Turkey Investment Fund Launch

Strateji Asset Management this week announced a newly launched equity hedge fund, the VV Madaus Strategy Turkey. The new fund is Euro based with a 50.000 mimimum investment($73.000), a 1.5% management fee and a 10% performance fee.

The Luxembourg based fund is registered for sales and marketing in Germany and Austria, with signed distribution agreements with eight major banks across Germany, Austria, Luxembourg, Switzerland and other countries.

Strateji was founded in Istanbul in 1995 and has approximately $85 million in assets under management. They have partnered with Berlin based ValVeri Invest GmbH, and Munich based Madaus Capital Partners to produce this fund.

Brazilian Hedge Fund Manager AFX Acquired by $20 Trillion NY Mellon Corporation

Hedge fund manager ARX Capital Management has been acquired by The Bank of New York Mellon Corporation.

The Brazilian hedge fund manager is headquartered in Rio de Janeiro, Brazil, and specialises in multi-strategy, long/short and long only investment strategies and has more than $2.8 billion in assets under management.

Founded in 2001, the company manages 20 equity and hedge funds, in domestic and offshore versions. ARX will be integrated with BNY Mellon Asset Management Brasil with the combined business becoming one of the leading asset managers in Brasil.

Jose Alberto Tovar, CEO of ARX Capital Management, will become the head of the integrated asset management business in Brazil. "We are already seeing new business as a result of the acquisition which is testament to our teams working successfully during integration." Tovar said.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt.

Alex Akesson
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Emerging Markets Fund Of Hedge Funds Launched By Matrix

West Palm Beach (HedgeCo.Net)- Matrix announced the launch a new fund of hedge funds (FOHF), the Matrix Emerging Markets Index Fund. The FOHF is designed to allow participation in the upside of emerging markets, whilst reducing downside risk. The initial offering opens on the 28th of January through the 20th of February 2007.

The FOHF is being managed by Maxam Capital Management LLC, with approximately 40 underlying hedge funds, the portfolio will be broadly diversified across emerging market regions and asset classes.

According to the predicted launch portfolio of the new fund, back tested, the FOHF would have provided total returns of 305% but with a maximum drawdown of only 9.71% over the period from the beginning of 2000 to the end of November 2007.

"The portfolio will consist of around 40 Underlying hedge funds heavily diversified across the Far East, Eastern Europe, Latin America and the Middle East and will include equities, debt, distressed securities and currency managers, " Bridget Guerin, managing director of Matrix Money Management said, "The managers in the portfolio will be able to hedge out risk via short exposure and other techniques."

Hedge Fund Scam Artist to be Deported

Ayferafat Yalincak, also known as "Jackie Yalincak," and "Irene Kelly," age 50, has been ordered deported to her native Turkey. Her son, Hakan Yalincak, also known as "Hagen Yalincak," age 21, also a Turkish citizen, may also be deported after he completes his 3.5 year sentence, according to officials.

The mother and son team were charged in March of 2007 with operating a multi-million dollar investment hedge fund fraud scheme. According to documents filed with the Court and statements made in court, Ayferafat Yalincak and Hakan Yalincak solicited approximately $7 million from several investors for their fake hedge fund.

The conspiracy charge carried a maximum term of imprisonment of five years and a fine of up to $250,000. She completed her prison term in November after getting credit for serving more than 14 months in prison before her sentencing. She is now in the custody of federal immigration officials.

Prosecutors say Hakan Yalincak charmed his way into the exclusive world of Greenwich high finance by posing as an heir to a wealthy Turkish family. He moved counterfeit checks and brokered deals with a Kuwaiti financier. Ayferafet Yalincak told a federal judge last year that she attended meetings with investors and allowed her son to present her as a member of an exceedingly wealthy Turkish family who was going to invest millions in his hedge fund.

Prosecutors say Ayferafet Yalincak was responsible for an intended loss of $5.3 million and an actual loss of $3.9 million after some of the money was returned to investors.

Mutual Fund to Replicate Hedge Fund in Japan

BNP Paribas Securities announced plans to launch a mutual fund in Japan which will go after similar investment returns to those generated by hedge funds.

The mutual fund will target regional banks and other institutional investors replicating the structure and investment methods of hedge funds.

Japanese regional banks have begun to hold back on hedge fund investments since the requirements for new capital ratios mandate stricter assessment of credit risks for institutions. Since this move last year by the Bank for International Settlements, a growing number of overseas brokerages have begun offering mutual funds and other investments that replicate methods adopted by hedge funds but offer greater transparency.

A Canadian asset management company in which BNP Paribas holds a stake will oversee management of the fund. Because the fund invests in exchange-traded funds and bond futures, it offers higher liquidity and lower costs compared with individual hedge funds charging high fees, according to the Canadian firm.

Alternative Hedge Fund Website

Interesting site here at; Albourne Viilage.com. They have a Mayor, a Town Hall, and an entire village that you can become a resident of.

I like the set up and the alternate assumation of assignation, if you will. Anyhoo, touch base with me if you find any cool investing sites as differentially assimilated.

Also see; AdultVest.com (No connection to Alborne Village)

SMH Capital Fined $450 K for Improper Hedge Fund Sales

The Financial Industry Regulatory Authority (FINRA) announced that it has fined a Houston company, SMH Capital Inc., $450,000 for failing to adopt adequate procedures in its prime brokerage and soft dollar services to hedge funds.

As a result, SMH made improper payments of $325,000 in soft dollars to a hedge fund manager. The firm's failures also included drafting and distributing hedge fund sales materials that did not adequately disclose material investment risks to potential hedge fund investors.

In addition to the fine, SMH was ordered to retain an Independent Consultant to conduct a comprehensive review of the adequacy of the firm's policies, systems, procedures and training with regard to its hedge fund operation.
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Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement said, "As broker-dealers increasingly provide services to hedge funds, they need to carefully tailor their supervisory systems and procedures to ensure they guard against conflicts of interest that result in securities law violations," Merrill said, "SMH's inadequate procedures resulted in the firm making soft dollar payments without a reasonable inquiry into red flags indicating the payments were improper."

FINRA, the Financial Industry Regulatory Authority, is the largest non-governmental regulator for all securities firms doing business in the United States.

In 2006, members of the public used this service to conduct more than 4.7 million searches for existing brokers or firms and requested more than 207,000 reports in cases where disclosable information existed on a broker or firm.

Vesuvius Hedge Fund Launch

Magma Fund Advisors, Ltd announced the launch of their first hedge fund, the Cayman domiciled Vesuvius Investment Fund, which opened its doors in January, 2008.

The new hedge fund was formed for a select group of international investors, using approximately 10% of the funds gross assets to trade S&P 500 futures contracts based on trends forecasted by Xybemomics.

With Citigroup Global Markets as prime broker, the hedge fund has a 12 month lock up period, a 2% management fee and 20% as performance fee. Vesuvius has a minimum investment of $1,000,000.

The Vesuvius Investment Fund will also, as secondary investment strategy, achieve consistent long-term capital appreciation by using approximately 90% of the hedge fund's assets to hold cash, or other risk adverse positions, in order to offset the risk associated with trading futures.

Magma Fund Advisors was founded in 2007 to secure high quality investment returns for institutional investors and high net worth individuals by applying a diverse range of investment products.

Hedge Funds Not a `Lame Duck´ in Northern Rock Bid

Hedge funds SRM Global and RAB Capital over the weekend announced their reasons for blocking the takeover of Northern Rock, saying their bid is still a viable one.

"It is nothing like the "lame duck" that some would have you believe," said the hedge fund SRM in a statement. "Based on the company's stated guidance regarding its valuation, SRM believes that the company's book value is materially in excess of its current share price."

Major Northern Rock shareholder and fellow hedge fund RAB Capital said that it believes the bank will be able to repay the billions of pounds loaned to it by the Bank of England "with careful guidance and support of its shareholders".

SRM, with the backing of RAB Capital, is seeking support for shareholder resolutions next week that would prevent Northern Rock from selling itself or changing its capital structure without the support of shareholders.

Both SRM and RAB are in support of a bid by Olivant Partners for Northern Rock, rivaling a bid led by Richard Branson's Virgin Group.

"SRM believes that any sale of assets and/or business of the company at below its true value is detrimental to the company and to its shareholders and would inhibit a timely and complete repayment of the Bank of England facilities," the hedge fund said.

Northern Rock has been after a reasonable bid since it became a casualty in the global credit crisis this year.

Dow Jones Top Hedge Fund Trades of 2007

Dow Jones Hedge Fund Trades announced in a a press release today the annual list of the best and boldest hedge fund moves.

Among the top hedge fund trades were two deals by Atticus Management, which resulted in a collective profit of nearly $1.2 billion for the firm. All told, the "Big 10" hedge fund trades garnered profits of more than $3 billion for their respective investors.

Top Trade #1: Freeport McMoran Copper & Gold

Firm: Atticus Management

Profit: $800 million

The New York-based hedge fund hit the mother lode for the second year in the row, scoring paper gains of at least $800 million through its holding in the mining giant.

Top Trade #2: MBIA Inc., Ambac Financial

Firm: Pershing Square Capital Management

Profit: $500+ million

William Ackman's longtime gamble that bond insurance companies would run into trouble finally paid off this year as mortgage loans to high-risk borrowers started going bad and credit markets stumbled.

Top Trade #3: Foster Wheeler

Firm: Tontine Partners

Profit: $426 million

Sage investments in engineering and construction companies helped cushion the Greenwich, Conn.-based firm's losses in finance and housing.

Top Trade #4: Union Pacific, Other U.S. Railroads

Firm: Atticus Management

Profit: $387 million

A counterintuitive bet in a sector that typically slows down as an economic cycle peaks paid off handsomely for Timothy Barakett's shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.

Top Trade #5: First Solar

Firm: Maverick Capital

Profit: $350+ million

After a stormy 2006, Maverick rebounded in 2007 thanks to its investments in solar and alternative energy. First Solar was one of the sector's hottest performers.

Top Trade #6: Crown Castle International, American Tower

Firm: Glenview Capital Management

Profit: $319 million

Larry Robbins' New York-based hedge fund got all the right signals when it targeted the wireless towers sector. The trades crowned a successful year that saw the firm up 24%.

Top Trade #7: CF Industries

Firm: Dawson-Herman Capital Management

Profit: $160 million

Ethanol companies suffered this year, but taking a long view of the biofuels sector helped the New York-based firm cultivate a neat return from the fertilizer company.

Top Trade #8: Onyx Pharmaceuticals

Firm: Meditor Capital Management

Profit: $155 million

Having booked some profits in Onyx at the beginning of the year, the U.K.- based firm held on to the company's shares to benefit from a further jump when its cancer drug beat analysts' estimates.

Top Trade #9: Chipotle Mexican Grill

Firm: Tremblant Capital Group

Profit: $95 million

When other firms were asking for the check, Brett Barakett went back for seconds in this fast-food chain that promises healthy fare and delivered a healthy profit for the $4 billion-plus firm.

Top Trade #10: United Therapeutics Corp.

Firm: Shunway Capital Partners

Profit: $73 million

The New York-based firm gradually increased its stake in United Therapeutics during the year, gaining big-time on good news about the company's pulmonary hypertension drug.

To ensure the accuracy of this collection to top trades, Dow Jones Hedge Fund Trades only included trades that were verified directly with fund managers or through securities filings.

Blackstone and Citadel looking at stakes in Australia

The Australian Financial Review reported that US hedge funds Blackstone and Citadel have both flown teams into Australia to discuss buying a stake in troubled shopping centre owner Centro Properties Group. Australian institutions including AMP, Colonial First State and listed property group DB RREEF Trust have also expressed interest in investing in the group, the newspaper said.

Centro said yesterday it is seeking expressions of interest in the potential acquisition of the entire group or its wholesale funds in Australia and the US as it desperately tries to raise funds to refinance 2.7 billion Australian dollars in short-term debt by a February 15 deadline. Another 1.2 billion dollars is due to mature in the next 12 months.

"Some pretty big and credible players are talking about injecting equity in the business," the banker was quoted as saying.

"These aren't bottom fishers. They know that if the company can sort out the the liquidity issues, the shares will be over 3 dollars. There's an enormous amount of money to be made."

Centro shares closed 3 cents or 3 percent higher at 1.04 dollars yesterday, although it traded as high as 1.24 dollars earlier in the session.

Centro shares fell from 5.70 dollars to as low as 48 cents after it announced a 3.9 billion dollar financing shortfall, cancelled its half-year to December distribution and slashed its year to June earnings guidance last month.

South African Hedge Fund Index Returns 15.56%

The South African Times reported that their hedge Fund Index returned 15.56% over one year to November, while the month-on-month growth rate dipped by 1.67%.

Director of Clade Investment Management Gavin Goldblatt said, "The volatility in both these markets has also increased dramatically over past months....Bond markets performed considerably better, with a number of central banks raising rates, and a flight to the safety of bonds." As a result the JP Morgan Global Bond Index returned a staggering 4.10%, its highest monthly return in years, according to the paper.

Meanwhile, the Clade equity long-short index fund returned 20.17% over one year, while the offshore enhanced index fund denominated in dollars was up 7.69%, according to the newspaper. November was a very tough month for global equity markets, with the MSCI All World Index losing 4.57%, and the JSE ALSI losing 3.19%.


Goldblatt added, "However, renewed inflation fears in South Africa drove the All Bond Index down 1.55%, for a net return for the last 12 months of only 4.82%. All of Clade’s funds reported losses for the month. However, none of these losses were as large as that of equity markets, and the funds succeeded in their main objective of reducing volatility and preserving capital during difficult times." concluded Goldblatt.

Large Hedge Funds Taking Over From Smaller Counterparts

According to a report by research and data provider Hedge Fund Research, about 863 funds were launched through the third quarter, nearly half the amount for all of
2006. About 408 asset pools were liquidated compared with 717 in 2006.

In 2003, 1,094 new funds were introduced. Liquidations fell to an industry low of
296 funds in 2004.

Kenneth Heinz, Hedge Fund Research president, said investor requirements for size and infrastructure may be making it more challenging to launch a new fund, “In the third quarter of this year, investors allocated nearly 90% of new capital to funds with greater than $1bn (€695.8bn) already under management.”

Big hedge funds tower over the industry. Heinz said less than 10% of hedge funds controlled 73.5% of capital for the year through the third quarter. Half of the $45bn in new hedge fund capital in the third quarter was allocated to funds of hedge funds.

Heinz said that although some collapses were caused by bad investments tied to the sub-prime mortgage market, he said the majority of funds were closed because they failed to meet the expectations of fund managers or investors.

HFR Says Fewer Hedge Fund Launches in 2007

Hedge fund launches slowed in 2007 for the third year in a row, a sign investors may be putting money into existing funds rather than into new ones with perceived higher risks, according to Chicago-based Hedge Fund Research.

863 funds were launched in the roughly $1.9 trillion industry by the end of the third quarter, compared with 1,518 new funds for all of 2006 and 2,073 launches in 2005. Liquidations also slowed, with 408 funds closing by the third quarter 2007, compared with 717 for 2006 and 848 for 2005, HFR said on Wednesday.

HFR also said that the slowing launches and liquidations in an industry with more than 9,000 funds suggests investors are more inclined to allocate to larger, more established hedge funds, which are likely to be more diversified and have better risk controls.

"In the third quarter of this year, investors allocated nearly 90 percent of new capital to funds with greater than $1 billion already under management," said HFR. "Investor requirements for size and infrastructure may be making it more challenging to launch a new fund."


That contrasts with previous years, when investors often clamored to invest in the latest funds, particularly those founded by high-profile former investment bank proprietary traders.

Private Equity Firms & Hedge Funds May Face Key Man Risk

Despite current investor and media attention on unexpected CEO turnover at major public companies, key man risk, the risk that the departure of a key executive or group of executives will lower credit quality, is more prevalent and a risk to credit quality among private equity firms and hedge funds, says Moody’s Investor Service.

“Recent departures at some large financial companies have brought to the fore the need for effective succession planning and management development, but also highlighted that large firms can usually cope with such departures, however unsettling,” says Moody’s vice-president Janet Holmes. “Hedge funds and private equity firms, however, can face considerably more acute CEO [or founder] leadership transition risk.”

Like other firms with founding CEOs, hedge funds and private equity firms face key man risk because they have often been created by successful founder executives who have played a central role in building a franchise and are closely linked with its business, brand and success. However, unlike most other major companies, these firms face additional key man risk because one or a handful of investors may hold most, if not all, of the voting stock.

Generally speaking, older firms will be more likely to have their equity distributed away from their founder, while private equity firms are less likely than hedge funds to have a single owner.

Hedge Funds Ahead for November

Hedge fund returns remained in double digits for the year despite a 1.6 percent dip in November, according to the Greenwich Global Hedge Fund Index. Putting hedge funds ahead of a trio of broad stock indexes through the year's first 11 months.

Among the hedge fund strategies tracked by the index, the Specialty Strategies Group led the pack, up 16.5 percent despite a 1.9 percent drop in November triggered by a fall in emerging markets.

Through November, the GGHFI was up 10.5 percent compared with 6.2 percent for the Standard & Poor's 500, 8 percent for MSCI World Equity, and 3.4 percent for the FTSE 100.

The Long-Short Equity Group lost 2.3 percent in November but was up 10.8 percent for the year. The Directional Trading Group, which bets on futures, was up 9.4 percent for the year, while the Market Neutral Group, was up 7.7 percent through November.

Hedge Fund Launch Expected From GMP Capital

GMP Capital Trust is expected to announced the launch of a new hedge fund this year, according to Canadian newspaper Globe and Mail. The $50-million hedge fund is to be co-headed by star trader Michael Wekerle.

The firm will put up $20-million, employees will add their own money and outside investors will be invited to join, according to the paper. GMP is following a blueprint drawn up by houses such as Goldman Sachs Group Inc., which gleans more than half its revenue from smart investments with its own capital. All the major Canadian dealers also have proprietary trading funds that use hedge fund strategies.

If the fund can build a successful track record, sources at GMP say they anticipate it will attract support from wealthy individuals and outside institutions such as pension funds, which have embraced alternative asset managers in recent years.

The new hedge fund is expected to deploy four investment strategies. There will be a traditional equity trading approach that includes taking long and short positions, the fund will also do credit trading, which would include buying distressed debt, plus what's known as program or algorithmic trading and options-based volatility investing.

Successful hedge funds created by domestic dealers include three-year old Flatiron Capital Management Partners, a $350-million (Canadian) fund backed by National Bank Financial and staffed by its former employees.

Calvert Launches Alternative Energy Opportunities Abroad

Dublin based mutul fund manager Calvert Inc. announced the launched this year of the Calvert Global Alternative Energy Fund. The new hedge fund invests in a broad universe of U.S. and non-U.S. stocks, seeking out companies that are alternative energy market leaders as well as those building a significant presence in the sector.

Jens Peers, head of ECO Investing at Dublin-based KBC Asset Management International Ltd. and lead portfolio manager of the Calvert Global Alternative Energy Fund, said: “Non-U.S. companies and markets will benefit from the improving prospects for alternative energy in 2008 because Europe, Asia and other regions are further along than the U.S in addressing climate change and oil dependency by embracing alternative energy technologies.”

Over the long term, according to their website, Calvert believes that alternative energy technologies will become an increasingly significant solution to the global energy and climate change challenges. The firm believes it will take multiple strategies to address climate change and therefore advocates a broad range of solutions, such as greater energy efficiency and aggressive development of renewable energy sources.

The Fund was launched on May 31, 2007 and is advised by Calvert Asset Management Company, Inc. Calvert is one of the nation’s largest socially responsible mutual fund firms with approximately $16 billion in assets under management offering 41 funds that allow individual and institutional investors to pursue a broad range of investment objectives within a single fund family.

A Challenging Year For Hedge Funds Ends Well

The 2007 Credit Suisse Index shows that hedge funds have outperformed many major global equity indices for the year while maintaining considerably less volatility.

According to Oliver Schupp, President of the Credit Suisse Tremont Index, LLC, the Index finished the period with estimated annual returns of 12.1% for 2007 year to date through November 30.

“We are pleased to present a research piece analyzing the performance of the Credit Suisse/Tremont Hedge Fund Index for 2007,” said Mr. Schupp. “Hedge funds experienced a challenging year due to certain market events but finished the year through November 30 by outperforming many major global equity indices while maintaining considerably less volatility.”

2007 was characterized by unusually high levels of volatility that impacted hedge fund strategies and financial markets throughout the year. A major sell-off in China in late February sparked fears of an Asian crisis reminiscent of 1997. Unexpected liquidation of several high profile hedge funds, as well as November’s equity sell-off in markets worldwide. Nevertheless, hedge fund strategies performed well and the Broad Index returned 2.0% in the fourth quarter with all 10 sectors in positive territory through November 30th.

The asset management business of Credit Suisse is comprised of a number of legal entities around the world that are subject to distinct regulatory requirements; certain asset management products and services may not be available in all jurisdictions or to all client types.

Hedge Funds Sector Positioned To Recover Quickly, F&C Partner Speculates

Commenting on the subprime crisis, Francois Barthelemy, partner at hedge fund F&C Partners said, "Hedge funds tend to suffer in very volatile environments but well-managed portfolios often recover quickly, once the market has come back to some sort of rational pricing of assets."

Despite the recent volatility that led many to describe November as the 'bloodiest' month for hedge funds, the sector is well positioned to benefit from the current turmoil.

Barthelemy explained, "The real question that people are struggling with is that there are a number of signs indicating that we might be moving into recession territory. We have had three great years where the way to make money was about growth and it seems we are now moving into a very different environment."

He belives, "the solution requires the raising of fresh capital and the selling of impaired assets to investors who will have the ability to work them through bankruptcies or restructuring," he said. "Only hedge funds have the legal and investment expertise to buy that type of assets and they are likely to do really well as a result of it."

Between December 2000 and December 2004, the Credit Suisse Tremont Distressed Hedge Fund Index was up +72%, while the MSCI World Index was down -2%. "We expect the next few years will see a repeat of this scenario."

Outside distressed assets, there are also attractive opportunities in a number of traditional investment sectors but not on a standalone basis. "While alpha is now easier to find, the beta of the market may kill you. This means it is the best of times for hedged strategies that aim to take most of the beta out of the return," he said.

Barthelemy, whose team is responsible for the management of the F&C Balanced Alpha Fund of Hedge Funds and the F&C Select Alpha Fund of Hedge Funds, concluded, "There is not doubt the world is very volatile and I don't think that buying just equity will work in the next few years. Volatility is not going to go away for a while and you will need a strategy that can cope with that. For me that means hedge funds."

Alternative Energy Fund Launch by Guinness Atkinson

Guiness Atkinson Asset Management has launched an alternative energy fund for UK and European investors. The fund is managed by a team of three fund managers, Tim Guinness as the Lead Manager and Edward Guinness and Matthew Page as Co-Managers.

With a 50/50 top-down/bottom-up approach, the fund looks to identify the sub sectors within the space which have the greatest potential for growth and strong returns.

Tim Guinness said in an interview with Alt Energy Stocks, "I have been running a conventional energy fund since 1998 and have been following alternative energy stocks as a sub sector within the energy universe since then."

"Recently we have preferred wind and solar over fuel cells and biofuels but this is constantly under review." Guinness said, "We then screen the universe of 200 stocks we have identified to try and identify good companies that are cheap where sentiment towards them is improving and stock price action is positive. One tool we use is to screen by value, earnings momentum, economic returns vs peers, and a technical indicator."

Alternative energy includes, but is not limited to power generated through solar, wind, hydroelectric, tidal wave, geothermal, biomass or biofuels. Energy technology includes technologies that enable these sources to be tapped and also various manners of storage and transportation of energy, including hydrogen and other types of fuel cells, batteries and flywheels, as well as technologies that conserve or enable more efficient use of energy.

Hedge Funds Low in November but High Year To Date

The Greenwich Global Hedge Fund Index is up +10.53% year-to-date despite falling -1.61% in November, and it continues to outpace equities for the month and year.

Ben Rossman, Senior Vice President of Greenwich Alternative Investments noted that, “Hedge fund performance, which was less severe than that felt by the equity markets, highlights their unique ability to limit the downside.”

All four equity indices were down by more than 4% in November: the S&P 500, MSCI World Equity, and FTSE 100 Indices posted -4.18% (+6.23% YTD), -4.24% (+7.97% YTD), and -4.30% (+3.41% YTD), respectively.

The November Index currently includes 1,325 funds. Final November results will be posted in early January, once additional funds have submitted returns.

Greenwich Alternative Investments, LLC (and its affiliates) is among the oldest providers of hedge fund indices, asset management services and research to institutional investors worldwide.

Hedge Funds Experiencing Staff Shortages

According to a new survey conducted by CPA firm Rothstein Kass, nearly 70% of hedge funds are having difficulty retaining back-office personnel. "Hedge funds have seen tremendous inflows of capital in recent years, a trend that has accelerated as sophisticated investors seek to mitigate risk in volatile market conditions," said Howard Altman, Co-Managing Principal of Rothstein Kass.

"However, as our research reveals, the rapid pace of industry growth has left back-offices more pressured than ever before. Firms of all sizes are struggling to retain qualified personnel amid existing staffing shortages, including the CFO and COO levels. These problems will only be exacerbated by the industry's increasing institutional focus, since these investors generally demand stricter reporting and compliance capabilities."

Survey findings were based on interviews with over 500 Chief Financial Officers at direct investment hedge funds with at least $100 million in assets under management.

Firms in the study are representative of a wide range of investment styles, experience levels and assets under management. Approximately half had assets between $100 and $999 million. A quarter reported assets of between $1 and $2.99 billion, and the balance were firms with assets in excess of $3 billion.

The study was commissioned and results analyzed by the Rothstein Kass Executive Search Group, which specializes in the recruitment and placement of senior financial executives and staff at alternative investments companies.

"It was clear to us from our daily interactions with clients, that .......it's a time of unprecedented opportunity for talented individuals looking for an exciting career in the hedge fund industry."

Findings are summarized in "The Compensation Conundrum," co- authored by Russ Alan Prince, a leading authority and counselor on private wealth, and Hannah Shaw Grove, a widely recognized expert on behaviors and finances of high-net-worth individuals.

"The Compensation Conundrum" also provides 2007 total compensation projections for key non-investment roles at hedge fund organizations, including CFO, COO and Controller. Figures are composed of base salary and bonus. "Our compensation figures offer ranges for total compensation by position and will serve as a benchmark for future research." said Todd Noah.

Hedge Fund Operator Acquired For $1.32 Billion

In a deal worth up to $1.32 billion, London hedge fund operator Marble Bar Asset Management LLP has been bought by Swiss private banking group EFG International.

EFG said it will initially pay $517 million in cash, plus a further $300 million to $800 million over the next six years, depending on the performance of Marble Bar's funds. Of the initial cash payment to Marble Bar partners and staff, about $400 million will be reinvested in Marble Bar funds for up to six years.

In a press release yesterday, EFG said that the purchase broadens its capabilities in hedge funds and brings the hedge fund-related assets it manages to around $13.3 billion , or 18% of clients funds. Last year, EFG bought fund of hedge funds manager C.M. Advisors for an undisclosed amount.

According to Hedge Fund Research Inc., investors have poured $164 billion into hedge funds in the first nine months of 2007, boosting global assets to $1.8 trillion.

Chief Executive of EFG, Lonnie Howell, said buying Marble Bar gives the bank access to "sheer talent" and will help it meet demand from wealthy individuals for hedge fund investments.

Marble Bar's 2008 net profit is expected be at least $80 million to $100 million EFG said, meaning the purchase price is about 10 times estimated earnings.

Dexion Fund Of Hedge Funds Raise $274.4 Million

Dexion Absolute Limited has now become one of the world's largest exchange-traded funds of hedge funds (FOHF) with net assets of GBP 512 million ($1,056.5 million).

The London Stock Exchange-listed FOHF completed the multi-currency share issue raising GBP 133 million ($274.4 million). The issue was sponsored by Hoare Govett Limited, a member of the ABN AMRO group.

Dexion director Nick Browne said, "We are very pleased with the response to this issue. We have built on the foundations established earlier this year in a number of jurisdictions across Europe and Asia, received strong support from many existing shareholders and gained a wide range of significant new pension fund and other institutional investors."

Bob Cowdell, managing director at ABN AMRO, is quick to point out the significance of the share issue. "This is the largest capital-raising to date in the London-listed funds of hedge funds sector," he says. "It has more than doubled the size of the Company's Euro and US Dollar share classes introduced earlier this year.'

The fund of hedge funds provides direct access to Harris Alternatives LLC manager of the 'Aurora' range of funds. With a 17-year investment record Harris Alternatives currently manages in excess of $7 billion in funds of hedge funds and segregated accounts.

Dexion's investment objective is to generate consistent long-term capital appreciation with low volatility and little correlation to the general equity and bond markets through a portfolio having a diversified risk profile. The FOHF has a database of approximately 550 FOHF managers.

Alpha Titans Fund of Fund Launch

Alpha Titans, a multi-manager hedge fund announced that it will be open to outside investors from December 1st, the fund of funds was launched on November 1st 2007.

Alpha Titans was launched with equal allocations to DE Shaw, Renaissance, Citadel, IKOS and Whitebox. Most of these managers are either closed to new investors, or cannot be acquired by new investors without very high minimums and lockups. Alpha Titans has favorable liquidity terms with many of these managers due to long-standing investments with them.

Alpha Titans is offered to qualified investors through onshore and offshore funds. With a minimum initial investments of $100,000, the fund of funds has quarterly liquidity and no redemption penalties. Investors have the opportunity to choose from three different share classes of leverage, 1x, 1.5x and 2x.

Alpha Titan is an alpha-return investment manager that has achieved superior risk-adjusted returns through skill-based investing.

Global Investment Fund Now Open

West Palm Beach (HedgeCo.Net)- Global Investment House has announced the Global Distressed Fund is now open for new and existing investors until the end of December.

The Barclays group, the world's largest independent hedge fund research company, ranked the Fund earlier this year as the 4th best Fund of Hedge Funds in the world, in terms of risk adjusted return, from a list of 647 funds.

The fund was also ranked by EurekaHedge among the top ten distressed fund of funds in terms of its annualized return, standard deviation, and Sharpe ratio.

Mr. Sameer Al-Gharaballi, Executive Vice President at Global, said the fund's reopening presents an opportunity to invest in one of the best and highly ranked fund of hedge funds.

Al- Gharaballi confirmed that the fund presents an opportunity for investors seeking diversification from local markets with low risk, adding that Global may provide interested investors with loans on invested capital, as a show of confidence in the fund's stable performance.

$2.3 Million Raised By 100 Women in Hedge Funds

The hedge fund industry raised $ 2.3 million at the Sixth 100 Women in Hedge Funds Gala at Cipriani in New York City.

Many well-known leaders in the hedge fund industry attended the gala celebration, among them Tudor Investment Management, Williams Trading, Blue Ridge Capital, Highbridge Capital Management, Eton Park Capital Management, Moore Capital and Atticus Capital.

John Griffin, Founder and President of Blue Ridge Capital, who founded iMentor in 1999 remarked, "We are absolutely delighted to be this year's 100 Women in Hedge Funds beneficiary." To-date, iMentor has matched and supported over 4,000 mentor-mentee pairs, partnering with over 30 schools and after-school programs in underserved communities.

100 Women in Hedge Funds annually presents two awards that have historically recognized under-the-radar achievements and leadership. The 2007 Effecting Change award honored many leaders across the hedge fund industry who serve as powerful examples of effective mentoring.

The 2007 Industry Leadership Award was awarded to Jane Mendillo, Chief Investment Officer, Wellesley College in recognition of her talent, ethics and passion, which help define the hedge fund industry's standard of excellence.

Since its first session in 2002, 100 Women in Hedge Funds has hosted more than 150 events globally, connected more than 150 senior women through their Peer Advisory Councils and raised in excess of $13 million for philanthropic causes in the areas of women's health, education and mentoring.

Germany as Europe's Most Attractive Destination For Renewable Energy Investors

Germany has emerged as Europe's most attractive destination for commercial investors in the renewable energy sector, while the UK has lost momentum due to a comparative lack of pace on policy matters, according to the latest "Ernst & Young Renewable Energy Country Attractiveness Indices", which tracks and scores global investment in renewable energy.

The index, launched at the World Energy Congress in Rome, reveals that Germany has jumped from fifth to second place, displacing the UK, India and Spain, which jointly held this position last quarter.

It also suggests that although the credit crunch has left many investors overexposed to certain sectors, renewables projects still offer a relatively low-risk option for investors.

Although EU countries dominate the Country Attractiveness Indices, the US remains the most attractive destination overall for investment in renewables, a position it has held for two years.

Jonathan Johns, Head of Renewable Energy at Ernst & Young, says the US will continue to attract the lion's share of global investment particularly if changes to legislation continue.

The Ernst & Young Country Attractiveness Indices provide scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies. The indices provide scores out of 100 and are updated on a regular basis.

BlackRock Launches Distressed Securities Funds

BlackRock, the biggest listed US asset manager, on Tuesday announced the launch of more distressed securities funds to take advantage of the current credit market troubles, according to Reuters.

Chairman and Chief Executive Laurence Fink said the firm would launch hedge funds investing in distressed mortgages and distressed real estate. These funds would raise "multibillion dollars". BlackRock has already raised a "very large" leveraged-loan fund and is now in the process of investing the money.

Just last week, BlackRock again earned first place in DALBAR’s 2007 Trends & Best Practices in the "Leading Mutual Fund Statements" category. DALBAR issues this award annually.

"At BlackRock, our goal is to produce a comprehensive investor statement tailored to
shareholder needs" said Anne Ackerley, managing director at BlackRock. "Receiving this award for three consecutive years demonstrates our successes and is a clear indication of our ability to deliver beyond expectations and surpass the industry standard."

BlackRock is one of the world’s largest publicly traded investment management firms. With a reported AUM of $1.3 trillion as of September 30, 2007.

Hedge Funds More Proactive in Search for New Research

Hedge funds manage external research more proactively than long only managers, according to a study released by Integrity Research Associates. Hedge funds review their external research more frequently than long only investment managers, are three times more likely to seek assistance finding external research, and are much less confident that they have already found the best sources of external research.
“Our study confirms that hedge funds are more aggressively seeking out new sources of research than long only managers,” says Michael Mayhew, Integrity’s chairman and author of the study. “Long only managers are complacent about external research whereas hedge funds are continuously looking for what’s new and innovative.”

Conducted in October, 2007, the survey polled forty-three research directors at US based hedge funds and long only institutional investors. The survey focused on how institutional investors source and value external research. Highlights from the study include:

• Forty-two percent (42%) of hedge funds evaluate their portfolio of research providers at least monthly compared to five percent (5%) of long only managers.
• Hedge funds are three times more likely to use external sources to identify research, with forty-five percent (45%) of hedge fund research directors using outside sources compared to thirteen percent (13%) for long only directors of research.
• Thirty percent (30%) of hedge funds were either Not Too Confident or Somewhat Confident that they are using the best external research available compared to eighteen percent (18%) of long only managers.

“As long only managers introduce more alternative product like 130/30 funds, they are talking the talk, but our survey suggests that they are not yet walking the walk,” adds Mayhew.

Hedge Funds See Best Performance In 5 Years

According to the HFN Hedge Fund Aggregate Average, the second round of U.S. Federal Reserve interest rate reductions pushed hedge fund returns up +3.32% in October 2007.

Strategies which rebounded sharply following the U.S. Fed's actions in September were again beneficiaries in October. The HFN Emerging Markets Average was +5.01% in October and +22.22% YTD. Energy sector funds took advantage of oil prices closing in on $100/barrel.

The hedge fund’s excellent performance wasn't limited to commodity related strategies, several equity related strategies outperformed broad equity benchmarks. Long only strategies outperformed the S&P 500 by the largest margin in the last twenty months. Additionally, technology sector funds returned +5.07% in October while the healthcare sector and small/micro cap funds returned +5.07% and 3.43%, respectively.

Hedge funds influenced by market volatility through options strategies produced their best average performance in five years, and macro funds continue to benefit from strong trends in currency and commodity markets.

HedgeFund.net (HFN), a division of Channel Capital Group Inc, is a source for hedge fund news and information. Registered users include a wide range of institutional investors and high net worth individuals.

Hedge Funds in the Middle East Conference

The third Annual Conference for Hedge Funds in the Middle East, organized by Hedge Funds Review magazine, got underway on November 5 under the sponsorship of Investcorp, the alternative investment specialist.

The opening session was attended by His Excellency Mr Rasheed Muhammed Al-Maraj, the Governor of the Central Bank of Bahrain. Attending the conference are leading investors from various Gulf nations, in addition to hedge fund managers from the Middle East, North Africa, Europe, Asia and the United States, who have been discussing the latest strategies for alternative investments.

Investcorp Managing Director Sewanyana Kironde welcomed the participants. He was followed by the co-heads of hedge funds at Investcorp, Ibrahim Gharghour and Deepak Gurnani, who presented a review of global strategies for hedge fund activity. Their presentation stressed the importance of studying risks and managing them wisely in order to attain balanced investments.

Investcorp has more than 10 years' experience in hedge funds. At present it manages $6.4bn in hedge fund assets, making it one of the biggest international investors in this area. Hedge funds are now being used in the portfolios of institutional investors and high net worth individuals as an alternative means of maximising returns and increasing wealth.

In collaboration with the conference organizers, Investcorp has designed this summit to facilitate discussion about the various hedge fund strategies, about the means of addressing geographic distribution and about Islamic Sharia compliance in the Middle East market, which is growing at a rapid pace.

The conference, which continues until Wednesday night, also featured a "Day at the Races" at the Bahrain International Circuit, and a banquet dinner.

$61 Million Shariah Fund Launch By KAMKO

KIPCO Asset Management Company ("KAMCO") today announced the launch of the Al Raya Investment Company KSC, with the private placement of 170 million shares. The fund will primarily target international investors in developed markets interested in Shariah compliant international asset management.

"Al Raya Investment Company aims to be the first and most comprehensive Islamic investment company in Kuwait and the GCC region with a clear focus on international Islamic asset management products and services," said Mr. Hazem Al-Braikan, Chairman of the Founders' Committee.

Al Raya is a private company that will be incorporated under Kuwaiti company law as a Kuwaiti closed shareholding company, and will be registered with the Central Bank of Kuwait as an Islamic Investment Company.

Primarily, the company will target international equities, asset management, alternative investment products, advisory services and portfolio management segments of the market.

Islamic finance represents a fast growing market segment. At the end of 2006, over 250 Islamic financial institutions operated in more than 75 countries, holding assets estimated at more than $265 billion with another $400 billion in financial investments.

It is estimated that within the next 10 years, 50 to 60% of the total savings of the world's 1.5 billion Muslims will be in the form of Shariah compliant products, and that the potential market for Islamic financial services to be in the area of $4 trillion.

"KAMCO is delighted to announce this new investment opportunity to its clients and investors in Kuwait and internationally," said Mrs. Intisar Al-Suwaidi, KAMCO Vice Chairman. "We strongly believe that this private placement offering will be of significant interest to selected and sophisticated investors."

BNP Paribas Adds Three Members to Their Hedge Fund Relationship Management Team

BNP Paribas announced today the expansion of its Hedge Fund Relationship team with the appointments of Conrad Johnson as a director in New York and Stephanie Wong as an associate director in Hong Kong.

Conrad joins BNP Paribas from J.P. Morgan Securities in New York where he worked in Fixed Income prime brokerage. In his new role, Conrad will assist his team in optimizing the firm's relationships across its various business lines with the world's leading Hedge Funds.

Prior to joining BNP Paribas, Stephanie was with HSBC managing Hedge Fund relationships in Asia. Her career started with JP Morgan in the Structured Finance CDO/CLO group in 2000 and later moved to Hedge Fund Credit function with JPM in Singapore.

Also announced was the relocation of Mark Walker to London from New York to further the global effort as Head of Hedge Fund Relationship Management for Europe. With over fifteen years' experience, Mark will help drive the bank's efforts in the dynamically growing European hedge fund market. Mark will also spearhead the Hedge Fund Capital Markets Solutions Group by drawing upon the vast capabilities of the firm to deliver capital introduction, and more recently DCM and ECM syndication and structuring solutions. Conrad, Stephanie and Mark all functionally report to Talbot Stark, Global Hedge Fund Relationship Manager.

Commenting on Conrad's appointment, Talbot Stark said, "Hedge Funds are a core client sector for BNP Paribas. Mark, Conrad and Stephanie will draw on our extensive footprint across Europe, the US and Asia and our superior capability in derivatives across asset classes, to set ourselves apart from our competitors by adding value for our Hedge Fund clients through the delivery of dynamic solutions."

The BNP Paribas Hedge Fund Relationship Management Team was formed in 2006 to co-ordinate client coverage across Fixed Income, Equity Derivatives and Commodities ensuring that BNP Paribas effectively covers its hedge fund clients and is constantly developing its business in close alignment with their needs.

BNP Paribas is a European leader in global banking and financial services and is one of the 5 strongest banks in the world according to Standard & Poor's. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.

Sidley Austin Named Top Hedge Fund Firm

Institutional Investor’s Alpha Magazine has ranked Sidley Austin LLP the number one legal adviser to the hedge fund industry among onshore law firms for the second consecutive year.

Thomas A. Cole, chair of the firm’s Executive Committee said, “We are particularly gratified by the results of this year’s Alpha Awards because we have once again been chosen by our clients,” he explained. “We have been privileged to work with some of the most respected hedge funds and alternative asset managers and we are very proud of the performance of our team, which this ranking acknowledges.”

The Alpha Awards are calculated from the responses of nearly 1,000 hedge fund firms, representing roughly $1.4 trillion in assets under management. Additionally, this year Alpha introduced a new ranking showing which providers best serve hedge fund firms with assets $1 billion or more; Sidley was ranked first in this new category. Additionally, Sidley placed first in almost every sub-category, including “business planning,” “client service,” “hedge fund expertise” and “regulatory and compliance.”

Sidley’s hedge fund and investment management practice comprises approximately 95 lawyers in New York, Chicago, Los Angeles, San Francisco, Hong Kong and London. Sidley was also named Investment Funds Law Firm of the Year in the 2007 Asian Legal Business Awards.

Prudential Launches 4 Sub-Funds In Hong Kong

Prudential Asset Management today announced its entrance into Hong Kong's retail funds market with the launch of its first four retail sub-funds, the M&G Global Basics Fund, M&G Global Leaders Fund, M&G Pan European Fund, and the M&G American Fund.

The launch signals the latest stage of development for Prudential's asset management business in Asia, which has operated in the Hong Kong market since 1994. The Hong Kong launch follows the sub-funds' previous introduction to retail investors in Singapore, Korea, Japan, Taiwan and Malaysia where they attracted significant interest with inflows exceeding $760 million over eight months to 31 August 2007.

"We are launching our retail presence in Hong Kong by introducing some of our core funds to the market." Guy Strapp, Regional Head of Investment Management said about the launch, "These funds have a history of consistent performance and will provide Hong Kong investors with access to global equity markets to help diversify investment portfolios."

Prudential Asset Management (Hong Kong) Limited is a subsidiary of Prudential plc (United Kingdom). Its insurance operations span 12 markets, Mainland China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

With $66 billion in assets under management, it is the only foreign asset manager in the top 5 position in more than one Asian market.

High Turnover Among Hedge Fund Employees

A survey conducted by Job Search Digest revealed insights into the world of hedge fund compensation. Most respondents, the survey shows, have less than two years with their firms, suggesting high employee turnover in the industry.

The high turnover extends to workers on both sides of the Atlantic. Though 50% of survey respondents had more than 10 years of professional experience, more than 60% of respondents reported being with their current firm for two years or less. This short tenure is reflected in a fraction of the professional sharing in the equity pie.

"The survey raises an interesting question," says David Kochanek, president of Job Search Digest, "Are the players unhappy because intelligent, well-educated hard charging 'Type A' people are never satisfied? Or, does the hedge fund industry have a problem."

With the very top hedge fund managers earning hundreds of millions of dollars, even those making a million a year wonder what they could be making if they jump to another firm." Kochanek added.

Production-based bonuses are an integral part of employees' compensation, the survey found, and range from 38% of base salary to more than 400% for top producers. The survey found the further you move up in the organization, the bigger that bonus percentage becomes.

When it comes to educational requirements, a bachelor's degree is the minimum for jobs in the field, but an advanced degree or master's in business administration isn't a requirement for many positions, the survey found. "Although MBA¹s are earning more on average, hedge fund players can be successful in the firm without an MBA or other advanced degree," said Kochanek.

The 2007 Hedge Fund Search Digest Compensation Survey captures information from industry players at all levels. The respondents are from more than 200 hedge funds firms, including Credit Suisse, Deutsche Bank, Goldman Sachs, and Morgan Stanley.

GCC Economist Urges Consideration Of Asset Based Rather than Oil Based Economy

According to Dr Nasser Saidi, Chief Economist of the Dubai International Financial Centre, "Economies of GCC states should now be considered as asset-based ones rather than oil-based."

The 'Sovereign Reserve Management, Pension and Institutional Funds Congress 2007' was held in Doha, Qatar. During the keynote address Dr Saidi said that in the UAE for example, "asset revenue is more important than resources". The economist discussed at length sovereign wealth funds. These funds are foreign currency assets held by states over and above the reserves of their central banks.

"We have seen the emergence of GCC countries going into acquisitions. With oil prices up, government spending has gone up. This resulted in the emergence of bureaucracies in GCC countries and as welfare states."

Though sovereign wealth funds are fully-capitalized and have low leverage, accounting for $3.1trillion globally, hedge funds account for $1.4 trillion but are highly-leveraged. However, both these funds are dwarfed by the size of insurance funds which amount to $16-17 trillion and pension funds, which total $18 trillion globally.

"It is highly unlikely that sovereign funds will act in a cohesive way. Growth is driven by high commodity prices, not just oil. This has led to high current account surpluses," said Dr Saidi.

Saidi said if a country has an extra $20 billion on hand, questions would arise on how the money should be invested. "The money should not be put into the central bank's reserves but placed where the money would get high returns. Emerging economies have now turned from being net capital importers to net capital exporters. The money is mainly going to other emerging markets."

It is matter of time, anything between five to ten years, for China to start investing in oil-producing states. "This will be because of China's need for energy resources and the need to diversify its assets," Dr Saidi said.

The Gulf Cooperation Council (GCC) also known as the The Cooperation Council for the Arab States of the Gulf (CCASG) is a trade bloc involving the six Arab states of the Persian Gulf with many economic and social objectives.

Fund Of Resources-Hedge Fund Launch

The Gibraltar based Sirius Investment Management is launching the Sirius Investment Fund II, a natural resource and mining-focused fund of hedge funds, which will be open to new investment on 1 November.

It will invest predominantly in hedge funds that invest in very early stage mining plays and other natural resources, projects which are not dependent on fluctuations in commodity prices to generate returns, Sirius said.

It is particularly interested in projects which are moving from exploration to production, the stage with the greatest uplift in valuation. Larger companies with established production are more sensitive to the commodity price, Sirius added, so the fund will not invest in such opportunities. It targets 20% and hopes to raise $300m.

The Sirius Resource Fund, a resources special situations hybrid fund launched in April this year is broadly targeting iron ore, gold, diamonds, energy and copper plays, but expects to concentrate primarily on African emerging markets. Its special situations strategy will see investment targeted in pre-initial public offering companies as well as in small-cap listed equities and physical assets.

The fund has delivered 54.2% since inception, with an August return of 16.07% and has $50 million in assets under management.

Blackstone Appoints New Hilton Head

Hilton Hotels Corporation and Blackstone Group announced the completion of their merger last week and are now expected to name Host chief executive of Hotels & Resorts Inc Christopher Nassetta as president and CEO, according to the Wall Street Journal.

The Merger has been financed with $20.6 billion of mortgage and mezzanine debt financing and approximately $5.7 billion of equity invested by hedge funds affiliated with The Blackstone Group. As part of his new responsibilities, Nassetta will build up Hilton’s luxury lines, aiming to "marry" the hotel’s numerous lines, including Embassy Suites, Doubletree and Hampton Inn, with many of Blackstone's own hotels.

Acquisition financing was provided by Bear Stearns, Bank of America, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley. Hilton Hotels Corporation is the leading global hospitality company, with 2,896 properties totaling approximately 490,000 rooms in 76 countries and territories.

The Blackstone Group is a global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.

UAE Investors To Increase Hedge Fund Holdings

Private investors in the United Arab Emirates plan to increase their holdings in alternative investments such as private equity, hedge funds and derivatives in the next three years, according to a new global report published by Barclays Wealth.

However, fewer than half of UAE investors polled expressed confidence in their knowledge of personal finance, hedge funds and private equity.

The report, 'Barclays Wealth Insights: Risk, Return and Reward', reveals that investors with at least $100,000 in investable assets plan to put more money into alternative investments over the next three years, as they seek more absolute returns.

The report reveals a trend amongst these investors of an increasing appetite for financial products which help reduce volatility, such as derivatives, private equity and hedge funds, particularly in the Middle East and Asia. At the same time, there is a move away from equities, which suggests investors have more of an appetite for returns that are stable rather than driven by market movements.

The survey, based on a global sample of 790 respondents that includes 100 individuals from the UAE, shows that 41% of UAE investors plan to invest in hedge funds in the next three years compared with the past three years (32%), according to the report.

Soha Nashaat, Managing Director and Head of Middle East at Barclays Wealth said, "Assets like hedge funds,... can all be used to manage risk, reduce volatility and stabilize results. Shariah-compliant products are of particular interest, as they are viewed in absolute return terms as well. The region has seen huge development in the Islamic finance sector in recent years and this is rapidly filtering through to the asset management arena, where considerable product development is now taking place."

Real Estate Entrepreneur Rod Khleif And Personal Philanthropy

The Florida real estate investor Rod Khleif has founded two non-profit charity organizations -Tiny Hands Foundation and A Better Choice Foundation.

The Tiny Hands Foundation was founded by Rod Khleif in the year 2001 with an intention to create an experience of joy for low-income children by providing a holiday meal for their entire family.

Through his basket brigade, implementing educational programs, researching cancer methodologies and love, Mr. Khleif intends to make a huge impact on the world. Through this foundation Rod Khleif has fed thousands of children around the holidays with giant baskets of food during the holidays for the past 6 years. Rod Khleif along with the “Tiny Hands Foundation” will feed 1,600 families on November 17, 2007 for the Thanksgiving holiday.

Rod Khleif also founded “A Better Choice Foundation” to support the search for alternative cures for cancer, emphasizing a non-traditional, holistic approach to a cancer patient’s physical and emotional well-being.

This foundation was formed to educate the public and doctors about the benefits of fighting cancer holistically. A Better Choice Foundation is in the process of assembling as many methodologies and practitioners as possible to form a collective voice, which will be presented to the public thus creating a massive impact.

Greenspan Concerned With Low-risk Long-term Rates

According to former Federal Reserve Chairman Alan Greenspan, "Low risk-free long-term rates worldwide seem to be one factor driving investors to reach for higher returns, thereby lowering the compensation for bearing credit risk and many other financial risks over recent years", he said in a said in an interview published on Friday by the Federal Reserve board.

"The search for yield is particularly manifest in the massive inflows of funds to private equity firms and hedge funds. These entities have been able to raise significant resources from investors who are apparently seeking above-average risk-adjusted rates of return, which, of course, can be achieved by only a minority of investors."

Greenspan also expressed his concern over, "many new hedge fund entrepreneurs....embracing a strategy of pinpointing temporary market inefficiencies, the exploitation of which is expected to yield above-average rates of return."

Greenspan concluded with, "I trust such an episode would not induce us to lose sight of the very important contributions hedge funds and new financial products have made to financial stability by increasing market liquidity and spreading financial risk, and thereby enhancing economic flexibility and resilience."

Hedge Funds Go For Stability

GFT UK, one of Europe's leading suppliers of innovative IT solutions is seeing hedge funds beginning to adopt business housekeeping methods in an attempt to reduce risk and improve continuity.

Having seen the assets under management in global hedge funds reach $2.48 trillion in July this year the market was positively buoyant; that was until the summer’s credit crunch which has taken its toll and seen the funds stutter through a turbulent few months.

The growth spurt, followed by a downturn, has raised some business continuity issues for hedge funds. Market and personnel changes can be very damaging for such technology and process-light companies. When fund managers leave, so does their knowledge and competencies.

These companies’ traditional lack of technical infrastructure is perhaps beginning to change. GFT has recently received an increase in request for process reviews from hedge funds. It would seem that even in these traditionally finance-driven companies, infrastructure is beginning to play a vital role.

GFT has been approached by a leading hedge fund, keen get the procedures and processes of its European Equities Team documented. GFT was selected due to previous project work and a strong knowledge of internal operations.

Hedge Fund Hires New Members To Allocation Committee

The Portland City Council and the Multnomah County Commission recently appointed 2 new members to the Portland Children's Investment Fund Allocation Committee. They are respectively: Alissa Keny-Guyer, a consultant for foundations and nonprofits; and Adrienne Livingston, executive director of the Black United Fund of Oregon.

Both Keny-Guyer and Livingston have spent much of their professional careers devoted to improving the lives of others, especially the youngest and most vulnerable in our society.

The Children's Investment Hedge Fund annually allocates about $10 million to programs throughout Portland in areas of early childhood, after school and mentoring and child abuse prevention and intervention. A five-member Allocation Committee meets publicly to make funding decisions for the Fund.

In 2002 Portland voters passed Measure 26-33 creating the Children’s Investment Fund. The Fund provides approximately $10 million a year for five years to support 65 programs in early childhood development, after-school and mentoring and child abuse prevention and intervention. Programs annually help more than 10,000 of the city’s neediest children and their families so youth enter kindergarten prepared to succeed, stay engaged in school and safe after school and families most at risk for abuse and neglect receive support and intervention services.

Technology Biggest Spending Area For Hedge Funds

According to a poll of over 100 top global hedge funds (and fund of funds) managers,
collectively managing some $900 billion in assets, shows that three quarters of respondents identified technology as the biggest spending area in the next two year, for 58% of funds, expenditure on risk management systems was anticipated to be the biggest proportion of that spend.

Only 13% of respondents expect to raise permanent capital in the next two years. The most popular route is deemed to be a partial sale to an external owner. The greatest interest in raising permanent capital comes, from managers in the Far East.

David Sung of Ernst & Young's Hong Kong office said: "Given that the managers in the Far East have yet to experience the maturity of businesses in the US and Europe, the idea of having more permanent capital could be appealing as a faster means of stabilizing their asset base."

Greater transparency around the valuation process is the foremost medium-to-high level regulatory challenge for 64% of respondents in the next two years; conflicts of interest (57%) and market abuse (55%) are the next key concerns. Valuation and pricing risks were also deemed the second greatest operational risk for managers.

The survey shows that the majority of funds (80%) expect incentive fees and management fees to decrease in the next two years. Almost two-thirds also identified increased operational costs as a significant future pressure on fees over the same period.

The survey was carried out by Ernst & Young in partnership with Ipsos MORI, an independent research company, across a number of leading global hedge funds, and fund of funds managers.

Research Shows Hedge Fund Talent A Priority

According to new research 'Navigating New Complexities' published today by Ernst & Young. The world's leading hedge funds managers are more concerned about attracting and retaining talented people and managing growth than anything else.

"Governance and infrastructure are the top enablers for hedge fund growth, as the industry continues to mature and develop," said Leon Chin, partner in the Ernst & Young Toronto hedge funds practice.

The poll of over 100 top global hedge funds (and fund of funds) managers, collectively managing some $900 billion in assets, shows that retaining the right people (42%) and managing growth (39%) are the highest level challenges over the next year, compared to just 9% who anticipate investing or developing in new products. Respondents were principals, chief operating officers and chief financial officers at these funds.

Art Tully, co-leader of the global hedge funds practice at Ernst & Young, said: "The global hedge fund industry now manages $2.5 trillion of assets; $41.1 billion poured in from investors in the second quarter of 2007 alone.

The industry appears to be proving that it can handle such inflows. The ability to absorb such flows is only tested by the capacity to grow and retain talent.

Hedge funds are working just as hard as other financial institutions to ensure they attract and retain the right people. Salary packages (86%) and firm culture (83%) are the main attractions enticing the best staff to join.

The managers surveyed for this research represented some US$900 billion in funds (approximately 55% of the entire industry).

Ernst & Young has teams around the world, including North America, the UK, Cayman, Bermuda, Ireland, continental Europe, Hong Kong and Australia, who are part of our global alternative asset management practice.

Federal Reserve moves to stop Credit Crunch

In September, according to the Credit Suisse/Tremont Hedge Fund Index, the U.S. Federal Reserve moved to stop the spreading Credit Crunch from further impacting the global economy with a half-percentage-point cut in interest rates.

Overall, the market environment has led to the majority of hedge fund sectors ending September on a positive note. In particular, the Managed Futures sector benefited with a 5.13% return as the market rebounded and volatility rose, leaving managers with a positive opportunity set.

The cut sought to ease terms on direct loans from its discount window in hopes banks would use the Fed's cash to restore liquidity to the credit markets. The interest rate cuts sparked a rally in global stock markets as investor fears were somewhat quelled, said Oliver Schupp. "However, the rate cut also led to a sharp fall by the U.S. Dollar and the rise of long-term Treasury-bond yields and oil prices, which could potentially foster inflationary pressures."

The Index is constructed using the Credit Suisse/Tremont database of more than 5,000 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds. The Index is calculated as a total return index on a monthly basis, adjusted for asset in- and outflow, including a reselection according to the procedure outlined above on a quarterly basis.

Robeco Bank Bought By Kaupthing Bank Luxembourg S.A.

Private banking and alternative asset manager Robeco Bank of Belgium was purchased by Kaupthing Bank of Luxembourg, it was announced today.

Robeco was established in Rotterdam in 1929, and has EUR 142 billion ($201.5 billion) in assets under management (as of 31 December 2006). Their product range runs from equity and fixed-income investments, to money-market and real-estate funds and alternative investments, such as private equity, hedge funds and structured products.

George Möller, Chief Excecutive Officer of Robeco said, "The Belgian market has evolved enormously over these last years with most banks now operating an `open architecture´. They are increasingly incorporating the financial products of other specialist banks -including Robeco-. This opening up enables us to focus on third party distribution and on the institutional market in Belgium."

Magnus Gudmundsson, Managing Director of Kaupthing Bank Luxembourg said, "Robeco Bank Belgium represents an excellent strategic fit forKaupthing Bank in terms of geographic diversification, products and business culture. This acquisition is a logical step in building up Private Banking offerings in the Benelux countries. By taking over the activities of Robeco Bank Belgium we become immediately operational in Belgium and will have a platform for further growth".

Robeco has offices in Bahrain, Belgium, Germany, France, Japan, Luxembourg, Poland, Spain, the United States and Switzerland. Robeco has a bank license in Belgium, France and the Netherlands.

Thomson Financial Invests $180 Million in TradeWeb

Thomson Financial today announced it plans to form a strategic partnership with nine of the world's leading global dealers including, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland, and UBS to drive the expansion of electronic trading using the TradeWeb platform.

Under the terms of the agreement, the dealers will invest approximately $180 million to purchase a minority stake in TradeWeb's established markets. Separately, Thomson and the dealers will fund additional investment in asset class expansion.

"This partnership is a natural step forward in the evolution of the online financial marketplace, taking us closer to the time when almost all trading is electronic," said Jim Toffey, CEO of Thomson TradeWeb. "TradeWeb is ideally positioned to seize this opportunity, and expand e-trading for our clients on one platform through organic growth and through acquisition. The end-game is to be the leading global network where markets meet."

The transaction is expected to close in the next few months, pending regulatory approval. TradeWeb will maintain its global headquarters in Jersey City, NJ. Average daily trading volume on TradeWeb exceeds $250 billion.


Thomson TradeWeb is the leading online fixed-income trading network with over 12 million trades executed and total volume surpassing $200 trillion since its inception in 1998.

TS Capital Launches $200 Million Fund Of Hedge Funds

Alternative asset management firm ThinkStrategy Capital, today announced the launch of the TS Multi-Strategy Fund LP Class B. The TS Multi-Strategy Fund is a hedge fund-of-funds designed to generate solid returns from creative strategies while preserving capital.

With a $1 million minimum investment and $200 million in assets under management, according to the announcement, this new class is an unleveraged version of ThinkStrategy's existing TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of current investments from which TS selected the best performers.

Headquartered in New York, NY, the fund targets medium-term capital appreciation in the mid-teens per annum with controlled risk. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.

The TS Multi-Strategy Fund has an initial lock up period of 12 months with quarterly returns.

Camelot Hedge Fund Launch Announced

Alternative investing consultant and director Bob Torkelund has announced the launch of a new hedge fund, Camelot Global Investments, with the initial offering period running throughout October 2007.

Camelot Global Investment is a Global Macro Fund with a strategy of utilising global economical developments, cycles and events. Due to the investments in Futures, Camelot is able to profit from both falling and rising markets.

Analysis is founded on data from Torkelund's own researched stocks, the analysis of political and social environments, knowledge of biological facts and continuous observation, according to the statement.

State-of-the-Art trading programmes independently developed are used by an experienced team of traders, analytics and experts. Since the trading start, according to the statement, Camelot has outperformed almost all investments in different classes and performed well not correlating to the world markets.

Torkelund is Director of Global Retail Sales, Marketing & Operations for several boutique fund managers. He was also responsible for the formulation and execution of Threadneedle Investments as a serious and reliable player in Continental Europe.

Tokyo Stock Exchange Has Strong Week

Stocks rose on the Tokyo Stock Exchange this week giving the Tokyo market a strong start, catching up with U.S. and other overseas counterparts.

The dollar's upswing versus the yen, which reflects receding expectations for an imminent interest rate cut by the Federal Reserve, provided an additional boost to the market, brokers said.

"The better-than-expected employment data eased worries about the U.S. economic outlook," said Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc. "But there were few domestic incentives to support the Tokyo market and turnover remained slack. So, many players chose to cash in profits before Japan's fiscal first-half earnings reporting season swings into full gear next week."

Kenichi Hirano, equity general manager at Tachibana Securities Co., pointed out that the market is vulnerable to selling as the recent upturn is providing long-awaited profit-taking opportunities to investors who bought stocks three to six months ago, before the U.S. subprime mortgage market meltdown rattled the global financial markets this summer.

"It will take some time before the market fully absorbs the profit-taking pressure," said Hirano. "But given the improving overseas market environment, the Tokyo market is certain to stay in a long-term uptrend."

Consumer loan companies Promise, Aiful and Takefuji advanced, thanks apparently to short covering by hedge funds.

Meanwhile, Nippon Steel, JFE and Sumitomo Metal Industries slipped, due to speculation that the commercialization of carbon fiber automotive parts may reduce demand for steel. The recent downturn in crude oil prices pushed down Inpex, AOC and Nippon Oil.

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An American Hedge Fund Review

Well, I just received the final copy today, I actually read this book a couple of months ago when Timothy Sykes sent me an advance copy, my then review making it into the book under "What the people say-Financial Journalists"!

I like the way the book was self published under the "Bull Ship Press" name, I guess Sykes has always been a bit of a madcap entrepreneur. There is a lot of insight and honesty in "An American Hedge Fund", and Sykes has an exciting way of explaining his strategy.

This bit is pretty relevant, "Opportunities come and go. The key is to remain nimble enough to be able to take advantage of situations when they arise."

Besides being the book's official release date, Sykes also announced the closing of the Cilantro fund on October 1st, a day he said, "Will free him from the shackles of SEC regulations he will be able to detail Cilantro's complete trading history- winners and losers."

Rubinstein & Rubinstein Launch Alternative Offshore Fund

Rubinstein & Rubinstein, LLP has launched an offshore alternative investment fund practice which has seen a great deal activity in the past few months.

Taking advantage of a tax treaty between the United States and a foreign government, Rubinstein & Rubinstein established the fund in an offshore jurisdiction, reducing taxation to 1 to 2%. In addition, private placement and foreign registration allowed the fund exemption from S.E.C. and blue sky registration.

One of the fund's highlights being that Asher Rubinstein represented a principal in establishing an international co-investment fund based in New York, London and Dubai. The fund will make investments in private equity buyouts, real estate, aerospace and other sectors. It has also been capitalized by various onshore and offshore investment sources, including "sovereign wealth," i.e., investment by a foreign government.

In addition, Kenneth Rubinstein and Asher Rubinstein represented United States-based principals and foreign- based managers of an investment fund dedicated to investments in the insurance settlement industry.

Kenneth Rubinstein has also developed a proprietary tax strategy to allow tax-free access to offshore deferred compensation assets by hedge fund and private equity fund managers.

The strategy is particularly timely, given the recent calls by members of the United States Congress to increase taxes on the "carried interest" portion of fund managers' compensation. Rubinstein & Rubinstein's tax patent application for this strategy is currently pending before the United States Patent and Trademark Office.

Hedge Fund BlackRock Aquisitions Quellos Fund of Funds

Hedge fund investor BlackRock, Inc. today announced that it has completed its acquisition of the fund of funds business of Quellos Group, LLC. BlackRock is calling the combined fund of funds platform BlackRock Alternative Advisors.

Laurence D. Fink, BlackRock’s Chairman and Chief Executive Officer said, “Extreme market volatility over the past couple of months accelerated the opportunity for strategic interactions between our respective investment and risk management professionals and reinforced the value of operating on a unified, global platform."

"In addition, the market environment bolstered our belief that demand for top quality funds of funds and innovative investment solutions will continue to increase. We are excited to welcome our new colleagues and look forward to delivering the tremendous capabilities of BlackRock Alternative Advisors to our clients." Fink said.

BlackRock is one of the world’s largest publicly traded investment management firms. As of June 30, 2007, assets under management were $1.230 trillion. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East.

Alternative Investor Partners With Former Head Currency Trader at Tudor

Alternative investor Last Atlantis Capital Management and Jerry Considine, former head currency trader at Tudor Investment, have partnered to introduce LACM Foreign Exchange, Share Class W within the Last Atlantis Partners Fund.

The share class will be traded by Mr. Considine and seeks to capitalize on near-term opportunities in the global currency futures and foreign exchange markets.

The short-term, largely discretionary methodology was developed by Mr. Considine and has produced consistently non-correlated returns, according to the press release. "It combines fundamental and technical market analysis, sentiment evaluation, crowd psychology assessment, and money management to create a risk-averse investment strategy."

Irwin Berger, managing partner of Last Atlantis said, “Jerry has established an exceptional track record and reputation over the course of his career including stellar turns at Tudor and his own trading firm,.....His currency program adds another quality alternative to our Last Atlantis Partners platform.”

With the launch of this new share class, Mr. Considine continues his nearly 30-year career trading the currency markets.

Last Atlantis Capital Management (St. Thomas, USVI) develops and markets innovative alternative products. Last Atlantis Partners, LLC is master-feeder offering currently providing onshore and offshore investors access to fifteen segregated share classes with individual fund strategies incorporating proprietary and discretionary options, trend following futures, multi-strategy, macro discretionary, credit receivables, real estate financing and others.

The company was founded by managing directors Irwin Berger and Stig Ostgaard, one of the original Richard Dennis “Turtles”, and Last Atlantis Capital, LLC, a professional trading firm with highly-developed systems incubation and trading technology.

Reuters Hosts Solution for Hedge Fund Trading in Singapore

Reuters and BT announced the launch of the lowest latency Proximity Hosting Solution for hedge funds trading on the Singapore Exchange Limited.

Rama Pillai, Senior Vice President of Intermediaries and Market Access at SGX said, "The Singapore Exchange is seeing an increasing demand for low-latency direct access to our markets by high-frequency traders as well as our traditional customer base. We welcome the Reuters Proximity Hosting Solution."

Edward Haddad, Managing Director, ASEAN, Reuters said, "We recognize the increasing demand for low latency feeds to meet the needs of a growing automated and programmed trading community on the Singapore Exchange. Reuters provides our clients with a complete suite of comprehensive capabilities -- from algorithmic trading tools, such as tick history, tick capture and time-stamped news, to proximity hosting to allow our customers to be first to market."

Demand for trading services that are hosted within close proximity of the exchange is increasing as institutions look to take advantage of low latency data provision and reduced time to trade execution. This enables firms to gain competitive advantage through programmed trading strategies that can consume data and execute trades more quickly.

This proximity hosting solution provides an end-to-end hosted service that is fully managed, and that also allows clients to co-locate their own applications within the Reuters data centre.

Growth in IPOs Help European Hedge Funds Gain Ground

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.

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.

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.

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.

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.

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.