Hedge fund managers, gurus and 'Out of the box' guest speakers are gathering at the Grimaldi Forum to debate distressed investing issues and macro strategies for 2008.
The 14th Annual Gaim International 2008, a global hedge fund industry conference is being held tomorrow through Thursday in Monaco. The conference has 40 slots over 3 days and will cover issues such as the state of the world economy to strategy and hedge fund philanthropy.
1100 investors, distributors and asset managers are expected at the hedge fund industry’s flagship conference, attracting the largest proportion of asset allocators in hedge funds than any other alternatives event.
Hedge fund experts are scheduled to speak at the meeting, and the guest speakers include former holder of the land speed record, Richard Noble.
The conference is taking place as the $2.6 trillion hedge fund industry confronts poor returns and investor outflows and searches for a follow-up to the favored strategy for 2007, which was taking bets on the explosion in subprime loans.
16 Jun 2008
13 Jun 2008
JPMorgan to Launch European Hedge Fund Into UK
JPMorgan Asset Management is planning to expand one of their European hedge funds into the UK market in the coming weeks, according to FT.
The JPM Highbridge Statistical Market Neutral fund was launched in Luxembourg in 2006 and has had great success from retail investors wanting access to hedge fund techniques. The hedge fund has raised over £5.14 billion ($10 billion ) since November 2006.
Michael Parsons, head of UK retail sales described the offering as being attractive to those who "don't want long exposure in US markets" but are still looking for an attractive investment opportunity, FT said. On the back of the success of this, JPMAM is to distribute the fund in the UK with a sterling hedged share class.
JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries.
The JPM Highbridge Statistical Market Neutral fund was launched in Luxembourg in 2006 and has had great success from retail investors wanting access to hedge fund techniques. The hedge fund has raised over £5.14 billion ($10 billion ) since November 2006.
Michael Parsons, head of UK retail sales described the offering as being attractive to those who "don't want long exposure in US markets" but are still looking for an attractive investment opportunity, FT said. On the back of the success of this, JPMAM is to distribute the fund in the UK with a sterling hedged share class.
JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries.
12 Jun 2008
US Hedge Fund to Manage $88 Billion in UK Outsourcing Funds
Leading UK investment manager, Hermes Fund Managers Limited (Hermes), announced the appointment of US hedge fund manager Northern Trust, to provide middle office outsourcing fund administration and custody.
With an anticipated £23 billion ($45 billion) in assets under management, the middle office plans to include the UK's largest Pension Scheme ("BTPS"), which will be in excess of £45 billion ($88 bilion).
As part of the arrangement Northern Trust will also support the launch of Hermes' new range of Dublin-based funds providing trustee, custody, fund accounting and transfer agency services.
"Northern Trust was appointed following a rigorous selection and due diligence process from a short-list of two providers." Rupert Clarke, Chief Executive of Hermes said, "Outsourcing these functions is consistent with our strategy of focusing on growing a specialist investment management business."
Northern Trust, a multibank holding company based in Chicago, has international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region. Northern Trust had assets under custody of $4.0 trillion, and assets under investment management of $778.6 billion.
Hermes currently has £36.2 billion ($70.4 billion) under management, investing assets on behalf of 206 clients, including pension funds, insurance companies, government entities and financial institutions, as well as charities and endowments.
With an anticipated £23 billion ($45 billion) in assets under management, the middle office plans to include the UK's largest Pension Scheme ("BTPS"), which will be in excess of £45 billion ($88 bilion).
As part of the arrangement Northern Trust will also support the launch of Hermes' new range of Dublin-based funds providing trustee, custody, fund accounting and transfer agency services.
"Northern Trust was appointed following a rigorous selection and due diligence process from a short-list of two providers." Rupert Clarke, Chief Executive of Hermes said, "Outsourcing these functions is consistent with our strategy of focusing on growing a specialist investment management business."
Northern Trust, a multibank holding company based in Chicago, has international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region. Northern Trust had assets under custody of $4.0 trillion, and assets under investment management of $778.6 billion.
Hermes currently has £36.2 billion ($70.4 billion) under management, investing assets on behalf of 206 clients, including pension funds, insurance companies, government entities and financial institutions, as well as charities and endowments.
11 Jun 2008
GGHFI Reports Strong Hedge Fund Performance in May
The Greenwich Global Hedge Fund Index(GGHFI)reported May returns of +2.01% while the Greenwich Composite Investable Index returned +1.66%. The May Index currently includes 1345 constituent funds.
By comparison, the S&P 500 showed gains of +1.29%, while MSCI World Equity and FTSE 100 indices posted returns of +1.11% and -0.56%.
"Across the board, hedge funds performed well in May. But the real story is told when comparing year-to-date performance," notes Margaret Gilbert, Managing Director. "Hedge funds are positive for the year compared to the major equity indices which still remain negative."
For the second month in a row, Long/Short Equity managers were the best performing strategy group, posting a gain of +2.35%. Directional Trading managers, the best performing strategy group so far this year, exhibited another strong month, returning +2.00%.
Specialty Strategy managers were the second-best performing strategy group, returning +2.10% on average. The Market Neutral Group averaged +1.39% on the month as Event Driven managers continued to find opportunities in uncertain markets.
By comparison, the S&P 500 showed gains of +1.29%, while MSCI World Equity and FTSE 100 indices posted returns of +1.11% and -0.56%.
"Across the board, hedge funds performed well in May. But the real story is told when comparing year-to-date performance," notes Margaret Gilbert, Managing Director. "Hedge funds are positive for the year compared to the major equity indices which still remain negative."
For the second month in a row, Long/Short Equity managers were the best performing strategy group, posting a gain of +2.35%. Directional Trading managers, the best performing strategy group so far this year, exhibited another strong month, returning +2.00%.
Specialty Strategy managers were the second-best performing strategy group, returning +2.10% on average. The Market Neutral Group averaged +1.39% on the month as Event Driven managers continued to find opportunities in uncertain markets.
9 Jun 2008
Man Group Invests in Weather and CAT Bond Company
Man Group has agreed to pay $50 million for a 25% stake in Nephila Capital, an alternative investment manager specializing in insurance-based instruments such as insurance linked securities, catastrophe bonds, insurance swaps and weather derivatives.
The CEO of Man Group plc, Peter Clarke, said, "This transaction further develops Man's strategy to expand the range of opportunities for our investors. The natural catastrophe and weather derivative markets offer significant opportunities for uncorrelated alternative investment returns. We are excited at the prospects of this strategic partnership and what it means for our and Nephila's investors."
The investment, which follows Man's purchase of 50% of credit specialist Ore Hill in March, comes as the increasingly competitive hedge fund industry hunts for sources of extra return not correlated with traditional markets.
Bermuda-based Nephila, which manages around $2.4 billion in assets and employs 25 staff, specialises in insurance-based instruments such as insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives, Man said in a statement on Friday.
Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man manages over $78 billion and employs 1,600 people in 13 countries worldwide.
The CEO of Man Group plc, Peter Clarke, said, "This transaction further develops Man's strategy to expand the range of opportunities for our investors. The natural catastrophe and weather derivative markets offer significant opportunities for uncorrelated alternative investment returns. We are excited at the prospects of this strategic partnership and what it means for our and Nephila's investors."
The investment, which follows Man's purchase of 50% of credit specialist Ore Hill in March, comes as the increasingly competitive hedge fund industry hunts for sources of extra return not correlated with traditional markets.
Bermuda-based Nephila, which manages around $2.4 billion in assets and employs 25 staff, specialises in insurance-based instruments such as insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives, Man said in a statement on Friday.
Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man manages over $78 billion and employs 1,600 people in 13 countries worldwide.
6 Jun 2008
AIG and Larch Lane Create Hedge Fund Seeding Deal
Hedge Fund Investor AIG and Advisor Larch Lane have announced the formation of a joint venture to make seed investments in hedge funds. The joint venture seeks to capitalize on synergies between AIG Investments' global alternative investment and hedge fund capabilities and Larch Lane's specialization in hedge fund seeding.
Targets may include hedge fund start-ups, teams leaving established hedge funds, and established hedge funds in need of restructuring. They anticipate investing $50-200 million per deal across a wide range of hedge fund strategies and geographies.
"Talented investors are leaving large hedge funds to start their own businesses, but many of them have not been able to reach their capital targets." Mark Jurish, Larch Lane's CEO said, "The current supply/demand imbalance for start-up hedge fund capital represents the best seeding opportunity I've ever seen"
AIG Investments has been investing in hedge funds for 26 years and currently manages over $10 billion of hedge fund assets. AIG is currently invested in more than 130 hedge funds, including emerging managers. Larch Lane, the alternative investment affiliate of Old Mutual Asset Management, is among the pioneers in the hedge fund seeding business and has made a total of 22 seed investments over the course of the last seven years.
Targets may include hedge fund start-ups, teams leaving established hedge funds, and established hedge funds in need of restructuring. They anticipate investing $50-200 million per deal across a wide range of hedge fund strategies and geographies.
"Talented investors are leaving large hedge funds to start their own businesses, but many of them have not been able to reach their capital targets." Mark Jurish, Larch Lane's CEO said, "The current supply/demand imbalance for start-up hedge fund capital represents the best seeding opportunity I've ever seen"
AIG Investments has been investing in hedge funds for 26 years and currently manages over $10 billion of hedge fund assets. AIG is currently invested in more than 130 hedge funds, including emerging managers. Larch Lane, the alternative investment affiliate of Old Mutual Asset Management, is among the pioneers in the hedge fund seeding business and has made a total of 22 seed investments over the course of the last seven years.
3 Jun 2008
Hedge Fund Expansion Into Development Property
Hedge fund Three Arch Investors has begun buying tracts of abandoned development land in California.
“Property and land values in California have dropped to very low lows and at some stage they will recover." John Godden, managing partner of London-based IGS Group said, “This is the ultimate way to play what everyone knows to be the situation.”
"The price of homes have fallen by a little under 20% over the past year, and land prices have slumped by almost 80%." David Michelson, manager of the California Distressed Land Fund said. “The banks do not want this stuff, they want to get rid of it,” he said.
The fund, which has a target size of $150m to $250m, provides an alternative to commercial property funds or residential property index derivatives for those seeking to benefit from any upswing in the property sector.
“Property and land values in California have dropped to very low lows and at some stage they will recover." John Godden, managing partner of London-based IGS Group said, “This is the ultimate way to play what everyone knows to be the situation.”
"The price of homes have fallen by a little under 20% over the past year, and land prices have slumped by almost 80%." David Michelson, manager of the California Distressed Land Fund said. “The banks do not want this stuff, they want to get rid of it,” he said.
The fund, which has a target size of $150m to $250m, provides an alternative to commercial property funds or residential property index derivatives for those seeking to benefit from any upswing in the property sector.
Stanley Fink Retires From Man Group
Man Group announced the retirement of hedge fund magnate Stanley Fink, who will not be seeking re-election as a Director. He stepped down from Chief Executive in April of last year to become Deputy Chairman.
Fink joined Man in 1987 and was Chief Executive for seven years till 2000, prior to which he ran the investment management business.
"I have spent more than 21 years at Man Group, and have been on the Board for all but the first six months of that time," Stanley Fink said regarding his time with Man Group, "during which the company has undergone immense change which has seen it emerge as a leading player in the alternative asset management industry."
Fink also said, "I have many commercial and philanthropic interests outside Man Group to which I am increasingly committed and I am eager to pursue these, and other new opportunities, more fully."
Man is the leading global alternative investment management business, the original business being founded in 1783. It is ranked in the top 40 companies of the FTSE 100 Index with a market capitalisation of about $20 billion.
Fink joined Man in 1987 and was Chief Executive for seven years till 2000, prior to which he ran the investment management business.
"I have spent more than 21 years at Man Group, and have been on the Board for all but the first six months of that time," Stanley Fink said regarding his time with Man Group, "during which the company has undergone immense change which has seen it emerge as a leading player in the alternative asset management industry." Fink also said, "I have many commercial and philanthropic interests outside Man Group to which I am increasingly committed and I am eager to pursue these, and other new opportunities, more fully."
Man is the leading global alternative investment management business, the original business being founded in 1783. It is ranked in the top 40 companies of the FTSE 100 Index with a market capitalisation of about $20 billion.
2 Jun 2008
AdultVest Hedge Fund Acquires iPorn
Francis Koenig, Chairman of AdultVest Inc., announced the acquisition of iPorn.com. The acquisition coincides with the firm’s online marketplace topping $7 Billion in available capital for adult industry related investments.
"We are very excited about the acquisition… Investors in our Priapus Investment Fund, LLC are extremely pleased to be a part of this landmark purchase. We have very big plans for iPorn. This acquisition is a natural fit." says Koenig.
With AdultVest growing at the rate of $300 Million per week, they last year launched the Bacchus Investment Fund and the Priapus Investment Fund, both also aimed at attracting the open-minded investor and the billions of dollars spent on adult entertainment in North America every year.
Koening says, "Transparency and liquidity builds credibility and investor confidence, which ultimately drives the price of a company higher. I believe this is the formula to unlocking value in some of the adult industry’s hidden gems. Wait till you see what we have in store."
Another feature that will appeal to investors, Koening says, is that the firm does not take its performance fee until 100% of the capital is returned to its clients.
"We are very excited about the acquisition… Investors in our Priapus Investment Fund, LLC are extremely pleased to be a part of this landmark purchase. We have very big plans for iPorn. This acquisition is a natural fit." says Koenig.
With AdultVest growing at the rate of $300 Million per week, they last year launched the Bacchus Investment Fund and the Priapus Investment Fund, both also aimed at attracting the open-minded investor and the billions of dollars spent on adult entertainment in North America every year.
Koening says, "Transparency and liquidity builds credibility and investor confidence, which ultimately drives the price of a company higher. I believe this is the formula to unlocking value in some of the adult industry’s hidden gems. Wait till you see what we have in store."
Another feature that will appeal to investors, Koening says, is that the firm does not take its performance fee until 100% of the capital is returned to its clients.
29 May 2008
Jupiter Fund Launch
Hedge fund manager Jupiter Asset Management announced the launch on June second 2008 of the of the Jupiter Strategic Bond Fund.
The new fund is Sterling denominaterd with a 4% initial fee and 1.25% as annual management charge. The minimum investment is a lump sum of £500 ($896.2), or monthly saving of £50 ($98.6).
The Fund, which has received approval from the FSA, is aimed at investors with a medium to long term outlook seeking income with potential for capital growth. The fund, which has a target yield of 7%, will offer a wide spectrum in terms of appetite for risk, with the ability to switch from a conservative to aggressive stance depending on circumstances.
The Fund will be managed as a 'go-anywhere' fund, aiming to achieve long term capital growth from investing in all areas of the credit ratings market. It will be managed by Ariel Bezalel, who has 10 years experience working in credit markets at Jupiter. He currently manages the fixed interest components of three unit trusts - Jupiter Global Managed, Jupiter High Income and Jupiter Monthly Income.
Bezalel said, "The investment grade market is pricing in a severe recession and the high yield market is pricing in a sharp rise in defaults. Whilst I am cautious on the economic outlook, current valuations seem to offer potentially handsome rewards for the risk. This situation, in my view, presents the most compelling investment opportunity in credit we have seen for many years."
Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both are authorised and regulated by the Financial Services Authority. The group is collectively known as "Jupiter".
The new fund is Sterling denominaterd with a 4% initial fee and 1.25% as annual management charge. The minimum investment is a lump sum of £500 ($896.2), or monthly saving of £50 ($98.6).
The Fund, which has received approval from the FSA, is aimed at investors with a medium to long term outlook seeking income with potential for capital growth. The fund, which has a target yield of 7%, will offer a wide spectrum in terms of appetite for risk, with the ability to switch from a conservative to aggressive stance depending on circumstances.
The Fund will be managed as a 'go-anywhere' fund, aiming to achieve long term capital growth from investing in all areas of the credit ratings market. It will be managed by Ariel Bezalel, who has 10 years experience working in credit markets at Jupiter. He currently manages the fixed interest components of three unit trusts - Jupiter Global Managed, Jupiter High Income and Jupiter Monthly Income.
Bezalel said, "The investment grade market is pricing in a severe recession and the high yield market is pricing in a sharp rise in defaults. Whilst I am cautious on the economic outlook, current valuations seem to offer potentially handsome rewards for the risk. This situation, in my view, presents the most compelling investment opportunity in credit we have seen for many years."
Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both are authorised and regulated by the Financial Services Authority. The group is collectively known as "Jupiter".
28 May 2008
Blackstone Launches Asia Hedge Fund
The Blackstone Group announced that Aaron Nieman will be launching Blackstone Altius Advisors, a new event-driven strategy focusing on opportunities in the Asia Pacific region. A global, highly experienced investment team will be headquartered in Hong Kong, with additional professionals based in Tokyo, Mumbai, and New York.
Nieman joined Blackstone from S.A.C. Capital Management, where he was a Managing Director in the Canvas Capital Management division.
"As Blackstone continues to aggressively seek opportunities within Asia, Aaron and his team will provide additional investment capability that will bolster our presence in the region." said Antony Leung, Chairman of Blackstone Greater China.
"Blackstone has a superior global alternative investment platform. It also employs some of the best professionals in the industry. The synergies that exist within Blackstone's various businesses will provide us with a significant advantage investing in the Asia Pacific markets," said Aaron Nieman, Senior Managing Director and Chief Investment Officer of Altius Advisors.
In addition to Blackstone Altius Advisors, Blackstone's other businesses in Asia include its corporate private equity fund (Blackstone Capital Partners), its real estate opportunity fund (Blackstone Real Estate Partners), its fund of hedge funds business and two closed-end mutual funds (The India Fund and The Asia Tigers Fund).
Nieman joined Blackstone from S.A.C. Capital Management, where he was a Managing Director in the Canvas Capital Management division.
"As Blackstone continues to aggressively seek opportunities within Asia, Aaron and his team will provide additional investment capability that will bolster our presence in the region." said Antony Leung, Chairman of Blackstone Greater China.
"Blackstone has a superior global alternative investment platform. It also employs some of the best professionals in the industry. The synergies that exist within Blackstone's various businesses will provide us with a significant advantage investing in the Asia Pacific markets," said Aaron Nieman, Senior Managing Director and Chief Investment Officer of Altius Advisors.
In addition to Blackstone Altius Advisors, Blackstone's other businesses in Asia include its corporate private equity fund (Blackstone Capital Partners), its real estate opportunity fund (Blackstone Real Estate Partners), its fund of hedge funds business and two closed-end mutual funds (The India Fund and The Asia Tigers Fund).
26 May 2008
Hedge Fund Suicide
Kirk Sean Wright, CEO of hedge fund International Management Associates of Atlanta hanged himself in a Union City jail cell Saturday night.
Wright was convicted by a federal jury on 47 counts of mail fraud, securities fraud and money laundering, stemming from a scam run through his hedge fund, International Management Associates. He collected between $115 million and $185 million for his hedge fund from at least 500 investors since 1997.
The FBI in association with the IRS, DOJ and SEC investigated why requests by current and former NFL players for their funds were ignored.
Wright maintained his innocence until the end, contending that simple mis-management was to blame for his investors' losses.
Wright was convicted by a federal jury on 47 counts of mail fraud, securities fraud and money laundering, stemming from a scam run through his hedge fund, International Management Associates. He collected between $115 million and $185 million for his hedge fund from at least 500 investors since 1997.
The FBI in association with the IRS, DOJ and SEC investigated why requests by current and former NFL players for their funds were ignored.
Wright maintained his innocence until the end, contending that simple mis-management was to blame for his investors' losses.
23 May 2008
FoHF's Join Forces to Launch Motion Picture Fund
New York based fund of hedge funds (FoHF) Ginepri Capital, and SAGA Capital, an alternative investments advisory firm, announced a newly formed venture, the SAGA/Ginepri Alpha Fund that focuses on the structuring of complex film slates and debt portfolios in the motion picture space.
"Film investors will increasingly employ new techniques commonly used by investment banks, advisory firms and hedgers to analyze the risk/return profiles of potential securities investments." S.K. Dean, Managing Partner of Ginepri Capital added.
SG Alpha Fund will focus on the financing, analysis and securitization of mid to high budget independent films with committed distribution.
Both FoHF contributed significant proprietary risk capital to the new venture, SG Funds will be syndicating $400 million in debt, between a group of New York and European investment banks, to leverage committed capital. The company will only green-light investments using the proprietary Movie Alpha Model.
"We are very enthusiastic about our association with Ginepri for the design, valuation, production and distribution of film portfolios and related acquisitions." Ralf Voellmer, SAGA President stated.
With a strong emphasis in analyzing the risk/returns in developed economies and emerging markets, the management team of SAGA has significant expertise in financial modeling, including analysis and securitization of deals with embedded credit risk, market risk, and operational risk.
"Film investors will increasingly employ new techniques commonly used by investment banks, advisory firms and hedgers to analyze the risk/return profiles of potential securities investments." S.K. Dean, Managing Partner of Ginepri Capital added.
SG Alpha Fund will focus on the financing, analysis and securitization of mid to high budget independent films with committed distribution.
Both FoHF contributed significant proprietary risk capital to the new venture, SG Funds will be syndicating $400 million in debt, between a group of New York and European investment banks, to leverage committed capital. The company will only green-light investments using the proprietary Movie Alpha Model.
"We are very enthusiastic about our association with Ginepri for the design, valuation, production and distribution of film portfolios and related acquisitions." Ralf Voellmer, SAGA President stated.
With a strong emphasis in analyzing the risk/returns in developed economies and emerging markets, the management team of SAGA has significant expertise in financial modeling, including analysis and securitization of deals with embedded credit risk, market risk, and operational risk.
False Asset Statments Lead to Conviction
Kirk Wright's Atlanta-based hedge fund company, International Management Associates was found to be fraudlent leading to the conviction of the manager, Wright, as the Department of Justice unsealed a March 10 criminal complaint against him.
"The complaint alleges a fraud involving $150 million to $180 million in missing investor assets managed by Wright's funds, International Management Associates and International Management Associates Advisory Group," said U.S. Attorney David Nahmias in a statement.
The federal complaint charges mail fraud, executed by mailing a set of false asset statements to IMA investor Stephen Atwater. The charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on conviction.
According to authorities, Wright and his company collected more than $150 million spread across thousands of client accounts since 1997 and used false statements and documents to mislead some of them to believe the value of those investments was increasing.
Sentencing is set for August 26.
"The complaint alleges a fraud involving $150 million to $180 million in missing investor assets managed by Wright's funds, International Management Associates and International Management Associates Advisory Group," said U.S. Attorney David Nahmias in a statement.
The federal complaint charges mail fraud, executed by mailing a set of false asset statements to IMA investor Stephen Atwater. The charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on conviction.
According to authorities, Wright and his company collected more than $150 million spread across thousands of client accounts since 1997 and used false statements and documents to mislead some of them to believe the value of those investments was increasing.
Sentencing is set for August 26.
22 May 2008
April 2008 Hedge Fund Performance
Hedge funds started the second quarter of 2008 on a strong note as global stock markets recovered, according to Singapore-based hedge fund research company Eurekahedge.
"The Fed's aggressive response to the weakness across credit markets and the slowing of economic growth in the U.S. went some way in improving investor sentiment during April," Eurekahedge said on their website.
"Rallying equity markets, on the back of a sharp increase in risk appetites, coupled with market reversals across some other asset classes, such as bonds and currencies, were factors responsible for the month's gain," Eurekahedge said.
The MSCI World Index jumped 5% in April, completing the best month since November 2004, as confidence returned following the U.S. subprime loan crisis.
Eurekahedge pointed to Japanese managers as the best performers in April, with the Eurekahedge Japan Hedge Fund Index advancing 3.5%. The report showed similar gains with the Asia Ex-Japan index climbing 2.8%.
The Eurekahedge North American Hedge Fund Index added 1.5%, while the index tracking European hedge funds rose 1.4%. Managers of funds using so-called long-short equity strategies were the best performers because of gains in global stock markets.
Eurekahedge was launched by experienced members of the investment banking community for the hedge fund and investment community. The Eurekahedge Hedge Fund Index tracks the performance of 2,230 funds that invest globally.
"The Fed's aggressive response to the weakness across credit markets and the slowing of economic growth in the U.S. went some way in improving investor sentiment during April," Eurekahedge said on their website.
"Rallying equity markets, on the back of a sharp increase in risk appetites, coupled with market reversals across some other asset classes, such as bonds and currencies, were factors responsible for the month's gain," Eurekahedge said.
The MSCI World Index jumped 5% in April, completing the best month since November 2004, as confidence returned following the U.S. subprime loan crisis.
Eurekahedge pointed to Japanese managers as the best performers in April, with the Eurekahedge Japan Hedge Fund Index advancing 3.5%. The report showed similar gains with the Asia Ex-Japan index climbing 2.8%.
The Eurekahedge North American Hedge Fund Index added 1.5%, while the index tracking European hedge funds rose 1.4%. Managers of funds using so-called long-short equity strategies were the best performers because of gains in global stock markets.
Eurekahedge was launched by experienced members of the investment banking community for the hedge fund and investment community. The Eurekahedge Hedge Fund Index tracks the performance of 2,230 funds that invest globally.
21 May 2008
Hedge Fund Manager Charged With Fraud
William Galvin, Massachusetts' top securities regulator has charged the hedge fund manager of the River Stream Fund with improperly soliciting investors.
The investigation also turned up a brokerage statement that showed the fund had $1,625 in its account in April. Regan had said he ran $15 million. The regulator said investors who entrusted their savings to Regan feared the money is now lost.
Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked. Wiliam Galvin, whose job includes protecting investors in Massachusetts, has waged aggressive campaigns against anyone caught trying to cheat investors.
The investigation also turned up a brokerage statement that showed the fund had $1,625 in its account in April. Regan had said he ran $15 million. The regulator said investors who entrusted their savings to Regan feared the money is now lost.
Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked. Wiliam Galvin, whose job includes protecting investors in Massachusetts, has waged aggressive campaigns against anyone caught trying to cheat investors.
19 May 2008
HedgeCo Networks LLC Secures Major Outside Investment from Inter-Atlantic Group
HedgeCo Networks LLC has received its first major outside investment from Inter- Atlantic Group, a private equity firm specializing in the financial services sector. The capital will be used by HedgeCo to expand business operations in both their New York City and West Palm Beach locations, as well as to break out into new verticals of the hedge fund industry.
"We are extremely excited that Inter-Atlantic has taken an interest in us, and are eager to take HedgeCo to the next level," says Evan Rapoport, Managing Partner and Co-Founder of HedgeCo Networks. "The vote of confidence that they've instilled in us further fuels our existing drive to be the leading name in the hedge fund service industry."
Inter-Atlantic currently invests in a handful of small to mid-size companies. The companies are chosen after a careful evaluation and determination of potential growth and market reach.
"Inter-Atlantic believes the hedge fund industry is a high growth sector with tremendous potential," says Inter-Atlantic Managing Partner Andrew Lerner. "Rather than investing in a hedge fund itself, Inter-Atlantic chose to invest in one of the premier service providers to hedge funds. We like HedgeCo's international reach, position as a top tier portal and recurring fee revenue model."
About HedgeCo Networks
HedgeCo Networks manages HedgeCo.Net, the premier Hedge Fund Database and Information Portal, along with nine other websites devoted to alternative investments. With over 25,000 active members, HedgeCo.Net provides a platform for hedge fund managers, investors and service providers.
HedgeCo also offers a vast array of services, including hedge fund website design, consultation, third party marketing and seeding. The company has consulted or helped to launch over 500 new hedge funds, both onshore and offshore. HedgeCo Networks was founded in 2001 by Evan Rapoport and Andrew Schneider. For more information, visit HedgeCoNetworks.com.
About Inter-Atlantic Group
Inter-Atlantic Group seeks to identify and create private equity investment opportunities throughout the broad financial services industry, one of the largest segments of the US economy. Specific sectors include financial technology, banking, insurance, asset management and service providers to the financial services industry. Typical investments range from $3 million - $10 million. Inter-Atlantic is principally focused on US and Bermuda opportunities but considers investment opportunities worldwide. For more information, visit InterAtlanticGroup.com.
"We are extremely excited that Inter-Atlantic has taken an interest in us, and are eager to take HedgeCo to the next level," says Evan Rapoport, Managing Partner and Co-Founder of HedgeCo Networks. "The vote of confidence that they've instilled in us further fuels our existing drive to be the leading name in the hedge fund service industry."
Inter-Atlantic currently invests in a handful of small to mid-size companies. The companies are chosen after a careful evaluation and determination of potential growth and market reach.
"Inter-Atlantic believes the hedge fund industry is a high growth sector with tremendous potential," says Inter-Atlantic Managing Partner Andrew Lerner. "Rather than investing in a hedge fund itself, Inter-Atlantic chose to invest in one of the premier service providers to hedge funds. We like HedgeCo's international reach, position as a top tier portal and recurring fee revenue model."
About HedgeCo Networks
HedgeCo Networks manages HedgeCo.Net, the premier Hedge Fund Database and Information Portal, along with nine other websites devoted to alternative investments. With over 25,000 active members, HedgeCo.Net provides a platform for hedge fund managers, investors and service providers.
HedgeCo also offers a vast array of services, including hedge fund website design, consultation, third party marketing and seeding. The company has consulted or helped to launch over 500 new hedge funds, both onshore and offshore. HedgeCo Networks was founded in 2001 by Evan Rapoport and Andrew Schneider. For more information, visit HedgeCoNetworks.com.
About Inter-Atlantic Group
Inter-Atlantic Group seeks to identify and create private equity investment opportunities throughout the broad financial services industry, one of the largest segments of the US economy. Specific sectors include financial technology, banking, insurance, asset management and service providers to the financial services industry. Typical investments range from $3 million - $10 million. Inter-Atlantic is principally focused on US and Bermuda opportunities but considers investment opportunities worldwide. For more information, visit InterAtlanticGroup.com.
Time Out
Hi readers, I have been absent for the last couple of weeks as I was in a pretty serious accident. However all is well that ends well and I'm back now.
Please feel free to send me any new hedge fund stories you think are important and I might have missed. I do appreciate reader input. Anyhow, now Ill get back to my news scans. Its good to be back!
Please feel free to send me any new hedge fund stories you think are important and I might have missed. I do appreciate reader input. Anyhow, now Ill get back to my news scans. Its good to be back!
25 Apr 2008
Man Launches Futures and Emerging Markets Fund
Hedge fund Man Investments has launched Man Vision Ltd., with structured notes investing equally in AHL, Man's flagship managed futures fund, and RMF Investment Management, the hedge fund operator's Swiss-based fund of hedge funds business targeting emerging markets and managers.
"We are seeing significant changes in world capital flows," said Peter Clarke, chief executive of Man Group plc, in a statement. "Man Vision Index Notes is an exciting gateway to access the new investment opportunities which arise. By combining AHL and RMF, Man Vision Index Notes offers access to these opportunities through a single product." The note is designed to offer high-security access to developing markets, the effect of changing demographics, climate change and future sources of energy.
AHL employs systematic, statistically based investment processes to identify inefficiencies in more than 120 markets around the world. RMF uses proprietary research to select specialist hedge fund managers in new fields to create multi-manager portfolios.
The launch of Man Vision is expected to be among the hedge fund's biggest new product launches of 2008. With a minimum investment of $50,000, the new fund will target exposure to a range of markets and investment strategies, including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.
"We are seeing significant changes in world capital flows," said Peter Clarke, chief executive of Man Group plc, in a statement. "Man Vision Index Notes is an exciting gateway to access the new investment opportunities which arise. By combining AHL and RMF, Man Vision Index Notes offers access to these opportunities through a single product." The note is designed to offer high-security access to developing markets, the effect of changing demographics, climate change and future sources of energy.
AHL employs systematic, statistically based investment processes to identify inefficiencies in more than 120 markets around the world. RMF uses proprietary research to select specialist hedge fund managers in new fields to create multi-manager portfolios.
The launch of Man Vision is expected to be among the hedge fund's biggest new product launches of 2008. With a minimum investment of $50,000, the new fund will target exposure to a range of markets and investment strategies, including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.
24 Apr 2008
Hedge Fund Chief Elected to Hedge Fund Association Board of Directors
Jay B. Howard, Portfolio Manager & Chief Investment Officer of hedge fund Leonard Asset Management (LAM), has been elected to serve on the 2008 Board of Directors for the Hedge Fund Association (HFA).
HFA is an international not-for-profit association of hedge fund managers, investors, and service providers formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds. Members of the HFA Board of Directors are elected and chosen by other HFA members. As one of the HFA Directors, Howard will endeavor to further the HFA mission by increasing awareness of the HFA within the hedge fund community.
Howard is the founder of the alternative investment practice at LAM, his career in the investment and finance industry spans over ten years. He graduated with honors from the University of Dallas with a master’s degree in business administration and graduated cum laude from Augustana College in Rock Island, IL with a bachelor’s degree in accounting. He is an affiliate member of the CFA Institute, a member of the Financial Services Institute, and is a Registered Financial Consultant (RFC™). Active in the industry, he regularly attends and has spoken at alternative investment industry events.
Leonard Asset Management, Inc. is an SEC Registered Investment Advisor that specializes in alternative investments. LAM is under common ownership with Leonard & Company, a federally registered securities broker-dealer and an SEC Registered Investment Advisor. Founded in 1989, Leonard & Company is a regional investment firm providing full service brokerage services, with offices across Michigan in Birmingham, Grand Rapids, Grosse Pointe Farms, Sterling Heights, Troy, and in New York and Colorado.
HFA is an international not-for-profit association of hedge fund managers, investors, and service providers formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds. Members of the HFA Board of Directors are elected and chosen by other HFA members. As one of the HFA Directors, Howard will endeavor to further the HFA mission by increasing awareness of the HFA within the hedge fund community.
Howard is the founder of the alternative investment practice at LAM, his career in the investment and finance industry spans over ten years. He graduated with honors from the University of Dallas with a master’s degree in business administration and graduated cum laude from Augustana College in Rock Island, IL with a bachelor’s degree in accounting. He is an affiliate member of the CFA Institute, a member of the Financial Services Institute, and is a Registered Financial Consultant (RFC™). Active in the industry, he regularly attends and has spoken at alternative investment industry events. Leonard Asset Management, Inc. is an SEC Registered Investment Advisor that specializes in alternative investments. LAM is under common ownership with Leonard & Company, a federally registered securities broker-dealer and an SEC Registered Investment Advisor. Founded in 1989, Leonard & Company is a regional investment firm providing full service brokerage services, with offices across Michigan in Birmingham, Grand Rapids, Grosse Pointe Farms, Sterling Heights, Troy, and in New York and Colorado.
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