The South African Times reported that their hedge Fund Index returned 15.56% over one year to November, while the month-on-month growth rate dipped by 1.67%.
Director of Clade Investment Management Gavin Goldblatt said, "The volatility in both these markets has also increased dramatically over past months....Bond markets performed considerably better, with a number of central banks raising rates, and a flight to the safety of bonds." As a result the JP Morgan Global Bond Index returned a staggering 4.10%, its highest monthly return in years, according to the paper.
Meanwhile, the Clade equity long-short index fund returned 20.17% over one year, while the offshore enhanced index fund denominated in dollars was up 7.69%, according to the newspaper. November was a very tough month for global equity markets, with the MSCI All World Index losing 4.57%, and the JSE ALSI losing 3.19%.
Goldblatt added, "However, renewed inflation fears in South Africa drove the All Bond Index down 1.55%, for a net return for the last 12 months of only 4.82%. All of Clade’s funds reported losses for the month. However, none of these losses were as large as that of equity markets, and the funds succeeded in their main objective of reducing volatility and preserving capital during difficult times." concluded Goldblatt.
21 Dec 2007
Large Hedge Funds Taking Over From Smaller Counterparts
According to a report by research and data provider Hedge Fund Research, about 863 funds were launched through the third quarter, nearly half the amount for all of
2006. About 408 asset pools were liquidated compared with 717 in 2006.
In 2003, 1,094 new funds were introduced. Liquidations fell to an industry low of
296 funds in 2004.
Kenneth Heinz, Hedge Fund Research president, said investor requirements for size and infrastructure may be making it more challenging to launch a new fund, “In the third quarter of this year, investors allocated nearly 90% of new capital to funds with greater than $1bn (€695.8bn) already under management.”
Big hedge funds tower over the industry. Heinz said less than 10% of hedge funds controlled 73.5% of capital for the year through the third quarter. Half of the $45bn in new hedge fund capital in the third quarter was allocated to funds of hedge funds.
Heinz said that although some collapses were caused by bad investments tied to the sub-prime mortgage market, he said the majority of funds were closed because they failed to meet the expectations of fund managers or investors.
2006. About 408 asset pools were liquidated compared with 717 in 2006.
In 2003, 1,094 new funds were introduced. Liquidations fell to an industry low of
296 funds in 2004.
Kenneth Heinz, Hedge Fund Research president, said investor requirements for size and infrastructure may be making it more challenging to launch a new fund, “In the third quarter of this year, investors allocated nearly 90% of new capital to funds with greater than $1bn (€695.8bn) already under management.”
Big hedge funds tower over the industry. Heinz said less than 10% of hedge funds controlled 73.5% of capital for the year through the third quarter. Half of the $45bn in new hedge fund capital in the third quarter was allocated to funds of hedge funds.
Heinz said that although some collapses were caused by bad investments tied to the sub-prime mortgage market, he said the majority of funds were closed because they failed to meet the expectations of fund managers or investors.
20 Dec 2007
HFR Says Fewer Hedge Fund Launches in 2007
Hedge fund launches slowed in 2007 for the third year in a row, a sign investors may be putting money into existing funds rather than into new ones with perceived higher risks, according to Chicago-based Hedge Fund Research.
863 funds were launched in the roughly $1.9 trillion industry by the end of the third quarter, compared with 1,518 new funds for all of 2006 and 2,073 launches in 2005. Liquidations also slowed, with 408 funds closing by the third quarter 2007, compared with 717 for 2006 and 848 for 2005, HFR said on Wednesday.
HFR also said that the slowing launches and liquidations in an industry with more than 9,000 funds suggests investors are more inclined to allocate to larger, more established hedge funds, which are likely to be more diversified and have better risk controls.
"In the third quarter of this year, investors allocated nearly 90 percent of new capital to funds with greater than $1 billion already under management," said HFR. "Investor requirements for size and infrastructure may be making it more challenging to launch a new fund."
That contrasts with previous years, when investors often clamored to invest in the latest funds, particularly those founded by high-profile former investment bank proprietary traders.
863 funds were launched in the roughly $1.9 trillion industry by the end of the third quarter, compared with 1,518 new funds for all of 2006 and 2,073 launches in 2005. Liquidations also slowed, with 408 funds closing by the third quarter 2007, compared with 717 for 2006 and 848 for 2005, HFR said on Wednesday.
HFR also said that the slowing launches and liquidations in an industry with more than 9,000 funds suggests investors are more inclined to allocate to larger, more established hedge funds, which are likely to be more diversified and have better risk controls.
"In the third quarter of this year, investors allocated nearly 90 percent of new capital to funds with greater than $1 billion already under management," said HFR. "Investor requirements for size and infrastructure may be making it more challenging to launch a new fund."
That contrasts with previous years, when investors often clamored to invest in the latest funds, particularly those founded by high-profile former investment bank proprietary traders.
Private Equity Firms & Hedge Funds May Face Key Man Risk
Despite current investor and media attention on unexpected CEO turnover at major public companies, key man risk, the risk that the departure of a key executive or group of executives will lower credit quality, is more prevalent and a risk to credit quality among private equity firms and hedge funds, says Moody’s Investor Service.
“Recent departures at some large financial companies have brought to the fore the need for effective succession planning and management development, but also highlighted that large firms can usually cope with such departures, however unsettling,” says Moody’s vice-president Janet Holmes. “Hedge funds and private equity firms, however, can face considerably more acute CEO [or founder] leadership transition risk.”
Like other firms with founding CEOs, hedge funds and private equity firms face key man risk because they have often been created by successful founder executives who have played a central role in building a franchise and are closely linked with its business, brand and success. However, unlike most other major companies, these firms face additional key man risk because one or a handful of investors may hold most, if not all, of the voting stock.
Generally speaking, older firms will be more likely to have their equity distributed away from their founder, while private equity firms are less likely than hedge funds to have a single owner.
“Recent departures at some large financial companies have brought to the fore the need for effective succession planning and management development, but also highlighted that large firms can usually cope with such departures, however unsettling,” says Moody’s vice-president Janet Holmes. “Hedge funds and private equity firms, however, can face considerably more acute CEO [or founder] leadership transition risk.”
Like other firms with founding CEOs, hedge funds and private equity firms face key man risk because they have often been created by successful founder executives who have played a central role in building a franchise and are closely linked with its business, brand and success. However, unlike most other major companies, these firms face additional key man risk because one or a handful of investors may hold most, if not all, of the voting stock.
Generally speaking, older firms will be more likely to have their equity distributed away from their founder, while private equity firms are less likely than hedge funds to have a single owner.
18 Dec 2007
Hedge Funds Ahead for November
Hedge fund returns remained in double digits for the year despite a 1.6 percent dip in November, according to the Greenwich Global Hedge Fund Index. Putting hedge funds ahead of a trio of broad stock indexes through the year's first 11 months.
Among the hedge fund strategies tracked by the index, the Specialty Strategies Group led the pack, up 16.5 percent despite a 1.9 percent drop in November triggered by a fall in emerging markets.
Through November, the GGHFI was up 10.5 percent compared with 6.2 percent for the Standard & Poor's 500, 8 percent for MSCI World Equity, and 3.4 percent for the FTSE 100.
The Long-Short Equity Group lost 2.3 percent in November but was up 10.8 percent for the year. The Directional Trading Group, which bets on futures, was up 9.4 percent for the year, while the Market Neutral Group, was up 7.7 percent through November.
Among the hedge fund strategies tracked by the index, the Specialty Strategies Group led the pack, up 16.5 percent despite a 1.9 percent drop in November triggered by a fall in emerging markets.
Through November, the GGHFI was up 10.5 percent compared with 6.2 percent for the Standard & Poor's 500, 8 percent for MSCI World Equity, and 3.4 percent for the FTSE 100.
The Long-Short Equity Group lost 2.3 percent in November but was up 10.8 percent for the year. The Directional Trading Group, which bets on futures, was up 9.4 percent for the year, while the Market Neutral Group, was up 7.7 percent through November.
Hedge Fund Launch Expected From GMP Capital
GMP Capital Trust is expected to announced the launch of a new hedge fund this year, according to Canadian newspaper Globe and Mail. The $50-million hedge fund is to be co-headed by star trader Michael Wekerle.
The firm will put up $20-million, employees will add their own money and outside investors will be invited to join, according to the paper. GMP is following a blueprint drawn up by houses such as Goldman Sachs Group Inc., which gleans more than half its revenue from smart investments with its own capital. All the major Canadian dealers also have proprietary trading funds that use hedge fund strategies.
If the fund can build a successful track record, sources at GMP say they anticipate it will attract support from wealthy individuals and outside institutions such as pension funds, which have embraced alternative asset managers in recent years.
The new hedge fund is expected to deploy four investment strategies. There will be a traditional equity trading approach that includes taking long and short positions, the fund will also do credit trading, which would include buying distressed debt, plus what's known as program or algorithmic trading and options-based volatility investing.
Successful hedge funds created by domestic dealers include three-year old Flatiron Capital Management Partners, a $350-million (Canadian) fund backed by National Bank Financial and staffed by its former employees.
The firm will put up $20-million, employees will add their own money and outside investors will be invited to join, according to the paper. GMP is following a blueprint drawn up by houses such as Goldman Sachs Group Inc., which gleans more than half its revenue from smart investments with its own capital. All the major Canadian dealers also have proprietary trading funds that use hedge fund strategies.
If the fund can build a successful track record, sources at GMP say they anticipate it will attract support from wealthy individuals and outside institutions such as pension funds, which have embraced alternative asset managers in recent years.
The new hedge fund is expected to deploy four investment strategies. There will be a traditional equity trading approach that includes taking long and short positions, the fund will also do credit trading, which would include buying distressed debt, plus what's known as program or algorithmic trading and options-based volatility investing.
Successful hedge funds created by domestic dealers include three-year old Flatiron Capital Management Partners, a $350-million (Canadian) fund backed by National Bank Financial and staffed by its former employees.
Calvert Launches Alternative Energy Opportunities Abroad
Dublin based mutul fund manager Calvert Inc. announced the launched this year of the Calvert Global Alternative Energy Fund. The new hedge fund invests in a broad universe of U.S. and non-U.S. stocks, seeking out companies that are alternative energy market leaders as well as those building a significant presence in the sector.
Jens Peers, head of ECO Investing at Dublin-based KBC Asset Management International Ltd. and lead portfolio manager of the Calvert Global Alternative Energy Fund, said: “Non-U.S. companies and markets will benefit from the improving prospects for alternative energy in 2008 because Europe, Asia and other regions are further along than the U.S in addressing climate change and oil dependency by embracing alternative energy technologies.”
Over the long term, according to their website, Calvert believes that alternative energy technologies will become an increasingly significant solution to the global energy and climate change challenges. The firm believes it will take multiple strategies to address climate change and therefore advocates a broad range of solutions, such as greater energy efficiency and aggressive development of renewable energy sources.
The Fund was launched on May 31, 2007 and is advised by Calvert Asset Management Company, Inc. Calvert is one of the nation’s largest socially responsible mutual fund firms with approximately $16 billion in assets under management offering 41 funds that allow individual and institutional investors to pursue a broad range of investment objectives within a single fund family.
Jens Peers, head of ECO Investing at Dublin-based KBC Asset Management International Ltd. and lead portfolio manager of the Calvert Global Alternative Energy Fund, said: “Non-U.S. companies and markets will benefit from the improving prospects for alternative energy in 2008 because Europe, Asia and other regions are further along than the U.S in addressing climate change and oil dependency by embracing alternative energy technologies.”
Over the long term, according to their website, Calvert believes that alternative energy technologies will become an increasingly significant solution to the global energy and climate change challenges. The firm believes it will take multiple strategies to address climate change and therefore advocates a broad range of solutions, such as greater energy efficiency and aggressive development of renewable energy sources.
The Fund was launched on May 31, 2007 and is advised by Calvert Asset Management Company, Inc. Calvert is one of the nation’s largest socially responsible mutual fund firms with approximately $16 billion in assets under management offering 41 funds that allow individual and institutional investors to pursue a broad range of investment objectives within a single fund family.
14 Dec 2007
A Challenging Year For Hedge Funds Ends Well
The 2007 Credit Suisse Index shows that hedge funds have outperformed many major global equity indices for the year while maintaining considerably less volatility.
According to Oliver Schupp, President of the Credit Suisse Tremont Index, LLC, the Index finished the period with estimated annual returns of 12.1% for 2007 year to date through November 30.
“We are pleased to present a research piece analyzing the performance of the Credit Suisse/Tremont Hedge Fund Index for 2007,” said Mr. Schupp. “Hedge funds experienced a challenging year due to certain market events but finished the year through November 30 by outperforming many major global equity indices while maintaining considerably less volatility.”
2007 was characterized by unusually high levels of volatility that impacted hedge fund strategies and financial markets throughout the year. A major sell-off in China in late February sparked fears of an Asian crisis reminiscent of 1997. Unexpected liquidation of several high profile hedge funds, as well as November’s equity sell-off in markets worldwide. Nevertheless, hedge fund strategies performed well and the Broad Index returned 2.0% in the fourth quarter with all 10 sectors in positive territory through November 30th.
The asset management business of Credit Suisse is comprised of a number of legal entities around the world that are subject to distinct regulatory requirements; certain asset management products and services may not be available in all jurisdictions or to all client types.
According to Oliver Schupp, President of the Credit Suisse Tremont Index, LLC, the Index finished the period with estimated annual returns of 12.1% for 2007 year to date through November 30.
“We are pleased to present a research piece analyzing the performance of the Credit Suisse/Tremont Hedge Fund Index for 2007,” said Mr. Schupp. “Hedge funds experienced a challenging year due to certain market events but finished the year through November 30 by outperforming many major global equity indices while maintaining considerably less volatility.”
2007 was characterized by unusually high levels of volatility that impacted hedge fund strategies and financial markets throughout the year. A major sell-off in China in late February sparked fears of an Asian crisis reminiscent of 1997. Unexpected liquidation of several high profile hedge funds, as well as November’s equity sell-off in markets worldwide. Nevertheless, hedge fund strategies performed well and the Broad Index returned 2.0% in the fourth quarter with all 10 sectors in positive territory through November 30th.
The asset management business of Credit Suisse is comprised of a number of legal entities around the world that are subject to distinct regulatory requirements; certain asset management products and services may not be available in all jurisdictions or to all client types.
Hedge Funds Sector Positioned To Recover Quickly, F&C Partner Speculates
Commenting on the subprime crisis, Francois Barthelemy, partner at hedge fund F&C Partners said, "Hedge funds tend to suffer in very volatile environments but well-managed portfolios often recover quickly, once the market has come back to some sort of rational pricing of assets."
Despite the recent volatility that led many to describe November as the 'bloodiest' month for hedge funds, the sector is well positioned to benefit from the current turmoil.
Barthelemy explained, "The real question that people are struggling with is that there are a number of signs indicating that we might be moving into recession territory. We have had three great years where the way to make money was about growth and it seems we are now moving into a very different environment."
He belives, "the solution requires the raising of fresh capital and the selling of impaired assets to investors who will have the ability to work them through bankruptcies or restructuring," he said. "Only hedge funds have the legal and investment expertise to buy that type of assets and they are likely to do really well as a result of it."
Between December 2000 and December 2004, the Credit Suisse Tremont Distressed Hedge Fund Index was up +72%, while the MSCI World Index was down -2%. "We expect the next few years will see a repeat of this scenario."
Outside distressed assets, there are also attractive opportunities in a number of traditional investment sectors but not on a standalone basis. "While alpha is now easier to find, the beta of the market may kill you. This means it is the best of times for hedged strategies that aim to take most of the beta out of the return," he said.
Barthelemy, whose team is responsible for the management of the F&C Balanced Alpha Fund of Hedge Funds and the F&C Select Alpha Fund of Hedge Funds, concluded, "There is not doubt the world is very volatile and I don't think that buying just equity will work in the next few years. Volatility is not going to go away for a while and you will need a strategy that can cope with that. For me that means hedge funds."
Despite the recent volatility that led many to describe November as the 'bloodiest' month for hedge funds, the sector is well positioned to benefit from the current turmoil.
Barthelemy explained, "The real question that people are struggling with is that there are a number of signs indicating that we might be moving into recession territory. We have had three great years where the way to make money was about growth and it seems we are now moving into a very different environment."
He belives, "the solution requires the raising of fresh capital and the selling of impaired assets to investors who will have the ability to work them through bankruptcies or restructuring," he said. "Only hedge funds have the legal and investment expertise to buy that type of assets and they are likely to do really well as a result of it."
Between December 2000 and December 2004, the Credit Suisse Tremont Distressed Hedge Fund Index was up +72%, while the MSCI World Index was down -2%. "We expect the next few years will see a repeat of this scenario."
Outside distressed assets, there are also attractive opportunities in a number of traditional investment sectors but not on a standalone basis. "While alpha is now easier to find, the beta of the market may kill you. This means it is the best of times for hedged strategies that aim to take most of the beta out of the return," he said.
Barthelemy, whose team is responsible for the management of the F&C Balanced Alpha Fund of Hedge Funds and the F&C Select Alpha Fund of Hedge Funds, concluded, "There is not doubt the world is very volatile and I don't think that buying just equity will work in the next few years. Volatility is not going to go away for a while and you will need a strategy that can cope with that. For me that means hedge funds."
13 Dec 2007
Alternative Energy Fund Launch by Guinness Atkinson
Guiness Atkinson Asset Management has launched an alternative energy fund for UK and European investors. The fund is managed by a team of three fund managers, Tim Guinness as the Lead Manager and Edward Guinness and Matthew Page as Co-Managers.
With a 50/50 top-down/bottom-up approach, the fund looks to identify the sub sectors within the space which have the greatest potential for growth and strong returns.
Tim Guinness said in an interview with Alt Energy Stocks, "I have been running a conventional energy fund since 1998 and have been following alternative energy stocks as a sub sector within the energy universe since then."
"Recently we have preferred wind and solar over fuel cells and biofuels but this is constantly under review." Guinness said, "We then screen the universe of 200 stocks we have identified to try and identify good companies that are cheap where sentiment towards them is improving and stock price action is positive. One tool we use is to screen by value, earnings momentum, economic returns vs peers, and a technical indicator."
Alternative energy includes, but is not limited to power generated through solar, wind, hydroelectric, tidal wave, geothermal, biomass or biofuels. Energy technology includes technologies that enable these sources to be tapped and also various manners of storage and transportation of energy, including hydrogen and other types of fuel cells, batteries and flywheels, as well as technologies that conserve or enable more efficient use of energy.
With a 50/50 top-down/bottom-up approach, the fund looks to identify the sub sectors within the space which have the greatest potential for growth and strong returns.
Tim Guinness said in an interview with Alt Energy Stocks, "I have been running a conventional energy fund since 1998 and have been following alternative energy stocks as a sub sector within the energy universe since then."
"Recently we have preferred wind and solar over fuel cells and biofuels but this is constantly under review." Guinness said, "We then screen the universe of 200 stocks we have identified to try and identify good companies that are cheap where sentiment towards them is improving and stock price action is positive. One tool we use is to screen by value, earnings momentum, economic returns vs peers, and a technical indicator."
Alternative energy includes, but is not limited to power generated through solar, wind, hydroelectric, tidal wave, geothermal, biomass or biofuels. Energy technology includes technologies that enable these sources to be tapped and also various manners of storage and transportation of energy, including hydrogen and other types of fuel cells, batteries and flywheels, as well as technologies that conserve or enable more efficient use of energy.
12 Dec 2007
Hedge Funds Low in November but High Year To Date
The Greenwich Global Hedge Fund Index is up +10.53% year-to-date despite falling -1.61% in November, and it continues to outpace equities for the month and year.
Ben Rossman, Senior Vice President of Greenwich Alternative Investments noted that, “Hedge fund performance, which was less severe than that felt by the equity markets, highlights their unique ability to limit the downside.”
All four equity indices were down by more than 4% in November: the S&P 500, MSCI World Equity, and FTSE 100 Indices posted -4.18% (+6.23% YTD), -4.24% (+7.97% YTD), and -4.30% (+3.41% YTD), respectively.
The November Index currently includes 1,325 funds. Final November results will be posted in early January, once additional funds have submitted returns.
Greenwich Alternative Investments, LLC (and its affiliates) is among the oldest providers of hedge fund indices, asset management services and research to institutional investors worldwide.
Ben Rossman, Senior Vice President of Greenwich Alternative Investments noted that, “Hedge fund performance, which was less severe than that felt by the equity markets, highlights their unique ability to limit the downside.”
All four equity indices were down by more than 4% in November: the S&P 500, MSCI World Equity, and FTSE 100 Indices posted -4.18% (+6.23% YTD), -4.24% (+7.97% YTD), and -4.30% (+3.41% YTD), respectively.
The November Index currently includes 1,325 funds. Final November results will be posted in early January, once additional funds have submitted returns.
Greenwich Alternative Investments, LLC (and its affiliates) is among the oldest providers of hedge fund indices, asset management services and research to institutional investors worldwide.
Hedge Funds Experiencing Staff Shortages
According to a new survey conducted by CPA firm Rothstein Kass, nearly 70% of hedge funds are having difficulty retaining back-office personnel. "Hedge funds have seen tremendous inflows of capital in recent years, a trend that has accelerated as sophisticated investors seek to mitigate risk in volatile market conditions," said Howard Altman, Co-Managing Principal of Rothstein Kass.
"However, as our research reveals, the rapid pace of industry growth has left back-offices more pressured than ever before. Firms of all sizes are struggling to retain qualified personnel amid existing staffing shortages, including the CFO and COO levels. These problems will only be exacerbated by the industry's increasing institutional focus, since these investors generally demand stricter reporting and compliance capabilities."
Survey findings were based on interviews with over 500 Chief Financial Officers at direct investment hedge funds with at least $100 million in assets under management.
Firms in the study are representative of a wide range of investment styles, experience levels and assets under management. Approximately half had assets between $100 and $999 million. A quarter reported assets of between $1 and $2.99 billion, and the balance were firms with assets in excess of $3 billion.
The study was commissioned and results analyzed by the Rothstein Kass Executive Search Group, which specializes in the recruitment and placement of senior financial executives and staff at alternative investments companies.
"It was clear to us from our daily interactions with clients, that .......it's a time of unprecedented opportunity for talented individuals looking for an exciting career in the hedge fund industry."
Findings are summarized in "The Compensation Conundrum," co- authored by Russ Alan Prince, a leading authority and counselor on private wealth, and Hannah Shaw Grove, a widely recognized expert on behaviors and finances of high-net-worth individuals.
"The Compensation Conundrum" also provides 2007 total compensation projections for key non-investment roles at hedge fund organizations, including CFO, COO and Controller. Figures are composed of base salary and bonus. "Our compensation figures offer ranges for total compensation by position and will serve as a benchmark for future research." said Todd Noah.
"However, as our research reveals, the rapid pace of industry growth has left back-offices more pressured than ever before. Firms of all sizes are struggling to retain qualified personnel amid existing staffing shortages, including the CFO and COO levels. These problems will only be exacerbated by the industry's increasing institutional focus, since these investors generally demand stricter reporting and compliance capabilities."
Survey findings were based on interviews with over 500 Chief Financial Officers at direct investment hedge funds with at least $100 million in assets under management.
Firms in the study are representative of a wide range of investment styles, experience levels and assets under management. Approximately half had assets between $100 and $999 million. A quarter reported assets of between $1 and $2.99 billion, and the balance were firms with assets in excess of $3 billion.
The study was commissioned and results analyzed by the Rothstein Kass Executive Search Group, which specializes in the recruitment and placement of senior financial executives and staff at alternative investments companies.
"It was clear to us from our daily interactions with clients, that .......it's a time of unprecedented opportunity for talented individuals looking for an exciting career in the hedge fund industry."
Findings are summarized in "The Compensation Conundrum," co- authored by Russ Alan Prince, a leading authority and counselor on private wealth, and Hannah Shaw Grove, a widely recognized expert on behaviors and finances of high-net-worth individuals.
"The Compensation Conundrum" also provides 2007 total compensation projections for key non-investment roles at hedge fund organizations, including CFO, COO and Controller. Figures are composed of base salary and bonus. "Our compensation figures offer ranges for total compensation by position and will serve as a benchmark for future research." said Todd Noah.
4 Dec 2007
Hedge Fund Operator Acquired For $1.32 Billion
In a deal worth up to $1.32 billion, London hedge fund operator Marble Bar Asset Management LLP has been bought by Swiss private banking group EFG International.
EFG said it will initially pay $517 million in cash, plus a further $300 million to $800 million over the next six years, depending on the performance of Marble Bar's funds. Of the initial cash payment to Marble Bar partners and staff, about $400 million will be reinvested in Marble Bar funds for up to six years.
In a press release yesterday, EFG said that the purchase broadens its capabilities in hedge funds and brings the hedge fund-related assets it manages to around $13.3 billion , or 18% of clients funds. Last year, EFG bought fund of hedge funds manager C.M. Advisors for an undisclosed amount.
According to Hedge Fund Research Inc., investors have poured $164 billion into hedge funds in the first nine months of 2007, boosting global assets to $1.8 trillion.
Chief Executive of EFG, Lonnie Howell, said buying Marble Bar gives the bank access to "sheer talent" and will help it meet demand from wealthy individuals for hedge fund investments.
Marble Bar's 2008 net profit is expected be at least $80 million to $100 million EFG said, meaning the purchase price is about 10 times estimated earnings.
EFG said it will initially pay $517 million in cash, plus a further $300 million to $800 million over the next six years, depending on the performance of Marble Bar's funds. Of the initial cash payment to Marble Bar partners and staff, about $400 million will be reinvested in Marble Bar funds for up to six years.
In a press release yesterday, EFG said that the purchase broadens its capabilities in hedge funds and brings the hedge fund-related assets it manages to around $13.3 billion , or 18% of clients funds. Last year, EFG bought fund of hedge funds manager C.M. Advisors for an undisclosed amount.
According to Hedge Fund Research Inc., investors have poured $164 billion into hedge funds in the first nine months of 2007, boosting global assets to $1.8 trillion.
Chief Executive of EFG, Lonnie Howell, said buying Marble Bar gives the bank access to "sheer talent" and will help it meet demand from wealthy individuals for hedge fund investments.
Marble Bar's 2008 net profit is expected be at least $80 million to $100 million EFG said, meaning the purchase price is about 10 times estimated earnings.
3 Dec 2007
Dexion Fund Of Hedge Funds Raise $274.4 Million
Dexion Absolute Limited has now become one of the world's largest exchange-traded funds of hedge funds (FOHF) with net assets of GBP 512 million ($1,056.5 million).
The London Stock Exchange-listed FOHF completed the multi-currency share issue raising GBP 133 million ($274.4 million). The issue was sponsored by Hoare Govett Limited, a member of the ABN AMRO group.
Dexion director Nick Browne said, "We are very pleased with the response to this issue. We have built on the foundations established earlier this year in a number of jurisdictions across Europe and Asia, received strong support from many existing shareholders and gained a wide range of significant new pension fund and other institutional investors."
Bob Cowdell, managing director at ABN AMRO, is quick to point out the significance of the share issue. "This is the largest capital-raising to date in the London-listed funds of hedge funds sector," he says. "It has more than doubled the size of the Company's Euro and US Dollar share classes introduced earlier this year.'
The fund of hedge funds provides direct access to Harris Alternatives LLC manager of the 'Aurora' range of funds. With a 17-year investment record Harris Alternatives currently manages in excess of $7 billion in funds of hedge funds and segregated accounts.
Dexion's investment objective is to generate consistent long-term capital appreciation with low volatility and little correlation to the general equity and bond markets through a portfolio having a diversified risk profile. The FOHF has a database of approximately 550 FOHF managers.
The London Stock Exchange-listed FOHF completed the multi-currency share issue raising GBP 133 million ($274.4 million). The issue was sponsored by Hoare Govett Limited, a member of the ABN AMRO group.
Dexion director Nick Browne said, "We are very pleased with the response to this issue. We have built on the foundations established earlier this year in a number of jurisdictions across Europe and Asia, received strong support from many existing shareholders and gained a wide range of significant new pension fund and other institutional investors."
Bob Cowdell, managing director at ABN AMRO, is quick to point out the significance of the share issue. "This is the largest capital-raising to date in the London-listed funds of hedge funds sector," he says. "It has more than doubled the size of the Company's Euro and US Dollar share classes introduced earlier this year.'
The fund of hedge funds provides direct access to Harris Alternatives LLC manager of the 'Aurora' range of funds. With a 17-year investment record Harris Alternatives currently manages in excess of $7 billion in funds of hedge funds and segregated accounts.
Dexion's investment objective is to generate consistent long-term capital appreciation with low volatility and little correlation to the general equity and bond markets through a portfolio having a diversified risk profile. The FOHF has a database of approximately 550 FOHF managers.
20 Nov 2007
Alpha Titans Fund of Fund Launch
Alpha Titans, a multi-manager hedge fund announced that it will be open to outside investors from December 1st, the fund of funds was launched on November 1st 2007.
Alpha Titans was launched with equal allocations to DE Shaw, Renaissance, Citadel, IKOS and Whitebox. Most of these managers are either closed to new investors, or cannot be acquired by new investors without very high minimums and lockups. Alpha Titans has favorable liquidity terms with many of these managers due to long-standing investments with them.
Alpha Titans is offered to qualified investors through onshore and offshore funds. With a minimum initial investments of $100,000, the fund of funds has quarterly liquidity and no redemption penalties. Investors have the opportunity to choose from three different share classes of leverage, 1x, 1.5x and 2x.
Alpha Titan is an alpha-return investment manager that has achieved superior risk-adjusted returns through skill-based investing.
Alpha Titans was launched with equal allocations to DE Shaw, Renaissance, Citadel, IKOS and Whitebox. Most of these managers are either closed to new investors, or cannot be acquired by new investors without very high minimums and lockups. Alpha Titans has favorable liquidity terms with many of these managers due to long-standing investments with them.
Alpha Titans is offered to qualified investors through onshore and offshore funds. With a minimum initial investments of $100,000, the fund of funds has quarterly liquidity and no redemption penalties. Investors have the opportunity to choose from three different share classes of leverage, 1x, 1.5x and 2x.
Alpha Titan is an alpha-return investment manager that has achieved superior risk-adjusted returns through skill-based investing.
19 Nov 2007
Global Investment Fund Now Open
West Palm Beach (HedgeCo.Net)- Global Investment House has announced the Global Distressed Fund is now open for new and existing investors until the end of December.
The Barclays group, the world's largest independent hedge fund research company, ranked the Fund earlier this year as the 4th best Fund of Hedge Funds in the world, in terms of risk adjusted return, from a list of 647 funds.
The fund was also ranked by EurekaHedge among the top ten distressed fund of funds in terms of its annualized return, standard deviation, and Sharpe ratio.
Mr. Sameer Al-Gharaballi, Executive Vice President at Global, said the fund's reopening presents an opportunity to invest in one of the best and highly ranked fund of hedge funds.
Al- Gharaballi confirmed that the fund presents an opportunity for investors seeking diversification from local markets with low risk, adding that Global may provide interested investors with loans on invested capital, as a show of confidence in the fund's stable performance.
The Barclays group, the world's largest independent hedge fund research company, ranked the Fund earlier this year as the 4th best Fund of Hedge Funds in the world, in terms of risk adjusted return, from a list of 647 funds.
The fund was also ranked by EurekaHedge among the top ten distressed fund of funds in terms of its annualized return, standard deviation, and Sharpe ratio.
Mr. Sameer Al-Gharaballi, Executive Vice President at Global, said the fund's reopening presents an opportunity to invest in one of the best and highly ranked fund of hedge funds.
Al- Gharaballi confirmed that the fund presents an opportunity for investors seeking diversification from local markets with low risk, adding that Global may provide interested investors with loans on invested capital, as a show of confidence in the fund's stable performance.
16 Nov 2007
$2.3 Million Raised By 100 Women in Hedge Funds
The hedge fund industry raised $ 2.3 million at the Sixth 100 Women in Hedge Funds Gala at Cipriani in New York City.
Many well-known leaders in the hedge fund industry attended the gala celebration, among them Tudor Investment Management, Williams Trading, Blue Ridge Capital, Highbridge Capital Management, Eton Park Capital Management, Moore Capital and Atticus Capital.
John Griffin, Founder and President of Blue Ridge Capital, who founded iMentor in 1999 remarked, "We are absolutely delighted to be this year's 100 Women in Hedge Funds beneficiary." To-date, iMentor has matched and supported over 4,000 mentor-mentee pairs, partnering with over 30 schools and after-school programs in underserved communities.
100 Women in Hedge Funds annually presents two awards that have historically recognized under-the-radar achievements and leadership. The 2007 Effecting Change award honored many leaders across the hedge fund industry who serve as powerful examples of effective mentoring.
The 2007 Industry Leadership Award was awarded to Jane Mendillo, Chief Investment Officer, Wellesley College in recognition of her talent, ethics and passion, which help define the hedge fund industry's standard of excellence.
Since its first session in 2002, 100 Women in Hedge Funds has hosted more than 150 events globally, connected more than 150 senior women through their Peer Advisory Councils and raised in excess of $13 million for philanthropic causes in the areas of women's health, education and mentoring.
Many well-known leaders in the hedge fund industry attended the gala celebration, among them Tudor Investment Management, Williams Trading, Blue Ridge Capital, Highbridge Capital Management, Eton Park Capital Management, Moore Capital and Atticus Capital.
John Griffin, Founder and President of Blue Ridge Capital, who founded iMentor in 1999 remarked, "We are absolutely delighted to be this year's 100 Women in Hedge Funds beneficiary." To-date, iMentor has matched and supported over 4,000 mentor-mentee pairs, partnering with over 30 schools and after-school programs in underserved communities.
100 Women in Hedge Funds annually presents two awards that have historically recognized under-the-radar achievements and leadership. The 2007 Effecting Change award honored many leaders across the hedge fund industry who serve as powerful examples of effective mentoring.
The 2007 Industry Leadership Award was awarded to Jane Mendillo, Chief Investment Officer, Wellesley College in recognition of her talent, ethics and passion, which help define the hedge fund industry's standard of excellence.
Since its first session in 2002, 100 Women in Hedge Funds has hosted more than 150 events globally, connected more than 150 senior women through their Peer Advisory Councils and raised in excess of $13 million for philanthropic causes in the areas of women's health, education and mentoring.
15 Nov 2007
Germany as Europe's Most Attractive Destination For Renewable Energy Investors
Germany has emerged as Europe's most attractive destination for commercial investors in the renewable energy sector, while the UK has lost momentum due to a comparative lack of pace on policy matters, according to the latest "Ernst & Young Renewable Energy Country Attractiveness Indices", which tracks and scores global investment in renewable energy.
The index, launched at the World Energy Congress in Rome, reveals that Germany has jumped from fifth to second place, displacing the UK, India and Spain, which jointly held this position last quarter.
It also suggests that although the credit crunch has left many investors overexposed to certain sectors, renewables projects still offer a relatively low-risk option for investors.
Although EU countries dominate the Country Attractiveness Indices, the US remains the most attractive destination overall for investment in renewables, a position it has held for two years.
Jonathan Johns, Head of Renewable Energy at Ernst & Young, says the US will continue to attract the lion's share of global investment particularly if changes to legislation continue.
The Ernst & Young Country Attractiveness Indices provide scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies. The indices provide scores out of 100 and are updated on a regular basis.
The index, launched at the World Energy Congress in Rome, reveals that Germany has jumped from fifth to second place, displacing the UK, India and Spain, which jointly held this position last quarter.
It also suggests that although the credit crunch has left many investors overexposed to certain sectors, renewables projects still offer a relatively low-risk option for investors.
Although EU countries dominate the Country Attractiveness Indices, the US remains the most attractive destination overall for investment in renewables, a position it has held for two years.
Jonathan Johns, Head of Renewable Energy at Ernst & Young, says the US will continue to attract the lion's share of global investment particularly if changes to legislation continue.
The Ernst & Young Country Attractiveness Indices provide scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies. The indices provide scores out of 100 and are updated on a regular basis.
BlackRock Launches Distressed Securities Funds
BlackRock, the biggest listed US asset manager, on Tuesday announced the launch of more distressed securities funds to take advantage of the current credit market troubles, according to Reuters.
Chairman and Chief Executive Laurence Fink said the firm would launch hedge funds investing in distressed mortgages and distressed real estate. These funds would raise "multibillion dollars". BlackRock has already raised a "very large" leveraged-loan fund and is now in the process of investing the money.
Just last week, BlackRock again earned first place in DALBAR’s 2007 Trends & Best Practices in the "Leading Mutual Fund Statements" category. DALBAR issues this award annually.
"At BlackRock, our goal is to produce a comprehensive investor statement tailored to
shareholder needs" said Anne Ackerley, managing director at BlackRock. "Receiving this award for three consecutive years demonstrates our successes and is a clear indication of our ability to deliver beyond expectations and surpass the industry standard."
BlackRock is one of the world’s largest publicly traded investment management firms. With a reported AUM of $1.3 trillion as of September 30, 2007.
Chairman and Chief Executive Laurence Fink said the firm would launch hedge funds investing in distressed mortgages and distressed real estate. These funds would raise "multibillion dollars". BlackRock has already raised a "very large" leveraged-loan fund and is now in the process of investing the money.
Just last week, BlackRock again earned first place in DALBAR’s 2007 Trends & Best Practices in the "Leading Mutual Fund Statements" category. DALBAR issues this award annually.
"At BlackRock, our goal is to produce a comprehensive investor statement tailored to
shareholder needs" said Anne Ackerley, managing director at BlackRock. "Receiving this award for three consecutive years demonstrates our successes and is a clear indication of our ability to deliver beyond expectations and surpass the industry standard."
BlackRock is one of the world’s largest publicly traded investment management firms. With a reported AUM of $1.3 trillion as of September 30, 2007.
13 Nov 2007
Hedge Funds More Proactive in Search for New Research
Hedge funds manage external research more proactively than long only managers, according to a study released by Integrity Research Associates. Hedge funds review their external research more frequently than long only investment managers, are three times more likely to seek assistance finding external research, and are much less confident that they have already found the best sources of external research.
“Our study confirms that hedge funds are more aggressively seeking out new sources of research than long only managers,” says Michael Mayhew, Integrity’s chairman and author of the study. “Long only managers are complacent about external research whereas hedge funds are continuously looking for what’s new and innovative.”
Conducted in October, 2007, the survey polled forty-three research directors at US based hedge funds and long only institutional investors. The survey focused on how institutional investors source and value external research. Highlights from the study include:
• Forty-two percent (42%) of hedge funds evaluate their portfolio of research providers at least monthly compared to five percent (5%) of long only managers.
• Hedge funds are three times more likely to use external sources to identify research, with forty-five percent (45%) of hedge fund research directors using outside sources compared to thirteen percent (13%) for long only directors of research.
• Thirty percent (30%) of hedge funds were either Not Too Confident or Somewhat Confident that they are using the best external research available compared to eighteen percent (18%) of long only managers.
“As long only managers introduce more alternative product like 130/30 funds, they are talking the talk, but our survey suggests that they are not yet walking the walk,” adds Mayhew.
“Our study confirms that hedge funds are more aggressively seeking out new sources of research than long only managers,” says Michael Mayhew, Integrity’s chairman and author of the study. “Long only managers are complacent about external research whereas hedge funds are continuously looking for what’s new and innovative.”
Conducted in October, 2007, the survey polled forty-three research directors at US based hedge funds and long only institutional investors. The survey focused on how institutional investors source and value external research. Highlights from the study include:
• Forty-two percent (42%) of hedge funds evaluate their portfolio of research providers at least monthly compared to five percent (5%) of long only managers.
• Hedge funds are three times more likely to use external sources to identify research, with forty-five percent (45%) of hedge fund research directors using outside sources compared to thirteen percent (13%) for long only directors of research.
• Thirty percent (30%) of hedge funds were either Not Too Confident or Somewhat Confident that they are using the best external research available compared to eighteen percent (18%) of long only managers.
“As long only managers introduce more alternative product like 130/30 funds, they are talking the talk, but our survey suggests that they are not yet walking the walk,” adds Mayhew.
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