According to a press release, the new edition of IFSL's annual report; Financial Market Trends Europe vs. US 2007, shows that in three quarters of indicators, 14 out of 18, financial markets in Europe have been growing faster than those in the US between 2001 and 2006.
The 14 indicators showing improvement in Europe included 8 out of 9 in sectors such as private equity and hedge funds. Funds raised by European private equity companies have moved up from half of funds raised in North America in 2004 to almost equal in 2006.
European hedge fund assets moved up from 12% of US assets in 2001 to 42% in 2006. Growth in European IPOs has been even more dramatic, increasing ten times between 2002 and 2006 and were well ahead of US IPOs in 2005 and 2006.
The short term trend in indicators between 2005 and 2006 was also positive, with business in Europe improving relative to the US in 11 out of 18 activities.
The trend over a number of years demonstrates how London, as the capital for many of Europe's most important wholesale financial markets, is gaining in importance as a global financial center.
28 Sept 2007
FXCM’s Sentiment Aggressive Forex Managed Funds Up Over 25%
After a successful launch, FXCM's Sentiment Aggressive Managed Funds are up over 25% in its first two months since inception.
Clients had requested a more aggressive and highly leveraged version of FXCM's popular Sentiment Fund, so FXCM introduced its Sentiment Aggressive Fund in July of 2007.
These funds are divided into two strategic components, the first leverages FXCM's Speculative Sentiment Index (SSI) which gauges market sentiment to identify break out and trend trading opportunities. The second strategy is an approach that uses sophisticated technical strategies to harvest tops and bottoms in range bound markets.
This type of fund has found favor amongst many investors who are starting to recognize foreign exchange as an alternative asset class in any diversified portfolio.
In September 2006, FXCM held in excess of $215 million in customer funds out of a total of over $770 million held by Forex Dealer Members. While there are approximately 31 active Forex Dealer Members with liabilities to customers of approximately $795 million, FXCM holds approximately 1 out of every 3 dollars of customer funds held by Forex Dealer Members.
The company does warn however, that leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors.
Clients had requested a more aggressive and highly leveraged version of FXCM's popular Sentiment Fund, so FXCM introduced its Sentiment Aggressive Fund in July of 2007.
These funds are divided into two strategic components, the first leverages FXCM's Speculative Sentiment Index (SSI) which gauges market sentiment to identify break out and trend trading opportunities. The second strategy is an approach that uses sophisticated technical strategies to harvest tops and bottoms in range bound markets.
This type of fund has found favor amongst many investors who are starting to recognize foreign exchange as an alternative asset class in any diversified portfolio.
In September 2006, FXCM held in excess of $215 million in customer funds out of a total of over $770 million held by Forex Dealer Members. While there are approximately 31 active Forex Dealer Members with liabilities to customers of approximately $795 million, FXCM holds approximately 1 out of every 3 dollars of customer funds held by Forex Dealer Members.
The company does warn however, that leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors.
Hegde Fund Article Awards
It was announced today in a press release that Lehman Brothers' research on the classification of hedge fund investment styles is one of this year's Martello Award winners for best research article in alternative investments.
Lehman Brothers' research authors Arik Ben Dor, Lev Dynkin, and Anthony Gould showed that there are inconsistencies between the actual and self-proclaimed hedge fund styles. They won the award for Best Practitioner Article, for their article "Style Analysis and Classification of Hedge Funds."
Sharing the honor with Lehman's team for Best Practitioner Article were Ben Branch of the University of Massachusetts Amherst and Taewon Yang of California State University, for their article "Merger Deal Structures and Investment Strategies." The authors found that the level of wealth protection for the target firm's shareholders is likely to improve both the performance of merger/risk arbitrage trading positions and the chance of merger completion.
In the category of Best Academic Article, IXIS Corporate & Investment Bank, a subsidiary of Natixis, took the top award. Florent Pochon and Jérôme Teïletche penned the award-winning article "A Conditional Approach to Hedge Fund Risk." The authors applied a two-step conditional Bayesian approach to hedge fund risk. This approach has several advantages given specific features of hedge funds returns, notably non-linear exposure to standard assets returns and short sample history.
David McCarthy, Managing Partner and Chief Investment Officer of Martello Investment Management L.P., congratulated the recipients, "This year's winners have produced exceptional research that will contribute to investors' understanding of investment strategies and portfolio return and risk characteristics. We wish them continued success."
The annual Martello Award is sponsored by Martello Investment Management L.P., a specialist fund of funds and advisory firm based in Massachusetts. It honors the best research articles published in Institutional Investor, Inc.'s The Journal of Alternative Investments. Winners were chosen by the Editorial Advisory Board of The Journal of Alternative Investments.
Lehman Brothers' research authors Arik Ben Dor, Lev Dynkin, and Anthony Gould showed that there are inconsistencies between the actual and self-proclaimed hedge fund styles. They won the award for Best Practitioner Article, for their article "Style Analysis and Classification of Hedge Funds."
Sharing the honor with Lehman's team for Best Practitioner Article were Ben Branch of the University of Massachusetts Amherst and Taewon Yang of California State University, for their article "Merger Deal Structures and Investment Strategies." The authors found that the level of wealth protection for the target firm's shareholders is likely to improve both the performance of merger/risk arbitrage trading positions and the chance of merger completion.
In the category of Best Academic Article, IXIS Corporate & Investment Bank, a subsidiary of Natixis, took the top award. Florent Pochon and Jérôme Teïletche penned the award-winning article "A Conditional Approach to Hedge Fund Risk." The authors applied a two-step conditional Bayesian approach to hedge fund risk. This approach has several advantages given specific features of hedge funds returns, notably non-linear exposure to standard assets returns and short sample history.
David McCarthy, Managing Partner and Chief Investment Officer of Martello Investment Management L.P., congratulated the recipients, "This year's winners have produced exceptional research that will contribute to investors' understanding of investment strategies and portfolio return and risk characteristics. We wish them continued success."
The annual Martello Award is sponsored by Martello Investment Management L.P., a specialist fund of funds and advisory firm based in Massachusetts. It honors the best research articles published in Institutional Investor, Inc.'s The Journal of Alternative Investments. Winners were chosen by the Editorial Advisory Board of The Journal of Alternative Investments.
27 Sept 2007
600 Energy and Environmental Hedge Funds Now Listed
The Energy Hedge Fund Center, LLC has announced that it is now tracking over 600 energy and Recent trends include the growth of carbon and environmental energy funds and, as the total universe of energy hedge funds has grown and matured funds of hedge funds in the energy and environment sector.
Dr. Gary M. Vasey, co-founder of the Energy Hedge Fund Center, LLC said, "Our breakthrough study of hedge funds in energy issued in late 2004 identified 180 hedge funds, mostly equity long/short and commodity trading vehicles. Since then, the directory has grown three-fold and the types of strategies followed by hedge funds in energy and environment has also grown and matured."
"Today, nothing much has changed in terms of the attractiveness of all aspects of the energy industry for investors and that is reflected in the growing number of hedge funds that operate in the various energy markets and sectors."
Peter C. Fusaro, co-founder of the Energy Hedge Fund Sector and chairman of Global Change Associates in New York said, "We expect more energy commodity and green funds for 2008!.....Despite well publicized energy hedge fund blow ups, we continue to see more investors deploying capital in the energy and environmental sector. We also see the closure to investors of some larger funds and niche strategies which leads to more opportunities for new fund managers in this dynamic sector,"
Since its launch in October 2004, the directory has constantly grown reflecting investor appetite for energy oriented hedge funds.
Dr. Gary M. Vasey, co-founder of the Energy Hedge Fund Center, LLC said, "Our breakthrough study of hedge funds in energy issued in late 2004 identified 180 hedge funds, mostly equity long/short and commodity trading vehicles. Since then, the directory has grown three-fold and the types of strategies followed by hedge funds in energy and environment has also grown and matured."
"Today, nothing much has changed in terms of the attractiveness of all aspects of the energy industry for investors and that is reflected in the growing number of hedge funds that operate in the various energy markets and sectors."
Peter C. Fusaro, co-founder of the Energy Hedge Fund Sector and chairman of Global Change Associates in New York said, "We expect more energy commodity and green funds for 2008!.....Despite well publicized energy hedge fund blow ups, we continue to see more investors deploying capital in the energy and environmental sector. We also see the closure to investors of some larger funds and niche strategies which leads to more opportunities for new fund managers in this dynamic sector,"
Since its launch in October 2004, the directory has constantly grown reflecting investor appetite for energy oriented hedge funds.
26 Sept 2007
Hedge Funds Backup Habitat For Humanity
An initiative by the hedge fund community to provide New York City families with home ownership opportunities through Habitat for Humanity NY, has announced the launch of a campaign called Hedge Funds for Habitat.
Most immediately, this campaign will help Habitat-NYC complete its 41 unit affordable condominium buildings on Atlantic Avenue in Ocean Hill-Brownsville, Brooklyn, a $13 million state-of-the-art green complex and the largest multifamily complex ever constructed by any Habitat affiliate.
Championed by Stuart Feffer, co-chief executive officer of Lacrosse Global Fund Services, Hedge Funds for Habitat NY is calling on supporters from hedge funds, private equity firms and the service provider community who recognize that there are many working families in New York City living in unsafe and overcrowded conditions whose lives will be forever changed with a Habitat home.
“Our initial goal is to help Habitat-NYC give 41 hardworking families a safe place to live, the opportunity to realize their dreams of home ownership and the ability to secure their future,” Feffer said. “Hedge fund professionals know that investing in human capital is key to the success of our industry... and our city. Safe, decent and affordable homes will help New York’s working families to thrive. And that helps all of us flourish.”
“Habitat-NYC is proud to partner with Stuart Feffer, LaCrosse Global Fund Services and New York City’s hedge fund industry,” said Josh Lockwood, acting executive director of Habitat-NYC. “This unique collaboration unites hedge fund leaders.”
Living up to the Habitat motto “we give a hand up, not a handout,” future homeowner families will work alongside volunteers to construct their own simple, decent and affordable homes. The Hedge Funds for Habitat campaign will help underwrite the recruitment, selection and financial literacy training of the 41 first-time home buyers and help enable Habitat-NYC to complete these “green” condominiums.
Designed by Dattner Architects, construction includes energy efficient and environmentally friendly materials and design. The complex is expected to qualify for a LEED rating, which will allow the homeowners to save up to 30% on their energy bills and raise their families in a healthy home.
Most immediately, this campaign will help Habitat-NYC complete its 41 unit affordable condominium buildings on Atlantic Avenue in Ocean Hill-Brownsville, Brooklyn, a $13 million state-of-the-art green complex and the largest multifamily complex ever constructed by any Habitat affiliate.
Championed by Stuart Feffer, co-chief executive officer of Lacrosse Global Fund Services, Hedge Funds for Habitat NY is calling on supporters from hedge funds, private equity firms and the service provider community who recognize that there are many working families in New York City living in unsafe and overcrowded conditions whose lives will be forever changed with a Habitat home.
“Our initial goal is to help Habitat-NYC give 41 hardworking families a safe place to live, the opportunity to realize their dreams of home ownership and the ability to secure their future,” Feffer said. “Hedge fund professionals know that investing in human capital is key to the success of our industry... and our city. Safe, decent and affordable homes will help New York’s working families to thrive. And that helps all of us flourish.”
“Habitat-NYC is proud to partner with Stuart Feffer, LaCrosse Global Fund Services and New York City’s hedge fund industry,” said Josh Lockwood, acting executive director of Habitat-NYC. “This unique collaboration unites hedge fund leaders.”
Living up to the Habitat motto “we give a hand up, not a handout,” future homeowner families will work alongside volunteers to construct their own simple, decent and affordable homes. The Hedge Funds for Habitat campaign will help underwrite the recruitment, selection and financial literacy training of the 41 first-time home buyers and help enable Habitat-NYC to complete these “green” condominiums.
Designed by Dattner Architects, construction includes energy efficient and environmentally friendly materials and design. The complex is expected to qualify for a LEED rating, which will allow the homeowners to save up to 30% on their energy bills and raise their families in a healthy home.
Bear Stearns Hires New Hedge Fund Manager
Bear Stearns today announced new additions to their staff, among others, Douglas C. Stern, a senior managing director and industry veteran who will help manage the prime brokerage sales team focused on the firm’s largest hedge fund relationships.
“Bear Stearns Prime Brokerage Services offers clients the best products and service by top professionals in the business,” said Louis Lebedin, head of Prime Brokerage Services. “These additions to our staff will add terrific value to our franchise and will help us to provide clients with more world-class products and capabilities.” The strength of the prime brokerage franchise contributed to record revenues for Bear Stearns’ Global Clearing Services division for the third quarter of 2007.
Douglas Stern, who has 23 years experience in institutional sales and prime brokerage services, joins from Morgan Stanley’s prime brokerage unit, where for seven years he was responsible for managing relationships and developing business with some of that firm’s largest clients. He also managed a team responsible for newly launched hedge funds. Mr. Stern holds a B.A. in Economics from St. Lawrence University.
In the 2007 Global Custodian Prime Brokerage Survey, Bear Stearns was ranked the No. 3 prime broker globally and was awarded 50 out of a possible 72 “Best in Class” awards. In the latest Lipper HedgeWorld Prime Brokerage survey, Bear Stearns was the leading prime broker by assets for U.S. hedge funds and the No. 2 prime broker for the largest non-US funds.
“Bear Stearns Prime Brokerage Services offers clients the best products and service by top professionals in the business,” said Louis Lebedin, head of Prime Brokerage Services. “These additions to our staff will add terrific value to our franchise and will help us to provide clients with more world-class products and capabilities.” The strength of the prime brokerage franchise contributed to record revenues for Bear Stearns’ Global Clearing Services division for the third quarter of 2007.
Douglas Stern, who has 23 years experience in institutional sales and prime brokerage services, joins from Morgan Stanley’s prime brokerage unit, where for seven years he was responsible for managing relationships and developing business with some of that firm’s largest clients. He also managed a team responsible for newly launched hedge funds. Mr. Stern holds a B.A. in Economics from St. Lawrence University.
In the 2007 Global Custodian Prime Brokerage Survey, Bear Stearns was ranked the No. 3 prime broker globally and was awarded 50 out of a possible 72 “Best in Class” awards. In the latest Lipper HedgeWorld Prime Brokerage survey, Bear Stearns was the leading prime broker by assets for U.S. hedge funds and the No. 2 prime broker for the largest non-US funds.
25 Sept 2007
“Hedge Funds Demystified”
Applied Learning announced today the launch of the “Open Course” Program, the first course being, “Hedge Funds Demystified”. It will run in London on December 4tt offering tutors of outstanding caliber and experience. It will be the first time Applied Learning has opened its courses to institutional clients and (individual) financial professionals.
The one-day course will allow delegates to get an insider’s insight into how hedge funds really work, the different investment strategies and techniques hedge funds employ, who invests in hedge funds, and why. Understanding different hedge fund investment styles will be addressed, as well as the regulation and risk management of the hedge fund sector.
Gerald Ashley, director at Applied Learning says, “ While we do not expect Northern Rock style queues, we are seeing a lot of interest in training in understanding risk and behavioral finance. The current market turmoil is an ideal backdrop for launching this course. Investment professionals need facts, not half- baked opinions and vague rumors about how hedge funds really operate. This course is the right topic, with the right content, with the very best trainer and critically, available at the right time.”
This will be the first time that a wider audience will be able to attend Applied Learning training courses. The training company has established a solid reputation as a high quality provider of professional level training for the world’s major banks and trading institutions. Now it brings innovative and specialized training, which in the past was available only in-house, to financial markets professionals.
Future topics in the Program will include specialist training on credit derivatives, behavioral finance and commodity investment. The Open Courses will be initially available in London with plans to roll out to other financial centers in 2008.
The one-day course will allow delegates to get an insider’s insight into how hedge funds really work, the different investment strategies and techniques hedge funds employ, who invests in hedge funds, and why. Understanding different hedge fund investment styles will be addressed, as well as the regulation and risk management of the hedge fund sector.
Gerald Ashley, director at Applied Learning says, “ While we do not expect Northern Rock style queues, we are seeing a lot of interest in training in understanding risk and behavioral finance. The current market turmoil is an ideal backdrop for launching this course. Investment professionals need facts, not half- baked opinions and vague rumors about how hedge funds really operate. This course is the right topic, with the right content, with the very best trainer and critically, available at the right time.”
This will be the first time that a wider audience will be able to attend Applied Learning training courses. The training company has established a solid reputation as a high quality provider of professional level training for the world’s major banks and trading institutions. Now it brings innovative and specialized training, which in the past was available only in-house, to financial markets professionals.
Future topics in the Program will include specialist training on credit derivatives, behavioral finance and commodity investment. The Open Courses will be initially available in London with plans to roll out to other financial centers in 2008.
24 Sept 2007
AEGON launches the UK's first Ethical Cautious Managed fund
AEGON Asset Management has announced the coming launch of the UK’s first Ethical Cautious Managed fund to the retail market on 1 March 2007.
The Ethical Cautious Managed fund marks another first for AEGON Asset Management, which was also the first to launch an Ethical Corporate Bond fund in April 2000, a move since copied by many of its rivals.
It is one of three new funds AEGON Asset Management is bringing to the market, which also includes a UK Cautious Managed fund and a UK Opportunities fund.
The UK Cautious Managed and Ethical Cautious Managed funds have been launched in response to demand from UK investors and advisers for lower risk managed funds as an alternative to with-profits and cash investments. They aim to provide a relatively safe and steady return through a low volatility investment strategy with a maximum of 60% of the funds held in equities and 40% in fixed income.
Both Cautious Managed funds build on AEGON Asset Management’s recognized capabilities in the UK equity and fixed income sectors. The Ethical Cautious Managed combines AEGON Asset Management’s stringent ethical criteria with a cautious investment philosophy, bringing together the expertise of both its Ethical Equity team and its Ethical Corporate Bond team.
Audrey Ryan will manage the Ethical Cautious Managed fund, supported by Iain Buckle. Audrey also runs AEGON Asset Management’s Ethical Equity fund, which is AA rated by Forsyth-OBSR and has achieved consistent strong top quartile performance over one, three and five years*. Iain Buckle is also the support manager of AEGON Asset Management’s Ethical Corporate Bond Fund, which is AA rated by Forsyth-OBSR.
The Ethical Cautious Managed fund intends to take an unconstrained investment approach, capitalizing on the recognized research capabilities of the UK equity team.
Ryan said, “The Ethical Cautious Managed fund will aim to take advantage of our experience and in-depth knowledge of the UK equities market without any benchmark constraints. It will be a high conviction, stock-picking fund with no sector or stock limits and have an ideal range of 50 to 60 stocks at launch.”
Jon Bennett, AEGON’s director of third party business, said, “We believe there is significant demand from advisers and investors for a real and viable alternative to with-profits and cash investments. At AEGON Asset Management, we are well placed to deliver this alternative, with our recognized strength in the fixed income market and growing reputation for UK equities.
To mark the launch of these new funds, early investors will benefit from a 2.5% discount reducing the initial charge to 3% until 30 April 2007. This means that if the 3% initial commission is rebated there are zero up-front costs for the investor.
AEGON Asset Management UK's assets under management totaled more than £40.4 billion ($8.1 billion). The company's activities are divided into three business areas, Institutional Business, Insured Business and Retail-Fund Business.
The Ethical Cautious Managed fund marks another first for AEGON Asset Management, which was also the first to launch an Ethical Corporate Bond fund in April 2000, a move since copied by many of its rivals.
It is one of three new funds AEGON Asset Management is bringing to the market, which also includes a UK Cautious Managed fund and a UK Opportunities fund.
The UK Cautious Managed and Ethical Cautious Managed funds have been launched in response to demand from UK investors and advisers for lower risk managed funds as an alternative to with-profits and cash investments. They aim to provide a relatively safe and steady return through a low volatility investment strategy with a maximum of 60% of the funds held in equities and 40% in fixed income.
Both Cautious Managed funds build on AEGON Asset Management’s recognized capabilities in the UK equity and fixed income sectors. The Ethical Cautious Managed combines AEGON Asset Management’s stringent ethical criteria with a cautious investment philosophy, bringing together the expertise of both its Ethical Equity team and its Ethical Corporate Bond team.
Audrey Ryan will manage the Ethical Cautious Managed fund, supported by Iain Buckle. Audrey also runs AEGON Asset Management’s Ethical Equity fund, which is AA rated by Forsyth-OBSR and has achieved consistent strong top quartile performance over one, three and five years*. Iain Buckle is also the support manager of AEGON Asset Management’s Ethical Corporate Bond Fund, which is AA rated by Forsyth-OBSR.
The Ethical Cautious Managed fund intends to take an unconstrained investment approach, capitalizing on the recognized research capabilities of the UK equity team.
Ryan said, “The Ethical Cautious Managed fund will aim to take advantage of our experience and in-depth knowledge of the UK equities market without any benchmark constraints. It will be a high conviction, stock-picking fund with no sector or stock limits and have an ideal range of 50 to 60 stocks at launch.”
Jon Bennett, AEGON’s director of third party business, said, “We believe there is significant demand from advisers and investors for a real and viable alternative to with-profits and cash investments. At AEGON Asset Management, we are well placed to deliver this alternative, with our recognized strength in the fixed income market and growing reputation for UK equities.
To mark the launch of these new funds, early investors will benefit from a 2.5% discount reducing the initial charge to 3% until 30 April 2007. This means that if the 3% initial commission is rebated there are zero up-front costs for the investor.
AEGON Asset Management UK's assets under management totaled more than £40.4 billion ($8.1 billion). The company's activities are divided into three business areas, Institutional Business, Insured Business and Retail-Fund Business.
21 Sept 2007
Babylon Admitted To Participate in Iraqi Central Bank T-Bill Auction
Iraqi hedge fund `The Babylon Fund´ announced that today, as the first foreigners, they were admitted by the Iraqi Central Bank to participate in the primary auction of Iraqi-dinar denominated 6 month and 12 month T-bills.
The investment case for T-bills: Annual net yields are running at approx 18% for 6 month T-bills, and the exchange rate is consistently appreciating against the USD via a managed float regime.
The inflation rate is also now quickly falling down from extreme levels. In January it was running at 50%+ , but YTD it's now down to 5%.
Babylon's winning streak continued during July and August, with a rise of 3,8% in the Babylon Fund's NAV-price.
Of the hedge fund's direct Iraqi holdings, bond yields steered higher upon a combination of dried-up flow and risk aversion factors partly based upon the perceived weakened state of the government whose success might be seen as being indirectly linked to the bond payment stream.
On the other hand, in the ISX stock market in Baghdad, prices rose strongly, as did value and volumes traded, as participants positioned themselves ahead of foreigners' entrance into the ISX, which was allowed as of 1st of August.
According to a statement, Babylon's aim is to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi-dependent securities. The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics, aiming to be regarded as an easy, safe and efficient Gateway towards investing into the region.
The investment case for T-bills: Annual net yields are running at approx 18% for 6 month T-bills, and the exchange rate is consistently appreciating against the USD via a managed float regime.
The inflation rate is also now quickly falling down from extreme levels. In January it was running at 50%+ , but YTD it's now down to 5%.
Babylon's winning streak continued during July and August, with a rise of 3,8% in the Babylon Fund's NAV-price.
Of the hedge fund's direct Iraqi holdings, bond yields steered higher upon a combination of dried-up flow and risk aversion factors partly based upon the perceived weakened state of the government whose success might be seen as being indirectly linked to the bond payment stream.
On the other hand, in the ISX stock market in Baghdad, prices rose strongly, as did value and volumes traded, as participants positioned themselves ahead of foreigners' entrance into the ISX, which was allowed as of 1st of August.
According to a statement, Babylon's aim is to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi-dependent securities. The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics, aiming to be regarded as an easy, safe and efficient Gateway towards investing into the region.
Amanda Invests $7 Million In Finnish Fund
Hedge Fund Amanda Capital Plc announced today in a press release that they have invested five million euros ($7 million) in a Finnish private equity fund, the MB Equity Fund IV.
Equity Fund IV will continue MB Funds' earlier investment strategy by investing in medium-sized companies in Nordic countries.
The Amanda Group is a private equity investment company. Its parent company (Amanda Capital Plc is the first publicly listed private equity fund-of-funds in Scandinavia. The parent company has investments in 24 different private equity funds and in four funds of funds managed by Amanda.
Amanda Group is one of Finland's largest private equity fund investment management companies. The Group manages several private equity fund portfolios under consultancy agreements. It manages also five private equity funds of funds, which have several domestic and international investors.
Amanda Group currently has more than EUR 1.5 billion ($2.1 billion) 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.
Equity Fund IV will continue MB Funds' earlier investment strategy by investing in medium-sized companies in Nordic countries.
The Amanda Group is a private equity investment company. Its parent company (Amanda Capital Plc is the first publicly listed private equity fund-of-funds in Scandinavia. The parent company has investments in 24 different private equity funds and in four funds of funds managed by Amanda.
Amanda Group is one of Finland's largest private equity fund investment management companies. The Group manages several private equity fund portfolios under consultancy agreements. It manages also five private equity funds of funds, which have several domestic and international investors.
Amanda Group currently has more than EUR 1.5 billion ($2.1 billion) 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.
20 Sept 2007
Asia Value Formula Fund Launched By SAM
Sensible Asset Management today announced the coming launch of the Asia Value Formula Fund. The new hedge fund aims to provide long-term capital growth over an investment horizon of 3 to 5 years, by investing primarily in the constituents of the MSCI Asia ex-Japan Index.
The aims are to outperform the MSCI Asia ex-Japan Index by applying the "Value Formula", an active, systematic and quantitative value based approach to identify undervalued securities comprising the index that will benefit from the upside correction between the market's short-term inefficiency and long-term efficiency.
With a minimum investment of $100,000 and a 5% management fee, the hedge fund aims for a launch date of October 15th of this year. Sensible Asset Management was founded in December 2004 with the aim of offering a broad range of products and solutions.
The aims are to outperform the MSCI Asia ex-Japan Index by applying the "Value Formula", an active, systematic and quantitative value based approach to identify undervalued securities comprising the index that will benefit from the upside correction between the market's short-term inefficiency and long-term efficiency.
With a minimum investment of $100,000 and a 5% management fee, the hedge fund aims for a launch date of October 15th of this year. Sensible Asset Management was founded in December 2004 with the aim of offering a broad range of products and solutions.
19 Sept 2007
MPC Samsara Hedge Fund Launch
The MPC Samsara Team announced the launch of a new hedge fund, the MPC Samsara Fund. The hedge fund will be run by Ajay Gambhir and he will follow the same successful strategy as the JPMorgan Europe Dynamic Long Short hedge fund of which Ajay was the sole portfolio manager.
This hedge fund returned, net of fees, 31.5% in 2005 and 40.2% in 2006. The Fund won the Eurohedge Best European Equities Hedge Fund 2006 award (under $500m) with a fund size of $400m (as at February 2007). Over the three years to end 2006 the Europe Dynamic Long Short hedge fund returned 104.7% with a sharpe ratio of 3.1.
MPC Samsara has a directional long short strategy with the ability to be net short of the market. Therefore it is able to vary its exposure to the market and thus profit even in poor stock market environments. Ajay will manage the hedge fund with precisely the same approach as he has used at JP Morgan which was bottom-up stock-picking fund with a top down overlay, using rigorous fundamental analysis and an active approach to stock selection.
Ajay was previously Managing Director and Head of the European High Alpha Team at JPMorgan Asset Management, running over $8bn of assets. Ajay himself personally managed $6bn of assets all of which was in either absolute return or unconstrained vehicles.
MPC Investors is an independent asset manager of both alternative and traditional assets for predominantly institutional clients across the world.
This hedge fund returned, net of fees, 31.5% in 2005 and 40.2% in 2006. The Fund won the Eurohedge Best European Equities Hedge Fund 2006 award (under $500m) with a fund size of $400m (as at February 2007). Over the three years to end 2006 the Europe Dynamic Long Short hedge fund returned 104.7% with a sharpe ratio of 3.1.
MPC Samsara has a directional long short strategy with the ability to be net short of the market. Therefore it is able to vary its exposure to the market and thus profit even in poor stock market environments. Ajay will manage the hedge fund with precisely the same approach as he has used at JP Morgan which was bottom-up stock-picking fund with a top down overlay, using rigorous fundamental analysis and an active approach to stock selection.
Ajay was previously Managing Director and Head of the European High Alpha Team at JPMorgan Asset Management, running over $8bn of assets. Ajay himself personally managed $6bn of assets all of which was in either absolute return or unconstrained vehicles.
MPC Investors is an independent asset manager of both alternative and traditional assets for predominantly institutional clients across the world.
Middle East Hedge Fund Summit to Take Place In Bahrain
The third annual Middle East summit taking place on 5-7 th November at the Ritz-Carlton Hotel in Manama, is the first hedge fund specific event to take place in the Kingdom of Bahrain. Developed in close conjunction with event partners, Bahrain Financial Services Development (BFSD), part of the Economic Development Board, and global alternative asset manager Investcorp, the summit will attract major investors from across the GCC region, with leading fund managers from MENA, Europe, Asia and the US discussing innovative alternative investment strategies.
The hedge fund summit will focus on areas including the recent legislative developments in the region, an overview of its current hedge funds market, panel discussions on emerging markets, advice on how to successfully set up and market a hedge fund and case studies on the most effective investment strategies.
The summit, according to the announcement will also explore various strategies to overcome Shariah compliance in the rapidly growing Middle East market. "The hedge funds market in the Gulf region is set for a period of unprecedented growth," said Jane Dellar, managing director of the Bahrain Financial Services Development (BFSD).
"The recent revision of the collective investment undertakings by the CBB introduces an exempt fund category, enabling hedge funds and other alternative investments. This is yet another prime example of Bahrain's dominance in leading the region's funds development," she said.
Rasheed Mohammed Al-Maraj, Governor of the Central Bank of Bahrain, will attend the inaugural session of the event.
Gary Long, Investcorp's Chief Operating Officer, said: "It is very appropriate for Investcorp to sponsor this event. Not only is it taking place in Bahrain , where Investcorp has such strong ties, but we have a ten-year track record of investing in hedge funds and with $6.4 billion in assets under management, Investcorp is one of the leading global players in this asset class."
The hedge fund summit will focus on areas including the recent legislative developments in the region, an overview of its current hedge funds market, panel discussions on emerging markets, advice on how to successfully set up and market a hedge fund and case studies on the most effective investment strategies.
The summit, according to the announcement will also explore various strategies to overcome Shariah compliance in the rapidly growing Middle East market. "The hedge funds market in the Gulf region is set for a period of unprecedented growth," said Jane Dellar, managing director of the Bahrain Financial Services Development (BFSD).
"The recent revision of the collective investment undertakings by the CBB introduces an exempt fund category, enabling hedge funds and other alternative investments. This is yet another prime example of Bahrain's dominance in leading the region's funds development," she said.
Rasheed Mohammed Al-Maraj, Governor of the Central Bank of Bahrain, will attend the inaugural session of the event.
Gary Long, Investcorp's Chief Operating Officer, said: "It is very appropriate for Investcorp to sponsor this event. Not only is it taking place in Bahrain , where Investcorp has such strong ties, but we have a ten-year track record of investing in hedge funds and with $6.4 billion in assets under management, Investcorp is one of the leading global players in this asset class."
17 Sept 2007
Carbon Hedge Fund Growth, Explained
Daniel Butler, the Trade Director for Czech carbon asset fund manager Blackstone Global Ventures sent us at HedgeCo this much needed Carbon Market simplification;
It could be said that when the average man on the street hears about a new Environmental Fund or Climate Change Funds its easy to imaging the observer visualizing a member of Greenpeace flogging and IPO prospectus on Wall Street. Perhaps destined to be a most undersubscribed offering.
In reality many of these carbon fund raisings are employing tried-and-true investment principals such as: origination of new stock, arbitration of differing instruments, the capture of significant discounts, all to ultimately return a capital gain to the investor. But how could this possible considering Climate Change-Global Warming is a greenie issue? Hardly the type of thing that would interest the professional financial markets community, an observer might opine.
In reality it is not too far fetched to imagine the near future where even investors lacking a renewable energy brief (or an environmental conscience) might consider the world of carbon trading simply a new commodities type market where variables such as the supply of the existing underlying, new origination efforts, and even a tight relation to the energy markets, will be enough to consider before investing.
But wait; did someone just explain the carbon market without spending multiple paragraphs on the issues causing Global Warming, the long process of negotiations between green house gas emitting countries and the acceptance of many said governments to curtail their harmful emissions to the detriment of their gross national product? Isn't that a bit too brief?
Well, that is why it is, for many, still in unexplored and unfathomable territory. Many would-be investors never read through those paragraphs because, while the basis for this new market is a paradigm of inter-governmental coordination and mother of all surprises - an 'agreement' between the majority of nations (the Kyoto Protocol) - the concepts employed tend to be explained in excruciatingly painful detail.
If however, the market of carbon instruments is explained from a different approach, an inside-out approach, perhaps investors would see how it works first and learn the why’s later.
The European market (yes, there are many locality based variables) market can be explained as a place where the right to emit greenhouse gases is securitized into ‘permissions’ or ‘allowances’ to emit, where less of these allowance credits are issued over time in a concept not unlike musical chairs; a simple concept for a serious issue whereby fewer emission allowance credits in circulation means less greenhouse gases actually emitted into the atmosphere. To police this, the participants “governments and companies face severe fines for ‘non-compliance’. These participants can, however, buy cheaper, newly created credits.
This next concept of newly created or ‘originated’ credits is the one that forms the basis for the lion’s share of new carbon funds and unfortunately becomes a bit wordier. This involves the principal of originating new credits based on causing the reductions of GHG emissions in places around the world were it would be much less expensive.*
After all, implementing reductions, (cleaning up, capturing), elsewhere in the world benefits the globe as a whole. And the agent implementing the reduction is then awarded a carbon credit that is usually shared with the site where the emissions were reduced (the factory, the installation, etc).
This is quite frankly not unlike a new IPO offering or the mining of a new commodity. And the effort and expertise expended to bring the new security to market is recouped by the agent because the origination might take place at prices much lower than where the agent can sell them on the world market. Now it should be clear that with the capture of sizeable discounts, there is in fact room for larger financing. And with the growing surge of climate change understanding, the resultant political willpower, the sheer power of the financial market is brought to the cause. This power should be compared to other attempts at taxation where the application is usually up to individual governments and subject to changes as governments change; not nearly as affective as the financial incentive.
It must be made clear, however, that an investor to a fund that captures discounts in the generation of greenhouse gas emissions must be cognizant of important issues such as the risks involved in the creation of new credits: the lengthy and tedious administrative processes to establishing a carbon credit-worthy project, the verification and validation of real emission reductions, as well as the more obvious macro components affecting the supply and demand and ultimately the prices of credits. And also the investor must critically judge the fund manager (agent) to navigate the by-ways of the new credit approval process.
Indeed, perhaps it is here that the investor might best value a the fund since profitability mostly relies on the abilities of the manager to source discounted projects, manage the extraction process from the identification up to perhaps 5 years later when credits are issued: the fund manager must be a master of the carbon credit origination process.
Of course there is criticism. A cynic might say that with all those financial types involved, banks that need to earn large margins to stay afloat, it seems that the real greenhouse gas reductions may take a lesser import. On the other hand, many other previous attempts to apply environmental remedies have fallen short of their goals because the free market was not involved.
The carbon market now however, seems to have surpassed this criticism and is now firmly established as its own financial market. The carbon market and pricing is related closely to energy movements, subject to international acceptance (USA and Australia have not signed the Kyoto Protocol), and even another important factor when it comes to industrial prices. It is nevertheless a growing market confirmed by the appetite for growing fund investment.
*These less expensive locations (countries where emissions reductions are cheaper to implement, might have accepted emissions limits such as the Ukraine or Romania, or possess no limits at all such as in India or China; they benefit in the long run since the creation of new credits benefit the installation ‘host’ and host government implicitly, since they share in the sale of new credits.
Daniel Butler is the Trade Director for carbon asset fund manager Blackstone Global Ventures, a.s. in Prague, Czech Reublic.
For more information, contact;
Alex Akesson
Editor for HedgeCo.Net
Email: alex@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
It could be said that when the average man on the street hears about a new Environmental Fund or Climate Change Funds its easy to imaging the observer visualizing a member of Greenpeace flogging and IPO prospectus on Wall Street. Perhaps destined to be a most undersubscribed offering.
In reality many of these carbon fund raisings are employing tried-and-true investment principals such as: origination of new stock, arbitration of differing instruments, the capture of significant discounts, all to ultimately return a capital gain to the investor. But how could this possible considering Climate Change-Global Warming is a greenie issue? Hardly the type of thing that would interest the professional financial markets community, an observer might opine.
In reality it is not too far fetched to imagine the near future where even investors lacking a renewable energy brief (or an environmental conscience) might consider the world of carbon trading simply a new commodities type market where variables such as the supply of the existing underlying, new origination efforts, and even a tight relation to the energy markets, will be enough to consider before investing.
But wait; did someone just explain the carbon market without spending multiple paragraphs on the issues causing Global Warming, the long process of negotiations between green house gas emitting countries and the acceptance of many said governments to curtail their harmful emissions to the detriment of their gross national product? Isn't that a bit too brief?
Well, that is why it is, for many, still in unexplored and unfathomable territory. Many would-be investors never read through those paragraphs because, while the basis for this new market is a paradigm of inter-governmental coordination and mother of all surprises - an 'agreement' between the majority of nations (the Kyoto Protocol) - the concepts employed tend to be explained in excruciatingly painful detail.
If however, the market of carbon instruments is explained from a different approach, an inside-out approach, perhaps investors would see how it works first and learn the why’s later.
The European market (yes, there are many locality based variables) market can be explained as a place where the right to emit greenhouse gases is securitized into ‘permissions’ or ‘allowances’ to emit, where less of these allowance credits are issued over time in a concept not unlike musical chairs; a simple concept for a serious issue whereby fewer emission allowance credits in circulation means less greenhouse gases actually emitted into the atmosphere. To police this, the participants “governments and companies face severe fines for ‘non-compliance’. These participants can, however, buy cheaper, newly created credits.
This next concept of newly created or ‘originated’ credits is the one that forms the basis for the lion’s share of new carbon funds and unfortunately becomes a bit wordier. This involves the principal of originating new credits based on causing the reductions of GHG emissions in places around the world were it would be much less expensive.*
After all, implementing reductions, (cleaning up, capturing), elsewhere in the world benefits the globe as a whole. And the agent implementing the reduction is then awarded a carbon credit that is usually shared with the site where the emissions were reduced (the factory, the installation, etc).
This is quite frankly not unlike a new IPO offering or the mining of a new commodity. And the effort and expertise expended to bring the new security to market is recouped by the agent because the origination might take place at prices much lower than where the agent can sell them on the world market. Now it should be clear that with the capture of sizeable discounts, there is in fact room for larger financing. And with the growing surge of climate change understanding, the resultant political willpower, the sheer power of the financial market is brought to the cause. This power should be compared to other attempts at taxation where the application is usually up to individual governments and subject to changes as governments change; not nearly as affective as the financial incentive.
It must be made clear, however, that an investor to a fund that captures discounts in the generation of greenhouse gas emissions must be cognizant of important issues such as the risks involved in the creation of new credits: the lengthy and tedious administrative processes to establishing a carbon credit-worthy project, the verification and validation of real emission reductions, as well as the more obvious macro components affecting the supply and demand and ultimately the prices of credits. And also the investor must critically judge the fund manager (agent) to navigate the by-ways of the new credit approval process.
Indeed, perhaps it is here that the investor might best value a the fund since profitability mostly relies on the abilities of the manager to source discounted projects, manage the extraction process from the identification up to perhaps 5 years later when credits are issued: the fund manager must be a master of the carbon credit origination process.
Of course there is criticism. A cynic might say that with all those financial types involved, banks that need to earn large margins to stay afloat, it seems that the real greenhouse gas reductions may take a lesser import. On the other hand, many other previous attempts to apply environmental remedies have fallen short of their goals because the free market was not involved.
The carbon market now however, seems to have surpassed this criticism and is now firmly established as its own financial market. The carbon market and pricing is related closely to energy movements, subject to international acceptance (USA and Australia have not signed the Kyoto Protocol), and even another important factor when it comes to industrial prices. It is nevertheless a growing market confirmed by the appetite for growing fund investment.
*These less expensive locations (countries where emissions reductions are cheaper to implement, might have accepted emissions limits such as the Ukraine or Romania, or possess no limits at all such as in India or China; they benefit in the long run since the creation of new credits benefit the installation ‘host’ and host government implicitly, since they share in the sale of new credits.
Daniel Butler is the Trade Director for carbon asset fund manager Blackstone Global Ventures, a.s. in Prague, Czech Reublic.
For more information, contact;
Alex Akesson
Editor for HedgeCo.Net
Email: alex@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
14 Sept 2007
New IFSB Hedge Fund Regulators
Islamic hedge fund regulators have agreed to admit 12 new members to the the Council of the Islamic Financial Services Board (IFSB) bringing the total members to 137.
Two new regulatory and supervisory authorities have joined the IFSB membership, the Emirates Securities and Commodities Authority, of United Arab Emirates, which was admitted as an Associate Member, and the Bank of Japan who joined as an Observer Member.
The Council has also admitted ten other new Observer Members. The IFSB members now total 137 comprising of 35 regulatory and supervisory authorities, 5 international inter-governmental organizations and 97 market players and professional firms operating in 22 jurisdictions.
The Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international-standard setting body of regulatory and supervisory agencies who have interest in ensuring the soundness and stability of the Islamic financial services industry.
In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Islamic Shari'ah principles.
The 137 members of the IFSB include 35 regulatory and supervisory authorities as well as International Monetary Fund, The World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank, and 97 market players and professional firms from 22 countries.
Two new regulatory and supervisory authorities have joined the IFSB membership, the Emirates Securities and Commodities Authority, of United Arab Emirates, which was admitted as an Associate Member, and the Bank of Japan who joined as an Observer Member.
The Council has also admitted ten other new Observer Members. The IFSB members now total 137 comprising of 35 regulatory and supervisory authorities, 5 international inter-governmental organizations and 97 market players and professional firms operating in 22 jurisdictions.
The Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international-standard setting body of regulatory and supervisory agencies who have interest in ensuring the soundness and stability of the Islamic financial services industry.
In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Islamic Shari'ah principles.
The 137 members of the IFSB include 35 regulatory and supervisory authorities as well as International Monetary Fund, The World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank, and 97 market players and professional firms from 22 countries.
13 Sept 2007
Legal Search Firm Hires Hedge Fund Specialist
Lucas Group announced today in a press release that Todd Caissie has joined as the new Managing Partner of the New York Legal Executive Search office.
Caissie brings nine years of recruiting experience to his new role at Lucas Group with a rich background in Legal recruiting that spans the globe. His last position was Managing Director at Major Lindsey & Africa, the world’s largest legal search firm where he worked with top fortune 500 companies including Colgate-Palmolive and Merrill Lynch as well as the National Hockey League, prestigious hedge funds and private equity firms and other high profile clients in a variety of industry sectors.
Prior to Major Lindsey & Africa, Todd spent five years in Japan and headed up the Tokyo office for TMP Worldwide. Job turnover and lateral recruiting were still recent phenomenons and new frontiers in Japan but with the changing job market he was involved in growing the office from 6 people to 65 in a little over three years.
“I am very excited to join Lucas Group in New York. I inherit an extremely talented team of recruiters and I look forward to increasing our presence in the tri-state area,” says Todd Caissie.
Lucas Group is one of the United States’ largest executive recruitment focused on recruiting top executives in management, advertising/marketing, sales, accounting, manufacturing, legal, military personnel transitioning and technical positions across all major industries.
Caissie brings nine years of recruiting experience to his new role at Lucas Group with a rich background in Legal recruiting that spans the globe. His last position was Managing Director at Major Lindsey & Africa, the world’s largest legal search firm where he worked with top fortune 500 companies including Colgate-Palmolive and Merrill Lynch as well as the National Hockey League, prestigious hedge funds and private equity firms and other high profile clients in a variety of industry sectors.
Prior to Major Lindsey & Africa, Todd spent five years in Japan and headed up the Tokyo office for TMP Worldwide. Job turnover and lateral recruiting were still recent phenomenons and new frontiers in Japan but with the changing job market he was involved in growing the office from 6 people to 65 in a little over three years.
“I am very excited to join Lucas Group in New York. I inherit an extremely talented team of recruiters and I look forward to increasing our presence in the tri-state area,” says Todd Caissie.
Lucas Group is one of the United States’ largest executive recruitment focused on recruiting top executives in management, advertising/marketing, sales, accounting, manufacturing, legal, military personnel transitioning and technical positions across all major industries.
HFN Aggregate Average Down for August
Early estimates from the HFN Hedge Fund Aggregate Average is -1.26% for August of this year. The decrease was the largest since May 2006 and was the first month since May 2007 that the average hedge fund underperformed equity markets.
Year to date through August the average hedge fund is +6.28% while the S&P 500 TR is +5.20%. The HFN database consists of over 7,600 current hedge fund, fund of funds, and CTA products. HFN is an equal weighted average of all single manager hedge funds and CTA/managed futures products in the HedgeFund.net database.
Unlike previous months when equity markets fell and hedge funds outperformed, the environment in August proved more treacherous for managers.
Although major US equity markets ended August positive and European markets rallied to month end, the big drops and volatility during the month combined with widening credit spreads resulted in the majority of hedge fund strategies being negative in August. The HFN Fixed Income Arbitrage Average, perhaps the most representative benchmark of the difficulties caused by the global credit squeeze, experienced its worst month since October 1998, -2.39% and is +0.71% YTD.
August was not painful for every hedge fund strategy. Managers running option strategies benefited from the increase in volatility, returning an average of +1.44% in August and the HFN Options Strategies Average is +6.32% YTD. Short biased managers produced positive returns for the third straight month, +1.04% in August, a feat matched only three times in the last four years and the HFN Short Bias Average is +1.21% YTD.
Year to date through August the average hedge fund is +6.28% while the S&P 500 TR is +5.20%. The HFN database consists of over 7,600 current hedge fund, fund of funds, and CTA products. HFN is an equal weighted average of all single manager hedge funds and CTA/managed futures products in the HedgeFund.net database.
Unlike previous months when equity markets fell and hedge funds outperformed, the environment in August proved more treacherous for managers.
Although major US equity markets ended August positive and European markets rallied to month end, the big drops and volatility during the month combined with widening credit spreads resulted in the majority of hedge fund strategies being negative in August. The HFN Fixed Income Arbitrage Average, perhaps the most representative benchmark of the difficulties caused by the global credit squeeze, experienced its worst month since October 1998, -2.39% and is +0.71% YTD.
August was not painful for every hedge fund strategy. Managers running option strategies benefited from the increase in volatility, returning an average of +1.44% in August and the HFN Options Strategies Average is +6.32% YTD. Short biased managers produced positive returns for the third straight month, +1.04% in August, a feat matched only three times in the last four years and the HFN Short Bias Average is +1.21% YTD.
12 Sept 2007
Proskauer Rose Hires Hedge Fund Lawyer
According to a statement released today, hedge fund and private equity lawyer Timothy M. Clark has joined the New York office of Proskauer Rose LLP as a partner, continuing the expansion of the firm’s significant private investment hedge fund practice.
Mr. Clark has extensive experience representing a range of investment firms, in particular hedge funds, in connection with fund formation, complex transactions and regulatory issues.
“Proskauer has developed one of the largest, broadest and most sophisticated private investment fund practices, with more than 125 lawyers working on private equity and hedge fund formation,” said Ronald R. Papa, partner and chair of Proskauer’s Corporate Department. “Timothy offers outstanding experience working with hedge funds, private equity firms and venture capitalists and makes an excellent addition to our Hedge Fund and Private Investment Funds practices.”
“Particularly today, with the financial markets in flux, investment firms are looking for counsel from seasoned advisors who have experienced various economic cycles and can provide the insight to help firms chart a successful course forward,” added Christopher Wells, head of Proskauer’s Hedge Fund Practice. “Timothy’s expertise is an ideal complement to our deep bench of talent and we are delighted to have him join our team.”
Proskauer Rose was founded in 1875 and is one of the US’ largest law firms, providing a variety of legal services to clients throughout the United States and around the world from offices in New York, Los Angeles, Washington, D.C., Boston, Boca Raton, Newark, New Orleans, Paris, and São Paulo.
The firm has experience in areas of practice important to businesses and individuals including among others, corporate finance, mergers and acquisitions, general commercial litigation, private equity and hedge fund formation.
Mr. Clark has extensive experience representing a range of investment firms, in particular hedge funds, in connection with fund formation, complex transactions and regulatory issues.
“Proskauer has developed one of the largest, broadest and most sophisticated private investment fund practices, with more than 125 lawyers working on private equity and hedge fund formation,” said Ronald R. Papa, partner and chair of Proskauer’s Corporate Department. “Timothy offers outstanding experience working with hedge funds, private equity firms and venture capitalists and makes an excellent addition to our Hedge Fund and Private Investment Funds practices.”
“Particularly today, with the financial markets in flux, investment firms are looking for counsel from seasoned advisors who have experienced various economic cycles and can provide the insight to help firms chart a successful course forward,” added Christopher Wells, head of Proskauer’s Hedge Fund Practice. “Timothy’s expertise is an ideal complement to our deep bench of talent and we are delighted to have him join our team.”
Proskauer Rose was founded in 1875 and is one of the US’ largest law firms, providing a variety of legal services to clients throughout the United States and around the world from offices in New York, Los Angeles, Washington, D.C., Boston, Boca Raton, Newark, New Orleans, Paris, and São Paulo.
The firm has experience in areas of practice important to businesses and individuals including among others, corporate finance, mergers and acquisitions, general commercial litigation, private equity and hedge fund formation.
11 Sept 2007
Merkel and Sarkozy Discuss EU Hedge Funds
At an informal meeting yesterday in Meseberg, Germany, French President Sarkozy took a tough line on "financial speculators", such as hedge funds, who should not be allowed "to destroy an entire international system".
He added: "We are in favour of transparency and regulation, and for a capitalism that favours entrepreneurs, not speculators."
Merkel and Sarkozy also discussed issues of common European concern, such as energy, and proposed the creation of a "council of wise men" to debate how the EU should evolve over the next 30 years.
However, the two remained vague on the composition of such a council, but underlined that its members should not be individuals who are actively involved in the Commission, Council or Parliament.Both Merkel and Sarkozy are opposed to Turkish EU membership, supporting a close association instead.
Chancellor Merkel criticised in particular the failure of rating agencies. She asked: "How can we tell people at home that nobody knew anything about this and yet they all have to live with the consequences?"
The two European leaders said that they would push for an EU initiative to improve the transparency of financial markets following the recent turmoil spurred by the US sub-prime market collapse.
He added: "We are in favour of transparency and regulation, and for a capitalism that favours entrepreneurs, not speculators."
Merkel and Sarkozy also discussed issues of common European concern, such as energy, and proposed the creation of a "council of wise men" to debate how the EU should evolve over the next 30 years.
However, the two remained vague on the composition of such a council, but underlined that its members should not be individuals who are actively involved in the Commission, Council or Parliament.Both Merkel and Sarkozy are opposed to Turkish EU membership, supporting a close association instead.
Chancellor Merkel criticised in particular the failure of rating agencies. She asked: "How can we tell people at home that nobody knew anything about this and yet they all have to live with the consequences?"
The two European leaders said that they would push for an EU initiative to improve the transparency of financial markets following the recent turmoil spurred by the US sub-prime market collapse.
10 Sept 2007
Hedge Fund Compensation Report Shows Increase In Pay For 2008
The 2008 Hedge Fund Compensation Report was released today by Glocap Search LLC, Institutional Investor News, and Lipper HedgeWorld. The report is an analysis of 2007 compensation paid by U.S. hedge funds including estimates for cash bonuses expected to be paid in early 2008. The data shows that compensation for all titles and job functions covered by the report will continue to increase.
Among other things, the 2008 Report shows that the average compensation for investment professionals with 1-4 years of experience at funds with $1-3 billion in assets under management is estimated to come in at just over $330,000. While the average compensation for investment professionals with 10 or more years of experience at hedge funds with $10 billion or more in assets under management (a new category this year and the largest in the report) is estimated to hit $2.35 million this year.
The report also estimates that fundraisers will earn average pay packages of about $730,000 this year and total cash compensation for Senior Analysts at fund of funds is expected to hit $325,000.
Adam Zoia, Managing Partner at Glocap, noted that, as hedge funds continue to attract capital at rapid rates and the markets have become more competitive, there has been a heightened need for more qualified professionals to help invest the money, and that demand has pushed compensation higher at any given level of fund performance.
The report analyzes base salaries and bonuses of thousands of hedge fund professionals at hundreds of U.S. hedge fund firms for the years 2004-2007, including Investment Professionals, Traders, CFOs, COOs, Fund Marketers, Administrative & Executive Assistants, Information Technology, Risk Management, Operations and Legal & Compliance professionals. The data in the Report comes from a combination of first-hand feedback from Glocap candidates on past and expected compensation, actual placement data maintained by Glocap in the course of its search business and from survey results by its recruiters.
Zoia added that the 2008 report was improved to reflect the changing landscape of the hedge fund industry. Specifically, fund sizes were altered to include even larger funds and compensation data was added on fund of funds. "As we are every year, Glocap is once again happy to be a part of what has become an established compensation planning tool for hedge funds of all sizes," Zoia said.
Among other things, the 2008 Report shows that the average compensation for investment professionals with 1-4 years of experience at funds with $1-3 billion in assets under management is estimated to come in at just over $330,000. While the average compensation for investment professionals with 10 or more years of experience at hedge funds with $10 billion or more in assets under management (a new category this year and the largest in the report) is estimated to hit $2.35 million this year.
The report also estimates that fundraisers will earn average pay packages of about $730,000 this year and total cash compensation for Senior Analysts at fund of funds is expected to hit $325,000.
Adam Zoia, Managing Partner at Glocap, noted that, as hedge funds continue to attract capital at rapid rates and the markets have become more competitive, there has been a heightened need for more qualified professionals to help invest the money, and that demand has pushed compensation higher at any given level of fund performance.
The report analyzes base salaries and bonuses of thousands of hedge fund professionals at hundreds of U.S. hedge fund firms for the years 2004-2007, including Investment Professionals, Traders, CFOs, COOs, Fund Marketers, Administrative & Executive Assistants, Information Technology, Risk Management, Operations and Legal & Compliance professionals. The data in the Report comes from a combination of first-hand feedback from Glocap candidates on past and expected compensation, actual placement data maintained by Glocap in the course of its search business and from survey results by its recruiters.
Zoia added that the 2008 report was improved to reflect the changing landscape of the hedge fund industry. Specifically, fund sizes were altered to include even larger funds and compensation data was added on fund of funds. "As we are every year, Glocap is once again happy to be a part of what has become an established compensation planning tool for hedge funds of all sizes," Zoia said.
Goodman Fund of Funds Reaches Target of 250 Million Euros
Goodman Property Investors announced that its eurozone fund of hedge funds is on course to reach its equity targets after hitting €250 million ($344.8 million) since launching a year ago.
The Goodman Group international property investment management business is set to achieve its €300 million ($413.7 million) equity target within a 12 to 24 month timeframe from its July 2006 inception.
The fund has returned 9.6% so far this year, with 24 investors of predominantly UK and Continental European pension funds. The majority of the investments are in specialist sector and/or geographically focused funds.
The fund is managed by Karin van der Sluijs who is based in Goodman’s Amsterdam office. The fund’s portfolio provides a balanced exposure to the traditional office, retail and industrial sectors combined with investments in some specialist sectors such as residential and car parking, the majority of the Karin van der Sluijs managed fund’s investments are in specialist sector and geographically focused funds.
Andrew Smith, head of indirect investment at Goodman Property Investors, said: "The success of the Eurozone Fund of Funds demonstrates the increased appetite from European pension funds for investing in property outside their domestic market. It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors.”
“It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors,” Andrew says.
“One of the key selling points of the fund has been the strong investment pipeline we have secured. “This highlights the benefit of having people on the ground with the local knowledge and experience to seek out these specialist managers.”
The Goodman Group international property investment management business is set to achieve its €300 million ($413.7 million) equity target within a 12 to 24 month timeframe from its July 2006 inception.
The fund has returned 9.6% so far this year, with 24 investors of predominantly UK and Continental European pension funds. The majority of the investments are in specialist sector and/or geographically focused funds.
The fund is managed by Karin van der Sluijs who is based in Goodman’s Amsterdam office. The fund’s portfolio provides a balanced exposure to the traditional office, retail and industrial sectors combined with investments in some specialist sectors such as residential and car parking, the majority of the Karin van der Sluijs managed fund’s investments are in specialist sector and geographically focused funds.
Andrew Smith, head of indirect investment at Goodman Property Investors, said: "The success of the Eurozone Fund of Funds demonstrates the increased appetite from European pension funds for investing in property outside their domestic market. It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors.”
“It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors,” Andrew says.
“One of the key selling points of the fund has been the strong investment pipeline we have secured. “This highlights the benefit of having people on the ground with the local knowledge and experience to seek out these specialist managers.”
6 Sept 2007
RMF Launches Global Environmental Fund of Hedge Fund
Swiss-based RMF Investment Management has has announced the launch of a global fund of hedge funds that will invest purely in environmental industries and strategies.
The RMF Environmental Opportunities Fund, which the company said is the first of its kind in the world, will invest in environmentally-friendly technology, renewable energy, initiatives to reduce carbon emissions and conserve water and sustainable infrastructure.
The fund, in which RMF has invested $25.1 million, is aimed at institutional investors and designed to generate returns of between 8 and 10 per cent with medium-level volatility. As a hedge of hedge funds, it includes investments in multiple hedge fund managers, thereby increasing diversification.
RMF head of new alternative investments Michelle McClosky said that environmental investments are evolving rapidly.
“Environmental hedge funds offer great potential, but the challenge for us initially was to find enough liquid strategies with institutional-quality managers. When we started looking at the market just over a year ago, only a handful of these hedge funds existed. But over the past year, liquidity in both the equities and futures markets has increased dramatically and we have seen a corresponding increase in the number of fund offerings in the sector. With over 35 hedge funds to choose from, we are now confident the market is scalable and that managers are here to stay.”
RMF, which is headquartered in Pfäffikon in Switzerland and has offices in London, New York, Singapore and the Bahamas, began as a hedge fund manager in 1992 and now manages more than $25.4 billion in assets, mainly for institutional investors.
RMF is part of Man Investments, which has $67 billion in assets under management, centers in London and Pfäffikon and offices in Chicago, Hong Kong, Dubai, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
The RMF Environmental Opportunities Fund, which the company said is the first of its kind in the world, will invest in environmentally-friendly technology, renewable energy, initiatives to reduce carbon emissions and conserve water and sustainable infrastructure.
The fund, in which RMF has invested $25.1 million, is aimed at institutional investors and designed to generate returns of between 8 and 10 per cent with medium-level volatility. As a hedge of hedge funds, it includes investments in multiple hedge fund managers, thereby increasing diversification.
RMF head of new alternative investments Michelle McClosky said that environmental investments are evolving rapidly.
“Environmental hedge funds offer great potential, but the challenge for us initially was to find enough liquid strategies with institutional-quality managers. When we started looking at the market just over a year ago, only a handful of these hedge funds existed. But over the past year, liquidity in both the equities and futures markets has increased dramatically and we have seen a corresponding increase in the number of fund offerings in the sector. With over 35 hedge funds to choose from, we are now confident the market is scalable and that managers are here to stay.”
RMF, which is headquartered in Pfäffikon in Switzerland and has offices in London, New York, Singapore and the Bahamas, began as a hedge fund manager in 1992 and now manages more than $25.4 billion in assets, mainly for institutional investors.
RMF is part of Man Investments, which has $67 billion in assets under management, centers in London and Pfäffikon and offices in Chicago, Hong Kong, Dubai, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
5 Sept 2007
Hong Kong SFC Says Hedge Funds Not For Everyone
The Hong Kong Securities and Futures Commission (SFC) reminded investors in a press release today that although hedge funds are often marketed as “all weather” funds for different market conditions, their strategies do not always work for all market conditions.
The SFC also published an updated leaflet on hedge funds as part of its investor education leaflet series. The publication explains the basic concepts and risks of hedge funds. It stresses that hedge funds are only suitable for those who can understand and bear the risks involved.
When considering a hedge fund, according to the leaflet, investors should read the offering documents to have a clear view of the investment strategies and risks, ask questions, and avoid signing anything that they don’t understand.
In addition, investors are reminded that although unauthorized hedge funds cannot be offered to the public, they may be offered to private clients. When offered an unauthorized hedge fund, investors should note that the fund’s structure and operations are not subject to SFC regulatory requirements.
The English and Chinese versions of the leaflet are now available at the SFC office, and can be viewed in the “publications” section of the SFC-operated investor portal.
The Securities and Futures Commission (SFC) is an independent non-governmental statutory body outside the civil service, responsible for administering the laws governing the securities and futures markets in Hong Kong and facilitating and encouraging the development of these markets.
The SFC also published an updated leaflet on hedge funds as part of its investor education leaflet series. The publication explains the basic concepts and risks of hedge funds. It stresses that hedge funds are only suitable for those who can understand and bear the risks involved.
When considering a hedge fund, according to the leaflet, investors should read the offering documents to have a clear view of the investment strategies and risks, ask questions, and avoid signing anything that they don’t understand.
In addition, investors are reminded that although unauthorized hedge funds cannot be offered to the public, they may be offered to private clients. When offered an unauthorized hedge fund, investors should note that the fund’s structure and operations are not subject to SFC regulatory requirements.
The English and Chinese versions of the leaflet are now available at the SFC office, and can be viewed in the “publications” section of the SFC-operated investor portal.
The Securities and Futures Commission (SFC) is an independent non-governmental statutory body outside the civil service, responsible for administering the laws governing the securities and futures markets in Hong Kong and facilitating and encouraging the development of these markets.
3 Sept 2007
South Africa's New Hedge Fund Regulations
Just as South Africa’s Financial Services Board (FSB) is coming out with new regulations governing the area’s hedge fund industry, Terrapinn is presenting Hedge Funds World Africa 2007.
Last year there was a record turnout of 444 delegates and speakers at the Mount Nelson Hotel. This year local and international fund managers, asset managers, hedge fund managers, investment specialists and institutional investors will meet at the Cape Town International Convention Centre to celebrate the 7th annual hedge fund industry event.
The Alternative Investment Management Association’s South African chapter chairman, Ian Hamilton, welcomed the new regulations, saying the association had been working with the FSB and other industry organizations for more than two years “and our efforts have come to fruition”. The new regulations require anyone managing a hedge fund to apply to the FSB for a category IIA financial services provider license by the end of February. Attention will be paid to the applicant’s operational ability and risk management processes, as well as the types of investors who invest in the funds.
The FSB sent letters to investment managers approved by the FSB warning them that although allowed to buy and sell securities on behalf of their clients, it does not provide them with any form of approval to either manage hedge funds or to sell hedge funds to individuals or pension fund investors.
The final point of the letter stated that hedge fund managers may in no way make any representation to clients that they are approved to manage hedge funds or intimate that hedge funds are a regulated product in South Africa.
In terms of the current regulatory regime, hedge funds fall outside the scope of existing regulation and there is nothing preventing investment managers from conducting the business of a hedge fund provided that they do not represent to have been approved by the FSB to manage and/or solicit for investment into hedge funds.
It is therefore suggested that any hedge fund material should state such restrictions clearly on the face of such documentation and all participants in the hedge fund industry must ensure that they act responsibly in their conduct.
Last year there was a record turnout of 444 delegates and speakers at the Mount Nelson Hotel. This year local and international fund managers, asset managers, hedge fund managers, investment specialists and institutional investors will meet at the Cape Town International Convention Centre to celebrate the 7th annual hedge fund industry event.
The Alternative Investment Management Association’s South African chapter chairman, Ian Hamilton, welcomed the new regulations, saying the association had been working with the FSB and other industry organizations for more than two years “and our efforts have come to fruition”. The new regulations require anyone managing a hedge fund to apply to the FSB for a category IIA financial services provider license by the end of February. Attention will be paid to the applicant’s operational ability and risk management processes, as well as the types of investors who invest in the funds.
The FSB sent letters to investment managers approved by the FSB warning them that although allowed to buy and sell securities on behalf of their clients, it does not provide them with any form of approval to either manage hedge funds or to sell hedge funds to individuals or pension fund investors.
The final point of the letter stated that hedge fund managers may in no way make any representation to clients that they are approved to manage hedge funds or intimate that hedge funds are a regulated product in South Africa.
In terms of the current regulatory regime, hedge funds fall outside the scope of existing regulation and there is nothing preventing investment managers from conducting the business of a hedge fund provided that they do not represent to have been approved by the FSB to manage and/or solicit for investment into hedge funds.
It is therefore suggested that any hedge fund material should state such restrictions clearly on the face of such documentation and all participants in the hedge fund industry must ensure that they act responsibly in their conduct.
31 Aug 2007
Cayman Island Hedge Fund Bankruptcy Decision on Hold
Judge Burton Lifland of the southern New York court recently announced his decision regarding the bankruptcies of two Bear Stearns Cayman Island hedge funds, Lifland said that he is keeping the funds' assets out of creditors' reach for another ten days, during which he will weigh whether to grant them Chapter 15 protection.
"The only adhesive connection with the Cayman Islands that the funds have is the fact that they are registered there," Lifland wrote in a ruling in New York, noting that most assets were originally in the U.S.
The insolvent funds were first granted the preliminary injunction on Aug. 9 by effectively halting any pending lawsuits in the U.S.
"There are no employees or managers in the Cayman Islands, the investment manager for the funds is located in New York, the administrator that runs the back-office operations of the funds is in the United States along with the funds' books and records, and prior to the commencement of the foreign proceeding, all of the funds' liquid assets were located in the United States," Lifland wrote.
The two funds bet heavily on subprime mortgage loans and as defaults increased, creditors began to clamor for their collateral, leaving the funds short on cash.
According to an AP report, provisional liquidators working to unwind the funds in the Caymans estimate that the High-Grade Structured Credit Strategies Master Fund could see recoveries of $25 million, and the smaller High-Grade Structured Credit Strategies Enhanced Leverage Master Fund could see recoveries of less than $50 million.
"The only adhesive connection with the Cayman Islands that the funds have is the fact that they are registered there," Lifland wrote in a ruling in New York, noting that most assets were originally in the U.S.
The insolvent funds were first granted the preliminary injunction on Aug. 9 by effectively halting any pending lawsuits in the U.S.
"There are no employees or managers in the Cayman Islands, the investment manager for the funds is located in New York, the administrator that runs the back-office operations of the funds is in the United States along with the funds' books and records, and prior to the commencement of the foreign proceeding, all of the funds' liquid assets were located in the United States," Lifland wrote.
The two funds bet heavily on subprime mortgage loans and as defaults increased, creditors began to clamor for their collateral, leaving the funds short on cash.
According to an AP report, provisional liquidators working to unwind the funds in the Caymans estimate that the High-Grade Structured Credit Strategies Master Fund could see recoveries of $25 million, and the smaller High-Grade Structured Credit Strategies Enhanced Leverage Master Fund could see recoveries of less than $50 million.
29 Aug 2007
Hedge Funds Care Raise $40K For Children
The Hedge Funds Care Committee of Hope raised over $40,000 last week to support the prevention and treatment of child abuse and neglect. At the 2nd Annual No Limit Texas Hold ‘Em Poker Tournament, more than 100 players and equally as many spectators watched as the final 15 players in the tournament received valuable prizes, all of which were donated thanks to the efforts of Keith Friedman (Iron Financial).
The Grand Prize, donated by Horseshoe Casinos, was a trip for two to Las Vegas, including airfare and a three night stay at the winner’s choice of Caesar’s Palace, Paris or Rio (Harrah’s hotels).
The event was sponsored by the Junior League of Chicago, on July 19, 2007 at Joe’s Sports Bar in Chicago, and was underwritten by the 2007 Committee of Hope Sponsors.
The Other prizes included: Orbitz air travel certificates, an Apple iPhone donated by Sheffield Asset Management, Chicago Bulls, Blackhawks, White Sox and Cubs tickets, a spa package and shaving sets from 316 Club Barber Spa, a Harley Davidson for a Day compliments of Signature Days, and a Swiss Calibre men’s watch donated by Trader Monthly. In addition, the top 10 finishers each received a huge gift basket compliments of Horseshoe Casinos.
The tournament started with 11 tables of approximately 10 players each, and ran smoothly thanks to help from a crew of mini pit bosses and bank attendants.
The Committee of Hope is a Midwest Chapter committee comprised of young professionals in the hedge fund and alternative investment industry. The committee hosts two annual fundraisers, as well as quarterly happy hours to inform the local hedge fund industry about Hedge Funds Care and the programs it supports.
The Grand Prize, donated by Horseshoe Casinos, was a trip for two to Las Vegas, including airfare and a three night stay at the winner’s choice of Caesar’s Palace, Paris or Rio (Harrah’s hotels).
The event was sponsored by the Junior League of Chicago, on July 19, 2007 at Joe’s Sports Bar in Chicago, and was underwritten by the 2007 Committee of Hope Sponsors.
The Other prizes included: Orbitz air travel certificates, an Apple iPhone donated by Sheffield Asset Management, Chicago Bulls, Blackhawks, White Sox and Cubs tickets, a spa package and shaving sets from 316 Club Barber Spa, a Harley Davidson for a Day compliments of Signature Days, and a Swiss Calibre men’s watch donated by Trader Monthly. In addition, the top 10 finishers each received a huge gift basket compliments of Horseshoe Casinos.
The tournament started with 11 tables of approximately 10 players each, and ran smoothly thanks to help from a crew of mini pit bosses and bank attendants.
The Committee of Hope is a Midwest Chapter committee comprised of young professionals in the hedge fund and alternative investment industry. The committee hosts two annual fundraisers, as well as quarterly happy hours to inform the local hedge fund industry about Hedge Funds Care and the programs it supports.
28 Aug 2007
Iraqi Hedge Fund Escapes Market Turmoil
Iraqi hedge fund `The Babylon Fund´ announced today that they successfully managed to steer away from the general global financial meltdown seen lately.
Babylon's winning streak continued during July (and further into August) with a rise of 3,8% in the Babylon Fund's NAV-price.
Of the hedge fund's direct Iraqi holdings, bond yields steered higher upon a combination of dried-up flow and risk aversion factors partly based upon the perceived weakened state of the government whose success might be seen as being indirectly linked to the bond payment stream.
On the other hand, in the ISX stock market in Baghdad, prices rose strongly, as did value and volumes traded, as participants positioned themselves ahead of foreigners' entrance into the ISX, which was allowed as of 1st of August.
According to a statement, Babylon's aim is to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi-dependant securities. The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics, aiming to be regarded as an easy, safe and efficient Gateway towards investing into the region.
Babylon Fund is an open-ended mutual fund that primarily invests into large-cap Iraqi-dependant securities, mainly listed on the stock exchanges both in Iraq and in other countries.
Babylon's winning streak continued during July (and further into August) with a rise of 3,8% in the Babylon Fund's NAV-price.
Of the hedge fund's direct Iraqi holdings, bond yields steered higher upon a combination of dried-up flow and risk aversion factors partly based upon the perceived weakened state of the government whose success might be seen as being indirectly linked to the bond payment stream.
On the other hand, in the ISX stock market in Baghdad, prices rose strongly, as did value and volumes traded, as participants positioned themselves ahead of foreigners' entrance into the ISX, which was allowed as of 1st of August.
According to a statement, Babylon's aim is to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi-dependant securities. The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics, aiming to be regarded as an easy, safe and efficient Gateway towards investing into the region.
Babylon Fund is an open-ended mutual fund that primarily invests into large-cap Iraqi-dependant securities, mainly listed on the stock exchanges both in Iraq and in other countries.
27 Aug 2007
Hedge Fund Company Launches Real Estate Marketing Tool
Hedge fund backed Terablitz recently announced the launch of Terabitz Home Snapshots, which, according to the company, "Give the real estate professional an innovative solution that enables them to more effectively build their client base, and help those clients buy or sell a home.
California-based Terabitz was founded in 2006 by father and son Ashfaq and Kamran Munshi. The company is funded by Tudor Capital, part of the Tudor Hedge Fund family.
Home Snapshots combine the traditional listing information with slide shows, neighborhood and market data, and dozens of other “bitz” of local information relevant to the property. Essentially, they create a “home page” for each property or neighborhood with which consumers can interact. Home Snapshots can be emailed, instant messaged, linked to on blogs or websites, and dynamically updated, making the entire experience richer and more collaborative.
“Home Snapshots represent the first of many Terabitz solutions that will drive the success of our broker partners,” said Ashfaq Munshi, CEO of Terabitz. “We offer superior technology that helps brokers acquire and retain top agents, while continually improving their performance. We are thrilled to be working with such a high-caliber partner like Intero who exemplifies excellence and innovation in the industry.”
Intero Real Estate Services is the first broker partner to utilize Home Snapshots, prominently displaying thousands of its property snapshots on Terabitz.com.
Brokers can easily publish their existing MLS listings as Home Snapshots by simply providing Terabitz standard content feeds.
Terabitz is an online resource for consumers evaluating a real estate transaction. Property listings, neighborhood highlights, local market data, and local service providers can be accessed, stored, and shared and after the property transaction.
California-based Terabitz was founded in 2006 by father and son Ashfaq and Kamran Munshi. The company is funded by Tudor Capital, part of the Tudor Hedge Fund family.
Home Snapshots combine the traditional listing information with slide shows, neighborhood and market data, and dozens of other “bitz” of local information relevant to the property. Essentially, they create a “home page” for each property or neighborhood with which consumers can interact. Home Snapshots can be emailed, instant messaged, linked to on blogs or websites, and dynamically updated, making the entire experience richer and more collaborative.
“Home Snapshots represent the first of many Terabitz solutions that will drive the success of our broker partners,” said Ashfaq Munshi, CEO of Terabitz. “We offer superior technology that helps brokers acquire and retain top agents, while continually improving their performance. We are thrilled to be working with such a high-caliber partner like Intero who exemplifies excellence and innovation in the industry.”
Intero Real Estate Services is the first broker partner to utilize Home Snapshots, prominently displaying thousands of its property snapshots on Terabitz.com.
Brokers can easily publish their existing MLS listings as Home Snapshots by simply providing Terabitz standard content feeds.
Terabitz is an online resource for consumers evaluating a real estate transaction. Property listings, neighborhood highlights, local market data, and local service providers can be accessed, stored, and shared and after the property transaction.
Islamic Financial Services Board Hosts Forum
The Islamic Financial Services Board (IFSB) and the Financial Stability Institute (FSI) of the Bank for International Settlements today announced the presentation of "The European Challenge" it will be the 2nd Forum on Islamic Financial Services.
The forum will be held on the 5 & 6 of December, 2007 in Frankfurt, Germany. Deutsche Bundesbank is supporting the Forum.
The 2nd "European Challenge" has been organised in response to the increasing interest shown in Islamic financial services within and among European nations. The Forum will touch on the overview of the Islamic financial services industry as well as the different approaches towards it's implementation across the globe.
On a more global perspective, the Forum will also serve as a platform to discuss the development of related global prudential regulations for the Islamic financial services industry developed by the IFSB in comparison to Basel II.
Secretary General of the IFSB, Professor Rifaat Ahmed Abdel Karim, commenting on the importance of holding a Forum that caters to the European market said "It is important for the IFSB to understand the different regional markets in our efforts to facilitate the sound and stable growth of the Islamic financial services industry at global level. This Forum aims to be an interactive platform for facilitating a better understanding of the Islamic financial services industry from a European perpective."
The Forum follows the success of the inaugural one which was held in Luxembourg in November 2005. The 1st Forum was supported by the Centrale Banque Du Luxembourg and attended by over 150 delegates from 26 countries.
This one is expected to attract participants from among senior supervisors, finance officers, financial analysts, compliance officers, accountants, auditors, retail and private bankers, investment advisors, lawyers and academicians.
The forum will be held on the 5 & 6 of December, 2007 in Frankfurt, Germany. Deutsche Bundesbank is supporting the Forum.
The 2nd "European Challenge" has been organised in response to the increasing interest shown in Islamic financial services within and among European nations. The Forum will touch on the overview of the Islamic financial services industry as well as the different approaches towards it's implementation across the globe.
On a more global perspective, the Forum will also serve as a platform to discuss the development of related global prudential regulations for the Islamic financial services industry developed by the IFSB in comparison to Basel II.
Secretary General of the IFSB, Professor Rifaat Ahmed Abdel Karim, commenting on the importance of holding a Forum that caters to the European market said "It is important for the IFSB to understand the different regional markets in our efforts to facilitate the sound and stable growth of the Islamic financial services industry at global level. This Forum aims to be an interactive platform for facilitating a better understanding of the Islamic financial services industry from a European perpective."
The Forum follows the success of the inaugural one which was held in Luxembourg in November 2005. The 1st Forum was supported by the Centrale Banque Du Luxembourg and attended by over 150 delegates from 26 countries.
This one is expected to attract participants from among senior supervisors, finance officers, financial analysts, compliance officers, accountants, auditors, retail and private bankers, investment advisors, lawyers and academicians.
Australian Hedge Fund Up $20 Million
HFA Holdings, an Australian hedge fund manager that manages more than $3 billion, announced a surge in annual profit, and says the outlook is very positive.
Paul Jensen, cheif Executive at HFA, said the outlook for the company remained positive despite recent equity market volatility. Annual profit was $20.3 million, up 288%, while normalised profit, excluding one-offs, was up 157%.
HFA, which listed on the Australian stock exchange in April 2006, said the result beat its prospectus forecast guidance of a $13.9 million profit, by 46%. The hedge fund manager also announced that they plan on reopeninf two of their funds for investment in the first half of fiscal 2008.
The strong result reflected continued inflows into its hedge fund products, plus two capital raisings during the year. The declining share price forced HFA to postpone an estimated $700 million cash-and-scrip takeover of US counterpart and long-time investment partner Lighthouse Investment Partners.
HFA previously told the market that it had taken short positions on the US sub-prime mortgage market and was therefore benefiting from the crisis, but that hasn't stopped its shares falling from $3.00 on July 25 to a low of $1.65 on August 15.
With offices in Sydney, Melbourne, Brisbane and executives based in Perth and Hobart, HFA is a specialist funds management company providing absolute return fund products to retail, wholesale and institutional investors throughout Australia.
Paul Jensen, cheif Executive at HFA, said the outlook for the company remained positive despite recent equity market volatility. Annual profit was $20.3 million, up 288%, while normalised profit, excluding one-offs, was up 157%.
HFA, which listed on the Australian stock exchange in April 2006, said the result beat its prospectus forecast guidance of a $13.9 million profit, by 46%. The hedge fund manager also announced that they plan on reopeninf two of their funds for investment in the first half of fiscal 2008.
The strong result reflected continued inflows into its hedge fund products, plus two capital raisings during the year. The declining share price forced HFA to postpone an estimated $700 million cash-and-scrip takeover of US counterpart and long-time investment partner Lighthouse Investment Partners.
HFA previously told the market that it had taken short positions on the US sub-prime mortgage market and was therefore benefiting from the crisis, but that hasn't stopped its shares falling from $3.00 on July 25 to a low of $1.65 on August 15.
With offices in Sydney, Melbourne, Brisbane and executives based in Perth and Hobart, HFA is a specialist funds management company providing absolute return fund products to retail, wholesale and institutional investors throughout Australia.
22 Aug 2007
TS Launches Second Fund After First Success
Single manager hedge fund ThinkStrategy Capital Management LLC. today announced the launch of the TS Multi-Strategy Fund LP Class B.
The new class is an unleveraged version of an existing and successful TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of TS's current investments from which we selected the best performers. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
This new class will add to TS's record in the preservation of capital while producing positive investment returns in all economic environments with the goal of producing consistent returns for investors.
ThinkStrategy Capital Management, LLC. is an alternative asset management firm, which aims to provide innovative investment strategies which generate consistent solid rates of return for investors with low levels of risk.
The new class is an unleveraged version of an existing and successful TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of TS's current investments from which we selected the best performers. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
This new class will add to TS's record in the preservation of capital while producing positive investment returns in all economic environments with the goal of producing consistent returns for investors.
ThinkStrategy Capital Management, LLC. is an alternative asset management firm, which aims to provide innovative investment strategies which generate consistent solid rates of return for investors with low levels of risk.
13 Aug 2007
Hedge Fund Sponsors North Pole Swim
Investec announced today that British explorer and endurance swimmer, Lewis Gordon Pugh successfully completed the extraordinary challenge of being the first man to swim at the Geographic North Pole.
The 1km swim took 18 minutes and 50 seconds in freezing temperatures of minus 1.8º centigrade –the coldest waters a human has ever swum in – and was conducted in accordance with Channel Swimming Association Rules in just Speedo briefs, cap and goggles. It took place at 02.00 on July15th (it’s daylight all hours).
Pugh’s endeavour, sponsored by Investec and named The Investec North Pole Challenge, was made to visibly demonstrate the devastating impacts of climate change on our planet.
Lewis Gordon Pugh, nicknamed the Polar Bear, said: “I hope my swim will inspire world leaders to take climate change seriously. The decisions which they make over the next few years will determine the biodiversity of our world. I want my children, and their children, to know that polar bears are still living in the Arctic - these creatures are on the front line up here.
“I am obviously ecstatic to have succeeded but this swim is a triumph and a tragedy - a triumph that Icould swim in such ferocious conditions but a tragedy that it’s possible to swim at the North Pole.”He described the swim: “The water was absolutely black. I shook Jørgen Amundsen’s hand and then plunged into the sea. It was like jumping into a dark black hole. It was frightening. The pain was immediate and felt like my body was on fire. I was in excruciating pain from beginning to end and I nearly quit on a few occasions. It was without doubt the hardest swim of my life.
Hendrik du Toit, Chief Executive Officer of Investec Asset Management said, “We congratulate Lewis on this milestone achievement. We hope this world first today will inspire people to take the battle against climate change seriously. It would be wonderful if in 50 years time,an 87-year-old Lewis were once again able to walk, rather than swim at the North Pole.
Investec Asset Management is a specialist investment manager, the fund manages in excess of $60 billion on behalf of third party clients. Investec is based in the UK and Southern Africa with an international client base from the Americas, Europe, Asia the Middle East and Africa.
The 1km swim took 18 minutes and 50 seconds in freezing temperatures of minus 1.8º centigrade –the coldest waters a human has ever swum in – and was conducted in accordance with Channel Swimming Association Rules in just Speedo briefs, cap and goggles. It took place at 02.00 on July15th (it’s daylight all hours).
Pugh’s endeavour, sponsored by Investec and named The Investec North Pole Challenge, was made to visibly demonstrate the devastating impacts of climate change on our planet.
Lewis Gordon Pugh, nicknamed the Polar Bear, said: “I hope my swim will inspire world leaders to take climate change seriously. The decisions which they make over the next few years will determine the biodiversity of our world. I want my children, and their children, to know that polar bears are still living in the Arctic - these creatures are on the front line up here.
“I am obviously ecstatic to have succeeded but this swim is a triumph and a tragedy - a triumph that Icould swim in such ferocious conditions but a tragedy that it’s possible to swim at the North Pole.”He described the swim: “The water was absolutely black. I shook Jørgen Amundsen’s hand and then plunged into the sea. It was like jumping into a dark black hole. It was frightening. The pain was immediate and felt like my body was on fire. I was in excruciating pain from beginning to end and I nearly quit on a few occasions. It was without doubt the hardest swim of my life.
Hendrik du Toit, Chief Executive Officer of Investec Asset Management said, “We congratulate Lewis on this milestone achievement. We hope this world first today will inspire people to take the battle against climate change seriously. It would be wonderful if in 50 years time,an 87-year-old Lewis were once again able to walk, rather than swim at the North Pole.
Investec Asset Management is a specialist investment manager, the fund manages in excess of $60 billion on behalf of third party clients. Investec is based in the UK and Southern Africa with an international client base from the Americas, Europe, Asia the Middle East and Africa.
9 Aug 2007
Hedge Funds July Performance
According to a report from Chicago-based Hedge Fund Research Inc., hedge funds globally returned 0.49% in July. The gain, based on a sample of managers among the 6,500 surveyed, brought the average 2007 advance to 8%.
Macro-fund managers, who wager on trends in stocks, bonds and currencies worldwide, trailed peers in July with a 0.34% increase, bringing their returns to 5.9% on the year.
Early estimates from the HFN Hedge Fund Aggregate Average show +0.29% in July, the increase was the 2nd positive month in a row for hedge funds when the S&P 500 has been negative and 12th positive month in a row overall. Through the first seven months of 2007 the Aggregate is +7.65%, considerably outperforming the S&P 500 Total Return which ended June -3.10% and +6.01% YTD.
The influence of the difficulties facing subprime borrowers and lenders over the last few months began to be felt across most credit markets in July and filtered into equity markets near month's end. While there have been some high profile fund meltdowns in July, the reality of the hedge fund world is that despite their visibility, these funds under extreme stress represent a small percentage of a vast and diverse industry.
Whether when the dust settles the aggregate of all hedge funds is slightly positive or negative, the focus should be on the continuing significant outperformance of the group from broad equity markets. While results are still coming in, it appears performance in July was driven by funds with exposure to emerging markets and those able to take advantage of strong interest rate and commodity moves. The HFN Emerging Markets Average was +2.47% in July and is +14.51% YTD and was aided by strong moves in China, India and Russia's equity markets. The HFN Latin America Average was +2.49% in July and +19.81% YTD.
Macro-fund managers, who wager on trends in stocks, bonds and currencies worldwide, trailed peers in July with a 0.34% increase, bringing their returns to 5.9% on the year.
Early estimates from the HFN Hedge Fund Aggregate Average show +0.29% in July, the increase was the 2nd positive month in a row for hedge funds when the S&P 500 has been negative and 12th positive month in a row overall. Through the first seven months of 2007 the Aggregate is +7.65%, considerably outperforming the S&P 500 Total Return which ended June -3.10% and +6.01% YTD.
The influence of the difficulties facing subprime borrowers and lenders over the last few months began to be felt across most credit markets in July and filtered into equity markets near month's end. While there have been some high profile fund meltdowns in July, the reality of the hedge fund world is that despite their visibility, these funds under extreme stress represent a small percentage of a vast and diverse industry.
Whether when the dust settles the aggregate of all hedge funds is slightly positive or negative, the focus should be on the continuing significant outperformance of the group from broad equity markets. While results are still coming in, it appears performance in July was driven by funds with exposure to emerging markets and those able to take advantage of strong interest rate and commodity moves. The HFN Emerging Markets Average was +2.47% in July and is +14.51% YTD and was aided by strong moves in China, India and Russia's equity markets. The HFN Latin America Average was +2.49% in July and +19.81% YTD.
All Business Schools Launch Finance Career Resource Guide
With investment banking giant UBS forecasting the world economy to grow about 3.5 percent each year and rapid proliferation of multi-billion dollar hedge funds and private equity funds, All Business Schools announced the launch of it Finance Career Resource Guide. With pages devoted to both specific finance career paths and different types of finance degrees, the guide provides crucial information for those considering a career in one of the fastest growing and most lucrative industries.
Doug Rosenberg, product manager for All Business Schools, commented, "With job options ranging from high-tech, high-status investment banking to personable, interactive financial planning, there are a number of ways people can take advantage of the industry's consistent growth."
Finance salaries are among the highest in the business world, Rosenberg elaborates, saying, "finance is one of the few fields in which the earning potential is almost limitless."
To give readers a clear look at both aspects of entering a career in hedge fund finance, the resource center is organized into a finance degrees section and a finance careers section. The degrees section presents an overview of finance bachelor's, master's, MBA and PhD degrees, providing basic facts and sample program curricula. The careers section discusses finance careers at a general level and also breaks down three of the most popular finance careers--investment banking, corporate finance and financial planning--into career path charts that present a snapshot of entry-, mid- and high-level positions.
All Business Schools is a comprehensive online publisher of accredited business degree programs and business career resources. Since 2002, All Business Schools has been helping match millions of highly qualified prospective students with the schools that best meet their education needs.
Doug Rosenberg, product manager for All Business Schools, commented, "With job options ranging from high-tech, high-status investment banking to personable, interactive financial planning, there are a number of ways people can take advantage of the industry's consistent growth."
Finance salaries are among the highest in the business world, Rosenberg elaborates, saying, "finance is one of the few fields in which the earning potential is almost limitless."
To give readers a clear look at both aspects of entering a career in hedge fund finance, the resource center is organized into a finance degrees section and a finance careers section. The degrees section presents an overview of finance bachelor's, master's, MBA and PhD degrees, providing basic facts and sample program curricula. The careers section discusses finance careers at a general level and also breaks down three of the most popular finance careers--investment banking, corporate finance and financial planning--into career path charts that present a snapshot of entry-, mid- and high-level positions.
All Business Schools is a comprehensive online publisher of accredited business degree programs and business career resources. Since 2002, All Business Schools has been helping match millions of highly qualified prospective students with the schools that best meet their education needs.
2 Aug 2007
Austrailan Funds Suffer Losses
Australia's Macquarie Bank this week warned retail investors with positions in two of its high yield investment hedge funds are set to suffer losses of up to 25 percent. In comes as the U.S. sub prime mortgage market continues to weaken with Macquarie predicting related losses of up to $300 million.
According to Macquarie Fortress Investments director Peter Lucas, the average price of assets in the portfolio has dropped by 4 percent in the last month. Macquarie Bank follows Basis Capital and Absolute Capital as investment firms caught up in the U.S. mortgage crisi, Macquarie Bank produced record earnings in 2007.
Macquarie is the third Australian institution to flag possible losses as spooked investors have marked down the value of credit assets, with potential losses magnified by borrowings.
However, yesterday Macquarie spokeswoman Lisa Jamieson said that the bank's earnings won't be affected after Macquarie Fortress Investments Ltd., which had $873 million in two funds, was forced to sell assets to avoid breaching loan agreements.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
According to Macquarie Fortress Investments director Peter Lucas, the average price of assets in the portfolio has dropped by 4 percent in the last month. Macquarie Bank follows Basis Capital and Absolute Capital as investment firms caught up in the U.S. mortgage crisi, Macquarie Bank produced record earnings in 2007.
Macquarie is the third Australian institution to flag possible losses as spooked investors have marked down the value of credit assets, with potential losses magnified by borrowings.
However, yesterday Macquarie spokeswoman Lisa Jamieson said that the bank's earnings won't be affected after Macquarie Fortress Investments Ltd., which had $873 million in two funds, was forced to sell assets to avoid breaching loan agreements.
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
1 Aug 2007
Hedge Funds Thriving In Europe
Hedge funds are thriving in Europe, thanks to increased interest from pension funds and other institutions, both European and U.S. Regulatory changes that have made it easier for such investors to put money in alternatives.
The 50 firms in the Alpha Europe Hedge Fund 50 ranking collectively managed about $300 billion as of December 31, 2006, nearly 21 percent of the global hedge fund industry's then $1.46 trillion in assets.
The Alpha Europe Hedge Fund 50 has seen its asset totals soar since 2006. A year ago, no European firm managed close to $15 billion in single-manager hedge fund assets -- this year, three firms have more than that, led by Barclays Global Investors. BGI's $18.95 billion narrowly tops Man Investments, No. 2 with $18.8 billion in single-manager assets. At No. 3, with $15.83 billion in assets, is GLG Partners, led by former Goldman, Sachs & Co. partners Noam Gottesman and Pierre Lagrange.
For the first time in the four-year history of Alpha's Europe Hedge Fund 50 ranking, each of the top ten firms are headquartered in London, cementing the city's position as the hedge fund capital of Europe. To be included in this year's ranking, a firm had to have more than $2 billion in hedge fund assets.
The 50 firms in the Alpha Europe Hedge Fund 50 ranking collectively managed about $300 billion as of December 31, 2006, nearly 21 percent of the global hedge fund industry's then $1.46 trillion in assets.
The Alpha Europe Hedge Fund 50 has seen its asset totals soar since 2006. A year ago, no European firm managed close to $15 billion in single-manager hedge fund assets -- this year, three firms have more than that, led by Barclays Global Investors. BGI's $18.95 billion narrowly tops Man Investments, No. 2 with $18.8 billion in single-manager assets. At No. 3, with $15.83 billion in assets, is GLG Partners, led by former Goldman, Sachs & Co. partners Noam Gottesman and Pierre Lagrange.
For the first time in the four-year history of Alpha's Europe Hedge Fund 50 ranking, each of the top ten firms are headquartered in London, cementing the city's position as the hedge fund capital of Europe. To be included in this year's ranking, a firm had to have more than $2 billion in hedge fund assets.
31 Jul 2007
China Beats Japan As Asia's Top Hedge Fund Destination
According to Alpha Magazine's list of the region's biggest single-manager hedge funds, investors are rushing into China to capitalize on the country's soaring equity market, and Asia's native hedge funds are cashing in on the action.
Tokyo-based Sparx Group Co. topped the ranking for the second year in a row. Sparx, one of Japan's first money managers to get into hedged investing, now manages $6.7 billion. The next two firms, Hong Kong-based Value Partners and Singapore's Arisaig Partners, make their debut on the Asia Hedge Fund 25, managing $4.8 billion and $2.1 billion, respectively.
Despite their domination in the 2006 Asia 25 ranking, Japanese firms clearly take a back seat to China-based firms this year. A year ago four of the top ten firms were headquartered in Japan and accounted for one-third of the total assets managed by the Asia 25. his year, weakened by poor Japanese equities performance, only two of the top ten firms are Japanese.
China's equity market picks up where Japan's leaves off; the MSCI China index returned 78.7 percent in 2006, spurring the growth of China-focused funds under firms like Value Partners and Arisaig Partners.
The ten biggest firms in Alpha's exclusive Asia Hedge Fund 25 are:
Rank; Firm Name; Firm/Fund capital ($ millions)
1: Sparx Group Co.; (Tokyo, Japan); $6,651
2 Value Partners; (Central, Hong Kong); $4,772
3 Arisaig Partners; (Singapore); $2,100*
4 Penta Investment Advisors; (Central, Hong Kong); $1,910
5 Ward Ferry Mgmt; (Central, Hong Kong); $1,781
6 Lapp Capital; (Singapore); $1,400*
7 Tree Line Investment Mgmt.; (Central, Hong Kong); $1,300*
8 Artradis Fund Mgmt.; (Singapore); $1,220
9 Tantallon Capital; (Singapore); $1,092
10 Asuka Asset Mgmt.; (Tokyo, Japan); $1,034
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
Tokyo-based Sparx Group Co. topped the ranking for the second year in a row. Sparx, one of Japan's first money managers to get into hedged investing, now manages $6.7 billion. The next two firms, Hong Kong-based Value Partners and Singapore's Arisaig Partners, make their debut on the Asia Hedge Fund 25, managing $4.8 billion and $2.1 billion, respectively.
Despite their domination in the 2006 Asia 25 ranking, Japanese firms clearly take a back seat to China-based firms this year. A year ago four of the top ten firms were headquartered in Japan and accounted for one-third of the total assets managed by the Asia 25. his year, weakened by poor Japanese equities performance, only two of the top ten firms are Japanese.
China's equity market picks up where Japan's leaves off; the MSCI China index returned 78.7 percent in 2006, spurring the growth of China-focused funds under firms like Value Partners and Arisaig Partners.
The ten biggest firms in Alpha's exclusive Asia Hedge Fund 25 are:
Rank; Firm Name; Firm/Fund capital ($ millions)
1: Sparx Group Co.; (Tokyo, Japan); $6,651
2 Value Partners; (Central, Hong Kong); $4,772
3 Arisaig Partners; (Singapore); $2,100*
4 Penta Investment Advisors; (Central, Hong Kong); $1,910
5 Ward Ferry Mgmt; (Central, Hong Kong); $1,781
6 Lapp Capital; (Singapore); $1,400*
7 Tree Line Investment Mgmt.; (Central, Hong Kong); $1,300*
8 Artradis Fund Mgmt.; (Singapore); $1,220
9 Tantallon Capital; (Singapore); $1,092
10 Asuka Asset Mgmt.; (Tokyo, Japan); $1,034
Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net
Hedge Fund Barbarian Films Announces Alliance With Sand Dollar Capital
Hedge fund Barbarian Films LLC has announced an alliance with SandDollar Capital LLC, a private equity firm founded by The Hennessee Group principals Charles Gradante and E. Lee Hennessee.
SandDollar Capital's Charles Gradante said, “We have seen consistent interest from individual investors, funds and institutions for non-correlated alternative investments. We see film investment as a logical solution however for some time were unable to find the right business model that would offer engaging returns while effectively managing the downside risks typically associated with film investment”.
Lee Hennessee added, “Barbarian is the first film fund to capitalize on the inefficiencies in the current film investment landscape”. SandDollar Capital LLC structures financing from professional investors and institutional sources on behalf of Private Equity funds.
Barbarian has also recently formed ties with the Endeavor Agency and has announced its first film investments including: Powder Blue featuring Forrest Whitaker, Jessica Biel and Ray Liotta.
Barbarian Films is an investment fund founded by a trio of long time entertainment insiders that invests in structured independently produced film platforms. The hedge fund includes a unique investment methodology and slates of projects from best-in-breed producers and production companies which collectively have generated over $2 Billion (US) in combined box office returns.
“We have used our intimate relationships with consistently successful, award winning producers to create a unique fund which is the first of its kind to approach lower budget film slates in a significant way.” said Aaron Kaufman, Managing Member of Barbarian Films.
SandDollar Capital LLC’s alliance with Barbarian is a multi-year relationship, which will include Barbarian’s future funds and investment vehicles.
SandDollar Capital's Charles Gradante said, “We have seen consistent interest from individual investors, funds and institutions for non-correlated alternative investments. We see film investment as a logical solution however for some time were unable to find the right business model that would offer engaging returns while effectively managing the downside risks typically associated with film investment”.
Lee Hennessee added, “Barbarian is the first film fund to capitalize on the inefficiencies in the current film investment landscape”. SandDollar Capital LLC structures financing from professional investors and institutional sources on behalf of Private Equity funds.
Barbarian has also recently formed ties with the Endeavor Agency and has announced its first film investments including: Powder Blue featuring Forrest Whitaker, Jessica Biel and Ray Liotta.
Barbarian Films is an investment fund founded by a trio of long time entertainment insiders that invests in structured independently produced film platforms. The hedge fund includes a unique investment methodology and slates of projects from best-in-breed producers and production companies which collectively have generated over $2 Billion (US) in combined box office returns.
“We have used our intimate relationships with consistently successful, award winning producers to create a unique fund which is the first of its kind to approach lower budget film slates in a significant way.” said Aaron Kaufman, Managing Member of Barbarian Films.
SandDollar Capital LLC’s alliance with Barbarian is a multi-year relationship, which will include Barbarian’s future funds and investment vehicles.
25 Jul 2007
Law Firm Considering Legal Action Against "Bear Funds"
The Law Firm of Klayman & Toskes, P।A. announced that it is investigating the possibility of taking legal action against Bear Stearns & Co., Inc on behalf of investors who lost money in the Bear Stearns High-Grade Structured Credit Strategies Fund and the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Fund ("the Bear Funds").
This investigation is being launched on the heels of Bear Stearns' July 18 announcement that "there is effectively no value left for the investors in the Enhanced Leverage Fund and very little value left for the investors in the High-Grade Fund।"
Over the past few years, many brokerage firms, including Bear Stearns, bundled mortgages and sold them to investors as interest-paying bonds. Accompanying these products came an alphabet soup of securities like CMOs, CDOs, RMBSs and Alt-As. Most of these products are part of hedge funds, and were purchased by wealthy investors and institutions.
However, some individuals were unsuitably steered to invest in these risky products. Many of these investors and institutions did not understand how these products work, nor were the risks of owning these products fully explained to them at the time of purchase.
Combined, the Bear Funds had investor capital of about $1.56 billion. With this capital, and additional leverage taken out on the capital, Bear Stearns bet heavily on the market for subprime mortgages and invested in thinly traded collateralized debt obligations. Its gamble turned out to be wrong. As a result of the slumping U.S. housing market, the Bear Funds have collapsed within a very short period of time, and investors have lost about $1.9 billion.
Because of the collapse of the Bear Funds, K&T anticipates that it will be filing numerous claims on behalf of institutions and individuals who invested in these Funds. Moreover, as Federal Reserve Chairman Ben Bernanke has said that losses from the subprime mortgage fallout could reach $100 billion, K&T is also looking into the possibility of filing claims against other large brokerage firms who sustained losses in their mortgage-backed securities and subprime mortgage products.
K&T represents high-net worth investors throughout the nation in securities litigation and arbitration matters, against major Wall Street brokerage firms for securities violations including misuse of margin, failure to supervise, unsuitability, and misrepresentation and omission of material fact.
This investigation is being launched on the heels of Bear Stearns' July 18 announcement that "there is effectively no value left for the investors in the Enhanced Leverage Fund and very little value left for the investors in the High-Grade Fund।"
Over the past few years, many brokerage firms, including Bear Stearns, bundled mortgages and sold them to investors as interest-paying bonds. Accompanying these products came an alphabet soup of securities like CMOs, CDOs, RMBSs and Alt-As. Most of these products are part of hedge funds, and were purchased by wealthy investors and institutions.
However, some individuals were unsuitably steered to invest in these risky products. Many of these investors and institutions did not understand how these products work, nor were the risks of owning these products fully explained to them at the time of purchase.
Combined, the Bear Funds had investor capital of about $1.56 billion. With this capital, and additional leverage taken out on the capital, Bear Stearns bet heavily on the market for subprime mortgages and invested in thinly traded collateralized debt obligations. Its gamble turned out to be wrong. As a result of the slumping U.S. housing market, the Bear Funds have collapsed within a very short period of time, and investors have lost about $1.9 billion.
Because of the collapse of the Bear Funds, K&T anticipates that it will be filing numerous claims on behalf of institutions and individuals who invested in these Funds. Moreover, as Federal Reserve Chairman Ben Bernanke has said that losses from the subprime mortgage fallout could reach $100 billion, K&T is also looking into the possibility of filing claims against other large brokerage firms who sustained losses in their mortgage-backed securities and subprime mortgage products.
K&T represents high-net worth investors throughout the nation in securities litigation and arbitration matters, against major Wall Street brokerage firms for securities violations including misuse of margin, failure to supervise, unsuitability, and misrepresentation and omission of material fact.
The Expanding Hedge Fund Practice Of Finn Dixon & Herling
Finn Dixon & Herling LLP announced today that they have significantly expanded their hedge fund practice.
The law firm recently made a number of lateral hires, resulting in what is believed to be the largest hedge fund practice group at a Connecticut law firm. In particular, Matthew Eisenberg, a prominent hedge fund attorney formerly of the law firm of Cobb & Eisenberg LLC, became a partner of the firm in the first quarter of 2007.
Mr। Eisenberg joins partners Harold B. Finn and Erik Bergman as leaders of the firm’s Hedge Fund/Alternative Investment Fund practice group. They are supported by an experienced team of attorneys and paralegals.
Brett Dixon, the firm’s administrative partner, stated “We are very excited about the significant recent growth of our hedge fund practice। The exceptional team of legal professionals that we have assembled provides Finn Dixon with substantially increased cumulative experience and capacity with regard to fund structurings and formations, as well as investment adviser and broker-dealer registration and compliance matters.”
Mr। Eisenberg added, “Finn Dixon’s hedge fund practice group works closely with the firm’s tax, private equity, mergers & acquisitions, banking/finance, employment law and litigation practice groups. These areas of expertise are critical to a sophisticated hedge fund practice, given the increasing complexity and hybridization of fund products and the business/regulatory environments in which they operate. Furthermore, Finn Dixon’s 'boutique' approach to client servicing, which emphasizes partner access and an individualized approach to client relationships, is well suited to the demands of fund managers.”
Finn Dixon provides a broad spectrum of legal services to the alternative investment community. Clients include hedge funds, funds of funds, private equity funds, commodity pools, investment advisers, broker-dealers and third party marketers. The firm's fund manager clients, ranging in size from $100 million to $10 billion, are located throughout North America, as well as in Europe and Asia.
The law firm recently made a number of lateral hires, resulting in what is believed to be the largest hedge fund practice group at a Connecticut law firm. In particular, Matthew Eisenberg, a prominent hedge fund attorney formerly of the law firm of Cobb & Eisenberg LLC, became a partner of the firm in the first quarter of 2007.
Mr। Eisenberg joins partners Harold B. Finn and Erik Bergman as leaders of the firm’s Hedge Fund/Alternative Investment Fund practice group. They are supported by an experienced team of attorneys and paralegals.
Brett Dixon, the firm’s administrative partner, stated “We are very excited about the significant recent growth of our hedge fund practice। The exceptional team of legal professionals that we have assembled provides Finn Dixon with substantially increased cumulative experience and capacity with regard to fund structurings and formations, as well as investment adviser and broker-dealer registration and compliance matters.”
Mr। Eisenberg added, “Finn Dixon’s hedge fund practice group works closely with the firm’s tax, private equity, mergers & acquisitions, banking/finance, employment law and litigation practice groups. These areas of expertise are critical to a sophisticated hedge fund practice, given the increasing complexity and hybridization of fund products and the business/regulatory environments in which they operate. Furthermore, Finn Dixon’s 'boutique' approach to client servicing, which emphasizes partner access and an individualized approach to client relationships, is well suited to the demands of fund managers.”
Finn Dixon provides a broad spectrum of legal services to the alternative investment community. Clients include hedge funds, funds of funds, private equity funds, commodity pools, investment advisers, broker-dealers and third party marketers. The firm's fund manager clients, ranging in size from $100 million to $10 billion, are located throughout North America, as well as in Europe and Asia.
27 Jun 2007
Hedge Fund Combines With Freedom In $3.4 Billion Dollar Deal
Hedge fund manager GLG Partners announced that it plans to access the public markets through a reverse acquisition transaction with Freedom Acquisition Holdings, Inc.
This transaction values GLG at approximately $3.4 billion, in order to finance the acquisition of GLG, Freedom will use the proceeds from its initial public offering and borrow the balance from a third party lender to obtain the $1 billion to pay the cash portion of the purchase price. In addition, Freedom and its subsidiaries will issue 230 million shares of common stock valued at $2.4 billion to the GLG equity holders.
Under the terms of the agreement, the owners of hedge fund manager GLG will receive $1 billion in cash and 230 million shares of Freedom common stock. The combined company will be named GLG Partners, Inc. Shares of the combined company are expected to trade on the New York Stock Exchange under the ticker symbol "GLG".
GLG is the largest independent alternative investment manager in Europe with over $20 billion in assets under management and the eleventh largest alternative asset manager in the world. GLG has built a highly scalable investment platform, infrastructure and support system, which represents a combination of world-class investment talent, cutting-edge technology and rigorous controls and risk management. GLG manages over 40 funds, as well as managed accounts for high net worth individuals and institutions, using both alternative and long only strategies and products.
"This strategic transaction is an important step in building GLG's global business, affording us the opportunity to increase brand awareness and expand in major targeted markets, including the US, Middle East and Asia," said Noam Gottesman, Founder, Managing Director and Co-CEO of GLG.
This transaction values GLG at approximately $3.4 billion, in order to finance the acquisition of GLG, Freedom will use the proceeds from its initial public offering and borrow the balance from a third party lender to obtain the $1 billion to pay the cash portion of the purchase price. In addition, Freedom and its subsidiaries will issue 230 million shares of common stock valued at $2.4 billion to the GLG equity holders.
Under the terms of the agreement, the owners of hedge fund manager GLG will receive $1 billion in cash and 230 million shares of Freedom common stock. The combined company will be named GLG Partners, Inc. Shares of the combined company are expected to trade on the New York Stock Exchange under the ticker symbol "GLG".
GLG is the largest independent alternative investment manager in Europe with over $20 billion in assets under management and the eleventh largest alternative asset manager in the world. GLG has built a highly scalable investment platform, infrastructure and support system, which represents a combination of world-class investment talent, cutting-edge technology and rigorous controls and risk management. GLG manages over 40 funds, as well as managed accounts for high net worth individuals and institutions, using both alternative and long only strategies and products.
"This strategic transaction is an important step in building GLG's global business, affording us the opportunity to increase brand awareness and expand in major targeted markets, including the US, Middle East and Asia," said Noam Gottesman, Founder, Managing Director and Co-CEO of GLG.
25 Jun 2007
Independent Valuations And Hedge Fund Risk Control
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.
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%.
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