest said.
"Pakistan is the 27th largest economy in the world and still classified as a frontier market." Daniel Broby, the chief investment officer said. "Investment in the Caucasus and Caspian region have tended to focus on the oil and gas resources of the region. We, however, are focused on the opportunity afforded by the strong growth of the consumer."
The fund will have both institutional and retail share classes and will charge a 20% performance fee above a hurdle rate of 8%.
These regions have traditionally been shunned by emerging market funds as being too illiquid. "We have handled such illiquidity in the past with the award winning Silk Road Fixed Income fund, which covers the same geographies." Silk Invest said.
"Pakistan is the 27th largest economy in the world and still classified as a frontier market." Daniel Broby, the chief investment officer said. "Investment in the Caucasus and Caspian region have tended to focus on the oil and gas resources of the region. We, however, are focused on the opportunity afforded by the strong growth of the consumer."
The fund will have both institutional and retail share classes and will charge a 20% performance fee above a hurdle rate of 8%.
2 Year Sentence In Hedge Fund Fraud Case
HedgeCo News - Wall Street Journal reports that Mark Kurland, former partner at hedge fund New Castle Funds LLC was sentenced to over two years in prison. Kurland pled guilty to insider trading in January with connections to the Galleon/Rajaratnam case.
The insider trading case involves the employees of some of America’s best-known companies, including International Business Machines Corp, McKinsey & Co and Intel Capital, an arm of Intel Corp, and Danielle Chiesi, an executive at New Castle Funds LLC was also indicted on multiple counts of conspiracy and securities fraud.
At a hearing Friday, Judge Victor Marrero said, "He had a choice. As a leader of the financial industry, he could have led by law-abiding example. Instead, he chose to follow," the judge also said, according to WSJ, that Kurland surrendered "to a spree of the financial market's virtual mob mentality that nearly brought down this country's financial industry in the quest for ever bigger and faster gains."
The judge als ordered a forfeit of $900,000 in proceeds from the alleged scheme the Journal reported.
Kurland reports to prison on July 23.
The insider trading case involves the employees of some of America’s best-known companies, including International Business Machines Corp, McKinsey & Co and Intel Capital, an arm of Intel Corp, and Danielle Chiesi, an executive at New Castle Funds LLC was also indicted on multiple counts of conspiracy and securities fraud.
At a hearing Friday, Judge Victor Marrero said, "He had a choice. As a leader of the financial industry, he could have led by law-abiding example. Instead, he chose to follow," the judge also said, according to WSJ, that Kurland surrendered "to a spree of the financial market's virtual mob mentality that nearly brought down this country's financial industry in the quest for ever bigger and faster gains."
The judge als ordered a forfeit of $900,000 in proceeds from the alleged scheme the Journal reported.
Kurland reports to prison on July 23.
19 May 2010
Hedge Fund Industry Review: May 2010
HedgeCo News - North American hedge funds' assets under management crossed the $1 trillion mark for the first time since November 2008, the May 2010 Eurekahedge Report announced.
Global hedge funds' assets also exceeded the $1.5 trillion mark and are on track to surpass $1.75 trillion by year-end and distressed debt hedge funds saw 13th consecutive month of positive returns, up 50.34% since March 2009 the report said.
Japanese hedge funds gained 2.99% in the month and 7.23% YTD – the best April YTD returns since 2004. Winners of the Asian Hedge Fund Awards 2010 will be published on Eurekahedge, Friday, 21st May 2010.
The report details analyses and insights into the state of the hedge fund industry in recent months up to April through a comprehensive qualitative and quantitative presentation of the industry’s asset flows and performance, with a special feature on key trends in funds of hedge funds.
Global hedge funds' assets also exceeded the $1.5 trillion mark and are on track to surpass $1.75 trillion by year-end and distressed debt hedge funds saw 13th consecutive month of positive returns, up 50.34% since March 2009 the report said.
Japanese hedge funds gained 2.99% in the month and 7.23% YTD – the best April YTD returns since 2004. Winners of the Asian Hedge Fund Awards 2010 will be published on Eurekahedge, Friday, 21st May 2010.
The report details analyses and insights into the state of the hedge fund industry in recent months up to April through a comprehensive qualitative and quantitative presentation of the industry’s asset flows and performance, with a special feature on key trends in funds of hedge funds.
Hedge Fund Lawyers: SEC Proposes Stock-by-Stock Circuit Breaker Rule
HedgeCo News - The SEC is filing proposed rules under which they would pause trading in certain individual stocks if the price moves 10% or more in a five-minute period, according to hedge fund law firm Pillsbury Investment Funds.
In consultation with FINRA, the SEC wants to set uniform market-wide standards for individual securities in the S&P 500 Index that experience a rapid price movement, the attorneys said.
These proposed rules reflect a consensus that was achieved among the exchanges and FINRA after SEC Chairman Mary Schapiro convened a meeting of exchange leaders and FINRA at the SEC early last week. That meeting took place after the market dropped significantly and after approximately 30 S&P 500 Index stocks fell at least 10 percent in a five-minute period.
"The market disruption of May 6 was exacerbated by disparate trading rules and conventions across the exchanges, and that it is important that all the exchanges quickly reach a consensus on a set of uniform circuit breakers that would be triggered when needed." Chairman Schapiro said.
Under the proposed rules, which are subject to SEC approval following the completion of the comment period, trading in a stock would pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change in price over the preceding five minutes. The pause would give the markets the opportunity to attract new trading interest in an affected stock, establish a reasonable market price, and resume trading in a fair and orderly fashion. Initially, these new rules would be in effect on a pilot basis through Dec. 10, 2010.
The markets will use the pilot period to make appropriate adjustments to the parameters or operation of the circuit breaker as warranted based on their experience, and to expand the scope to securities beyond the S&P 500 (including ETFs) as soon as practicable.
The SEC intends to promptly publish the proposed rules for a 10-day public comment period, and determine whether to approve them shortly thereafter.
During the pilot period, Chairman Schapiro has asked the SEC staff to consider ways to address the risks of market orders and their potential to contribute to sudden price moves, as well as to consider steps to deter or prohibit the use by market makers of "stub" quotes, which are not intended to indicate actual trading interest.
The staff will study the impact of other trading protocols at the exchanges, including the use of trading pauses and self-help rules. The SEC staff also will continue to work with the exchanges and FINRA to improve the process for breaking erroneous trades, by assuring speed and consistency across markets.
"The SEC staff is working with the markets to consider recalibrating market-wide circuit breakers currently on the books — none of which were triggered on May 6. These circuit breakers apply across all equity trading venues and the futures markets," the Pillsbury Investment Funds attorneys concluded.
In consultation with FINRA, the SEC wants to set uniform market-wide standards for individual securities in the S&P 500 Index that experience a rapid price movement, the attorneys said.
These proposed rules reflect a consensus that was achieved among the exchanges and FINRA after SEC Chairman Mary Schapiro convened a meeting of exchange leaders and FINRA at the SEC early last week. That meeting took place after the market dropped significantly and after approximately 30 S&P 500 Index stocks fell at least 10 percent in a five-minute period.
"The market disruption of May 6 was exacerbated by disparate trading rules and conventions across the exchanges, and that it is important that all the exchanges quickly reach a consensus on a set of uniform circuit breakers that would be triggered when needed." Chairman Schapiro said.
Under the proposed rules, which are subject to SEC approval following the completion of the comment period, trading in a stock would pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change in price over the preceding five minutes. The pause would give the markets the opportunity to attract new trading interest in an affected stock, establish a reasonable market price, and resume trading in a fair and orderly fashion. Initially, these new rules would be in effect on a pilot basis through Dec. 10, 2010.
The markets will use the pilot period to make appropriate adjustments to the parameters or operation of the circuit breaker as warranted based on their experience, and to expand the scope to securities beyond the S&P 500 (including ETFs) as soon as practicable.
The SEC intends to promptly publish the proposed rules for a 10-day public comment period, and determine whether to approve them shortly thereafter.
During the pilot period, Chairman Schapiro has asked the SEC staff to consider ways to address the risks of market orders and their potential to contribute to sudden price moves, as well as to consider steps to deter or prohibit the use by market makers of "stub" quotes, which are not intended to indicate actual trading interest.
The staff will study the impact of other trading protocols at the exchanges, including the use of trading pauses and self-help rules. The SEC staff also will continue to work with the exchanges and FINRA to improve the process for breaking erroneous trades, by assuring speed and consistency across markets.
"The SEC staff is working with the markets to consider recalibrating market-wide circuit breakers currently on the books — none of which were triggered on May 6. These circuit breakers apply across all equity trading venues and the futures markets," the Pillsbury Investment Funds attorneys concluded.
18 May 2010
Hedge Fund Launch: QQP's Global Equity Strategies Fund
HedgeCo News - Luxembourg based Global Equity Strategies Fund (QQP) has launched operations today May 18th, 2010.
The new global long-short equity fund, has a member of the Hedge Fund Association (AIMA), TQ Capital Partners Limited (TQCP) as its investment advisor. The hedge fund
aims to achieve superior risk adjusted returns through a systematic investment strategy.
QQP is a Specialised Investment Fund (SIF) incorporated in Luxembourg as a SICAV and administered by Pictet & Cie (Europe) S.A. QQP is an open-end long-short equity investment fund authorised and regulated by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF).
"We are proud to advise QQP on investment strategies which aim to generate superior risk-adjusted returns and to assist in creating a leading investment fund." The managing partners of TQCP stated.
TQCP is a London based long-short equity fund advisor authorised and regulated by the UK Financial Services Authority (FSA). TQCP has a global investment approach, combining top-down macro-economic analysis with bottom-up investment principles. A combination of quantitative and qualitative risk-management measures is applied to protect invested funds.
The new global long-short equity fund, has a member of the Hedge Fund Association (AIMA), TQ Capital Partners Limited (TQCP) as its investment advisor. The hedge fund
aims to achieve superior risk adjusted returns through a systematic investment strategy.
QQP is a Specialised Investment Fund (SIF) incorporated in Luxembourg as a SICAV and administered by Pictet & Cie (Europe) S.A. QQP is an open-end long-short equity investment fund authorised and regulated by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF).
"We are proud to advise QQP on investment strategies which aim to generate superior risk-adjusted returns and to assist in creating a leading investment fund." The managing partners of TQCP stated.
TQCP is a London based long-short equity fund advisor authorised and regulated by the UK Financial Services Authority (FSA). TQCP has a global investment approach, combining top-down macro-economic analysis with bottom-up investment principles. A combination of quantitative and qualitative risk-management measures is applied to protect invested funds.
Chicago Hedge Fund Manager Showcase
HedgeCo.net - "We are very excited about the turnout for our Chicago Manager Showcase." Evan Rapoport, Co-Founder of HedgeCo Networks said, "We had a nice mix of high net worth investors, family offices, fund of funds and institutions."
Each manager had five minutes to introduce themselves to the entire room, before breaking down into smaller groups. The interaction between the hedge fund managers and guests was successful and both parties seemed to be totally engaged.
The keynote speaker, Rob Stein, gave a dissertation on the current climate of the economy. Other speakers at the event included Steve Hall from Lattice Capital Management, Lonny Bernath from Headline Capital Management, Kevin Lennil from Exagroup, Bruce Bernstein from Rockmore Capital Management, and Kurt Hovan from Hovan Capital Management.
After the presentations, hedge fund managers, hosts and speakers mingled during a networking hour. Enjoying excellent food and an open bar, the social aspect of the event lasted longer than planned.
"There ended up being an 11 to 1 ratio of investors to fund managers, this is something you just don't see at other similar conferences. Our managers also really seemed to enjoy sitting down face to face with small groups of investors, rather than presenting to the whole room at once." Rapoport said.
Each manager had five minutes to introduce themselves to the entire room, before breaking down into smaller groups. The interaction between the hedge fund managers and guests was successful and both parties seemed to be totally engaged.
The keynote speaker, Rob Stein, gave a dissertation on the current climate of the economy. Other speakers at the event included Steve Hall from Lattice Capital Management, Lonny Bernath from Headline Capital Management, Kevin Lennil from Exagroup, Bruce Bernstein from Rockmore Capital Management, and Kurt Hovan from Hovan Capital Management.
After the presentations, hedge fund managers, hosts and speakers mingled during a networking hour. Enjoying excellent food and an open bar, the social aspect of the event lasted longer than planned.
"There ended up being an 11 to 1 ratio of investors to fund managers, this is something you just don't see at other similar conferences. Our managers also really seemed to enjoy sitting down face to face with small groups of investors, rather than presenting to the whole room at once." Rapoport said.
17 May 2010
IMC Expands Investment Grade Credit Team
HedgeCo - Specialist asset management company, IMC asset management, announced the hiring of a team of four senior investment professionals, and the launch of investment grade corporate capability platform.
The investment grade platform consisting of a long/short and a long-only capability, it will be formally launched and open to clients on 1st June 2010.
The team joins from Lombard Odier Darier Hentsch (LODH). Rodrigo Araya, who joins IMCam as Head of Investment Grade Credit Strategies, was responsible for the entire fixed income business at LODH while continuing to directly head the credit business.
The other team members joining are Oscar Jansen (who joins as Senior Portfolio Manager), Robert Manning (Head of Investment Grade Credit analysis) and Henk Wiersma (Senior Investment Grade Credit Analyst), who were running several high performing credit mandates and funds at LODH.
“The addition of this highly experienced and successful team will significantly expand the scope of asset management credit strategies delivered by IMCam to our institutional and HNWI client base." Sander Nieuwland, CEO of IMCam commented, "We are delighted to welcome such high quality individuals, with a very strong nine year track record, and a shared vision of excellence. We believe credit is an important area of opportunity for investors and in these turbulent markets there is a greater need for talent and experience than ever."
IMCam, part of the IMC Group, established in 1998, is a specialist asset manager of European and US credit products, including distressed debt and asset-backed securities.
Other recent key hires which reinforce IMCam’s ambitious growth plans and expansion into new business areas include W. Gregory Drennen – Head of US Structured Debt (ex Clinton Group, Goldman Sachs and Citigroup), Jan-Hein Cremers – Head of Behavioural Quantitative Management (FDO Partners and State Street) and Vivina Berla – MD Business Development and Investor Relations (ex Merrill Lynch and Gartmore)
The investment grade platform consisting of a long/short and a long-only capability, it will be formally launched and open to clients on 1st June 2010.
The team joins from Lombard Odier Darier Hentsch (LODH). Rodrigo Araya, who joins IMCam as Head of Investment Grade Credit Strategies, was responsible for the entire fixed income business at LODH while continuing to directly head the credit business.
The other team members joining are Oscar Jansen (who joins as Senior Portfolio Manager), Robert Manning (Head of Investment Grade Credit analysis) and Henk Wiersma (Senior Investment Grade Credit Analyst), who were running several high performing credit mandates and funds at LODH.
“The addition of this highly experienced and successful team will significantly expand the scope of asset management credit strategies delivered by IMCam to our institutional and HNWI client base." Sander Nieuwland, CEO of IMCam commented, "We are delighted to welcome such high quality individuals, with a very strong nine year track record, and a shared vision of excellence. We believe credit is an important area of opportunity for investors and in these turbulent markets there is a greater need for talent and experience than ever."
IMCam, part of the IMC Group, established in 1998, is a specialist asset manager of European and US credit products, including distressed debt and asset-backed securities.
Other recent key hires which reinforce IMCam’s ambitious growth plans and expansion into new business areas include W. Gregory Drennen – Head of US Structured Debt (ex Clinton Group, Goldman Sachs and Citigroup), Jan-Hein Cremers – Head of Behavioural Quantitative Management (FDO Partners and State Street) and Vivina Berla – MD Business Development and Investor Relations (ex Merrill Lynch and Gartmore)
Man Merger Launches $63 Billion Hedge Fund
HedgeCo News - Hedge fund giant Man Group has created a hedge fund managing $63 billion after acquiring rival $23.7 billion hedge fund GLG Partners in a $1.6 billion in deal.
“I am delighted to announce Man's proposed acquisition of GLG to create a diversified, world-leading alternative investment manager with $63 billion in funds under management." Jon Aisbitt, Chairman of Man, said, "It is central to Man's stated strategy of acquiring high quality discretionary investment management capability to broaden our range of diversified, liquid strategies for the benefit of our investors."
The acquisition will be implemented by way of a merger, creating a diversified, world-leading alternative investment manager with an emphasis on liquid strategies, positioned to benefit from the expected continued growth in onshore hedge funds globally.
"The structure of the transaction allows us to retain vital focus and commitment to performance whilst integrating Man's leading structuring and distribution capabilities to the advantage of investors and shareholders alike." Peter Clarke, Chief Executive of Man, said, "We have deployed surplus capital in an earnings enhancing transaction to access savings, balance our investment strategies, and created a powerful business from which we can grow organically.
The deal will be closed by the end of September.
“I am delighted to announce Man's proposed acquisition of GLG to create a diversified, world-leading alternative investment manager with $63 billion in funds under management." Jon Aisbitt, Chairman of Man, said, "It is central to Man's stated strategy of acquiring high quality discretionary investment management capability to broaden our range of diversified, liquid strategies for the benefit of our investors."
The acquisition will be implemented by way of a merger, creating a diversified, world-leading alternative investment manager with an emphasis on liquid strategies, positioned to benefit from the expected continued growth in onshore hedge funds globally.
"The structure of the transaction allows us to retain vital focus and commitment to performance whilst integrating Man's leading structuring and distribution capabilities to the advantage of investors and shareholders alike." Peter Clarke, Chief Executive of Man, said, "We have deployed surplus capital in an earnings enhancing transaction to access savings, balance our investment strategies, and created a powerful business from which we can grow organically.
The deal will be closed by the end of September.
5 May 2010
Public Pension Plans to Top Corporate Plans In US Hedge Fund Allocation
HedgeCo News – Agecroft Partners predicts that United States public pension funds will increase their allocation to hedge funds at faster rate than corporate pension plans due to sweeping new corporate pension legislation that is just beginning to take hold in the industry.
“The new legislation does not directly impact public pension funds.” Don Steinbrugge, Managing Member at Agecroft Partners, LLC, said in an interview this morning, “Corporate pension fund allocations have historically targeted a higher risk and return profile than public pension funds, but that may be changing due to the passage of the 2006 Pension Protection Act that became effective in 2008.”
This was the most dramatic pension legislation in the US since the passage of ERISA back in the early 1970s and the legislation will have major implications for corporate pension funds asset allocation, the structure of corporate pension plans and the retirement burden on society.
5 main points Steinbrugge focused on during the interview are as follows:
1. Public pension funds will increase their allocation to hedge funds at faster rate than corporate pension plans due to sweeping new corporate pension legislation that is just beginning to take hold in the industry.
2. The new legislation does not directly impact public pension funds.
3. The new extensive and complex pension legislation includes two provisions which will alter how many corporate pension fund assets are managed.
4. Many corporate defined benefit plans are moving away from maximizing return by utilizing the efficient frontier strategy of portfolio construction to a liability matching strategy for their portfolio which features a significant increase in their allocation to long duration fixed income securities in order to reduce the variability of annual contributions.
5. This increased expense will enhance the speed of corporations terminating or freezing their defined benefit plans and replacing them with 401k plans.
Historically, Steinbrugge explained, a vast majority of defined benefit pension funds used a static discounts rate of approximately 7.5% to 8% to determine the present value of their future liabilities. By keeping the discount rate constant year after year and by amortizing unfunded liabilities over a 20 to 30 year period, it allowed for a fairly consistent required contribution to a defined benefit plan on an annual basis.
In order for the pension fund to achieve investment returns equal to the discount rate, pension funds used modern portfolio theory to constructed diversified portfolios along the efficient frontier which allowed them to maximize return for a targeted level of volatility. Over the years, this efficient frontier was enhanced as more asset classes were utilized and through the adoption of alternative investments within their portfolios. Over long periods of time, this investment strategy was effective at reaching their return objectives. In addition, this strategy of maximizing long term returns had reduced the long term cost of funding these defined benefit plans.
The new extensive and complex pension legislation includes two provisions which will alter how many corporate pension fund assets are managed.
* The first provision effects how companies determine the present value of the future liability stream, which includes many variables, but is dominated by the discount rate. The new regulation states that the discount rate will be derived from a “yield curve” of investment-grade corporate bonds averaged over the most recent 24 months, which is updated on an annual basis. This has had major implications for corporate defined benefit plans. The average discount rate to calculate future unfunded liabilities has been significantly reduced from what corporations have used historically. This has caused their unfunded liability to increase significantly. It has also added significant variability to future pension fund contributions because of the unpredictability of future discount rates.
* The second provision reduced the time period that corporations could amortize these liabilities from 20 to 30 years down to half that time period. The effect of combining these two provisions has been to significantly increase annual funding for many plans over previous levels at a time when many corporations can least afford to incur additional liabilities.
“As a result,” Steinbrugge wrote in a release on the subject, “many corporate defined benefit plans are moving away from maximizing return by utilizing the efficient frontier strategy of portfolio construction to a liability matching strategy for their portfolio which features a significant increase in their allocation to long duration fixed income securities in order to reduce the variability of annual contributions. Agecroft Partners believes that this increased allocation to long duration fixed income will be funded primarily through a reduction in corporate pension funds allocation to shorter duration fixed income and long only equity managers. Some of the more sophisticated corporate plans might match the duration of their assets to liabilities through the derivative markets which will allow them to continue to manage the underlying portfolio on a total return basis.”
“Unfortunately, this duration matching strategy for US corporate pension funds will reduce the long term expected returns of their portfolios from the 7.5% to 8% range down to 5% to 6.5% which will significantly increase the expense of these plans. This increased expense will enhance the speed of corporations terminating or freezing their defined benefit plans and replacing them with 401k plans. The problem with 401k plans is that they typically do not provide a large enough lump sum distribution to provide for retirement. Additionally, the average retiree lacks the discipline to spend these assets over their expected life span. The end result may very well be that many individuals will run out of their retirement savings and rely on government program for their retirement needs. Another unfortunate aspect of this new legislation is that many corporations are locking in long duration fixed income portfolios while interest rates are at their lowest point in decades. If the massive government deficient creates inflation causing interest rates to spike these long duration portfolio could lose a significant percent of their value.”
“Public pension funds will not be affected by this legislation and will have no incentive to move away from the efficient frontier structure of investing.” Steinbrugge said, “Given most state and local government’s shaky budgets and large unfunded liabilities they need to maximize their investment returns on their portfolios in order to reduce the financial burden on their constituencies. As a result of this we will see a significant divergence between the asset allocations of corporate and public pension funds.”
“Public pension funds will steadily increase their allocation to alternative investments over the next decade, where hedge funds may represent as much as 20% of their portfolio while corporations will also increase their alternative portfolio, but at a slower rate due to their growing allocation to longer duration fixed income.” Steinbrugge concluded.
Agecroft Partners is a consulting and third party marketing firm which specializes solely in the alternative investment arena with a particular focus on hedge funds.
“The new legislation does not directly impact public pension funds.” Don Steinbrugge, Managing Member at Agecroft Partners, LLC, said in an interview this morning, “Corporate pension fund allocations have historically targeted a higher risk and return profile than public pension funds, but that may be changing due to the passage of the 2006 Pension Protection Act that became effective in 2008.”
This was the most dramatic pension legislation in the US since the passage of ERISA back in the early 1970s and the legislation will have major implications for corporate pension funds asset allocation, the structure of corporate pension plans and the retirement burden on society.
5 main points Steinbrugge focused on during the interview are as follows:
1. Public pension funds will increase their allocation to hedge funds at faster rate than corporate pension plans due to sweeping new corporate pension legislation that is just beginning to take hold in the industry.
2. The new legislation does not directly impact public pension funds.
3. The new extensive and complex pension legislation includes two provisions which will alter how many corporate pension fund assets are managed.
4. Many corporate defined benefit plans are moving away from maximizing return by utilizing the efficient frontier strategy of portfolio construction to a liability matching strategy for their portfolio which features a significant increase in their allocation to long duration fixed income securities in order to reduce the variability of annual contributions.
5. This increased expense will enhance the speed of corporations terminating or freezing their defined benefit plans and replacing them with 401k plans.
Historically, Steinbrugge explained, a vast majority of defined benefit pension funds used a static discounts rate of approximately 7.5% to 8% to determine the present value of their future liabilities. By keeping the discount rate constant year after year and by amortizing unfunded liabilities over a 20 to 30 year period, it allowed for a fairly consistent required contribution to a defined benefit plan on an annual basis.
In order for the pension fund to achieve investment returns equal to the discount rate, pension funds used modern portfolio theory to constructed diversified portfolios along the efficient frontier which allowed them to maximize return for a targeted level of volatility. Over the years, this efficient frontier was enhanced as more asset classes were utilized and through the adoption of alternative investments within their portfolios. Over long periods of time, this investment strategy was effective at reaching their return objectives. In addition, this strategy of maximizing long term returns had reduced the long term cost of funding these defined benefit plans.
The new extensive and complex pension legislation includes two provisions which will alter how many corporate pension fund assets are managed.
* The first provision effects how companies determine the present value of the future liability stream, which includes many variables, but is dominated by the discount rate. The new regulation states that the discount rate will be derived from a “yield curve” of investment-grade corporate bonds averaged over the most recent 24 months, which is updated on an annual basis. This has had major implications for corporate defined benefit plans. The average discount rate to calculate future unfunded liabilities has been significantly reduced from what corporations have used historically. This has caused their unfunded liability to increase significantly. It has also added significant variability to future pension fund contributions because of the unpredictability of future discount rates.
* The second provision reduced the time period that corporations could amortize these liabilities from 20 to 30 years down to half that time period. The effect of combining these two provisions has been to significantly increase annual funding for many plans over previous levels at a time when many corporations can least afford to incur additional liabilities.
“As a result,” Steinbrugge wrote in a release on the subject, “many corporate defined benefit plans are moving away from maximizing return by utilizing the efficient frontier strategy of portfolio construction to a liability matching strategy for their portfolio which features a significant increase in their allocation to long duration fixed income securities in order to reduce the variability of annual contributions. Agecroft Partners believes that this increased allocation to long duration fixed income will be funded primarily through a reduction in corporate pension funds allocation to shorter duration fixed income and long only equity managers. Some of the more sophisticated corporate plans might match the duration of their assets to liabilities through the derivative markets which will allow them to continue to manage the underlying portfolio on a total return basis.”
“Unfortunately, this duration matching strategy for US corporate pension funds will reduce the long term expected returns of their portfolios from the 7.5% to 8% range down to 5% to 6.5% which will significantly increase the expense of these plans. This increased expense will enhance the speed of corporations terminating or freezing their defined benefit plans and replacing them with 401k plans. The problem with 401k plans is that they typically do not provide a large enough lump sum distribution to provide for retirement. Additionally, the average retiree lacks the discipline to spend these assets over their expected life span. The end result may very well be that many individuals will run out of their retirement savings and rely on government program for their retirement needs. Another unfortunate aspect of this new legislation is that many corporations are locking in long duration fixed income portfolios while interest rates are at their lowest point in decades. If the massive government deficient creates inflation causing interest rates to spike these long duration portfolio could lose a significant percent of their value.”
“Public pension funds will not be affected by this legislation and will have no incentive to move away from the efficient frontier structure of investing.” Steinbrugge said, “Given most state and local government’s shaky budgets and large unfunded liabilities they need to maximize their investment returns on their portfolios in order to reduce the financial burden on their constituencies. As a result of this we will see a significant divergence between the asset allocations of corporate and public pension funds.”
“Public pension funds will steadily increase their allocation to alternative investments over the next decade, where hedge funds may represent as much as 20% of their portfolio while corporations will also increase their alternative portfolio, but at a slower rate due to their growing allocation to longer duration fixed income.” Steinbrugge concluded.
Agecroft Partners is a consulting and third party marketing firm which specializes solely in the alternative investment arena with a particular focus on hedge funds.
3 May 2010
100 Women in Hedge Funds: La Parisienne Race in Support of Breast Cancer Research
Sunday, September 12, 2010 at 10 AM Paris
Registration is 35 Euros and this includes access to several optional training sessions, our team logo and the chance to run with your friends in finance. Part of the registration fee will be donated by the Race organizers to Breast Cancer Research (Fondation Recherche Médicale, Action Cancer du Sein). You can help raise more funds through sponsorship, individually or through your company, details available on request. PARIS@100womeninhedgefunds.org
The Race will start at 10AM; groups will form near the Pont d’Iena beginning at 9AM.
CELEBRATE and NETWORK at a post-race brunch (Cost, location and time to be provided.)
Annoa Cirian, from HDF Finance, ran the Parisienne last year, here is her story:
"Some of you might already know about the race that is becoming a major event in Paris; you might even have run it before! All women are welcome, from 7 to 77 years old, Parisian or not. The idea is to share a truly fun and enjoyable event and help raise awareness and funding for Breast Cancer Research.
The challenge IS manageable!!!! It is only 6 kms from the start, on the Iéna bridge, to the finish line under the Eiffel Tower! If you are generally fit and reasonably in shape, you should be able to run this in under 40 minutes and walking is permitted. I myself am not a marathoner (!) and only trained a few times before participating last year and I finished!!!! There were 17.499 other ladies running with me; the positive and emotional atmosphere was something that cannot be forgotten; it moved me to tears.
As in the past, the Village area opens up on the Friday before the race, with many stands from the main sponsors (Nike, Weleda, Fitness . . . )
Every Sunday morning, Nike organizes free training sessions; just meet up at 9h45 at their Champ Elysees store! They also offer a few evening shopping sessions and special rebates for runners registered for the Parisienne!
Registration is 35 Euros and this includes access to several optional training sessions, our team logo and the chance to run with your friends in finance. Part of the registration fee will be donated by the Race organizers to Breast Cancer Research (Fondation Recherche Médicale, Action Cancer du Sein). You can help raise more funds through sponsorship, individually or through your company, details available on request. PARIS@100womeninhedgefunds.org
The Race will start at 10AM; groups will form near the Pont d’Iena beginning at 9AM.
CELEBRATE and NETWORK at a post-race brunch (Cost, location and time to be provided.)
Annoa Cirian, from HDF Finance, ran the Parisienne last year, here is her story:
"Some of you might already know about the race that is becoming a major event in Paris; you might even have run it before! All women are welcome, from 7 to 77 years old, Parisian or not. The idea is to share a truly fun and enjoyable event and help raise awareness and funding for Breast Cancer Research.
The challenge IS manageable!!!! It is only 6 kms from the start, on the Iéna bridge, to the finish line under the Eiffel Tower! If you are generally fit and reasonably in shape, you should be able to run this in under 40 minutes and walking is permitted. I myself am not a marathoner (!) and only trained a few times before participating last year and I finished!!!! There were 17.499 other ladies running with me; the positive and emotional atmosphere was something that cannot be forgotten; it moved me to tears.
As in the past, the Village area opens up on the Friday before the race, with many stands from the main sponsors (Nike, Weleda, Fitness . . . )
Every Sunday morning, Nike organizes free training sessions; just meet up at 9h45 at their Champ Elysees store! They also offer a few evening shopping sessions and special rebates for runners registered for the Parisienne!
The 8th Annual Hedge Fund Industry Award Nominees
HedgeCo News - Institutional Investor magazine is presenting the 8th Annual Hedge Fund Industry Awards, which will recognize the hedge funds, hedge funds of funds, seeder firms, investment consultants, endowments, foundations, family offices, corporate funds and public funds who stood out for their innovation, achievements and contributions to the industry in 2009.
Award nominees will be honored and winners will be announced and awarded at a dinner and awards ceremony at the Mandarin Oriental in New York City on Monday, June 21, 2010.
Lifetime Achievement Award
Julian Robertson Jr., Founder and ChairmanTiger Management Corp.
Outstanding Contribution Award
Orin Kramer, Chairman, New Jersey State Investment Council
2010 MANAGER AWARD CATEGORIES & NOMINEES:
Institutional Hedge Fund Firm of the Year
* D.E. Shaw & Co.
* Highbridge Capital Management
* Och-Ziff Capital Management Group
* Paulson & Co.
* York Capital Management
Emerging Hedge Fund Firm of the Year
* 1798 Global Partners
* Arrowhawk Capital Partners
* Atalaya Capital Management
* HealthCor Management
* Merchants' Gate Capital
Equity-Focused Hedge Fund of the Year
* Lansdowne Partners
* Pershing Square Capital Management
* SAC Capital Advisors
* Stelliam Investment Management
* Viking Global Investors
Credit-Focused Hedge Fund of the Year
* Appaloosa Management
* Avenue Capital Group
* Canyon Capital Advisors
* Centerbridge Partners
* Pacific Investment Management Co.
Macro-Focused Hedge Fund of the Year
* BlueCrest Capital Management
* BlueGold Capital Management
* Moore Capital Management
* Pharo Management
* Tudor Investment Corp.
Multistrategy Hedge Fund of the Year
* D.E. Shaw & Co.
* Hudson Bay Capital Management
* Millennium Management
* Och-Ziff Capital Management Group
* Perry Capital
Relative Value Hedge Fund of the Year
* Barnegat Fund Management
* BlueMountain Capital Management
* Citadel Investment Group
* CQS
* Pine River Capital Management
Large Fund of Hedge Funds Firm of the Year
* Blackstone Alternative Asset Management
* Lighthouse Partners
* Morgan Stanley Alternative Investment Partners
* Permal Group
* Prisma Capital Partners
Small Fund of Hedge Funds Firm of the Year
* Corbin Capital Partners
* Greenlight Masters
* Magnitude Capital
* NewFinance Capital
* SSARIS Advisors
Hedge Fund Seeder Firm of the Year
* Investcorp Investment Advisers
* Larch Lane Advisors
* Paloma Partners Management Co.
* Protégé Partners
* SkyBridge Capital
Award nominees will be honored and winners will be announced and awarded at a dinner and awards ceremony at the Mandarin Oriental in New York City on Monday, June 21, 2010.
Lifetime Achievement Award
Julian Robertson Jr., Founder and ChairmanTiger Management Corp.
Outstanding Contribution Award
Orin Kramer, Chairman, New Jersey State Investment Council
2010 MANAGER AWARD CATEGORIES & NOMINEES:
Institutional Hedge Fund Firm of the Year
* D.E. Shaw & Co.
* Highbridge Capital Management
* Och-Ziff Capital Management Group
* Paulson & Co.
* York Capital Management
Emerging Hedge Fund Firm of the Year
* 1798 Global Partners
* Arrowhawk Capital Partners
* Atalaya Capital Management
* HealthCor Management
* Merchants' Gate Capital
Equity-Focused Hedge Fund of the Year
* Lansdowne Partners
* Pershing Square Capital Management
* SAC Capital Advisors
* Stelliam Investment Management
* Viking Global Investors
Credit-Focused Hedge Fund of the Year
* Appaloosa Management
* Avenue Capital Group
* Canyon Capital Advisors
* Centerbridge Partners
* Pacific Investment Management Co.
Macro-Focused Hedge Fund of the Year
* BlueCrest Capital Management
* BlueGold Capital Management
* Moore Capital Management
* Pharo Management
* Tudor Investment Corp.
Multistrategy Hedge Fund of the Year
* D.E. Shaw & Co.
* Hudson Bay Capital Management
* Millennium Management
* Och-Ziff Capital Management Group
* Perry Capital
Relative Value Hedge Fund of the Year
* Barnegat Fund Management
* BlueMountain Capital Management
* Citadel Investment Group
* CQS
* Pine River Capital Management
Large Fund of Hedge Funds Firm of the Year
* Blackstone Alternative Asset Management
* Lighthouse Partners
* Morgan Stanley Alternative Investment Partners
* Permal Group
* Prisma Capital Partners
Small Fund of Hedge Funds Firm of the Year
* Corbin Capital Partners
* Greenlight Masters
* Magnitude Capital
* NewFinance Capital
* SSARIS Advisors
Hedge Fund Seeder Firm of the Year
* Investcorp Investment Advisers
* Larch Lane Advisors
* Paloma Partners Management Co.
* Protégé Partners
* SkyBridge Capital
28 Apr 2010
AIMA Comments on AIFMD Statement
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.”
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.”
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."
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.
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.
Fund.com Expands Hedge Fund & ETF Operations With The Acquisition Of Weston Capital Management
HedgeCo News - New York hedge fund manager, Fund.com, 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, Fund.com is now positioned to capture revenue streams from an array of hedge fund and actively managed ETFs.” Gregory Webster, CEO at Fund.com, 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, Fund.com 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.
“With Weston Capital’s proven capability to seed new fund products, combined with its seasoned global institutional sales force, Fund.com is now positioned to capture revenue streams from an array of hedge fund and actively managed ETFs.” Gregory Webster, CEO at Fund.com, 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, Fund.com 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.
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