Don Kurz and Salomon Konig have announced the launch of Artemis Capital Partners LLC, a hedge fund formed to offer structured products designed to deliver significant portfolio diversification and exceptional risk-adjusted returns, according to a press release today.
Artemis combines a proprietary, quantitative investment selection process with broad diversification to meet the objective of preserving wealth in times of extreme event risk while maintaining the ability to achieve strong risk-adjusted returns. Its investment thesis was developed over a two-year period and extensively tested in a 12-year blind test (1995-2006).
“We understand the world doesn’t need more ‘me-too’ alternative investment vehicles. We believe, however, that the market is seeking a market-neutral vehicle that delivers true portfolio diversification, capital preservation, and an opportunity for strong risk-adjusted returns. Artemis designs its products to meet this market need. Our goal is to consistently beat the HFRI Fund of Funds Weighted Composite Index, as well as major world stock market indices, as measured by risk-adjusted returns,” says Don Kurz, Managing Member and CEO of Artemis Capital Partners.
“At Artemis Capital Partners, our approach is designed to generate stable and consistent returns via rigorous investment selection, extensive diversification and prudent application of leverage,” says Salomon Konig, Managing Member and Chief Investment Officer of Artemis Capital Partners. “By drawing upon our proprietary databases and investment models, we design structured investment vehicles engineered to optimize risk-adjusted returns.”
Don Kurz is Managing Member and CEO of Artemis Capital Partners, LLC. Prior to forming Artemis, Kurz was President and Owner of Insight Creative Solutions, Inc. (ICS), a venture investor and provider of general management consulting services. Prior to his work with ICS, Kurz was Chairman, President and CEO of EMAK Worldwide, Inc, a global, NASDAQ-traded company providing strategic and marketing services to Fortune 500 companies internationally.
Salomon Konig is Managing Member, CIO and Portfolio Manager of Artemis Capital Partners, LLC. Konig has been working in finance, investments and hedge funds for more than 30 years, in the US and Latin America. Konig is a Board Member of The Hedge Fund Association and has served as a partner to intellectual pioneers in financial analysis, including Jack Schwager, Roger Ibbotson, and Charles Friefeld. Prior to forming Artemis, Konig was President and owner of American Lead Ventures, an advisor to family offices and funds of funds and a Senior Consultant to Global Partners Group, where he analyzed, seeded and incubated hedge funds and funds of hedge funds.
Artemis Capital Partners now has offices in Aventura, Florida and Los Angeles, California. BNP Paribas is the Firm’s structured products counterparty. The Company works with Meridian Fund Services Limited for Fund Administration; auditing and tax services are provided by Spicer Jeffries, LLP. The Securities Law Group serves as legal counsel.
30 May 2007
Hedge Fund Platform Expands To India
CacheMatrix Holdings, LLC today announced the creation of CacheMatrix India, a wholly-owned and fully-integrated subsidiary based in Bangalore, India.
In the first five months of 2007, hedge fund platform CacheMatrix has more than doubled its client base, which includes several of the largest banks and financial institutions in the world, as well as leading hedge fund administrators, custodians and mutual fund companies.
The Bangalore facility provides development capacity and expertise for the company’s unique money fund portal technology that is being incorporated into a growing roster of multinational banks. Unlike typical outsourcing models in which companies transfer management control of a business function to an outside supplier, CacheMatrix India serves as a virtual extension of the company’s core technology facility based in Denver.
“We have taken a different approach to doing business in India, and we believe it will pay dividends for us as we expand our service offerings globally,” said CacheMatrix Founder and CEO George Hagerman. “Our Bangalore facility is fully integrated into our U.S. operations and our India presence is a lasting extension of our core company.”
The Bangalore facility is headed by an Indian national who lived in Denver and was one of the original team members who wrote the CacheMatrix software code. He returned to Bangalore in 2006 to establish the CacheMatrix subsidiary in India.
The CacheMatrix India team is part of CacheMatrix’s global product development and support model. The Bangalore team has equal responsibility in development, testing and support and provides 24 hour global development and support capabilities to CacheMatrix.
CacheMatrix enables banks and other financial services firms to offer its corporate clients on-line access to a choice of institutional funds and a convenient, single source platform for managing them, including access to comprehensive analysis, online trading, and account management.
In the first five months of 2007, hedge fund platform CacheMatrix has more than doubled its client base, which includes several of the largest banks and financial institutions in the world, as well as leading hedge fund administrators, custodians and mutual fund companies.
The Bangalore facility provides development capacity and expertise for the company’s unique money fund portal technology that is being incorporated into a growing roster of multinational banks. Unlike typical outsourcing models in which companies transfer management control of a business function to an outside supplier, CacheMatrix India serves as a virtual extension of the company’s core technology facility based in Denver.
“We have taken a different approach to doing business in India, and we believe it will pay dividends for us as we expand our service offerings globally,” said CacheMatrix Founder and CEO George Hagerman. “Our Bangalore facility is fully integrated into our U.S. operations and our India presence is a lasting extension of our core company.”
The Bangalore facility is headed by an Indian national who lived in Denver and was one of the original team members who wrote the CacheMatrix software code. He returned to Bangalore in 2006 to establish the CacheMatrix subsidiary in India.
The CacheMatrix India team is part of CacheMatrix’s global product development and support model. The Bangalore team has equal responsibility in development, testing and support and provides 24 hour global development and support capabilities to CacheMatrix.
CacheMatrix enables banks and other financial services firms to offer its corporate clients on-line access to a choice of institutional funds and a convenient, single source platform for managing them, including access to comprehensive analysis, online trading, and account management.
29 May 2007
Hedge Fund Investor Sells Emerging Market Power Company
Globeleq, the emerging markets power company, announced that it has reached agreements to sell its operating power businesses in Latin America, North Africa and Asia.
Globeleq is 100% owned by hedge fund investor CDC Group plc. Actis, the leading private equity investor in emerging markets. Alistair Mackintosh, Chairman of Globeleq's Board of Directors and Chief Investment Officer of Actis, commented, "Globeleq has been a great success; we will build on that success as Globeleq continues to be a major force in building much needed new capacity. We will actively seek investment opportunities which build on the company's unrivaled knowledge and expertise in these markets."
The Latin American transaction includes Globeleq's interests in eight countries. These interests will be sold to a consortium of D.S. Constructions Limited of India and Israel Corporation Limited. The North Africa and Asia businesses, with operations in Egypt, Bangladesh, Sri Lanka and Pakistan, will be sold to a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih (Saudi Arabia). Both transactions are subject to certain closing conditions. The total value paid to Globeleq upon completion of both transactions is expected to be over US$1 billion.
"These transactions validate the strategy we have implemented since the founding of Globeleq," said Globeleq CEO Torbjorn Caesar. "These sales advance our plans to continue adding generation capacity to meet rising demand for more reliable power in the emerging markets. We will now be even more focused on developing and investing in new power projects."
Richard Laing, CEO of hedge fund investor CDC Group plc, said, "This is excellent news for emerging markets. Greater access to reliable energy continues to be a high priority for sustainable economic development. As a fund of funds investor in emerging economies, CDC is committed to this sector and will continue to invest its capital in this area."
Founded in 2002, Globeleq is the only operating power company solely focused on the emerging markets of Africa, the Americas and Asia. Globeleq is actively pursuing new project development and acquisition opportunities.
Globeleq is 100% owned by hedge fund investor CDC Group plc. Actis, the leading private equity investor in emerging markets. Alistair Mackintosh, Chairman of Globeleq's Board of Directors and Chief Investment Officer of Actis, commented, "Globeleq has been a great success; we will build on that success as Globeleq continues to be a major force in building much needed new capacity. We will actively seek investment opportunities which build on the company's unrivaled knowledge and expertise in these markets."
The Latin American transaction includes Globeleq's interests in eight countries. These interests will be sold to a consortium of D.S. Constructions Limited of India and Israel Corporation Limited. The North Africa and Asia businesses, with operations in Egypt, Bangladesh, Sri Lanka and Pakistan, will be sold to a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih (Saudi Arabia). Both transactions are subject to certain closing conditions. The total value paid to Globeleq upon completion of both transactions is expected to be over US$1 billion.
"These transactions validate the strategy we have implemented since the founding of Globeleq," said Globeleq CEO Torbjorn Caesar. "These sales advance our plans to continue adding generation capacity to meet rising demand for more reliable power in the emerging markets. We will now be even more focused on developing and investing in new power projects."
Richard Laing, CEO of hedge fund investor CDC Group plc, said, "This is excellent news for emerging markets. Greater access to reliable energy continues to be a high priority for sustainable economic development. As a fund of funds investor in emerging economies, CDC is committed to this sector and will continue to invest its capital in this area."
Founded in 2002, Globeleq is the only operating power company solely focused on the emerging markets of Africa, the Americas and Asia. Globeleq is actively pursuing new project development and acquisition opportunities.
28 May 2007
Amanda Capital Hedge Fund of Funds Exceeds Target Size at Closing
Amanda Capital Group, the first publicly listed private equity hedge fund-of-funds in Scandinavia announced that Amanda III Eastern Private Equity L.P. fund-of-funds exceeded its target size of EUR 100 million ($134.5 million). Amanda III is one of the five fund-of-funds managed by Amanda Group. The final closing was held at EUR 110 million ($148 million) on 22 May 2007.
The fund invests in unquoted companies in Russia and Eastern Europe through local private equity hedge funds. Amanda Capital Plc has also committed EUR 10 million (13.4 million) to Amanda III.
The fund raising has been successful both at amount of raised capital and number of investors, says CEO Petteri Änkilä. Also the investment activity of Amanda III has started well, the fund committed total EUR 33 million (44.4 million) to four local hedge funds, which invest in Russian, Ukrainian, Romanian, Bulgarian and Polish unquoted companies. Amanda III has invested in 18 target companies of which two have already been sold. One of the exits returned 2.2 times invested capital and the other one 5.8 times.
Along with the final closing of Amanda III Eastern Private Equity L.P. Amanda Group's management fees from the management and consultancy of hedge fund investments, increases to over EUR four million ($5.3 million) this year.
The company has investments in 25 different private equity funds and in over 300 unquoted companies, mainly located in Europe. Amanda is one of Finland's largest hedge fund investment management companies.
In addition to its own investments, Amanda manages several hedge fund portfolios under consultancy agreements. Amanda is also a founding general partner in five private equity hedge funds, which have several institutional investors. Amanda Group currently has more than EUR 1.3 billion ($1.7 million) in assets under management (original investment commitments) and has made investments in more than 100 private equity funds in Europe, the United States, Asia and Russia.
The fund invests in unquoted companies in Russia and Eastern Europe through local private equity hedge funds. Amanda Capital Plc has also committed EUR 10 million (13.4 million) to Amanda III.
The fund raising has been successful both at amount of raised capital and number of investors, says CEO Petteri Änkilä. Also the investment activity of Amanda III has started well, the fund committed total EUR 33 million (44.4 million) to four local hedge funds, which invest in Russian, Ukrainian, Romanian, Bulgarian and Polish unquoted companies. Amanda III has invested in 18 target companies of which two have already been sold. One of the exits returned 2.2 times invested capital and the other one 5.8 times.
Along with the final closing of Amanda III Eastern Private Equity L.P. Amanda Group's management fees from the management and consultancy of hedge fund investments, increases to over EUR four million ($5.3 million) this year.
The company has investments in 25 different private equity funds and in over 300 unquoted companies, mainly located in Europe. Amanda is one of Finland's largest hedge fund investment management companies.
In addition to its own investments, Amanda manages several hedge fund portfolios under consultancy agreements. Amanda is also a founding general partner in five private equity hedge funds, which have several institutional investors. Amanda Group currently has more than EUR 1.3 billion ($1.7 million) in assets under management (original investment commitments) and has made investments in more than 100 private equity funds in Europe, the United States, Asia and Russia.
25 May 2007
Ernst & Young Launches Islamic Funds & Investment Report 2007
1st Annual Ernst & Young Islamic Funds & Investments Report (IFIR) is being launched to address the landscape of Islamic Private Equity market. The inaugural report will focus on the spectrum of asset classes and drivers that will have the most significant impact on the industry.
With the Islamic Private Equity market set for a boom, and Islamic Alternative Investments attracting increasing interest; the stage is now set for the launch of the 1st Annual Ernst & Young Islamic Funds & Investments Report (IFIR).
Reflecting these challenges and opportunities, the inaugural Islamic Funds & Investments Report will focus on the spectrum of asset classes and drivers that will have the most significant impact on the industry.
The objective of the IFIR is not to analyze the performance of investment funds, but rather to provide new insights into the market, pinpoint critical success factors and identify key trends that will shape the immediate future of the industry.
Sameer Abdi, Group Head of the Islamic Financial Services Group for Ernst & Young said, “The Islamic funds industry has grown tremendously in size and product depth in the last five years. With ever increasing investor demand to satisfy, there remains immense potential for the future growth of this sector.
Ernst & Young will launch the report at the Pre-Conference Executive Briefing at The World Islamic Funds & Capital Markets Conference on 26th May at the Gulf Hotel in the Kingdom of Bahrain.
The Executive briefing will be led by Sameer Abdi, Group Head – Islamic Financial Services Group & Ali Arsalan Tariq, Senior Consultant, Ernst & Young Bahrain, where the Key Developments & Trends in the Islamic Funds Industry that will Shape the Market will be discussed.
With the Islamic Private Equity market set for a boom, and Islamic Alternative Investments attracting increasing interest; the stage is now set for the launch of the 1st Annual Ernst & Young Islamic Funds & Investments Report (IFIR).
Reflecting these challenges and opportunities, the inaugural Islamic Funds & Investments Report will focus on the spectrum of asset classes and drivers that will have the most significant impact on the industry.
The objective of the IFIR is not to analyze the performance of investment funds, but rather to provide new insights into the market, pinpoint critical success factors and identify key trends that will shape the immediate future of the industry.
Sameer Abdi, Group Head of the Islamic Financial Services Group for Ernst & Young said, “The Islamic funds industry has grown tremendously in size and product depth in the last five years. With ever increasing investor demand to satisfy, there remains immense potential for the future growth of this sector.
Ernst & Young will launch the report at the Pre-Conference Executive Briefing at The World Islamic Funds & Capital Markets Conference on 26th May at the Gulf Hotel in the Kingdom of Bahrain.
The Executive briefing will be led by Sameer Abdi, Group Head – Islamic Financial Services Group & Ali Arsalan Tariq, Senior Consultant, Ernst & Young Bahrain, where the Key Developments & Trends in the Islamic Funds Industry that will Shape the Market will be discussed.
Syz & Co Launches Two Spanish Funds of Hedge Funds
In a press release today, Swiss banking group SYZ & CO and Madrid-based asset management firm A&G Fondos, Asesores y Gestores Financieros Fondos, announced two Spanish-regulated funds of hedge funds, AYG SYZ Multi Strategy and AYG SYZ Low Volatility vehicles. Both offerings should be approved in the coming weeks by the CNMV, the Spanish regulator, according to the firms.
The AYG SYZ Multi Strategy fund will invest in a diversified portfolio of hedge funds, combining different strategies such as equity long/short, arbitrage, global macro, market neutral, and managed futures. The AYG SYZ Low Volatility fund will also invest in a diversified portfolio of hedge funds, but concentrating on the least volatile strategies, to offer a steadier potential return with a lower risk level, according to the firms.
New Spanish regulations on funds of funds require the fund manager to be a Spanish entity holding a specific license for that purpose. A&G will act as manager of the new offerings and will be in charge of their marketing in Spain, while SYZ & CO will advise A&G through its alternative management division, 3A SA.
The two funds will be euro-denominated, with a minimum investment of €100 ($135). An annual management fee of 1.5% will be charged for both funds and a performance fee of 8% for the Multi Strategy and 5% for the Low Volatility.
Asesores y Gestores Financieros was founded in 1987 and focuses on managing private assets. In 2005, A&G Fondos SGIIC, the group’s investment fund management company, obtained its European passport from the Luxembourg regulator CSSF. At the end of April, A&G Fondos SGIIC managed a total of €337 million ($453.6 million). Assets managed by the entire group totaled €2.9 billion ($3.9 billion) as of the end of April.
Alex Akesson
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
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The AYG SYZ Multi Strategy fund will invest in a diversified portfolio of hedge funds, combining different strategies such as equity long/short, arbitrage, global macro, market neutral, and managed futures. The AYG SYZ Low Volatility fund will also invest in a diversified portfolio of hedge funds, but concentrating on the least volatile strategies, to offer a steadier potential return with a lower risk level, according to the firms.
New Spanish regulations on funds of funds require the fund manager to be a Spanish entity holding a specific license for that purpose. A&G will act as manager of the new offerings and will be in charge of their marketing in Spain, while SYZ & CO will advise A&G through its alternative management division, 3A SA.
The two funds will be euro-denominated, with a minimum investment of €100 ($135). An annual management fee of 1.5% will be charged for both funds and a performance fee of 8% for the Multi Strategy and 5% for the Low Volatility.
Asesores y Gestores Financieros was founded in 1987 and focuses on managing private assets. In 2005, A&G Fondos SGIIC, the group’s investment fund management company, obtained its European passport from the Luxembourg regulator CSSF. At the end of April, A&G Fondos SGIIC managed a total of €337 million ($453.6 million). Assets managed by the entire group totaled €2.9 billion ($3.9 billion) as of the end of April.
Alex Akesson
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
24 May 2007
Incremax Wins Microsoft Hedge Fund Competency Award
Incremax was awarded with Microsoft's Third Quarter New York/New Jersey Area Partner Award for Competency in understanding the scalable infrastructure, information productivity and custom business applications that drive both Fixed-Income and Equity hedge fund management firms.
"Most Managing Directors are not aware of the complexity of the technology required to manage Front/Middle/Back-Office operations efficiently while mitigating risk and instilling investor confidence in their ability to trade and protect assets," said Kerry Gerontinanos, President of Incremax. "It was important to us as a provider of Microsoft-based solutions that we addressed the scalable needs of a 3-man operation managing tens of million dollars of assets to the management firms that catapult quickly to billions of dollars in assets under trade."
Leveraging expertise gained from large-scale technology deployments in Financial Capital Markets for clients such as Citigroup and Fidelity Investments, Incremax was able to create a technology roadmap of Microsoft products and business applications specifically targeted to handle the needs of hedge fund management firms as they grow from millions, to billions of dollars in assets under management.
"Most Managing Directors are not aware of the complexity of the technology required to manage Front/Middle/Back-Office operations efficiently while mitigating risk and instilling investor confidence in their ability to trade and protect assets," said Kerry Gerontinanos, President of Incremax. "It was important to us as a provider of Microsoft-based solutions that we addressed the scalable needs of a 3-man operation managing tens of million dollars of assets to the management firms that catapult quickly to billions of dollars in assets under trade."
Leveraging expertise gained from large-scale technology deployments in Financial Capital Markets for clients such as Citigroup and Fidelity Investments, Incremax was able to create a technology roadmap of Microsoft products and business applications specifically targeted to handle the needs of hedge fund management firms as they grow from millions, to billions of dollars in assets under management.
Hedge Fund Office Opening In Zunich
Hedge fund service provider Cantor Fitzgerald today announced the opening of a new office in Zurich, Switzerland, further expanding its global footprint within the world's financial markets.
The new office is based in the heart of Zurich's financial district at Bahnhofsstrasse 64 and opens specifically to meet the demands of new and existing clients the global cash equity and derivatives markets in Zurich and the rest of central Europe, including hedge funds, asset managers and pension funds.
Gilbert Fischer and Oliver Dufek will jointly head up the office and be responsible for spearheading the expansion of the group's European institutional equity business. Fischer, previously at Dresdner Kleinwort, hedge fund Cazenove and UBS will initially lead a team of 12 with Oliver Dufek, previously at Dresdner Kleinwort and Cantor
Fitzgerald in London. They will report to Didier Bensadoun, Global Head of Equity Derivatives and Elon Spar, Chief Executive for Europe and Asia.
Cantor Fitzgerald sees Zurich as an important center from which to serve its clients locally and will look to further expand its existing product lines. With the addition of Zurich to its global network, Cantor Fitzgerald now has 28 offices around the world.
Commenting on the launch, Gilbert Fischer said, "We are delighted to be opening a new office in the heart of Zurich, a key location for us in serving our clients. This new office will enable us to offer a local service that will benefit both our clients and our business."
Dufek added: "Our local presence and knowledge of the markets will enhance our existing offering, including alpha generating ideas, portfolio analytics and optimization, to existing and potential clients. We look forward to working with them across the region."
Elon Spar, Chief Executive of Cantor Fitzgerald for Europe and Asia said, "The opening of our Zurich office represents a growing demand from new and existing clients for our services and is key to
The new office is based in the heart of Zurich's financial district at Bahnhofsstrasse 64 and opens specifically to meet the demands of new and existing clients the global cash equity and derivatives markets in Zurich and the rest of central Europe, including hedge funds, asset managers and pension funds.
Gilbert Fischer and Oliver Dufek will jointly head up the office and be responsible for spearheading the expansion of the group's European institutional equity business. Fischer, previously at Dresdner Kleinwort, hedge fund Cazenove and UBS will initially lead a team of 12 with Oliver Dufek, previously at Dresdner Kleinwort and Cantor
Fitzgerald in London. They will report to Didier Bensadoun, Global Head of Equity Derivatives and Elon Spar, Chief Executive for Europe and Asia.
Cantor Fitzgerald sees Zurich as an important center from which to serve its clients locally and will look to further expand its existing product lines. With the addition of Zurich to its global network, Cantor Fitzgerald now has 28 offices around the world.
Commenting on the launch, Gilbert Fischer said, "We are delighted to be opening a new office in the heart of Zurich, a key location for us in serving our clients. This new office will enable us to offer a local service that will benefit both our clients and our business."
Dufek added: "Our local presence and knowledge of the markets will enhance our existing offering, including alpha generating ideas, portfolio analytics and optimization, to existing and potential clients. We look forward to working with them across the region."
Elon Spar, Chief Executive of Cantor Fitzgerald for Europe and Asia said, "The opening of our Zurich office represents a growing demand from new and existing clients for our services and is key to
HFR Launches Hedge Fund Report In Arabic
Chicago-based HFR Group L.L.C. today announced in a press release the publication in Arabic for the first time of its benchmark Quarterly industry report on the performance and size of the global hedge fund industry. HFR has long had a strong base of subscriber to the report in the Middle Eastern region but to date, the report has only been available in an English language version.
Publication of the classic industry report in Arabic reflects the surge in interest amongst Middle Eastern investors in hedge fund strategies and investment opportunities. The amount of potential Middle Eastern capital, both private wealth and institutional funds, available for investing has been estimated at $4.1 Trillion, making the Arab world one of the most valuable sources of investment capital available in the world today. Hedge funds themselves have also enjoyed notable success in the Middle East region with the HFR Emerging Markets Index (which covers the Middle East, Asia and Latin America) rising by 19.5% in 2006 and an average of 16.4% since the index was first constituted in 1990.
Ken Heinz, President of HFR, said: "The Middle East is an incredibly interesting and fertile region of the world for the hedge fund investing, both as a source of potential capital and a focus of investment for emerging market strategy managers. The Emerging Market strategy has been one of the strongest performing over recent years and continues to deliver above average returns coupled with modest volatility. Providing our industry report in Arabic is a natural next step for HFR and underpins the importance of this region to the global hedge fund community."
The hedge fund industry saw record inflows of more than $60 billion during the first quarter of 2007, bringing total assets under management to $1.568 trillion, according to data released today by Hedge Fund Research (HFR), the leading source of hedge fund information and performance data. These new inflows represented an almost 300 percent gain over 4Q 2006, when the industry recorded $15.7 billion in new fund flows, and was equal to nearly half the record $126 billion in new assets gathered by hedge funds in all of last year.
HFR data is based on the more than 11,000 funds tracked historically by the firm which includes the over 6,500 funds reporting to the company as part of the HFR Database subscription product.
Chicago-based HFR Group L.L.C., founded in 1993, is a global leader in hedge fund data, research, indexation and asset management.
Publication of the classic industry report in Arabic reflects the surge in interest amongst Middle Eastern investors in hedge fund strategies and investment opportunities. The amount of potential Middle Eastern capital, both private wealth and institutional funds, available for investing has been estimated at $4.1 Trillion, making the Arab world one of the most valuable sources of investment capital available in the world today. Hedge funds themselves have also enjoyed notable success in the Middle East region with the HFR Emerging Markets Index (which covers the Middle East, Asia and Latin America) rising by 19.5% in 2006 and an average of 16.4% since the index was first constituted in 1990.
Ken Heinz, President of HFR, said: "The Middle East is an incredibly interesting and fertile region of the world for the hedge fund investing, both as a source of potential capital and a focus of investment for emerging market strategy managers. The Emerging Market strategy has been one of the strongest performing over recent years and continues to deliver above average returns coupled with modest volatility. Providing our industry report in Arabic is a natural next step for HFR and underpins the importance of this region to the global hedge fund community."
The hedge fund industry saw record inflows of more than $60 billion during the first quarter of 2007, bringing total assets under management to $1.568 trillion, according to data released today by Hedge Fund Research (HFR), the leading source of hedge fund information and performance data. These new inflows represented an almost 300 percent gain over 4Q 2006, when the industry recorded $15.7 billion in new fund flows, and was equal to nearly half the record $126 billion in new assets gathered by hedge funds in all of last year.
HFR data is based on the more than 11,000 funds tracked historically by the firm which includes the over 6,500 funds reporting to the company as part of the HFR Database subscription product.
Chicago-based HFR Group L.L.C., founded in 1993, is a global leader in hedge fund data, research, indexation and asset management.
The Greenwich Global Hedge Fund Index Up +2.04% in April
The Greenwich Global Hedge Fund Index, one of the world's largest hedge fund databases, returned +2.04% in April, and +4.81% year-to-date. "Hedge funds continue to deliver solid returns, but with significantly less risk than equities," notes Ben Rossman, General Manager. "Over the last five year period, for example, hedge funds' annualized volatility measured about 4.5%, which is roughly a third of the 12%-13% volatility experienced by equities."
By comparison, the S&P 500, MSCI World Equity, FTSE 100, and Lehman Brothers Aggregate Bond indices were up by +4.43% (+5.09% YTD), +4.21% (+6.36% YTD), +2.24% (+3.68% YTD), and +0.54% (+2.05% YTD), respectively.
17 of 18 Greenwich strategies ended April in positive territory. Futures strategies led, up +4.42%, owing largely to managers' ability to capitalize on strength in energy and Euro and Sterling valuations. Short sellers, which account for roughly 1% of index constituents, were the exception; down -2.91% for the month.
Currently, the April Index includes 972 funds. Final results will be posted by Greenwich at the end of May, after additional funds have submitted returns.
In April, the Greenwich Investable Index returned 1.49% (4.03% YTD). It adds investability, active management and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. It references actual hedge fund vehicles as opposed to separately managed accounts that attempt to replicate the returns of actual hedge fund vehicles. Since inception in January 2003, the Investable Index has achieved an annualized return of +10.83% versus +11.93% for the Greenwich Global Hedge Fund Index.
By comparison, the S&P 500, MSCI World Equity, FTSE 100, and Lehman Brothers Aggregate Bond indices were up by +4.43% (+5.09% YTD), +4.21% (+6.36% YTD), +2.24% (+3.68% YTD), and +0.54% (+2.05% YTD), respectively.
17 of 18 Greenwich strategies ended April in positive territory. Futures strategies led, up +4.42%, owing largely to managers' ability to capitalize on strength in energy and Euro and Sterling valuations. Short sellers, which account for roughly 1% of index constituents, were the exception; down -2.91% for the month.
Currently, the April Index includes 972 funds. Final results will be posted by Greenwich at the end of May, after additional funds have submitted returns.
In April, the Greenwich Investable Index returned 1.49% (4.03% YTD). It adds investability, active management and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. It references actual hedge fund vehicles as opposed to separately managed accounts that attempt to replicate the returns of actual hedge fund vehicles. Since inception in January 2003, the Investable Index has achieved an annualized return of +10.83% versus +11.93% for the Greenwich Global Hedge Fund Index.
Simran Receives Hedge Fund Award
Simran Capital Management, a pre-event driven activist hedge fund manager that focuses on stressed and distressed credit markets, was given the "Emerging Manager of the Year" award at Opal Financial Group's 2007 Emerging Manager Summit.
This event brought together a diverse group of up-and-coming performance-oriented managers, fund of hedge funds, pension funds, endowments, family offices and leaders from the hedge fund industry, drawing its largest participation in its four-year history.
"We are very pleased to recognize and reward Simran Capital Management for their outstanding performance," said Abe Wellington, president, Opal Financial Group. "The purpose of this award, and this conference, is to showcase emerging managers with strong results and high potential; Simran Capital clearly has both."
"To achieve this level of recognition from our peers within the first year of launching this strategy is very gratifying," said Mesh Tandon, president and managing partner of hedge fund Simran Capital Management. "We thank Opal and Focus Point Press for this award and we're confident that our investment approach will stand the test of time through changing market conditions and continue to exemplify the spirit of this award."
The judging panel for the Emerging Manager of the Year Award was comprised of industry specialists from Focus Point Press, Opal Financial Group, as well as leading institutional and private investors. Judging decisions were based on performance, qualitative and structural criteria.
Launched in 2006, Simran Capital Management is a pre-event driven activist hedge fund that focuses on stressed and distressed credit markets and uses a proprietary method to find value and minimize risk in the universe of high- yield and distressed bonds.
This event brought together a diverse group of up-and-coming performance-oriented managers, fund of hedge funds, pension funds, endowments, family offices and leaders from the hedge fund industry, drawing its largest participation in its four-year history.
"We are very pleased to recognize and reward Simran Capital Management for their outstanding performance," said Abe Wellington, president, Opal Financial Group. "The purpose of this award, and this conference, is to showcase emerging managers with strong results and high potential; Simran Capital clearly has both."
"To achieve this level of recognition from our peers within the first year of launching this strategy is very gratifying," said Mesh Tandon, president and managing partner of hedge fund Simran Capital Management. "We thank Opal and Focus Point Press for this award and we're confident that our investment approach will stand the test of time through changing market conditions and continue to exemplify the spirit of this award."
The judging panel for the Emerging Manager of the Year Award was comprised of industry specialists from Focus Point Press, Opal Financial Group, as well as leading institutional and private investors. Judging decisions were based on performance, qualitative and structural criteria.
Launched in 2006, Simran Capital Management is a pre-event driven activist hedge fund that focuses on stressed and distressed credit markets and uses a proprietary method to find value and minimize risk in the universe of high- yield and distressed bonds.
21 May 2007
New Executive Director For Asian Hedge Funds
Joseph Chan has joined the Asia Hedge Fund Association as executive director, based in Hong Kong. His duties will include overseeing the organization's membership, drive and promoting its mission as a platform for the investment industry.
Chan has more than 20 years of experience in the financial and investment industry. He comes to the post from Grand Alliance Asset Management, where he was director. Before that, he was the first vice president of Credit Lyonnais Hong Kong, in the capital markets division responsible for developing its Asian capital market businesses. He also served as an executive director for Goldman Sachs Asia�s fixed income division.
Chan graduated from the Indiana University of Pennsylvania with a Bachelor of Science degree in Science and Mathematics, and earned a Master of Finance degree from the University of Hong Kong.
The Asia Hedge Fund Associations a non-profit international association of hedge fund managers, service providers and investors formed to unite the hedge fund industry and add to the increasing awareness of the advantages of hedge funds.
Chan has more than 20 years of experience in the financial and investment industry. He comes to the post from Grand Alliance Asset Management, where he was director. Before that, he was the first vice president of Credit Lyonnais Hong Kong, in the capital markets division responsible for developing its Asian capital market businesses. He also served as an executive director for Goldman Sachs Asia�s fixed income division.
Chan graduated from the Indiana University of Pennsylvania with a Bachelor of Science degree in Science and Mathematics, and earned a Master of Finance degree from the University of Hong Kong.
The Asia Hedge Fund Associations a non-profit international association of hedge fund managers, service providers and investors formed to unite the hedge fund industry and add to the increasing awareness of the advantages of hedge funds.
G8 Says Hedge Funds On Track
G8 finance ministers at the meeting to prepare a June 6-8 summit of leaders from the United States, Japan, Germany, Britain, France, Italy, Canada and Russia declared the global hedge fund economy on track for another year of bumper growth.
"Global growth remains robust and it is more balanced across regions and within our countries," said a communique published at the end of a two-day meeting at a lakeside hotel near Berlin.
"Risks for the outlook have abated, but high and volatile energy prices remain a concern and we will remain vigilant."
U.S. Treasury Secretary Henry Paulson stayed in Washington to prepare talks with China, the rising star of the world economy, highlighting the limits of the G8 as a form of global economic government.
Canadian Finance Minister Jim Flaherty summed up how far the Germans were from garnering critical support for their push for closer supervision of hedge funds, steps they say are needed to ensure the highly-leveraged investment vehicles do not threaten the stability of the financial system in general.
"We're reticent to engage in any sort of top-down regulatory approach and with government getting into direct regulation," he told reporters at the G8 meeting place, a lakeside hotel near Potsdam, southwest of Berlin.
Like the United States, Britain and Japan, Canada is keen to avoid any moves to establish formal regulation of the hedge fund industry, which has boomed under loose rules in recent years as investors seek the juicier profits the investment funds' riskier bets can generate.
"There are really two different approaches here. One is the more direct regulatory approach that is advocated by some, but that's not the general view," Flaherty said.
Other G8 members like France and Italy have voiced no clear support either for the campaign Germany is waging during its year-long presidency this year of the G7 and G8 clubs, the latter of which includes Russia.
German Finance Minister Peer Steinbrueck vowed on Friday to pursue Berlin's drive for something at least half-way between regulation and the "light touch" approach preferred by London, Washington and Tokyo.
"Whether we come to a specific code of conduct by the end of this year or by the end of 2008 is something I don't care about as long as we get there," Steinbrueck told a news conference on Friday.
Ministers from Cameroon, Ghana, Nigeria, Mozambique and South Africa were invited to a Friday dinner as part of the German presidency's outreach drive.
The Oxfam charity seized on the occasion, accusing G8 leaders of failing to fulfill promises made in 2005 to raise aid flows to Africa by $50 billion a year.
"Global growth remains robust and it is more balanced across regions and within our countries," said a communique published at the end of a two-day meeting at a lakeside hotel near Berlin.
"Risks for the outlook have abated, but high and volatile energy prices remain a concern and we will remain vigilant."
U.S. Treasury Secretary Henry Paulson stayed in Washington to prepare talks with China, the rising star of the world economy, highlighting the limits of the G8 as a form of global economic government.
Canadian Finance Minister Jim Flaherty summed up how far the Germans were from garnering critical support for their push for closer supervision of hedge funds, steps they say are needed to ensure the highly-leveraged investment vehicles do not threaten the stability of the financial system in general.
"We're reticent to engage in any sort of top-down regulatory approach and with government getting into direct regulation," he told reporters at the G8 meeting place, a lakeside hotel near Potsdam, southwest of Berlin.
Like the United States, Britain and Japan, Canada is keen to avoid any moves to establish formal regulation of the hedge fund industry, which has boomed under loose rules in recent years as investors seek the juicier profits the investment funds' riskier bets can generate.
"There are really two different approaches here. One is the more direct regulatory approach that is advocated by some, but that's not the general view," Flaherty said.
Other G8 members like France and Italy have voiced no clear support either for the campaign Germany is waging during its year-long presidency this year of the G7 and G8 clubs, the latter of which includes Russia.
German Finance Minister Peer Steinbrueck vowed on Friday to pursue Berlin's drive for something at least half-way between regulation and the "light touch" approach preferred by London, Washington and Tokyo.
"Whether we come to a specific code of conduct by the end of this year or by the end of 2008 is something I don't care about as long as we get there," Steinbrueck told a news conference on Friday.
Ministers from Cameroon, Ghana, Nigeria, Mozambique and South Africa were invited to a Friday dinner as part of the German presidency's outreach drive.
The Oxfam charity seized on the occasion, accusing G8 leaders of failing to fulfill promises made in 2005 to raise aid flows to Africa by $50 billion a year.
16 May 2007
CB Richard Ellis and Group Aim Launch Joint Property Hedge Fund
CB Richard Ellis Group and Reech AiM Group have formed a joint venture to set up property hedge funds with a UK and European focus. Launched successfully on May 12th, the Iceberg Alternative Real Estate is a relative value commercial real estate hedge fund.
With Goldman Sachs as prime broker, Iceberg Alternative Real Estate is aiming for a 12% volatility rate and a return equivalent to Libor plus 15%. Libor is the London Interbank Offered Rate, a benchmark for borrowing, currently at 5.3%.
The hedge fund has a minimum investment of £500,000 ($991K). With a 24 month lockup period, Iceberg has a 1.5% management fee and 15% in performance fees.
Iceberg is, "the first true hedge fund play offering an opportunity to invest in a new asset class," according to the hedge funds chairman Christopher Reech." Real-estate hedge funds are going to provide new risk and return dimensions to traditional physical property exposure.' Iceberg already has commitments for $240 million.
Martin Samworth, Managing Director of CB Richard Ellis, adds, “Our joint venture with Reech AiM and the launch of the Iceberg Fund are examples of the growing financial sophistication of the real estate markets and the opportunity that this represents for our business.
CB Richard Ellis Group, Inc. is a commercial real estate services firm with full-service operations in metropolitan areas worldwide. The Company offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other commercial real estate assets.
Reech AiM Group is an investment management company, managing absolute return funds for institutions, high-net-worth individuals, charities, endowments and foundations, the company was created as a 'next generation' alternative investment management company to address today's hedge fund market challenges, the lack of liquidity and scalability.
With Goldman Sachs as prime broker, Iceberg Alternative Real Estate is aiming for a 12% volatility rate and a return equivalent to Libor plus 15%. Libor is the London Interbank Offered Rate, a benchmark for borrowing, currently at 5.3%.
The hedge fund has a minimum investment of £500,000 ($991K). With a 24 month lockup period, Iceberg has a 1.5% management fee and 15% in performance fees.
Iceberg is, "the first true hedge fund play offering an opportunity to invest in a new asset class," according to the hedge funds chairman Christopher Reech." Real-estate hedge funds are going to provide new risk and return dimensions to traditional physical property exposure.' Iceberg already has commitments for $240 million.
Martin Samworth, Managing Director of CB Richard Ellis, adds, “Our joint venture with Reech AiM and the launch of the Iceberg Fund are examples of the growing financial sophistication of the real estate markets and the opportunity that this represents for our business.
CB Richard Ellis Group, Inc. is a commercial real estate services firm with full-service operations in metropolitan areas worldwide. The Company offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other commercial real estate assets.
Reech AiM Group is an investment management company, managing absolute return funds for institutions, high-net-worth individuals, charities, endowments and foundations, the company was created as a 'next generation' alternative investment management company to address today's hedge fund market challenges, the lack of liquidity and scalability.
Global Investment House launches Global Islamic Fund of Funds
Global Investment House announced the launch of the 'Global Islamic Fund of Funds', an open-ended fund of funds investing in local and international Shari'a compliant funds. The new fund will invest in all types of funds such as equity, real estate, hedge funds and private equity funds compliant with the Shari'a law.
Executive Vice President Sameer Al-Gharaballi said, "The fund's objective is to provide long term capital appreciation with reduced risk by investing in a diverse basket of Shari'a compliant funds and instruments."
He added that the fund's strategy is to invest the majority of its assets in a core of "carefully selected Islamic funds that complement each other in risk and return."
Miss Badria Al-Humaidhi, Senior Investment Analyst in Global said "There are over 300 Islamic financial institutions operating in 75 countries with combined assets exceeding $300 billion, and an annual growth rate of 15%. Additionally, Islamic funds assets have had a rapid growth in the past decade, their AUM has exceeded $300 billion as of 2006, with a significant amount attributable to the growth of the GCC stock markets."
The fund has a minimum investment of $25,000 with a monthly subscription frequency and quarterly redemptions after the lockup period.
Global has been tracking Islamic fund managers for over five years and has a vast experience in the Islamic Financial Markets which has resulted in the launching of three Islamic Real Estate Funds; Global GCC Real Estate Fund, Global US Real Estate Fund and Global Asia Real Estate Fund along with a range of Equity funds such as Al-Durrah Islamic Fund and Global Islamic GCC Large Cap Fund, as well as a Money Market fund, Global Islamic Fund.
Global currently manages more than 30 investment funds of varying strategies and investment objectives, with returns exceeding market indices.
Executive Vice President Sameer Al-Gharaballi said, "The fund's objective is to provide long term capital appreciation with reduced risk by investing in a diverse basket of Shari'a compliant funds and instruments."
He added that the fund's strategy is to invest the majority of its assets in a core of "carefully selected Islamic funds that complement each other in risk and return."
Miss Badria Al-Humaidhi, Senior Investment Analyst in Global said "There are over 300 Islamic financial institutions operating in 75 countries with combined assets exceeding $300 billion, and an annual growth rate of 15%. Additionally, Islamic funds assets have had a rapid growth in the past decade, their AUM has exceeded $300 billion as of 2006, with a significant amount attributable to the growth of the GCC stock markets."
The fund has a minimum investment of $25,000 with a monthly subscription frequency and quarterly redemptions after the lockup period.
Global has been tracking Islamic fund managers for over five years and has a vast experience in the Islamic Financial Markets which has resulted in the launching of three Islamic Real Estate Funds; Global GCC Real Estate Fund, Global US Real Estate Fund and Global Asia Real Estate Fund along with a range of Equity funds such as Al-Durrah Islamic Fund and Global Islamic GCC Large Cap Fund, as well as a Money Market fund, Global Islamic Fund.
Global currently manages more than 30 investment funds of varying strategies and investment objectives, with returns exceeding market indices.
15 May 2007
Brighton House Launches Hedge Fund Product
Brighton House Associates officially launched it first product, BHA SalesDesk, a hedge fund sales and marketing system. The solution is sold directly to customers and is in use by hedge funds, broker/dealers, funds-of-funds, as well as by industry service providers.
BHA SalesDesk combines CRM technology, global investor information, and a professional research team to connect hedge funds with qualified hedge fund investors.
According to the company press release, the new component requires no IT support and little training so any user familiar with Web browsers and basic office software can use BHA SalesDesk.
Fund managers can consolidate lead generation from multiple sources to the BHA SalesDesk system, view comprehensive profiles of every individual and company with $25 million or more invested in hedge strategies, and access contact information, investor preference, current interests, and previous investments.
Because it’s Web-based, BHA SalesDesk is accessible from anywhere via PC, laptop, handhelddevice, phone or PDA. The solution was developed by a veteran hedge fund marketer who saw the inherent inefficiencies in the hedge fund marketing process.
Founded in 2006 by Daniel McDermott, a veteran hedge fund marketing professional, Brighton House Associates, LLC (BHA) offers solutions that address the vast inefficiencies inherent in the sales and marketing of hedge funds. Brighton House customers include Wall Street brokerage houses, multi-billion dollar hedge funds and funds-of-funds, and industry service providers.
BHA SalesDesk combines CRM technology, global investor information, and a professional research team to connect hedge funds with qualified hedge fund investors.
According to the company press release, the new component requires no IT support and little training so any user familiar with Web browsers and basic office software can use BHA SalesDesk.
Fund managers can consolidate lead generation from multiple sources to the BHA SalesDesk system, view comprehensive profiles of every individual and company with $25 million or more invested in hedge strategies, and access contact information, investor preference, current interests, and previous investments.
Because it’s Web-based, BHA SalesDesk is accessible from anywhere via PC, laptop, handhelddevice, phone or PDA. The solution was developed by a veteran hedge fund marketer who saw the inherent inefficiencies in the hedge fund marketing process.
Founded in 2006 by Daniel McDermott, a veteran hedge fund marketing professional, Brighton House Associates, LLC (BHA) offers solutions that address the vast inefficiencies inherent in the sales and marketing of hedge funds. Brighton House customers include Wall Street brokerage houses, multi-billion dollar hedge funds and funds-of-funds, and industry service providers.
AdultVest To Host Alternative Investment Conference
AdultVest.com is planning on hosting the first annual AdultVest investment conference in Los Angeles, CA, geared to match institutional and accredited investors with adult industry related investment opportunities. So far, the company reports there are well over 1,000 accredited investors and nearly 300 adult companies pre-registered.
Founded by hedge fund veteran Francis Koenig, parent company AdultVest, Inc. represents some of the largest and best known adult entertainment companies in the market, and is the first and only investment firm to concentrate its practice exclusively on adult industry investments, mergers, and acquisitions. The company has been featured on CNN Money, Business 2.0 Magazine, Institutional Investor Magazine, Alternative Investor, Forbes, Hedge Fund Daily and LA Daily News.
To date, AdultVest has launched two hedge funds: the Priapus and the Bacchus Investment Funds, both of which are able to accept IRA and 401k money from accredited investors and qualified institutions. As a result, investors have the ability to invest directly from a pool of tax deferred capital typically locked up until the beneficiary reaches age 65.
The firm also plans to launch a new hedge fund later this year which will offer a collateralized preferred dividend as high as LIBOR plus 5% -- with current LIBOR rates at apx 5.35% this would mean a preferred dividend of up to 10.35% on invested capital. Mr. Koenig emphasizes, "These funds are not for small investors. There are no guarantees of performance. We only accept accredited investors who have no need for liquidity, who are sophisticated enough to understand the risks, and who have the ability to sustain the loss of their entire investment."
The Company's two core components are the Investment Group and the Business Group. The primary focus of the Investment Group (including the Bacchus Fund and the Priapus Fund) is on venture capital, private equity, and hedged investments, while the Business Group primarily provides business to business services, i.e. investment banking, capital introduction, consulting, licensing, and various other business services.
AdultVest's mission is to facilitate investment in the adult industry -- by enabling a more efficient flow of information, and through the continued establishment of professionally managed investment vehicles designed to create transparency and liquidity for investors.
"The metrics can be extremely attractive, and the benefits are clear," says Koenig. "Investors receive transparency and the company gains increased access to capital, while the ability to buy and sell stock on the open market enables owners and shareholders to create liquidity and unlock value."
Founded by hedge fund veteran Francis Koenig, parent company AdultVest, Inc. represents some of the largest and best known adult entertainment companies in the market, and is the first and only investment firm to concentrate its practice exclusively on adult industry investments, mergers, and acquisitions. The company has been featured on CNN Money, Business 2.0 Magazine, Institutional Investor Magazine, Alternative Investor, Forbes, Hedge Fund Daily and LA Daily News.
To date, AdultVest has launched two hedge funds: the Priapus and the Bacchus Investment Funds, both of which are able to accept IRA and 401k money from accredited investors and qualified institutions. As a result, investors have the ability to invest directly from a pool of tax deferred capital typically locked up until the beneficiary reaches age 65.
The firm also plans to launch a new hedge fund later this year which will offer a collateralized preferred dividend as high as LIBOR plus 5% -- with current LIBOR rates at apx 5.35% this would mean a preferred dividend of up to 10.35% on invested capital. Mr. Koenig emphasizes, "These funds are not for small investors. There are no guarantees of performance. We only accept accredited investors who have no need for liquidity, who are sophisticated enough to understand the risks, and who have the ability to sustain the loss of their entire investment."
The Company's two core components are the Investment Group and the Business Group. The primary focus of the Investment Group (including the Bacchus Fund and the Priapus Fund) is on venture capital, private equity, and hedged investments, while the Business Group primarily provides business to business services, i.e. investment banking, capital introduction, consulting, licensing, and various other business services.
AdultVest's mission is to facilitate investment in the adult industry -- by enabling a more efficient flow of information, and through the continued establishment of professionally managed investment vehicles designed to create transparency and liquidity for investors.
"The metrics can be extremely attractive, and the benefits are clear," says Koenig. "Investors receive transparency and the company gains increased access to capital, while the ability to buy and sell stock on the open market enables owners and shareholders to create liquidity and unlock value."
14 May 2007
Man Investments Launches Bayswater Macro Program
Man Investments, one of the world’s largest hedge fund providers, announced a new capital guaranteed product in its Man AP family.
Man AP Spectrum Ltd combines for the first time the proven performance of the AHL Institutional Program with a significant allocation to Bayswater, a San Francisco-based quantitative global macro manager. It also allocates capital to four Man Global Strategies style hedge fund portfolios to provide added opportunities for profit and diversification.
The Bayswater Macro Program achieved annualized returns of 14.4% between 1 August 2004 and 28 February 2007 while the AHL Institutional Program generated annualized returns of 17.1% in the time frame 17 October 1995 to 28 February 2007.
"We are pleased to offer investors access to Bayswater as a core component of a structured investment product for the first time", said John Morrison, Chief Executive of Man Investments, "the complementary nature of AHL and Bayswater will add a new dimension to the traditional Man AP portfolio".
Both AHL and Bayswater are built on the philosophy that financial markets are inefficient and can be exploited by applying systematic and non-discretionary trading models. The difference is that Bayswater takes a longer term global macro approach while AHL aims to capture short and medium term trends on a wide range of global markets. The mix of the two managers in a portfolio is attractive since they are complementary due to the low correlation (0.28 for the period 1 August 2004 to 28 February 2007) and have the potential to capture profits at different points in a market cycle in a wide range of markets.
Man AP Spectrum Ltd is offered in a choice of USD and EUR bonds, each targeting mean annualized returns of 13-16% (USD bonds) and 11-14% (EUR bonds) for a mean annualized volatility of about 9-11% for both bond classes. Investors will also benefit from a capital guarantee provided by Merrill Lynch International Bank Limited, and a profit lock-in feature.
Man AP Spectrum Ltd combines for the first time the proven performance of the AHL Institutional Program with a significant allocation to Bayswater, a San Francisco-based quantitative global macro manager. It also allocates capital to four Man Global Strategies style hedge fund portfolios to provide added opportunities for profit and diversification.
The Bayswater Macro Program achieved annualized returns of 14.4% between 1 August 2004 and 28 February 2007 while the AHL Institutional Program generated annualized returns of 17.1% in the time frame 17 October 1995 to 28 February 2007.
"We are pleased to offer investors access to Bayswater as a core component of a structured investment product for the first time", said John Morrison, Chief Executive of Man Investments, "the complementary nature of AHL and Bayswater will add a new dimension to the traditional Man AP portfolio".
Both AHL and Bayswater are built on the philosophy that financial markets are inefficient and can be exploited by applying systematic and non-discretionary trading models. The difference is that Bayswater takes a longer term global macro approach while AHL aims to capture short and medium term trends on a wide range of global markets. The mix of the two managers in a portfolio is attractive since they are complementary due to the low correlation (0.28 for the period 1 August 2004 to 28 February 2007) and have the potential to capture profits at different points in a market cycle in a wide range of markets.
Man AP Spectrum Ltd is offered in a choice of USD and EUR bonds, each targeting mean annualized returns of 13-16% (USD bonds) and 11-14% (EUR bonds) for a mean annualized volatility of about 9-11% for both bond classes. Investors will also benefit from a capital guarantee provided by Merrill Lynch International Bank Limited, and a profit lock-in feature.
Hedge Funds See Carbon Opportunities
Rapidly developing carbon trading markets are creating a range of promising opportunities for hedge funds to participate in this new sector, says a report from Man Investments, the world’s largest provider of hedge fund investments.
Carbon markets, already trading significantly, have sprung up as the result of measures taken to reduce carbon emissions, such as the sale of carbon credits. The European Union’s Emission Trading Scheme last year saw financial volumes on exchanges and through brokers totalling EUR 14.6 billion, about three times the total for the previous year.
Thomas Della Casa, Head of Research for Man Investments and one of the authors of the report, says that, based on these opportunities, hedge funds have introduced, or are working on, new investment strategies, including: trading emissions, financing carbon projects, trading electric power, cross-commodity trading, long/short listed equity and private equity.
The report, An Update on the Carbon Market, is published in Man Investments’ April Quarterly Review, which examines developments and trends in the hedge fund industry. It observes that putting a value on emissions has now become mainstream financial thinking.
"Carbon trading is emerging as one of the most significant new sectors for hedge funds and we can expect continued rapid growth, particularly if the US and China in due course join in and establish their own carbon markets, as is widely anticipated," Della Casa said.
Man Investments, the Asset Management division of Man Group plc, is a global leader in the fast-growing alternative investments industry. It manages over $61 billion and employs more than 1,300 people worldwide. Man Investments has key centers in London and Pfäffikon (Switzerland), and offices in Chicago, Hong Kong, the Middle East, Montevideo, Nassau, Sydney, Tokyo and Toronto.
Carbon markets, already trading significantly, have sprung up as the result of measures taken to reduce carbon emissions, such as the sale of carbon credits. The European Union’s Emission Trading Scheme last year saw financial volumes on exchanges and through brokers totalling EUR 14.6 billion, about three times the total for the previous year.
Thomas Della Casa, Head of Research for Man Investments and one of the authors of the report, says that, based on these opportunities, hedge funds have introduced, or are working on, new investment strategies, including: trading emissions, financing carbon projects, trading electric power, cross-commodity trading, long/short listed equity and private equity.
The report, An Update on the Carbon Market, is published in Man Investments’ April Quarterly Review, which examines developments and trends in the hedge fund industry. It observes that putting a value on emissions has now become mainstream financial thinking.
"Carbon trading is emerging as one of the most significant new sectors for hedge funds and we can expect continued rapid growth, particularly if the US and China in due course join in and establish their own carbon markets, as is widely anticipated," Della Casa said.
Man Investments, the Asset Management division of Man Group plc, is a global leader in the fast-growing alternative investments industry. It manages over $61 billion and employs more than 1,300 people worldwide. Man Investments has key centers in London and Pfäffikon (Switzerland), and offices in Chicago, Hong Kong, the Middle East, Montevideo, Nassau, Sydney, Tokyo and Toronto.
11 May 2007
G8 Agrees On Self-Regulation for Hedge Funds
EU finance ministers agreed at the recent Group of Eight meetings to allow the hedge fund industry regulate itself through a voluntary code of conduct, the German finance minister Peer Steinbrueck said.
"We all agree that a regulatory approach is the wrong one, so we're doing the indirect approach which everybody says is right," he told journalists after chairing a meeting with his EU counterparts in Brussels.
"Further discussions with the hedge fund industry ought be pursued on what might be included in a code of conduct, how it might be implemented and monitored," he said.
Germany has had to climb down from plans for more oversight on speculative hedge funds after finding little support among its partners in both the European Union and the Group of Seven industrialized countries.
EU Internal Market Commission Charlie McCreevy, who has long opposed regulation of hedge funds, said: "I would be very supportive of the industry adopting a voluntary code of conduct."
Steinbrueck said last month in Berlin that only 10 to 15 percent of hedge funds would need to participate in such a code of conduct for it to work as long as it included the biggest players.
As the industry has grown, concerns have mounted, especially in Germany, that hedge funds could pose wider risks to the stability of the financial system if they ran into serious trouble.
"We all agree that a regulatory approach is the wrong one, so we're doing the indirect approach which everybody says is right," he told journalists after chairing a meeting with his EU counterparts in Brussels.
"Further discussions with the hedge fund industry ought be pursued on what might be included in a code of conduct, how it might be implemented and monitored," he said.
Germany has had to climb down from plans for more oversight on speculative hedge funds after finding little support among its partners in both the European Union and the Group of Seven industrialized countries.
EU Internal Market Commission Charlie McCreevy, who has long opposed regulation of hedge funds, said: "I would be very supportive of the industry adopting a voluntary code of conduct."
Steinbrueck said last month in Berlin that only 10 to 15 percent of hedge funds would need to participate in such a code of conduct for it to work as long as it included the biggest players.
As the industry has grown, concerns have mounted, especially in Germany, that hedge funds could pose wider risks to the stability of the financial system if they ran into serious trouble.
Kassirer Hedge Funds Up for April
Kassirer Market Neutral Fund, a Cayman-based hedge fund primarily engaged in U.S. and Canadian merger arbitrage, earned 1.3% in April, another Kassirer hedge fund, the Kassirer Market Neutral Limited Partnership, earned 1.70% in April 2007.
Mark Kassirer, CEO of Kassirer Asset Management said: "April was a month in which merger arbitrage continued to be active and profitable. The hedge fund's special situations portfolio also made a meaningful contribution. Canadian positions currently account for one third of the fund's market exposure. The fund remains exceptionally well diversified which augurs well for continued stability of fund returns. The fund has had 70 positive months in its 76 month history, and the standard deviation of returns since inception, a measure of volatility and risk, remains very low at 2.01%."
Kassirer holds an Honours Bachelor of Science degree from the University of Toronto, an MBA from York University and is a Chartered Financial Analyst.
Mark Kassirer, CEO of Kassirer Asset Management said: "April was a month in which merger arbitrage continued to be active and profitable. The hedge fund's special situations portfolio also made a meaningful contribution. Canadian positions currently account for one third of the fund's market exposure. The fund remains exceptionally well diversified which augurs well for continued stability of fund returns. The fund has had 70 positive months in its 76 month history, and the standard deviation of returns since inception, a measure of volatility and risk, remains very low at 2.01%."
Kassirer holds an Honours Bachelor of Science degree from the University of Toronto, an MBA from York University and is a Chartered Financial Analyst.
10 May 2007
Hennessee Hedge Fund Index Up for April
Hennessee Group LLC, an adviser to hedge fund investors, announced yesterday that the Hennessee Hedge Fund Index advanced +1.92% in April (+5.44% YTD).
“While the strong equity markets have been a wind at the back of hedge fund performance, most funds continue to be relatively conservatively positioned,” said E. Lee Hennessee, Managing Principal of Hennessee Group LLC. “Many are concerned about the continued deterioration in housing, increasing inflation, extraordinarily tight credit spreads, and a weak dollar.”
The Hennessee Long/Short Equity Index advanced +1.85% in April (+5.15% YTD). First quarter earnings reports were generally better than expected, acting as a catalyst for the Dow Jones Industrial Average to eclipse 13,000 and again set new all-time highs.
“While first quarter GDP growth of +1.3% failed to meet expectations, the majority of the decline in growth was due to housing,” said Charles Gradante, Managing Principal of Hennessee Group LLC. “Given the decline in housing, most managers have been surprised about the strength of consumer spending, which represents two-thirds of the overall U.S. economy.”
“Most macro managers are concerned about the dollar, as interest rates in Europe continue to increase and the current account deficit is now 7% of GDP, which is an all-time high for the U.S.,” stated Mr. Gradante. “Fundamentals are strong in the economy and the market, however, a free fall in the dollar is the Achilles’ heel of this market.”
The Hennessee Hedge Fund Indices are calculated froma group of over 1,000 hedge funds. The funds in the Hennessee Hedge Fund Index are derived from the Hennessee Group’s database of over 3,500 hedge funds.
“While the strong equity markets have been a wind at the back of hedge fund performance, most funds continue to be relatively conservatively positioned,” said E. Lee Hennessee, Managing Principal of Hennessee Group LLC. “Many are concerned about the continued deterioration in housing, increasing inflation, extraordinarily tight credit spreads, and a weak dollar.”
The Hennessee Long/Short Equity Index advanced +1.85% in April (+5.15% YTD). First quarter earnings reports were generally better than expected, acting as a catalyst for the Dow Jones Industrial Average to eclipse 13,000 and again set new all-time highs.
“While first quarter GDP growth of +1.3% failed to meet expectations, the majority of the decline in growth was due to housing,” said Charles Gradante, Managing Principal of Hennessee Group LLC. “Given the decline in housing, most managers have been surprised about the strength of consumer spending, which represents two-thirds of the overall U.S. economy.”
“Most macro managers are concerned about the dollar, as interest rates in Europe continue to increase and the current account deficit is now 7% of GDP, which is an all-time high for the U.S.,” stated Mr. Gradante. “Fundamentals are strong in the economy and the market, however, a free fall in the dollar is the Achilles’ heel of this market.”
The Hennessee Hedge Fund Indices are calculated froma group of over 1,000 hedge funds. The funds in the Hennessee Hedge Fund Index are derived from the Hennessee Group’s database of over 3,500 hedge funds.
9 May 2007
SEC Settles Against Zurich With A $4 Million Penalty
The Securities and Exchange Commission announced a settled administrative proceeding against Zurich Capital Markets Inc. for its role in providing financing to hedge fund clients that engaged in market timing of mutual funds and facilitating the hedge funds' deceptive trading tactics.
The Commission ordered ZCM, a New York-based subsidiary of Zurich Financial Services, to pay $16.8 million consisting of $12.8 million in disgorgement and prejudgment interest and a $4 million penalty. The money will be distributed to the mutual funds that were harmed as a result of market timing ZCM facilitated.
Mark K. Schonfeld, Director of the New York Regional Office, said, "By knowingly financing their hedge funds clients' deceptive market timing, ZCM reaped substantial fees at the expense of long-term mutual fund shareholders. Because of ZCM's attractive financing arrangement and its willingness to create a number of anonymous special purpose vehicles ( SPVs ) for its hedge fund clients, the hedge funds were able to inflate their trading profits from their deceptive conduct."
Helene Glotzer, Associate Director of the New York Regional Office, added, "This action demonstrates that the Commission continues to carefully examine the role of financial intermediaries that assist hedge funds engaged in deceptive practices."
The Commission's Order found that ZCM aided and abetted four hedge funds that were carrying out schemes to defraud mutual funds that prohibited market timing. ZCM's hedge fund clients knew that many of these mutual funds prohibited market timing. In an effort to avoid being detected and potentially blocked from making market-timing trades in these funds, each of these hedge funds and ZCM disguised their identities
ZCM, which is currently winding down its operations, consented to the entry of the Commission's Order without admitting or denying the Commission's findings. In determining to accept the settlement, the Commission considered ZCM's cooperation in this investigation.
The Commission ordered ZCM, a New York-based subsidiary of Zurich Financial Services, to pay $16.8 million consisting of $12.8 million in disgorgement and prejudgment interest and a $4 million penalty. The money will be distributed to the mutual funds that were harmed as a result of market timing ZCM facilitated.
Mark K. Schonfeld, Director of the New York Regional Office, said, "By knowingly financing their hedge funds clients' deceptive market timing, ZCM reaped substantial fees at the expense of long-term mutual fund shareholders. Because of ZCM's attractive financing arrangement and its willingness to create a number of anonymous special purpose vehicles ( SPVs ) for its hedge fund clients, the hedge funds were able to inflate their trading profits from their deceptive conduct."
Helene Glotzer, Associate Director of the New York Regional Office, added, "This action demonstrates that the Commission continues to carefully examine the role of financial intermediaries that assist hedge funds engaged in deceptive practices."
The Commission's Order found that ZCM aided and abetted four hedge funds that were carrying out schemes to defraud mutual funds that prohibited market timing. ZCM's hedge fund clients knew that many of these mutual funds prohibited market timing. In an effort to avoid being detected and potentially blocked from making market-timing trades in these funds, each of these hedge funds and ZCM disguised their identities
ZCM, which is currently winding down its operations, consented to the entry of the Commission's Order without admitting or denying the Commission's findings. In determining to accept the settlement, the Commission considered ZCM's cooperation in this investigation.
Fortress Acquires East Coast Industries For $3.5 Billion
Hedge fund investor Fortress Investment Group LLC has acquired Florida East Coast Industries, Inc. (FECI) for approximately $3.5 billion, according to a press release. The merger agreement was unanimously approved by FECI's Board of Directors. Upon completion of the transaction, FECI will become a privately held company, and its common stock will no longer be publicly traded.
Florida East Coast Industries will pay a special dividend of $21.50 per share in cash and in the merger shareholders will receive $62.50 in cash for each share of FECI common stock they hold. The combined dividend and merger consideration equal $84.00 per share and represent a 13.3% premium to the NYSE closing price of $74.13 on May 7, 2007 and a 31% premium to the average closing price over the last 60 trading days.
Adolfo Henriques, Chairman, President and Chief Executive Officer of FECI, stated, "Our focus has always been about maximizing shareholder value. The value created by this transaction is a direct result of our employees' dedication, commitment and hard work over many years. We look forward to working together with Fortress to continue to build our businesses."
Morgan Stanley acted as financial advisor to FECI and provided an opinion to the Board of Directors of Florida East Coast Industries that the merger consideration is fair to FECI shareholders from a financial point of view. Additional information will be filed with the SEC.
Florida East Coast Industries, Inc., owns, develops, leases and holds in joint ventures, approximately 8.6 million square feet of Class-A office and industrial space primarily in Jacksonville, Orlando and South Florida counties of Palm Beach, Broward and Miami-Dade, as well as an additional 1,916,000 square feet under construction.
Fortress Investment Group LLC is a leading global alternative asset manager with approximately $35.1 billion in assets. Fortress manages private equity funds, hedge funds and publicly traded alternative investment vehicles. The private equity funds total approximately $19.9 billion of the firm's assets under management.
Florida East Coast Industries will pay a special dividend of $21.50 per share in cash and in the merger shareholders will receive $62.50 in cash for each share of FECI common stock they hold. The combined dividend and merger consideration equal $84.00 per share and represent a 13.3% premium to the NYSE closing price of $74.13 on May 7, 2007 and a 31% premium to the average closing price over the last 60 trading days.
Adolfo Henriques, Chairman, President and Chief Executive Officer of FECI, stated, "Our focus has always been about maximizing shareholder value. The value created by this transaction is a direct result of our employees' dedication, commitment and hard work over many years. We look forward to working together with Fortress to continue to build our businesses."
Morgan Stanley acted as financial advisor to FECI and provided an opinion to the Board of Directors of Florida East Coast Industries that the merger consideration is fair to FECI shareholders from a financial point of view. Additional information will be filed with the SEC.
Florida East Coast Industries, Inc., owns, develops, leases and holds in joint ventures, approximately 8.6 million square feet of Class-A office and industrial space primarily in Jacksonville, Orlando and South Florida counties of Palm Beach, Broward and Miami-Dade, as well as an additional 1,916,000 square feet under construction.
Fortress Investment Group LLC is a leading global alternative asset manager with approximately $35.1 billion in assets. Fortress manages private equity funds, hedge funds and publicly traded alternative investment vehicles. The private equity funds total approximately $19.9 billion of the firm's assets under management.
8 May 2007
Canadian Hedge Fund Launch
Goodman & Company Investment Counsel Ltd. announced the launch of the Dynamic Global Value Balanced Fund, a balanced fund offering global diversification.
The fund highlights active hedging as risk management, minimizing sensitivity to interest rate and credit spread changes and foreign currency exposure, tactical asset allocation, and diversification.
"With this fund, investors can participate as stock markets rise while bonds help to safeguard their portfolio against stock market downturns," said David Fingold. "What's most unique about this fund is the complete flexibility we have to go wherever there is value on both the equity and the fixed income side. We are not constrained by any index and we have all the tools we need to control risk."
Two award-winning hedge fund managers have joined forces to build and manage the Dynamic Global Value Balanced Fund portfolio. Goodman & Company's global equity specialist David Fingold will manage the fund's value-style equities, and Barry Allan, founder of Marret Asset Management Inc., will manage the high-yield bond portion of the portfolio.
David Fingold is also the lead portfolio manager of Dynamic American Value Fund and two other global value funds, including Dynamic Global Discovery Fund, which won Global Equity Fund of the Year at the first annual Lipper Fund Awards 2007 Canada.
Barry Allan is also the lead portfolio manager of Dynamic High Yield Bond Fund, which won High-Yield Bond Fund of the Year at the 2005 Canadian Investment Awards. He also co-manages two other Dynamic value funds, including Dynamic Value Balanced Fund, which was named Canadian Balanced Fund of the Year at the Lipper Fund Awards 2007 Canada.
Goodman & Company has more than $24 billion in assets under management and offers wealth management solutions to mutual funds, hedge funds and high net-worth investment counsel.
The fund highlights active hedging as risk management, minimizing sensitivity to interest rate and credit spread changes and foreign currency exposure, tactical asset allocation, and diversification.
"With this fund, investors can participate as stock markets rise while bonds help to safeguard their portfolio against stock market downturns," said David Fingold. "What's most unique about this fund is the complete flexibility we have to go wherever there is value on both the equity and the fixed income side. We are not constrained by any index and we have all the tools we need to control risk."
Two award-winning hedge fund managers have joined forces to build and manage the Dynamic Global Value Balanced Fund portfolio. Goodman & Company's global equity specialist David Fingold will manage the fund's value-style equities, and Barry Allan, founder of Marret Asset Management Inc., will manage the high-yield bond portion of the portfolio.
David Fingold is also the lead portfolio manager of Dynamic American Value Fund and two other global value funds, including Dynamic Global Discovery Fund, which won Global Equity Fund of the Year at the first annual Lipper Fund Awards 2007 Canada.
Barry Allan is also the lead portfolio manager of Dynamic High Yield Bond Fund, which won High-Yield Bond Fund of the Year at the 2005 Canadian Investment Awards. He also co-manages two other Dynamic value funds, including Dynamic Value Balanced Fund, which was named Canadian Balanced Fund of the Year at the Lipper Fund Awards 2007 Canada.
Goodman & Company has more than $24 billion in assets under management and offers wealth management solutions to mutual funds, hedge funds and high net-worth investment counsel.
7 May 2007
Blackstone To Launch 2 Funds Of Hedge Funds
Blackstone Group LP is looking to raise up to $2 billion for two new funds of hedge funds, according to recent reports, the Blackstone Strategic Alliance Fund LP and the Blackstone Strategic Alliance Offshore Fund Ltd.
Blackstone said in April filings with the Securities and Exchange Commission that the new funds may gather as much as $1 billion each. Commenting on developments, Paul Shaye of Chestnutt Hill Partners told Bloomberg: "It's another arrow in their quiver and shows again that Blackstone is no longer just a private-equity firm. It's really looking like a firm that is going to compete with the likes of the big brokerages.''
Blackstone's hedge fund unit currently manage $17.1 billion, which constitutes 22% of the firm's total assets under management. News of the company's intentions signals its intent to increase the scope of its money management interests having initially started out specializing in buyouts. Earlier this week Blackstone announced it has acquired plastics company Klockner Pentaplast from fellow private equity firm Cinven for $1.8 billion.
Since 1985, Blackstone has raised capital of approximately $59.4 billion for discretionary private equity investment funds focused on alternative asset classes. In addition Blackstone manages approximately $17.1 billion in discretionary marketable alternative asset programs, $2.5 billion in proprietary hedge funds and approximately $2 billion in closed-end mutual funds. The Corporate Advisory Services and Restructuring & Reorganization Advisory Services businesses have handled assignments valued at over $550 billion.
Through December 31, 2006, Blackstone had invested or committed to invest total capital of $37.5 billion in 371 transactions with a total enterprise value of over $339 billion through its Private Equity, Real Estate, and Mezzanine funds and over $6.1 billion across 467 different senior loan and other debt instruments through its Corporate Debt funds.
Blackstone said in April filings with the Securities and Exchange Commission that the new funds may gather as much as $1 billion each. Commenting on developments, Paul Shaye of Chestnutt Hill Partners told Bloomberg: "It's another arrow in their quiver and shows again that Blackstone is no longer just a private-equity firm. It's really looking like a firm that is going to compete with the likes of the big brokerages.''
Blackstone's hedge fund unit currently manage $17.1 billion, which constitutes 22% of the firm's total assets under management. News of the company's intentions signals its intent to increase the scope of its money management interests having initially started out specializing in buyouts. Earlier this week Blackstone announced it has acquired plastics company Klockner Pentaplast from fellow private equity firm Cinven for $1.8 billion.
Since 1985, Blackstone has raised capital of approximately $59.4 billion for discretionary private equity investment funds focused on alternative asset classes. In addition Blackstone manages approximately $17.1 billion in discretionary marketable alternative asset programs, $2.5 billion in proprietary hedge funds and approximately $2 billion in closed-end mutual funds. The Corporate Advisory Services and Restructuring & Reorganization Advisory Services businesses have handled assignments valued at over $550 billion.
Through December 31, 2006, Blackstone had invested or committed to invest total capital of $37.5 billion in 371 transactions with a total enterprise value of over $339 billion through its Private Equity, Real Estate, and Mezzanine funds and over $6.1 billion across 467 different senior loan and other debt instruments through its Corporate Debt funds.
Integra Hedge Fund Launch
Integra Investment Management announced the launch of their new hedge fund, the Integra FX2 Master Fund L.P., with $10 million of their own money at launch, the new hedge fund opened its doors April first, 2007.
The new fund was created to compliment Integra's established flagship fund, Integra Master Fund L.P. and to fulfill investor requests for an FX only product. The new fund will trade the same methodology as the flagship fund with the exception that it will be trading the OTC FX markets only with double the exposure of the flagship fund. Views will be expressed using options while adjusting the exposure levels via trading the underlying spot markets.
With UBS as prime broker, the hedge fund has a $500K minimum investment, 2% management fee and 20% performance fee. The Integra FX2 Master Fund will target the major currency pairs already traded in the flagship fund as well as a limited number of additional currency pairs. Richard Scalone, founder of Integra will act as portfolio manager for the new hedge fund.
Prior to his tenure at Integra, Scalone was at ABN Amro Bank where he worked as a proprietary trader in futures, bonds and the forward and spot markets from 1997 to 1998. From 1988 to 1997, Scalone traded foreign exchange for Chemical Bank (now JP Morgan Chase), serving as a forward currency trader, chief dealer for the European Monetary System (“EMS”) desk and as a forward desk manager for all EMS currencies.
Integra was formed in 1999, with $645 million in assets under management, Integra manages FX hedge fund and other option based FX trading strategies with minimal exposure to US Fixed Income.
Integra's Flagship Fund, the Integra Master Fund L.P. trades approximately 85% OTC FX in the major currency pairs and approximately 15% in the fixed income markets and the S&P via the futures markets.
The new fund was created to compliment Integra's established flagship fund, Integra Master Fund L.P. and to fulfill investor requests for an FX only product. The new fund will trade the same methodology as the flagship fund with the exception that it will be trading the OTC FX markets only with double the exposure of the flagship fund. Views will be expressed using options while adjusting the exposure levels via trading the underlying spot markets.
With UBS as prime broker, the hedge fund has a $500K minimum investment, 2% management fee and 20% performance fee. The Integra FX2 Master Fund will target the major currency pairs already traded in the flagship fund as well as a limited number of additional currency pairs. Richard Scalone, founder of Integra will act as portfolio manager for the new hedge fund.
Prior to his tenure at Integra, Scalone was at ABN Amro Bank where he worked as a proprietary trader in futures, bonds and the forward and spot markets from 1997 to 1998. From 1988 to 1997, Scalone traded foreign exchange for Chemical Bank (now JP Morgan Chase), serving as a forward currency trader, chief dealer for the European Monetary System (“EMS”) desk and as a forward desk manager for all EMS currencies.
Integra was formed in 1999, with $645 million in assets under management, Integra manages FX hedge fund and other option based FX trading strategies with minimal exposure to US Fixed Income.
Integra's Flagship Fund, the Integra Master Fund L.P. trades approximately 85% OTC FX in the major currency pairs and approximately 15% in the fixed income markets and the S&P via the futures markets.
3 May 2007
RBC Hedge Fund Index Up for March
RBC Capital Markets reported that for the month of March 2007 the RBC Hedge 250 Index had a net return of 0.87%. This brings the year-to-date return of the Index to 2.86%. These returns are estimated and will be finalized by the middle of next month. The return for February 2007 has been finalized at 0.77%.
The RBC Hedge 250 Index is an investable benchmark of the performance of the hedge fund industry. Comprised of more than 250 actual hedge funds, the RBC Hedge 250 Index is positioned as the industry’s most diversified and representative investable index.
The Universe on which the Index is based currently consists of 5,692 hedge funds (excluding funds of hedge funds) with aggregate assets under management of $1.319 trillion.
Since its inception on July 1, 2005 through the end of February 2007, the RBC Hedge 250 Index has had an annualized net return of 11.29%. In comparison, over the same period, other investable indices have averaged 7.96% while non-investable indices have averaged 12.97%, according to information reported by the sponsors of those indices.
The RBC Hedge 250 Index is an investable benchmark of the performance of the hedge fund industry. Comprised of more than 250 actual hedge funds, the RBC Hedge 250 Index is positioned as the industry’s most diversified and representative investable index.
The Universe on which the Index is based currently consists of 5,692 hedge funds (excluding funds of hedge funds) with aggregate assets under management of $1.319 trillion.
Since its inception on July 1, 2005 through the end of February 2007, the RBC Hedge 250 Index has had an annualized net return of 11.29%. In comparison, over the same period, other investable indices have averaged 7.96% while non-investable indices have averaged 12.97%, according to information reported by the sponsors of those indices.
BNP Buys Into Canadian Hedge Fund Subsidiary
BNP Paribas and the National Bank of Canada announced in a press release today that BNP Paribas has acquired a stake in Innocap Investment Management Inc., a subsidiary of National Bank of Canada, which specializes in hedge fund managed accounts.
They have formed a joint venture offering hedge fund managed accounts, a vehicle of choice for retail and institutional investors who wish to invest in hedge funds while controlling operational and market risks. National Bank of Canada and BNP Paribas intend to make Innocap the leading provider of managed accounts for investors worldwide.
Innocap, which advises on over $2 billion in hedge fund assets, provides active daily monitoring of alternative funds with complete transparency on the underlying positions and on the setting of adequate risk limits and investment guidelines. Additionally, it monitors operational risk, and advises on, along with third party service providers, all the key operations for the hedge funds.
“I'm delighted by the creation of this partnership,” said Yann Gerardin, Global Head of BNP Paribas Equities and Derivatives. “Innocap offers a powerful platform with full-fledged high-tech risk monitoring, control, liquidity and transparency to investors. These capabilities will enable us to create a new generation of structured products, which we expect will have broad appeal to an international client base.”
This joint venture will allow BNP Paribas, recently awarded “Equity Derivatives House of the Year” by Risk Magazine, to strengthen its capabilities in structuring fund derivatives products, while completing its global alternative fund offering.
Martin Gagnon and Denis Parisien, co-CEOs of Innocap added: “BNP Paribas and National Bank of Canada are complementary, well-established institutions sharing the same business vision and ambition. We are confident in this joint venture and look forward to its success.”
Innocap is the end result of 11 years of investments in hedge fund strategies for the National Bank of Canada.
They have formed a joint venture offering hedge fund managed accounts, a vehicle of choice for retail and institutional investors who wish to invest in hedge funds while controlling operational and market risks. National Bank of Canada and BNP Paribas intend to make Innocap the leading provider of managed accounts for investors worldwide.
Innocap, which advises on over $2 billion in hedge fund assets, provides active daily monitoring of alternative funds with complete transparency on the underlying positions and on the setting of adequate risk limits and investment guidelines. Additionally, it monitors operational risk, and advises on, along with third party service providers, all the key operations for the hedge funds.
“I'm delighted by the creation of this partnership,” said Yann Gerardin, Global Head of BNP Paribas Equities and Derivatives. “Innocap offers a powerful platform with full-fledged high-tech risk monitoring, control, liquidity and transparency to investors. These capabilities will enable us to create a new generation of structured products, which we expect will have broad appeal to an international client base.”
This joint venture will allow BNP Paribas, recently awarded “Equity Derivatives House of the Year” by Risk Magazine, to strengthen its capabilities in structuring fund derivatives products, while completing its global alternative fund offering.
Martin Gagnon and Denis Parisien, co-CEOs of Innocap added: “BNP Paribas and National Bank of Canada are complementary, well-established institutions sharing the same business vision and ambition. We are confident in this joint venture and look forward to its success.”
Innocap is the end result of 11 years of investments in hedge fund strategies for the National Bank of Canada.
2 May 2007
Survey Of Affluent Americans Shows US Investors Looking Overseas
The U.S. Trust Survey Of Affluent Americans polled the top tier of wealthiest Americans about their economic outlook, investment behavior, wealth management, philanthropy and intergenerational wealth issues.
A majority of the wealthy people surveyed believe hedge funds are good vehicles to provide strong returns and hedge market risks. Still, about three-quarters of this group say a good hedge fund is difficult to find and just as difficult to investigate.
However, those surveyed believe that the U.S. stock market is becoming riskier, and many are shifting to international equities. Many wealthy people expect to get bigger gains overseas than they do here in the U.S., with an expected average annual return of 9.66% in international equities versus 8.85% in the U.S. markets.
The Survey Of Affluent Americans constitutes of Americans with an investable net worth greater than $5 million, not including primary residence. In addition, included in this study is a special sub-sample of ultra high net worth Americans with total assets of $25 million or more.
In the report, the U.S. Trust says 74% of wealthy people believe that the budget deficit will affect the economy over the long term. This, they believe, will spill into the international arena as well, and leads them to worry about the U.S.'s role in international finance. With recent market events in China setting off a global ripple, as well as dollar lows, there is certainly ample precedent for their concerns.
And the survey indicates that these concerns aren't limited to the near term. Most wealthy people say that the next generation will have a more difficult time financially. Seventy-two percent of respondents worry that environmental issues will require more government spending and that taxes will rise significantly over the next few years. As well, they believe high taxes will reduce the value of their estates.
A majority of the wealthy people surveyed believe hedge funds are good vehicles to provide strong returns and hedge market risks. Still, about three-quarters of this group say a good hedge fund is difficult to find and just as difficult to investigate.
However, those surveyed believe that the U.S. stock market is becoming riskier, and many are shifting to international equities. Many wealthy people expect to get bigger gains overseas than they do here in the U.S., with an expected average annual return of 9.66% in international equities versus 8.85% in the U.S. markets.
The Survey Of Affluent Americans constitutes of Americans with an investable net worth greater than $5 million, not including primary residence. In addition, included in this study is a special sub-sample of ultra high net worth Americans with total assets of $25 million or more.
In the report, the U.S. Trust says 74% of wealthy people believe that the budget deficit will affect the economy over the long term. This, they believe, will spill into the international arena as well, and leads them to worry about the U.S.'s role in international finance. With recent market events in China setting off a global ripple, as well as dollar lows, there is certainly ample precedent for their concerns.
And the survey indicates that these concerns aren't limited to the near term. Most wealthy people say that the next generation will have a more difficult time financially. Seventy-two percent of respondents worry that environmental issues will require more government spending and that taxes will rise significantly over the next few years. As well, they believe high taxes will reduce the value of their estates.
Fauchier Partners Launches Special Situations Fund Of Hedge Funds
Fauchier Partners announced the launch of the Jubilee Special Situations Fund (JSSF), which will provide investors with returns more commonly associated with longer term and less liquid investments. JSSF was launched on 1 April with approximately $50 million committed. It will initially be open for investment until June 2007.
The fund of hedge funds has been designed as a vehicle for investors who are able to commit funds for longer periods of time and has a target return of LIBOR + 8%. The London Interbank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow US dollars in the London money market. Like the US treasury the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Its portfolio consists of hedge funds investing in the debt and equity of private and publicly-listed companies, with a focus on distressed debt, direct lending and structured public and private equity. The balance will be invested in more traditional value-based investments.
Fauchier Partners, founded in 1994, is a specialist London-based firm, which manages a variety of funds of hedge funds and also advises a number of listed closed-end funds of hedge fund vehicles. It has the equivalent of approximately $4.7 billion under management.
The fund of hedge funds has been designed as a vehicle for investors who are able to commit funds for longer periods of time and has a target return of LIBOR + 8%. The London Interbank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow US dollars in the London money market. Like the US treasury the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Its portfolio consists of hedge funds investing in the debt and equity of private and publicly-listed companies, with a focus on distressed debt, direct lending and structured public and private equity. The balance will be invested in more traditional value-based investments.
Fauchier Partners, founded in 1994, is a specialist London-based firm, which manages a variety of funds of hedge funds and also advises a number of listed closed-end funds of hedge fund vehicles. It has the equivalent of approximately $4.7 billion under management.
1 May 2007
$99 Billion Company Hires Hedge Fund Manager
Nikko Asset Management Co., Ltd. announced the appointment of hedge fund manager, Thomas Juterbock, as Senior Portfolio Manager at Nikko Alternative Asset Management Inc., a New York-based subsidiary of Nikko AM Tokyo.
Juterbock said, "I am thrilled to join the Nikko AM team. With the line between 'traditional' and 'alternative' investment blurring and with the shifting demographics of investment flows, international asset management is at a very interesting crossroads. I see Nikko AM as uniquely positioned to capitalize upon these trends and I look forward to working with the Nikko AM team to help realize the full potential of this new opportunity set."
Juterbock will be a member of Nikko AM's Global Investment Committee and will report to Masayuki Ishihara, Global Head of Fixed Income. Prior to joining Nikko AM, Juterbock acted as founder, principal owner, CEO and CIO of Fairstream Capital hedge fund management group. Juterbock has over 20 years of experience in trading and risk management at Morgan Stanley, where he was a Managing Director from January 1990 to May 2005.
At Nikko AM, Juterbock and his Fairstream team of six will seek ways to employ Fairstream's global macro investment process to the broader array of Nikko AM products, while helping to expand Nikko AM's product offerings worldwide.
Nikko AM is a leading asset management group headquartered in Japan. Established over 45 years ago, the company has $99.1 billion in assets under management, its investment trusts are distributed through a network of approximately 200 partner securities companies and banks. Nikko AM employs over 550 people in Tokyo, New York, London and Singapore.
Juterbock said, "I am thrilled to join the Nikko AM team. With the line between 'traditional' and 'alternative' investment blurring and with the shifting demographics of investment flows, international asset management is at a very interesting crossroads. I see Nikko AM as uniquely positioned to capitalize upon these trends and I look forward to working with the Nikko AM team to help realize the full potential of this new opportunity set."
Juterbock will be a member of Nikko AM's Global Investment Committee and will report to Masayuki Ishihara, Global Head of Fixed Income. Prior to joining Nikko AM, Juterbock acted as founder, principal owner, CEO and CIO of Fairstream Capital hedge fund management group. Juterbock has over 20 years of experience in trading and risk management at Morgan Stanley, where he was a Managing Director from January 1990 to May 2005.
At Nikko AM, Juterbock and his Fairstream team of six will seek ways to employ Fairstream's global macro investment process to the broader array of Nikko AM products, while helping to expand Nikko AM's product offerings worldwide.
Nikko AM is a leading asset management group headquartered in Japan. Established over 45 years ago, the company has $99.1 billion in assets under management, its investment trusts are distributed through a network of approximately 200 partner securities companies and banks. Nikko AM employs over 550 people in Tokyo, New York, London and Singapore.
100 Women in Hedge Funds Awards
100 Women in Hedge Funds is today presenting their 5th Anniversary event, Raising Capital: Keys to success and new trends in the industry, in Stamford, CT. The event is hosted by UBS Investment Bank and All Bar None.
The speaker, Bill Brown, UBS Head and Chief Investment Officer, will discuss the role of raising capital for hedge funds and the challenges in the current environment. The invited speakers have experience in successfully raising capital for hedge funds and knowledge of the market.
100 Women in Hedge Funds offers events in numerous cities across the globe. On May 2 they are hosting an Inaugural Networking Event in Geneva and also coming up is the inaugural 100 Women in Hedge Funds London Gala, which will be held June 13, 2007 at the Royal Courts of Justice, London for benefit of The Prince's Trust.
Hedge fund managers Gay Huey Evans of Tribeca Global Management, and Michael Hintze of CQS, will be honored the Gala.Huey Evans will receive the 100 Women in Hedge Funds' European Industry Leadership award. Huey Evans is President of Tribeca Global Management (Europe), Citi's Alternative Investment's hedge fund platform. She has helped build out Tribeca into a premier multi-strategy hedge fund platform within Citigroup.
Hintze, who is Founder and Chief Executive Officer of CQS, will receive the 100 Women in Hedge Funds' European Effecting Change award for his philanthropic activity. Hintze established CQS in 1999 and the firm, one of the largest hedge funds in Europe, now manages over US$6 billion. Over the last several years, the Hintze Family Charitable Foundation has made awards to educational and health programs, and the Arts, including The Prince's Trust, The Prince's Foundation, Trinity Hospice, The Evelina Children's Trust, the Victoria and Albert Museum's Sculpture Galleries, the Vatican Museums' Pauline Chapel and the University of Sydney.
The speaker, Bill Brown, UBS Head and Chief Investment Officer, will discuss the role of raising capital for hedge funds and the challenges in the current environment. The invited speakers have experience in successfully raising capital for hedge funds and knowledge of the market.
100 Women in Hedge Funds offers events in numerous cities across the globe. On May 2 they are hosting an Inaugural Networking Event in Geneva and also coming up is the inaugural 100 Women in Hedge Funds London Gala, which will be held June 13, 2007 at the Royal Courts of Justice, London for benefit of The Prince's Trust.
Hedge fund managers Gay Huey Evans of Tribeca Global Management, and Michael Hintze of CQS, will be honored the Gala.Huey Evans will receive the 100 Women in Hedge Funds' European Industry Leadership award. Huey Evans is President of Tribeca Global Management (Europe), Citi's Alternative Investment's hedge fund platform. She has helped build out Tribeca into a premier multi-strategy hedge fund platform within Citigroup.
Hintze, who is Founder and Chief Executive Officer of CQS, will receive the 100 Women in Hedge Funds' European Effecting Change award for his philanthropic activity. Hintze established CQS in 1999 and the firm, one of the largest hedge funds in Europe, now manages over US$6 billion. Over the last several years, the Hintze Family Charitable Foundation has made awards to educational and health programs, and the Arts, including The Prince's Trust, The Prince's Foundation, Trinity Hospice, The Evelina Children's Trust, the Victoria and Albert Museum's Sculpture Galleries, the Vatican Museums' Pauline Chapel and the University of Sydney.
30 Apr 2007
Sal. Oppenheim To Launch Spin-Off Hedge Fund
Sal. Oppenheim Jr. & Cie, one of Europe's largest private banks is moving towards alternative investments and hedge funds. Oppenheim said it wants to spin off a hedge fund from its proprietary trading book. The bank will seed the hedge fund with its own cash but expects to raise as much as €500 million ($680 million).
Oppenheim already has launched the Figaro Currency Fund, a Dublin domiciled hedge fund, as another example of success. It combines the bank's currency expertise with a modern absolute-return approach. The fund aims to achieve stable above-average returns (7% - 10% p.a.) with low correlation to stocks and bonds. The Investment process of the hedge fund is a disciplined analytical approach combining macro-economic analysis, geopolitical trends, technical indicators and general market sentiment towards investing in currencies.
Headquartered in the bank's offices in Zurich, the new hedge fund will will begin trading in the third quarter, taking long and short positions in small to mid size companies, investing almost two-thirds of the book in firms from German-speaking countries, it said. The rest will be invested primarily in other Western European countries.
Oppenheim today is one of Europe‘s leading private banks. Since the company‘s founding in 1789, the Cologne private bankers have been open to new developments in industry, business, and new financial models.
Oppenheim already has launched the Figaro Currency Fund, a Dublin domiciled hedge fund, as another example of success. It combines the bank's currency expertise with a modern absolute-return approach. The fund aims to achieve stable above-average returns (7% - 10% p.a.) with low correlation to stocks and bonds. The Investment process of the hedge fund is a disciplined analytical approach combining macro-economic analysis, geopolitical trends, technical indicators and general market sentiment towards investing in currencies.
Headquartered in the bank's offices in Zurich, the new hedge fund will will begin trading in the third quarter, taking long and short positions in small to mid size companies, investing almost two-thirds of the book in firms from German-speaking countries, it said. The rest will be invested primarily in other Western European countries.
Oppenheim today is one of Europe‘s leading private banks. Since the company‘s founding in 1789, the Cologne private bankers have been open to new developments in industry, business, and new financial models.
Dresdner Kleinwort Announces New Head for US based Hedge Funds
Dresdner Kleinwort, the investment banking division of Dresdner Bank AG announced the appointment of Chris Baildon as Head of Equities Distribution for US based Hedge Funds. Baildon joins as a Managing Director and will report to Mark Small, Head of Equities in the US and Martin Newson, Head of the Hedge Fund Solutions Group based in London.
Baildon previously worked at UBS where he specialized in the coverage of hedge funds as Head of European Sales Trading. Martin Newson, Head of Hedge Fund Solutions said, "Chris is an important addition to our team and the ongoing development of our of hedge fund offering. The European markets are extremely significant to US based hedge fund clients, perhaps now more than ever, and the appointment of Chris further improves our ability to offer the funds the very best levels of servicing."
According to reports, Dresdner Kleinwort plans to double the number of hedge fund specialists in its investment bank over the next three years, aiming to increase hedge fund sales from 10-15% of fees and commissions to 25%.
The bank currently employs close to 50 staff focused on hedge funds across its corporate finance, equities, fixed income, currencies and derivatives divisions, and plans to double this to 100. Newson, hired last November to set up the bank’s hedge fund solutions group, said the new appointments would be spread over three years.
Baildon previously worked at UBS where he specialized in the coverage of hedge funds as Head of European Sales Trading. Martin Newson, Head of Hedge Fund Solutions said, "Chris is an important addition to our team and the ongoing development of our of hedge fund offering. The European markets are extremely significant to US based hedge fund clients, perhaps now more than ever, and the appointment of Chris further improves our ability to offer the funds the very best levels of servicing."
According to reports, Dresdner Kleinwort plans to double the number of hedge fund specialists in its investment bank over the next three years, aiming to increase hedge fund sales from 10-15% of fees and commissions to 25%.
The bank currently employs close to 50 staff focused on hedge funds across its corporate finance, equities, fixed income, currencies and derivatives divisions, and plans to double this to 100. Newson, hired last November to set up the bank’s hedge fund solutions group, said the new appointments would be spread over three years.
27 Apr 2007
Hedge Fund Ritchie Capital To Sell Flagship Fund
Hedge Fund Ritchie Capital Management, as part of a liquidation plan, is selling a significant portion of its assets in its Multi-Strategy Fund for $1 billion to New York City-based Reservoir Capital Group.
Ritchie Capital, which oversees about $2.8 billion including borrowed money, will liquidate its Multistrategy Global Fund and return cash to investors. The company told investors that the Ritchie Capital Management flagship multi-strategy hedge fund had about $730 million in assets in mid-2006.
Thane Ritchie, founder of Ritchie Capital said in a statement, "We are pleased that investors have approved this transaction as it is a significant first step in meeting our stated objectives for the Multi-Strategy Fund - preserving the value of its assets and returning capital to redeeming investors,.....However, we recognize that we need to continue to work diligently and intelligently to completely fulfill our commitment to all our investors."
After facing an extended period of under performance and investor demands for capital returns, the hedge fund has been in exclusive talks with Reservoir and Coller for several months to buy the flagship fund, sources have said. The sale is the first of what Ritchie Capital Management expects will be a series of transactions for the remainder of the fund’s assets. At the end of 2004, Ritchie lost more than 2% of its flagship fund and decided to alter it to a traditional, more liquid one to one that incorporates private equity and longer-term investments.
The deal with Reservoir has been approved by Ritchie investors launching a new fund called Rhone Holdings, L.P., which will purchase the assets in part with capital invested by Reservoir funds. Ritchie will manage this new entity, the firm explained in a statement.
Reservoir Capital is a private investment firm with about $3 billion under management. Ritchie Capital Management is headquartered in Geneva, Illinois with offices in New York, Chicago, London, Bermuda, Hong Kong, and Menlo Park, California.
Ritchie Capital, which oversees about $2.8 billion including borrowed money, will liquidate its Multistrategy Global Fund and return cash to investors. The company told investors that the Ritchie Capital Management flagship multi-strategy hedge fund had about $730 million in assets in mid-2006.
Thane Ritchie, founder of Ritchie Capital said in a statement, "We are pleased that investors have approved this transaction as it is a significant first step in meeting our stated objectives for the Multi-Strategy Fund - preserving the value of its assets and returning capital to redeeming investors,.....However, we recognize that we need to continue to work diligently and intelligently to completely fulfill our commitment to all our investors."
After facing an extended period of under performance and investor demands for capital returns, the hedge fund has been in exclusive talks with Reservoir and Coller for several months to buy the flagship fund, sources have said. The sale is the first of what Ritchie Capital Management expects will be a series of transactions for the remainder of the fund’s assets. At the end of 2004, Ritchie lost more than 2% of its flagship fund and decided to alter it to a traditional, more liquid one to one that incorporates private equity and longer-term investments.
The deal with Reservoir has been approved by Ritchie investors launching a new fund called Rhone Holdings, L.P., which will purchase the assets in part with capital invested by Reservoir funds. Ritchie will manage this new entity, the firm explained in a statement.
Reservoir Capital is a private investment firm with about $3 billion under management. Ritchie Capital Management is headquartered in Geneva, Illinois with offices in New York, Chicago, London, Bermuda, Hong Kong, and Menlo Park, California.
26 Apr 2007
VanthagePoint Joins With G Squared to Launch Fund Of Funds
G Squared Group Asset Management has teamed up with hedge fund services provider VanthedgePoint Group LL by purchasing a 10% minority stake and is launching a fund of hedge fund comprised solely of its emerging manager clients.
“By partnering with VanthedgePoint our idea is to greatly reduce the number one risk regarding investments in emerging managers: operational risk,” said Gualtiero Giori, managing partner of G Squared. The new vehicle, White Hill Fund, will invest exclusively in early-stage emerging hedge fund clients of VanthedgePoint Securities, the broker/dealer arm of VanthedgePoint Group. The fund will commence operations on May 1.
VanthedgePoint serves as a prime broker dealer, providing stock trading clearance and loans to small to midsize long/short equity hedge funds, with assets of over $1 billion, launching a fund of emerging hedge funds makes sense because larger pension funds typically have restrictions on investing more than 10% of their capital in any one fund.
"This allows us to offer our clients not only the potential outperformance typically demonstrated by emerging managers, but also a structure whereby they can track new talent while avoiding concentration risk and minimizing non-investment due-diligence work." said Giori.
“By partnering with VanthedgePoint our idea is to greatly reduce the number one risk regarding investments in emerging managers: operational risk,” said Gualtiero Giori, managing partner of G Squared. The new vehicle, White Hill Fund, will invest exclusively in early-stage emerging hedge fund clients of VanthedgePoint Securities, the broker/dealer arm of VanthedgePoint Group. The fund will commence operations on May 1.
VanthedgePoint serves as a prime broker dealer, providing stock trading clearance and loans to small to midsize long/short equity hedge funds, with assets of over $1 billion, launching a fund of emerging hedge funds makes sense because larger pension funds typically have restrictions on investing more than 10% of their capital in any one fund.
"This allows us to offer our clients not only the potential outperformance typically demonstrated by emerging managers, but also a structure whereby they can track new talent while avoiding concentration risk and minimizing non-investment due-diligence work." said Giori.
New Jersey To Invest in Hedge Funds of Funds
According to a due diligence memorandum presented to the New Jersey State Investment Council by director William Clark, NJ has a proposed $100 million investment in each of two Blackstone funds of funds strategies, Pacific Opportunities Strategy and an Emerging Markets Strategy to handle new hedge fund and private equity allocations.
The NJ pension system is also aiming at allocating a total of $625 million to two funds of hedge funds and three single-strategy managers, and a total of $325 million to four private equity funds, according to a due diligence memo penned by director William Clark to the system’s investment council.
Also in the investment proposal, NJ is looking to make a $150 million commitment to a fund of funds to be managed by Protégé Partners, the New York-based firm currently manages $2.2 billion and invests in smaller, niche funds and also seeds managers. The pension system is also allocating $150 million to Farallon Capital Institutional Partners, a multi-strategy fund, and $50 million to Omega Overseas Partners Ltd Class B, a long/short equity fund.
New Jersey’s proposed direct investments in single-strategy managers include a $75 million commitment to the Ascend Partners Fund II, which is a 1.5x levered version of the firm’s fundamental equity long/short strategy.
In private equity, NJ is making a $100 million commitment to Avenue Special Situations Fund V and a $50 million commitment to KPS Special Situations Fund III. Both funds focus on U.S. stressed and distressed opportunities. Finally, a $100 million commitment is being made to MatlinPatterson Global Opportunities Partners, a global distressed fund, and a $75 million commitment to Thomas H. Lee Equity Partners VI, a growth-oriented buyout fund.
The NJ pension system is also aiming at allocating a total of $625 million to two funds of hedge funds and three single-strategy managers, and a total of $325 million to four private equity funds, according to a due diligence memo penned by director William Clark to the system’s investment council.
Also in the investment proposal, NJ is looking to make a $150 million commitment to a fund of funds to be managed by Protégé Partners, the New York-based firm currently manages $2.2 billion and invests in smaller, niche funds and also seeds managers. The pension system is also allocating $150 million to Farallon Capital Institutional Partners, a multi-strategy fund, and $50 million to Omega Overseas Partners Ltd Class B, a long/short equity fund.
New Jersey’s proposed direct investments in single-strategy managers include a $75 million commitment to the Ascend Partners Fund II, which is a 1.5x levered version of the firm’s fundamental equity long/short strategy.
In private equity, NJ is making a $100 million commitment to Avenue Special Situations Fund V and a $50 million commitment to KPS Special Situations Fund III. Both funds focus on U.S. stressed and distressed opportunities. Finally, a $100 million commitment is being made to MatlinPatterson Global Opportunities Partners, a global distressed fund, and a $75 million commitment to Thomas H. Lee Equity Partners VI, a growth-oriented buyout fund.
25 Apr 2007
Hedge Funds & The Uranium "Arms Race"
Corrected on the 26th of April
Several hedge funds have been buying largely into the processed uranium market, causing most of the new demand for uranium and helping drive up the price more than fourfold within the past year.
Some hedge funds that have been reported as buyers are Adit Capital, who according to reports, bought up millions of pounds for as little as $20 per pound. Citadel Investment Group assumed control of 2.3 millions pounds through its stake in an IPO, and GLG Partners and Fortress Investment Group have set up teams to begin trading uranium.
There is no futures market for uranium and a declining supply of the product, coupled with an increase of outside investors, such as hedge funds, has led the Nuclear Energy Institute to suggest allowing only end users of uranium to purchase it. It is mined by only by a few companies such as Canada's Cameco Corp.
Uranium Participation Corporation is a closed end mutual fund that buys and holds uranium, making it one of the only ways for an average investor to buy directly into uranium. Its documents can be found on SEDAR and regarding transparency, the fund publishes its NAV every month on its website, disclosing what it has paid for uranium. It is exchange traded on the Toronto Stock Exchange by the symbol is U. There are also warrents on U for those who are inclined to more aggressive positioning.
A newly created uranium futures contract will begin trading on the Nymex electronic system on May 7, according to their VP of marketing Randy Warsager. Most of the Nymex products are traded on the Chicago Mercantile Exchange Globex system under a joint agreement between the two markets.
The Wall Street Journal has called hedge funds' involvement in the market “a new type of nuclear-arms race.” Hedge fund and other investors hold around 20 mm lbs of uranium equivalent, according to David Hard of NukemInc.com, that's about 20% of one year's mine production.
Several hedge funds have been buying largely into the processed uranium market, causing most of the new demand for uranium and helping drive up the price more than fourfold within the past year.
Some hedge funds that have been reported as buyers are Adit Capital, who according to reports, bought up millions of pounds for as little as $20 per pound. Citadel Investment Group assumed control of 2.3 millions pounds through its stake in an IPO, and GLG Partners and Fortress Investment Group have set up teams to begin trading uranium.
There is no futures market for uranium and a declining supply of the product, coupled with an increase of outside investors, such as hedge funds, has led the Nuclear Energy Institute to suggest allowing only end users of uranium to purchase it. It is mined by only by a few companies such as Canada's Cameco Corp.
Uranium Participation Corporation is a closed end mutual fund that buys and holds uranium, making it one of the only ways for an average investor to buy directly into uranium. Its documents can be found on SEDAR and regarding transparency, the fund publishes its NAV every month on its website, disclosing what it has paid for uranium. It is exchange traded on the Toronto Stock Exchange by the symbol is U. There are also warrents on U for those who are inclined to more aggressive positioning.
A newly created uranium futures contract will begin trading on the Nymex electronic system on May 7, according to their VP of marketing Randy Warsager. Most of the Nymex products are traded on the Chicago Mercantile Exchange Globex system under a joint agreement between the two markets.
The Wall Street Journal has called hedge funds' involvement in the market “a new type of nuclear-arms race.” Hedge fund and other investors hold around 20 mm lbs of uranium equivalent, according to David Hard of NukemInc.com, that's about 20% of one year's mine production.
24 Apr 2007
UK Treasury Examing Pooling EU Hedge Fund Information
Speaking at a Financial Services Authority conference, UK Treasury minister Edward Balls said he planned to seek the views of other European countries about pooling information and working together on European international regulatory issues concerning hedge funds.
This could signal that the British government is again taking a closer look at hedge fund regulation। He said in his speech, "The first thing to stress is the consensus over the positive role that hedge funds play - providing liquidity, helping markets price assets more accurately and driving financial innovation."
But, "authorities should be vigilant regarding any of the potential risks posed by hedge funds. As the location for around 90% of the EU's hedge fund management business, the UK - and in particular the FSA - has thought hard about getting the regulatory approach to hedge funds right."
Balls said a six-monthly survey of banks' exposures to hedge funds through derivatives, secured financing and prime brokerage, could be enhanced if other regulators shared information about their own banks' exposures to the hedge fund industry. "Following discussion with the FSA, we believe that the quality of prudential supervision of hedge fund activity would be enhanced if there were greater co-operation between the key regulators," he said.
The Treasury minister said he recognized that some experts feared hedge funds were taking increasing risks to generate high returns, but he rejected a more heavy-handed approach to regulation. He also confirmed that the government is looking at issuing shariah-compliant debt, in a move to position London as a global center for Islamic finance and build bridges with the Muslim community.
This could signal that the British government is again taking a closer look at hedge fund regulation। He said in his speech, "The first thing to stress is the consensus over the positive role that hedge funds play - providing liquidity, helping markets price assets more accurately and driving financial innovation."
But, "authorities should be vigilant regarding any of the potential risks posed by hedge funds. As the location for around 90% of the EU's hedge fund management business, the UK - and in particular the FSA - has thought hard about getting the regulatory approach to hedge funds right."
Balls said a six-monthly survey of banks' exposures to hedge funds through derivatives, secured financing and prime brokerage, could be enhanced if other regulators shared information about their own banks' exposures to the hedge fund industry. "Following discussion with the FSA, we believe that the quality of prudential supervision of hedge fund activity would be enhanced if there were greater co-operation between the key regulators," he said.
The Treasury minister said he recognized that some experts feared hedge funds were taking increasing risks to generate high returns, but he rejected a more heavy-handed approach to regulation. He also confirmed that the government is looking at issuing shariah-compliant debt, in a move to position London as a global center for Islamic finance and build bridges with the Muslim community.
$1.1 Billion Hedge Fund Deal Goes to Northern Trust
Chicago based Northern Trust has been selected to provide fund administration services to the 816 million Euro (approximately $1.1 billion) hedge fund, BH Macro Limited.
The BH Macro Limited fund, based on the British isle of Guernsey, is one of the first single strategy hedge funds to obtain a secondary listing on the London Stock Exchange under the recently revised listing rules in Chapter 14 of the Financial Services Authority regulations. The single strategy hedge fund will invest in the Brevan Howard Master Fund, a $12 billion hedge fund with a predominant exposure to global fixed income and foreign exchange markets.
Sue Baines of Northern Trust said "We have a long history of servicing more traditional, closed-ended funds with listings in a variety of locations, in addition to being a leading administrator of alternative assets. This combination of expertise has allowed us to support many asset managers taking advantage of the increasing flexibility to list a range of alternative funds, in a variety of domiciles, whether these are private equity vehicles on Euronext, or hedge funds and funds of hedge funds in London. We are delighted to be working with Brevan Howard and look forward to continuing to grow our hedge fund and fund of funds client base."
With $3.8 trillion in assets under management, Northern Trust Corporation is a provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide.
The BH Macro Limited fund, based on the British isle of Guernsey, is one of the first single strategy hedge funds to obtain a secondary listing on the London Stock Exchange under the recently revised listing rules in Chapter 14 of the Financial Services Authority regulations. The single strategy hedge fund will invest in the Brevan Howard Master Fund, a $12 billion hedge fund with a predominant exposure to global fixed income and foreign exchange markets.
Sue Baines of Northern Trust said "We have a long history of servicing more traditional, closed-ended funds with listings in a variety of locations, in addition to being a leading administrator of alternative assets. This combination of expertise has allowed us to support many asset managers taking advantage of the increasing flexibility to list a range of alternative funds, in a variety of domiciles, whether these are private equity vehicles on Euronext, or hedge funds and funds of hedge funds in London. We are delighted to be working with Brevan Howard and look forward to continuing to grow our hedge fund and fund of funds client base."
With $3.8 trillion in assets under management, Northern Trust Corporation is a provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide.
23 Apr 2007
Hedge Fund ''Landmine'' Conference
Thompson Hine LLP, a leading national business law firm, will present a seminar to help hedge fund organizers, managers and advisors identify and avoid common pitfalls. “Fiduciary Landmines in Organizing and Operating Hedge Funds” is a free seminar open to hedge fund industry professionals and will be held at the Palmer House Hilton in Chicago on May 17 from noon to 4:15 p.m. CDT.
Hedge Fund Innovator Joel Press of Morgan Stanley Will Deliver Keynote: “Emerging Trends in a Newly Scrutinized Industry”
The seminar focuses on how to identify and resolve fiduciary issues in structuring and operating hedge funds. The program is structured to provide valuable insight into the obligations of alternative asset managers. It is geared to hedge fund managers, compliance professionals and vendors who provide services to the hedge fund industry.
In addition to Joel Press of Morgan Stanley, other speakers and panelists will include Howard Altman, Co-Managing Principal at Rothstein Kass, a leading accounting firm for hedge funds; Scott Richter, Managing Director and Associate General Counsel, JPMorgan; Sam Weiser, former Managing Director, Citigroup; Douglas Squassoni, Vice President and Senior Counsel, Mellon Bank; Aaron Vermut, Chief Operating Officer, Merlin Securities; and Thomas Feher, Partner, Thompson Hine.
“The hedge fund industry is at a crossroads, and confusion about the potential for increased oversight is making it an ongoing challenge for the industry to anticipate emerging issues,” said Richard Heller, a partner in the investment management practice at Thompson Hine in New York, who is organizing the conference. “This seminar will help put things into perspective for current hedge fund managers, as well as those considering establishing alternative investment funds. Fiduciary landmines abound. Knowing where and how to deal with them is key.”
Conference topics include:
* “Issues of Interest to Alternative Asset Fund Managers”
* Luncheon Keynote: “Emerging Trends in a Newly Scrutinized Industry”
* “Issues to Consider When Structuring a Hedge Fund and Soliciting Investors”
* “Fiduciary Aspects of Running a Hedge Fund”
While hedge funds are no longer required to register with the SEC, the rules that govern how brokers use their “soft dollar” commissions are designed to prevent abuses, such as payment for meals, rent, travel and other expenses not directly attributable to investment decisions. Additionally, the SEC is reviewing a change to the accredited investor rule which may have implications for the hedge fund industry.
The seminar is free and open to hedge fund industry professionals. Registry online by May 7.
Thompson Hine’s May 17 hedge fund landmine seminar will be followed at 5:30 p.m. by The Fifth Annual “Open Your Heart to Children” benefit held by the Chicago chapter of Hedge Funds Care at the Millennium Park Rooftop Terrace.
Hedge Fund Innovator Joel Press of Morgan Stanley Will Deliver Keynote: “Emerging Trends in a Newly Scrutinized Industry”
The seminar focuses on how to identify and resolve fiduciary issues in structuring and operating hedge funds. The program is structured to provide valuable insight into the obligations of alternative asset managers. It is geared to hedge fund managers, compliance professionals and vendors who provide services to the hedge fund industry.
In addition to Joel Press of Morgan Stanley, other speakers and panelists will include Howard Altman, Co-Managing Principal at Rothstein Kass, a leading accounting firm for hedge funds; Scott Richter, Managing Director and Associate General Counsel, JPMorgan; Sam Weiser, former Managing Director, Citigroup; Douglas Squassoni, Vice President and Senior Counsel, Mellon Bank; Aaron Vermut, Chief Operating Officer, Merlin Securities; and Thomas Feher, Partner, Thompson Hine.
“The hedge fund industry is at a crossroads, and confusion about the potential for increased oversight is making it an ongoing challenge for the industry to anticipate emerging issues,” said Richard Heller, a partner in the investment management practice at Thompson Hine in New York, who is organizing the conference. “This seminar will help put things into perspective for current hedge fund managers, as well as those considering establishing alternative investment funds. Fiduciary landmines abound. Knowing where and how to deal with them is key.”
Conference topics include:
* “Issues of Interest to Alternative Asset Fund Managers”
* Luncheon Keynote: “Emerging Trends in a Newly Scrutinized Industry”
* “Issues to Consider When Structuring a Hedge Fund and Soliciting Investors”
* “Fiduciary Aspects of Running a Hedge Fund”
While hedge funds are no longer required to register with the SEC, the rules that govern how brokers use their “soft dollar” commissions are designed to prevent abuses, such as payment for meals, rent, travel and other expenses not directly attributable to investment decisions. Additionally, the SEC is reviewing a change to the accredited investor rule which may have implications for the hedge fund industry.
The seminar is free and open to hedge fund industry professionals. Registry online by May 7.
Thompson Hine’s May 17 hedge fund landmine seminar will be followed at 5:30 p.m. by The Fifth Annual “Open Your Heart to Children” benefit held by the Chicago chapter of Hedge Funds Care at the Millennium Park Rooftop Terrace.
Court Of Baltimore Rules Against Costa Brava Hedge Fund
The Circuit Court for Baltimore City has, for the third time in just over a year, denied legal motions filed against Telos Corporation by Costa Brava Partnership III, L.P., a Boston-based hedge fund. Costa Brava previously had two motions for receivership dismissed or denied, and a motion for preliminary injunction regarding the sale of assets dismissed.
John B. Wood, CEO of Telos said, “As we said in our memorandum to the court, Costa Brava clearly refuses to take no for an answer. Not satisfied that their stock value has increased by nearly 200% in less than two years, Costa Brava wants to litigate even higher returns, an act that could have detrimental effects on our other shareholders and our employees.”
The activist hedge fund was demanding that Telos be prohibited from pursuing or closing any sale of assets until after May 31, 2007. That is the date that Costa Brava hopes to elect two new Class D directors of their choosing to the Telos Board of Directors.
Costa Brava and Telos are scheduled to meet on May 31 to discuss the election of two Class D directors. Costa Brava was previously given an opportunity to elect Class D directors, but failed to pursue that opportunity. The Court recognized Costa Brava’s “earlier reluctance” to fill the directorships and found that the Telos was “not in violation of any statutory, charter or by-law requirements with respect to the pending election of those directors.”
The same Court has in the past has addressed several claims by the activist hedge fund, including a recent opinion regarding Costa Brava’s demand that Telos be placed into receivership.
Wood said that Telos, whose stock over the past five years has outperformed the NASDAQ composite by 100%, “is committed to treating all shareholders equitably and continuing to focus on our role as a trusted provider of security solutions to U.S. government agencies and the Department of Defense.”
John B. Wood, CEO of Telos said, “As we said in our memorandum to the court, Costa Brava clearly refuses to take no for an answer. Not satisfied that their stock value has increased by nearly 200% in less than two years, Costa Brava wants to litigate even higher returns, an act that could have detrimental effects on our other shareholders and our employees.”
The activist hedge fund was demanding that Telos be prohibited from pursuing or closing any sale of assets until after May 31, 2007. That is the date that Costa Brava hopes to elect two new Class D directors of their choosing to the Telos Board of Directors.
Costa Brava and Telos are scheduled to meet on May 31 to discuss the election of two Class D directors. Costa Brava was previously given an opportunity to elect Class D directors, but failed to pursue that opportunity. The Court recognized Costa Brava’s “earlier reluctance” to fill the directorships and found that the Telos was “not in violation of any statutory, charter or by-law requirements with respect to the pending election of those directors.”
The same Court has in the past has addressed several claims by the activist hedge fund, including a recent opinion regarding Costa Brava’s demand that Telos be placed into receivership.
Wood said that Telos, whose stock over the past five years has outperformed the NASDAQ composite by 100%, “is committed to treating all shareholders equitably and continuing to focus on our role as a trusted provider of security solutions to U.S. government agencies and the Department of Defense.”
$91.16 Billion Hedge Fund Driven Bank Merger To Go Through
The Managing Board and Supervisory Board of ABN AMRO Holding N.V. and the Board of Directors of Barclays PLC announced jointly this morning that agreement has been reached on the combination of ABN AMRO and Barclays for $91.16 billion, in the world's largest bank takeover.
In March hedge fund and major shareholder TCI announced in a letter to Dutch bank ABN Amro that they believe the bank is undervalued and should sell some of its assets, merge with another bank, or even sell off the whole business. ABN Amro is due to hold a shareholder meeting this week and each of the Boards has unanimously resolved to recommend this new transaction to its respective shareholders. The holding company of the combined group will be called Barclays PLC.
The merger was expected to be completed during the fourth quarter of this year, the banks said. As part of the deal, ABN Amro announced it was selling its U.S. unit, LaSalle Bank, to Bank of America Corp. for $21 billion in cash. Under the deal announced Monday, Barclays offered 36.25 euros ($49.25) for each ABN Amro share, slightly below Friday's closing price of 36.29 euros ($49.38).
"The proposed merger of ABN Amro and Barclays will create a strong and competitive combination for its clients with superior products and extensive distribution," the banks said in a statement. "The merged group is expected to generate significant and sustained future incremental earnings growth for shareholders."
Barclays CEO John Varley said the hedge fund shareholders faced a stark choice: Either deconstruct ABN Amro by opting for the competing consortium's bid, or form one of the world's largest banks by accepting Barclays takeover. TCI, the hedge fund that pushed for the bank's breakup, said it was studying the proposed deal.
In March hedge fund and major shareholder TCI announced in a letter to Dutch bank ABN Amro that they believe the bank is undervalued and should sell some of its assets, merge with another bank, or even sell off the whole business. ABN Amro is due to hold a shareholder meeting this week and each of the Boards has unanimously resolved to recommend this new transaction to its respective shareholders. The holding company of the combined group will be called Barclays PLC.
The merger was expected to be completed during the fourth quarter of this year, the banks said. As part of the deal, ABN Amro announced it was selling its U.S. unit, LaSalle Bank, to Bank of America Corp. for $21 billion in cash. Under the deal announced Monday, Barclays offered 36.25 euros ($49.25) for each ABN Amro share, slightly below Friday's closing price of 36.29 euros ($49.38).
"The proposed merger of ABN Amro and Barclays will create a strong and competitive combination for its clients with superior products and extensive distribution," the banks said in a statement. "The merged group is expected to generate significant and sustained future incremental earnings growth for shareholders."
Barclays CEO John Varley said the hedge fund shareholders faced a stark choice: Either deconstruct ABN Amro by opting for the competing consortium's bid, or form one of the world's largest banks by accepting Barclays takeover. TCI, the hedge fund that pushed for the bank's breakup, said it was studying the proposed deal.
5th Annual Hedge Fund Industry Award Nominees
Alternative Investment News, a publication of Institutional Investor News covering the global hedge fund industry, has announced the nominees for the 5th Annual Hedge Fund Industry Awards. The awards recognize the hedge fund leaders, managers and investors who have made significant impacts on the hedge fund industry in the past year. Winners will be announced and awarded at an annual gala dinner on June 27, 2007, at New York City's historic Gotham Hall.
Nominees in all categories were selected by the editors of Alternative Investment News based on their accomplishments during the 2006 calendar year.
Lifetime Achievement award winner:
Guy Wyser-Pratte, President, Wyser Pratte & Company
Nominees:
Hedge Fund Leader of the Year:
Absolute Capital Management
Citadel Investment Group
Bulldog Investors
Fortress Investment Group
Fund of Funds Leader of the Year:
Cadogan Management
Dorchester Capital
Eden Rock Capital Management
Harcourt Investment Consulting
Hedge Fund Launch of the Year:
Kohlberg Kravis Roberts
MatlinPatterson Asset Management
Montrica Investment Management
Oceanwood Capital Management
Paulson Credit Opportunities
Emerging Manager of the Year:
ARCIM Advisors
Hudson Bay Capital Management
MKM Longboat Advisors
Rasmala Investments
Institutional Manager of the Year:
Lyxor Asset Management
Martin Currie Investment Management
Morgan Stanley
Robeco Group
Nonprofit Investor of the Year:
Bowdoin College
MIT Investment Management Company (MIT IMC)
Macarthur Foundation
Public Pension Fund Investor of the Year:
New Jersey State Investment Council
ABP
California Public Employees Retirement System
Ontario Teachers' Pension Plan
Corporate Pension Fund Investor of the Year:
Weyerhaeuser
BT and Hermes Pensions Management
General Motors Investment Management (GMIMCo)
More at;
http://www.iialternatives.com
Nominees in all categories were selected by the editors of Alternative Investment News based on their accomplishments during the 2006 calendar year.
Lifetime Achievement award winner:
Guy Wyser-Pratte, President, Wyser Pratte & Company
Nominees:
Hedge Fund Leader of the Year:
Absolute Capital Management
Citadel Investment Group
Bulldog Investors
Fortress Investment Group
Fund of Funds Leader of the Year:
Cadogan Management
Dorchester Capital
Eden Rock Capital Management
Harcourt Investment Consulting
Hedge Fund Launch of the Year:
Kohlberg Kravis Roberts
MatlinPatterson Asset Management
Montrica Investment Management
Oceanwood Capital Management
Paulson Credit Opportunities
Emerging Manager of the Year:
ARCIM Advisors
Hudson Bay Capital Management
MKM Longboat Advisors
Rasmala Investments
Institutional Manager of the Year:
Lyxor Asset Management
Martin Currie Investment Management
Morgan Stanley
Robeco Group
Nonprofit Investor of the Year:
Bowdoin College
MIT Investment Management Company (MIT IMC)
Macarthur Foundation
Public Pension Fund Investor of the Year:
New Jersey State Investment Council
ABP
California Public Employees Retirement System
Ontario Teachers' Pension Plan
Corporate Pension Fund Investor of the Year:
Weyerhaeuser
BT and Hermes Pensions Management
General Motors Investment Management (GMIMCo)
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20 Apr 2007
G7 To Discuss Hedge Fund Oversight
E.U. Finance Ministers are planning to push for more oversight of hedge funds at this week's Group of 7 meeting in Berlin, the G7 has welcomed the contribution of hedge funds to market liquidity but still see investor protection as an issue.
Industry-led measures could include reporting trades to watchdogs to stamp out possible market abuse. The Alternative Investment Management Association, a global lobby, said a voluntary code was acceptable in principle, but how it would be enforced was unclear.
Ministers meeting this weekend will look at whether "enhanced international cooperation on the regulatory response should be pursued", according to a background document. They also plan to discuss intervention in takeover battles such as the recent hedge fund fight over Dutch bank ABN AMRO.
The document says that action of some sort is needed "given that the influence of hedge funds on the efficiency and stability of the financial system has grown substantially". Hedge fund managers are also accountable to regulators even though most funds are registered offshore such as in the Cayman Islands.
The G7 is comprised of official representatives from Britain, Canada, France, Germany, Italy, Japan, and the United States. The group released their conclusion last month that the world's major developed economies show solid growth, but foreign exchange fluctuations, the rising power of hedge funds and dwindling energy supplies are a concern.
Industry-led measures could include reporting trades to watchdogs to stamp out possible market abuse. The Alternative Investment Management Association, a global lobby, said a voluntary code was acceptable in principle, but how it would be enforced was unclear.
Ministers meeting this weekend will look at whether "enhanced international cooperation on the regulatory response should be pursued", according to a background document. They also plan to discuss intervention in takeover battles such as the recent hedge fund fight over Dutch bank ABN AMRO.
The document says that action of some sort is needed "given that the influence of hedge funds on the efficiency and stability of the financial system has grown substantially". Hedge fund managers are also accountable to regulators even though most funds are registered offshore such as in the Cayman Islands.
The G7 is comprised of official representatives from Britain, Canada, France, Germany, Italy, Japan, and the United States. The group released their conclusion last month that the world's major developed economies show solid growth, but foreign exchange fluctuations, the rising power of hedge funds and dwindling energy supplies are a concern.
19 Apr 2007
Environmental Hedge Funds Growing Rapidly
The Energy Hedge Fund Center LLC announced today that they are now tracking more than 560 energy and energy-related hedge funds in their new Directory of Energy Hedge Funds.
The vast majority of these energy focused hedge funds are based in North America but Europe is already home to 130 energy focused hedge funds and has been the focus for recent energy hedge fund formation. The directory is also now tracking more than 180 commodity hedge funds that have exposure to energy and energy-related commodities.
"Recently, we have seen a renewed interest in the creation of fund of funds in the energy and natural resources sector," reports Dr. Gary M. Vasey, Co-Principal of the Energy Hedge Fund Center, LLC. "Perhaps as interestingly, there has also been a new wave of hedge fund formation focused on energy and other related commodities since the beginning of 2007."
"We are also seeing substantial interest in the launch of larger green hedge funds and more significant growth of sustainability fund of funds this spring. We expect this trend to the accelerate as the US more toward carbon market mandates," said Peter Fusaro, Co-Principal of the Energy Hedge Fund Center LLC. "Energy and environmental hedge funds are still seen as an asset diversification play due to its non correlation."
The Energy Hedge Fund Center(EHFC) also publishes a subscription newsletter 'Energy Hedge' that tracks and announces new energy hedge funds, provides analysis of the Directory's content and includes energy hedge fund manager interviews.
The vast majority of these energy focused hedge funds are based in North America but Europe is already home to 130 energy focused hedge funds and has been the focus for recent energy hedge fund formation. The directory is also now tracking more than 180 commodity hedge funds that have exposure to energy and energy-related commodities.
"Recently, we have seen a renewed interest in the creation of fund of funds in the energy and natural resources sector," reports Dr. Gary M. Vasey, Co-Principal of the Energy Hedge Fund Center, LLC. "Perhaps as interestingly, there has also been a new wave of hedge fund formation focused on energy and other related commodities since the beginning of 2007."
"We are also seeing substantial interest in the launch of larger green hedge funds and more significant growth of sustainability fund of funds this spring. We expect this trend to the accelerate as the US more toward carbon market mandates," said Peter Fusaro, Co-Principal of the Energy Hedge Fund Center LLC. "Energy and environmental hedge funds are still seen as an asset diversification play due to its non correlation."
The Energy Hedge Fund Center(EHFC) also publishes a subscription newsletter 'Energy Hedge' that tracks and announces new energy hedge funds, provides analysis of the Directory's content and includes energy hedge fund manager interviews.
InFocus Hires Hedge Fund Manager
InFocus Corporation announced that they have added hedge fund manager John D. Abouchar and Bernard T. Marren to serve as members of the Company’s Board of Directors. Abouchar and Marren were designated to serve on the Board of Directors by the companies largest shareholder Caxton Associates L.L.C.
Abouchar is an independent consultant to GRT Capital Partners, LLC, based in Boston, Massachusetts, and a portfolio manager for the GRT Technology L.P. hedge fund. Prior to joining GRT Capital Partners in 2006, Abouchar was a Senior Analyst for six years at Pacific Edge Investment Management, a $300 million value technology hedge fund based in Palo Alto, California. Mr. Marren is the Chairman, Chief Executive Officer and President of OPTi Inc., an intellectual property licensing company based in Palo Alto, California.
“Effective yesterday, we officially added Mr. Marren and Mr. Abouchar to the InFocus Board of Directors,” stated Michael Hallman, lead InFocus independent director. “We look forward to their insights and contributions as we continue the evaluation of strategic alternatives for the Company,” concluded Hallman.
InFocus is an inventor and pioneer in the projection market, InFocus Corporation's global headquarters are located in Wilsonville, Oregon, USA, with regional offices in Europe and Asia. LiteShow, LP, ASK, ScreenPlay, Play Big, Work Big, Learn Big and The Big Picture are also registered trademarks of InFocus.
Abouchar is an independent consultant to GRT Capital Partners, LLC, based in Boston, Massachusetts, and a portfolio manager for the GRT Technology L.P. hedge fund. Prior to joining GRT Capital Partners in 2006, Abouchar was a Senior Analyst for six years at Pacific Edge Investment Management, a $300 million value technology hedge fund based in Palo Alto, California. Mr. Marren is the Chairman, Chief Executive Officer and President of OPTi Inc., an intellectual property licensing company based in Palo Alto, California.
“Effective yesterday, we officially added Mr. Marren and Mr. Abouchar to the InFocus Board of Directors,” stated Michael Hallman, lead InFocus independent director. “We look forward to their insights and contributions as we continue the evaluation of strategic alternatives for the Company,” concluded Hallman.
InFocus is an inventor and pioneer in the projection market, InFocus Corporation's global headquarters are located in Wilsonville, Oregon, USA, with regional offices in Europe and Asia. LiteShow, LP, ASK, ScreenPlay, Play Big, Work Big, Learn Big and The Big Picture are also registered trademarks of InFocus.
18 Apr 2007
ABN In Exploratory Talks With Shareholders
Last week Dutch bank and activist hedge fund manager ABN AMRO received a letter from Royal Bank of Scotland, Banco Santander and Fortis in which they invited ABN AMRO to start exploratory talks regarding their intentions, the Dutch Decree on the Supervision of Securities Trade 1995 makes these kinds of requests possible.
The bank agreed to the request for a meeting and has invited all signatories to a meeting in Amsterdam early next week to seek clarification of their intentions and interests.
ABN AMRO and Barclays also announced today, regarding their possible merger/takeover, that they have extended the exclusivity period of their talks to the end of Friday 20 April 2007. ABN AMRO and Barclays are in talks regarding a potential combination of the two organizations that the statement says, "would create value for both sets of shareholders."
The bank also said in the statement, "The discussions, which seek to incorporate the broad objectives set out on 20 March 2007, are progressing, but there can be no certainty that they will lead to a transaction or the form it will take." The two banking groups have been in merger talks since Barclays confirmed it was in "exclusive preliminary discussions" with ABN on March 20.
Netherlands-based ABN AMRO is an international bank with total assets of 899.3 billion euros ($1.2 trillion). It's hedge fund arm, ABN AMRO Asset Management has over 173 billion euros ($235 billion) in assets under management.
The bank agreed to the request for a meeting and has invited all signatories to a meeting in Amsterdam early next week to seek clarification of their intentions and interests.
ABN AMRO and Barclays also announced today, regarding their possible merger/takeover, that they have extended the exclusivity period of their talks to the end of Friday 20 April 2007. ABN AMRO and Barclays are in talks regarding a potential combination of the two organizations that the statement says, "would create value for both sets of shareholders."
The bank also said in the statement, "The discussions, which seek to incorporate the broad objectives set out on 20 March 2007, are progressing, but there can be no certainty that they will lead to a transaction or the form it will take." The two banking groups have been in merger talks since Barclays confirmed it was in "exclusive preliminary discussions" with ABN on March 20.
Netherlands-based ABN AMRO is an international bank with total assets of 899.3 billion euros ($1.2 trillion). It's hedge fund arm, ABN AMRO Asset Management has over 173 billion euros ($235 billion) in assets under management.
KBC Acquires Majority Stake in Russian Absolut Bank
Yesterday evening a deal between Belgian bank KBC Group NV and Russian bank Absolut was made in which the Belgian bank and hedge fund investor acquired 92.5% of shares in the Russian bank. It was announced in a press release this morning.
The deal values the bank at 761 million euros, ($1.03 billion) and is awaiting regulatory approval by the Central Bank of Russia. Absolut, established in 1993 and based in Moscow, is the seventh largest non-state-owned mortgage lender and offers universal banking services. Absolut has more than 1600 employees and 39 branches. KBC said it intends to keep the current key management in place.
KBC Group Chief Executive Andre Bergen said in a statement, "KBC's long-term strategic plans entail further expansion in the markets of emerging Europe. Russia is therefore an extension of our existing presence in neighboring Central and Eastern Europe."
KBC Bank & Insurance Holding Company itself was established in 1998 following the merger of three Belgian financial institutions. The Group's corporate history is a testament to the successful expansion into growth countries of Central and Eastern Europe which have joined the European Union in 2004, such as Hungary, Poland, the Czech Republic and Slovakia. KBC employs some 50,000 people and caters for twelve million customers.
The deal values the bank at 761 million euros, ($1.03 billion) and is awaiting regulatory approval by the Central Bank of Russia. Absolut, established in 1993 and based in Moscow, is the seventh largest non-state-owned mortgage lender and offers universal banking services. Absolut has more than 1600 employees and 39 branches. KBC said it intends to keep the current key management in place.
KBC Group Chief Executive Andre Bergen said in a statement, "KBC's long-term strategic plans entail further expansion in the markets of emerging Europe. Russia is therefore an extension of our existing presence in neighboring Central and Eastern Europe."
KBC Bank & Insurance Holding Company itself was established in 1998 following the merger of three Belgian financial institutions. The Group's corporate history is a testament to the successful expansion into growth countries of Central and Eastern Europe which have joined the European Union in 2004, such as Hungary, Poland, the Czech Republic and Slovakia. KBC employs some 50,000 people and caters for twelve million customers.
17 Apr 2007
Credit Suisse/Tremont Hedge Fund Index Up For March
The Credit Suisse/Tremont Hedge Fund Index is up 1.24% in March and up 3.34% for the first quarter of 2007 according to Oliver Schupp, President of the Credit Suisse Index Co., Inc.
“Despite getting off to a rocky start, global equity markets managed to recoup losses in the beginning of March and ended the month on a positive note. Markets were affected by remarks made by U.S. Federal Reserve Chairman, Ben Bernanke, that inflation is "uncomfortably high" promoting speculation that the U.S. central bank won't reduce interest rates to prop up the slowing economy, a weakening consumer confidence, and a growing housing slump,” said Mr. Schupp.
“Overall, this market environment has led to the estimation that eight of the ten hedge fund sectors will end March on a positive note. Long/Short Equity managers, in particular, were up 1.87% in March as industry themes and ongoing M&A activity provided stock specific opportunities, while superior stock selection paid off.” Performance for the Credit Suisse/Tremont Hedge Fund Index and its ten sub strategies is calculated monthly.
The Credit Suisse/Tremont Hedge Fund Index is comprised of 432 funds as of March 31, 2007. The Index is constructed using the Credit Suisse/Tremont database of more than 4,500 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds.
“Despite getting off to a rocky start, global equity markets managed to recoup losses in the beginning of March and ended the month on a positive note. Markets were affected by remarks made by U.S. Federal Reserve Chairman, Ben Bernanke, that inflation is "uncomfortably high" promoting speculation that the U.S. central bank won't reduce interest rates to prop up the slowing economy, a weakening consumer confidence, and a growing housing slump,” said Mr. Schupp.
“Overall, this market environment has led to the estimation that eight of the ten hedge fund sectors will end March on a positive note. Long/Short Equity managers, in particular, were up 1.87% in March as industry themes and ongoing M&A activity provided stock specific opportunities, while superior stock selection paid off.” Performance for the Credit Suisse/Tremont Hedge Fund Index and its ten sub strategies is calculated monthly.
The Credit Suisse/Tremont Hedge Fund Index is comprised of 432 funds as of March 31, 2007. The Index is constructed using the Credit Suisse/Tremont database of more than 4,500 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds.
16 Apr 2007
Sallie Mae Agrees to $25 Billion Buy Out
A group consisting of hedge funds JC Flowers & Co. and Friedman Fleischer & Lowe, agreed late last night to buy SLM Corp also known as or Sallie Mae, the US's largest provider of student loans, in a $25 billion deal. Also in on the deal is J.P. Morgan Chase & Co. and the Bank of America.
The idea driving the deal revolves around using financial engineering and more-efficient management to improve Sallie Mae's balance sheet. The two New York-based hedge fund firms will control 50.2% of the company, while the banks will own the rest.
Under the terms of the deal, they said, the buyers will pay $60 a share in cash, which represents almost a ५०% premium over Sallie Mae’s battered share price before news of a potential buyout was reported in The New York Times last week. The share price has surged nearly 15% on the prospect that the company could be bought out.
JC Flowers & Co is one of the largest investment funds focused solely on the financial service sector. The fund has over $900 million in commitments from financial and strategic investors. Investors in the hedge fund include ABN Amro, AIG, Banco Santander, GE, Goldman Sachs, JP Morgan Chase among others.
Friedman Fleischer & Lowe focuses on investing in middle-market companies and currently has over $1 billion in assets under management.
The idea driving the deal revolves around using financial engineering and more-efficient management to improve Sallie Mae's balance sheet. The two New York-based hedge fund firms will control 50.2% of the company, while the banks will own the rest.
Under the terms of the deal, they said, the buyers will pay $60 a share in cash, which represents almost a ५०% premium over Sallie Mae’s battered share price before news of a potential buyout was reported in The New York Times last week. The share price has surged nearly 15% on the prospect that the company could be bought out.
JC Flowers & Co is one of the largest investment funds focused solely on the financial service sector. The fund has over $900 million in commitments from financial and strategic investors. Investors in the hedge fund include ABN Amro, AIG, Banco Santander, GE, Goldman Sachs, JP Morgan Chase among others.
Friedman Fleischer & Lowe focuses on investing in middle-market companies and currently has over $1 billion in assets under management.
London Doubles its Share of Global Hedge Fund Assets
London's share of global hedge fund assets increased from 10% to 21% between 2002 and 2006, making London one of the fastest growing hedge fund centres according to the 2007 edition of IFSL's Hedge Funds report. Assets managed by hedge fund managers based in London totaled around $360bn in 2006, up 40% on the previous year, and a six-fold increase from 2002.
New York remained the leading global location for hedge fund managers in 2006 with 36% of global assets. Its share was down however, from 45% in 2002 as growth of the hedge fund industry in Europe and Asia outpaced growth in the US. This was largely a result of a rise in institutional portfolio allocation into hedge funds in these regions during this period.
London is by far the largest center for European hedge fund managers. The 900 hedge funds located in London accounted for four-fifths of European based hedge fund assets in 2006. If figures for fund of funds and US hedge funds with a trading desk in Europe are taken into account, London's share was more than 90%. Other locations for hedge fund managers in Europe include France, Spain, Sweden and Switzerland.
Factors underpinning London's strong position include its local expertise, the proximity of clients and markets, a strong asset management industry and a favorable regulatory environment. London is also a leading center for hedge fund services notably prime brokerage services offered by the leading London based investment banks. More than 90% of European prime brokerage activity is conducted through London.
New York remained the leading global location for hedge fund managers in 2006 with 36% of global assets. Its share was down however, from 45% in 2002 as growth of the hedge fund industry in Europe and Asia outpaced growth in the US. This was largely a result of a rise in institutional portfolio allocation into hedge funds in these regions during this period.
London is by far the largest center for European hedge fund managers. The 900 hedge funds located in London accounted for four-fifths of European based hedge fund assets in 2006. If figures for fund of funds and US hedge funds with a trading desk in Europe are taken into account, London's share was more than 90%. Other locations for hedge fund managers in Europe include France, Spain, Sweden and Switzerland.
Factors underpinning London's strong position include its local expertise, the proximity of clients and markets, a strong asset management industry and a favorable regulatory environment. London is also a leading center for hedge fund services notably prime brokerage services offered by the leading London based investment banks. More than 90% of European prime brokerage activity is conducted through London.
13 Apr 2007
State Street Study Shows Institutional Investment In Hedge Funds Is On The Rise
According to the 2007 State Street Hedge Fund Research Study, nearly two thirds of institutional investors are now allocating more than 5% of their portfolio to hedge fund strategies, while only 4% have no hedge fund allocation. In comparison 2005 and 2006 study results showed less than half had more than 5% allocation to hedge funds and 16% had no allocation.
Although institutional investors allocations to hedge funds are relatively small, they represent the fastest growing segment of direct investors to hedge funds.
92% of institutional investors surveyed expressed either an "increased" (52%) or "maintained" (40%) level of comfort with hedge funds over the previous 12 months. Hedge funds also earned high marks from institutions for increasing absolute portfolio returns. 65% of respondents said their hedge fund investments matched expectations for gains in the absolute return of their portfolio, up from 57% in 2006.
According to the report, hedge funds and hedging strategies are becoming an accepted part of, if not a conventional choice in, the investment portfolios of institutional investors. Hedge fund strategies are continuing to evolve and some hedge funds are adopting new business models, while some traditional investment vehicles adopt hedge fund-like characteristics, blurring the line between alternative and traditional investing.
Joseph Hooley, Vice Chairman of State Street says in the report "What we have learned from these studies, customers and industry participants is that hedge funds are becoming less "alternative" all the time...Investors are beginning to see beyond the isolated cases of fraud and mismanagement that brought negative attention to the industry," and, "We believe plan sponsors and other institutional investors will be able to successfully navigate the risks and mine the opportunities in these important investment products."
The 2007 State Street Hedge Fund Research Study was conducted with the input of global asset owners that collectively manage more than ¤1 trillion in assets, representing corporate pension plans (21%), public and government pension plans (32%) and endowments and foundations (44%).
Although institutional investors allocations to hedge funds are relatively small, they represent the fastest growing segment of direct investors to hedge funds.
92% of institutional investors surveyed expressed either an "increased" (52%) or "maintained" (40%) level of comfort with hedge funds over the previous 12 months. Hedge funds also earned high marks from institutions for increasing absolute portfolio returns. 65% of respondents said their hedge fund investments matched expectations for gains in the absolute return of their portfolio, up from 57% in 2006.
According to the report, hedge funds and hedging strategies are becoming an accepted part of, if not a conventional choice in, the investment portfolios of institutional investors. Hedge fund strategies are continuing to evolve and some hedge funds are adopting new business models, while some traditional investment vehicles adopt hedge fund-like characteristics, blurring the line between alternative and traditional investing.
Joseph Hooley, Vice Chairman of State Street says in the report "What we have learned from these studies, customers and industry participants is that hedge funds are becoming less "alternative" all the time...Investors are beginning to see beyond the isolated cases of fraud and mismanagement that brought negative attention to the industry," and, "We believe plan sponsors and other institutional investors will be able to successfully navigate the risks and mine the opportunities in these important investment products."
The 2007 State Street Hedge Fund Research Study was conducted with the input of global asset owners that collectively manage more than ¤1 trillion in assets, representing corporate pension plans (21%), public and government pension plans (32%) and endowments and foundations (44%).
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