Recent financial statistics have shown that pension plans are beginning to out-pace high net individuals with respect to hedge fund investing. At the same time, sub-prime funds struggle in the aftermath of blow-ups such as Amaranth and Bayou.
According to Dr. Susan M. Mangiero, CFA, Accredited Valuation Analyst and certified Financial Risk Manager, "Pension fiduciaries are on the hook for making sure that they have done everything possible to avoid a hedge fund meltdown. We want to help plan sponsors before trouble starts. Issues such as independent valuations and good risk controls are essential but that is just the tip of the iceberg."
In an effort to assist plan sponsors in this area, Pension Governance is presenting the Hedge Fund Toolbox series today, (June 26th) and later this week (June 28). The discussion covers the role of the pension consultant and proper valuation policies and procedures.
The Hedge Fund Toolbox is a series of six webinars that focus on hedge fund economics, operations and legal considerations. These two events are hosted by Pension Governance as a way to shed light on a sometimes mysterious corner of the investment world.
Pension Governance is an independent research and analysis company that focuses on benefit plan investment risk, corporate strategy, valuation and accounting issues, with the fiduciary perspective in mind. The company is sponsored by HedgeCo.Net, Albourne Village, Lipper Hedge World and the National Association of Certified Valuation Analysts.
24 Jun 2007
Congress Publishes Report on Hedge Funds
The Congressional Research Service recently published a report to Congress on pension fund investments in hedge funds.
The report indicates that pension funds that invest in hedge funds have increased to 24% in 2006, up from 19% in 2004. Total corporate pension fund assets allocated to hedge funds has grown from 1.3% in 2003, to approximately 2.1% in 2006.
The report also says that hedge funds have experienced a growth of 3,000% over the last 16 years.
It also describes the lack of SEC oversight, certain high-profile fund blowups, and the possible risk to the Pension Benefit Guaranty Corporation associated with investments by pension funds in hedge funds.
"In our market based economy, market-discipline of risk taking is the rule and government regulation is the exception." Says The Presidents Working Group on Financial Markets.
The report indicates that pension funds that invest in hedge funds have increased to 24% in 2006, up from 19% in 2004. Total corporate pension fund assets allocated to hedge funds has grown from 1.3% in 2003, to approximately 2.1% in 2006.
The report also says that hedge funds have experienced a growth of 3,000% over the last 16 years.
It also describes the lack of SEC oversight, certain high-profile fund blowups, and the possible risk to the Pension Benefit Guaranty Corporation associated with investments by pension funds in hedge funds.
"In our market based economy, market-discipline of risk taking is the rule and government regulation is the exception." Says The Presidents Working Group on Financial Markets.
$3 Billion Hedge Fund Hires New Manager
Henderson Global Investors, the independent asset manager with over £61 billion ($121.9 billion) under management, has appointed a new sales manager for their $3 billion hedge fund division. Jill Hodges joined last week and will report to Alastair Barrie, director of global hedge fund sales.
Kate O'Neill, Director of Pan European Distribution and Hedge Funds at Henderson, said: “We are delighted to have attracted someone of Jill's calibre to join the team. Henderson has built a credible hedge fund business exploiting the in-house talent we have developed across multiple asset classes. Jill's experience in financial markets and hedge funds combined with her strong network of contacts in Europe will support us in our efforts to continue to grow the business.”
Jill joins from Mt Thaler Investment Management where she was Director of Marketing responsible for sales, marketing and investor relations for European clients. She has also been an equity analyst at Credit Suisse First Boston in London and a Consultant for Ernst and Young Consulting in both Europe and the US. Jill has an MBA from the Wharton School of Business, University of Pennsylvania.
Henderson currently has over $3 billion under management in its hedge fund business spread across 13 funds which are split into four groups: (1) long / short directional equity funds; (2) market neutral funds with a regional focus; (3) equity long / short style rotational funds; and (4) fixed income multi strategy and single strategy funds.
Kate O'Neill, Director of Pan European Distribution and Hedge Funds at Henderson, said: “We are delighted to have attracted someone of Jill's calibre to join the team. Henderson has built a credible hedge fund business exploiting the in-house talent we have developed across multiple asset classes. Jill's experience in financial markets and hedge funds combined with her strong network of contacts in Europe will support us in our efforts to continue to grow the business.”
Jill joins from Mt Thaler Investment Management where she was Director of Marketing responsible for sales, marketing and investor relations for European clients. She has also been an equity analyst at Credit Suisse First Boston in London and a Consultant for Ernst and Young Consulting in both Europe and the US. Jill has an MBA from the Wharton School of Business, University of Pennsylvania.
Henderson currently has over $3 billion under management in its hedge fund business spread across 13 funds which are split into four groups: (1) long / short directional equity funds; (2) market neutral funds with a regional focus; (3) equity long / short style rotational funds; and (4) fixed income multi strategy and single strategy funds.
22 Jun 2007
Deutsche Bank Launches Hedge Fund Consulting Business
Deutsche Bank Securities Inc. announced plans to launch a hedge fund consulting business. John Budzyna has joined as a managing director and head of hedge fund consulting within the bank’s Global Prime Finance business. At Deutsche Bank, Budzyna will build and manage the new hedge fund consulting business. He is based in New York and reports to Barry Bausano and Jonathan Hitchon, Co-Heads of Global Prime Finance.
“We are pleased to welcome John to our team and confident that his vast experience offering strategic advice to hedge funds on accounting, operations and best practices will provide the insight necessary to make our hedge fund consulting business a success,” said Bausano.
Earlier this year, Deutsche Bank Global Prime Finance was named the #2 global provider of prime brokerage services to hedge fund clients by Global Custodian magazine.
Budzyna joins Deutsche Bank with over 30 years of experience in public accounting and consulting. He recently served as the Chief Executive Officer of Olympia Capital Associates, L.P., a hedge fund administrator. Prior to joining Olympia, Budzyna was a senior partner and co-head of the hedge fund practice at Ernst & Young and a partner in charge of the hedge fund practice at Arthur Andersen, where he spent 28 years.
“We are pleased to welcome John to our team and confident that his vast experience offering strategic advice to hedge funds on accounting, operations and best practices will provide the insight necessary to make our hedge fund consulting business a success,” said Bausano.
Earlier this year, Deutsche Bank Global Prime Finance was named the #2 global provider of prime brokerage services to hedge fund clients by Global Custodian magazine.
Budzyna joins Deutsche Bank with over 30 years of experience in public accounting and consulting. He recently served as the Chief Executive Officer of Olympia Capital Associates, L.P., a hedge fund administrator. Prior to joining Olympia, Budzyna was a senior partner and co-head of the hedge fund practice at Ernst & Young and a partner in charge of the hedge fund practice at Arthur Andersen, where he spent 28 years.
21 Jun 2007
Hedge Fund Contracts Acquisitions Group For Billion Dollar Project
New York hedge fund Fairhills Capital has entered into a contract with Corporate Acquisitions Group to identify, contract, and manage the process of acquiring up to $1 billion in private companies in the food service industry sector.
The final sale price includes approximately 80% in cash, as well as 20% future stock in the new entity. Current ownership is also being offered the opportunity to continue to run their respective companies in a salaried position.
The contract was established on February 2, 2007 between both parties. During the following 30 days, 13 companies in 6 states were brought into the project with a total value of $145 million, $15 million in EBIDTA, $14.7 million in real estate, and $54 million in other assets.
On April 13, 2007 the hedge fund began closing on the first business purchase within the project.
As of May 31, 2007, 33 companies were involved with a total project value of $432 million. Over $79 million had already closed and the project was anticipated to be completed and closed by the end of August 2007.
The 33 companies currently in the project represent sole proprietors, C Corporations, S Corporations, and LLC organizations in 22 states including Hawaii.
Corporate Acquisition Group has worked with hundreds of similar business purchases, and continues to offer such services to hedge funds, high net worth individuals, private equity groups, and business owners.
The final sale price includes approximately 80% in cash, as well as 20% future stock in the new entity. Current ownership is also being offered the opportunity to continue to run their respective companies in a salaried position.
The contract was established on February 2, 2007 between both parties. During the following 30 days, 13 companies in 6 states were brought into the project with a total value of $145 million, $15 million in EBIDTA, $14.7 million in real estate, and $54 million in other assets.
On April 13, 2007 the hedge fund began closing on the first business purchase within the project.
As of May 31, 2007, 33 companies were involved with a total project value of $432 million. Over $79 million had already closed and the project was anticipated to be completed and closed by the end of August 2007.
The 33 companies currently in the project represent sole proprietors, C Corporations, S Corporations, and LLC organizations in 22 states including Hawaii.
Corporate Acquisition Group has worked with hundreds of similar business purchases, and continues to offer such services to hedge funds, high net worth individuals, private equity groups, and business owners.
20 Jun 2007
Hedge Fund Citadel Licensed to Operate in Bermuda
Hedge fund Citadel Solutions LLC announced today that the Bermuda Monetary Authority has approved their new branch, making Citadel Solutions Bermuda Ltd. the first company licensed by the BMA to provide administration services to hedge funds.
Effective immediately, Citadel Solutions Bermuda Ltd. will provide middle office and fund administration services to hedge funds as part of the global Citadel Solutions team. It will operate as the headquarters for the firm’s offshore administration platform, servicing the needs of clients domiciled across Europe, Asia and other non U.S. locations.
Robin Bedford has been named Director of the Bermuda branch and will be responsible for leading the operation. He joined Citadel Solutions earlier this month and brings with him nearly a decade of hedge fund administration experience. Most recently, he was President of Dundee Leeds. Mr. Bedford commented, “Citadel Solutions has demonstrated commitment and dedication to become a premium provider of administration solutions. I am delighted to be part of this team.”
John Buckley, President of Citadel Solutions LLC said: “Approval by the BMA is an important step in the further development of our activities. With the addition of Robin to our leadership team, we are well-positioned to become a leader in offshore fund administration. Robin and the Citadel Solutions Bermuda team build upon our unique service offering, the delivery of Operational Alpha to our clients.”
Citadel Solutions LLC is a subsidiary of Citadel Investment Group launched in 2007. The firm brings together experts in hedge fund operations, financial control and technology to offer hedge fund administrative services.
Effective immediately, Citadel Solutions Bermuda Ltd. will provide middle office and fund administration services to hedge funds as part of the global Citadel Solutions team. It will operate as the headquarters for the firm’s offshore administration platform, servicing the needs of clients domiciled across Europe, Asia and other non U.S. locations.
Robin Bedford has been named Director of the Bermuda branch and will be responsible for leading the operation. He joined Citadel Solutions earlier this month and brings with him nearly a decade of hedge fund administration experience. Most recently, he was President of Dundee Leeds. Mr. Bedford commented, “Citadel Solutions has demonstrated commitment and dedication to become a premium provider of administration solutions. I am delighted to be part of this team.”
John Buckley, President of Citadel Solutions LLC said: “Approval by the BMA is an important step in the further development of our activities. With the addition of Robin to our leadership team, we are well-positioned to become a leader in offshore fund administration. Robin and the Citadel Solutions Bermuda team build upon our unique service offering, the delivery of Operational Alpha to our clients.”
Citadel Solutions LLC is a subsidiary of Citadel Investment Group launched in 2007. The firm brings together experts in hedge fund operations, financial control and technology to offer hedge fund administrative services.
19 Jun 2007
UK Hedge Fund Puts $91 Million In US' Northern Trust
UK fund of hedge funds Gottex Market Neutral Trust Limited has announced that Chicago based multi-bank Northern Trust has been selected to provide custody and fund administration services to £45.35 million pounds Sterling (approximately $91 million).
The Guernsey registered fund of hedge funds is a closed-ended investment company trading on the London Stock Exchange. It has a global focus and seeks to achieve its investment objective through investing in underlying, independently market neutral hedge funds.
Sue Baines, Global Fund Services sales manager at Northern Trust said, "We're delighted to be working with Gottex Fund Management as we continue to grow our alternative fund administration business. This is the first listed fund to be established under the recently introduced Guernsey registered closed-ended investment fund regime that enables regulatory consent to be granted within 72 hours of the application being submitted."
Northern Trust has a growing network of 84 offices in 18 U.S. states and has international offices in 13 locations in North America, Europe and the Asia-Pacific region. As of March 31, 2007, Northern Trust had assets under custody of $3.8 trillion, and assets under investment management of $756 billion. Northern Trust, founded in 1889, has earned distinction as an industry leader in combining high-touch service and expertise with innovative products and technology.
Founded in 1992, Gottex is a global investment management group specializing in absolute return strategies. With funds under management of approximately $11 billion, Gottex offers nine co mingled fund of hedge funds products and a variety of managed account solutions and specializes in conservative and market neutral strategies. Headquartered in Lausanne, Switzerland Gottex has offices in London, New York, Boston and Hong Kong, and affiliate offices in Sydney and Montevideo.
The Guernsey registered fund of hedge funds is a closed-ended investment company trading on the London Stock Exchange. It has a global focus and seeks to achieve its investment objective through investing in underlying, independently market neutral hedge funds.
Sue Baines, Global Fund Services sales manager at Northern Trust said, "We're delighted to be working with Gottex Fund Management as we continue to grow our alternative fund administration business. This is the first listed fund to be established under the recently introduced Guernsey registered closed-ended investment fund regime that enables regulatory consent to be granted within 72 hours of the application being submitted."
Northern Trust has a growing network of 84 offices in 18 U.S. states and has international offices in 13 locations in North America, Europe and the Asia-Pacific region. As of March 31, 2007, Northern Trust had assets under custody of $3.8 trillion, and assets under investment management of $756 billion. Northern Trust, founded in 1889, has earned distinction as an industry leader in combining high-touch service and expertise with innovative products and technology.
Founded in 1992, Gottex is a global investment management group specializing in absolute return strategies. With funds under management of approximately $11 billion, Gottex offers nine co mingled fund of hedge funds products and a variety of managed account solutions and specializes in conservative and market neutral strategies. Headquartered in Lausanne, Switzerland Gottex has offices in London, New York, Boston and Hong Kong, and affiliate offices in Sydney and Montevideo.
Reuters Launches Risk Management Interface For Hedge Funds
Reuters has announced the launch of a new risk management solution for the hedge fund industry. According to the press release, "Risk management is now vital to hedge funds as they trade an ever broader set of structured instruments across all asset classes."
JRisk On Demand can be accessed globally via a standard web-browser interface allowing users to view detailed intra-day risk measures as well as profit and loss and position information.
Andrew White, Global Head of Reuters Trade and Risk Management said, “JRisk On Demand marks a major milestone by providing tailored risk management to the hedge fund industry. We are meeting the demand for real-time, cross asset risk management coupled with the reliability synonymous with Reuters. As a hosted solution it makes state of the art risk management an easy and immediate reality for hedge funds.”
Reuters has 16,900 staff in 94 countries, including 2,400 editorial staff in 196 bureaus serving 131 countries. In 2006, Reuters revenues were £2.6 billion ($5.1 billion). Reuters acquired Palo Alto based Application Networks in June 2006 in order to benefit from state-of-the-art technology and experience in managing structured products and credit derivatives.
Reuters JRisk On Demand will be showcased on the Reuters stand at GAIM in Monaco 18th-20th June.
JRisk On Demand can be accessed globally via a standard web-browser interface allowing users to view detailed intra-day risk measures as well as profit and loss and position information.
Andrew White, Global Head of Reuters Trade and Risk Management said, “JRisk On Demand marks a major milestone by providing tailored risk management to the hedge fund industry. We are meeting the demand for real-time, cross asset risk management coupled with the reliability synonymous with Reuters. As a hosted solution it makes state of the art risk management an easy and immediate reality for hedge funds.”
Reuters has 16,900 staff in 94 countries, including 2,400 editorial staff in 196 bureaus serving 131 countries. In 2006, Reuters revenues were £2.6 billion ($5.1 billion). Reuters acquired Palo Alto based Application Networks in June 2006 in order to benefit from state-of-the-art technology and experience in managing structured products and credit derivatives.
Reuters JRisk On Demand will be showcased on the Reuters stand at GAIM in Monaco 18th-20th June.
18 Jun 2007
Hedge Fund Investors Call For Independent Commitee
Two hedge fund shareholders with major stakes in TD Ameritrade Holding Corp, JANA Partners LLC and SAC Capital Advisors LLC, today sent a letter to Ameritrade's Board of Directors questioning their recent announcement regarding the exploration of strategic combinations.
The two hedge fund investors called on the Board to create a special committee free from influence by the company's largest shareholder to explore such combinations. In addition, JANA and SAC provided the Board with their own analysis of what they called the "massive value creation opportunity" inherent in a combination with E*Trade Financial or Charles Schwab.
In today's letter, JANA and SAC challenged TD Ameritrade's suggestion that the timing may not be right for such a combination, and called on the Board to demonstrate why such a transaction at this time would not be in shareholders' best interests.
They also stated their belief that the Board's strategic review process, as described by TD Ameritrade this week, fails to cleanse the Board's review of what they called "glaring" conflicts of interest stemming from the influence of Toronto-Dominion, including Toronto-Dominion's desire to maintain substantial levels of ownership and influence in TD Ameritrade and its reliance on the company to advance its own business strategy.
The letter states, "TD Ameritrade has poured over $200 million into advertising since the merger with TD Waterhouse and maintains over 100 branches at an estimated annual cost of $75 million, yet has produced little in the way of asset growth. In the 12 months ended March 31, 2007, the number of total customer accounts has grown by less than 3%, and the number of more valuable qualified accounts (those with more than $2,000 in assets) has actually declined."
"Additionally, given the Board's desire to address these matters in full public view, we believe it is all the more important that shareholders have a full and accurate accounting of the Board's actions with respect to possible strategic combinations, so that they may judge for themselves the Board's conduct and whether each director has honored his fiduciary duties."
Jana Partners is a $5 billion dollar activist fund based in San Francisco. The fund, run by Barry Rosenstein, has core long and short positions in companies in which it constantly reviews strategic alternatives. It also invests in under followed orphan equities and other event-driven strategies.
SAC Capital Advisors is a group of hedge funds founded by Steven A. Cohen. Investors' money is channeled through seven different "portfolio companies" or fund, including a core fund, a global diversified fund, and a health-care fund, each with an offshore counterpart. Cohen and his business partners are the biggest investors in SAC Capital Advisors, comprising some 60% of its assets.
The two hedge fund investors called on the Board to create a special committee free from influence by the company's largest shareholder to explore such combinations. In addition, JANA and SAC provided the Board with their own analysis of what they called the "massive value creation opportunity" inherent in a combination with E*Trade Financial or Charles Schwab.
In today's letter, JANA and SAC challenged TD Ameritrade's suggestion that the timing may not be right for such a combination, and called on the Board to demonstrate why such a transaction at this time would not be in shareholders' best interests.
They also stated their belief that the Board's strategic review process, as described by TD Ameritrade this week, fails to cleanse the Board's review of what they called "glaring" conflicts of interest stemming from the influence of Toronto-Dominion, including Toronto-Dominion's desire to maintain substantial levels of ownership and influence in TD Ameritrade and its reliance on the company to advance its own business strategy.
The letter states, "TD Ameritrade has poured over $200 million into advertising since the merger with TD Waterhouse and maintains over 100 branches at an estimated annual cost of $75 million, yet has produced little in the way of asset growth. In the 12 months ended March 31, 2007, the number of total customer accounts has grown by less than 3%, and the number of more valuable qualified accounts (those with more than $2,000 in assets) has actually declined."
"Additionally, given the Board's desire to address these matters in full public view, we believe it is all the more important that shareholders have a full and accurate accounting of the Board's actions with respect to possible strategic combinations, so that they may judge for themselves the Board's conduct and whether each director has honored his fiduciary duties."
Jana Partners is a $5 billion dollar activist fund based in San Francisco. The fund, run by Barry Rosenstein, has core long and short positions in companies in which it constantly reviews strategic alternatives. It also invests in under followed orphan equities and other event-driven strategies.
SAC Capital Advisors is a group of hedge funds founded by Steven A. Cohen. Investors' money is channeled through seven different "portfolio companies" or fund, including a core fund, a global diversified fund, and a health-care fund, each with an offshore counterpart. Cohen and his business partners are the biggest investors in SAC Capital Advisors, comprising some 60% of its assets.
14 Jun 2007
Specialized China Fund Launch
Hong Kong and London based fund of hedge funds manager KGR Capital announced that it has launched the KGR Capital China Absolute Return Fund focused specifically on hedge funds invested in greater China.
The Cayman Islands domiciled hedge fund of funds has a minimum investment of $100,000. The initial strategy is to invest in about 10 locally invested hedge funds. The fund's manager is targeting returns of about 20% annually over the longer term and is expecting volatility of about 10%.
Mark White, chief executive of KGR Capital Europe said in a statement, "Early indications are that our selected managers have been able to maintain positive returns this month despite the recent sharp sell-off in the A-share market."
Hong Kong-based KGR Capital specializes in Asia strategies and was formed in 2002 by John Knox, Nick George and Christopher Rampton, who worked together in Asia at Jardine Fleming and JPMorgan. The firm launched its first specialist Asian fund of funds, the KGR Capital Asia Pacific Absolute Return Fund, in August 2003. KGR Capital employs 15 professionals at offices in Hong Kong and London.
The Cayman Islands domiciled hedge fund of funds has a minimum investment of $100,000. The initial strategy is to invest in about 10 locally invested hedge funds. The fund's manager is targeting returns of about 20% annually over the longer term and is expecting volatility of about 10%.
Mark White, chief executive of KGR Capital Europe said in a statement, "Early indications are that our selected managers have been able to maintain positive returns this month despite the recent sharp sell-off in the A-share market."
Hong Kong-based KGR Capital specializes in Asia strategies and was formed in 2002 by John Knox, Nick George and Christopher Rampton, who worked together in Asia at Jardine Fleming and JPMorgan. The firm launched its first specialist Asian fund of funds, the KGR Capital Asia Pacific Absolute Return Fund, in August 2003. KGR Capital employs 15 professionals at offices in Hong Kong and London.
Hedge Fund Manager Faces Prison Time
In an investigation conducted by the FBI, the US Postal Service, and the SEC, hedge fund manager Joseph Ferona now faces prison time after pleading guilty to a fraud charge. His sentencing is scheduled for Aug. 24, Ferona disappeared in 2005 but was arrested earlier this year in Austin, Texas.
From October 2003 through May 2005, Ferona devised a scheme to defraud investors of money by false pretenses by soliciting individuals to invest funds into a “hedge fund” known as Global Prosperity Fund. Ferona purported to operate this fund through Castle Rock Trading Company, based in Castle Rock and Franktown, Colorado.
However, he was not registered with the State of Colorado. As part of the scheme, Ferona made fraudulent representations to investors, including that the fund realized annual returns or profits in excess of 40%, that returns for 2005 were projected as reaching 50 percent, and that the fund earned double digit returns during both good and bad market conditions.
Ferona allegedly concealed massive trading loses by generating and distributing false and fictitious quarterly and monthly investor account statements, falsely depicting each investors’ fund balance as appreciating based on the falsely reported returns.
“There is no such thing as a ‘guaranteed’ or ‘insured’ investment,” said U.S. Attorney Troy Eid. “Investments that promise unrealistic returns with no risk are virtually always fraudulent.”
Ferona now faces 23 counts of mail fraud, each carrying a penalty of up to 20 years imprisonment, and up to a $250,000 fine. He faces five counts of wire fraud, each carrying up to 20 years in federal prison, and a $250,000 fine. He also faces 9 counts of money laundering, with four of the counts carrying up to 20 years imprisonment, and a $500,000 fine, and 5 of the counts carrying up to 10 years imprisonment, and up to a $250,000 fine.
From October 2003 through May 2005, Ferona devised a scheme to defraud investors of money by false pretenses by soliciting individuals to invest funds into a “hedge fund” known as Global Prosperity Fund. Ferona purported to operate this fund through Castle Rock Trading Company, based in Castle Rock and Franktown, Colorado.
However, he was not registered with the State of Colorado. As part of the scheme, Ferona made fraudulent representations to investors, including that the fund realized annual returns or profits in excess of 40%, that returns for 2005 were projected as reaching 50 percent, and that the fund earned double digit returns during both good and bad market conditions.
Ferona allegedly concealed massive trading loses by generating and distributing false and fictitious quarterly and monthly investor account statements, falsely depicting each investors’ fund balance as appreciating based on the falsely reported returns.
“There is no such thing as a ‘guaranteed’ or ‘insured’ investment,” said U.S. Attorney Troy Eid. “Investments that promise unrealistic returns with no risk are virtually always fraudulent.”
Ferona now faces 23 counts of mail fraud, each carrying a penalty of up to 20 years imprisonment, and up to a $250,000 fine. He faces five counts of wire fraud, each carrying up to 20 years in federal prison, and a $250,000 fine. He also faces 9 counts of money laundering, with four of the counts carrying up to 20 years imprisonment, and a $500,000 fine, and 5 of the counts carrying up to 10 years imprisonment, and up to a $250,000 fine.
13 Jun 2007
Scandinavian Hedge Fund Of Funds Announces Portfolio Exits
Petter Hoffström, CFO of Scandinavian hedge fund of funds Amanda Capital PLC announced today that several of its investment companies were sold, generating a cash flow of over EUR 1 million ($1.3 million) for Amanda.
Eltel Networks was sold to another private equity company, Eltel Networks is the Northern European market leader for the installation and maintenance of infrastructure for electricity and telecommunications. Eltel Networks headquarter is in Espoo, Finland and it employs 8,200 professionals across Europe primarily in the Nordics, the Baltics and Poland. The exit is due to be accounted in Amanda's result during the third quarter of this year.
In addition two other private equity funds have recapitalized their target companies. These transactions generate proceeds to Amanda, which will be accounted in Amanda's result in the second quarter in 2007.
Amanda Capital Group is a private equity investment company. Its parent company (Amanda Capital PLC) is the first publicly listed private equity hedge fund of funds in Scandinavia. The company has investments in 24 different private equity funds and in three funds of funds managed by Amanda. It is one of Finland's largest private equity fund investment management companies. In addition to its own investments, Amanda manages several private equity fund portfolios under consultancy agreements.
Amanda also manages five private equity hedge funds of funds, which have several domestic and international investors. Amanda Group currently has more than EUR 1.3 billion ($1.7 billion) in assets under management and has made investments in more than 100 private equity funds in Europe, the United States, Asia and Russia.
Eltel Networks was sold to another private equity company, Eltel Networks is the Northern European market leader for the installation and maintenance of infrastructure for electricity and telecommunications. Eltel Networks headquarter is in Espoo, Finland and it employs 8,200 professionals across Europe primarily in the Nordics, the Baltics and Poland. The exit is due to be accounted in Amanda's result during the third quarter of this year.
In addition two other private equity funds have recapitalized their target companies. These transactions generate proceeds to Amanda, which will be accounted in Amanda's result in the second quarter in 2007.
Amanda Capital Group is a private equity investment company. Its parent company (Amanda Capital PLC) is the first publicly listed private equity hedge fund of funds in Scandinavia. The company has investments in 24 different private equity funds and in three funds of funds managed by Amanda. It is one of Finland's largest private equity fund investment management companies. In addition to its own investments, Amanda manages several private equity fund portfolios under consultancy agreements.
Amanda also manages five private equity hedge funds of funds, which have several domestic and international investors. Amanda Group currently has more than EUR 1.3 billion ($1.7 billion) in assets under management and has made investments in more than 100 private equity funds in Europe, the United States, Asia and Russia.
Hedge Fund Activism, Friendly or Hostile?
With an estimated $1.2 trillion under management, hedge funds are having an impact on the financial markets. In one of the first studies to shed light on how this is happening, researchers at Wharton and three other business schools find that hedge funds' efforts to improve companies they hold big stakes in have spillover benefits for all shareholders: a quick 5% to 7% jump in stock prices.
The gains, measured as an "abnormal return" on top of the broad market's, were nearly 11% when a hedge fund pushed for the targeted company to be sold. This makes hedge funds far more effective than other activist shareholders, such as pension funds and mutual funds, the researchers say.
According to the study, the share-price boost came during the 40-day period surrounding a hedge fund's public announcement of a push for change. "The price gain came immediately upon the announcement," said Wei Jiang, a finance professor at Columbia Business School who is a visiting faculty member at Wharton. The gains were therefore caused by investors' anticipation of improved company performance to follow. "The improvements will occur anywhere from a year to two years down the road," she added.
Return on equity typically soared in the 12 months after a hedge fund announced it had targeted a company. The research is reported in a paper titled, "Hedge Fund Activism, Corporate Governance and Firm Performance." Co-authors are Alon Brav of Duke University, Frank Partnoy of the University of San Diego and Randall Thomas of Vanderbilt University.
Using a large hand-collected dataset of hedge fund activism in the U.S. over the period 2001 through 2005, the study found that most tactics are non-confrontational, and attain success or partial success in two-thirds of the cases. However, hedge funds seldom seek control of target companies. The market reacts favorably to hedge fund activism, as the abnormal return upon announcement of potential activism is in the range of 5-7 percent, with no apparent reversal in the subsequent year.
The study also revealed much about the types of companies hedge funds go after. "I thought hedge funds would target troubled firms, and in the end that turned out not to be the case," said Jiang. Instead, she said, hedge funds seek healthy firms with undervalued stock, and then use their clout to press for management changes, dividend increases or other moves to benefit shareholders.
The study looked at 888 cases involving shareholder activism by 131 hedge funds from the start of 2001 through 2005. The cases were identified from news accounts of activist funds, those pushing for corporate change rather than just holding the stock as a passive investment.
Fund activism ranges from friendly to hostile, often involving more than one type of pressure. Nearly two-thirds of the announcements in the study merely state that the fund intends to communicate regularly with the company's board to enhance shareholder value. In about a quarter of the cases, the fund makes a formal shareholder proposal for change. Proxy fights to replace board members occur in 11.5% of cases. Fund pressure is effective. In about 41% of cases, the funds get the changes demanded, while they achieve partial success in another 26%.
The gains, measured as an "abnormal return" on top of the broad market's, were nearly 11% when a hedge fund pushed for the targeted company to be sold. This makes hedge funds far more effective than other activist shareholders, such as pension funds and mutual funds, the researchers say.
According to the study, the share-price boost came during the 40-day period surrounding a hedge fund's public announcement of a push for change. "The price gain came immediately upon the announcement," said Wei Jiang, a finance professor at Columbia Business School who is a visiting faculty member at Wharton. The gains were therefore caused by investors' anticipation of improved company performance to follow. "The improvements will occur anywhere from a year to two years down the road," she added.
Return on equity typically soared in the 12 months after a hedge fund announced it had targeted a company. The research is reported in a paper titled, "Hedge Fund Activism, Corporate Governance and Firm Performance." Co-authors are Alon Brav of Duke University, Frank Partnoy of the University of San Diego and Randall Thomas of Vanderbilt University.
Using a large hand-collected dataset of hedge fund activism in the U.S. over the period 2001 through 2005, the study found that most tactics are non-confrontational, and attain success or partial success in two-thirds of the cases. However, hedge funds seldom seek control of target companies. The market reacts favorably to hedge fund activism, as the abnormal return upon announcement of potential activism is in the range of 5-7 percent, with no apparent reversal in the subsequent year.
The study also revealed much about the types of companies hedge funds go after. "I thought hedge funds would target troubled firms, and in the end that turned out not to be the case," said Jiang. Instead, she said, hedge funds seek healthy firms with undervalued stock, and then use their clout to press for management changes, dividend increases or other moves to benefit shareholders.
The study looked at 888 cases involving shareholder activism by 131 hedge funds from the start of 2001 through 2005. The cases were identified from news accounts of activist funds, those pushing for corporate change rather than just holding the stock as a passive investment.
Fund activism ranges from friendly to hostile, often involving more than one type of pressure. Nearly two-thirds of the announcements in the study merely state that the fund intends to communicate regularly with the company's board to enhance shareholder value. In about a quarter of the cases, the fund makes a formal shareholder proposal for change. Proxy fights to replace board members occur in 11.5% of cases. Fund pressure is effective. In about 41% of cases, the funds get the changes demanded, while they achieve partial success in another 26%.
12 Jun 2007
Barbarian Launches Film Production Hedge Fund
"The current influx of funds from hedge funds, private equity funds and institutional investors into studio and independent distributor funds has created a considerable opportunity on the content creator side of the Hollywood equation," says Aaron Kaufman of the Barbarian Investment Fund.
Unlike recently formed film investment funds, Barbarian brings together 5 notable film producers such as Benderspink (The Ring, American Pie), Original Media (Half Nelson), GreeneStreet (In The Bedroom) and others. The fund provides a mitigated risk portfolio of non-correlated assets by investing only in films under 10 million that have 80 to 100% of their budgets secured by foreign pre-sales.
With 100,000. as minimum investment, a five year lock up period and 2% management fee, Barbarian partners with independent producers who specialize in independent films budgeted at less than 10 million.
Several nine-figure deals have recently been struck between large institutional investors such as JP Morgan, Merrill Lynch and the Royal Bank of Scotland to name a few, and studios such as Disney, Paramount and Warner Brothers that fund multi-year production slates costing more than $3 billion.
Private equity and hedge funds are now also entering the market, funding large scale ventures such as Virtual studios and Legendary Pictures, these groups have recently funded films such as Superman Returns, Batman Begins, Poseidon and 300.
Unlike recently formed film investment funds, Barbarian brings together 5 notable film producers such as Benderspink (The Ring, American Pie), Original Media (Half Nelson), GreeneStreet (In The Bedroom) and others. The fund provides a mitigated risk portfolio of non-correlated assets by investing only in films under 10 million that have 80 to 100% of their budgets secured by foreign pre-sales.
With 100,000. as minimum investment, a five year lock up period and 2% management fee, Barbarian partners with independent producers who specialize in independent films budgeted at less than 10 million.
Several nine-figure deals have recently been struck between large institutional investors such as JP Morgan, Merrill Lynch and the Royal Bank of Scotland to name a few, and studios such as Disney, Paramount and Warner Brothers that fund multi-year production slates costing more than $3 billion.
Private equity and hedge funds are now also entering the market, funding large scale ventures such as Virtual studios and Legendary Pictures, these groups have recently funded films such as Superman Returns, Batman Begins, Poseidon and 300.
Hedge Fund Search Engine Launched
A new vertical hedge fund search engine was launched yesterday by Institutional Investor, according to their statement, "The new beta version provides financial professionals with customized access to valuable hedge fund content."
The search engine is powered by Convera Corporation a provider of vertical search services for publishers. Residing on Institutional Investor’s Web site, as well as its own URL, the customized search engine allows professionals in the hedge fund industry to search deeply into highly relevant Web sites selected by hedge fund experts. The search engine is designed to return highly relevant results for traders and investors who need timely and targeted access to rankings, news and research.
“Institutional Investor has long been a trusted source of information for the financial community,” said Patrick Condo, Convera’s president and chief executive officer. “A vertical search engine focused on the complex and dynamic hedge fund industry will deliver important content for one of Institutional Investor’s key professional communities. The new search engine is a natural extension of Institutional Investor’s current product range and provides an extremely useful tool for anyone working in or dealing with the hedge fund industry.”
Institutional Investor publishes market products in the hedge fund sector including Alpha magazine, Hedge Fund Daily and Alternative Investment News and organizes conferences and events for the hedge fund community.
The search engine is powered by Convera Corporation a provider of vertical search services for publishers. Residing on Institutional Investor’s Web site, as well as its own URL, the customized search engine allows professionals in the hedge fund industry to search deeply into highly relevant Web sites selected by hedge fund experts. The search engine is designed to return highly relevant results for traders and investors who need timely and targeted access to rankings, news and research.
“Institutional Investor has long been a trusted source of information for the financial community,” said Patrick Condo, Convera’s president and chief executive officer. “A vertical search engine focused on the complex and dynamic hedge fund industry will deliver important content for one of Institutional Investor’s key professional communities. The new search engine is a natural extension of Institutional Investor’s current product range and provides an extremely useful tool for anyone working in or dealing with the hedge fund industry.”
Institutional Investor publishes market products in the hedge fund sector including Alpha magazine, Hedge Fund Daily and Alternative Investment News and organizes conferences and events for the hedge fund community.
8 Jun 2007
Biomet to Sell To Hedge Funds
The Board of Directors of Biomet Inc. announced that it has unanimously recommended to shareholders to accept an increased offer from hedge funds in a private equity consortium to acquire Biomet for $46.00 per share in cash, or an equity value of $11.4 billion.
Under the terms of the revised merger agreement, the consortium, which includes affiliates of hedge fund investor Blackstone Group, Goldman Sachs Capital Partners, private buyout firm Kohlberg Kravis Roberts & Co. and $30 billion hedge fund TPG, will commence a tender offer on or before June 14, 2007, to acquire all of the outstanding shares of Biomet's common stock.
The $46.00 per share offer price represents a premium of 32.3% over the closing price of Biomet's common stock on April 3, 2006, the trading day prior to public speculation that the company was exploring strategic alternatives. Biomet subsequently confirmed on April 6, 2006 that it had retained Morgan Stanley to assist it in exploring strategic alternatives.
In a statement, the hedge fund/buyout group said, "We are pleased that the consortium will be in a position to provide the company with financial and operational resources to support its future growth."
Biomet, Inc. and its subsidiaries design, manufacture, and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries.
The Blackstone Group's alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
Kohlberg Kravis Roberts & Co. is one of the world's oldest and most experienced private equity firms specializing in management buyouts. Over the past 30 years, KKR has completed over 150 transactions with a total value of over US$279 billion.
TPG is a private investment partnership that was founded in 1992 and currently has more than $30 billion under management. The firm has offices in San Francisco, London, Hong Kong, Fort Worth and other locations globally.
Under the terms of the revised merger agreement, the consortium, which includes affiliates of hedge fund investor Blackstone Group, Goldman Sachs Capital Partners, private buyout firm Kohlberg Kravis Roberts & Co. and $30 billion hedge fund TPG, will commence a tender offer on or before June 14, 2007, to acquire all of the outstanding shares of Biomet's common stock.
The $46.00 per share offer price represents a premium of 32.3% over the closing price of Biomet's common stock on April 3, 2006, the trading day prior to public speculation that the company was exploring strategic alternatives. Biomet subsequently confirmed on April 6, 2006 that it had retained Morgan Stanley to assist it in exploring strategic alternatives.
In a statement, the hedge fund/buyout group said, "We are pleased that the consortium will be in a position to provide the company with financial and operational resources to support its future growth."
Biomet, Inc. and its subsidiaries design, manufacture, and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries.
The Blackstone Group's alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
Kohlberg Kravis Roberts & Co. is one of the world's oldest and most experienced private equity firms specializing in management buyouts. Over the past 30 years, KKR has completed over 150 transactions with a total value of over US$279 billion.
TPG is a private investment partnership that was founded in 1992 and currently has more than $30 billion under management. The firm has offices in San Francisco, London, Hong Kong, Fort Worth and other locations globally.
Kassirer Hedge Funds Up for May
Canadian hedge fund Kassirer Market Neutral Limited Partnership announced today that earnings were up 1.08% in May 2007.
"Deal flow remains buoyant reflecting low interest rates, low debt default rates, easy financing, and the ubiquitous private equity buyers." Mark Kassirer, CEO of the hedge fund said.
"Competition for assets in this environment has been heated, and bumps on deals are more common now than at any time since the inception of our fund."
The hedge fund profited from a broadly diversified portfolio of merger arbitrage and special situations positions. The fund has maintained a relatively defensive stance and has historic volatility of half the volatility of bonds and one sixth of the volatility of equities, according to Kassirer.
"Deal flow remains buoyant reflecting low interest rates, low debt default rates, easy financing, and the ubiquitous private equity buyers." Mark Kassirer, CEO of the hedge fund said.
"Competition for assets in this environment has been heated, and bumps on deals are more common now than at any time since the inception of our fund."
The hedge fund profited from a broadly diversified portfolio of merger arbitrage and special situations positions. The fund has maintained a relatively defensive stance and has historic volatility of half the volatility of bonds and one sixth of the volatility of equities, according to Kassirer.
6 Jun 2007
Skylight Comes In At #1 For Real Estate Hedge Funds
Pacific Continental Fund Management’s Skylight Capital Build-Up fund has come first in a ranking of real estate hedge funds for Sharpe ratio over the past 36 months and third for compound annual return.
The Barclay Group’s findings prove that Skylight is one of the highest performing and consistent real estate hedge funds. Skylight reported returns of 1.05% for the April trading period and 69.49% culminative growth to date.
Pacific Continental Fund Management have said that these returns have provided investors with growth equal to around double that of the underlying housing market in the fund’s target area of the North.
Peter Phelan, hedge fund manager at Pacific Continental Fund Management, says: "Skylight’s ability to add value while minimizing risk and volatility continues to attract investors. The continued shortfall of new build properties and increased demand from the buy-to-let investor sector support the fund’s strategy."
The main objective of the Skylight Capital Build-Up Fund is to achieve medium to long term capital appreciation by investing in distressed residential properties in the UK.
Skylight Capital Build-Up Fund invests in residential property in the north of England, the hedge fund strategy focuses primarily on buy-to-let in the first time buyer sector of the market. Current assets under management are £34.18 million ($68 million).
The Barclay Group’s findings prove that Skylight is one of the highest performing and consistent real estate hedge funds. Skylight reported returns of 1.05% for the April trading period and 69.49% culminative growth to date.
Pacific Continental Fund Management have said that these returns have provided investors with growth equal to around double that of the underlying housing market in the fund’s target area of the North.
Peter Phelan, hedge fund manager at Pacific Continental Fund Management, says: "Skylight’s ability to add value while minimizing risk and volatility continues to attract investors. The continued shortfall of new build properties and increased demand from the buy-to-let investor sector support the fund’s strategy."
The main objective of the Skylight Capital Build-Up Fund is to achieve medium to long term capital appreciation by investing in distressed residential properties in the UK.
Skylight Capital Build-Up Fund invests in residential property in the north of England, the hedge fund strategy focuses primarily on buy-to-let in the first time buyer sector of the market. Current assets under management are £34.18 million ($68 million).
Hedge Funds Investing in China's Energy Crisis
According to an 18-month investigation by StockInterview's research team, China is facing an energy crisis of epic proportions. Hedge funds such as SAC Capital, Citadel Associates and Renaissance Technologies have bought shares in companies which are trying to help China overcome its energy crisis.
StockInterview's new publication, "Investing in China's Energy Crisis." reports that China's steel industry is growing at a level not seen since the European and North American industrialization era of 1875-1900 and far greater than the post-war reconstruction of 1950 - 1970. For example, China is producing 34% of the world's steel.
China's cities are being built at an unimaginable rate. About 3,000 new automobiles are hitting the streets every day. China consumes 44% of the world's iron ore mined, 25% of the world's aluminum and 20% of the world's copper production.
For this massive production, China needs energy. Yet in January, the country began importing coal for the first time in its history. It is also the world's largest producer and consumer of coal.
With every new energy discovery, the find is immediately earmarked for new production facilities. The natural gas from a recent discovery of 3.8 trillion cubic meters in northeastern Sichuan Province was instantly assigned to continue fueling new and existing smelters.
Top money managers such as Warren Buffet and Eric Sprott have already invested in these China-energy companies according to the report.
Stockinterview.com is a financial online news service, primarily reporting on uranium market news and the nuclear fuel cycle. StockInterview has also become highly visited for its research throughout the energy sector.
StockInterview's new publication, "Investing in China's Energy Crisis." reports that China's steel industry is growing at a level not seen since the European and North American industrialization era of 1875-1900 and far greater than the post-war reconstruction of 1950 - 1970. For example, China is producing 34% of the world's steel.
China's cities are being built at an unimaginable rate. About 3,000 new automobiles are hitting the streets every day. China consumes 44% of the world's iron ore mined, 25% of the world's aluminum and 20% of the world's copper production.
For this massive production, China needs energy. Yet in January, the country began importing coal for the first time in its history. It is also the world's largest producer and consumer of coal.
With every new energy discovery, the find is immediately earmarked for new production facilities. The natural gas from a recent discovery of 3.8 trillion cubic meters in northeastern Sichuan Province was instantly assigned to continue fueling new and existing smelters.
Top money managers such as Warren Buffet and Eric Sprott have already invested in these China-energy companies according to the report.
Stockinterview.com is a financial online news service, primarily reporting on uranium market news and the nuclear fuel cycle. StockInterview has also become highly visited for its research throughout the energy sector.
5 Jun 2007
Disclosure Advisory Board Speaks Out On Hedge Fund Secrecy
In a newly published white paper by the Disclosure Advisory Board, "Shareholder ID: The Resounding Silence of Non-Disclosure," the Board calls for investors to reveal their identities and for regulators to re-examine existing shareholder disclosure rules, that have now been outdated by new derivative investments.
Further, the Board contends that lack of shareholder identity disclosure is negatively affecting the U.S. capital markets by making companies susceptible to the agenda of hedge funds and other short-term holders.
The Disclosure Advisory Board is a 15 person council of leaders in the corporate, regulatory, investor, reporting and academic communities organized by PR Newswire. The white paper, the second in a series from the Disclosure Advisory Board, was published in conjunction with the largest gathering of investor relations professionals at the National Investor Relations Institute's (NIRI) annual conference in Orlando, FL, June 3-6.
"Vibrant equity markets depend on the active participation of investors. However, certain practices in the U.S. send mixed signals and put many investors at a disadvantage," said Mark Hynes, chairman and spokesperson of the Disclosure Advisory Board, and managing director of Global Investor Relations Services for PR Newswire. "Non-disclosure on the part of investors is not just an issue for public companies. It creates a disorderly market for all parties involved.
"Yet it is the company that bears most of the risk. Lack of investor information exposes shares to potential price manipulation from unknown holders with unknown intentions, increasing a company's vulnerability to takeovers and proxy fights. This cloak of investor secrecy also makes companies susceptible to the agenda of hedge funds and other short-term holders who may provoke actions not favorable to longer-term business objectives."
Hynes concluded, "The U.S. shareholder identity problem calls for immediate action. Shareholder non-disclosure is creating a disorderly market in the U.S., making it less attractive than investment venues in other parts of the world. It is time for undisclosed shareholders to break their silence and announce who they are. Collective silence on this matter is no longer an option."
Further, the Board contends that lack of shareholder identity disclosure is negatively affecting the U.S. capital markets by making companies susceptible to the agenda of hedge funds and other short-term holders.
The Disclosure Advisory Board is a 15 person council of leaders in the corporate, regulatory, investor, reporting and academic communities organized by PR Newswire. The white paper, the second in a series from the Disclosure Advisory Board, was published in conjunction with the largest gathering of investor relations professionals at the National Investor Relations Institute's (NIRI) annual conference in Orlando, FL, June 3-6.
"Vibrant equity markets depend on the active participation of investors. However, certain practices in the U.S. send mixed signals and put many investors at a disadvantage," said Mark Hynes, chairman and spokesperson of the Disclosure Advisory Board, and managing director of Global Investor Relations Services for PR Newswire. "Non-disclosure on the part of investors is not just an issue for public companies. It creates a disorderly market for all parties involved.
"Yet it is the company that bears most of the risk. Lack of investor information exposes shares to potential price manipulation from unknown holders with unknown intentions, increasing a company's vulnerability to takeovers and proxy fights. This cloak of investor secrecy also makes companies susceptible to the agenda of hedge funds and other short-term holders who may provoke actions not favorable to longer-term business objectives."
Hynes concluded, "The U.S. shareholder identity problem calls for immediate action. Shareholder non-disclosure is creating a disorderly market in the U.S., making it less attractive than investment venues in other parts of the world. It is time for undisclosed shareholders to break their silence and announce who they are. Collective silence on this matter is no longer an option."
100 Women In Hedge Funds Partners With DataArt
100 Women in Hedge Funds announced that they have partnered with DataArt to update and automate their existing email systems, which were no longer capable of efficiently managing communications to the organization’s 6000 global members. The new system optimizes the functionality of existing mailing and communication structures, making the sophisticated workings of the database manageable and user friendly.
Amanda Pullinger, Executive Director of 100 Women in Hedge Funds said, “As 100 Women in Hedge Funds grows, we need to rely more heavily on technology-based solutions for appropriate and efficient communications. Partnering with DataArt to upgrade our email system was the first step to improve targeted communication to our 6,000 members.”
“For a decade, DataArt has been helping leading financial institutions and financial technology firms eliminate technology execution risks and streamline their business communication processes,” said Vica Vinogradova, Vice President of Corporate Communications at DataArt and a member of 100 Women in Hedge Funds. “We are happy to have been of assistance to 100 Women in Hedge Funds in their efforts to strengthen their membership communications infrastructure.”
100 Women in Hedge Funds serves over 6,000 alternative investment management investors and practitioners through unique educational, professional development, networking and philanthropic initiatives. Since its first session in 2002, 100 Women in Hedge Funds has hosted more than 100 events globally, connected more than 150 senior women through their Peer Advisory Councils and raised in excess of $10 million for philanthropic causes in the areas of women's health, education and mentoring.
Amanda Pullinger, Executive Director of 100 Women in Hedge Funds said, “As 100 Women in Hedge Funds grows, we need to rely more heavily on technology-based solutions for appropriate and efficient communications. Partnering with DataArt to upgrade our email system was the first step to improve targeted communication to our 6,000 members.”
“For a decade, DataArt has been helping leading financial institutions and financial technology firms eliminate technology execution risks and streamline their business communication processes,” said Vica Vinogradova, Vice President of Corporate Communications at DataArt and a member of 100 Women in Hedge Funds. “We are happy to have been of assistance to 100 Women in Hedge Funds in their efforts to strengthen their membership communications infrastructure.”
100 Women in Hedge Funds serves over 6,000 alternative investment management investors and practitioners through unique educational, professional development, networking and philanthropic initiatives. Since its first session in 2002, 100 Women in Hedge Funds has hosted more than 100 events globally, connected more than 150 senior women through their Peer Advisory Councils and raised in excess of $10 million for philanthropic causes in the areas of women's health, education and mentoring.
4 Jun 2007
Hedge Fund Platform Wins Laureate Award
Hedge fund platform, Logical Information Machines Inc.(LIM) has been recognized as a Laureate by the Computerworld Honors Program for Case Study Historis. This year's Honorees will be commemorated this evening at the 19th Annual Laureates Medal Ceremony & Gala Awards 2007 at the Andrew W. Mellon Auditorium in Washington, D.C.
Computerworld Honors acknowledges individuals and organizations that have used information technology to benefit society. Each year, members of the Chairmen's Committee, a group of 100 Chairmen/CEOs of global technology companies, nominates individuals and organizations around the world whose visionary applications of information technology promote positive social and economic progress.
"We are honored to accept the Laureate Award from the respected publication Computerworld for the Case Study Historis," said Tony Kolton, LIM President and CEO. "We are glad to be recognized amongst all others whose visionary applications of information technology promote positive social and economic progress."
LIM's clients are among the world's largest hedge funds, mutual funds, banks and energy concerns. The firm was named 'Data Management Provider of the Year' by Energy Risk Magazine and was recently awarded "Best of the Web" by Forbes magazine for stock market research. Founded in 1988, LIM is headquartered in Chicago with offices in Austin, New York, London and Singapore.
The LIM Historis Server was chosen for its innovative application. Historis, unlike relational databases that utilize tables, stores data as defined series upon which advanced proprietary compression algorithms are used.
"Each Laureate selected for this honor understands the importance of using one's resources and technical prowess to benefit one's fellow man," said Bob Carrigan, Chairman of the Computerworld Honors Program Chairmen's Committee and President, IDG Communications.
Computerworld Honors acknowledges individuals and organizations that have used information technology to benefit society. Each year, members of the Chairmen's Committee, a group of 100 Chairmen/CEOs of global technology companies, nominates individuals and organizations around the world whose visionary applications of information technology promote positive social and economic progress.
"We are honored to accept the Laureate Award from the respected publication Computerworld for the Case Study Historis," said Tony Kolton, LIM President and CEO. "We are glad to be recognized amongst all others whose visionary applications of information technology promote positive social and economic progress."
LIM's clients are among the world's largest hedge funds, mutual funds, banks and energy concerns. The firm was named 'Data Management Provider of the Year' by Energy Risk Magazine and was recently awarded "Best of the Web" by Forbes magazine for stock market research. Founded in 1988, LIM is headquartered in Chicago with offices in Austin, New York, London and Singapore.
The LIM Historis Server was chosen for its innovative application. Historis, unlike relational databases that utilize tables, stores data as defined series upon which advanced proprietary compression algorithms are used.
"Each Laureate selected for this honor understands the importance of using one's resources and technical prowess to benefit one's fellow man," said Bob Carrigan, Chairman of the Computerworld Honors Program Chairmen's Committee and President, IDG Communications.
Tycoon Launches Private Russian Fund
Russia’s tycoon Mikhail Prokhorov announced the creation of a new private investment fund based on his assets, the ONEXIM Group. The worth of new undertaking exceeds $17 billion, and a stake of 22-percent in GMK Norilsk Nickel is its major asset.
Dmitry Razumov, who had been Prokhorov’s deputy for strategy and M&A in Norilsk Nickel till 2005 will be ONEXIM Group’s General Director and Potanin's partner. Together they plan on reaching $30-billion capitalization in five years.
ONEXIM Group was named after a bank, the starting point for Potanin and Prokhorov in early 1990. "Despite the attempts to declare ONEXIM bankrupt, it met all commitments to creditors," Prokhorov clarified implication of the new undertaking’s name.
ONEXIM’s emergence actually completes the split of Interros assets between Mikhail Prokhorov and Vladimir Potanin. The partners, however, no longer say that Potanin will buy out Prokhorov’s stake in Norilsk Nickel, although exactly this deal has been viewed the milestone in the friendly division of assets.
"We stake on the projects, where Russia has objective competitive advantage. Our experience, analysis of the market and of development trends of Russia’s and world economies convince us that innovation and high-tech projects are the most promising," Prokhorov said when presenting Onexim Group.
Dmitry Razumov, who had been Prokhorov’s deputy for strategy and M&A in Norilsk Nickel till 2005 will be ONEXIM Group’s General Director and Potanin's partner. Together they plan on reaching $30-billion capitalization in five years.
ONEXIM Group was named after a bank, the starting point for Potanin and Prokhorov in early 1990. "Despite the attempts to declare ONEXIM bankrupt, it met all commitments to creditors," Prokhorov clarified implication of the new undertaking’s name.
ONEXIM’s emergence actually completes the split of Interros assets between Mikhail Prokhorov and Vladimir Potanin. The partners, however, no longer say that Potanin will buy out Prokhorov’s stake in Norilsk Nickel, although exactly this deal has been viewed the milestone in the friendly division of assets.
"We stake on the projects, where Russia has objective competitive advantage. Our experience, analysis of the market and of development trends of Russia’s and world economies convince us that innovation and high-tech projects are the most promising," Prokhorov said when presenting Onexim Group.
1 Jun 2007
Creidian Buyout By Activist Firms
Private activist buyout firm, Thomas H. Lee Partners L.P. (THL) and Insurance company, Fidelity National Financial, Inc. (FNF) announced that they have entered into a merger agreement under which Ceridian Corp. will be jointly acquired in an all cash transaction valued at approximately $5.3 billion. The announcement concludes Ceridian's previously announced exploration of strategic alternatives.
"The primary goal of the review of strategic alternatives that we announced on February 13, 2007, was to maximize value for our shareholders," said L. White Matthews, III, Chairman of Ceridian.
"We are very excited about our investment in Ceridian," said FNF Chairman and Chief Executive Officer William P. Foley, II. FNF has a track record of managing business acquisitions. In 2003 FNF bought Alltel Information Services, under similar circumstances and used it as the cornerstone in building what is now Fidelity National Information Services, a nearly $10 billion market cap company.
THL Partners and FNF expect to bring co-investors into the transaction. FNF will own less than 50% of Ceridian at closing and will treat the Ceridian investment under the equity method of accounting for financial statement purposes, similar to its minority ownership stake in Sedgwick CMS, and will not consolidate the financial results of Ceridian.
Under the terms of the agreement, Ceridian shareholders will receive $36.00 per share in cash for each share of common stock they hold. The transaction will be presented to Ceridian shareholders for approval at Ceridian's Annual Meeting no later than September 21, 2007.
THL Partners is a successful private equity investment firm with approximately $20 billion of committed capital. FNF is a provider of title insurance, specialty insurance and claims management services, who with their underwriters cover approximately 29% of all title insurance policies in the United States.
"The primary goal of the review of strategic alternatives that we announced on February 13, 2007, was to maximize value for our shareholders," said L. White Matthews, III, Chairman of Ceridian.
"We are very excited about our investment in Ceridian," said FNF Chairman and Chief Executive Officer William P. Foley, II. FNF has a track record of managing business acquisitions. In 2003 FNF bought Alltel Information Services, under similar circumstances and used it as the cornerstone in building what is now Fidelity National Information Services, a nearly $10 billion market cap company.
THL Partners and FNF expect to bring co-investors into the transaction. FNF will own less than 50% of Ceridian at closing and will treat the Ceridian investment under the equity method of accounting for financial statement purposes, similar to its minority ownership stake in Sedgwick CMS, and will not consolidate the financial results of Ceridian.
Under the terms of the agreement, Ceridian shareholders will receive $36.00 per share in cash for each share of common stock they hold. The transaction will be presented to Ceridian shareholders for approval at Ceridian's Annual Meeting no later than September 21, 2007.
THL Partners is a successful private equity investment firm with approximately $20 billion of committed capital. FNF is a provider of title insurance, specialty insurance and claims management services, who with their underwriters cover approximately 29% of all title insurance policies in the United States.
Hedge Fund Investor Signs On With GHG Emmission Abatement Program
Hedge fund investor AIG Capital Partners announced they have agreed to become significant investors in London-based Sindicatum Carbon Capital Ltd, a principal financier/developer of green house gas (GHG) abatement projects globally. AIG joins Sindicatum Carbon's existing strategic shareholders, including Citi.
The GHG reduction sector has seen an explosive growth over the past two years. Sindicatum Carbon Capital has acquired a portfolio of project development rights and core technologies, and it has established technical relationships in its key areas of expertise.
Scott Foushee, Managing Director, AIG Capital Partners, said, "We are attracted by the rapidly growing carbon credit markets and how SCC's management team is uniquely positioned to capitalize on this opportunity. The investment in Sindicatum Carbon Capital reflects Global Investment Group's strong interest in the emerging carbon market and sustainability programs that help mitigate global greenhouse gas emissions."
Sindicatum Carbon Capital is a specialist climate mitigation company using capital and technology to convert GHG emissions into long-term sources of revenue in what has become a major new global market, that of environmental and greenhouse gas emission reductions. They will use the new capital to accelerate the development of its GHG reduction projects and investment in new and emerging technologies.
AIG Capital Partners is a member company of AIG Global Investment Group, who has more than us $687 billion in assets and has capabilities in equity, fixed income, multi-manager hedge funds, private equity, and real estate.
The GHG reduction sector has seen an explosive growth over the past two years. Sindicatum Carbon Capital has acquired a portfolio of project development rights and core technologies, and it has established technical relationships in its key areas of expertise.
Scott Foushee, Managing Director, AIG Capital Partners, said, "We are attracted by the rapidly growing carbon credit markets and how SCC's management team is uniquely positioned to capitalize on this opportunity. The investment in Sindicatum Carbon Capital reflects Global Investment Group's strong interest in the emerging carbon market and sustainability programs that help mitigate global greenhouse gas emissions."
Sindicatum Carbon Capital is a specialist climate mitigation company using capital and technology to convert GHG emissions into long-term sources of revenue in what has become a major new global market, that of environmental and greenhouse gas emission reductions. They will use the new capital to accelerate the development of its GHG reduction projects and investment in new and emerging technologies.
AIG Capital Partners is a member company of AIG Global Investment Group, who has more than us $687 billion in assets and has capabilities in equity, fixed income, multi-manager hedge funds, private equity, and real estate.
31 May 2007
Alternative Investor Sounds an Alarm On Smaller Mining Operators
In a report published on the 29th of May 2007, alternative investor F&C outlined the risks to mining companies from failure to apply environmental, social and governance (ESG) practices to their independently-managed operations.
According to Karina Litvack, Head of the Governance and Sustainable Investment team at F&C, although most major mining companies have recognized that effective management of these risks is crucial to the long-term success of their business, they have not consistently applied the same policies to their joint-ventures and other partial investments.
"Over the last few years, we have become aware of the gap between what mining companies do in-house in terms of ESG best practices and what they do, or don't do, in to their so-called 'independently managed operations'. Whilst many of these companies have led the way when it comes to their in-house operations, the same cannot be said of the independently-managed operators with which they are increasingly involved.
The report highlights how rising demand for ever-scarcer resources is driving mining companies to turn to exploration projects that are increasingly located in high-risk areas, such as the former Soviet Union, Latin America and Africa.
It is the inherently risky nature of these locations that often prompts the majors to outsource these projects to smaller or more nimble partners. Later on, if and when the assets prove very profitable, the majors will often buy out their junior partners.
F&C is a European investment group whose hedge fund holding company, F&C Asset Management's shares are quoted on the London Stock Exchange. The fund has €151.4 billion ($299 billion) under management (as at 31 March 2007), and offices throughout Europe.
According to Karina Litvack, Head of the Governance and Sustainable Investment team at F&C, although most major mining companies have recognized that effective management of these risks is crucial to the long-term success of their business, they have not consistently applied the same policies to their joint-ventures and other partial investments.
"Over the last few years, we have become aware of the gap between what mining companies do in-house in terms of ESG best practices and what they do, or don't do, in to their so-called 'independently managed operations'. Whilst many of these companies have led the way when it comes to their in-house operations, the same cannot be said of the independently-managed operators with which they are increasingly involved.
The report highlights how rising demand for ever-scarcer resources is driving mining companies to turn to exploration projects that are increasingly located in high-risk areas, such as the former Soviet Union, Latin America and Africa.
It is the inherently risky nature of these locations that often prompts the majors to outsource these projects to smaller or more nimble partners. Later on, if and when the assets prove very profitable, the majors will often buy out their junior partners.
F&C is a European investment group whose hedge fund holding company, F&C Asset Management's shares are quoted on the London Stock Exchange. The fund has €151.4 billion ($299 billion) under management (as at 31 March 2007), and offices throughout Europe.
30 May 2007
Hedge Fund Gala Raises $५१.ॠMillion For Children
This year's ARK (Absolute Return for Kids) 2007 Gala Dinner at Marlborough House on Pall Mall, London had a spectacular light, video and laser show, with Prince as the main act, many companies pitched in to raise an amazing £26.2 million ($51.7 million) for the charity. The event was set up by the hedge fund industry to raise money for children affected by poverty, abuse, disability and illness.
The event was produced by Starlight Design and attended by a star studded guest list of over 1000 including Bill Clinton, Madonna, Sir Bob Geldof, David Bailey, Liz Hurley and many more.
During the dinner, the ARK charity organization announced the launch of the Clinton-ARK Initiative for Mozambique, through a strategic partnership with the Clinton Foundation HIV/AIDS Initiative (CHAI). The partnership will support the delivery of rapid and high quality care and treatment for HIV/AIDS sufferers in Mozambique.
On the main stage were 35 square meters of visuals, flown over the stage, showing images and moving footage created and edited specially for the event. One of the evening’s highlights was the screening of a hard-hitting film illustrating the work performed by ARK workers worldwide over the last 12 months, underlining the issues the organization is trying to address. The hedge fund team pulled no punches in order to energize the wealthy and fortunate to be generous in their donations.
Renowned visual designer/video artist Gary Oldknow of Deepvisual was commissioned by CMT to VJ for the evening, He created an exciting organic style collage of interesting abstract images on the LED screen.
Creative Media Techniques (CMT) supplied video and image based services and lasers for the last effect the guest saw when leaving, the total money, £ 26.6 million ($51.7 million)– raised by the event from tickets, lasered on the ceiling. The event was sponsored by Bloomberg, UBS, Merril Lynch, BlueCrest and a charity auction that alone brought in over £4 million.
Tim Fothergill says: “The ARK event is a show that, despite being draining physically, mentally, and emotionally, gives the greatest feeling of being a part of something so important to those less fortunate in the UK and around the world. Our team are proud to be a part of it and put in an incredible amount of work to make it all happen in seemingly impossible timescales.”
The event was produced by Starlight Design and attended by a star studded guest list of over 1000 including Bill Clinton, Madonna, Sir Bob Geldof, David Bailey, Liz Hurley and many more.
During the dinner, the ARK charity organization announced the launch of the Clinton-ARK Initiative for Mozambique, through a strategic partnership with the Clinton Foundation HIV/AIDS Initiative (CHAI). The partnership will support the delivery of rapid and high quality care and treatment for HIV/AIDS sufferers in Mozambique.
On the main stage were 35 square meters of visuals, flown over the stage, showing images and moving footage created and edited specially for the event. One of the evening’s highlights was the screening of a hard-hitting film illustrating the work performed by ARK workers worldwide over the last 12 months, underlining the issues the organization is trying to address. The hedge fund team pulled no punches in order to energize the wealthy and fortunate to be generous in their donations.
Renowned visual designer/video artist Gary Oldknow of Deepvisual was commissioned by CMT to VJ for the evening, He created an exciting organic style collage of interesting abstract images on the LED screen.
Creative Media Techniques (CMT) supplied video and image based services and lasers for the last effect the guest saw when leaving, the total money, £ 26.6 million ($51.7 million)– raised by the event from tickets, lasered on the ceiling. The event was sponsored by Bloomberg, UBS, Merril Lynch, BlueCrest and a charity auction that alone brought in over £4 million.
Tim Fothergill says: “The ARK event is a show that, despite being draining physically, mentally, and emotionally, gives the greatest feeling of being a part of something so important to those less fortunate in the UK and around the world. Our team are proud to be a part of it and put in an incredible amount of work to make it all happen in seemingly impossible timescales.”
Hedge Fund Managers Launch Artemis Capital Partners
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.
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.
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!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
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.
Subscribe to:
Posts (Atom)