Connecticut Hedge Fund Association Member Joins Bracewell & Giuliani

Bracewell & Giuliani LLP has appointed hedge fund specialist John A. Brunjes as partner in their Private Investment Funds practice.

“Connecticut is home to hundreds of hedge, private equity and other alternative investment funds, as well as a number of the country's largest institutional investors,” said Evan Flaschen, the Connecticut-based chair of the firm’s Financial Restructuring Group. “John is a leader in the hedge fund community and a great addition to our highly-regarded private investment funds practice in New York and our premier national and international financial restructuring practice,” added Mr. Flaschen.

Brunjes is to handle law matters for institutional and individual investors, investment funds, and fund managers, as well as for public and private operating companies. His practice focuses on private equity, venture capital and hedge fund formation, operations, and investment transactions, with particular emphasis on advising private domestic and offshore pooled investment funds and managed accounts and their stakeholders. He also advises funds and operating companies on state, federal, and international compliance and enforcement considerations.

In the managed funds sector, Brunjes has formed and represents institutionally-sponsored and entrepreneur-organized hedge funds ranging in size from smaller funds with state-registered advisers, to larger domestic and international funds and funds of funds with billions of dollars in assets under management.

Brunjes has served as an Assistant Attorney General in the Finance and Antitrust Divisions under Connecticut Attorney General Richard Blumenthal, during which time he was Connecticut’s primary securities enforcement lawyer.

Bracewell & Giuliani LLP is a prominent international law firm with more than 400 lawyers in Texas, New York, Washington, DC, Connecticut, Dubai, Kazakhstan and London.

Hedge Funds Care Announces Benefit Gala

The Midwest Chapter of Hedge Funds Care (HFC) announced its sixth annual benefit, “Open Your Heart to the Children”. Organizers of the black tie gala hope to top the $900,000 which was raised at last year’s event.

More than 500 members of the alternative investments community and their guests are expected to attend this year’s benefit. They will be treated to food, music and silent and live auctions. The latter will include a lavish U.S. Open Tennis package, an “instant” wine collection comprised of more than 100 bottles of fine wine, storage and an in-home tasting party with a professional sommelier, and passage to the Hollywood premier of Will Smith’s upcoming movie “Hancock”.

One unique and special live auction item will be created before attendee’s eyes over the course of the benefit —an oil painting by noted Los Angeles artist Scott Glazier which will be taken home by one generous bidder.

“This great event, with all of the very attractive auction items, will raise much needed funds to support children who are suffering from abuse and neglect which is a widespread national tragedy and a serious problem in our local communities,” said Melinda Kramer, Co-Chairperson of the HFC Midwest Chapter. “Hedge Funds Care is doing its part to help children in these situations and to prevent them. Our industry members are very passionate about making a difference which is demonstrated by their generous donation of money, time and talent,” she continued.

HFC is a global organization composed of concerned alternative investment industry professionals committed to protecting children from abuse and neglect. To date, the Midwest chapter of HFC, based in Chicago, has distributed more than $2.6 million in 73 grants for the cause. HFC works with select local agencies and programs that can best serve the needs of these children. Grants are made through a rigorous process to insure that their funds have the highest impact possible.

Established in 1998, Hedge Funds Care is an alliance of concerned hedge fund industry professionals committed to protecting children from abuse and neglect. The group includes accountants, attorneys, fund managers, information providers, investors and prime brokers. The Midwest chapter, founded in 2002, has raised $2.7 million to combat child abuse and neglect throughout the Midwest region.

Hedge Fund Man Investments Launches Own Product

Man Investments announced the launch of Man Vision Index Notes, 'We are seeing significant changes in world capital flows,' says Man Group chief executive Peter Clarke.'

The launch centers on a capital-guaranteed hedge fund product that seeks to benefit from the key developments of the future including the growth of emerging markets, the impact of new demographics, climate change and future sources of energy, all of which the firm says offer significant return potential.

Man Vision Index Notes combines the complementary approaches of two of the group's hedge fund managers, AHL and RMF. AHL employs systematic, statistically-based investment processes to identify inefficiencies in more than 120 markets around the world, while RMF applies strategic research and innovation to select specialist hedge fund managers in new fields to create multi-manager portfolios

Man Vision targets an investment exposure of 150% of net asset value, allocating equally to AHL and RMF across a wide range of markets and investment strategies including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.

Man Vision will be open for investment from until June 3, with a possibility of extension, with a minimum subscription of $50,000 or EUR 50,000, and a maturity date of December 31, 2020.

Man Investments is one of the world's largest providers of hedge fund investments with a 25-year record in alternative investments and an estimated $75 billion under management. Part of London-listed Man Group, the firm employs some 1,600 people at its investment centres in London and Pfäffikon, Switzerland, and offices in Chicago, Hong Kong, Dubai, Dublin, Miami, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.

Top 50 Hedge Fund Blogs

UBS Reports Hedge Fund Losses

UBS issued a Shareholder Report detailing the key facts relating to the firm’s positions and losses through December 31, 2007. In the summary the Swiss bank says thats it's massive subprime losses were the result of excessive risk-taking and insufficient controls.

UBS said that three of its business units are principally to blame for the losses totaling $37.4 billion over the past nine months.

UBS pinpoints a series of failures that began with its now-defunct U.S.-based hedge fund Dillon Read Capital Management. "The closure of DRCM should have been a basis for a more comprehensive review and assessment of all subprime [debt] positions in the investment bank, and for a review of UBS's risk assessment processes in connection with the same," the bank said in the report.

Other mistakes include a short-term investment outlook and a failure to appreciate the severity of the American housing crisis early on.

UBS made the summary of its report to the Swiss banking regulator public because of pressure from Ethos Fund, an activist shareholder.

UBS Teams Up With Hedge Fund Enso To Create Alternative Fund

UBS AG is teaming with $600 million hedge fund, Enso Capital Management LLC, creating UBS Enso Management LLC. The new fund will pursue alternative stock investment strategies, the companies said in a joint statement.

UBS clients qualified as institutional investors will be able to invest in the fund, UBS Enso will invest both long and short in a broad range of global equity securities. The fund's investment objective is to achieve consistent risk-adjusted returns that are uncorrelated to both general market indices and hedge fund indices, while at the same time preserving capital and minimizing downside risk and volatility.

"We are excited to be aligning Enso with the exceptional wealth management platform at UBS," said Josh Fink, CEO and Chief Investment Officer of Enso. "Partnering with UBS, a recognized leader in the management and distribution of over $100 billion in alternative investment assets, creates a unique and powerful opportunity to expand our global investor base."

The companies said portfolio managers from Enso will manage the fund's investments while UBS will oversee their activities. It said UBS Enso "will seek to identify unusual investment ideas in niche industries that may be overlooked by typical analytical methods."

Founded in 2002, Enso is an investment management firm based in New York that invests in both public and private companies globally, with over $600 million in assets under management. Roughly two-thirds of the portfolios Enso currently manages are allocated outside of North America.

UBS is present in all major financial centers worldwide. It has offices in 50 countries, employing more than 80,000 people around the world. Its shares are listed on the SWX Swiss Exchange (SWX), the New York Stock Exchange (NYSE) and the Tokyo Stock Exchange (TSE).

Hedge Fund Bayou Group Founder Sentenced To 20 Years

U.S. District Judge Colleen McMahon has now sentenced the founder of hedge fund Bayou Group, Samuel Israel, to 20 years in prison. Daniel Marino, the former finance chief was also sentenced to 20 years back in January.

The judge said of Israel at the sentencing, "You were, in every meaning of the sense, a career criminal, you ruined lives,...Financial fraud, white-collar crimes are every bit as heinous as every other type of crime and they will be punished severely."

Hedge fund founder Samuel Israel III and finance chief Daniel Marino pleaded guilty in 2005 to using fake results and a phony auditing firm. Investors lost approximately $400 million according to court papers, but the government put the loss at over $450 million.

Samuel Israel must also pay $300 million in restitution for masterminding a “ponzi scheme” in which investment returns were paid with new investors’ money. His sentence is the longest for a white-collar crime since Enron.

The co-founder James G. Marquez was also implicated in the conspiracy and was sentenced to 51 months in prison.

The World's Ultra-Rich List

The Family Office Organisation has just released the 3rd Edition of "The 3300 Global Family Office Database 2008", with 1800 entries from the USA and 1240 from Europe.

The world's ultra-rich families have established these 'Family Offices' to ensure that their wealth is preserved for future generations. The annual cost to manage a Family Office can exceed $2 million. However, assets - under-management would normally exceed $500 million and well into the Billions.

Family Offices started to evolve in the late 1800s - early 1900s on the sale of major family businesses during the industrial revolution. Instead of dividing the proceeds to the family siblings at that time. European aristocratic families had similar set-ups, called Estate Offices; many are still in existence to this day. However at that time, as now, most European families were predominately major land owners.

Family Offices do not invest in the kind of retail financial products one finds on the High-Street. Like financial institutions, they invest in "High-Risk / High Return" investments and tend to retain a mixed portfolio of investments, primarily in alternative investments such as Hedge Funds, Private Equity, Bonds, Equities, Commodities (such as gold), Futures & Options and Currency Trading to justify a higher rate of return. Real estate investments and shareholdings will of course remain a key part of their portfolio.

Since 1989, The Family Office Organisation has researched the world's ultra-rich families in depth. Since 2005, this research has been more keenly focused on Family Offices for the benefit of financial institutions and fund managers across the globe.

UK Hedge Fund Faces SEC Lawsuit

UK hedge fund Headstart Advisers Ltd. is facing a SEC suit alleging the hedge fund earned $198m in profits by manipulating U.S. mutual funds through late-trading and deceptive market-timing practices from 1998 through to 2003.

The suit, filed on Thursday by the Securities and Exchange Commission, is the second one this week filed against a British hedge fund for allegedly orchestrating a scheme to defraud US mutual funds.

In the civil action suit, filed in New York, the SEC said that Headstart and Najy Nasser, its then chief investment adviser, illegally profited by buying and selling mutual funds more frequently than allowed, sometimes after prices had been closed for the day.

Headstart had assets under management of at least $500m, according to the SEC filing.

Florida Hedge Fund Sues Citigroup

Hedge fund Falcon Strategies Two B LLC, is suing a business unit of Citigroup, accusing the financial giant of failing to disclose a change in risk, causing the West Palm Beach hedge fund to loose more than 40% of its value.

The hedge fund's law firm filed the suit in the U.S. District Court in Southern Florida on behalf of all purchasers of the hedge fund between Sept. 30, 2005 and Jan. 8, 2008. It is seeking class-action status and compensation and punitive damages.

The suit alleges Citigroup Alternative Investment LLC marketed the fund as low-risk and low-volatility, and then defrauded investors by failing to disclose its change to a far riskier investment strategy. The suit further alleges that the fund's management did so to increase income from its "exorbitant fees."

According to the suit, S&P had assigned the fund a S2 volatility rating. Ratings are given on a scale from S1 to S6, with S1 representing the lowest risk. On Jan. 8 S&P changed the rating to S5. The suit claims management had switched to riskier instruments without informing the investors.

The 18-page, four-count suit, accuses the defendants of: fraud, violations of the Florida Blue Sky Law, negligent misrepresentation and violation of the 1933 Securities Act.

Alex Akesson
Editor for HedgeCo.Net
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Goodman To Raise $500 Million For Asia Fund Launch

Australia based hedge fund and global property manager, Goodman Property Investors, is raising funds for a $500 million Asia Pacific fund of funds(FoF).

The new FoF will invest in established real estate funds across Asia, it has a target annual return of 14% and will invest in the traditional office, retail and industrial sectors as well as specialist sectors such as residential.

Andrew Smith, Head of Investment Strategy and Deputy Managing Director of Goodman Property Investors said, "We are launching this product in response to increasing demand from institutional investors for exposure to real estate in the Asia Pacific region." He said, "This demand reflects both the increasing appetite for cross-border property investment, and the current performance and diversification opportunities the region now offers."

With offices in Australia, Belgium, China, Czech Republic France, Germany, Hong Kong, Hungary, Italy, Japan, New Zealand, Poland, Spain, The Netherlands and the United Kingdom, Goodman Property Investors has in excess of $13.8 billion in assets under management as of December 31.

Hedge Fund Services Group Formed By RBC

RBC Capital Markets, the hedge fund arm of the Royal Bank of Canada, has formed the RBC Global Prime Services Group to provide support to hedge fund managers, mutual fund managers and institutional asset managers.

Jeremy Frommer, head of RBC Global Prime Services said, "We recognize that the lines between hedge fund and traditional institutional managers are becoming more obscure as their needs become more similar....We decided to break down silos by bringing together, under a single umbrella, everything from prime brokerage to trading technology, securities lending to capital introductions, as well as financing."

The Global Prime Services Group, which has made a substantial investment in technology this year, has seen a 20% increase in clients and a related increase in assets under management in the past six months. It has also recently launched he RBC Capital Introduction Group, the RBC Emerging Manager Allocator platform, and the RBC Global Futures & Base Metals Group.

RBC Capital Markets is the corporate and investment banking arm of the Royal Bank of Canada (RCB). Its North American platform includes a significant U.S. middle market investment banking franchise and leading equity, underwriting, sales, trading and research businesses. Bloomberg ranks the firm as one of the top 15 investment banks globally.

Asia's Top Ten Hedge Funds

Asia's 10 largest hedge fund managers based on reported or estimated assets under management (AUM) as of March 31, 2007, according to a ranking by Alpha Magazine.


1. Sparx Group Co Ltd $6.7 billion

2. Value Partners Group $4.8 billion

3. Arisaig Partners $2.1 billion

4. Penta Investment Advisers $1.9 billion

5. Ward Ferry Management $1.8 billion

6. Lapp Capital $1.4 billion

7. Tree Line Investment Management $1.3 billion

8. Artradis Fund Management $1.2 billion

9. Tantallon Capital $1.1 billion

10. Asuka Asset Management $1.0 billion

Chada Launches Alternative Investment Division In London

European hedge fund advisor Carne Global Financial Services Group has announced the launch of alternative investment and wealth management technology and operational consultancy divisions in London.

Chief executive John Donohoe said, "The entire fund management industry - both traditional and alternative - is experiencing high demand for expertise in risk management and technology, particularly with the convergence of those industries with wealth management."

Carne said the new divisions add technology capabilities to the group's existing operational services and capitalise on its established presence within the hedge fund management industry. Carne also annonced the recruitment of Sunil Chadda and Phil Kitto.

Chadda joins Carne as head of alternative investments, he is previously of London-based financial systems consultancy Citisoft, where he was head of the hedge funds and derivatives practice for the past three years.

Kitto also joins Carne from Citisoft to lead the new global wealth management and private client division, after after a career including spells with UBS, Baring Asset Management and Mercury Asset Management.

The firm now advises more than 100 clients that oversee more than $200bn in assets, and has more than 40 staff in Dublin, London and Luxembourg, Chada offers expertise in hedge fund establishment, directorship programmes and hedge fund management operational and compliance services.

Hedge Fund Panel to Discuss Future of Advertising

A high-level panel of hedge fund experts are planing a forum to discuss and debate the state of hedge fund advertising and marketing in the alternative investment management community.

Panel-participant Phil Goldstein, the plaintiff who single-handedly defeated a plan to require hedge funds to register with the SEC, has even discussed suing the SEC on First Amendment grounds, which could lead to major changes in the industry.

The 1,600-member Managed Funds Association, represented on the panel by Benjamin Allensworth, senior legal counsel, has long advocated for a loosening of the SEC's restrictions.

Jay Gould, head of the Investment Funds Practice at Pillsbury said, "Hedge funds typically rely on provisions of the securities laws that prohibit general communications with the public, as those provisions are interpreted by the SEC, and also because legal counsel has drilled them on the need to 'fly below the radar' and keep their investment strategies solely for qualified investors."

"The panel also will discuss what hedge funds can and should do to effectively market themselves, while staying within SEC guidelines." Gould concluded.

Other forum participants are: Pillsbury's Terry Davis, who will provide a regulatory update; and Richard Dukas, president & CEO of Dukas Public Relations, which has long provided proactive publicity and media relations services to top hedge funds.

The panel is set to meet April 16th at the law offices of Pillsbury in San Francisco.

Blackstone Creates Fund Worth Over 10 Billion

Hedge fund Blackstone Group L.P. announced the closing of Blackstone Real Estate Partners VI (BREP VI) with capital commitments totaling $10.9 billion, creating the largest real estate opportunity fund ever raised.

The new fund has more then 60 investment and asset management professionals with broad experience across most real estate categories, including hotels, office, residential, retail, and other commercial properties.

The hedge fund firm has raised a total of nine real estate funds since inception, both funds for global investing and funds with a specific focus on Western Europe, with total capital commitments of $25.7 billion

Jonathan Gray, Senior Managing Director and New York-based co-head of Blackstone's real estate group, said, "We are delighted to have this vote of confidence from our investors. We believe there should be attractive investment opportunities for this capital given the market dislocation that exists today." Chad Pike, Senior Managing Director and London-based co-head of Blackstone's real estate group added, "With this fund we will be able to enter new markets and expand Blackstone's global investment activities."

The Blackstone Group L.P. is a leading 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 funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds.

In the past several years Blackstone has completed a number of major transactions including Equity Office Properties, Hilton Hotels, CarrAmerica, Wyndham Hotels, Trizec Properties and Southern Cross / NHP. The group has completed more then 225 separate investments in North America and Europe with a total transaction value of approximately $132 billion since 1992. Most recently the group opened offices in Tokyo, Mumbai and Hong Kong to expand Blackstone's real estate business in Asia.

Former Secretary of State for Texas To Host Entreprenurial Funding Conference

Hedge fund weath manager CACH Capital Management announced that former Secretary of State for Texas and current co-founder & Chairman Honorable, Geoffrey S. Connor will be a Keynote at the Central Texas Entrepreneur Funding Symposium.

The conference provides entrepreneurs access to experts and information to educate them on how to adequately fund their businesses. His keynote address, "Texas and the Global Economy", will pull from his extensive experience with the process of investment capital procurement, providing entrepreneurs with priceless insight on their funding issues.

The event will include panel sessions as well as breakout sessions. CACH Capital Management President and CEO, Michael Hundley, will be a featured speaker sharing his insight on private equity as an alternative source of funding. Mr. Hundley, a well-regarded and award winning manager in the financial services industry, often consults early stage companies helping them become "capital ready". His expertise in institutional sales and service management extends worldwide.

Central Texas entrepreneurs are already signing up for the Funding Symposium which takes place on April 18th, at the JJ Pickle Center.

CACH Capital Management, LLC, a Texas-based global wealth management firm, manages portfolios, global hedge funds and business advisory services. Each CACH team member has been selected for the specialized expertise he brings to the firm. The human capital of CACH Capital represents over 50 years of investment experience and over 100 years of combined expertise in the business, legal and financial fields.

Hedge Fund Man Group Exceeds Expectations

Hedge fund manager Man Group plc announced that is "Extremely well placed to see continued strong growth." In a statment regarding its close period for the year, Man said, "This is a very strong set of results, achieved through a period of significant market turmoil."

Funds under management have risen to around $75 billion, it is anticipated that profit for the year ending 31 March 2008 will be ahead of market expectations.

Man Group's most recent fund launch, which starts trading 1 April, raised $1 billion and has been included in FUM of $75 billion for the year to 31 March 2008.

Peter Clarke, CEO of Man Group, said, "Strong sales momentum has been maintained with sales of $15.8 billion in the year. Good performance has added $5.3 billion to investor assets during a period when global markets were exceptionally volatile."

Indian Market For Data Growing, With Hedge Fund Company In The Lead

New York Top 5 hedge fund Och-Ziff's firm Ctrl S. Data Centers, said it is planning to invest $250 million to open four data centres in the country in next 2-3 years.

"We are planning to open four data centres in Bangalore, Chennai, Delhi and Mumbai by 2010 which would entail an investment of 250 million dollars," Ctrl S Data Centers Chairman and Managing Director S. Reddy said.

The Asian Data Centre market is predicted to increase by a compound annual growth rate of 11.5% over the period from 2006 to 2010, with India becoming the fastest growing market.

He said the data centre industry in the country is expected to grow, with nearly 1,700 square feet data centre space expected to be created in India by 2010.

Hyderabad-based Ctrl S Data Centers is promoted by the Rs 500-crore Pioneer Group along with IDBI and hedge fund Och-Ziff.

Hedge Fund Activsts Push Aerojet on 2,300 Acre Deal

Feeling the pressure from hedge fund shareholder Steel Partners, GenCorp Inc. announced an agreement with the state Department of Toxic Substances Control, saying it had obtained environmental clearance on 2,300 acres earmarked for a massive real estate project.

GenCorp's company, Aerojet, says it has passed a key milestone in its land-development effort, the agreement gives Aerojet the green light on 2,300 acres that are to become part of the Rio del Oro development on the edge of the company's Rancho Cordova complex.

GenCorp has been under pressure from hedge fund activists to accelerate its land-development program. Earlier this month, GenCorp president and chief executive Terry Hall resigned as the company lost a power struggle with its largest shareholder, New York hedge fund Steel Partners II.

The hedge fund now has effective control of the GenCorp board and is expected by Wall Street analysts to step up the land-development business.

Steel Partners II, L.P. is a long-term relationship/active value investor that works with the management of its portfolio companies to increase corporate value for stakeholders and shareholders.

Babylon Fund Does Well In Iraq

Godvig Capital Management's hedge fund, The Babylon Fund, reported a rebound in Febuary, reviving a long-term uptrend, according to the company.

All asset classes in the portfolio contributed to the rebound, Godvig said, Iraqi bond yields fell, equity prices of oil drilling companies rose, as did banking stocks on the Iraqi stock exchange.

No longer the lone foreigners on the trading floor in Baghdad, the hedge fund has been helped by the record high oil prices and the organic profit explosion in Iraq. Raised expectations of doubledigit growth with low inflation and signs of political progress are feeding the market sentiment.

The fund maintained their prime investment strategy to increase Babylon's exposure in a broad-based manner into undervalued blue chips on the Iraqi Stock Exchange. Babylon aims to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi dependant securities.

Hedge Funds for Habitat Raise $20,000

Hedge Funds for Habitat-NYC hosted an event on Friday that brought 30 volunteers from the hedge fund industry together, many with no prior construction experience, to drywall rooms, saw wood, measure and cut metal studs and help frame walls.

They also raised $20,000 to help fund the construction costs. The hedgies worked side-by-side with some of the low-income families who will own these affordable condos.

The build day was sponsored by Damian Handzy, CEO of Investor Analytics. Handzy and six members of his staff also volunteered for the day doing construction work.

"It's great to see so many people from the alternative investment industry coming together to give something back to the city that has been so good to us," said Stuart Feffer, Chair of Hedge Funds for Habitat-NYC and Co-CEO of LaCrosse Global Fund Services. "The market has been tough this week, and it's terrific to get people away from their screens and behind some tools."

Susan DeMaio, Senior Vice President at Pequot Capital Management, had volunteered in the past with Habitat, building a single family home. She said she jumped at the invitation to join another Habitat build. "It is inspiring to work with people in the hedge fund industry and with Habitat-NYC," DeMaio added."

Hedge Funds for Habitat-NYC is an effort to provide hardworking New York City families with a homeownership opportunity through Habitat for Humanity.City. With the help of an average of 10,000 volunteers every year, Habitat-NYC has built more than 180 affordable homes in the five boroughs of New York City.

Hedge Fund Asks Investors To Replace Bank Loans

Hedge Fund Carrington Capital Management LLC is asking investors to lend it as much as $200 million to replace bank loans, according to the Financial Times.

The $1 billion hedge fund has offered investors an 18% interest rate on new preferred shares they said in a letter to investors from Carrington.

The hedge fund, which specializes in mortgages, said that their relationship with financiers Citigroup Inc. and JPMorgan Chase & Co. remains "good," according to FT.

Carrington Capital Management, LLC ("CCM"), is a privately managed investment management company, it currently has over $1 billion in assets under management.

Players and Coaches Participate to Raise Funds For Children

Hedge Funds Care is sponsoring yet another "Open Your Heart to the Children Benefit", this time including the San Francisco 49ers.

The Co-Owner, John York, will join current 49ers players and coaches including Head Coach Mike Nolan, 49ers center Eric Heitmann and linebacker Manny Lawson, and 600 people from the West Coast hedge fund industry at this year's dinner, which is well on its way to raising more than last year's event.

The event will feature silent and live auctions, along with wine tasting from premier Napa and Sonoma Valley vineyards. Funds raised by the event will be used to provide grants to existing organizations that address the prevention and treatment of child abuse in the Bay Area.

"We are excited to host this event in San Francisco and to partner with the 49ers Foundation for the seventh time," Jolly said. "Last year's event was a tremendous success, raising more than $1,000,000. We look forward to the continued support of the hedge fund industry for this very worthy cause."

Hedge Funds Care is an industry alliance formed in 1998 with the sole mission of raising funds to prevent and treat child abuse. To date, the group has raised more than $27 million nationally. In addition to the dinner in San Francisco, Hedge Funds Care also holds events in Atlanta, Boston, Chicago, Denver, London, Toronto, Cayman Islands and New York.

The San Francisco 49ers Foundation is the non-profit community funding arm of the San Francisco 49ers. Now in its 16th year, the San Francisco 49ers Foundation supports development programs for underserved youth that keep them safe, on track and in school. A significant portion of its funding goes towards family violence prevention programs and activities that teach youth leadership and respect. For more information, visit www.49ers.com.

Hedge Funds ‘Defend Vigorously’ Their Disclosure Rights

Hedge funds Children’s Investment Fund Management (TCI) and 3G Capital Partners reponded to a lawsuit yeasterday, saying the CSX filing was "without merit".

“It is unfortunate that CSX has chosen to manipulate the governance and Board election process by delaying the annual meeting and filing baseless claims," the hedge funds said in a joint statement, "These allegations are wholly without merit and we will defend ourselves vigorously.”

In the filing with the Federal Court in New York, railroad company CSX alleged the two hedge funds had not met U.S. regulatory requirements to disclose the size of their holding in the company.

TCI is a London-based asset manager founded in 2003 which manages The Children’s Investment Master Fund. The majority of TCI’s profits go to The Children’s Investment Fund Foundation, a non-profit organization focused on improving the lives of children living in poverty in developing countries.

3G manages a private investment fund that invests in global equities and special situations.

Heller Joins Hedge Fund Association board of directors

Richard Heller, a partner with the law firm Thompson Hine LLP, has been appointed to serve on the Hedge Fund Association 2008 board of directors.

The Hedge Fund Association is an international not-for-profit association of hedge fund managers, service providers and investors formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds.

Heller was selected by industry peers to represent hedge fund service providers. In this role, he will contribute his time and experience to help connect, promote and grow the association.

As a member of Thompson Hine's Corporate Transactions & Securities practice group, Heller focuses his practice on securities matters. His experience includes formation of private offerings including hedge fund offering documents and exhibits and related securities filings and defending registered representatives before the FINRA.

Heller has served three times on the SEC's Business Forum on Small Capital Formation, which has published recommendations to the White House.

Established in 1911, Thompson Hine is a business law firm dedicated to providing superior client service. For the last several years, the firm has been named one of the Best Corporate Law Firms in America (in an annual survey of corporate directors conducted by Corporate Board Member magazine). With more than 400 lawyers, Thompson Hine serves premier businesses worldwide. The firm has offices in Atlanta, Brussels, Cincinnati, Cleveland, Columbus, Dayton, New York and Washington, D.C.

The $240 Million Acquisition Of Bear Stearns

JPMorgan Chase & Co. announced the acquisition of Bear Stearns Companies Inc. The Boards of Directors of both companies have unanimously approved the transaction.

Based on the closing price of March 15, 2008, the transaction would have a value of approximately $2 per share, a total of $240 million.

"JPMorgan Chase's management team has a strong track record of effective merger integration," said Heidi Miller, CEO of JPMorgan Treasury & Securities Services business. "We will work closely in the coming weeks with Bear Stearns' clients and management to execute the transaction quickly."

In addition to the financing the Federal Reserve ordinarily provides through its Discount Window, the Fed has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.

"JPMorgan Chase stands behind Bear Stearns," said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. "Bear Stearns' clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns' counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner."

Dimon added, "This transaction will provide good long-term value for JPMorgan Chase shareholders. This acquisition meets our key criteria: we are taking reasonable risk, we have built in an appropriate margin for error, it strengthens our business, and we have a clear ability to execute."

"The past week has been an incredibly difficult time for Bear Stearns. This transaction represents the best outcome for all of our constituencies based upon the current circumstances," said Alan Schwartz, President and Chief Executive officer of Bear Stearns.

JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries.

The Bear Stearns Companies Inc. serves governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services.

SIV To Pay Creditors In Full

Justice Etherton has ruled that structured investment vehicle (SIV), Whistlejacket, must pay off creditors that were due to be paid on the day it declared insolvency.

A statement on the ruling was issued, detailing how different holders of debt issued by Whistlejacket would be paid. The court ruled that holders of Whistlejacket U.S. medium-term notes, due to be redeemed on February 15 on the same date as the insolvency notice, should be paid the amount due in full.

The obligation to repay them "occurred prior to the occurrence of the Insolvency Redemption Event and therefore did not fall to be redeemed on the Insolvency Redemption Date," the statement said.

The decision may have some impact on how creditors of other troubled vehicles, such as Cheyne Finance, set up by hedge fund Cheyne Capital Management, and Rhinebridge Plc, set up by German bank IKB will be paid.

Deloitte & Touche was appointed as receiver of Whistlejacket on February 12 after a drop in the value of the SIVs assets led its sponsor, Standard Chartered, to shelve a plan to rescue it by providing liquidity. The SIV was declared insolvent on February 15.

Hedge Funds Rebound In Febuary

The Greenwich Global Hedge Fund Index (GGHFI), which currently includes 1091 hedge funds, returned 2.21% in February, rebounding from January’s poor returns.

The S&P 500 and MSCI World Equity posted negative returns, while the FTSE 100 gained. All hedge fund strategy groups ended the month with gains.

"February’s rebound in the midst of market uncertainty continues to highlight the diversification benefits of hedge funds," notes Margaret Gilbert, Greenwich Managing Director.

Directional Trading Group’s return was the strongest, driven largely by futures managers who capitalized on volatile commodities markets. Long-Short Equity Group strategies also benefited from choppy equity markets and for the second month in a row, dedicated short sellers were the top performers in this group.

Greenwich Alternative Investments currently manages one of the world’s largest hedge fund databases.

Hedge Fund Manager Under Record Attack For Discrimination

Gill Switalski, a city lawyer and head of legal affairs at F&C Asset Management is talking to lawyers about a record compensation payout of £13.4 million ($27 million).

The mother of 2 special needs children had to leave her career after being subjected to 18 months of sexual discrimination and harassment, according to an employment tribunal.

Switalski was previously named as one of the legal world’s "Hot 100" and must be paid compensation over her claims that she was undermined, undervalued, bullied and marginalised by the company, the tribunal said. Switalski sold her family’s £3.4million ($6.8 million) home to help pay for her legal battle against the hedge fund manager.

Switalski complained she was overlooked for management positions and sidelined in favour of her deputy on a project to buy a hedge fund. At the same time a male employee at the firm who also had children with special needs was allowed to take time off and work from home, her lawyers said.

After Switalski’s mother died suddenly she was sent an email demanding her mother’s death certificate for the firm’s travel insurance claim, the tribunal in central London was told.

A severe illness and 3 surgeries later, Switalski went on sick leave and never returned to the company, lodging formal complaints about bullying, harassment, intimidation, sex discrimination and victimisation.

Her lawyers have put the cost of her psychiatric damage and loss of earnings, pension and career prospects at £13.4 million ($27 million), which would be the biggest sex discrimination payout in Britain.

F&C, which currently manages £102 billion ($205.8 billion), has lodged an appeal denying Switalski’s claims.

Investcorp Wins Awards For Best Hedge Fund Manager

Investcorp was declared the Best Institutional Hedge Fund Manager at the second Hedge Funds World Awards, also winning the Special Merit Award.

The awards, sponsored by Man Investments, are designed to recognise and celebrate companies and individuals who have demonstrated an unparalleled ability to succeed, continually set standards of excellence, and who will be the future stars of the industry.

CEO of Man Investments Middle East Ltd Antoine Massad said, “All the winners and nominees deserve hearty congratulations, for their achievements over the past year.”

The other winners being; Best Fund of Fund Provider - Harris Alternatives; Most Innovative Project - Frontier Capital Management; Best Newcomer - EFG Hermes; Best Hedge Fund Administrator - Apex Fund Services; Best New Fund – Rasmala and Best Retail Product Provider - Dawnay Day Milroy.

The awards event also raised funds for PlaNet Finance, an international non-profit organisation dedicated to alleviating world poverty through the promotion of microfinance initiatives around the world.

In 2005, PlaNet Finance launched an initiative to promote micro-lending in the Middle East and North Africa and today it has offices in UAE, Morocco, Egypt, Jordan, Lebanon and Palestine.

The winners were announced at a gala dinner for 400 guests at the Madinat Jumeirah hotel in Dubai which took place in concert with the Hedge Funds World Middle East Conference 2008, the largest event of its kind in the region.

Client of Hedge Fund Company To Lead Sales Efforts

A client of Cutler Capital Management liked the investment style of the hedge fund company so much, he came out of retirement to join the investment advisory firm as Director of Business Development.

Allan M. Kline recently retired from his position as Vice President and Chief Financial Officer for Skyworks Solutions, but the opportunity to work with Cutler Capital motivated him to return to work.

Cutler Capital's hedge funds follow a growth and income strategy, investing in convertible securities, real estate investment trusts (REITs) and dividend-paying stocks. Kline has first-hand knowledge of convertible securities, having used them to raise capital successfully while at Skyworks.

"The key to success is to believe in what you're selling," Kline said. "As a long-time client, I believe in Cutler Capital and its investment style, so I welcomed the opportunity to join the company."

"It is a great validation of our investment style to have a financial professional of Allan's caliber join Cutler Capital Management," said President David Grenier. "His addition is both a first-hand endorsement of what we're doing and a tremendous opportunity that we believe will lead to significant growth for us."

Cutler, which has total assets exceeding $245 million, currently manages two hedge funds, the Cutler Investment Fund, LP and the Cutler Income and Growth Fund I, LP, as well as individual portfolios.

Lipper's First Hedge Fund Awards

Lipper's first Hedge Fund Award winners were announced yesterday, over 3,600 funds were eligible for the eighteen awards across the European and Offshore fund domiciles.

A total of fifteen portfolio managers were rewarded, with Thalia SA, Gems Management and UG Investment Advisers each winning in two categories. The calculation period for the awards extended over twelve consecutive months ending 31 December 2007.

"Lipper Hedge Fund Awards, based on our quantitative fund rating methodology, recognise the combined return and risk achievements of hedge fund managers," Dr Gabriel Burstein, Lipper's Global Head of Research, said, "Congratulations to Lipper's award winners in what was a very difficult year across all markets. Despite this fact, hedge fund assets under management continued to grow significantly last year".

A second Lipper Hedge Fund Award event will recognise the leading hedge funds domiciled in North America and take place in New York on 9th April. In line with Lipper's existing mutual fund award methodology, the winning hedge funds were those with the highest Effective Return value within each eligible Lipper Global Classification for hedge fund strategies.

Lipper is a wholly-owned subsidiary of Reuters. Covering over 172,000 share classes and over 95,000 funds in 53 registered for sale (RFS) universes. For a list of the winners, see; www.lipperweb.com

Millennium Buys Ex-JPMorgan Hedge Fund

Hedge fund manager Millennium Capital Management announced the acquisition of Castlegrove Capital, a London based multi-strategy hedge fund active in global equity markets.

Castlegrove was set up by three ex-managing directors of JPMorgan's Global Equity derivatives group. The terms were not disclosed, but some of Castlegrove’s portfolio managers and support personnel will join Catapult Capital Partners, the London-based affiliate of parent Millennium Group, according to a news release.

"With this acquisition, we obtain a broader base in Europe and continue to participate actively in the consolidation of the hedge fund industry." Israel Englander, Chairman of Millennium, said. "We believe that we offer an attractive platform to talented portfolio managers who want to be freed of the administrative, legal, compliance and fund-raising burdens that attend the business of managing a hedge fund."

With $13 billion in assets under management, Millennium Capital Management is based in New York with affiliated offices in London, Beijing, Paris, Luxembourg, Singapore, Dallas, Texas and Greenwich, Connecticut.

Introduction to Carbon Markets and Emissions Trading

NYMEX Global Change Associates and the Environmental Markets Association is sponsoring a 5.5 hour class on carbon and emissions trading on April 1, in New York City at the New York Mercantile Exchange, 12:30 pm to 6:00 pm.

The half day seminar on US carbon markets will be taught by Peter Fusaro, Thaddeus Huetteman and Gary Payne. This training will be followed by an emissions trading electronic simulation and then mock trading on the NYMEX trading floor. The afternoon ends with a cocktail party.

According to the Environmental Markets Association, it is highly likely that within two years the US Federal Government will mandate economy wide greenhouse gas emissions reductions that will focus on reducing the US carbon footprint of over 6 billion tons. This new financial market will accelerate the rapid deployment of cleantech investment and requires understanding of how the cap and trade program will impact Fortune 1000 companies as well as create new investment opportunities.

The seminar is intended for busy people who in one afternoon can learn what carbon trading and finance, the state of the markets, and what are the investment opportunities.

This 4 hour class incorporates the following elements:

What are Environmental Financial Markets?
What are "Cap and Trade" programs and how did they emerge in the U.S.
What is Carbon Trading and Finance?
What risks and opportunities arise for companies under trading programs?
What lessons can be drawn from existing U.S. trading programs for carbon?
What will the California market look like?
What will impact the Northeast's Regional Greenhouse Gas Initiatives?
What is Congress now considering on climate change?
What is the EU Emissions Trading Scheme?
What alternative instruments are available in pre-compliance to lay-off risk?

Examples:

International offsets; What is the Clean Development Mechanism under the Kyoto Protocol

Voluntary programs;

What is the role of the Chicago Climate Exhange
Derivatives (Either exchange traded or over the counter)

What technology solutions are available? Other physical compliance options?

How does the cost of compliance influence carbon prices?

Practical aspects of Emissions trading Emissions Trading Simulation (EMA Trading Group Exercise)

Hedging positions using Exchange Traded Options (NYMEX Floor Exercise)

The Environmental Markets Association (EMA) is the premiere trade association for environmental industry professionals who are active or interested in the market-based solutions to combat pollution and create a sustainable environment.

Christian Hedge Fund Founder Arrested For Fraud

Hedge fund founder, Steve K. Wilson, was arrested last week on charges related to fraudulent hedge funds operating under the names; Christians in Crisis Investment Fund, Shake the Nations and Opus Capital Holdings. He is being held without bail.

According to FBI allegations, Wilson solicited individuals to invest in what he described as a high risk hedge fund which, based on the investment agreement, promised investors a 2% monthly return (24% annual return) on their investment. The agreement also gave the investors the ability to withdraw earnings, or after one year, the investor could ask for the return of their principal.

Investigators determined that Wilson maintained two financial accounts associated with Christians in Crisis (CIC). Investor contributions were deposited into a Washington Mutual (WaMu) account in the name of CIC Investment Fund. A portion of the money was then transferred into an Ameritrade brokerage account in the name of CIC International. An analysis of these two accounts demonstrates that the CIC Investment Fund operated as a Ponzi scheme.

During the period of March 2006 through July 2007, approximately $9 million was deposited into the WaMu account. Wilson withdrew at least $1.1 million for personal expenses such as a 2007 Porsche Cayman and a 2006 Sea Ray yacht.

He disbursed approximately $2.06 million to investors as capital appreciation or earnings. These payments were not the result of earnings and appear to be lulling the investors into a false sense of security. The money came from new investors.

Authorities say Wilson, a.k.a. Stefan Andre Wilson, changed his name to hide a fraud conviction and bankruptcy filing, and convinced some of his investors to refinance their homes in order to invest in his fund.

Hedge Fund Aramid Launches Into TV and Digital Entertainment

Hedge fund Aramid Entertainment is looking to raise a further $200 million to fund their diversification into television and other digital financing projects.

Simon Fawcett, chief executive of Aramid Capital Partners, said, "We have proved our ability to generate uncorrelated returns through the application of an asset-backed lending strategy to entertainment and digital content finance,... we are confident that the Aramid Entertainment Fund will continue to offer investors the opportunity to access genuine alpha returns outside the traditional markets in a low beta sector."

Aramid, a hedge fund specializing in the provision of mainly motion picture entertainment finance, has already invested $210 million and earned in excess of 20% in 2007. It provided financing to 20 independent film projects, invested in two studio finance deals in the United States, as well as in a live national U.S. theater portfolio.

The fund has sought steady risk-adjusted and non-correlating returns through providing financing solutions for producers, including tax credits and bridge and mezzanine financing to underwrite short- and medium-term liquidity on a low to medium risk level to producers and distributors of film, television and other entertainment.

Some of the projects Aramid is involved in are: "How to Lose Friends and Alienate People" based on the memoir of a struggling British writer trying to fit in at Vanity Fair magazine in New York. The film, which stars Simon Pegg, Kirsten Dunst and Jeff Bridges, is due for release in October. Other films to which Aramid has given financial backing include "Good," "The Secret of Moonacre," "Choke" and "Black Water Transit."

The Aramid Entertainment Fund is an open-ended investment company incorporated in the Cayman Islands. Aramid Capital charges a 2% annual management fee to institutional investors and a 3% fee to high-net-worth investors. The performance fee for institutions is 20% and either 25% or 30% for private investors. The fund administrator is Maples Finance and the minimum investment is $50,000.

Hedge Fund Road Show Launch

Oxford Funding Corporation announced that the company launched the road show this week for its hedge fund, the Oxford Opportunistic Mortgage Fund.

The hedge fund’s strategy is to hold, modify if necessary, and liquidate the mortgage assets at significant gains. The hedge fund and its investors will participate in the yields generated during the holding period, and from gains on the sale/liquidation of the mortgage assets.

Robert Dunn and Ron Redd, President and CEO of Oxford Funding, will begin the road show this week in New York. “We are making money for our current investors,” noted CEO, Ron Redd. “We expect investors to continue to seek the type of returns we have proven to our current investors,” he added. “Our strategy protects investors from the down market. We are the right answer at the right time,” he concluded.

The hedge fund has already received its first group of investors and has purchased its first mortgage loan portfolio at a steep discount to current appraised value.

“Our fund is the way for investors to protect themselves from the news we hear every day in this industry. Freddie Mac and Fannie Mae reported a total of $6.2 billion in losses for the fourth quarter of 2007 and predict multibillion-dollar losses for 2008. Even companies like American International Group and Ambac Financial Group who insure mortgage debt are getting hit hard,” concluded Mr. Redd.

Oxford Funding Corporation is a publicly traded asset resolution company specializing in the purchase and management of bulk mortgage loan portfolios. Senior management at Oxford has facilitated rehabilitated loan sales in excess of One Billion Dollars, traded billions of dollars of financial assets as principal and agent, and has established relationships with hundreds of financial institutions and loan investors nationwide.

Offering sets new standard in hedge fund management

Hedge fund affiliate, Citadel Solutions, today announced a partnership with Bloomberg to provide hedge fund administrative services through the Bloomberg terminals used by traders.

With more than $30 billion in assets under administration, Citadel said the package will diversify their revenue. Citadel described the product as a "hedge fund in a box."

John Buckley, President of Citadel Solutions, said, "We've greatly simplified the set-up of managing a hedge fund, allowing our clients to focus on what they do best, trading, and not focus on administration."

Launched in 2007, Citadel Solutions is an affiliate of Chicago-based hedge fund Citadel Investment Group, they provide technology-driven fund administration and
reporting services to hedge funds.

Financialization of America

DUMMERSTON, Vt. -- It seems hard to believe, but the finance, insurance and real estate sector (FIRE, for short) now constitutes about 20 percent of our nation's gross domestic product, while manufacturing contributes less than 13 percent. By comparison, in 1950, manufacturing was 29.3 percent of GDP and financial services contributed 10.9 percent.

In other words, more money is made today by shifting money around than in making things. And the FIRE sector no longer represents a group of institutions designed to raise capital for investment in productive activities; it is wealth generated from activities that contribute little to the actual economy.

Conservative writer Kevin Phillips calls it "financialization," or the process by which the FIRE sector assumes the dominant economic, cultural and political role in a national economy.

For example, energy prices. Last summer, commodities traders bid up the price of oil to $78 per barrel last summer on fears of more unrest in the Middle East after the Israel/Hezbollah dustup and another season of severe hurricanes. Neither thing happened, and oil prices slid down to about $50 per barrel by the end of 2006. Fear-based speculation drove up oil prices, and reality drove them back down.

If you invested in oil futures and got out at the top of the market, you made money. But what did it contribute to the larger economy? The rest of us paid more than we needed to for most of 2006 for heating oil, propane and gasoline, based on a possibility that some disruption of petroleum supplies might happen. That's what you get when the financial sector is totally divorced from reality.

Now, oil prices have crept back up to that level this summer, without an suitable alibi such as a hurricane or a war to justify $78 a barrel oil. Who is profiting and does this profit provide an good for the economy at large?

An equally good question is the long-term viability of an economy based on shuffling around financial assets.

It's hard to say whether the sharp swings in the stock market over the past week has been just a minor correction in stock values or the start of what could be a bigger problem.

The Dow Jones Industrial Average went all the way up to 14,000 on July 19 based on the hope that the collapse of the subprime lending market would not have an effect on the larger economy and that higher energy prices would not have an effect on consumer spending.

The reality, however, is that as much as $2.5 trillion could be at risk in bad mortgages and the frenzy of mergers and leveraged buyouts of companies fueled by borrowed money.

According recent figures from Moody's, the bond rating firm, nearly 20 percent of all mortgage debt is at risk, or about $2.5 trillion of subprime mortgages. About $1.4 trillion is at high risk of default, as many as 2.5 million mortgages will default in the next two years and about 20 percent of subprime loans written in the last half of 2006 will default. Investor losses could run into hundreds of billions of dollars.

On July 26, a record 10.59 billion shares changed hands on the three major U.S, markets. Several big deals - from Chrysler to Tyco Electronics - have been postponed in the last couple of weeks because of rapidly tightening credit. There's an estimated backlog of more than $300 billion in unsold bonds and bank loans. That's almost as big as the backlog of unsold homes in the United States right now, as housing inventories in some part of the country are at levels not seen in decades.

The implosion of the subprime mortgage market, where people with little or no savings took huge mortgages with little or no money down, has been well documented. While it was inevitable that money lent to people without the means to pay it back would lead to a massive number of defaults and foreclosures, the investors who fueled this market never seemed to think that all those risky loans might go bad at all once.

It's truly amazing to see how deeply Wall Street has been involved in what's known as collateralized debt obligations (CDO), or the bundling of mortgages, home equity loans, car loans and credit card debt by hedge funds.

A major Wall Street investment house, Bear Stearns, saw about $10 billion of value disappear from two of its CDO hedge funds last month, and the market barely blinked an eye. But once other investment houses came to the realization that they are holding hundreds of billions of dollars of bad loans that they are now unable to sell to other investors, they started to realize that you can only ignore reality for so long before it comes back to bite you - hard.

Mortgage lenders stopped caring if borrowers were qualified. Bankers stopped caring if borrowers couldn't repay loans. And all these bad loans got repackaged and resold to other investors - all gussied up so that you'd never know that you were buying into funds based on assets that didn't exist.

This has been the state of our financial markets over the past few years. Greed has seemingly blinded people to fundamental economic principles, and the transfer of more of this nation's wealth into the hands of fewer and fewer people is celebrated as capitalism's highest achievement.

The total net worth of American households climbed to $54.1 trillion last year, or more than $3 trillion higher than it was in 2005, and tax revenues managed to increase despite lower rates on wealthy Americans. Meanwhile, over the past five years, inflation-adjusted weekly wages for workers have been up about 0.5 percent per year.

Unfortunately, the people who have profited from wrecking the American economy will walk away with bulging pockets and seemingly clear consciences. The rest of us will be stuck with cleaning up when every comes tumbling down.

Randolph T. Holhut has been a journalist in New England for more than 25 years. He edited "The George Seldes Reader" (Barricade Books). He can be reached at randyholhut@yahoo.com.

On Native Ground
THE FINANCIALIZATION OF AMERICA
by Randolph T. Holhut
American Reporter Correspondent
Dummerston, Vt.

Individual Outperforms Hedge Funds at Competition

Haochen Hu, a seasoned investor from Hong Kong, won this year's World TopInvestor competition with gains of almost 785% over 12 months.

He outperformed the world's leading hedge funds with gains of almost 785% over the competition period. The competition is a live, real money, capital markets trading competition lasting for a full year. The prize for the top investor is the management of a fund with an investment value of $250,000 sponsored by Saxo Bank, a global leader in online trading and investment services.

The winner of the 2007-08 competition was Haochen Hu, who led a strong field including Guo Hanqui with a net gain of 630%, Julian Szkirpan from the United States with 555% as well as Hungarian investors György Doleschall with a 315% gain and Tamás Czajner with 135%.

"Losing money is bad, but it is much worse when you don't know why you lost. I have traded online for eight years and you must study and be familiar with the product you want to invest in. My strategy was simple. I focused on currency trading and used the higher leverage when I felt the chance was there," commented Hu.

Next year's World TopInvestor Competition is open to all entrants willing to open an account with any Broker sponsor. Among this year's sponsors of the World TopInvestor competition were several leading online investment banks and brokers from all over the world including: Saxo Bank, Commodity Broking Services, BenchMark Finance, Cambiste, Finexo, Buda-Cash Brókerház, TMS Brokers, Banco Best, Poteza BPD, Dif Broker and RCG FX Trader.

AdultVest Launches Alternative Investment Series Of Meetings

Alternative investment firm AdultVest has scheduled an ongoing series of monthly meetings to bring investors together with adult businesses that represent alternative investment opportunities.

On the last Wednesday of each month, AdultVest executives will listen to presentations from adult business owners, and the following day the most well-prepared companies with the best opportunities will be presented in person to investors at the investor meeting.

According to AdultVest CEO Francis Koenig, he and his team will meet tommorow, at the first of these monthly meetings, with about 20 adult companies to assess the viability of the investment opportunities presented to them. The following day, 10-15 vetted investors will attend.

"The meetings are geared to bring investors and companies together," he said. "During the meetings, deals will be passed around the table and we will all discuss the various levels of interest in the deals presented. In certain circumstances, if we feel they are ready, we will invite company CEOs to make their own presentations."

"We're specifically looking for Internet companies and gentlemen's clubs with minimum annual revenue exceeding $1 million. There really are no limitations as to deal size on the higher end of the spectrum."

AdultVest investor meeting attendees will include private equity, hedge fund, venture capital and angel investment fund managers, as well as individual investors, investment bankers, financial advisors, and the AdultVest investment committee in charge of managing the AdultVest Bacchus Investment Fund and Priapus Investment Fund.

According to AdultVest.com Marketplace Statistics recently added to the AdultVest website, 647 adult companies have submitted investment proposals to the company, with 3380 vetted investors in the pool of interested parties. There have also been 1833 due diligence requests made by potential investors.

Hedge Fund Opens Office In New York, New Launch

Canadian Hedge fund Lionhart Ltd. this month announced the launch of a new fund and the opening of an office in midtown Manhattan, New York. Present in the US since 2000, the addition of the New York office positions the hedge fund to develop the U.S. markets.

The launch of Talon, a private equity hybrid fund, is scheduled for March 2008. With a minimum investment of $1 million, the new hedge fund will be set up with $50 million from Lionhart and $50 million from existing and new investors from the US, Middle East and Europe.

Lionhart said, "Talon will be investing into early stage private financings and placements across a number of sectors including minerals, mining and natural resources, energy, alternative energies, mezzanine and bridge financing, IT and medical technology, property development and sub-sectors of these main areas. Investors will have the opportunity to invest in a blend of all the sectors or in an individual sector."

CEO Terrence Duffy, commenting on the move, said, "Information flow for traders and convenience for investors will improve with this move to Manhattan. This makes a lot of sense given the direction Lionhart is moving and the understandable interest in our fund offerings."

Lionhart is a multi-strategy arbitrage hedge fund with $800 million under management. Lionhart's New York office will open with 11 staff including trading, research, investor relations, and administrative functions. The Toronto-based hedge fund has offices in the world's top financial centers now including New York, Toronto, London and Singapore.

Study On Synthetic Hedge Fund Indices

Synthetic hedge fund indices (SHFIs), also known as 'hedge fund clones' were introduced in 2007, following years of academic research. SHFIs are dynamically managed portfolios of liquid assets (also called replicating factors, which usually exist in futures and exchange-traded funds) that aim at minimising the tracking error with a target non-investable hedge fund index.

Based on research by Innocap Investment Management's, there are four criteria which should be met by SHFIs; they should be representative of the investment universe, transparent, have consistent weighting, timely reporting, stable performance over time, and they should be investable.

SHFIs are to hedge funds what exhange traded funds (ETFs) are to mutual funds, a liquid, low-cost and transparent way to expose a portfolio to the asset class. SHFIs that target a good hedge fund index and use a sophisticated tracking model applied to a wide range of liquid and transparent financial instruments should exhibit an interesting risk-return profile, particularly for the liquidity risk conscious investors.

SHFIs currently constitute a small portion of all hedge fund assets under management because they have been introduced quite recently. Nevertheless, they now constitute a key element in the alternative assets offering of the biggest financial institutions.

Innocap Investment Management is a subsidiary of the National Bank of Canada [TSX: NA-T], it was created to supervise all of the bank's alternative investments activities in capital markets.

New York Hedge Fund Spends $27 Million On Alvarion

After buying a $27 million stake in Alvarion, New York-based hedge fund Renaissance Technologies Corporation has become a party at interest with 5.76% of the company.

With a market cap of $480 million, Israeli company Alvarion provides WiMAX broadband communications technology, they posted $236.6 million in revenue for 2007.

Alvarion said in a document filed with the US Securities and Exchange Commission that the transaction was made on November 8, 2007. Renaissance Technologies is now the largest shareholder in Alvarion, which until now did not have a shareholder owning more than 5%, the threshold of a party at interest under Israeli law.

Renaissance Technologies was founded in 1982 by cryptanalyst James Harris Simons and is now one of the world’s largest hedge funds. The hedge fund uses statistical and mathematical models to make its investments. It has more than $12 billion under management.

UAE and Qatar Hedge Fund Boom

According to research conducted by banking group Mirabaud, the Middle East is set to become increasingly active in the global hedge fund industry. The report also said that the UAE and Qatar could potentially be playing dominant roles in the region.

Mirabaud forecasts that hedge funds will become increasingly attractive to the region’s ever-more sophisticated regional investors, especially given the high levels of excess liquidity in the Middle East.

CEO Gilles Rollet said, "Globally, hedge fund centres have emerged from the most sophisticated financial centres, such as New York, London, Hong Kong and Singapore. The relevant defining attribute of each of these locations is the maturity of their capital markets….The Dubai International Financial Centre has even taken the step, through its regulating body the Dubai Financial Services Authority, to create a Hedge Fund Code of Practice, giving legal weight to the effort to make Dubai a centre in the hedge fund industry."

Increased institutional investment in the regional capital markets, especially the UAE, is another sign of the maturity of markets here, Mirabaud’s research found. Globally, at a time when most traditional investments are generating low levels of returns, institutional investors are increasingly attracted to alternative asset classes such as hedge funds.

"A hedge fund-friendly environment can be seen to emerge from a region with high levels of excess liquidity and strong degrees of professionalism among regulators and service providers. The Middle East is well known for its access to enormous amounts of excess liquidity due to the high price of oil. In the UAE and Qatar, we are now seeing professionalism from both regulators and service providers grow steadily. Both countries have governments that are committed to forging legal structures that allow for increasing financial sophistication in their respective financial districts. If current trends continue, these two countries will undoubtedly emerge as hedge fund centres, and given enough time, will stand on par with Singapore, Hong Kong and even London and New York." Rollet added.

Mirabaud & Cie, was founded in Geneva in 1819. Originally a bank operating solely in Switzerland, Mirabaud has since developed its brand on three continents. The bank, which has nearly $22 billion in assets under management, has offices in Geneva, Zurich, Basel, Paris, Monaco, London, Montreal, Nassau, Hong Kong and now Dubai.

CAI's Two New Investment Strategies

Choice Alternative Investments, Ltd.(CAI) has introduced two new alternative investment strategies into the market.

The first being the Standard & Poor's DTI, which is a low volatility strategy that works particularly well with very large fixed income alternative investment strategies, according to Arne Langaskens, advisor at CAI, "Due to the success of the alternative investment strategies, CAI is also looking to expand its exposure in the alternative and hedge fund arena," he said.

The DTI plans to offer yield enhancement and diversification, it currently has over $725 million allocated to it at this point.

The other is CAI Aggressive Growth Strategy ("CAI AG") which is a high volatility aggressive growth relative strength equity strategy. CAI AG is suited more for investors seeking higher rates of return that can accept high volatility for this segment of their portfolio. A major Swiss Bank seeded the strategy and it now has over $15 million allocated to it.

CAI is an uniquely focused alternative asset manager delivering structure, risk control, seeking long-term performance stewarding global capital.

Tremont Hires FoHF Specialist

Tremont Capital Management announced the appointment of fund of hedge fund specialist Susan Crotty as Managing Director of Investment Management Services.

“Sue’s extensive experience consulting to a wide variety of institutions on fund of hedge fund investing, her understanding of what investors are seeking to accomplish with their alternatives strategy, and her knowledge of our industry delivers tremendous benefits to our clients,” said Rupert Allan, Tremont’s President and Chief Executive Officer.

“We set out to scale our operations as we grow fund of hedge fund assets, expand our global footprint and deliver excellence in investment management,” said Allan. “We have taken some very exciting steps to insure that we have the right senior team in place to achieve those goals.”

Crotty was formerly Senior Vice President, Alternatives Practice Leader, at Callan Associates. Prior to her tenure at Callan, she was a Managing Director at Ark Asset Management and a Senior Consultant at Hamilton & Company. She is also a member of the Investment Committee for the State of New Jersey Pension System. Crotty will report to Robert Stone, Executive Vice President and Global Head of Sales.

Tremont also has offices in London, Toronto and Hong Kong. Tremont operating subsidiaries are regulated around the world by the U.S.’s Securities and Exchange Commission, the U.K.’s Financial Services Authority, the Ontario Securities Commission and the Hong Kong Securities and Futures Commission.

TCI Challenges Japanese Government On Foreign Investments

UK hedge fund TCI has challenged Japanese attempts to control foreign investments. In a bid to boost its stake in Japanese utility J-Power to up to 20 percent, the Children's Investment Fund, or TCI, has been pressuring the electricity wholesaler to improve corporate governance.

The activist investor has even said in a statement that it would take the Japanese government to court if it rejected its bid. The standoff between TCI and the government over the electricity wholesaler is being watched closely as a test for how open Japan is to foreign investment.

Foreign investors who are seeking stakes above 10% in sectors that Japan considers fundamental to national security such as utilities, arms, nuclear power equipment and aircraft must seek government approval.

J-Power plans to complete its first nuclear power plant in 2012.

TCI, named after its donations to children's charities, manages over $10 billion of assets globally.

Hedge Fund Managers Indicted

Five individuals who defrauded hedge fund investors of more than $200 million dollars have been indicted on charges of conspiracy and wire fraud, according to an FBI release.

Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida named the hedge fund managers in the indictment as Michael Lauer, Martin Garvey, and Eric Hauser, co-owners of management companies which directed the hedge funds, and Laurence Isaacson and Milton Barbarosh, who had financial interests in Boca Raton, Fla.-based “shell” companies in which the hedge funds invested.

All of the defendants are charged with one count of conspiracy to commit mail, wire and securities fraud and six counts of wire fraud. If convicted, each of the defendants faces a maximum sentence of 20 years and a $250,000 fine for each count of wire fraud and five years and a $250,000 fine for the conspiracy count. The indictment also seeks forfeiture of their criminal proceeds.

According to the indictment, Lauer, as founder and primary manager, formed and directed several hedge funds, collectively known as the Lancer Group hedge funds. From October 1999 to July 2003, Lauer and his co-defendants manipulated the closing market price of thinly-traded shell company securities to falsely inflate the value of the Lancer Group hedge funds. Lauer, Isaacson, and Barborosh identified “shell” companies, including ones owned by Barbarosh, in which the Lancer Group would buy large quantities of “restricted” stock at pennies per share in private transactions.

Lauer, Garvey and Hauser next directed brokers to buy a small amount of the same securities for the Lancer Group at a much higher open market price and to make additional small purchases to drive up the price to a closing “target price.” Lauer then falsely valued all of the securities held by the Lancer Group, including those restricted shares obtained for pennies per share, at the much higher closing price, which falsely boosted the 20 percent performance fees paid to the management companies; induced new investors to buy into the funds; and kept existing investors in the funds.

To cover up and perpetuate the scheme, the indictment alleges, Lauer also created fake portfolios of the securities supposedly held by the Lancer Group and obtained falsely inflated appraisals of the shell companies through Isaacson and Barbarosh.

An indictment is merely a charge. All defendants are presumed innocent until proven guilty.

Boneparth Joins Hall Capital Partners

Hall Capital Partners LLC today announced that John F. Boneparth will join the firm as President. Mr. Boneparth will join Chief Executive Officer and Chief Investment Officer Kathryn A. Hall and Director of Investment Advisory Services John W. Buoymaster as a member of the firm’s Executive Committee. He will also serve on Hall Capital’s Board of Directors along with Ms. Hall; Mr. Buoymaster; F. Warren Hellman, Co-founder and Chairman of Hellman & Friedman; Mark E. McKee, President of Capital Alternatives; and Matthew R. Barger, Senior Advisor for Hellman & Friedman.

Hall Capital is an independent, privately owned SEC-registered investment advisory firm with offices in San Francisco and New York. The firm, which has $22 billion in assets under management, has established a strong reputation as a successful investment partner and manager of traditional and alternative investment strategies. Hall Capital has a 13-year record of building and managing customized global investment portfolios for individuals, families, and institutions.

“We are extremely pleased to have John Boneparth join Hall Capital Partners,” said Kathryn Hall. “His nearly 30 years of experience in the investment management industry as well as his extraordinary talent in building and managing investment management firms will be an important contributor to our company’s growth and future success.”

“Katie Hall and her management team have built a world-class investment platform that offers its clients access to the highest quality traditional and alternative investment products,” said John Boneparth. “I am confident that these products will have great appeal to both institutional and individual investors when they are distributed more broadly, both in the U.S. and abroad.”

“John Boneparth has had great success growing and managing businesses throughout his career,” said Warren Hellman. “The board believes that with John joining Katie’s team, the firm is well-positioned for significant growth and expansion.”

Mr. Boneparth founded Corinthian Cove Consulting, LLC in 2005, where he consulted to investment management companies on business, sales, marketing, client service, and product strategies. Before founding Corinthian Cove Consulting, Mr. Boneparth spent 14 years at Putnam Investments where he held various positions including Chief of U.S. Institutional Sales, Head of International Sales & Client Service, Head of International Business, and Head of Putnam Global Institutional Management. Mr. Boneparth holds a M.S. from University of Pennsylvania and a B.S. from The Wharton School, University of Pennsylvania.

About Hall Capital Partners LLC
Hall Capital Partners LLC (www.hallcapital.com) is an independent, privately owned SEC-registered investment advisory firm with offices in San Francisco and New York. Founded by Kathryn Hall, the firm has a 13-year record in building and managing global investment portfolios, and has established a strong reputation as a successful investor and partner. As of September 30, 2007, the firm directed investment assets in excess of $22 billion for more than 100 clients and its funds of funds program.

Centaurus Capital Raises Stake In UK Waste Management

Centaurus Capital Ltd. announced an increase in their stake in Biffa PLC to 4.23%. The London-based hedge fund bought about 1.15 million shares in two tranches, lifting its stake to about 14 million shares, or 3.758%.

UK waste management and recyling business, Biffa, recently agreed to a takeover offer by WasteAcquisitionco, a consortium of various entities within the Montagu Funds, the Global Infrastructure Partners Funds and UCIL at 350 pence per share, valuing Biffa at about £1.23 billion ($2.4 billion).

Centaurus Capital is a private investment management company with an emphasis on Europe. Centaurus was launched in year 2000 and originated from an investment team working together at BNP Paribas since 1993.

In 2005, the Centaurus Alpha Fund was awarded the Hedge Funds Review European Performance Award in the category of Event Driven Fund.

Other hedge funds such as Cheyne Capital Management (UK) LLP and Davidson Kempner European Partners LLP, an affiliate of New York-based Davidson Kempner Capital Management LLC, have emerged as investors in Biffa in the hope of a bidding war.

Asia-Pacific Investable Hedge Fund Index Launch

Index compiler MSCI Barra announced today that it is to launch the MSCI Asia-Pacific Hedge Fund OPTIX Index, a new investable hedge fund index designed to reflect the overall structure and composition of the Asia-Pacific hedge fund universe.

Henry Fernandez, CEO of MSCI Barra, said, “The forthcoming launch of the MSCI Asia-Pacific Hedge Fund OPTIX Index responds to investor demand for a liquid and representative investable hedge fund index that reflects the overall Asia-Pacific hedge fund opportunity set. The index is designed to serve as the basis of index-linked financial products, such as funds, derivatives, and structured products.”

The MSCI Asia-Pacific Hedge Fund OPTIX Index will be composed of only funds that are open to new subscriptions and with at least monthly liquidity, according to a statement from the index compiler.

NAI, working with SPARX International (Hong Kong) Limited will be responsible for selecting and conducting due diligence on the hedge fund managers. NAI will also monitor the investment mandate of each managed fund.

Calculation of the index is expected to begin in March 2008, and it is expected to launch with around 20 constituent funds. The index will be constructed and maintained by MSCI Barra according to the MSCI Investable Hedge Fund Index Methodology.

2008: The Year of Carbon Finance and Trading

The seventh annual Wall Street Green Trading Summit is presenting answers to carbon trading questions such as;

What is carbon neutral? How are clean energy technologies tied to emissions trading? What are the carbon investment opportunities? These and other timely questions will be discussed and answered at the sixth annual Wall Street Green Trading and Finance Summit. Experts from Morrison & Foerster, Evolution Markets, Point Carbon, NYMEX, Natsource, Orion Energy Services, APX, EcoSecurities, and Brown Rudnick..

2008 is the beginning of global carbon markets under Kyoto and is demonstrating a tremendous interest in how to reduce the carbon footprint of companies.


Also feartured at the conference;

• US Carbon Market Developments
• What's the Difference Between Carbon Credits & Offsets
• What's New in European Carbon Trading
• What Impact Will Carbon Regulation Have on US Businesses
• What's the Commercial Value of Carbon Sequestration
• What is NYMEX's Green Exchange
• How Renewables & Carbon Offsets Interact
• What is Carbon Finance
• Why the US is the Next Carbon Market
• Relationship Between Carbon & Renewables

Organized by:
Global Change Associates & Hedge Connection

MAM Hedge Fund Launch

Martin Asset Management announced the launch of the MAM Global ETF Fund, LP (a domestic Delaware Limited Partnership).

The MAM Global ETF Fund is set to launch on February 15th, the new hedge fund features monthly liquidity and will exclusively invest in Exchange Traded Funds with a Global Macro strategy.

The California based global wealth management platform also features two ETF (Exchange Traded Funds) strategies and one Alternative Energy Strategy.

Their investment style focuses on the overall markets and the economy rather than individual stocks and bonds. The strategy includes the analysis of economic data such as GDP, inflation, unemployment, money flows and overall market conditions to determine the current phase of the business cycle (expansion, peak, contraction or trough).

Once the business cycle is identified, through active management within separately managed accounts, the hedge fund then rebalances its investment portfolios. Custody can be obtained anywhere in the world with no restrictions on nationality of clients.

Alex Akesson
Editor for HedgeCo.Net
Email: alex@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com

Hedge Fund Vehicle Dexion Absolute Raises $263 Million

Dexion Absolute, a 1.4 billion pound ($2.7 billion) fund of hedge funds (FoHF) announced today that it raised a further $263 million for its hedge fund investments. Dexion had previously raised $950 million above its original target in an oversubscribed share issue in December last year.

According to the Association of Investment Companies, hedge funds made up the biggest proportion both of investment firms' new issues and firms raising additional capital in 2007.

The FoHF's assets are invested in an actively managed portfolio of hedge funds selected by its Investment Advisor and diversified by investment strategy, style and manager. Another fund of hedge funds that is marketed by Dexion Capital, is considering a new offer of shares to meet demand from new and existing investors. The fund of macro hedge funds is managed by Permal Group, part of Legg Mason Inc.

Hedge Funds & Alternative Investments Handbook

Research and Markets has announced the addition of “The Hedge Funds & Alternative Investments Handbook 2008” to their offering.

The 2008 edition of this guide to the world of alternative investments comes as the playing field becomes more exciting due to new concepts, regulation and increasingly global reach of hedge funds. The handbook brings together an internationally acclaimed editorial board of experts in the field of alternative investments.

Including topical debate, discussion and the latest research on the issues of the moment within the hedge funds and alternative investments world. Leading players from exchanges, funds, law firms and investment banks present exclusive insights into offshore developments, the key regions, regulation and the role of education and ethics in this rapidly changing and evolving scene.

Articles in this year’s Hedge Funds and Alternative Investments Handbook explore;

alternative beta replication
precious metals
the role of branding
self regulation
global activism
ethics and regional perspectives.

HedgeCo Networks Offers Clients of NorthPoint Trading Suite of HedgeCo Web Services

HedgeCo LLC, a premier hedge fund database, consulting and services company, announced today a strategic relationship with NorthPoint Trading Partners, LLC. This relationship will offer clients of NorthPoint a chance to enhance their Internet presence through the use of the HedgeCo Websites Platform.

"Through our partnerships, HedgeCo is striving to enhance the offerings of our partners, as well as draw on expertise of our partners to take the HedgeCo Networks products to a new level." said Evan Rapoport, Chief Executive Officer of HedgeCo, LLC. "By having the ability to offer our products to their clients, our partners will find that their offerings and position in the market will strengthen substantially."

The announcement once again shows how HedgeCo Networks continues to distinguish its company from other service providers by offering high-tech, cost-effective services and analytic tools.

Products being offered through this agreement include the HedgeCo Hedge Fund Website platform, the Hedge Fund Calculator analytics tool, and the opportunity to integrate with HedgeCo.Net, the premier hedge fund Internet portal.

“NorthPoint Trading is committed to being able to provide every possible advantage and resource to help our clients grow their business. We are excited to be able to offer the expertise and experience of the Hedgeco Websites team to our clients.” said Michael DeJarnette, Co-Founder and President of NorthPoint Trading Partners, LLC, a broker/dealer focused on providing Prime Brokerage to small to mid-sized hedge funds.

HedgeCo Networks is actively seeking partners in various verticals to develop and deploy future products.

HedgeCo, LLC manages HedgeCo.Net the premier Hedge Fund Database and Information Portal. HedgeCo offers a wide variety of services, including website design, consultation, and third party marketing.

The HedgeCo Websites team has worked with the Hedge Fund industry for 3 years. Drawing on the experience used in creating and managing HedgeCo.Net over 150 websites for Hedge Fund firms in USA, Europe and Australia.

NorthPoint Trading Partners, LLC is a
premier institutional brokerage and fund services company, dedicated to providing prime brokerage services to small and medium sized hedge funds. Through a fully disclosed clearing relationship with Goldman Sachs Execution and Clearing, L.P. (GSEC), clients receive the benefits of boutique firm service and pricing, combined with GSEC's professional clearing and prime brokerage services, integrated portfolio and trading functionality, suite of pre- and post-trade analytics, and direct access
to the Goldman Sachs & Co.'s securities lending group.

Goldman Sachs Execution & Clearing, L.P. is not affiliated with NorthPoint Trading Partners, LLC or any of its subsidiaries or affiliates.

Report Examines Developments in the Spanish Fund Supermarket

Research and Markets has announced the addition of "Fund supermarkets in Spain 2007" to their offering. The report examines developments in the Spanish fund supermarket sector and assesses the distribution channels that are in operation. The report analyzes both the current and possible future trends of the industry.

Spanish legislation has recently made provisions for two new fund classes available to retail investors, exchange traded funds and funds of hedge funds, allowing fund supermarkets to offer a comprehensive range of investment funds. Covering both domestic and international markets as they exercise considerable control over the fortunes of fund managers through their short-lists of recommended funds.

Year-on-year growth in assets under management fell from 11.94% in 2005 to 1.31% in 2006. This sharp decline in growth is partly attributed to a growing preference for bank deposits (among conservative investors) triggered largely by the introduction of a new tax regime, and increasing demand for foreign funds (among more sophisticated investors).

Hedge Funds Decline in January 2008

The Greenwich Global Hedge Fund Index (GGHFI), fell -2.44% in January amid severe declines in global equity markets such as the S&P 500, MSCI World Equity, and FTSE 100 indices.

Meanwhile, 79% of hedge funds outperformed the S&P 500, with 33% ending the month in positive territory.

Margaret Gilbert, Managing Director of GGHFI said, "Despite January being hedge funds’ weakest month since July 2002, hedge funds fell far less than equities..... This ‘downside protection’ is particularly apparent over the last twelve months with hedge funds returning +7.14%, outperforming the S&P 500 by +9.45% during this period."

For January, all four hedge fund strategy groups outperformed the S&P 500, according to the report. Directional Trading ended up +0.81%, while dedicated Short Sellers were the stellar performers, up +6.99%. January’s Index currently includes 1,011 constituent funds.

Greenwich Alternative Investments, LLC manages one of the world's largest hedge fund databases and is a provider of hedge fund indices, asset management services and research to institutional investors worldwide.

Hedge Funds World Conference

The 2008 ninth annual Hedge Funds World Middle East Conference is to be held at the Madinat Jumeirah Hotel from 3-6 March 2008.

A highlight will be the Second Annual Hedge Funds World Middle East Awards Ceremony on 4 March, presented by Man Investments and Terrapinn. The awards recognise excellence and innovation in the Middle East hedge fund industry and promote the asset class in the region. Finalists for the awards are listed below.

Man Investments, one of the world's leading providers of alternative investments, is once again a principal sponsor of the event. The company, which has prospered in the Middle East for more than 20 years, has strongly supported the Hedge Funds World Middle East Conference since the first such event in 1999.

A special highlight at the conference will be the welcome address by Nasser Al Shaali, CEO of the Dubai International Financial Centre Authority. The DIFC has established itself as the first international financial centre of the region and the fastest growing in the world. Today it is home to more than 500 companies including many of the world's leading financial firms.

Keynote speakers include industry leaders such as: Sindo Oliveros, director of Pension Plan and Endowments, the World Bank Pension Fund; Ronald A. Rolighed, Managing Director, Harris Alternatives LLC; Ikho Suh, Head of Investment Strategy, Korea Investment Corporation; Christopher Durand, Head of Alternative Investments, Abu Dhabi Investment Company; Dr Mehraj Mattoo, Global Head of Commerzbank Alternative Investment Strategies; Ann Thivierge, MD and Head of Active International Allocation Strategy, Morgan Stanley; and Dr Susgil Wadhwani, CBE, CEO, Wadhwani Asset Management.

Antoine Massad, Chief Executive of Man Investments Middle East Limited who is once again chairing the event said, 'The hedge fund industry has made big advances in the region in recent years, offering investors wider choices and a range of new opportunities.. At this event, we will again recognise this progress and promote it through the Hedge Funds World Middle East Awards.'

Hedge Fund Launches By QIM

US based Quantitative Investment Management(QIM), has launched two new hedge funds, the Quantitative Tactical Fund and the Quantitative Fund. Director of Marketing, John McAllister said of the launches, "The multi-strat gives us an ability to provide a fund of funds using three products that we expect to have very low correlations to each other, and it is expected to have the best Sharpe ratio of all the products."

One of the hedge funds launched is a diversified equities hedge fund, currently trading only U.S. names. With $126.8 million in assets under management, the Tactical Fund trades the 1,500 most liquid U.S. names, with plans to expand into Europe and Japan this year.

The smaller of the two funds, the Quantitative Fund, is a multi-strategy fund of funds with $1 million currently in assets under management. It currently invests solely in the 1X versions of other QIM funds, including the Global, Tactical and the Ultra funds. Allocations made to the fund in 2008 will receive a 10% fee discount for the life of the investment.

With $2.8 billion in assets under management, QIM is a global investment firm specializing in alternative investment strategies for institutional and private investors. QIM employs a proprietary quantitative approach to trading financial and commodity futures through its flagship offering, the QIM Global Program.