6th Annual Hedge Fund Industry Awards

Winners of Alternative Investment News' 6th Annual Hedge Fund Industry Awards were announced on Wednesday evening June 25th at a black-tie dinner and ceremony at Cipriani Wall Street in New York City. The awards recognized hedge funds, fund of funds, consultants, endowments, foundations and corporate and public funds that stood out for excellence in alternatives investing during the year.

Nearly 500 leaders and luminaries from every facet of the industry were in attendance to see winners announced and awarded 'Oscar-Style'. Michael Steinhardt, a pioneer in the hedge fund world, and Phil Goldstein, Founder of Bulldog Investments were in attendance to accept their respective awards for Lifetime Achievement and Outstanding Contribution to the Industry.

Winners were awarded in nine other categories, and included Paulson & Co. for Hedge Fund Leader.

Also recognized and awarded were the 2008 Rising Stars of Hedge Funds, 20 up-and-coming, talented young professionals poised to be future leaders of the industry.

This year's award winners were as follows:

Hedge Fund Leader of the Year:
Paulson & Co.

Fund of Hedge Funds Leader of the Year:
Harcourt Investment Consulting

Emerging Manager of the Year:
Algebris Investments

Hedge Fund Launch of the Year:
AdultVest

Institutional Manager of the Year:
The Blackstone Group

Public Fund Investor of the Year:
Teacher Retirement System of Texas

Corporate Pension Fund of the Year:
Railway Pension Trustee Company

Nonprofit Investor of the Year:
Texas Christian University

Hedge Fund Consultant of the Year:
Jaeson Dubrovay, NEPC

Visit the awards website for additional information:
http://www.iialternatives.com/ain/2008awards/

EU Recommends a Tightening of Hedge Fund Transparency Laws

The EU Parliament has come up with new guidelines regarding hedge fund transparency,
'asset stripping' and proposed some investigative measures and rules so that companies are not left in the dark on the investment policies of hedge funds or private equity investors who buy up their shares.

They also want much more light to be shed on pay and bonus packaged for fund managers. The commission also asked that the EU address the issue of money laundering, specifically in the context of hedge and private equity funds.

MEPs in committee unanimously approved the report by Klaus-Heiner Lehne (EPP–ED, DE) which would - if approved by the plenary - become a formal request to the Commission to put forward EU legislation.

The EP committee proposes to oblige hedge funds and private equity funds to disclose and explain the companies whose shares they acquire or own, retail and institutional investors, prime brokers and supervisors - their investment policy and the associated risks.

The committee also asks the Commission to investigate the possibility to apply, to alternative investments, contract terms allowing for a clear limitation of risk, for measures to be taken if thresholds are exceeded, for a clear description of lock-up periods and for explicit conditions concerning cancellation and termination of investment contracts.

MEPs want the Commission to propose rules forbidding "asset stripping" by investors who misuse their financial power in a way that merely disadvantages the company acquired in the long term, without having any positive impact on its future - or the interests of employees, creditors and business partners. They therefore propose common EU rules to guarantee capital maintenance of companies.

Regarding private equity funds, Members in committee suggested, among several proposals, that the Commission should address the issue of irresponsible lending to private equity funds, where banks disclaim any responsibility for what the loan is used for and where the money that repays the loan comes from.

MFA Travels To China To Hold Alternative Investment Meetings

The Managed Funds Association MFA and CME Group (CME), a Strategic Partner member, recently arrived back from a jointly arranged trip to meet with Chinese government officials, policy makers and financial services representatives.

The MFA and CME co-sponsored a conference, "Global Markets and the Role of Alternative Investments" was held in June with the Tianjin Municipal People’s Government and China Foreign Exchange Administration Magazine.

"The conference agenda helped us to continue a dialogue about the important role of alternative investments in the capital markets and to strengthen relationships
in China as its economy and financial markets grow." Richard H. Baker, MFA President and CEO, said.

Members who participated in the conference included; Citadel Investment Group,
L.L.C.; Fairfield Greenwich Group (FGG); Harbinger Capital Partners Funds; Moore Capital Management, LLC; Tudor Investment Corporation; the D.E. Shaw Group; Paulson & Co., Inc.; and S.A.C. Capital Advisors, LLC.

"MFA’s visit to China is part of its ongoing international outreach with policy makers and its mission to provide information about the global alternative investment industry." MFA said.

MFA is the voice of the global alternative investment industry. Its members include
professionals in hedge funds, funds of funds and managed futures funds. MFA Members represent the majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $2 trillion invested in absolute return strategies.

Hedge Fund Nominees

AdultVest was nominated among others for the 'Hedge Fund Launch of the Year' Award, the alternative investment fund is the world’s first Investment Community designed specifically for the Adult Industry.

Other nominees include, Brevan Howard Asset Management, Citadel Investment Group, Odey Asset Management and Paulson & Co. for the 'Hedge Fund Leader of the Year' award.

Th winners will be celebrated 'Oscar-style' at a gala awards dinner and ceremony this evening, June 25th at Cipriani Wall Street, NYC. The award ceremony will be held in conjunction with Institutional Investor Conferences' Hedge Fund Investor Symposium, and will host more than 400 leaders in the hedge fund industry.

The 6th Annual Hedge Fund Industry Awards recognizes the hedge funds, fund of funds, endowments, foundations, and corporate and public pension funds that have stood out for their notable accomplishments in alternative investments during the past year.

Winners will be selected by the staff of Alternative Investment News and Institutional Investor Magazine.

Athamas Hedge Fund Launch

Athamas Capital, a Luxembourg domiciled alternative investment fund, has announced the launch of the Athamas Capital SICAV SIF Hedge Fund. (Specialised Investment Fund)

Launched on June 1st, the hedge fund´s strategy is to achieve an absolute return by investing in listed companies addressing the energy and environmental challenges, including; energy, alternative energy, agriculture, energy efficiency and environmental services.

With Goldman Sachas as prime broker, the Athamas Capital SICAV SIF Hedge Fund has EUR16.5 million ($25.5 million) in seed capital and is open to professional investors, high net worth individuals and institutional investors for a minimum investment of EUR250,000 (approximately $390,000). The target fund size for 2010 through 2012 is EUR50-100 million (approximately $77-154 million).

The hedge fund's strategy stems from the conviction that the energy and environmental sectors will be key in the 21st century due to the depletion of the global energy supply, rising demand, global warming issues raising awareness, as well as regulations and business initiatives to adapt and mitigate it.

Structured as an umbrella fund with four sub-funds, (some of which are yet to be launched) Athamas Capital is an alternative investment fund in the energy and environmental sector, trading mainly along the lines of; long/short equities, long/short listed or OTC derivatives, and futures on indices or commodities.

Athamas means; ("rich harvest"), the king of Orchomenos in Greek mythology, was the son of Eole. He was married first to the goddess Nephele (goddess of Clouds) with whom he had the twins Phrixus (driving rain) and Helle (bright light).

200K Hedge Funds for Children Fundraiser to Repeat

The fourth annual Hedge Funds Care Cayman (HFCC),“Open your heart to children benefit”, gala dinner is taking place this year in November at The Ritz-Carlton Grand Cayman.

Last year, $254,000 was raised by HFCC for the Nadine Andreas Foster Home, the Cayman Islands Crisis Centre, the CAYS Foundation, the Ministry of Education and the Human Rights Commission.

FHCC is an alliance of the Cayman Islands hedge fund industry professionals devoted to raising funds for the prevention of child abuse and associated treatment initiatives.

The black-tie affair will feature a star-studded evening of glitz, glamour and entertainment. Highlights will include a champagne and cocktail reception, dinner and dancing, and a silent and live auction, featuring such items as sports dream getaway packages, exquisite jewellery, and sports memorabilia.

The Cayman Committee of Hearts has representation by Appleby, Butterfield Bank, CIBC, Citco, Deloitte, DMS Management, Ernst & Young, KPMG, Maples and Calder, Ogier, PWC, Rawlinson and Hunter, UBS and Walkers.

Diamond Fund To Launch In London

The first publicly listed fund investing in rare white and coloured diamonds, the 'diamond fund' is to be launched on the London Stock Exchange, according to news sources.

Diamond Circle Capital PLC hopes to raise $400 million in its initial public offering (IPO), building a portfolio of diamonds with a minimum investment of $1 million per stone, and then to wait for prices to increase.

The fund will be headed up by independent commodity asset management firm Diapason Commodities Management, which provides a range of commodity investment solutions to its institutional and high net worth clients.

According to a Reuters report, the closed-end fund will invest in the high-quality segment of the physical polished diamond market, according to a prospectus for the initial public share offer, expected to take place on June 24.

"Catalysts for growth in investment demand are in place for large high-quality diamonds, underpinned by the rising number of high net-worth individuals, especially in the Middle East, Southeast Asia and the Russian Federation," the prospectus for the Diamond Circle fund said.

The prospectus also said that "A steadily declining mineral reserve base, compounded by limited exploration success, suggested tight supplies would continue, which industry analysts say could mean long-term growth for the fund."

MFA Submits Comments On Hedge Fund Committees

Hedge Fund representative, the Managed Funds Association (MFA), has submitted comments on the Best Practices Reports released by the two Committees appointed by the U.S. President’s Working Group on Financial Markets (PWG).

The Asset Managers’ Committee Report and the Investors’ Committee Report provide
guidance for establishing best practices standards for the hedge fund industry and its investors.

"MFA has reviewed thoroughly the Asset Managers’ Committee Report and the Investors’ Committee Report, and we are broadly supportive of both sets of recommendations, which are comprehensive and substantive." Richard H. Baker, MFA President and CEO, said.

Andrew Baker, Deputy CEO of the Alternative Investment Management Association
(AIMA) said, "We fully endorse the responses submitted by MFA to both committees... We are committed to the international harmonisation of sound practices for the alternative investment industry and look forward to leading this global approach with MFA as well as with all other industry stakeholders."

MFA represents members of the the global alternative investment industry. Including professionals in hedge funds, funds of funds and managed futures funds. MFA Members represent the vast majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $2 trillion invested in absolute return strategies.

Monaco to Host Global Hedge Fund Conference

Hedge fund managers, gurus and 'Out of the box' guest speakers are gathering at the Grimaldi Forum to debate distressed investing issues and macro strategies for 2008.

The 14th Annual Gaim International 2008, a global hedge fund industry conference is being held tomorrow through Thursday in Monaco. The conference has 40 slots over 3 days and will cover issues such as the state of the world economy to strategy and hedge fund philanthropy.

1100 investors, distributors and asset managers are expected at the hedge fund industry’s flagship conference, attracting the largest proportion of asset allocators in hedge funds than any other alternatives event.

Hedge fund experts are scheduled to speak at the meeting, and the guest speakers include former holder of the land speed record, Richard Noble.

The conference is taking place as the $2.6 trillion hedge fund industry confronts poor returns and investor outflows and searches for a follow-up to the favored strategy for 2007, which was taking bets on the explosion in subprime loans.

JPMorgan to Launch European Hedge Fund Into UK

JPMorgan Asset Management is planning to expand one of their European hedge funds into the UK market in the coming weeks, according to FT.

The JPM Highbridge Statistical Market Neutral fund was launched in Luxembourg in 2006 and has had great success from retail investors wanting access to hedge fund techniques. The hedge fund has raised over £5.14 billion ($10 billion ) since November 2006.

Michael Parsons, head of UK retail sales described the offering as being attractive to those who "don't want long exposure in US markets" but are still looking for an attractive investment opportunity, FT said. On the back of the success of this, JPMAM is to distribute the fund in the UK with a sterling hedged share class.

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

US Hedge Fund to Manage $88 Billion in UK Outsourcing Funds

Leading UK investment manager, Hermes Fund Managers Limited (Hermes), announced the appointment of US hedge fund manager Northern Trust, to provide middle office outsourcing fund administration and custody.

With an anticipated £23 billion ($45 billion) in assets under management, the middle office plans to include the UK's largest Pension Scheme ("BTPS"), which will be in excess of £45 billion ($88 bilion).

As part of the arrangement Northern Trust will also support the launch of Hermes' new range of Dublin-based funds providing trustee, custody, fund accounting and transfer agency services.

"Northern Trust was appointed following a rigorous selection and due diligence process from a short-list of two providers." Rupert Clarke, Chief Executive of Hermes said, "Outsourcing these functions is consistent with our strategy of focusing on growing a specialist investment management business."

Northern Trust, a multibank holding company based in Chicago, has international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region. Northern Trust had assets under custody of $4.0 trillion, and assets under investment management of $778.6 billion.

Hermes currently has £36.2 billion ($70.4 billion) under management, investing assets on behalf of 206 clients, including pension funds, insurance companies, government entities and financial institutions, as well as charities and endowments.

GGHFI Reports Strong Hedge Fund Performance in May

The Greenwich Global Hedge Fund Index(GGHFI)reported May returns of +2.01% while the Greenwich Composite Investable Index returned +1.66%. The May Index currently includes 1345 constituent funds.

By comparison, the S&P 500 showed gains of +1.29%, while MSCI World Equity and FTSE 100 indices posted returns of +1.11% and -0.56%.

"Across the board, hedge funds performed well in May. But the real story is told when comparing year-to-date performance," notes Margaret Gilbert, Managing Director. "Hedge funds are positive for the year compared to the major equity indices which still remain negative."

For the second month in a row, Long/Short Equity managers were the best performing strategy group, posting a gain of +2.35%. Directional Trading managers, the best performing strategy group so far this year, exhibited another strong month, returning +2.00%.

Specialty Strategy managers were the second-best performing strategy group, returning +2.10% on average. The Market Neutral Group averaged +1.39% on the month as Event Driven managers continued to find opportunities in uncertain markets.

Man Group Invests in Weather and CAT Bond Company

Man Group has agreed to pay $50 million for a 25% stake in Nephila Capital, an alternative investment manager specializing in insurance-based instruments such as insurance linked securities, catastrophe bonds, insurance swaps and weather derivatives.

The CEO of Man Group plc, Peter Clarke, said, "This transaction further develops Man's strategy to expand the range of opportunities for our investors. The natural catastrophe and weather derivative markets offer significant opportunities for uncorrelated alternative investment returns. We are excited at the prospects of this strategic partnership and what it means for our and Nephila's investors."

The investment, which follows Man's purchase of 50% of credit specialist Ore Hill in March, comes as the increasingly competitive hedge fund industry hunts for sources of extra return not correlated with traditional markets.

Bermuda-based Nephila, which manages around $2.4 billion in assets and employs 25 staff, specialises in insurance-based instruments such as insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives, Man said in a statement on Friday.

Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man manages over $78 billion and employs 1,600 people in 13 countries worldwide.

AIG and Larch Lane Create Hedge Fund Seeding Deal

Hedge Fund Investor AIG and Advisor Larch Lane have announced the formation of a joint venture to make seed investments in hedge funds. The joint venture seeks to capitalize on synergies between AIG Investments' global alternative investment and hedge fund capabilities and Larch Lane's specialization in hedge fund seeding.

Targets may include hedge fund start-ups, teams leaving established hedge funds, and established hedge funds in need of restructuring. They anticipate investing $50-200 million per deal across a wide range of hedge fund strategies and geographies.

"Talented investors are leaving large hedge funds to start their own businesses, but many of them have not been able to reach their capital targets." Mark Jurish, Larch Lane's CEO said, "The current supply/demand imbalance for start-up hedge fund capital represents the best seeding opportunity I've ever seen"

AIG Investments has been investing in hedge funds for 26 years and currently manages over $10 billion of hedge fund assets. AIG is currently invested in more than 130 hedge funds, including emerging managers. Larch Lane, the alternative investment affiliate of Old Mutual Asset Management, is among the pioneers in the hedge fund seeding business and has made a total of 22 seed investments over the course of the last seven years.

Hedge Fund Expansion Into Development Property

Hedge fund Three Arch Investors has begun buying tracts of abandoned development land in California.

“Property and land values in California have dropped to very low lows and at some stage they will recover." John Godden, managing partner of London-based IGS Group said, “This is the ultimate way to play what everyone knows to be the situation.”

"The price of homes have fallen by a little under 20% over the past year, and land prices have slumped by almost 80%." David Michelson, manager of the California Distressed Land Fund said. “The banks do not want this stuff, they want to get rid of it,” he said.

The fund, which has a target size of $150m to $250m, provides an alternative to commercial property funds or residential property index derivatives for those seeking to benefit from any upswing in the property sector.

Stanley Fink Retires From Man Group

Man Group announced the retirement of hedge fund magnate Stanley Fink, who will not be seeking re-election as a Director. He stepped down from Chief Executive in April of last year to become Deputy Chairman.

Fink joined Man in 1987 and was Chief Executive for seven years till 2000, prior to which he ran the investment management business.

"I have spent more than 21 years at Man Group, and have been on the Board for all but the first six months of that time," Stanley Fink said regarding his time with Man Group, "during which the company has undergone immense change which has seen it emerge as a leading player in the alternative asset management industry."

Fink also said, "I have many commercial and philanthropic interests outside Man Group to which I am increasingly committed and I am eager to pursue these, and other new opportunities, more fully."

Man is the leading global alternative investment management business, the original business being founded in 1783. It is ranked in the top 40 companies of the FTSE 100 Index with a market capitalisation of about $20 billion.

AdultVest Hedge Fund Acquires iPorn

Francis Koenig, Chairman of AdultVest Inc., announced the acquisition of iPorn.com. The acquisition coincides with the firm’s online marketplace topping $7 Billion in available capital for adult industry related investments.

"We are very excited about the acquisition… Investors in our Priapus Investment Fund, LLC are extremely pleased to be a part of this landmark purchase. We have very big plans for iPorn. This acquisition is a natural fit." says Koenig.

With AdultVest growing at the rate of $300 Million per week, they last year launched the Bacchus Investment Fund and the Priapus Investment Fund, both also aimed at attracting the open-minded investor and the billions of dollars spent on adult entertainment in North America every year.

Koening says, "Transparency and liquidity builds credibility and investor confidence, which ultimately drives the price of a company higher. I believe this is the formula to unlocking value in some of the adult industry’s hidden gems. Wait till you see what we have in store."

Another feature that will appeal to investors, Koening says, is that the firm does not take its performance fee until 100% of the capital is returned to its clients.

Jupiter Fund Launch

Hedge fund manager Jupiter Asset Management announced the launch on June second 2008 of the of the Jupiter Strategic Bond Fund.

The new fund is Sterling denominaterd with a 4% initial fee and 1.25% as annual management charge. The minimum investment is a lump sum of £500 ($896.2), or monthly saving of £50 ($98.6).

The Fund, which has received approval from the FSA, is aimed at investors with a medium to long term outlook seeking income with potential for capital growth. The fund, which has a target yield of 7%, will offer a wide spectrum in terms of appetite for risk, with the ability to switch from a conservative to aggressive stance depending on circumstances.

The Fund will be managed as a 'go-anywhere' fund, aiming to achieve long term capital growth from investing in all areas of the credit ratings market. It will be managed by Ariel Bezalel, who has 10 years experience working in credit markets at Jupiter. He currently manages the fixed interest components of three unit trusts - Jupiter Global Managed, Jupiter High Income and Jupiter Monthly Income.

Bezalel said, "The investment grade market is pricing in a severe recession and the high yield market is pricing in a sharp rise in defaults. Whilst I am cautious on the economic outlook, current valuations seem to offer potentially handsome rewards for the risk. This situation, in my view, presents the most compelling investment opportunity in credit we have seen for many years."

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both are authorised and regulated by the Financial Services Authority. The group is collectively known as "Jupiter".

Blackstone Launches Asia Hedge Fund

The Blackstone Group announced that Aaron Nieman will be launching Blackstone Altius Advisors, a new event-driven strategy focusing on opportunities in the Asia Pacific region. A global, highly experienced investment team will be headquartered in Hong Kong, with additional professionals based in Tokyo, Mumbai, and New York.

Nieman joined Blackstone from S.A.C. Capital Management, where he was a Managing Director in the Canvas Capital Management division.

"As Blackstone continues to aggressively seek opportunities within Asia, Aaron and his team will provide additional investment capability that will bolster our presence in the region." said Antony Leung, Chairman of Blackstone Greater China.

"Blackstone has a superior global alternative investment platform. It also employs some of the best professionals in the industry. The synergies that exist within Blackstone's various businesses will provide us with a significant advantage investing in the Asia Pacific markets," said Aaron Nieman, Senior Managing Director and Chief Investment Officer of Altius Advisors.

In addition to Blackstone Altius Advisors, Blackstone's other businesses in Asia include its corporate private equity fund (Blackstone Capital Partners), its real estate opportunity fund (Blackstone Real Estate Partners), its fund of hedge funds business and two closed-end mutual funds (The India Fund and The Asia Tigers Fund).

Hedge Fund Suicide

Kirk Sean Wright, CEO of hedge fund International Management Associates of Atlanta hanged himself in a Union City jail cell Saturday night.

Wright was convicted by a federal jury on 47 counts of mail fraud, securities fraud and money laundering, stemming from a scam run through his hedge fund, International Management Associates. He collected between $115 million and $185 million for his hedge fund from at least 500 investors since 1997.

The FBI in association with the IRS, DOJ and SEC investigated why requests by current and former NFL players for their funds were ignored.

Wright maintained his innocence until the end, contending that simple mis-management was to blame for his investors' losses.

FoHF's Join Forces to Launch Motion Picture Fund

New York based fund of hedge funds (FoHF) Ginepri Capital, and SAGA Capital, an alternative investments advisory firm, announced a newly formed venture, the SAGA/Ginepri Alpha Fund that focuses on the structuring of complex film slates and debt portfolios in the motion picture space.

"Film investors will increasingly employ new techniques commonly used by investment banks, advisory firms and hedgers to analyze the risk/return profiles of potential securities investments." S.K. Dean, Managing Partner of Ginepri Capital added.

SG Alpha Fund will focus on the financing, analysis and securitization of mid to high budget independent films with committed distribution.

Both FoHF contributed significant proprietary risk capital to the new venture, SG Funds will be syndicating $400 million in debt, between a group of New York and European investment banks, to leverage committed capital. The company will only green-light investments using the proprietary Movie Alpha Model.

"We are very enthusiastic about our association with Ginepri for the design, valuation, production and distribution of film portfolios and related acquisitions." Ralf Voellmer, SAGA President stated.

With a strong emphasis in analyzing the risk/returns in developed economies and emerging markets, the management team of SAGA has significant expertise in financial modeling, including analysis and securitization of deals with embedded credit risk, market risk, and operational risk.

False Asset Statments Lead to Conviction

Kirk Wright's Atlanta-based hedge fund company, International Management Associates was found to be fraudlent leading to the conviction of the manager, Wright, as the Department of Justice unsealed a March 10 criminal complaint against him.

"The complaint alleges a fraud involving $150 million to $180 million in missing investor assets managed by Wright's funds, International Management Associates and International Management Associates Advisory Group," said U.S. Attorney David Nahmias in a statement.

The federal complaint charges mail fraud, executed by mailing a set of false asset statements to IMA investor Stephen Atwater. The charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on conviction.

According to authorities, Wright and his company collected more than $150 million spread across thousands of client accounts since 1997 and used false statements and documents to mislead some of them to believe the value of those investments was increasing.

Sentencing is set for August 26.

April 2008 Hedge Fund Performance

Hedge funds started the second quarter of 2008 on a strong note as global stock markets recovered, according to Singapore-based hedge fund research company Eurekahedge.

"The Fed's aggressive response to the weakness across credit markets and the slowing of economic growth in the U.S. went some way in improving investor sentiment during April," Eurekahedge said on their website.

"Rallying equity markets, on the back of a sharp increase in risk appetites, coupled with market reversals across some other asset classes, such as bonds and currencies, were factors responsible for the month's gain," Eurekahedge said.

The MSCI World Index jumped 5% in April, completing the best month since November 2004, as confidence returned following the U.S. subprime loan crisis.

Eurekahedge pointed to Japanese managers as the best performers in April, with the Eurekahedge Japan Hedge Fund Index advancing 3.5%. The report showed similar gains with the Asia Ex-Japan index climbing 2.8%.

The Eurekahedge North American Hedge Fund Index added 1.5%, while the index tracking European hedge funds rose 1.4%. Managers of funds using so-called long-short equity strategies were the best performers because of gains in global stock markets.

Eurekahedge was launched by experienced members of the investment banking community for the hedge fund and investment community. The Eurekahedge Hedge Fund Index tracks the performance of 2,230 funds that invest globally.

Hedge Fund Manager Charged With Fraud

William Galvin, Massachusetts' top securities regulator has charged the hedge fund manager of the River Stream Fund with improperly soliciting investors.

The investigation also turned up a brokerage statement that showed the fund had $1,625 in its account in April. Regan had said he ran $15 million. The regulator said investors who entrusted their savings to Regan feared the money is now lost.

Investigators found River Stream client data thrown into a dumpster near an empty office where Regan said he worked. Wiliam Galvin, whose job includes protecting investors in Massachusetts, has waged aggressive campaigns against anyone caught trying to cheat investors.

HedgeCo Networks LLC Secures Major Outside Investment from Inter-Atlantic Group

HedgeCo Networks LLC has received its first major outside investment from Inter- Atlantic Group, a private equity firm specializing in the financial services sector. The capital will be used by HedgeCo to expand business operations in both their New York City and West Palm Beach locations, as well as to break out into new verticals of the hedge fund industry.

"We are extremely excited that Inter-Atlantic has taken an interest in us, and are eager to take HedgeCo to the next level," says Evan Rapoport, Managing Partner and Co-Founder of HedgeCo Networks. "The vote of confidence that they've instilled in us further fuels our existing drive to be the leading name in the hedge fund service industry."

Inter-Atlantic currently invests in a handful of small to mid-size companies. The companies are chosen after a careful evaluation and determination of potential growth and market reach.

"Inter-Atlantic believes the hedge fund industry is a high growth sector with tremendous potential," says Inter-Atlantic Managing Partner Andrew Lerner. "Rather than investing in a hedge fund itself, Inter-Atlantic chose to invest in one of the premier service providers to hedge funds. We like HedgeCo's international reach, position as a top tier portal and recurring fee revenue model."

About HedgeCo Networks
HedgeCo Networks manages HedgeCo.Net, the premier Hedge Fund Database and Information Portal, along with nine other websites devoted to alternative investments. With over 25,000 active members, HedgeCo.Net provides a platform for hedge fund managers, investors and service providers.

HedgeCo also offers a vast array of services, including hedge fund website design, consultation, third party marketing and seeding. The company has consulted or helped to launch over 500 new hedge funds, both onshore and offshore. HedgeCo Networks was founded in 2001 by Evan Rapoport and Andrew Schneider. For more information, visit HedgeCoNetworks.com.

About Inter-Atlantic Group
Inter-Atlantic Group seeks to identify and create private equity investment opportunities throughout the broad financial services industry, one of the largest segments of the US economy. Specific sectors include financial technology, banking, insurance, asset management and service providers to the financial services industry. Typical investments range from $3 million - $10 million. Inter-Atlantic is principally focused on US and Bermuda opportunities but considers investment opportunities worldwide. For more information, visit InterAtlanticGroup.com.

Time Out

Hi readers, I have been absent for the last couple of weeks as I was in a pretty serious accident. However all is well that ends well and I'm back now.

Please feel free to send me any new hedge fund stories you think are important and I might have missed. I do appreciate reader input. Anyhow, now Ill get back to my news scans. Its good to be back!

Man Launches Futures and Emerging Markets Fund

Hedge fund Man Investments has launched Man Vision Ltd., with structured notes investing equally in AHL, Man's flagship managed futures fund, and RMF Investment Management, the hedge fund operator's Swiss-based fund of hedge funds business targeting emerging markets and managers.

"We are seeing significant changes in world capital flows," said Peter Clarke, chief executive of Man Group plc, in a statement. "Man Vision Index Notes is an exciting gateway to access the new investment opportunities which arise. By combining AHL and RMF, Man Vision Index Notes offers access to these opportunities through a single product." The note is designed to offer high-security access to developing markets, the effect of changing demographics, climate change and future sources of energy.

AHL employs systematic, statistically based investment processes to identify inefficiencies in more than 120 markets around the world. RMF uses proprietary research to select specialist hedge fund managers in new fields to create multi-manager portfolios.

The launch of Man Vision is expected to be among the hedge fund's biggest new product launches of 2008. With a minimum investment of $50,000, the new fund will target exposure to a range of markets and investment strategies, including Asian and emerging markets, commodities, environmental and energy markets, event-driven and health care.

Hedge Fund Chief Elected to Hedge Fund Association Board of Directors

Jay B. Howard, Portfolio Manager & Chief Investment Officer of hedge fund Leonard Asset Management (LAM), has been elected to serve on the 2008 Board of Directors for the Hedge Fund Association (HFA).

HFA is an international not-for-profit association of hedge fund managers, investors, and service providers formed to unite the hedge fund industry and increase awareness of the advantages and opportunities in hedge funds. Members of the HFA Board of Directors are elected and chosen by other HFA members. As one of the HFA Directors, Howard will endeavor to further the HFA mission by increasing awareness of the HFA within the hedge fund community.

Howard is the founder of the alternative investment practice at LAM, his career in the investment and finance industry spans over ten years. He graduated with honors from the University of Dallas with a master’s degree in business administration and graduated cum laude from Augustana College in Rock Island, IL with a bachelor’s degree in accounting. He is an affiliate member of the CFA Institute, a member of the Financial Services Institute, and is a Registered Financial Consultant (RFC™). Active in the industry, he regularly attends and has spoken at alternative investment industry events.

Leonard Asset Management, Inc. is an SEC Registered Investment Advisor that specializes in alternative investments. LAM is under common ownership with Leonard & Company, a federally registered securities broker-dealer and an SEC Registered Investment Advisor. Founded in 1989, Leonard & Company is a regional investment firm providing full service brokerage services, with offices across Michigan in Birmingham, Grand Rapids, Grosse Pointe Farms, Sterling Heights, Troy, and in New York and Colorado.

Missouri Attorney General Seeks To Halt Hedge Fund ‘Gambling On Grain’

Missouri Attorney General Jay Nixon is urging the Commodity Futures Trading Commission (CFTC), the federal agency that regulates futures markets, to take action to protect consumers and farmers by reducing the influence of pension funds, hedge funds, and other futures speculators.

"Farming already brings enough uncertainty without the introduction of outside players into the sensitive markets in which farmers sell their goods," said Nixon in a letter to CFTC Chairman Walter Lukken. "I urge the CFTC to step in and reduce the influence of speculators and give farmers the benefit of the bargained-for price on these contracts."

He asked to put a halt to price manipulation, as, "Farmers are not getting the full benefit of their hard work, and consumers are experiencing sticker shock in the cereal aisle," Nixon said. "Much of this is because speculators, who are neither producers nor consumers, are manipulating prices, and they are the primary beneficiaries. Wall Street gambling on grain hasn't had a positive impact on Main Street, Missouri."

According to Nixon's letter, many Missouri farmers sell their commodities on futures contracts, which require them to deliver a quantity of goods on a particular date. These contracts have a fixed price and protect farmers from fluctuations in market prices between planting time and harvest time.

In recent years, however, pension funds, hedge funds, and other speculators have flooded commodities markets by buying futures contracts. Unlike other commodities buyers, speculators use these contracts as a way to game the market and do not actually receive the commodities they contract for.

The CFTC is holding a roundtable discussion on this and other issues today, and Nixon's letter will be included in the agency's record. The CTFC was created by Congress in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the U.S.

Alex Akesson
Editor for HedgeCo LLC
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. For more information, visit www.hedgeconetworks.com

Emerging Makets to Showcase Islamic Finance Initiatives in IFSB Summit

Malaysia, Singapore and Hong Kong are participating in the country showcases which will be held prior to the 5th Islamic Financial Services Board (IFSB) summit, on 12th May 2008 in Amman, Jordan.

The country showcases are part of this annual summit hosted by the Central Bank of Jordan. The summit will be held under the Royal Patronage of Her Majesty Queen Rania Al-Abdullah, themed 'Financial Globalisation and Islamic Financial Services'.

Professor Rifaat Ahmed Abdel Karim, IFSB's Secretary General said, "This is our second year of introducing the country showcases as a pre-summit event. The IFSB is happy to provide this platform for its member countries to showcase their individual country initiatives and policies on Islamic financial services."

The country showcases will run concurrently with another pre-summit event, namely a public hearing on two IFSB Exposure Drafts: 1) Governance for Islamic Collective Investment Schemes and 2) Capital Adequacy Requirements for Sukuk Securitisation and Real Estate Investment, which were issued in December 2007 for public consultation as part of the IFSB due process for preparing its standards and guidelines.

The IFSB is an international organisation that promotes the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors.

The IFSB currently has 164 members comprising 41 banking, securities and insurance regulatory and supervisory authorities, 6 international inter-governmental organisations and 117 market players and professional firms from over 31 jurisdictions.

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
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. For more information, visit www.hedgeconetworks.com

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.