Goodman To Raise $500 Million For Asia Fund Launch

Australia based hedge fund and global property manager, Goodman Property Investors, is raising funds for a $500 million Asia Pacific fund of funds(FoF).

The new FoF will invest in established real estate funds across Asia, it has a target annual return of 14% and will invest in the traditional office, retail and industrial sectors as well as specialist sectors such as residential.

Andrew Smith, Head of Investment Strategy and Deputy Managing Director of Goodman Property Investors said, "We are launching this product in response to increasing demand from institutional investors for exposure to real estate in the Asia Pacific region." He said, "This demand reflects both the increasing appetite for cross-border property investment, and the current performance and diversification opportunities the region now offers."

With offices in Australia, Belgium, China, Czech Republic France, Germany, Hong Kong, Hungary, Italy, Japan, New Zealand, Poland, Spain, The Netherlands and the United Kingdom, Goodman Property Investors has in excess of $13.8 billion in assets under management as of December 31.

Hedge Fund Services Group Formed By RBC

RBC Capital Markets, the hedge fund arm of the Royal Bank of Canada, has formed the RBC Global Prime Services Group to provide support to hedge fund managers, mutual fund managers and institutional asset managers.

Jeremy Frommer, head of RBC Global Prime Services said, "We recognize that the lines between hedge fund and traditional institutional managers are becoming more obscure as their needs become more similar....We decided to break down silos by bringing together, under a single umbrella, everything from prime brokerage to trading technology, securities lending to capital introductions, as well as financing."

The Global Prime Services Group, which has made a substantial investment in technology this year, has seen a 20% increase in clients and a related increase in assets under management in the past six months. It has also recently launched he RBC Capital Introduction Group, the RBC Emerging Manager Allocator platform, and the RBC Global Futures & Base Metals Group.

RBC Capital Markets is the corporate and investment banking arm of the Royal Bank of Canada (RCB). Its North American platform includes a significant U.S. middle market investment banking franchise and leading equity, underwriting, sales, trading and research businesses. Bloomberg ranks the firm as one of the top 15 investment banks globally.

Asia's Top Ten Hedge Funds

Asia's 10 largest hedge fund managers based on reported or estimated assets under management (AUM) as of March 31, 2007, according to a ranking by Alpha Magazine.


1. Sparx Group Co Ltd $6.7 billion

2. Value Partners Group $4.8 billion

3. Arisaig Partners $2.1 billion

4. Penta Investment Advisers $1.9 billion

5. Ward Ferry Management $1.8 billion

6. Lapp Capital $1.4 billion

7. Tree Line Investment Management $1.3 billion

8. Artradis Fund Management $1.2 billion

9. Tantallon Capital $1.1 billion

10. Asuka Asset Management $1.0 billion

Chada Launches Alternative Investment Division In London

European hedge fund advisor Carne Global Financial Services Group has announced the launch of alternative investment and wealth management technology and operational consultancy divisions in London.

Chief executive John Donohoe said, "The entire fund management industry - both traditional and alternative - is experiencing high demand for expertise in risk management and technology, particularly with the convergence of those industries with wealth management."

Carne said the new divisions add technology capabilities to the group's existing operational services and capitalise on its established presence within the hedge fund management industry. Carne also annonced the recruitment of Sunil Chadda and Phil Kitto.

Chadda joins Carne as head of alternative investments, he is previously of London-based financial systems consultancy Citisoft, where he was head of the hedge funds and derivatives practice for the past three years.

Kitto also joins Carne from Citisoft to lead the new global wealth management and private client division, after after a career including spells with UBS, Baring Asset Management and Mercury Asset Management.

The firm now advises more than 100 clients that oversee more than $200bn in assets, and has more than 40 staff in Dublin, London and Luxembourg, Chada offers expertise in hedge fund establishment, directorship programmes and hedge fund management operational and compliance services.

Hedge Fund Panel to Discuss Future of Advertising

A high-level panel of hedge fund experts are planing a forum to discuss and debate the state of hedge fund advertising and marketing in the alternative investment management community.

Panel-participant Phil Goldstein, the plaintiff who single-handedly defeated a plan to require hedge funds to register with the SEC, has even discussed suing the SEC on First Amendment grounds, which could lead to major changes in the industry.

The 1,600-member Managed Funds Association, represented on the panel by Benjamin Allensworth, senior legal counsel, has long advocated for a loosening of the SEC's restrictions.

Jay Gould, head of the Investment Funds Practice at Pillsbury said, "Hedge funds typically rely on provisions of the securities laws that prohibit general communications with the public, as those provisions are interpreted by the SEC, and also because legal counsel has drilled them on the need to 'fly below the radar' and keep their investment strategies solely for qualified investors."

"The panel also will discuss what hedge funds can and should do to effectively market themselves, while staying within SEC guidelines." Gould concluded.

Other forum participants are: Pillsbury's Terry Davis, who will provide a regulatory update; and Richard Dukas, president & CEO of Dukas Public Relations, which has long provided proactive publicity and media relations services to top hedge funds.

The panel is set to meet April 16th at the law offices of Pillsbury in San Francisco.

Blackstone Creates Fund Worth Over 10 Billion

Hedge fund Blackstone Group L.P. announced the closing of Blackstone Real Estate Partners VI (BREP VI) with capital commitments totaling $10.9 billion, creating the largest real estate opportunity fund ever raised.

The new fund has more then 60 investment and asset management professionals with broad experience across most real estate categories, including hotels, office, residential, retail, and other commercial properties.

The hedge fund firm has raised a total of nine real estate funds since inception, both funds for global investing and funds with a specific focus on Western Europe, with total capital commitments of $25.7 billion

Jonathan Gray, Senior Managing Director and New York-based co-head of Blackstone's real estate group, said, "We are delighted to have this vote of confidence from our investors. We believe there should be attractive investment opportunities for this capital given the market dislocation that exists today." Chad Pike, Senior Managing Director and London-based co-head of Blackstone's real estate group added, "With this fund we will be able to enter new markets and expand Blackstone's global investment activities."

The Blackstone Group L.P. is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds.

In the past several years Blackstone has completed a number of major transactions including Equity Office Properties, Hilton Hotels, CarrAmerica, Wyndham Hotels, Trizec Properties and Southern Cross / NHP. The group has completed more then 225 separate investments in North America and Europe with a total transaction value of approximately $132 billion since 1992. Most recently the group opened offices in Tokyo, Mumbai and Hong Kong to expand Blackstone's real estate business in Asia.

Former Secretary of State for Texas To Host Entreprenurial Funding Conference

Hedge fund weath manager CACH Capital Management announced that former Secretary of State for Texas and current co-founder & Chairman Honorable, Geoffrey S. Connor will be a Keynote at the Central Texas Entrepreneur Funding Symposium.

The conference provides entrepreneurs access to experts and information to educate them on how to adequately fund their businesses. His keynote address, "Texas and the Global Economy", will pull from his extensive experience with the process of investment capital procurement, providing entrepreneurs with priceless insight on their funding issues.

The event will include panel sessions as well as breakout sessions. CACH Capital Management President and CEO, Michael Hundley, will be a featured speaker sharing his insight on private equity as an alternative source of funding. Mr. Hundley, a well-regarded and award winning manager in the financial services industry, often consults early stage companies helping them become "capital ready". His expertise in institutional sales and service management extends worldwide.

Central Texas entrepreneurs are already signing up for the Funding Symposium which takes place on April 18th, at the JJ Pickle Center.

CACH Capital Management, LLC, a Texas-based global wealth management firm, manages portfolios, global hedge funds and business advisory services. Each CACH team member has been selected for the specialized expertise he brings to the firm. The human capital of CACH Capital represents over 50 years of investment experience and over 100 years of combined expertise in the business, legal and financial fields.

Hedge Fund Man Group Exceeds Expectations

Hedge fund manager Man Group plc announced that is "Extremely well placed to see continued strong growth." In a statment regarding its close period for the year, Man said, "This is a very strong set of results, achieved through a period of significant market turmoil."

Funds under management have risen to around $75 billion, it is anticipated that profit for the year ending 31 March 2008 will be ahead of market expectations.

Man Group's most recent fund launch, which starts trading 1 April, raised $1 billion and has been included in FUM of $75 billion for the year to 31 March 2008.

Peter Clarke, CEO of Man Group, said, "Strong sales momentum has been maintained with sales of $15.8 billion in the year. Good performance has added $5.3 billion to investor assets during a period when global markets were exceptionally volatile."

Indian Market For Data Growing, With Hedge Fund Company In The Lead

New York Top 5 hedge fund Och-Ziff's firm Ctrl S. Data Centers, said it is planning to invest $250 million to open four data centres in the country in next 2-3 years.

"We are planning to open four data centres in Bangalore, Chennai, Delhi and Mumbai by 2010 which would entail an investment of 250 million dollars," Ctrl S Data Centers Chairman and Managing Director S. Reddy said.

The Asian Data Centre market is predicted to increase by a compound annual growth rate of 11.5% over the period from 2006 to 2010, with India becoming the fastest growing market.

He said the data centre industry in the country is expected to grow, with nearly 1,700 square feet data centre space expected to be created in India by 2010.

Hyderabad-based Ctrl S Data Centers is promoted by the Rs 500-crore Pioneer Group along with IDBI and hedge fund Och-Ziff.

Hedge Fund Activsts Push Aerojet on 2,300 Acre Deal

Feeling the pressure from hedge fund shareholder Steel Partners, GenCorp Inc. announced an agreement with the state Department of Toxic Substances Control, saying it had obtained environmental clearance on 2,300 acres earmarked for a massive real estate project.

GenCorp's company, Aerojet, says it has passed a key milestone in its land-development effort, the agreement gives Aerojet the green light on 2,300 acres that are to become part of the Rio del Oro development on the edge of the company's Rancho Cordova complex.

GenCorp has been under pressure from hedge fund activists to accelerate its land-development program. Earlier this month, GenCorp president and chief executive Terry Hall resigned as the company lost a power struggle with its largest shareholder, New York hedge fund Steel Partners II.

The hedge fund now has effective control of the GenCorp board and is expected by Wall Street analysts to step up the land-development business.

Steel Partners II, L.P. is a long-term relationship/active value investor that works with the management of its portfolio companies to increase corporate value for stakeholders and shareholders.

Babylon Fund Does Well In Iraq

Godvig Capital Management's hedge fund, The Babylon Fund, reported a rebound in Febuary, reviving a long-term uptrend, according to the company.

All asset classes in the portfolio contributed to the rebound, Godvig said, Iraqi bond yields fell, equity prices of oil drilling companies rose, as did banking stocks on the Iraqi stock exchange.

No longer the lone foreigners on the trading floor in Baghdad, the hedge fund has been helped by the record high oil prices and the organic profit explosion in Iraq. Raised expectations of doubledigit growth with low inflation and signs of political progress are feeding the market sentiment.

The fund maintained their prime investment strategy to increase Babylon's exposure in a broad-based manner into undervalued blue chips on the Iraqi Stock Exchange. Babylon aims to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi dependant securities.

Hedge Funds for Habitat Raise $20,000

Hedge Funds for Habitat-NYC hosted an event on Friday that brought 30 volunteers from the hedge fund industry together, many with no prior construction experience, to drywall rooms, saw wood, measure and cut metal studs and help frame walls.

They also raised $20,000 to help fund the construction costs. The hedgies worked side-by-side with some of the low-income families who will own these affordable condos.

The build day was sponsored by Damian Handzy, CEO of Investor Analytics. Handzy and six members of his staff also volunteered for the day doing construction work.

"It's great to see so many people from the alternative investment industry coming together to give something back to the city that has been so good to us," said Stuart Feffer, Chair of Hedge Funds for Habitat-NYC and Co-CEO of LaCrosse Global Fund Services. "The market has been tough this week, and it's terrific to get people away from their screens and behind some tools."

Susan DeMaio, Senior Vice President at Pequot Capital Management, had volunteered in the past with Habitat, building a single family home. She said she jumped at the invitation to join another Habitat build. "It is inspiring to work with people in the hedge fund industry and with Habitat-NYC," DeMaio added."

Hedge Funds for Habitat-NYC is an effort to provide hardworking New York City families with a homeownership opportunity through Habitat for Humanity.City. With the help of an average of 10,000 volunteers every year, Habitat-NYC has built more than 180 affordable homes in the five boroughs of New York City.

Hedge Fund Asks Investors To Replace Bank Loans

Hedge Fund Carrington Capital Management LLC is asking investors to lend it as much as $200 million to replace bank loans, according to the Financial Times.

The $1 billion hedge fund has offered investors an 18% interest rate on new preferred shares they said in a letter to investors from Carrington.

The hedge fund, which specializes in mortgages, said that their relationship with financiers Citigroup Inc. and JPMorgan Chase & Co. remains "good," according to FT.

Carrington Capital Management, LLC ("CCM"), is a privately managed investment management company, it currently has over $1 billion in assets under management.

Players and Coaches Participate to Raise Funds For Children

Hedge Funds Care is sponsoring yet another "Open Your Heart to the Children Benefit", this time including the San Francisco 49ers.

The Co-Owner, John York, will join current 49ers players and coaches including Head Coach Mike Nolan, 49ers center Eric Heitmann and linebacker Manny Lawson, and 600 people from the West Coast hedge fund industry at this year's dinner, which is well on its way to raising more than last year's event.

The event will feature silent and live auctions, along with wine tasting from premier Napa and Sonoma Valley vineyards. Funds raised by the event will be used to provide grants to existing organizations that address the prevention and treatment of child abuse in the Bay Area.

"We are excited to host this event in San Francisco and to partner with the 49ers Foundation for the seventh time," Jolly said. "Last year's event was a tremendous success, raising more than $1,000,000. We look forward to the continued support of the hedge fund industry for this very worthy cause."

Hedge Funds Care is an industry alliance formed in 1998 with the sole mission of raising funds to prevent and treat child abuse. To date, the group has raised more than $27 million nationally. In addition to the dinner in San Francisco, Hedge Funds Care also holds events in Atlanta, Boston, Chicago, Denver, London, Toronto, Cayman Islands and New York.

The San Francisco 49ers Foundation is the non-profit community funding arm of the San Francisco 49ers. Now in its 16th year, the San Francisco 49ers Foundation supports development programs for underserved youth that keep them safe, on track and in school. A significant portion of its funding goes towards family violence prevention programs and activities that teach youth leadership and respect. For more information, visit www.49ers.com.

Hedge Funds ‘Defend Vigorously’ Their Disclosure Rights

Hedge funds Children’s Investment Fund Management (TCI) and 3G Capital Partners reponded to a lawsuit yeasterday, saying the CSX filing was "without merit".

“It is unfortunate that CSX has chosen to manipulate the governance and Board election process by delaying the annual meeting and filing baseless claims," the hedge funds said in a joint statement, "These allegations are wholly without merit and we will defend ourselves vigorously.”

In the filing with the Federal Court in New York, railroad company CSX alleged the two hedge funds had not met U.S. regulatory requirements to disclose the size of their holding in the company.

TCI is a London-based asset manager founded in 2003 which manages The Children’s Investment Master Fund. The majority of TCI’s profits go to The Children’s Investment Fund Foundation, a non-profit organization focused on improving the lives of children living in poverty in developing countries.

3G manages a private investment fund that invests in global equities and special situations.

Heller Joins Hedge Fund Association board of directors

Richard Heller, a partner with the law firm Thompson Hine LLP, has been appointed to serve on the Hedge Fund Association 2008 board of directors.

The Hedge Fund Association is an international not-for-profit association of hedge fund managers, service providers and investors formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds.

Heller was selected by industry peers to represent hedge fund service providers. In this role, he will contribute his time and experience to help connect, promote and grow the association.

As a member of Thompson Hine's Corporate Transactions & Securities practice group, Heller focuses his practice on securities matters. His experience includes formation of private offerings including hedge fund offering documents and exhibits and related securities filings and defending registered representatives before the FINRA.

Heller has served three times on the SEC's Business Forum on Small Capital Formation, which has published recommendations to the White House.

Established in 1911, Thompson Hine is a business law firm dedicated to providing superior client service. For the last several years, the firm has been named one of the Best Corporate Law Firms in America (in an annual survey of corporate directors conducted by Corporate Board Member magazine). With more than 400 lawyers, Thompson Hine serves premier businesses worldwide. The firm has offices in Atlanta, Brussels, Cincinnati, Cleveland, Columbus, Dayton, New York and Washington, D.C.

The $240 Million Acquisition Of Bear Stearns

JPMorgan Chase & Co. announced the acquisition of Bear Stearns Companies Inc. The Boards of Directors of both companies have unanimously approved the transaction.

Based on the closing price of March 15, 2008, the transaction would have a value of approximately $2 per share, a total of $240 million.

"JPMorgan Chase's management team has a strong track record of effective merger integration," said Heidi Miller, CEO of JPMorgan Treasury & Securities Services business. "We will work closely in the coming weeks with Bear Stearns' clients and management to execute the transaction quickly."

In addition to the financing the Federal Reserve ordinarily provides through its Discount Window, the Fed has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.

"JPMorgan Chase stands behind Bear Stearns," said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. "Bear Stearns' clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns' counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner."

Dimon added, "This transaction will provide good long-term value for JPMorgan Chase shareholders. This acquisition meets our key criteria: we are taking reasonable risk, we have built in an appropriate margin for error, it strengthens our business, and we have a clear ability to execute."

"The past week has been an incredibly difficult time for Bear Stearns. This transaction represents the best outcome for all of our constituencies based upon the current circumstances," said Alan Schwartz, President and Chief Executive officer of Bear Stearns.

JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries.

The Bear Stearns Companies Inc. serves governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services.

SIV To Pay Creditors In Full

Justice Etherton has ruled that structured investment vehicle (SIV), Whistlejacket, must pay off creditors that were due to be paid on the day it declared insolvency.

A statement on the ruling was issued, detailing how different holders of debt issued by Whistlejacket would be paid. The court ruled that holders of Whistlejacket U.S. medium-term notes, due to be redeemed on February 15 on the same date as the insolvency notice, should be paid the amount due in full.

The obligation to repay them "occurred prior to the occurrence of the Insolvency Redemption Event and therefore did not fall to be redeemed on the Insolvency Redemption Date," the statement said.

The decision may have some impact on how creditors of other troubled vehicles, such as Cheyne Finance, set up by hedge fund Cheyne Capital Management, and Rhinebridge Plc, set up by German bank IKB will be paid.

Deloitte & Touche was appointed as receiver of Whistlejacket on February 12 after a drop in the value of the SIVs assets led its sponsor, Standard Chartered, to shelve a plan to rescue it by providing liquidity. The SIV was declared insolvent on February 15.

Hedge Funds Rebound In Febuary

The Greenwich Global Hedge Fund Index (GGHFI), which currently includes 1091 hedge funds, returned 2.21% in February, rebounding from January’s poor returns.

The S&P 500 and MSCI World Equity posted negative returns, while the FTSE 100 gained. All hedge fund strategy groups ended the month with gains.

"February’s rebound in the midst of market uncertainty continues to highlight the diversification benefits of hedge funds," notes Margaret Gilbert, Greenwich Managing Director.

Directional Trading Group’s return was the strongest, driven largely by futures managers who capitalized on volatile commodities markets. Long-Short Equity Group strategies also benefited from choppy equity markets and for the second month in a row, dedicated short sellers were the top performers in this group.

Greenwich Alternative Investments currently manages one of the world’s largest hedge fund databases.

Hedge Fund Manager Under Record Attack For Discrimination

Gill Switalski, a city lawyer and head of legal affairs at F&C Asset Management is talking to lawyers about a record compensation payout of £13.4 million ($27 million).

The mother of 2 special needs children had to leave her career after being subjected to 18 months of sexual discrimination and harassment, according to an employment tribunal.

Switalski was previously named as one of the legal world’s "Hot 100" and must be paid compensation over her claims that she was undermined, undervalued, bullied and marginalised by the company, the tribunal said. Switalski sold her family’s £3.4million ($6.8 million) home to help pay for her legal battle against the hedge fund manager.

Switalski complained she was overlooked for management positions and sidelined in favour of her deputy on a project to buy a hedge fund. At the same time a male employee at the firm who also had children with special needs was allowed to take time off and work from home, her lawyers said.

After Switalski’s mother died suddenly she was sent an email demanding her mother’s death certificate for the firm’s travel insurance claim, the tribunal in central London was told.

A severe illness and 3 surgeries later, Switalski went on sick leave and never returned to the company, lodging formal complaints about bullying, harassment, intimidation, sex discrimination and victimisation.

Her lawyers have put the cost of her psychiatric damage and loss of earnings, pension and career prospects at £13.4 million ($27 million), which would be the biggest sex discrimination payout in Britain.

F&C, which currently manages £102 billion ($205.8 billion), has lodged an appeal denying Switalski’s claims.