Bernanke To Advise At PIMCO After Testing The Hedge Fund Waters

The former chairman of the US Federal Reserve has joined another institution not regulated by the Fed. From now on Ben Bernanke will be lead consultant at Deutsche Bank, Pacific Investment Management Company (PIMCO), which monitors assets of approximately $1.59 trillion. “The Fed does not regulate Pimco or its parent or any other firm that is affiliated with it,” Bernanke said, according to Reuters. “So there is no contact.” Bernanke himself removed the entities out from under his jurisdiction while in office. Citadel Investment, the hedge fund founded by billionaire Ken Griffin and one of the largest on Wall Street, hired the former economic adviser to George W. Bush in mid-April. Citadel manages over $25 billion in assets under management. Former Reagan adviser and Chairman of the Federal Reserve from 1987 to 2006, Alan Greenspan, previously accepted a position as a consultant at PIMCO as well as hedge fund Paulson & Company. Just over a month ago Jeremy C. Stein, who left the Fed last May, agreed to join as an advisor to BlueMountain Capital Management. Bernanke, who had been sympathetic to the criticism of public opinion towards these ‘revolving doors’, explained that both of his positions are outside the regulation of the Fed, so he will not be doing any ‘lobbying’. “I wanted to avoid the appearance of a conflict of interest,” Bernanke said, according to the NYT. “I ruled out any firm that was regulated by the Federal Reserve.” The former Fed Chairman will combine his work as a PIMCO and Citadel with his current job as a researcher at the Brookings Institute and his activity as a lecturer and waiting to publish next October his book ‘The courage to act’ in which looks back on his years as head of the Fed in which had to deal with the worst economic and financial crisis since the Great Depression.

Elliott Commences Legal Proceedings for an Injunction Against Samsung C&T and its Directors

Elliott, the hedge fund with $26 billion under management, today made the following statement: "Elliott continues to believe that the proposed takeover is clearly neither fair to nor in the best interests of Samsung C&T's shareholders, and that it is unlawful. Elliott has therefore taken the step today of commencing legal proceedings for an injunction against Samsung C&T and its directors in order to seek to prevent the proposed takeover from going ahead and thereby protect the interests of Samsung C&T's shareholders."

Starting up this site again

Since the winding down of my news page on HedgeCo, I will start this site up again. As soon I figure out this Icelandic keyboard.

Blackstone To Hedge On Canadian Diamonds

Blackstone Tactical Opportunities has acquired a 20% equity position in a leading Canadian diamond exploration and development company, according to reports. Blackstone has purchased the shares from Stornoway for $250 million. The hedge fund giant also bought into a minority ownership interest in the Renard diamond stream, a $946 million project to mine diamonds in Québec. “Blackstone’s global presence and their long-established status as one of the world’s leading investment firms make them ideally suited to Stornoway as we work to build a world class diamond mining company.” Matt Manson, President and CEO at Stornoway, said. “The Renard Diamond Project is fully financed and permitted for development of an open pit and underground diamond mine that is expected to produce an average of 1.6 million carats per year over an initial 11-year mine life, representing approximately 2% of global diamond supply by value.“ Blackstone said in a press release. Blackstone Group, a hedge fund with over $300 billion, broke all of their asset and earnings records in the first quarter in the First Quarter 2015 , their economic net income has doubled since 2014, while their distributable earnings rose nearly 160%. Some of last year’s highlights: In 2014 Blackstone announced that it will spin off its Advisory, Restructuring, and Park Hill businesses in 2015. Blackstone completed equity capital markets activity of over $20 billion, including initial public offerings of La Quinta, PBF Logistics LP, Michaels Stores, Catalent, Travelport, and Vivint Solar. BAAM, Blackstone’s Hedge Fund Solutions business, launched a UCITS fund in Europe, as well as its second mutual fund. Blackstone’s Real Estate business launched its Core+ platform to focus on stabilized real estate in major markets. Blackstone portfolio company Black Rhino and Dangote Industries announced a commitment to jointly invest up to $5 billion over the next five years in energy infrastructure projects across Sub-Saharan Africa. The firm also announced that it had hired 20,000 veterans in twenty months through its portfolio since its April 2013 commitment to hire 50,000 in five years.

Hedge Fund Radio

You are cordially invited to listen to the N@ked Short Club on Monday, November 24th. Hosted by Dr. Stu: 9-10pm/21.00-22.00 hrs., London time, on Resonance FM [104.4FM within London/online worldwide via www.resonancefm.com]: 1 hour of loose talk about the poetry of hedge funds and the state of the world, plus heady music. No promotional agenda, no commercial intent...just Purest Alpha and Ponzi Bier in these interesting times. 

Host, Dr. Stu will be joined in Jakarta by expert guests: Ian Morley- Chairman, Wentworth Hall; Richard Edwards- CEO, HED Capital; Dr. Peter West- Head of Research, PAM Global; Alex Akesson, Editor- HedgeCo Networks [www.hedgeco.net]. Poetry: Anna Delaney. Engineer: Chris Dixon.

Special Thanks to our Corporate Sponsors, Madoff Premium Ponzi Bier (“150 Years to Brew n’ Brood”).

Resonance FM ["The best radio station in London" (The Guardian)/"The best radio station in the world" (The Village Voice)] is not-for-profit (UK registered charity no. 290236). It is funded entirely by grants and voluntary donations. You can support the station’s continued growth (now, 2.5 Million+ listeners worldwide) with a secure donation viawww.resonancefm.com 

Live #OccupyWallStreet Updates

Saturday: 10/8/11
Day 22

ABC: An expedition of protesters from the Occupy Wall Street movement is scheduled to hold  a "general assembly" at 3 p.m, in Washington Square Park . Which they describe as an opportunity to recruit new supporters and share ideas.

ABC News reports that GOP presidential candidate Herman Cain reiterated his criticism of the Occupy Wall Street protesters Friday, saying the groups are “anti-capitalism” and “anti-free market.”
Connecticut's version of "Occupy Wall Street" had its largest gathering to date Friday as more than 200 people joined an "Occupy Hartford" march through downtown and prepared to camp in a park.
Ben & Jerry’s made the following statement:

"We, the Ben & Jerry’s Board of Directors, compelled by our personal convictions and our Company’s mission and values, wish to express our deepest admiration to all of you who have initiated the non-violent Occupy Wall Street Movement and to those around the country who have joined in solidarity. The issues raised are of fundamental importance to all of us."
The company specified:

• The inequity that exists between classes in our country is simply immoral.
• We are in an unemployment crisis. Almost 14 million people are unemployed. Nearly 20% of African American men are unemployed. Over 25% of our nation’s youth are unemployed.
• Many workers who have jobs have to work 2 or 3 of them just to scrape by.
• Higher education is almost impossible to obtain without going deeply in debt.
• Corporations are permitted to spend unlimited resources to influence elections while stockpiling a trillion dollars rather than hiring people.

CBS Video: At the Value Voters Summit on Friday, Rep. Eric Cantor (R-Va.) said he is "increasingly concerned" by "Occupy Wall Street" demonstrations which began in New York and spread to other major cities.
Opinion from NYT: The Occupy Wall Street Quiz
"If you look at the results, you’ll see a sort of historically familiar pattern: Democrats sympathizing with the protestors, Republicans railing against them and Michael Bloomberg worrying about his city’s tax base."


Friday  10/7/11
Day 21

CNN Tweeted: Press Secretary Carney is expected to discuss the #OccupyWallStreet protests at today's White House briefing.
CBSNews Photo gallery
The Guardian also has a photo gallery up.
Friday Fun: 1% of the population (the cookie monster) eats 100% of the cookies.


Wednesday 10/5/11 Day 19

Washington Post: Who are the 99 percent?
“I am young. I am educated and hard working. I am not able to pay my bills. I am afraid of what the future holds.”


Who are the 99 percent? Part 2

“I did everything I was supposed to and I have nothing to show for it.”


NYDaily Mail reports that approximately $35,000 has been raise by the protesters so far. "Some money will be used to pay bail for arrested demonstrators."

From NPR: The Occupy Colleges movement called for a "nationwide college student walk out" at noon today, their website lists 75 colleges where walkouts are expected to happen.

Gothamist reports that Jeff Mangum played at the protest last night

The NYCLU Tweeted that they are sending a team of legal observers today.

From Politico - Massachusetts Democrat Elizabeth Warren came out swinging against the financial industry in her first U.S. Senate primary debate, arguing that “the people on Wall Street broke this country.”

From CNN - Transport Workers Union Local 100 spokesman Jim Gannon says,  'Their Goals Are Our Goals'

The Massachusetts Nurses Association says "hundreds" of the city's nurses will rally with the Occupy Boston protesters on Wednesday.

Protesters have begun publishing The Occupied Wall Street Journal, NYT reports.

Protest FAQ's by The Nation

Fox Footage on YouTube interview with a protester.

The "Occupy Wall Street" protests "appears to be settling in for the long term," NPR's Jeff Brady reports.

Retro: Wall Street Protest, Circa 1967

Tuesday morning 10/4/11 Day 18

Anti-Wall Street protests spread to South Florida
NYT: Wall Street Closes Sharply Lower

10:20
CNN:  Demanding Accountability
10:15
Warren Buffett: Wall Street doesn't feel loved
Bloomberg: Anti-Wall Street protests spread nationwide
9: 57
Baltimore Sun. Occupy Wall Street protests spread to Baltimore, other cities
9:48
CNN Occupying Wall Street, demanding accountability

9:25
BBC: George Soros' sympathy for Wall Street protesters
WGA East Endorses Occupy Wall Street Protests
Daily Kos - Three Concrete Demands


Monday morning: 10/3/11

• The New Yorker on Rational Irrationality
• In Arabia news: protests have spread to cities across the country as well as overseas in London and Germany http://bit.ly/njd2Pb
• Dangerous Minds shows footage of the arrest of a 13 year old girl.
• How to Occupy an Abstraction Opinion
• Occupy Wall Street Protesters Coming To Providence
• Albuquerque protesters
• St Louis protesters
• Virtual March by @moveon (This coming Wednesday)  http://bit.ly/o4cEct

Live Tweeters
@OccupyWallStNYC
@jalfordfowler
12:00

• Occupy Wall Street Protesters:  We Are Americans (ABC)
• Protesters ask New Yorkers: We need blankets, water and food.
• Mashable photos

12:45

• Wall Street protests gain steam | Detroit Free Press
• NYPD accused of heavy-handed tactics | World news | The Guardian

Sunday: 10/3/11

• MSNBC Reporter SLAMS NYC Police Brutality! http://youtu.be/meT8CJgEBQw
• "There’s been class warfare for the last 20 years, and my class has won" - Warren Buffett http://wapo.st/rpQi4h
• More than 700 arrested in Wall Street protest | Reuters http://reut.rs/qomSGL
• Declaration of the Occupation of New York City | NYC General Assembly http://bit.ly/pLf0sL
• The Marines are Coming to PROTECT the Protesters - YouTube bit.ly/nDwyki
• Protester describes NYPD Brooklyn Bridge Bottleneck. http://www.youtube.com/watch?v=Og_o4krKRMA&feature=related
• NYT  changes the Brooklyn Bridge Bottleneck  story http://bit.ly/nkjJUh
• Fox's Faux pas http://bit.ly/nPfD6P Ouch!
• According to Gothamist, the police officers have arrested NYT contributing writer Natasha Lennard. @natashalennard
• Occupy Wall Street: Interview with Chris Hedges Part 1/6 -  http://bit.ly/o0lXZW
• I see: (blogger Interviews)

A timeline of the Occupy Wall Street movement: (via MOJo)

• July 13: The Canadian magazine Adbustersmakes a call to Occupy Wall Street.
• August 30: The hacktivist collective known as Anonymous releases a video answering the call and encouraging others to follow suit.
• September 17: Nearly 1,000 gather to protest corporate greed and begin occupying the financial district in New York City.
• September 19:Roseanne Barr is the first celebrity to lend support to the so-calledNYC General Assembly.
• September 20: The NYPD starts arresting protestors for wearing masks, citing an arcane law that prohibits masked gatherings of two or more people with an exception: "a masquerade party or like entertainment."  The police soon become more forceful.
• September 22: Demonstrators interrupt a Sotheby's Auction, "in a show of solidarity with the art handler's union that had been locked out." This is the first instance of labor unions and the movement locking step.
• September 24: 80 protestors are arrested during a peaceful march; a video of a policeofficer pepper-spraying a nonthreatening woman goes viral.
• September 26: Anonymous allegedly leaks the name and details of the police officerwho wielded the pepper spray.
• September 27: The Occupy Wall Street campaign comes out in support of postal workers who are protesting their reduced five-day work week.
• September 28:Transport Workers Union votes to support Occupy Wall Street; over 700 Continental and United Airline pilots demonstrate in front of Wall Street.
• September 30: More than 1,000 demonstrators march on NYPD headquarters, protesting the police response against the demonstrators.
• October 1:Over 700 demonstrators are arrested for marching across the Brooklyn Bridge and blocking traffic.

Live updates by Alex Akesson
alex@hedgeco.net

ALTSO's Annual Hedge Fund Charity Rocktoberfest

The Eighth Annual Hedge Fund Rocktoberfest, the cornerstone fundraiser for children’s charity A Leg To Stand On (“ALTSO”), is taking place on Thursday, October 13 at 583 Park Avenue in New York City. 

Hedge fund managers and hedge fund related industry professionals will perform to raise money for ALTSO, which provides prosthetic limbs and corrective, life-altering surgeries to children with limb disabilities in developing market countries.

This year’s Hedge Fund Rocktoberfest promises to be ALTSO’s most high-octane event ever. Wide World Ferrari Maserati is sponsoring a Maserati Gran Turismo S which guests will have the opportunity to bid on that night. More than 1,000 attendees from the hedge fund and related financial services industries are expected at this year’s event.

New Hedge Fund Gets $100 Million From World Bank

HedgeCo News - The World Bank's private-sector lending arm, the International Finance Corp, is investing$100 million in a new hedge fund recently launched by Christofferson Robb & Co, according to Reuters.

The hedge fund, based in London and New York, will "Put up cash to cover unexpected loan losses in return for a cut from the bank. The fund’s cash will lower the banks’ requirements under the Basel capital rules and reduce the impact of planned tighter rules. IFC hopes the fund will encourage an extra $2.5bn to $4bn of lending to developing countries. " FT reported.

IFC is the largest global development institution focused on the private sector in developing countries.

Hedge Fund Acquisitions: Alaris/Concept Capital Markets

New York (HedgeCo.net) - Hedge fund manager and investor, Concept Capital Markets, LLC., has been acquired by hedge fund broker/dealer Alaris Trading Partners, LLC.
“Bringing our two companies together will allow us to capitalize on each other’s best practices, enhance our already high level of customer service, and provide our customers with an expanded offering” Jack Seibald, co-founder and Senior Managing Director of Concept Capital, said.
“This business combination will provide our customers with additional custodial options, and importantly, seamless risk management and reporting technology” Darren Day, President and co-founder of Alaris, added.
The terms of the transaction, which is pending approval by the Financial Industry Regulatory Authority, were not disclosed. The combined company will offer institutional brokerage services to hedge funds, asset managers, and registered investment advisers on a global basis.

Nordic hedge fund managers on the U.S. downgrade

Here’s a excerpt from an article we did with some top Nordic hedge fund managers, asking them to comment on Standard & Poor’s downgrade of U.S. government bonds from AAA to AA+.

André Havas, Head of Investor Relations Optimized Portfolio Management Stockholm AB: “The world has not recovered fully from the financial crisis that started in 2007. Many of the risks that existed in the various markets are beginning to materialize, the consequences are apparent.

“What began with a banking crisis has now rubbed off on to individual countries. Both the credit crisis and the subsequent state debt crisis is by no means a new phenomenon. PIGS countries’ high budget deficits and high debt, combined with a disconnected economic credit expansion, has been under discussion since the mid 1990′s.”

Daniel Broby, Chief Investment Officer at Silk Invest Ltd: “Sadly, the downgrading of the US sovereign credit rating should have taken no-one by surprise, other than the Congressional Budget Office and a few wrong footed politicians. Whether net public debt is 79% or 81% by 2015 is neither here nor there. It is too much and it is fiscally irresponsible not to have a long term plan to bring it under control.

“The recent debt ceiling spat took saw politicians bring the US to the brink of a selective default on a technicality. That is not what one expects from a risk free rate. The US no longer deserves a AAA rating. In that respect, I note that the AA+ rating is still on negative watch.”

The full article is available at: Nordiska Hedgefondforvaltare Kommenterar

Most hedge fund managers chose not to respond.

Indie Film Financing at Annual Film Finance Summit in New York

HedgeCo News - The 11th annual New York International Film & TV Finance Summit, presented by BNA / CITE will convene September 22nd -23rd, 2011, to explore ways in which independents can find financing to make, distribute, and market films – even in a challenging economic environment.

The conference is sponsored by Deloitte LLP, Sheppard Mullin Richter & Hampton LLP, Film Pro Finance, Goodmans LLP, Entertainment Partners, Greater Philadelphia Film Office and Ontario Media Development Corp. ProductionHub is the media sponsor.

"Now more than ever, independent film companies and specialty divisions of major studios need to be creative when mining the money and tax incentive seam," says program director Robert Ross. "Our panelists, including film producers, bankers, film commissioners, talent agents, tax specialists, film finance lawyers and accountants, know the strategies that work and will share them in a host of case studies and panels across the two days."
More than 40 speakers will share their expertise, insights, ideas, and contact information throughout the sessions, networking meals and cocktail receptions.

• Learn how to tap into state film tax credits and incentives in the U.S. and locate funds in international market
• Get the latest developments in the use of Federal tax incentives, ETI exclusion, R&D credits in relation to film finance
• Understand the roles played by specialized banks, finance companies, hedge funds and equity providers in film financing
• Know how to properly utilize brand integration and execute product placement strategies to generate additional funds
• Find out how to attach the right talent to a motion picture to make financing happen
• Understand how to deal with labor issues in regard to producing an independent or studio feature film
• Learn about the latest developments in digital distribution platforms and technologies in securing film financing
• Hear in a case study how an independent feature film was financed, marketed and distributed

The 11th Annual International Film & TV Finance Summit will take place at the Marriott Marquis Hotel, on 1535 Broadway, New York, NY 10036, Tel 212 398 1900. To register, go to www.citeusa.org or call (800) 207.4432 for further information on special rates for independent producers, and sponsorship opportunities.

Investors Allocated $30 Billion to Hedge Funds in Q2

HedgeCo News - Brighton House Associates (BHA) has released their quarterly report, which explores trends within the alternative investment industry during the second quarter.

Some highlights from the report include:

- The second quarter of 2011 was characterized by tumultuous global markets and uncertainty regarding the financial well-being of a number of euro-zone countries as well as the U.S. Still, investors remained interested in hedge funds and allocated $30 billion to the asset class during the quarter, a small decline from the $32 billion allocated in the first quarter. Despite lackluster returns and markets that proved challenging for hedge fund managers, funds saw strong investment inflows.

- Many investors who had been sitting on the sidelines became more active in the hedge fund space. In a conversation with BHA analysts, a wealth advisor investing on behalf of a large U.S. insurance firm noted that for the past three years, the firm had not been allocating to the hedge fund space. In the second quarter, however, the firm met with new managers, and it anticipates adding three or four global macro and CTA managers as well as two new long/short equity funds to its portfolio by the end of the year.

- Other investors increased their single-manager hedge fund exposure at the expense of their fund of hedge funds allocations. An insurance firm in Bermuda, which has traditionally invested in funds of hedge funds, confirmed that it is planning on investing solely in single-manager funds going forward. In fact, the firm plans on increasing its hedge fund allocation from its current $350 million to $800 million over the next two years. Still other investors were increasing their hedge fund exposure by employing firms to create customized funds of funds on their behalf, essentially designing a tailor-made hedge fund portfolio.

- In the private equity space investors were increasingly interested in sector-focused funds. While interest in funds with diversified sector exposure fell, investor demand grew for funds with exposure to the energy, technology, and clean-technology sectors. Compared with the first quarter of 2011, demand for energy, technology, and clean-technology focused funds grew by 53.6%, 33.1%, and 36.4% respectively.

BHA profiled just fewer than 1200 investor mandates across hedge funds, private equity, real estate, and related funds of funds through extensive one-on-one interviews with institutional investors around the globe.

Hedge funds and game theory

coming soon

Assets under management threshold raised

HedgeCo Blogs - A new order impacting all SEC registered investment advisers (and certain state registered investment advisers) that provide advisory services to hedge funds and/or separately managed accounts and receive performance-based compensation for such advisory services.

Effective September 19, 2011, the assets under management threshold is being raised from $750,000 to $1 million and the net worth threshold is being raised from $1.5 million to $2 million. In addition, an investor can no longer include the value of his or her primary residence in calculating whether he or she meets the $2 million net worth threshold.

More info from Sadis & Goldberg

Hedge Fund Convictions Over The Weekend

HedgeCo News - Over the weekend there were hedge fund fraud related convictions in the US, Australia and Germany. All have been sentenced to jail time.

US: Five employees for hedge fund manager A&O Resource Management Ltd were sentenced for their part in a $100 million fraud scheme.

“Brent Oncale (the founder) and his co-conspirators operated a sham investment company that turned fraud and deceit into a business model,” said Assistant Attorney General Breuer. “They stole millions from hundreds of unsuspecting investors, pocketing huge sums for themselves.”

Russell E. Mackert, 52, general counsel for A&O, was sentenced to 188 months in prison; Brent Oncale, 36, former owner and founder of A&O, was sentenced to 120 months in prison; David White, 41, the former president of A&O, was sentenced to 60 months in prison; Eric M. Kurz, 47, a wholesaler of A&O investment products, was sentenced to 60 months in prison; and Tomme Bromseth, 69, an A&O sales agent in the Richmond area, was sentenced to 36 months in prison.

Australia: A New South Wales Supreme Court has convicted Shawn Richard of Astarra Asset Management with fraud, insisting on up to 5 years of jail time, the sentencing is scheduled for the 12 August.

The Australian Securities and Investments Commission alleged that the hedge fund manager was placing investor monies in overseas hedge funds, in circumstances where he would personally receive a significant portion of the money.

“The monies Richard placed in the overseas hedge funds had been raised by the responsible entity of ASF, Trio Capital Limited (Trio).” The ASIC said, “Richard received in excess of $6.4 million in undisclosed payments.”

EU: Helmut Kiener, the founder of 345-million euro ($497 million) hedge fund K1 Group, was sentenced to 10 years and eight months in prison. The ”Mini Madoff” was found guilty of fraud, forgery and tax evasion by a court in Germany.

Also sentenced last week: Danielle Chiesi was sentenced to 30 months in federal prison for securities fraud.

New names in the Petters Ponzi: Frank Elroy Vennes, Jr., a business associate of and primary fundraiser for Thomas J. Petters was named in a superseding indictment last week, the indictment also charges James Nathan Fry, age 57, of Orono, Minnesota, with five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the United States Securities and Exchange Commission during its investigation of investments in PCI by hedge funds under the management of Fry’s company, Arrowhead Capital Management.