In a recent real estate seminar, sponsored by World Class Group in Dubai, the keynote speaker said that the future of the real estate market will be based on Darwin's law of natural selection.
Michael J. Tolan, CEO of World Class Group was addressing representatives from over 30 real estate related companies attending the forum, 'Beating the Economic Meltdown, Wrestling Alligators in Dubai'. The seminar was attended by hedge fund managers, property developers and real estate agents.
Tolan said that Developers who will continue to use the models of the past 18 months in the market could be in for a severe correction in their performance numbers, "The trends of the market will follow Darwin's Theory of Natural Selection and the entire model of the market will transform." he said.
"Developers will take lessons from the past recessions and will innovate new packaging and offerings to comply to investor demand," Tolan Said, "More rent to own schemes, attractive and flexible in-house finance, and real estate investment trusts will emerge to lure investors back into the stormy and uncertain waters of the real estate market."
Tolan also highlighted the advent of fractional ownership and timeshare schemes which will evolve in the Dubai UAE markets to offset the oversupply of unsold inventory and attract a new class of investors and speculators.
"In the past, the lucrative Dubai real estate market has succeeded on the heals of market euphoria and innuendo, which has created an artificial hype. Vanity selling has been the main culprit," he said.
The market value today exceeds 4 trillion dollars of existing or pipeline projects, including the world tallest building and projects like the Palm Islands which feature Trump Towers, Atlantis and the new World Islands.
"Developers and agents in the future must address the fear factor that may prevent investors to plunge into the market, and good solid regulations that Dubai has now adopted will go far to overcome consumer protection issues often absent in the past."
"Real estate consumers will respond when they have a big enough incentive to do so, therefore the more flexible and innovative the offering, combined with stringent measures of safety and protection,the better the outcome for the future of prosperity in the Dubai market arena," he added. "The Dubai market is experiencing a slow down, however is dynamic, amazing and full of promise."
19 Nov 2008
Companies and Markets Reports on Hedge Funds in Europe 2008
Companiesandmarkets.com has released a report presentig views on the market for hedge fund investment based on a survey of 100 leading asset managers across Europe.
The report, which covers mass market, high net worth and institutional customer groups, forms part of a series looking at the market for alternative investments in Europe. Looking at the onshore hedge fund market in France, Germany, Italy, Spain and
the UK, the report provides forecasts to 2012, analysing legislative developments and their implications for growth in the European hedge fund market. The report also dentifies the primary client segments and appropriate marketing and distribution strategies for individual countries.
There will be strong growth in funds of hedge funds over the next year, the report states, with less demand for single hedge funds according to 65% of asset managers in Europe. Asset managers in Spain and Italy believe most strongly that the demand for funds of hedge funds will outstrip that for single hedge funds, followed by France, Germany and finally the UK.
Across the five core economies in Western Europe – France, Germany, Italy, Spain and the UK – institutional investors now dominate the market for hedge funds. On average, slightly more than two-thirds of asset managers confirmed that this group represents their biggest customer segment for hedge funds today. In Italy, mass market investors may also be put off by the price of hedge fund investment, according to 40% of asset managers there. In Spain, on the other hand, demand from mass market clients is being limited by competition from capital-protected and structured products and inadequate promotion of hedge fund products by banks and advisors.
The report, which covers mass market, high net worth and institutional customer groups, forms part of a series looking at the market for alternative investments in Europe. Looking at the onshore hedge fund market in France, Germany, Italy, Spain and
the UK, the report provides forecasts to 2012, analysing legislative developments and their implications for growth in the European hedge fund market. The report also dentifies the primary client segments and appropriate marketing and distribution strategies for individual countries.
There will be strong growth in funds of hedge funds over the next year, the report states, with less demand for single hedge funds according to 65% of asset managers in Europe. Asset managers in Spain and Italy believe most strongly that the demand for funds of hedge funds will outstrip that for single hedge funds, followed by France, Germany and finally the UK.
Across the five core economies in Western Europe – France, Germany, Italy, Spain and the UK – institutional investors now dominate the market for hedge funds. On average, slightly more than two-thirds of asset managers confirmed that this group represents their biggest customer segment for hedge funds today. In Italy, mass market investors may also be put off by the price of hedge fund investment, according to 40% of asset managers there. In Spain, on the other hand, demand from mass market clients is being limited by competition from capital-protected and structured products and inadequate promotion of hedge fund products by banks and advisors.
18 Nov 2008
European-domiciled Hedge Funds Administration Services Strengthened by GlobeOp
GlobeOp announced the strengthening its European-domiciled hedge fund administration services following the licensing of its Dublin office by the Irish Financial Services Regulatory Authority, expanding the company’s existing fund administration network based in the Cayman Islands and the USA.
The office is led by Jim Casey, GlobeOp’s global head of investor relations,"Ireland is a strategically important administrative center for European domiciled funds," Casey said, "Despite market turbulence this past year, the European funds sector continues to develop its long-term potential. I look forward to building a Dublin team whose best practices further strengthen our fund administration services globally.”
"The GlobeOp Ireland license allows us to directly service Irish domiciled funds and support European hedge fund clients and their investors with full fund administration services," Vernon Barback, GlobeOp president and chief operating officer said, "This includes independent and transparent fund performance reporting.”
The GlobeOp Ireland license allows GlobeOp to directly service Irish domiciled funds and support European hedge fund clients and their investors with full fund administration services.
With $108 billion in assets under administration, GlobeOp has more than 14,000 investors globally. Earlier this year the company opened a new hurricane-proof office in Caymana Bay, Cayman Islands and appointed Gary Linford, former head of the Investment & Securities Division of the Cayman Islands Monetary Authority (CIMA), to its Cayman Islands subsidiary board.
The office is led by Jim Casey, GlobeOp’s global head of investor relations,"Ireland is a strategically important administrative center for European domiciled funds," Casey said, "Despite market turbulence this past year, the European funds sector continues to develop its long-term potential. I look forward to building a Dublin team whose best practices further strengthen our fund administration services globally.”
"The GlobeOp Ireland license allows us to directly service Irish domiciled funds and support European hedge fund clients and their investors with full fund administration services," Vernon Barback, GlobeOp president and chief operating officer said, "This includes independent and transparent fund performance reporting.”
The GlobeOp Ireland license allows GlobeOp to directly service Irish domiciled funds and support European hedge fund clients and their investors with full fund administration services.
With $108 billion in assets under administration, GlobeOp has more than 14,000 investors globally. Earlier this year the company opened a new hurricane-proof office in Caymana Bay, Cayman Islands and appointed Gary Linford, former head of the Investment & Securities Division of the Cayman Islands Monetary Authority (CIMA), to its Cayman Islands subsidiary board.
Hedge Fund Manager OakRun Launches Short Term Fund
Hedge fund Manager OakRun Capital LLC, has announced the launch of a receivables refactoring fund, the 'Short Term Fund'.
The 'Short Term Fund', a Cayman Islands exempted fund, launched on October 1st and came in at 9.48% annualized in its first month.
The fund's objective is to generate above average current income with a lower overall credit risk profile and maintain a stable NAV.
With JP Morgan & Wachovia Bank as Custodian, the fund has a 1% management fee, 10% performance fee, quarterly redemptions, an initial lock-up period of 6 months and a minimum investment of $1,000,000. Shares are offered for subscription to eligible non-U.S. persons.
Managed by a board of directors responsible for the overall supervision and control, the fund has engaged OakRun Capital to perform management and administrative functions.
"We do not believe that simply managing for relative performance is satisfactory to our clients or ourselves." says Scott Rhodenizer, Founder, CEO, and Chief Investment Officer, "While we work to outperform the markets, we strive to do so without excessive risk.”
The fund will seek to achieve its objective through a process known as factoring. In markets for debt instruments, higher relative yields generally indicate greater levels of credit risk than lower yielding instruments. However, OakRun believes that the trade receivables purchased by the fund present an opportunity to achieve higher yields with moderate risk.
Rhodenizer is former Managing Director at Deutsche Bank Securities with over 16 years of experience within the investment industry. He advised on over $2.5 billion in institutional assets at Deutsche Bank Securities in Miami, Florida and has experience in traditional and structured investments, such as fixed income securities, derivatives, global equities, and commodities.
At least 50% of the portfolio is insured by Euler American Credit Indemnity, an Allianz company and insurer of domestic and foreign accounts receivable covering US sales in excess of $150 billion annually. Euler is North America’s leading credit insurer, rated AA- by Standard & Poor’s. It is a subsidiary of Paris-based Euler incorporated in 1891 with current net assets in excess of $3.0 billion.
The 'Short Term Fund', a Cayman Islands exempted fund, launched on October 1st and came in at 9.48% annualized in its first month.
The fund's objective is to generate above average current income with a lower overall credit risk profile and maintain a stable NAV.
With JP Morgan & Wachovia Bank as Custodian, the fund has a 1% management fee, 10% performance fee, quarterly redemptions, an initial lock-up period of 6 months and a minimum investment of $1,000,000. Shares are offered for subscription to eligible non-U.S. persons.
Managed by a board of directors responsible for the overall supervision and control, the fund has engaged OakRun Capital to perform management and administrative functions.
"We do not believe that simply managing for relative performance is satisfactory to our clients or ourselves." says Scott Rhodenizer, Founder, CEO, and Chief Investment Officer, "While we work to outperform the markets, we strive to do so without excessive risk.”
The fund will seek to achieve its objective through a process known as factoring. In markets for debt instruments, higher relative yields generally indicate greater levels of credit risk than lower yielding instruments. However, OakRun believes that the trade receivables purchased by the fund present an opportunity to achieve higher yields with moderate risk.
Rhodenizer is former Managing Director at Deutsche Bank Securities with over 16 years of experience within the investment industry. He advised on over $2.5 billion in institutional assets at Deutsche Bank Securities in Miami, Florida and has experience in traditional and structured investments, such as fixed income securities, derivatives, global equities, and commodities.
At least 50% of the portfolio is insured by Euler American Credit Indemnity, an Allianz company and insurer of domestic and foreign accounts receivable covering US sales in excess of $150 billion annually. Euler is North America’s leading credit insurer, rated AA- by Standard & Poor’s. It is a subsidiary of Paris-based Euler incorporated in 1891 with current net assets in excess of $3.0 billion.
17 Nov 2008
Hedge Funds Praise The Receivables Exchange
Receivables Exchange, the world’s first online marketplace for real-time trading of accounts receivable, today announced that it has launched its proprietary patent-pending trading platform to conduct live trading of accounts receivable.
“The Receivables Exchange is a phenomenal idea that has hit the asset based finance industry by storm,” said Michael Scanlon, Managing Director of HedgeCo.net and Member of the Board for The Hedge Fund Association. “Through its centralized, transparent marketplace, it is transforming an industry that has long been based on one-to-one relationships, effectively making the sale of commercial receivables a completely transparent and globally competitive marketplace.”
At The Receivables Exchange, U.S. businesses (Sellers) are able to increase their cash flow and free up their working capital by having their outstanding receivables bid on in real-time by a global network of institutional investors (Buyers).
“The Receivables Exchange was founded on the fundamental belief that America’s small and mid-sized businesses should have better access to working capital,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “In today’s credit crisis, we’re hearing from CEOs and CFOs across the country that the need has never been greater for them to identify alternative funding sources to reinvest into their businesses in order to maintain their success.”
Companies of all sizes – from under $10 million to over $150 million - have been signing up to use their receivables to accelerate cash flow. Members span a diverse range of dozens of industries, including manufacturing, technology, transportation, distribution and staffing – all realizing the strategic advantage of monetizing their accounts receivable, particularly in today’s troubling credit crunch.
Commercial banks, hedge funds and asset-based lenders can take advantage of the centralized, competitive marketplace to realize a stable, high growth investment opportunity.
“The Receivables Exchange allows us to extend our asset-based finance investment strategies to include short-term receivables,” said Sam Adams, managing director of Cedar Lane, a New York based asset based hedge fund. “The Exchange offers a unique opportunity to obtain returns better than money-market but with shorter tenures than the traditional entertainment and media loan positions in our funds’ portfolios. Through The Receivables Exchange platform we can invest funds on a short-term basis to a qualified pool of Sellers at a more attractive rate of return than cash alternatives without diverging from our investment strategy.”
“The Receivables Exchange is a phenomenal idea that has hit the asset based finance industry by storm,” said Michael Scanlon, Managing Director of HedgeCo.net and Member of the Board for The Hedge Fund Association. “Through its centralized, transparent marketplace, it is transforming an industry that has long been based on one-to-one relationships, effectively making the sale of commercial receivables a completely transparent and globally competitive marketplace.”
At The Receivables Exchange, U.S. businesses (Sellers) are able to increase their cash flow and free up their working capital by having their outstanding receivables bid on in real-time by a global network of institutional investors (Buyers).
“The Receivables Exchange was founded on the fundamental belief that America’s small and mid-sized businesses should have better access to working capital,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “In today’s credit crisis, we’re hearing from CEOs and CFOs across the country that the need has never been greater for them to identify alternative funding sources to reinvest into their businesses in order to maintain their success.”
Companies of all sizes – from under $10 million to over $150 million - have been signing up to use their receivables to accelerate cash flow. Members span a diverse range of dozens of industries, including manufacturing, technology, transportation, distribution and staffing – all realizing the strategic advantage of monetizing their accounts receivable, particularly in today’s troubling credit crunch.
Commercial banks, hedge funds and asset-based lenders can take advantage of the centralized, competitive marketplace to realize a stable, high growth investment opportunity.
“The Receivables Exchange allows us to extend our asset-based finance investment strategies to include short-term receivables,” said Sam Adams, managing director of Cedar Lane, a New York based asset based hedge fund. “The Exchange offers a unique opportunity to obtain returns better than money-market but with shorter tenures than the traditional entertainment and media loan positions in our funds’ portfolios. Through The Receivables Exchange platform we can invest funds on a short-term basis to a qualified pool of Sellers at a more attractive rate of return than cash alternatives without diverging from our investment strategy.”
Pharos Hedge Fund Launches Office In Dubai
Pharos Financial Advisors Limited, a specialist emerging markets fund manager, announced that it has been granted a license by the Dubai Financial Services Authority (DFSA) to operate as an authorised firm within the Dubai International Financial Centre (DIFC).
Founded in 1997 by US national, Peter M. Halloran, with seed capital from Soros Fund Management and CS First Boston, Pharos Financial Group currently runs three funds - the Pharos Russia Fund, the Pharos Small Cap Fund, and the Pharos Gas Investment Fund.
"We are delighted to receive a license from DFSA, particularly as the first ever fund manager with a Russian/CIS focus to join DIFC," Halloran said, "Pharos intends to fill the niche as the market leader in emerging markets fund management. Already we have seen tremendous appetite from GCC investors for our Russian-focused investment opportunities."
Prior to founding Pharos Financial Group, Halloran was the principal contributor toward building the #1 ranked CS First Boston equity and fixed income brokerage businesses in Russia and the CIS. He has been a leader in the development of the Russian capital markets since their inception in 1994, bringing more than $8 billion to the markets through debt, equity and private placements including Russia's first local IPO and more than $2 billion of privatisation initiatives.
Welcoming Pharos to DIFC, Nasser Al Shaali, CEO, commented, "We welcome Pharos Financial Group to the Dubai International Financial Centre. DIFC will provide Pharos with a supportive environment to advance their business growth in the Middle East. The world-class regulatory framework in DIFC will give them additional credibility as a specialist emerging market fund manager."
The Pharos investment team brings more than 90 years of combined expertise in emerging markets to its new operations in DIFC. Moreover, Pharos has sat on 40 seats of Russian company boards. Two Pharos Funds were ranked among the top 15 hedge funds globally by Bloomberg and Eurohedge. Currently, the three Pharos funds are ranked 1-2-3 among best performers in Russia this year.
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services. In just three years, over 700 firms have registered at the DIFC.
Pharos Financial Group ranks as the world's leading fund manager having a focus on Russia and the CIS with a successful track record of over 11 years. With offices in Moscow and now Dubai, Pharos Financial Group has produced superior absolute returns over the years while providing institutions and private investors an opportunity to gain exposure in the emerging markets of Russia and the CIS.
Founded in 1997 by US national, Peter M. Halloran, with seed capital from Soros Fund Management and CS First Boston, Pharos Financial Group currently runs three funds - the Pharos Russia Fund, the Pharos Small Cap Fund, and the Pharos Gas Investment Fund.
"We are delighted to receive a license from DFSA, particularly as the first ever fund manager with a Russian/CIS focus to join DIFC," Halloran said, "Pharos intends to fill the niche as the market leader in emerging markets fund management. Already we have seen tremendous appetite from GCC investors for our Russian-focused investment opportunities."
Prior to founding Pharos Financial Group, Halloran was the principal contributor toward building the #1 ranked CS First Boston equity and fixed income brokerage businesses in Russia and the CIS. He has been a leader in the development of the Russian capital markets since their inception in 1994, bringing more than $8 billion to the markets through debt, equity and private placements including Russia's first local IPO and more than $2 billion of privatisation initiatives.
Welcoming Pharos to DIFC, Nasser Al Shaali, CEO, commented, "We welcome Pharos Financial Group to the Dubai International Financial Centre. DIFC will provide Pharos with a supportive environment to advance their business growth in the Middle East. The world-class regulatory framework in DIFC will give them additional credibility as a specialist emerging market fund manager."
The Pharos investment team brings more than 90 years of combined expertise in emerging markets to its new operations in DIFC. Moreover, Pharos has sat on 40 seats of Russian company boards. Two Pharos Funds were ranked among the top 15 hedge funds globally by Bloomberg and Eurohedge. Currently, the three Pharos funds are ranked 1-2-3 among best performers in Russia this year.
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services. In just three years, over 700 firms have registered at the DIFC.
Pharos Financial Group ranks as the world's leading fund manager having a focus on Russia and the CIS with a successful track record of over 11 years. With offices in Moscow and now Dubai, Pharos Financial Group has produced superior absolute returns over the years while providing institutions and private investors an opportunity to gain exposure in the emerging markets of Russia and the CIS.
14 Nov 2008
20 Biggest Economies In World Economic Summit Tomorrow
The leaders of the world's 20 biggest economies will hold an historic meeting Saturday in a bid to head off the threat of a protracted global recession and forge a new world financial order. Called together less than two months ago by US President George W Bush, the emergency summit of the Group of 20 (G20) leaders at the Washington National Building Museum comes in the wake of the biggest crisis to engulf the world economy since the Great Depression.
Unleashed by the US mortgage meltdown, the upheaval in the world financial system that emerged in recent months has sent stock exchanges into a tailspin, undercut credit markets and prompted a drive for tighter worldwide regulation of the financial industry.
As the crisis spread from the United States to the wider world, the International Monetary Fund (IMF) last week forecast global growth would slow to 2.2 per cent in 2009, considered a global recession by the organization. Most advanced economies will contract over the same period.
Billed as a Bretton Woods-style gathering, after the 1944 meeting that established the post-Second World War financial system, this week's summit marks the launch of a process world leaders hope will lead to an overhaul of the rule book for the global financial industry.
While a revision of the capitalist model itself may not be on the horizon, even financial institutions have recognized that more transparency and scrutiny of their business practices is now inevitable.
"We do believe that coming out of all this will be some rather fundamental reforms in the global financial architecture," said Charles Dallara, managing director of the Institute of International Finance (IIF), the world's top banking lobby.
The IIF has even called for a new global body that could coordinate such reforms, but Dallara added: "I think it would be the height of misguidedness if we concluded that capitalism is dead. I think we do need to fix the things that went wrong."
But many governments have sought to lower expectations for the summit, while others have pushed for a broader agenda that could include climate change and trade policy.
"The summit has not been well prepared," said Heribert Dieter, senior fellow with the German Institute for International and Security Affairs in Berlin. "It is not clear what those attending the summit really want to talk about."
Indeed, a major risk facing the summit is that it could expose deep divisions between the US and other key G20 states, with the Europeans expected to try press for more regulation than the US believes is necessary.
At the same time, major emerging economies such as China, Russia and Brazil are likely to demand a key role in drawing up the blueprint for the new financial system.
Responding to the slew of proposals for the Washington summit, the White House has said world leaders will agree on a set of "principles" for a regulatory overhaul and leave the specifics to a later date.
Those principles could include raising the low capital requirements that precipitated the current credit crisis by allowing banks to take excessive risks and amass mountains of debt. International credit-rating agencies could also face tougher scrutiny, and the summit will likely set in motion moves towards closer co-operation between national bank supervisory bodies.
In addition, there are plans for a crackdown on tax havens as well as financial sectors that have so far managed to evade regulation, such as hedge funds.
One of the more concrete measures likely to result from the G20 meeting is an expansion of the role played by the IMF, a global lender of last resort that has also traditionally been charged with maintaining economic stability.
Governments, central banks and legislatures around the world have already taken a series of unprecedented measures in an effort to stabilize the financial system, including coordinated interest-rate cuts and billion-dollar rescue packages for struggling banks.
Yet governments attending Saturday's meeting are likely to face calls for the implementation of generous national economic stimulus plans to help the world economy limp through the current uncertainty.
Morris Goldstein of the Peterson Institute for International Economics said investments of 1-2 per cent of gross domestic product should be offered by every G20 member government that can afford it.
In addition to the world's leading industrialized countries such as the US, Germany, Japan, Canada, Italy, Britain and France, the G20 also includes key emerging economies such as China, India, Russia and Brazil, which have been a major source of global economic growth in recent years.
Coming less than two weeks after Barack Obama's election and within a few months of Bush's departure from the White House, the process will ultimately give the new president the chance to help reshape the global financial structure.
Obama will not attend the summit, stressing last week that the US only has "one president at a time," but the White House has said his team of economic advisors will be regularly informed on its progress.
Indeed, the scale of the changes that are to be considered are expected to take several months to implement and consequently form a key part of Obama's early period in office.
Unleashed by the US mortgage meltdown, the upheaval in the world financial system that emerged in recent months has sent stock exchanges into a tailspin, undercut credit markets and prompted a drive for tighter worldwide regulation of the financial industry.
As the crisis spread from the United States to the wider world, the International Monetary Fund (IMF) last week forecast global growth would slow to 2.2 per cent in 2009, considered a global recession by the organization. Most advanced economies will contract over the same period.
Billed as a Bretton Woods-style gathering, after the 1944 meeting that established the post-Second World War financial system, this week's summit marks the launch of a process world leaders hope will lead to an overhaul of the rule book for the global financial industry.
While a revision of the capitalist model itself may not be on the horizon, even financial institutions have recognized that more transparency and scrutiny of their business practices is now inevitable.
"We do believe that coming out of all this will be some rather fundamental reforms in the global financial architecture," said Charles Dallara, managing director of the Institute of International Finance (IIF), the world's top banking lobby.
The IIF has even called for a new global body that could coordinate such reforms, but Dallara added: "I think it would be the height of misguidedness if we concluded that capitalism is dead. I think we do need to fix the things that went wrong."
But many governments have sought to lower expectations for the summit, while others have pushed for a broader agenda that could include climate change and trade policy.
"The summit has not been well prepared," said Heribert Dieter, senior fellow with the German Institute for International and Security Affairs in Berlin. "It is not clear what those attending the summit really want to talk about."
Indeed, a major risk facing the summit is that it could expose deep divisions between the US and other key G20 states, with the Europeans expected to try press for more regulation than the US believes is necessary.
At the same time, major emerging economies such as China, Russia and Brazil are likely to demand a key role in drawing up the blueprint for the new financial system.
Responding to the slew of proposals for the Washington summit, the White House has said world leaders will agree on a set of "principles" for a regulatory overhaul and leave the specifics to a later date.
Those principles could include raising the low capital requirements that precipitated the current credit crisis by allowing banks to take excessive risks and amass mountains of debt. International credit-rating agencies could also face tougher scrutiny, and the summit will likely set in motion moves towards closer co-operation between national bank supervisory bodies.
In addition, there are plans for a crackdown on tax havens as well as financial sectors that have so far managed to evade regulation, such as hedge funds.
One of the more concrete measures likely to result from the G20 meeting is an expansion of the role played by the IMF, a global lender of last resort that has also traditionally been charged with maintaining economic stability.
Governments, central banks and legislatures around the world have already taken a series of unprecedented measures in an effort to stabilize the financial system, including coordinated interest-rate cuts and billion-dollar rescue packages for struggling banks.
Yet governments attending Saturday's meeting are likely to face calls for the implementation of generous national economic stimulus plans to help the world economy limp through the current uncertainty.
Morris Goldstein of the Peterson Institute for International Economics said investments of 1-2 per cent of gross domestic product should be offered by every G20 member government that can afford it.
In addition to the world's leading industrialized countries such as the US, Germany, Japan, Canada, Italy, Britain and France, the G20 also includes key emerging economies such as China, India, Russia and Brazil, which have been a major source of global economic growth in recent years.
Coming less than two weeks after Barack Obama's election and within a few months of Bush's departure from the White House, the process will ultimately give the new president the chance to help reshape the global financial structure.
Obama will not attend the summit, stressing last week that the US only has "one president at a time," but the White House has said his team of economic advisors will be regularly informed on its progress.
Indeed, the scale of the changes that are to be considered are expected to take several months to implement and consequently form a key part of Obama's early period in office.
13 Nov 2008
AdultVest Closes Offering on Priapus, Says Fund on Track for the Year
Alternative investment management firm and Hedge Fund Launch of the Year Award Winner, AdultVest, Inc., announced it officially closed its offering in the Priapus Investment Fund, LLC.
"In spite of the US and Global economic condition, the Priapus Investment Fund, LLC is on track for a great year," Francis Koenig, the Manager of the Priapus Fund said, saying also that he has plans to re-open a new offering soon.
This year the Priapus Investment Fund acquired iPorn. com, HandJob. com, and several adult content libraries. The fund has invested in the development and acquisition of several internet technologies, software platforms, and mobile technologies, and also acquired a stake in a public company operating gentlemen's clubs.
"We have identified a few more opportunities that will close out the year and expect the fund to be fully invested by early 2009," Koenig said, 2We are already hard at work on the development of Priapus Investment Fund II and have very high expectations for the new fund."
The Beverly Hills, California-based investment company deals exclusively in the estimated 100 billion dollar Adult Entertainment Industry. It is active in mergers, acquisitions, and operates the only on-line investment community with over 4,500 registered investors and over 1,000 adult entertainment companies seeking investments, mergers, and acquisitions.
"In spite of the US and Global economic condition, the Priapus Investment Fund, LLC is on track for a great year," Francis Koenig, the Manager of the Priapus Fund said, saying also that he has plans to re-open a new offering soon.
This year the Priapus Investment Fund acquired iPorn. com, HandJob. com, and several adult content libraries. The fund has invested in the development and acquisition of several internet technologies, software platforms, and mobile technologies, and also acquired a stake in a public company operating gentlemen's clubs.
"We have identified a few more opportunities that will close out the year and expect the fund to be fully invested by early 2009," Koenig said, 2We are already hard at work on the development of Priapus Investment Fund II and have very high expectations for the new fund."
The Beverly Hills, California-based investment company deals exclusively in the estimated 100 billion dollar Adult Entertainment Industry. It is active in mergers, acquisitions, and operates the only on-line investment community with over 4,500 registered investors and over 1,000 adult entertainment companies seeking investments, mergers, and acquisitions.
12 Nov 2008
New European Hedge Fund Association Launch Underway
Preparations are underway for the creation of a new European hedge fund association, hedgemeetings.com, which has the objective to communicate the public utility of this industry for wealth creation and risk management. A first meeting for founding participants will take place this Friday, November 14, in Paris.
Rene Friedrich, 45, who has analyzed and selected hedge funds since 1996, is launching the initiative, as he sees the industry's advantages undervalued, "There a many opinions about the risks of hedge funds and about the wealth created for their managers, but one sees rarely a balanced view of the general public utility of better asset management in general and of hedge fund work in particular. The realness of the benefits only seems to become apparent when the opposite occurs and wealth is lost in financial markets. The fact is that effective asset management contributes wealth to the economy."
"The initiative aims to give the hedge fund industry a more just image: While individual hedge funds can have more risks than other investment products and investors may lose all or part of their invested capital, the industry overall has, so far this year, avoided the degree of wealth loss of equity investments in general. And a notable number of funds even has avoided losses altogether, no small achievement. It can be argued that future regulations, which could facilitate a greater diversification into hedge funds and funds of hedge funds, may ultimately help to reduce the sum of wealth destructions in cyclical downturns."
"Asset management is not a zero sum game, financial investments are the source of capital in projects, and any wealth created, or not lost, is added, or maintained, in the economy. These are basic principles, and for all the criticisms of financial markets, some just and some not, the objective must be to use what is helping," Friedrich concluded.
Rene Friedrich, 45, who has analyzed and selected hedge funds since 1996, is launching the initiative, as he sees the industry's advantages undervalued, "There a many opinions about the risks of hedge funds and about the wealth created for their managers, but one sees rarely a balanced view of the general public utility of better asset management in general and of hedge fund work in particular. The realness of the benefits only seems to become apparent when the opposite occurs and wealth is lost in financial markets. The fact is that effective asset management contributes wealth to the economy."
"The initiative aims to give the hedge fund industry a more just image: While individual hedge funds can have more risks than other investment products and investors may lose all or part of their invested capital, the industry overall has, so far this year, avoided the degree of wealth loss of equity investments in general. And a notable number of funds even has avoided losses altogether, no small achievement. It can be argued that future regulations, which could facilitate a greater diversification into hedge funds and funds of hedge funds, may ultimately help to reduce the sum of wealth destructions in cyclical downturns."
"Asset management is not a zero sum game, financial investments are the source of capital in projects, and any wealth created, or not lost, is added, or maintained, in the economy. These are basic principles, and for all the criticisms of financial markets, some just and some not, the objective must be to use what is helping," Friedrich concluded.
Strong Performance For Pure Capital In October
Pure Capital Limited, a quantitatively-driven hedge fund specializing in “targeted non-correlation” saw strong performance from their “Pure Bespoke” customized portfolio solutions in October – with client account performance ranging from +4% to +10% for the month.
Pure Capital describe their “targeted non-correlation” approach as “the provision of positive investment return streams that are very low or negatively-correlated with specific geographic or asset class benchmarks”.
Pure Capital’s year-to-date average performance across all products was +26% at month-end October 2008. Medium term correlation coefficients ranged from -0.15 to -0.80.
"We have a range of quantitative techniques through which we both deconstruct and analyze portfolio performance." Anthony Limbrick, Pure Capital’s Chief Investment Officer said, "Once portfolio performance drivers have been specified, customized portfolio solutions are built using a series of proprietary building blocks, each of which is designed to address specific types of pay-offs".
In September the Paris-based EDHEC Risk and Asset Management Research Centre published a report on overlay hedging in fund of funds. The report, authored by David E. Kuenzi, Remy Chaudhuri and Zhihui Dong of Glenwood Capital investments concluded that “a hedging capability removes a significant constraint from FoFs” and “should have the net result of improving alpha, allowing for more unique and idiosyncratic portfolios, and for more creative structured products”.
Limbrick highlighted the benefits to a European fund of fund of implementing a Pure Bespoke solution - “if one were to use the Eurekahedge European fund of funds index as a fund of fund proxy, our Pure European BetaMatch program could have reduced fund of fund losses from almost 19% year-to-date to less than 1%. Not only would performance have been improved, but there would have also been more cash available for redemption needs. We also give our clients the choice of upside beta exposure if they require it”.
In response to a question regarding the type of client exposures hedged by the Pure Capital, Limbrick said the Pure Bespoke portfolio solutions typically address “pervasive equity beta exposures or potential gap risk issues but we do look forward to widening the approach to address a range of more exotic or dynamic exposures”.
Pure Capital describe their “targeted non-correlation” approach as “the provision of positive investment return streams that are very low or negatively-correlated with specific geographic or asset class benchmarks”.
Pure Capital’s year-to-date average performance across all products was +26% at month-end October 2008. Medium term correlation coefficients ranged from -0.15 to -0.80.
"We have a range of quantitative techniques through which we both deconstruct and analyze portfolio performance." Anthony Limbrick, Pure Capital’s Chief Investment Officer said, "Once portfolio performance drivers have been specified, customized portfolio solutions are built using a series of proprietary building blocks, each of which is designed to address specific types of pay-offs".
In September the Paris-based EDHEC Risk and Asset Management Research Centre published a report on overlay hedging in fund of funds. The report, authored by David E. Kuenzi, Remy Chaudhuri and Zhihui Dong of Glenwood Capital investments concluded that “a hedging capability removes a significant constraint from FoFs” and “should have the net result of improving alpha, allowing for more unique and idiosyncratic portfolios, and for more creative structured products”.
Limbrick highlighted the benefits to a European fund of fund of implementing a Pure Bespoke solution - “if one were to use the Eurekahedge European fund of funds index as a fund of fund proxy, our Pure European BetaMatch program could have reduced fund of fund losses from almost 19% year-to-date to less than 1%. Not only would performance have been improved, but there would have also been more cash available for redemption needs. We also give our clients the choice of upside beta exposure if they require it”.
In response to a question regarding the type of client exposures hedged by the Pure Capital, Limbrick said the Pure Bespoke portfolio solutions typically address “pervasive equity beta exposures or potential gap risk issues but we do look forward to widening the approach to address a range of more exotic or dynamic exposures”.
11 Nov 2008
Growth in Alternative Investments Among Institutions and Financial Advisors Expected to Continue
Morningstar and Barron’s today released highlights of a recent national survey examining the perception and usage of alternative investments among institutions and financial advisors.
“Our survey found that both institutions and advisors want alternative investments that are liquid, transparent, and regulated like traditional investments,” said Steve Deutsch, director of separate accounts and collective investment trusts at Morningstar. "We conducted this survey during one of the worst market downturns in history, where traditional U.S. and international investments plummeted and almost no alternative investments provided safe haven."
"One particularly interesting survey result was that against this backdrop, the majority of both advisors and institutions still reported that they expected to increase usage of alternative investments in the future, and they believed alternative investments will continue to grow in importance versus traditional investments," Deutsch added. "Recent poor performance of alternatives has not caused advisors or institutions to question their usage."
Among the survey findings are that for institutions limited partnerships, including hedge funds, direct real estate, and private equity, are the most popular alternative vehicles for institutions.
Almost half of institutions surveyed allocate more than 10 percent of their portfolios to alternative investments, and nearly 20 percent allocate more than 25 percent of their portfolios to alternatives. Institutions generally expect their portfolio allocations to alternative investments, particularly hedge funds and private equity, to increase over the next five years. Close to a quarter (23 percent) of institutions expect to invest more than 25 percent of their portfolios into alternatives.
The survey shows that advisors are predominantly investing in alternative investments through liquid, regulated, and transparent vehicles like mutual funds and exchange-traded funds (ETFs), but they’re also employing other non-traditional investments with their clients, like oil and gas limited partnerships, non-traded Real Estate Investment Trusts (REITs), church bonds, and equipment leasing.
Among advisors who work with average individual investors, almost 80 percent use alternative investments with some clients. About 40 percent of advisors had more than half of their higher-net-worth clients in some alternative investments.
Morningstar and Barron’s conducted the Internet-based survey in October 2008; 252 institutions and 1,180 financial advisors participated. The complete survey results appear in the Nov. 10 issue of Barron’s.
“Our survey found that both institutions and advisors want alternative investments that are liquid, transparent, and regulated like traditional investments,” said Steve Deutsch, director of separate accounts and collective investment trusts at Morningstar. "We conducted this survey during one of the worst market downturns in history, where traditional U.S. and international investments plummeted and almost no alternative investments provided safe haven."
"One particularly interesting survey result was that against this backdrop, the majority of both advisors and institutions still reported that they expected to increase usage of alternative investments in the future, and they believed alternative investments will continue to grow in importance versus traditional investments," Deutsch added. "Recent poor performance of alternatives has not caused advisors or institutions to question their usage."
Among the survey findings are that for institutions limited partnerships, including hedge funds, direct real estate, and private equity, are the most popular alternative vehicles for institutions.
Almost half of institutions surveyed allocate more than 10 percent of their portfolios to alternative investments, and nearly 20 percent allocate more than 25 percent of their portfolios to alternatives. Institutions generally expect their portfolio allocations to alternative investments, particularly hedge funds and private equity, to increase over the next five years. Close to a quarter (23 percent) of institutions expect to invest more than 25 percent of their portfolios into alternatives.
The survey shows that advisors are predominantly investing in alternative investments through liquid, regulated, and transparent vehicles like mutual funds and exchange-traded funds (ETFs), but they’re also employing other non-traditional investments with their clients, like oil and gas limited partnerships, non-traded Real Estate Investment Trusts (REITs), church bonds, and equipment leasing.
Among advisors who work with average individual investors, almost 80 percent use alternative investments with some clients. About 40 percent of advisors had more than half of their higher-net-worth clients in some alternative investments.
Morningstar and Barron’s conducted the Internet-based survey in October 2008; 252 institutions and 1,180 financial advisors participated. The complete survey results appear in the Nov. 10 issue of Barron’s.
London Hedge Fund Manager Alan Miller Makes a Comeback
According to a report in the Financial Times, London hedge fund manager Alan Miller has returned to the industry after a two-year absence by becoming a partner at SilverStreet Capital, a small London fund of hedge funds manager.
Miller, who co-founded New Star Asset Management with John Duffield in 2001, went on a sabbatical in 2006 following a bitter and highly public divorce battle. His absence from the UK fund manager was made permanent in February last year, the FT report said.
SilverStreet Capital is an asset management firm specialising in alternative investments, including hedge funds, private equity and property management.
Miller, who co-founded New Star Asset Management with John Duffield in 2001, went on a sabbatical in 2006 following a bitter and highly public divorce battle. His absence from the UK fund manager was made permanent in February last year, the FT report said.
SilverStreet Capital is an asset management firm specialising in alternative investments, including hedge funds, private equity and property management.
10 Nov 2008
OTC Hires European Hedge Fund Manager
OTC Valuations Limited, provider of independent derivatives valuation and risk reports for illiquid and hard-to-value securities, structured products, and exotic derivatives, has strengthened its team with the appointment of Dr. Paul Bergbusch to lead the organization’s technology function.
Paul comes to the OTC Val team from BlueCrest Capital Management, one of the largest hedge funds in Europe, he joins OTC Val as Chief Technology Officer, and will lead the effort to introduce the next generation of solutions further expanding the coverage for structured products and exotic derivatives under the OTC Val portfolio.
As an expert in financial derivatives and systems engineering, Dr. Bergbusch brings a wealth of data analysis, derivatives modeling and systems development experience for pricing and processing all derivatives products. He holds a Ph.D. in Experimental Particle Physics from the University of British Columbia.
"Before joining OTC Val I reviewed the market for independent derivatives valuations and realized that structured products and exotic derivatives are not being handled in a transparent and scalable way," Paul Bergbusch said, "The recent market turmoil and the push towards increasing regulation of the derivatives markets highlight the need for independent and transparent pricing."
Bob Sangha, COO, OTC Val, commented, "The fact that Paul joined OTC Val is also a great compliment to our service offering. His deep knowledge of data, models, and systems will enable OTC Val to deliver flexible and responsive solutions."
Paul comes to the OTC Val team from BlueCrest Capital Management, one of the largest hedge funds in Europe, he joins OTC Val as Chief Technology Officer, and will lead the effort to introduce the next generation of solutions further expanding the coverage for structured products and exotic derivatives under the OTC Val portfolio.
As an expert in financial derivatives and systems engineering, Dr. Bergbusch brings a wealth of data analysis, derivatives modeling and systems development experience for pricing and processing all derivatives products. He holds a Ph.D. in Experimental Particle Physics from the University of British Columbia.
"Before joining OTC Val I reviewed the market for independent derivatives valuations and realized that structured products and exotic derivatives are not being handled in a transparent and scalable way," Paul Bergbusch said, "The recent market turmoil and the push towards increasing regulation of the derivatives markets highlight the need for independent and transparent pricing."
Bob Sangha, COO, OTC Val, commented, "The fact that Paul joined OTC Val is also a great compliment to our service offering. His deep knowledge of data, models, and systems will enable OTC Val to deliver flexible and responsive solutions."
CNBC Arabiya Re-Launches With New Hedge Fund Programming Included
CNBC Arabiya is dedicating programming to arenas such as women in business, the environment, hedge funds and private equity, as the station moves to a more creative and interactive program schedule.
"We are experiencing an era of economic change for businesses, markets and funds in the Middle East." says Steven F. Hall, CEO, CNBC Arabiya. As the first show of its kind for CNBC Arabiya, a show called "Ma'ahonna" highlights and celebrates successful women within the GCC and Arab business arena. It includes interviews, profiles, insight and commentary through one-on-one interviews.
"Bil Akhdar" focuses on environmental issues impacting the business world, green industry, new sustainable initiatives and companies spearheading the green movement.
"Salat Al Bada'ael" reports the latest news on buyouts, venture capital, hedge funds and growth capital affecting the world of finance. The weekly show, Wednesdays at 8pm (KSA time), discusses the most pressing issues affecting the private equity marketplace.
There are also new shows on Shari'a-Compliant Finance and regulatory issues related to the various Securities & Commodities Authorities. Along with a new programming schedule, the CNBC Arabiya re-launch reveals a brand new studio layout with more capacity for live links. The re-designed CNBC Arabiya website will act as a genuine financial portal to cover stock markets, news alerts and breaking business news.
"CNBC Arabiya is the leader in Middle East business news and reaches over 50 million households through ArabSat & NileSat. We also encourage more viewer-led content via, our upcoming revamped website, and calls to our studios," says Mohammad Abdullah, CNBC Arabiya Executive Vice President.
"We are experiencing an era of economic change for businesses, markets and funds in the Middle East." says Steven F. Hall, CEO, CNBC Arabiya. As the first show of its kind for CNBC Arabiya, a show called "Ma'ahonna" highlights and celebrates successful women within the GCC and Arab business arena. It includes interviews, profiles, insight and commentary through one-on-one interviews.
"Bil Akhdar" focuses on environmental issues impacting the business world, green industry, new sustainable initiatives and companies spearheading the green movement.
"Salat Al Bada'ael" reports the latest news on buyouts, venture capital, hedge funds and growth capital affecting the world of finance. The weekly show, Wednesdays at 8pm (KSA time), discusses the most pressing issues affecting the private equity marketplace.
There are also new shows on Shari'a-Compliant Finance and regulatory issues related to the various Securities & Commodities Authorities. Along with a new programming schedule, the CNBC Arabiya re-launch reveals a brand new studio layout with more capacity for live links. The re-designed CNBC Arabiya website will act as a genuine financial portal to cover stock markets, news alerts and breaking business news.
"CNBC Arabiya is the leader in Middle East business news and reaches over 50 million households through ArabSat & NileSat. We also encourage more viewer-led content via, our upcoming revamped website, and calls to our studios," says Mohammad Abdullah, CNBC Arabiya Executive Vice President.
Hedge Fund Brotman Capital Shows Top Performance
Brotman Capital Partners LP, based in Boca Raton, Florida, has turned in the best performance Year to Date of a Market/Trend Timing Hedge Fund according to Barclays Hedge Fund Database.
Through October, 2008 the Fund is up over 14% net of fees. According to Dr. Randy Brotman, Chairman and CEO, the fund has remained in cash since the middle of August.
He states that “in our Trend Timing Fund, cash is an option, therefore a position.”
The Proprietary Trend Timing Model that Brotman Capital Management LLC employs dictates when the Fund should be long, short or in cash. “Be are comfortable to sit on the sidelines and wait for the trend-timing model to tell us when we will reenter the market, Brottman concluded.
The fund has a $100,000 minimum investment and charges a 2% management fee and a 20% incentive fee.
Through October, 2008 the Fund is up over 14% net of fees. According to Dr. Randy Brotman, Chairman and CEO, the fund has remained in cash since the middle of August.
He states that “in our Trend Timing Fund, cash is an option, therefore a position.”
The Proprietary Trend Timing Model that Brotman Capital Management LLC employs dictates when the Fund should be long, short or in cash. “Be are comfortable to sit on the sidelines and wait for the trend-timing model to tell us when we will reenter the market, Brottman concluded.
The fund has a $100,000 minimum investment and charges a 2% management fee and a 20% incentive fee.
6 Nov 2008
Salus Alpha offers a fund based on world's best hedge fund index to investors
Because of investors’ demand Salus Alpha decided to make the Salus Alpha Directional Market accessible as a fund. This way Salus Alpha continues to launch tracker funds for all hedge fund indices launched by Alternative-Index Ltd.
The Directional Markets Index (DMX) convinced investors this year with outstanding +53% YTD performance and above-average performance in the last years, the DMX
contrasts clearly with other Hedge Fund Indices.
Investors are able to achieve profits even in falling markets because of the widening of the product range Salus Alpha. It responds to investors’ needs in the current volatile market environment and offers a lager selection of funds with no correlation to bonds or equities.
The Salus Alpha Directional Markets employs directional trend following strategies in multiple time frames and markets. The funds objective is to achieve low to negative correlation to traditional longonly investments such as bonds or equities. The fund also tracks the Vienna Stock Exchange listed DMX.
Since inception of the calculation the DMX displays a performance of approximately 28.40% p.a. with a volatility of 17.88% p.a.
The subscription period for the Salus Alpha Directional Markets is from 5th November 2008 to 30th November 2008. During subscription period no sales fee will be charged.
The Directional Markets Index (DMX) convinced investors this year with outstanding +53% YTD performance and above-average performance in the last years, the DMX
contrasts clearly with other Hedge Fund Indices.
Investors are able to achieve profits even in falling markets because of the widening of the product range Salus Alpha. It responds to investors’ needs in the current volatile market environment and offers a lager selection of funds with no correlation to bonds or equities.
The Salus Alpha Directional Markets employs directional trend following strategies in multiple time frames and markets. The funds objective is to achieve low to negative correlation to traditional longonly investments such as bonds or equities. The fund also tracks the Vienna Stock Exchange listed DMX.
Since inception of the calculation the DMX displays a performance of approximately 28.40% p.a. with a volatility of 17.88% p.a.
The subscription period for the Salus Alpha Directional Markets is from 5th November 2008 to 30th November 2008. During subscription period no sales fee will be charged.
BIO Congratulates President-Elect Obama on His Presidential Election Victory
The following statement was issued by Biotechnology Industry Organization (BIO) President and CEO Jim Greenwood following the U.S. elections:
"On behalf of the more than 1,200 members of the Biotechnology Industry Organization, I offer our congratulations to Senator Barack Obama on his election victory. We also offer our congratulations to the newly elected and returning members of Congress, governors and other elected officials across the United States.
"From health care to energy to climate change to environmental sustainability, President-elect Obama will enter office facing a daunting array of complex challenges threatening the well-being of our nation and the environmental health of our planet.
"Biotechnology is uniquely suited to help provide answers to these challenges. Biotechnology provides hope for millions of people suffering from debilitating diseases like cancer, H.I.V.-AIDS, Parkinson's and diabetes. By reducing the incidence of disease, we can dramatically reduce health care costs and help spur economic growth. Biotechnology provides the key to sustainable, renewable alternative fuels that increase our nation's energy security. And we develop crops that produce more food per acre while requiring less plowing, reducing fuel use, carbon dioxide emissions, and overall environmental impact.
"Biotechnology is one of the most promising sectors of America's burgeoning innovation economy. To continue our nation's global leadership in innovation and continue to fulfill the promise of biotechnology, we will work with President-elect Obama and the new Congress to ensure that we have the proper public policies that promote and facilitate continued innovation.
"We must maintain strong protections for intellectual property – the key to an innovation economy – while enhancing patent quality and the objectivity, predictability, and transparency of the patent system. We must increase resources for the federal Food and Drug Administration to enable the agency to keep pace with rapidly evolving biomedical science and make sound regulatory decisions in a timely and efficient manner. We must provide the tax and investment incentives that promote continued biotech innovation and help accelerate the commercialization of advanced biofuels technologies. And we must ensure the National Institutes of Health have the funding needed to sustain the public-private collaboration that is transforming biomedical discoveries into innovative treatments for patients. At the same time, we need the proper policies and incentives at the state and local level to help grow and nurture biotechnology research and product development to ensure America remains the world leader in biotechnology innovation.
"We look forward to working with President-elect Obama, the new Congress and public officials at all levels of government to achieve these goals and continue to build our nation's innovation economy. Together, we can implement the public policies necessary to help heal, fuel, feed and clean our nation.”
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
"On behalf of the more than 1,200 members of the Biotechnology Industry Organization, I offer our congratulations to Senator Barack Obama on his election victory. We also offer our congratulations to the newly elected and returning members of Congress, governors and other elected officials across the United States.
"From health care to energy to climate change to environmental sustainability, President-elect Obama will enter office facing a daunting array of complex challenges threatening the well-being of our nation and the environmental health of our planet.
"Biotechnology is uniquely suited to help provide answers to these challenges. Biotechnology provides hope for millions of people suffering from debilitating diseases like cancer, H.I.V.-AIDS, Parkinson's and diabetes. By reducing the incidence of disease, we can dramatically reduce health care costs and help spur economic growth. Biotechnology provides the key to sustainable, renewable alternative fuels that increase our nation's energy security. And we develop crops that produce more food per acre while requiring less plowing, reducing fuel use, carbon dioxide emissions, and overall environmental impact.
"Biotechnology is one of the most promising sectors of America's burgeoning innovation economy. To continue our nation's global leadership in innovation and continue to fulfill the promise of biotechnology, we will work with President-elect Obama and the new Congress to ensure that we have the proper public policies that promote and facilitate continued innovation.
"We must maintain strong protections for intellectual property – the key to an innovation economy – while enhancing patent quality and the objectivity, predictability, and transparency of the patent system. We must increase resources for the federal Food and Drug Administration to enable the agency to keep pace with rapidly evolving biomedical science and make sound regulatory decisions in a timely and efficient manner. We must provide the tax and investment incentives that promote continued biotech innovation and help accelerate the commercialization of advanced biofuels technologies. And we must ensure the National Institutes of Health have the funding needed to sustain the public-private collaboration that is transforming biomedical discoveries into innovative treatments for patients. At the same time, we need the proper policies and incentives at the state and local level to help grow and nurture biotechnology research and product development to ensure America remains the world leader in biotechnology innovation.
"We look forward to working with President-elect Obama, the new Congress and public officials at all levels of government to achieve these goals and continue to build our nation's innovation economy. Together, we can implement the public policies necessary to help heal, fuel, feed and clean our nation.”
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
5 Nov 2008
Former Citigroup Manager Joins RFA
Hedge fund IT provider, Richard Fleischman & Associates, announced that Colin Moe has joined the firm as account manager. The appointment furthers RFA's unprecedented growth and commitment to serve its client base of 400-plus alternative asset firms.
Increased demand for flexible technology solutions by RFA clients is being driven by turbulent market conditions and the need to stay nimble with IT infrastructure for expansion or contraction in the immediate future.
In this role, Colin will work with clients to assure optimized service levels and performance outcomes. As a focal point of contact, he will orchestrate the deep bench of resource available to RFA clients ensuring client satisfaction.
“Colin is an accomplished and respected industry professional with outstanding credentials and extensive prime brokerage expertise that our clients will immediately identify with,” said Don Previti, director of business development at RFA. “His important role as Strategic Account Manager will further reinforce RFA’s position as the vendor of choice for firms in the alternative asset space."
With more than ten years of experience, Colin joins RFA following long tenures in account management with Citigroup Prime and Bear Stearns Prime. He has a wide range of account experience, having worked in depth with hedge funds of differing trading strategies, investment styles and asset sizes, ranging from start-ups to multi-billion-dollar funds. His professional specializations encompass trading facilitation, technologies, implementation and training, and asset financing.
Established in 1990 and headquartered in New York, NY, Richard Fleischman & Associates is a trusted technology advisor to over 400+ hedge funds, private equity funds and fund of funds globally, offering both turnkey IT solutions and on-site and remote monitoring staffed 24/7/365.
Increased demand for flexible technology solutions by RFA clients is being driven by turbulent market conditions and the need to stay nimble with IT infrastructure for expansion or contraction in the immediate future.
In this role, Colin will work with clients to assure optimized service levels and performance outcomes. As a focal point of contact, he will orchestrate the deep bench of resource available to RFA clients ensuring client satisfaction.
“Colin is an accomplished and respected industry professional with outstanding credentials and extensive prime brokerage expertise that our clients will immediately identify with,” said Don Previti, director of business development at RFA. “His important role as Strategic Account Manager will further reinforce RFA’s position as the vendor of choice for firms in the alternative asset space."
With more than ten years of experience, Colin joins RFA following long tenures in account management with Citigroup Prime and Bear Stearns Prime. He has a wide range of account experience, having worked in depth with hedge funds of differing trading strategies, investment styles and asset sizes, ranging from start-ups to multi-billion-dollar funds. His professional specializations encompass trading facilitation, technologies, implementation and training, and asset financing.
Established in 1990 and headquartered in New York, NY, Richard Fleischman & Associates is a trusted technology advisor to over 400+ hedge funds, private equity funds and fund of funds globally, offering both turnkey IT solutions and on-site and remote monitoring staffed 24/7/365.
3 Nov 2008
Man's Investment Research Laboratory at Oxford Expands
A pioneering collaboration that brings together the best of the academic and finance worlds has been such a success that the venture has outgrown its premises, just a year after its establishment.
Man Group plc, one of the world's largest alternative investment companies, founded the Man Research Laboratory ("MRL"), in Oxford in September 2007. The role of MRL is to undertake commercial research projects for the various quantitative groups within Man, and in particular, for its wholly owned subsidiary fund manager AHL. Although quantitative techniques are widely used throughout Man, it is within AHL that they have been used extraordinarily successfully for more than twenty years.
The laboratory was established at the same time as the Oxford-Man Institute of Quantitative Finance ("OMI"), which is part of the University of Oxford. Man provides the principal funding (an initial commitment of GBP 13.75 million - $21.9 million) for the institute, which shares common facilities with the laboratory.
"The partnership between Man and the University of Oxford is unique," said Dr Anthony Ledford, a senior executive at AHL and Research Director of MRL. "While other hedge fund managers have opened their own, private research centres, none has done so in partnership with the University of Oxford itself."
"The aim for both the University and Man is to create a stimulating environment of research and innovation, where ideas flourish," Dr Ledford continues. "Practitioners from a wide spectrum of disciplines can bring their skills into collaboration, and learn from each other."
Staff numbers are expected to double over the coming year. OMI, which brings together academics from a wide spectrum of Oxford University departments, already has fourteen faculty members, another fourteen associate members and four permanent academic staff - three research fellows and the institute's Director - along with twelve higher-degree students.
"The collaboration has been a great success", Dr Ledford added. "It has exceeded the expectations of both the University and Man. Planned staffing levels in both the laboratory and the institute were met ahead of schedule, and the number of applications for positions has necessitated a search for larger premises."
Although the institute and laboratory are independent of each other and follow different research programmes, there is significant interaction between them. This has benefited both parties, and OMI is attracting significant international attention. In its first year, as well as a series of over one hundred seminars and presentations, it has hosted a symposium and two conferences - one of its guest speakers being a Nobel Prize winner.
MRL has already made significant commercial contributions to Man and AHL, which specialises in systematic automated trading. A new trading model - first conceived at the laboratory - which operates on high frequency data is now actively trading the global markets and providing new sources of enhanced investment opportunities. Another benefit is the magnetic effect the laboratory is having in attracting the next generation of top talent into Man from around the world.
Dr Ledford added: "The interaction between our Research Lab and the Institute has put us at the cutting edge in our field. Looking at what we've already achieved, we're really excited about the prospects for the future."
Man Group plc, one of the world's largest alternative investment companies, founded the Man Research Laboratory ("MRL"), in Oxford in September 2007. The role of MRL is to undertake commercial research projects for the various quantitative groups within Man, and in particular, for its wholly owned subsidiary fund manager AHL. Although quantitative techniques are widely used throughout Man, it is within AHL that they have been used extraordinarily successfully for more than twenty years.
The laboratory was established at the same time as the Oxford-Man Institute of Quantitative Finance ("OMI"), which is part of the University of Oxford. Man provides the principal funding (an initial commitment of GBP 13.75 million - $21.9 million) for the institute, which shares common facilities with the laboratory.
"The partnership between Man and the University of Oxford is unique," said Dr Anthony Ledford, a senior executive at AHL and Research Director of MRL. "While other hedge fund managers have opened their own, private research centres, none has done so in partnership with the University of Oxford itself."
"The aim for both the University and Man is to create a stimulating environment of research and innovation, where ideas flourish," Dr Ledford continues. "Practitioners from a wide spectrum of disciplines can bring their skills into collaboration, and learn from each other."
Staff numbers are expected to double over the coming year. OMI, which brings together academics from a wide spectrum of Oxford University departments, already has fourteen faculty members, another fourteen associate members and four permanent academic staff - three research fellows and the institute's Director - along with twelve higher-degree students.
"The collaboration has been a great success", Dr Ledford added. "It has exceeded the expectations of both the University and Man. Planned staffing levels in both the laboratory and the institute were met ahead of schedule, and the number of applications for positions has necessitated a search for larger premises."
Although the institute and laboratory are independent of each other and follow different research programmes, there is significant interaction between them. This has benefited both parties, and OMI is attracting significant international attention. In its first year, as well as a series of over one hundred seminars and presentations, it has hosted a symposium and two conferences - one of its guest speakers being a Nobel Prize winner.
MRL has already made significant commercial contributions to Man and AHL, which specialises in systematic automated trading. A new trading model - first conceived at the laboratory - which operates on high frequency data is now actively trading the global markets and providing new sources of enhanced investment opportunities. Another benefit is the magnetic effect the laboratory is having in attracting the next generation of top talent into Man from around the world.
Dr Ledford added: "The interaction between our Research Lab and the Institute has put us at the cutting edge in our field. Looking at what we've already achieved, we're really excited about the prospects for the future."
Hedge Fund Pentwater Suspends Redemptions
In a letter to investors, Hedge Fund manager Pentwater Capital announced that due to a number of unexpected redemption notices for year-end they have suspended redemptions and withdrawals, effective immediately.
"The entire hedge fund industry is bracing for large redemptions at year-end so as not to become forced sellers in the midst of a severe market crisis," says the Pentwater letter, "In turn, this has put additional pressure on hedge fund investors to find liquidity wherever they can, because they have to fund their own potential redemptions."
"If the Fund were to meet the year-end redemption requests we have received, the Fund would be forced to sell more of its investments into one of the worst markets since the great depression."
The fund has instead opted to create two new classes that have modified liquidity, fee and expense provisions as compared with the current classes. Investors will have the choice to transfer all or part of their investment into one or both of the new classes or remain in the existing classes.
"We will allow investors that wish to invest new capital to do so in one of these new classes and until further notice allow them to retain the benefit of their existing high water mark on any new investment. Further, investors that have already submitted a redemption notice will have a one-time option to rescind that notice, reduce the size of their redemption request, and/or choose to participate in one of our new classes."
Pentwater was not immediately available for comment.
"The entire hedge fund industry is bracing for large redemptions at year-end so as not to become forced sellers in the midst of a severe market crisis," says the Pentwater letter, "In turn, this has put additional pressure on hedge fund investors to find liquidity wherever they can, because they have to fund their own potential redemptions."
"If the Fund were to meet the year-end redemption requests we have received, the Fund would be forced to sell more of its investments into one of the worst markets since the great depression."
The fund has instead opted to create two new classes that have modified liquidity, fee and expense provisions as compared with the current classes. Investors will have the choice to transfer all or part of their investment into one or both of the new classes or remain in the existing classes.
"We will allow investors that wish to invest new capital to do so in one of these new classes and until further notice allow them to retain the benefit of their existing high water mark on any new investment. Further, investors that have already submitted a redemption notice will have a one-time option to rescind that notice, reduce the size of their redemption request, and/or choose to participate in one of our new classes."
Pentwater was not immediately available for comment.
The Central Bank of Bahrain Joins Hedge Fund Summit
West Palm Beach (HedgeCo.net) - The Central Bank of Bahrain will be participating in the Hedge Funds Review, Middle East Summit in Bahrain on November 11-12, 2008.
"As the funds industry continues to gather pace in the global arena, the CBB is determined to maintain its regulatory precedence in setting up the necessary initiatives to enable this development," said Abdul Rahman Al Baker, executive director, Financial Institutions Supervision, at the CBB who will be presenting an overview of the Hedge Funds Market and regulation in Bahrain on the first day of the event.
The two-day summit organised by Incisive Media will be addressed by Shaikh Ahmed bin Mohammed Al Khalifa, Minister of Finance and Tarek Sakka, CEO of Ajeej Capital.
This will be the second time the event will be held in Bahrain. More than 250 major investors from across the region are likely to attend the summit, along side leading fund managers from Mena, Europe and the US discussing innovative alternative investment strategies.
The sessions will highlight opinions from expert investment managers, and views from academics on the global credit crisis.
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!
"As the funds industry continues to gather pace in the global arena, the CBB is determined to maintain its regulatory precedence in setting up the necessary initiatives to enable this development," said Abdul Rahman Al Baker, executive director, Financial Institutions Supervision, at the CBB who will be presenting an overview of the Hedge Funds Market and regulation in Bahrain on the first day of the event.The two-day summit organised by Incisive Media will be addressed by Shaikh Ahmed bin Mohammed Al Khalifa, Minister of Finance and Tarek Sakka, CEO of Ajeej Capital.
This will be the second time the event will be held in Bahrain. More than 250 major investors from across the region are likely to attend the summit, along side leading fund managers from Mena, Europe and the US discussing innovative alternative investment strategies.
The sessions will highlight opinions from expert investment managers, and views from academics on the global credit crisis.
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!
Polygon Concedes to British Energy, Winds Down Flagship Hedge Fund
Alternative investor, Polygon Investment Partners LLP has agreed not to further oppose the restructuring of the company by British Energy and other shareholders, in exchange the shareholders and British Energy have agreed to stop all outstanding legal actions against Polygon.
In the circumstances, Polygon believes that there is no commercial logic in proceeding with the EGM or supporting the proposed resolutions.
Polygon has also frozen redemptions on their $4bn flagship multi-strategy fund, Global Opportunities, while it unwinds the fund and returns money to investors.
Polygon Investment Partners LLP ("Polygon") is a global private investment firm based in London and New York, investing in a wide range of publicly traded securities. The firm currently has over $1.35 billion under management.
In the circumstances, Polygon believes that there is no commercial logic in proceeding with the EGM or supporting the proposed resolutions.
Polygon has also frozen redemptions on their $4bn flagship multi-strategy fund, Global Opportunities, while it unwinds the fund and returns money to investors.
Polygon Investment Partners LLP ("Polygon") is a global private investment firm based in London and New York, investing in a wide range of publicly traded securities. The firm currently has over $1.35 billion under management.
30 Oct 2008
Emissions Fund Pure Capital Peforms Well
In this time of extreme market moves and poor investment performance, specialist investment manager, Pure Capital, a “targeted non-correlation manager” has been performing nicely, according to sources.
“The bespoke portfolio solutions we have developed for our customers over the last 24 months have been bearing fruit” says founder and Chief Investment Officer Anthony Limbrick. Pure Capital targets European, Asian and Australasian fund of funds and institutional investors, giving clients full position level transparency and daily reporting.
Pure Capital is a quantitatively-driven investment management firm providing low or negatively correlated return profiles for discrete geographical or asset-class benchmarks. However the negative correlation is not at the expense of positive returns through the economic cyble, according to the investment manager.
Pure Capital has a research and advisory subsidiary, Pure Carbon Limited. The research team for the Pure Carbon Trading model comprises Anthony Limbrick (Chief Investment Officer), Daniel Butler, emissions trading expertise, Dr Siva Naguleswaran (Head of Research) and Hamish Limbrick, software developer.
Pure Capital is looking for strategic partners with which to launch their Pure Carbon strategy as both an alternative investment product, and an emission credit risk management solution.
The primary objective of the strategy is to provide positive access to both the upper and lower tails of carbon price distributions – and as part of a carbon portfolio – to both smooth, and increase an emission credit portfolio’s investment returns. The model is approximately 50% more short the market (than long the market) from a dynamic positioning stance.
Pure Capital has two business lines. The first, Pure Non-Correlation is a range of “off the shelf” negatively correlated returns-based products targeting specific geographical or asset class benchmarks e.g. Pure Energy, Pure Carbon. Pure Capital’s flagship Japan strategy has a greater then 2 year track record of 14% annualized - with a correlation co-efficient of -0.19 against Japanese equity index beta. Pure Capital’s product offerings are +25% year-to-date on average.
Pure Capital’s second business line is Pure Bespoke – customized negatively-correlated portfolio solutions addressing portfolio problems such as pervasive beta and gap risk. It is these products that are helping Pure Capital’s clients weather the current financial storm.
The fund performs best during strongly trending emissions prices and does not use leverage. The target rate of return is 15% per annum with a capacity to hold AUM to $50 mln, with the possibility of up to $1 bln if emissions markets continue to grow as anticipated.
Pure Capital is looking for partnerships with businesses that are already established in the distribution of emissions products and investors looking for access to alternative return profiles in a new asset class.
The core Pure Capital team has been together since April 2005. Limbrick is also a Director and Member of the Investment Committee of 36 South Investment Managers, a volatility and tail risk manager, and Chairman of the New Zealand Absolute Return Association. He has been working with Dr Siva Naguleswaran since May 1999.
“The bespoke portfolio solutions we have developed for our customers over the last 24 months have been bearing fruit” says founder and Chief Investment Officer Anthony Limbrick. Pure Capital targets European, Asian and Australasian fund of funds and institutional investors, giving clients full position level transparency and daily reporting.
Pure Capital is a quantitatively-driven investment management firm providing low or negatively correlated return profiles for discrete geographical or asset-class benchmarks. However the negative correlation is not at the expense of positive returns through the economic cyble, according to the investment manager.
Pure Capital has a research and advisory subsidiary, Pure Carbon Limited. The research team for the Pure Carbon Trading model comprises Anthony Limbrick (Chief Investment Officer), Daniel Butler, emissions trading expertise, Dr Siva Naguleswaran (Head of Research) and Hamish Limbrick, software developer.
Pure Capital is looking for strategic partners with which to launch their Pure Carbon strategy as both an alternative investment product, and an emission credit risk management solution.
The primary objective of the strategy is to provide positive access to both the upper and lower tails of carbon price distributions – and as part of a carbon portfolio – to both smooth, and increase an emission credit portfolio’s investment returns. The model is approximately 50% more short the market (than long the market) from a dynamic positioning stance.
Pure Capital has two business lines. The first, Pure Non-Correlation is a range of “off the shelf” negatively correlated returns-based products targeting specific geographical or asset class benchmarks e.g. Pure Energy, Pure Carbon. Pure Capital’s flagship Japan strategy has a greater then 2 year track record of 14% annualized - with a correlation co-efficient of -0.19 against Japanese equity index beta. Pure Capital’s product offerings are +25% year-to-date on average.
Pure Capital’s second business line is Pure Bespoke – customized negatively-correlated portfolio solutions addressing portfolio problems such as pervasive beta and gap risk. It is these products that are helping Pure Capital’s clients weather the current financial storm.
The fund performs best during strongly trending emissions prices and does not use leverage. The target rate of return is 15% per annum with a capacity to hold AUM to $50 mln, with the possibility of up to $1 bln if emissions markets continue to grow as anticipated.
Pure Capital is looking for partnerships with businesses that are already established in the distribution of emissions products and investors looking for access to alternative return profiles in a new asset class.
The core Pure Capital team has been together since April 2005. Limbrick is also a Director and Member of the Investment Committee of 36 South Investment Managers, a volatility and tail risk manager, and Chairman of the New Zealand Absolute Return Association. He has been working with Dr Siva Naguleswaran since May 1999.
Vantage Changes Name And Hires Investment Specialist
Vantage Reporting said it has changed its name to Vantage Software, reflecting the company’s focus on delivering products to private investment firms with modular software designed to easily enhance their existing systems.
“Since founding Vantage, we have worked with world-class clients to continually develop a solid set of core products that deliver the robust functionality of comparable packaged solutions,” said Vantage Software CEO Greg Woolf. “By virtue of our innovative software design, we also give clients the option of customizing our solutions to meet their unique operational requirements.”
To support Vantage’s continued global growth, David Sayles has also joined Vantage as director of sales and client service. Sayles will be responsible for the development and implementation of sales, account management and business development efforts. Sayles has more than 18 years of experience developing, bringing to market and managing financial technology solutions, particularly for the private investment industry. He is a frequent speaker at conferences and industry events.
“David brings a wealth of experience in the financial and technology industries, including valuable insight into the unique operational environments of private investment firms,” Woolf added. “Given the company’s continued global growth, we are pleased to have such a seasoned sales and client service veteran help us continue to expand our market position and quality of service to our clients.”
Vantage has offices in Boston and New York and has four core software products – Vantage Deal Manager™, Vantage Performance™, Vantage Funds-of-Funds™ and Vantage Investor™. Leading private investment firms that have embraced Vantage’s unique approach manage raised more than $250 billion dollars in capital to date.
“Since founding Vantage, we have worked with world-class clients to continually develop a solid set of core products that deliver the robust functionality of comparable packaged solutions,” said Vantage Software CEO Greg Woolf. “By virtue of our innovative software design, we also give clients the option of customizing our solutions to meet their unique operational requirements.”
To support Vantage’s continued global growth, David Sayles has also joined Vantage as director of sales and client service. Sayles will be responsible for the development and implementation of sales, account management and business development efforts. Sayles has more than 18 years of experience developing, bringing to market and managing financial technology solutions, particularly for the private investment industry. He is a frequent speaker at conferences and industry events.
“David brings a wealth of experience in the financial and technology industries, including valuable insight into the unique operational environments of private investment firms,” Woolf added. “Given the company’s continued global growth, we are pleased to have such a seasoned sales and client service veteran help us continue to expand our market position and quality of service to our clients.”
Vantage has offices in Boston and New York and has four core software products – Vantage Deal Manager™, Vantage Performance™, Vantage Funds-of-Funds™ and Vantage Investor™. Leading private investment firms that have embraced Vantage’s unique approach manage raised more than $250 billion dollars in capital to date.
Point Nine expands into Middle East
Hedge fund technology service, Point Nine, has announced the opening of their new office in Limassol, Cyprus. This is the second office opening for Point Nine this year, which follows the recent opening of Point Nine’s facilities in New Delhi, India.
The Cyprus office is the second to be launched by newly appointed CEO of Point Nine, Yannis Matsis. Matsis’ 15 years experience in building and managing global debt capital market teams for Mizuho Bank and ING has been instrumental in the direction and supporting technology of Point Nine’s Middle and Back Office Services offering.
"The current financial crisis and the associated reduction in revenues for fund managers has put a bigger emphasis on cost reduction. Outsourcing of the middle and back office operations to reliable service providers like Point Nine is an ideal way for fund managers to increase their operating efficiencies and reduce their operational risks and cost base”, says Yannis Matsis, CEO Point Nine. “We are expanding our geographical coverage to provide the highest quality service to our clients that we can be proud of."
The recent expansion from its London headquarters into the Middle East and Asia means a more personalised service for customers and ensures that all trade capturing/management, operations and reporting can now be handled in the relevant time zones required.
“When choosing to outsource the middle and back office operations, a customer must feel like the provider is an extension of their own team”, says Pavlos Christoforou, Head of Technology. “This expansion allows us to be closer to our customers and provide them with the best service within the industry.”
Point Nine’s technology interfaces with a number of prime brokers and fund administrators and provides accurate and secure transactions, which are processed by experienced staff across three locations in Europe, Middle East and Asia. Customers include Tier-1 banks, large Asset Managers and cutting-edge hedge funds.
The Cyprus office is the second to be launched by newly appointed CEO of Point Nine, Yannis Matsis. Matsis’ 15 years experience in building and managing global debt capital market teams for Mizuho Bank and ING has been instrumental in the direction and supporting technology of Point Nine’s Middle and Back Office Services offering.
"The current financial crisis and the associated reduction in revenues for fund managers has put a bigger emphasis on cost reduction. Outsourcing of the middle and back office operations to reliable service providers like Point Nine is an ideal way for fund managers to increase their operating efficiencies and reduce their operational risks and cost base”, says Yannis Matsis, CEO Point Nine. “We are expanding our geographical coverage to provide the highest quality service to our clients that we can be proud of."
The recent expansion from its London headquarters into the Middle East and Asia means a more personalised service for customers and ensures that all trade capturing/management, operations and reporting can now be handled in the relevant time zones required.
“When choosing to outsource the middle and back office operations, a customer must feel like the provider is an extension of their own team”, says Pavlos Christoforou, Head of Technology. “This expansion allows us to be closer to our customers and provide them with the best service within the industry.”
Point Nine’s technology interfaces with a number of prime brokers and fund administrators and provides accurate and secure transactions, which are processed by experienced staff across three locations in Europe, Middle East and Asia. Customers include Tier-1 banks, large Asset Managers and cutting-edge hedge funds.
29 Oct 2008
BNP Paribas Launches Hedge Fund Service Team
BNP Paribas has launched a global, transversal, multi-asset, hedge fund client service team. The team will be a single point of entry for Hedge Funds for all inquiry, according to BNP, leveraging the bank's capabilities and focusing on operational efficiencies.
The team is headed globally by John Polivko, based in New York and reporting locally to Jean-Patrick Kaiser, Deputy Chief Operating Officer, and globally to Bernard Gavgani, Equity and Commodity derivatives COO and Francois Freyeisen, Fixed Income COO.
Polivko recently joined the firm from Merrill Lynch where he was in charge of the client service organization for Prime Brokerage and more recently worked in financing sales. Prior to Merrill Lynch, Polivko also spent 7 years as a Managing Director at Bears Stearns in Prime Brokerage.
In addition, the appointments of regional managers reporting directly to John Polivko are Victoria Baker, Neil Spice and Jacqueline Man as regional head of hedge fund client service based in Hong Kong.
Talbot Stark, global head of hedge fund relationship management said, "Hedge Funds are a very important client base for BNP Paribas, following the acquisition of Bank of America's Prime Brokerage business as well as the growth of the hedge fund relationship managements team, the creation of this function is another step in better serving those clients."
The team is headed globally by John Polivko, based in New York and reporting locally to Jean-Patrick Kaiser, Deputy Chief Operating Officer, and globally to Bernard Gavgani, Equity and Commodity derivatives COO and Francois Freyeisen, Fixed Income COO.
Polivko recently joined the firm from Merrill Lynch where he was in charge of the client service organization for Prime Brokerage and more recently worked in financing sales. Prior to Merrill Lynch, Polivko also spent 7 years as a Managing Director at Bears Stearns in Prime Brokerage.
In addition, the appointments of regional managers reporting directly to John Polivko are Victoria Baker, Neil Spice and Jacqueline Man as regional head of hedge fund client service based in Hong Kong.
Talbot Stark, global head of hedge fund relationship management said, "Hedge Funds are a very important client base for BNP Paribas, following the acquisition of Bank of America's Prime Brokerage business as well as the growth of the hedge fund relationship managements team, the creation of this function is another step in better serving those clients."
Ansher Frontier Funds Up in October
Alternative investor Ansher Holding Limited, which is focused on investments in Central Asia and the Caucasus, has reported their equity long/short hedge fund is up 13% YTD.
“Central Asia and the Caucasus region have emerged as one of the world’s fastest growing regions and has shown notable development potential,” says Pascal Buschor, Executive Director and member of the investment committee, “The region is rich in oil, gas, cotton and gold with reasonable infrastructure and human capital and a strategic location between Asia and Europe. The diversified economies of most Central Asian countries show also very attractive valuations in the banking, insurance, food processing and telecommunication sectors.”
Anshers 2 hedge funds have a rather narrow regional focus to invest across Central Asian and the Caucasus' equity and property markets, the Ansher Regional Property Fund (ARPF) and Ansher Regional Equity Fund (AREF). The funds have shown strong performance since launch, in 2006 showing a positive return of +34.2%, 2007: +33.1%, 2008: +13%, for the equity fund, and +8.6%, for the newly launched real estate fund.
With a low correlation to main markets and strong links in the area, including political, the investment objective of AREF is to take advantage of high yield and relatively undervalued assets in fast-growing industries such as oil & gas, mining, energy, financial institutions, and consumer goods sectors in order to achieve long term capital appreciation primarily through an actively managed portfolio of securities and assets in the Region.
Endowed with world class natural resources, the Region is experiencing strong economic growth and attracting billions of dollars in foreign investments, Ansher says in its monthly report, expecting also to benefit from great deal of spill over effect of oil & gas and mining industries on other sectors of the economy.
Ansher Fund Management is the asset management arm of Ansher Holding Limited. Founded 1998, the company has managed number of successful funds dedicated to emerging markets of the CIS as well as Turkey and Mongolia. Ansher FM has managed three different funds with consolidated AUM of $80 million with mandates of investing in the equity markets, property markets and private equity opportunities.
This exceptional performance is attributable to being the only regional focused family of funds with physical presence of the team in the region Tashkent (Uzbekistan), Almaty (Kazakhstan), Dubai (UAE), Zurich (Switzerland). The team of Ansher FM consists of 10 investment professionals as well as 4 back office employees to cover the region.
Domiciled in the Cayman Islands, Ansher has a 2% management fee, a 20% performance fee with a 8% hurdle rate and a minimum investment of $100.000.
“Central Asia and the Caucasus region have emerged as one of the world’s fastest growing regions and has shown notable development potential,” says Pascal Buschor, Executive Director and member of the investment committee, “The region is rich in oil, gas, cotton and gold with reasonable infrastructure and human capital and a strategic location between Asia and Europe. The diversified economies of most Central Asian countries show also very attractive valuations in the banking, insurance, food processing and telecommunication sectors.”
Anshers 2 hedge funds have a rather narrow regional focus to invest across Central Asian and the Caucasus' equity and property markets, the Ansher Regional Property Fund (ARPF) and Ansher Regional Equity Fund (AREF). The funds have shown strong performance since launch, in 2006 showing a positive return of +34.2%, 2007: +33.1%, 2008: +13%, for the equity fund, and +8.6%, for the newly launched real estate fund.
With a low correlation to main markets and strong links in the area, including political, the investment objective of AREF is to take advantage of high yield and relatively undervalued assets in fast-growing industries such as oil & gas, mining, energy, financial institutions, and consumer goods sectors in order to achieve long term capital appreciation primarily through an actively managed portfolio of securities and assets in the Region.
Endowed with world class natural resources, the Region is experiencing strong economic growth and attracting billions of dollars in foreign investments, Ansher says in its monthly report, expecting also to benefit from great deal of spill over effect of oil & gas and mining industries on other sectors of the economy.
Ansher Fund Management is the asset management arm of Ansher Holding Limited. Founded 1998, the company has managed number of successful funds dedicated to emerging markets of the CIS as well as Turkey and Mongolia. Ansher FM has managed three different funds with consolidated AUM of $80 million with mandates of investing in the equity markets, property markets and private equity opportunities.
This exceptional performance is attributable to being the only regional focused family of funds with physical presence of the team in the region Tashkent (Uzbekistan), Almaty (Kazakhstan), Dubai (UAE), Zurich (Switzerland). The team of Ansher FM consists of 10 investment professionals as well as 4 back office employees to cover the region.
Domiciled in the Cayman Islands, Ansher has a 2% management fee, a 20% performance fee with a 8% hurdle rate and a minimum investment of $100.000.
28 Oct 2008
New York Hedge Fund Managers On Biopharmaceutical Board of Directors
N30 Pharma, a biopharmaceutical company focused on the discovery, development, and
commercialization of drugs that regulate nitric oxide bioavailability, announced that it has completed a financing and expanded its Board of Directors.
Joining the company's Board of Directors are hedge fund managers Arnold Snider and Marc Elia. Snider will assume the role of Chairman of the Board.
Snider previously founded and managed Deerfield Management, a New York-based multi-billion dollar hedge fund focused on healthcare and life-sciences companies. Snider is also on the Board of Directors of the Christopher and Dana Reeve Foundation and is a trustee of Davidson College.
Elia co-founded N30 while at Tiger Management, a New York hedge fund, and has had previous roles in life sciences corporate strategy at Chiron Corporation and L.E.K. Consulting.
"I am pleased with our investors' ongoing commitment to the major clinical potential of N30 Pharma, particularly in difficult economic times," commented Charles Scoggin,
M.D., President and CEO of N30, " In addition, I welcome Arnie and Marc to their roles on the Board. Arnie is widely regarded as one of the premier healthcare investors in the world. Marc brings a multitude of talents and intellect to the N30 Board. I look forward to drawing on their expertise and long experience with biopharmaceutical companies as we continue to move N30 forward."
N30 will use proceeds from this financing to advance its clinical program in Cystic Fibrosis and expand its discovery and preclinical research in the area of small molecule drugs that modulate nitric oxide bioavailability in cardiopulmonary diseases. The financing is the company's second since its formation in 2007.
commercialization of drugs that regulate nitric oxide bioavailability, announced that it has completed a financing and expanded its Board of Directors.
Joining the company's Board of Directors are hedge fund managers Arnold Snider and Marc Elia. Snider will assume the role of Chairman of the Board.
Snider previously founded and managed Deerfield Management, a New York-based multi-billion dollar hedge fund focused on healthcare and life-sciences companies. Snider is also on the Board of Directors of the Christopher and Dana Reeve Foundation and is a trustee of Davidson College.
Elia co-founded N30 while at Tiger Management, a New York hedge fund, and has had previous roles in life sciences corporate strategy at Chiron Corporation and L.E.K. Consulting.
"I am pleased with our investors' ongoing commitment to the major clinical potential of N30 Pharma, particularly in difficult economic times," commented Charles Scoggin,M.D., President and CEO of N30, " In addition, I welcome Arnie and Marc to their roles on the Board. Arnie is widely regarded as one of the premier healthcare investors in the world. Marc brings a multitude of talents and intellect to the N30 Board. I look forward to drawing on their expertise and long experience with biopharmaceutical companies as we continue to move N30 forward."
N30 will use proceeds from this financing to advance its clinical program in Cystic Fibrosis and expand its discovery and preclinical research in the area of small molecule drugs that modulate nitric oxide bioavailability in cardiopulmonary diseases. The financing is the company's second since its formation in 2007.
27 Oct 2008
Wall Street Survivor - Virtual Stock Portfolios
A new online game has been brought to my attention, it's called Wall Street Survivor, where novice investors can contemplate their present and future investment plans without gambling with their hard earned savings.As volatility in the world’s financial markets have even the most hardened Wall Street warriors at a loss, the game lets potential investors test the waters with a simulated, risk-free platform designed to help individuals take control of their financial futures.
Utilizing the web’s sophisticated trading simulation engine, Wall Street Survivor enables users to build and track virtual stock portfolios bought with pre-set fictional (play money) trading budgets, all while executing a full range of trading actions. The Wall Street Survivor features the world’s only simulator where trades and portfolios are executed and updated in real time.
The platform also possess robust web 2.0 social networking capabilities such as Facebook style message “Walls”, buddy lists and a community of traders to learn from and compete against. The competition aspect of the site lets users pit their portfolio against friends, family, peers and fellow students and the streaming leader-board allows budding financial wizards keep one on eye the market and one on the game.
Highlighting its educational benefits, the site’s proprietary technology platform is in use by over 200,000 students worldwide as part of the curriculum at 900 schools including Columbia, the University of Chicago , Yale, London School of Business, McGill University and others. The platform also maintains an evolving database of stock trading tips and articles on investment strategies.
“In this day and age people, now more than ever must take the time to properly prepare themselves prior to taking risks,” states Rory Olson, CEO of Stock-Trak Group.
UK Hedge Fund Managers Recieve AIMA's Latest Capital Adequacy Guidance
Global representative association for the hedge fund industry, the Alternative Investment Management Association (AIMA), has issued updated guidance to its members on how to implement an Internal Capital Adequacy Assessment Process.
"The hedge fund industry has embraced the capital adequacy debate proactively and the sophisticated risk management techniques undertaken by hedge funds make this framework possible," Andrew Baker, AIMA’s Deputy Chief Executive, said, "Hedge fund managers employ progressive business management techniques and we are fortunate to be able to draw on the expertise of leading advisers from the industry to guide our membership on how to most effectively implement this process."
AIMA’s ICAAP Guidance Note – originally published in July 2007 - has been revised to address issues that have been identified now that firms and the FSA have gained more practical experience of the ICAAP; and to include examples of the processes that have been implemented by firms to date.
The Guidance Note was produced by an AIMA-led ICAAP Working Group, consisting of industry experts from compliance advisory, auditing and law firms. Members of the group include: John Griffiths of MMS Regulatory Solutions; Stephen Burke of IMS Consulting Ltd; Uner Nabi of Deloitte and Touche LLP; Philip Niel of FIM Advisers LLP; Sarah Nowell of Ernst & Young LLP; Fiona Raistrick of BDO Stoy Hayward LLP; and Matthew Jones of the AIMA Regulatory and Tax Department.
"The hedge fund industry has embraced the capital adequacy debate proactively and the sophisticated risk management techniques undertaken by hedge funds make this framework possible," Andrew Baker, AIMA’s Deputy Chief Executive, said, "Hedge fund managers employ progressive business management techniques and we are fortunate to be able to draw on the expertise of leading advisers from the industry to guide our membership on how to most effectively implement this process."
AIMA’s ICAAP Guidance Note – originally published in July 2007 - has been revised to address issues that have been identified now that firms and the FSA have gained more practical experience of the ICAAP; and to include examples of the processes that have been implemented by firms to date.
The Guidance Note was produced by an AIMA-led ICAAP Working Group, consisting of industry experts from compliance advisory, auditing and law firms. Members of the group include: John Griffiths of MMS Regulatory Solutions; Stephen Burke of IMS Consulting Ltd; Uner Nabi of Deloitte and Touche LLP; Philip Niel of FIM Advisers LLP; Sarah Nowell of Ernst & Young LLP; Fiona Raistrick of BDO Stoy Hayward LLP; and Matthew Jones of the AIMA Regulatory and Tax Department.
Verizon Expands Despite Economic Conflict
Verizon Communications Inc. reported strong results in the third quarter 2008, reporting 59 cents in diluted earnings per share (EPS) in the third quarter 2008, compared with 44 cents per share in the third quarter 2007."Verizon again reported solid revenue, earnings and cash flow growth this quarter," said Chairman and CEO Ivan Seidenberg. "The strategic investments we made over the past few years continue to drive growth in wireless, enterprise, broadband and video.
"Although the capital markets and economy may present challenges, we will continue to execute on our business plan and invest for future growth," he said. "We increased the dividend 7 percent this quarter, reflecting confidence in continued growth opportunities. Verizon has a great set of assets and an employee team focused on creating value for our customers and shareholders."
Verizon had total revenues of $5.4 billion, or growth of 1.2 percent compared with last year's third quarter. This was Verizon Business' eighth consecutive quarter of year-over-year pro-forma revenue growth.
Verizon Business continued to expand its global network reach and capabilities, announcing during the quarter that the first phase of the Trans-Pacific Express submarine cable system directly connecting Mainland China, the U.S., South Korea and Taiwan is ready for service. The company also began a significant expansion of its operations in India, activating Private IP nodes in five major business centers following receipt of international and national long-distance licenses earlier this year.
New commercial customer agreements included CA Inc., First Data, H&R Block, Husqvarna and Kuwait Petroleum International Ltd. Verizon Business also signed new contracts with several U.S. government agencies.
24 Oct 2008
Iraqi Funds: "Business as Usual"
Iraq and the Babylon Fund sailed fairly unscathed through the panicky financial markets in September, according to CEO Robert Torkelund.
“Our strategy to focus on sticky money instead of any cheap hot money flow, has paid off so far,” says Torkelund, “Iraqi investments are not for the faint-hearted, of course. A financial crisis more or less, now and then, is business-as-usual for many of our experienced pre-frontier institutional investors. In fact, Babylon Fund's AUM is still on the rise - early this month reaching ATH - and no redemptions have been requested so far."
There was less to celebrate in absolute terms though, as the monthly return came in at a negative 5.9% m/m. (another -3.5% for mid-month Oct). The fund's losses in September were primarily a result of the bear sentiment. For example, Iraqi bonds lost heavily, with its USD-yields spiralling back into double-digit territory, as did all oil prospecting companies.
Inside Iraq, markets stayed mainly flat in September: Top 15 companies by Mcap, making up a full 70% of total Mcap, lost a few percentages on average. The diversification process from other Mid-Eastern investors, which was anticipated during the Dubai boom times already, seems instead to have started now instead.
The Babylon fund is a high risk $23.6 million investment fund with a $100.000 minimum investment. Managed by Godvig Capital and Björn Englund the fund has a 2% management fee.
“Our strategy to focus on sticky money instead of any cheap hot money flow, has paid off so far,” says Torkelund, “Iraqi investments are not for the faint-hearted, of course. A financial crisis more or less, now and then, is business-as-usual for many of our experienced pre-frontier institutional investors. In fact, Babylon Fund's AUM is still on the rise - early this month reaching ATH - and no redemptions have been requested so far."There was less to celebrate in absolute terms though, as the monthly return came in at a negative 5.9% m/m. (another -3.5% for mid-month Oct). The fund's losses in September were primarily a result of the bear sentiment. For example, Iraqi bonds lost heavily, with its USD-yields spiralling back into double-digit territory, as did all oil prospecting companies.
Inside Iraq, markets stayed mainly flat in September: Top 15 companies by Mcap, making up a full 70% of total Mcap, lost a few percentages on average. The diversification process from other Mid-Eastern investors, which was anticipated during the Dubai boom times already, seems instead to have started now instead.
The Babylon fund is a high risk $23.6 million investment fund with a $100.000 minimum investment. Managed by Godvig Capital and Björn Englund the fund has a 2% management fee.
23 Oct 2008
UAE Liquidity Moves by Government Positive for Banks - Fitch
Fitch Ratings has taken a positive view of the recent moves by the United Arab Emirates (UAE) government to boost liquidity in the banking system but notes that the operating environment has become more challenging.
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"The risks of a UAE bank suffering a capital markets-driven liquidity crisis are limited as none of the banks are reliant on these markets. Their funding bases are predominantly based on retail and corporate deposits, with the balance as inter-bank borrowings and some limited debt capital market issuance," says Robert Thursfield, Director in Fitch's Banks team.
"However, UAE banks face mounting challenges in the form of slower economic activity, a property market correction and negative valuation adjustments from continuing volatility in regional stock markets."
It is unlikely, Fitch says, to change the banks' Long-term Issuer Default Ratings as these are driven by expected support from the UAE authorities, although Individual ratings could come under pressure if the banks' ability to fund themselves deteriorates, leading to declining growth, profitability and the erosion of capital.
Fitch says the series of measures taken by the Central Bank of the UAE (CBUAE) and UAE Ministry of Finance (MOF) are likely to strengthen confidence in the bank sector.
The longer-term challenge faced by the banks is to develop other funding/capital sources so they can continue financing a significant pipeline of infrastructure projects.
A more immediate challenge for the banking sector is the likelihood of a negative impact from major corrections and continuing volatility in regional stock markets. The Dubai Financial Market was down about 44% YTD and the Abu Dhabi Securities Exchange down about 23% YTD as of 21 October 2008.
The Dubai property market has seen spectacular growth in recent years but there is increasing concern that a correction will occur in the short- to medium-term. Stress in the local interbank market is likely to have a negative impact on the availability of residential mortgages and funding for property developers, which would dampen demand as supply is forecast to increase.
The declining oil price will negatively impact business sentiment and domestic economic activity (Brent was priced around $67 a barrel on 21 October 2008). This could result in the postponement or cancellation of some major projects. However, Fitch estimates that Abu Dhabi would continue to run a budget surplus at a price as low as $31/bl.
Bank results for the year to end-September 2008 will be published soon and Fitch expects to see slower growth in loans and deposits, higher funding costs and negative investment portfolio mark to market valuations. Fitch will review the results and may comment further on the sector's performance.
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"The risks of a UAE bank suffering a capital markets-driven liquidity crisis are limited as none of the banks are reliant on these markets. Their funding bases are predominantly based on retail and corporate deposits, with the balance as inter-bank borrowings and some limited debt capital market issuance," says Robert Thursfield, Director in Fitch's Banks team. "However, UAE banks face mounting challenges in the form of slower economic activity, a property market correction and negative valuation adjustments from continuing volatility in regional stock markets."
It is unlikely, Fitch says, to change the banks' Long-term Issuer Default Ratings as these are driven by expected support from the UAE authorities, although Individual ratings could come under pressure if the banks' ability to fund themselves deteriorates, leading to declining growth, profitability and the erosion of capital.
Fitch says the series of measures taken by the Central Bank of the UAE (CBUAE) and UAE Ministry of Finance (MOF) are likely to strengthen confidence in the bank sector.
The longer-term challenge faced by the banks is to develop other funding/capital sources so they can continue financing a significant pipeline of infrastructure projects.
A more immediate challenge for the banking sector is the likelihood of a negative impact from major corrections and continuing volatility in regional stock markets. The Dubai Financial Market was down about 44% YTD and the Abu Dhabi Securities Exchange down about 23% YTD as of 21 October 2008.
The Dubai property market has seen spectacular growth in recent years but there is increasing concern that a correction will occur in the short- to medium-term. Stress in the local interbank market is likely to have a negative impact on the availability of residential mortgages and funding for property developers, which would dampen demand as supply is forecast to increase. The declining oil price will negatively impact business sentiment and domestic economic activity (Brent was priced around $67 a barrel on 21 October 2008). This could result in the postponement or cancellation of some major projects. However, Fitch estimates that Abu Dhabi would continue to run a budget surplus at a price as low as $31/bl.
Bank results for the year to end-September 2008 will be published soon and Fitch expects to see slower growth in loans and deposits, higher funding costs and negative investment portfolio mark to market valuations. Fitch will review the results and may comment further on the sector's performance.
22 Oct 2008
Investor Confidence Index Declines in October
State Street Global Markets, the investment research and trading arm of State Street Corporation, released the results of the State Street Investor Confidence Index for October 2008.
Confidence among North American investors fell particularly sharply from a revised level of 75.1 to 50.8. Elsewhere, the declines were less dramatic, with European confidence falling just 1.5 points to 79.6, and Asian confidence declining 0.6 points from 87.1 to 86.5.
“This month we saw a dramatic and unprecedented decline in investor confidence to a new record low, led by investors in North America,” commented Froot. “We saw broad and important reductions of risk across investor portfolios previously at times like the Asian Crisis in 1997 and the Russian-LTCM crisis in 1998. However, even the strong broad-based selling of risk we saw during those events appears small compared with the current outflows. The combination of financial crisis along with truly global macroeconomic risk of deep recession has been causing a complete re-evaluation of risk across a wide investment community centered on US institutional investors.”
Developed through State Street Global Markets’ research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Director Paul O’Connell, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors.
The index is based on financial theory that assigns precise meaning to changes in investor risk appetite, or the willingness of investors to allocate their portfolios to equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.
“When you remember that this measure of investor confidence is not a survey, but rather is based on the actual trades of institutional investors, the readings are particularly striking,” added O’Connell. “The period over which this reallocation was measured in investor portfolios, September 17 to October 15, saw the largest single reallocation away from risky assets that we have witnessed in the data since it first became available in 1994.”
The index is released globally at 10 a.m. Eastern time in Boston on the second to last Tuesday of each month. With $14 trillion in assets under custody and $1.7 trillion in assets under management at September 30, 2008, State Street operates in 26 countries and more than 100 geographic markets worldwide.
Confidence among North American investors fell particularly sharply from a revised level of 75.1 to 50.8. Elsewhere, the declines were less dramatic, with European confidence falling just 1.5 points to 79.6, and Asian confidence declining 0.6 points from 87.1 to 86.5.“This month we saw a dramatic and unprecedented decline in investor confidence to a new record low, led by investors in North America,” commented Froot. “We saw broad and important reductions of risk across investor portfolios previously at times like the Asian Crisis in 1997 and the Russian-LTCM crisis in 1998. However, even the strong broad-based selling of risk we saw during those events appears small compared with the current outflows. The combination of financial crisis along with truly global macroeconomic risk of deep recession has been causing a complete re-evaluation of risk across a wide investment community centered on US institutional investors.”
Developed through State Street Global Markets’ research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Director Paul O’Connell, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors.
The index is based on financial theory that assigns precise meaning to changes in investor risk appetite, or the willingness of investors to allocate their portfolios to equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.“When you remember that this measure of investor confidence is not a survey, but rather is based on the actual trades of institutional investors, the readings are particularly striking,” added O’Connell. “The period over which this reallocation was measured in investor portfolios, September 17 to October 15, saw the largest single reallocation away from risky assets that we have witnessed in the data since it first became available in 1994.”
The index is released globally at 10 a.m. Eastern time in Boston on the second to last Tuesday of each month. With $14 trillion in assets under custody and $1.7 trillion in assets under management at September 30, 2008, State Street operates in 26 countries and more than 100 geographic markets worldwide.
21 Oct 2008
Presidential Elections & US Investments
Amidst the recent turmoil in the global financial markets one of the most influential and highly contested Presidential elections is taking place in the United States on the 4th November. With these elections rapidly approaching, the Association of Investment Companies (AIC) has collated the views of some investment company managers with high exposure to the US.
In general, the managers believe that the elections will have an impact on their US investments and the recent crisis in global markets will influence the election result. Russell Cleveland, manager of Renaissance US Capital commented, "The US Presidential elections will have an impact on the US stock market across all sectors. It appears that Senator Obama will win the election and the Democrats will gain in both the House and Senate."
A new President will bring with them a new set of policies and managers seem optimistic about the future of the US and its long term investment opportunities.
Peter Dicks, Chairman of Private Equity Investor said: "Yes, I believe the election will have an impact in the sense that it will remove an administration which has largely become a lame duck and more importantly it will remove uncertainty. No doubt the first 100 days will be significant especially, in my opinion, if Obama gets in.
"In our field, which is venture capital, we think this is potentially one of the very best times to invest in this field, Why? Venture is an all cash investment in an all equity asset class without a dollar of debt. If debt features at all; it is at a much later stage in the Company's life when it has significant sales and earnings. So, there is a no "damaged goods" aspect to this asset class which, in the current environment, must make it almost unique. And innovation is far from dead in Silicon Valley and other parts of the US especially in areas such as "cleantech" and along with all the other technology based areas of the venture capital world.
"We have been making new commitments to quality venture funds and are currently in the middle of raising a new Fund of Funds to enable us to do more in this area. We are very excited about the current timing and agree with one of our Partnership interests who believe this is likely to be a time of unprecedented investment opportunity."
Russell Cleveland, manager of Renaissance US Capital agrees commenting: "This is a good time to invest in the US market because I believe investors will view a change as good. The US will be withdrawing from Iraq and this will be very favourable to the stock market. So while a recession may be going on the stock market may be going up."
Tom Walker, manager of Martin Currie Portfolio Investment Trust, commented: "The result of the US presidential election, as always, is a significant world event. But these are extraordinary times. Fundamental economics and wider confidence remain the key to recovery - that is much more than one individual. We believe that much of the bad news of late is now discounted in equity markets and that, difficult though the immediate outlook appears, long-term investors should be rewarded from this point."
Garrett Fish, manager of JPMorgan American Investment Trust said: "History has shown that during times of severe stress in the markets there are decent buying opportunities. We are currently seeing multi decade lows in terms of sentiment and multi-decade highs in terms of volatility. If you are interested in buying high quality merchandise (shares) many are now on sale. Looking out over the next few years this should prove to be another example of buy on fear sell on greed."
David McCraw, manager of the Edinburgh US Tracker Trust plc has looked into past US elections with a particular focus on those that have taken place during a period of economic downturn. He said, "Historic analysis shows that US equities in 2008 have so far followed the same pattern that has occurred in past periods of slower economic growth and lower interest rates - namely that equity returns in an election year have been weaker than in the preceding year. However, in previous election years where such economic conditions prevailed, (1936, 1968, 1976, 1992 and 1996), returns from equities were in positive territory and that appears unlikely in 2008.
"Analysis of Presidential cycles since 1926 show that there may be grounds for being more optimistic - the average returns from the S&P500 have been positive in the first year of the Presidential term although the best returns have been generated in the third year of the four year cycle. However, given the headwinds now facing the US and global economy the first term of the new President may follow a similar pattern of rewarding investors who invest for the long term."
Aside from the market difficulties, a key issue for managers when considering the impact of the elections will be the policies surrounding climate change. Speaking on this subject
Walter Price, manager of the RCM Technology Trust said, "The platforms of the incumbent Republican president, Bush, and the leading Presidential candidate, Democrat Obama, are quite different. Obama believes in the beneficial effects of government policy, and this should matter in a number of areas relevant to Technology. For instance, Obama has pledged to address Global Climate Change and the need to eliminate the dependence of the USA on foreign oil imports. We should see a programme that builds upon the Investment Tax Credit (the package of tax measures designed for the solar energy sector) that was passed by Congress as a part of the rescue bill to encourage alternative energy generation, including new credits for electric, hybrid, and natural gas run cars and trucks; more funds for research into new energy sources; and credits for energy conservation efforts. We think this will spur the wind and solar industries in the US to become the largest in the world, but there will be a bias for those companies that locate their plants in the US and employ lots of US citizens."
Russell Cleveland, manager of Renaissance US Capital is also planning to take advantage of the alternative energy sector as well as US traded Chinese companies. He said: "We are positioning our portfolio to take advantage of the world as we see it. We are placing about one-half of our positions in US traded Chinese companies. These companies are growing rapidly and selling at very low valuations. The other areas we are concentrating on are related to alternative energy, i.e., solar, wind power, etc.; internet, software, medical technology and other areas that can do well in a slow growth economy."
In general, the managers believe that the elections will have an impact on their US investments and the recent crisis in global markets will influence the election result. Russell Cleveland, manager of Renaissance US Capital commented, "The US Presidential elections will have an impact on the US stock market across all sectors. It appears that Senator Obama will win the election and the Democrats will gain in both the House and Senate."A new President will bring with them a new set of policies and managers seem optimistic about the future of the US and its long term investment opportunities.
Peter Dicks, Chairman of Private Equity Investor said: "Yes, I believe the election will have an impact in the sense that it will remove an administration which has largely become a lame duck and more importantly it will remove uncertainty. No doubt the first 100 days will be significant especially, in my opinion, if Obama gets in.
"In our field, which is venture capital, we think this is potentially one of the very best times to invest in this field, Why? Venture is an all cash investment in an all equity asset class without a dollar of debt. If debt features at all; it is at a much later stage in the Company's life when it has significant sales and earnings. So, there is a no "damaged goods" aspect to this asset class which, in the current environment, must make it almost unique. And innovation is far from dead in Silicon Valley and other parts of the US especially in areas such as "cleantech" and along with all the other technology based areas of the venture capital world.
"We have been making new commitments to quality venture funds and are currently in the middle of raising a new Fund of Funds to enable us to do more in this area. We are very excited about the current timing and agree with one of our Partnership interests who believe this is likely to be a time of unprecedented investment opportunity."
Russell Cleveland, manager of Renaissance US Capital agrees commenting: "This is a good time to invest in the US market because I believe investors will view a change as good. The US will be withdrawing from Iraq and this will be very favourable to the stock market. So while a recession may be going on the stock market may be going up."
Tom Walker, manager of Martin Currie Portfolio Investment Trust, commented: "The result of the US presidential election, as always, is a significant world event. But these are extraordinary times. Fundamental economics and wider confidence remain the key to recovery - that is much more than one individual. We believe that much of the bad news of late is now discounted in equity markets and that, difficult though the immediate outlook appears, long-term investors should be rewarded from this point."Garrett Fish, manager of JPMorgan American Investment Trust said: "History has shown that during times of severe stress in the markets there are decent buying opportunities. We are currently seeing multi decade lows in terms of sentiment and multi-decade highs in terms of volatility. If you are interested in buying high quality merchandise (shares) many are now on sale. Looking out over the next few years this should prove to be another example of buy on fear sell on greed."
David McCraw, manager of the Edinburgh US Tracker Trust plc has looked into past US elections with a particular focus on those that have taken place during a period of economic downturn. He said, "Historic analysis shows that US equities in 2008 have so far followed the same pattern that has occurred in past periods of slower economic growth and lower interest rates - namely that equity returns in an election year have been weaker than in the preceding year. However, in previous election years where such economic conditions prevailed, (1936, 1968, 1976, 1992 and 1996), returns from equities were in positive territory and that appears unlikely in 2008.
"Analysis of Presidential cycles since 1926 show that there may be grounds for being more optimistic - the average returns from the S&P500 have been positive in the first year of the Presidential term although the best returns have been generated in the third year of the four year cycle. However, given the headwinds now facing the US and global economy the first term of the new President may follow a similar pattern of rewarding investors who invest for the long term."
Aside from the market difficulties, a key issue for managers when considering the impact of the elections will be the policies surrounding climate change. Speaking on this subject
Walter Price, manager of the RCM Technology Trust said, "The platforms of the incumbent Republican president, Bush, and the leading Presidential candidate, Democrat Obama, are quite different. Obama believes in the beneficial effects of government policy, and this should matter in a number of areas relevant to Technology. For instance, Obama has pledged to address Global Climate Change and the need to eliminate the dependence of the USA on foreign oil imports. We should see a programme that builds upon the Investment Tax Credit (the package of tax measures designed for the solar energy sector) that was passed by Congress as a part of the rescue bill to encourage alternative energy generation, including new credits for electric, hybrid, and natural gas run cars and trucks; more funds for research into new energy sources; and credits for energy conservation efforts. We think this will spur the wind and solar industries in the US to become the largest in the world, but there will be a bias for those companies that locate their plants in the US and employ lots of US citizens."
Russell Cleveland, manager of Renaissance US Capital is also planning to take advantage of the alternative energy sector as well as US traded Chinese companies. He said: "We are positioning our portfolio to take advantage of the world as we see it. We are placing about one-half of our positions in US traded Chinese companies. These companies are growing rapidly and selling at very low valuations. The other areas we are concentrating on are related to alternative energy, i.e., solar, wind power, etc.; internet, software, medical technology and other areas that can do well in a slow growth economy."
Sidley Austin Promotes Hedge Fund Lawyers Among Others
Sidley Austin LLP has added six new members to its Executive Committee, the Committee that exercises general authority over the affairs of the firm, and two new members to its Management Committee, the Committee which governs the firm’s day-to-day activities.William D. Kerr of Chicago joins as global coordinator of the firm’s Investment Funds, Advisers and Derivatives practice and a partner since 1991. He represents clients in securities and derivatives-related corporate and regulatory matters, including the organization and operation of hedge funds, commodity pools, real estate funds and private equity funds, organization and operation of investment advisers, commodity pool operators and commodity trading advisors, structured products, and derivatives documentation and regulation.
Michael J. Schmidtberger of New York has been a partner since 1993 and a global coordinator of the firm’s Investment Funds, Advisers and Derivatives practice, focuses his practice on securities and futures-related funds and corporate transactions, including related regulatory matters.
Schmidtberger regularly advises and represents clients in domestic and international offerings of hedge funds, fund of funds, public and private commodity pools and structured derivative and principal-protected transactions. Mr. Schmidtberger has also counseled clients in numerous fund restructurings and work-out situations. He is also a member of the firm’s Executive Committee and a member of the Committee on Retention and Promotion of Women.
“All of these partners are extremely talented lawyers and have contributed significantly to the growth and success of the firm,” said Thomas A. Cole, Chair of the Executive Committee.
Also hired are, Edward G. Poplawski, Raymond A. Bonner, Constance Choy and Peter D. Keisler, bringing the current count to 49.
“We are delighted to welcome these lawyers to governance roles so they may continue to serve as leaders of the firm,” said Charles W. Douglas, Chair of the Management Committee.
Sidley Austin LLP is one of the world's largest full-service law firms, with more than 1800 lawyers practicing in 16 U.S. and international cities, including Beijing, Brussels, Frankfurt, Geneva, Hong Kong, London, Shanghai, Singapore, Sydney and Tokyo.
Competition Becomes Fierce for Financial Jobs
Employment offers in financial services fell by 11% in September compared to 6 months ago, according to Powerchex Limited, a pre-employment screening firm for financial institutions.Research by Powerchex showed that Investment Banks made the biggest cutback with 52% less jobs being offered in September compared to 6 months ago. Uncertainty about the world economy heightened with the collapse of U.S investment bank Lehman Brothers, meaning that investment banks are reluctant to hire with the fear they may be the next to falter. Unemployed stockbrokers will also be worried by the news that there has been an 11% decline in the amount of jobs being offered by brokerage firms.
Despite this, investment managers saw a 22% increase in job offers as rival firms take advantage of the increasing number of financial services workers looking for a job by “snapping up the cream of the crop on much less than they would have been able to 6 months ago”, said Alexandra Kelly, Managing Director of Powerchex Limited.
Hedge fund and insurance companies also made more employment offers than 6 months ago as those companies who have been able to remain stable through the turmoil prepare to put themselves at the head of the pack to take advantage of any economic recovery.
IT contractors based at financial services firms have been the big winners with a 30% rise in job offers. Harvey Nash, whose business is predominantly IT outsourcing, this year announced a large rise in profits and strong revenue growth. The trend towards temporary workers is likely to continue as companies attempt to avoid long term commitments in the current economic climate, coupled with the fact that there are more highly skilled workers willing to take on temporary positions.
According to financial recruitment specialists Morgan McKinley, there has been a 42% rise in the number of financial services workers looking for a job in September, with this number likely to rise, those who are unable to secure permanent positions will be forced to accept temporary roles.
“The employment landscape in financial services is getting decisively more difficult, with offers being made only to the best candidates” says Kelly. “Applicants are well advised to be very candid in their CVs, as even a small discrepancy may disqualify them from a job they can ill afford to lose”. “I expect to see a rise in CV discrepancies, as the competition for financials jobs becomes more fierce”, she concludes.
20 Oct 2008
Finvest Launches Offering and FOHF Allocation
Finvest Asset Management is set to launch a new capital protected offering for investors who are seeking to generate annual returns of between 12-20 percent in a low risk structure.
The total offering is for $500 million and is open to non-U.S. investors only. The capital protected product will be offered to investors in the form of a U.S. Dollar denominated subscription. Downward pressure on the Euro relative to the dollar, will further enhance the investment and provide a source of upward performance for investors.
The Zurich-based Asset Management company has also received a mandate to allocate around $300m to the fund of hedge funds sector as part of a low-risk strategy to capitalise on the turbulence in global financial markets market.
Allocations will be made to funds that have a track record of at least three years, have an attractive Sharpe ratio, and are targeting annual returns of between 10 and 15 per cent. Funds of funds that may have incurred negative returns will not be excluded from the selection process.
"The decision to allocate to a hedge fund goes against the current trend," says Finvest portfolio strategist Mayer Greenwald. "However, we see a tremendous amount of upside in the fund of funds space, providing that portfolio managers apply the appropriate risk management." He argues that a good fund of funds can provide value in its ability to optimise allocations and achieve an appropriate risk/reward profile.
Finvest currently operates an office from Zurich and recently announced plans to open an office in London and Cypress. It also manages the Finvest Primer and Finvest Yankee funds.
The total offering is for $500 million and is open to non-U.S. investors only. The capital protected product will be offered to investors in the form of a U.S. Dollar denominated subscription. Downward pressure on the Euro relative to the dollar, will further enhance the investment and provide a source of upward performance for investors.
The Zurich-based Asset Management company has also received a mandate to allocate around $300m to the fund of hedge funds sector as part of a low-risk strategy to capitalise on the turbulence in global financial markets market.Allocations will be made to funds that have a track record of at least three years, have an attractive Sharpe ratio, and are targeting annual returns of between 10 and 15 per cent. Funds of funds that may have incurred negative returns will not be excluded from the selection process.
"The decision to allocate to a hedge fund goes against the current trend," says Finvest portfolio strategist Mayer Greenwald. "However, we see a tremendous amount of upside in the fund of funds space, providing that portfolio managers apply the appropriate risk management." He argues that a good fund of funds can provide value in its ability to optimise allocations and achieve an appropriate risk/reward profile.
Finvest currently operates an office from Zurich and recently announced plans to open an office in London and Cypress. It also manages the Finvest Primer and Finvest Yankee funds.
17 Oct 2008
Research Looks at Retirement Plan Risk Management
The Society of Actuaries and Pension Governance, LLC has released a new research report that explores current pension risk management practices.
The 69-page study by Susan Mangiero looks at the responses of 162 retirement plan decision-makers in the United States and Canada.
In answering broad questions, a majority of surveyed plan sponsors describe themselves as doing all the right things to manage investment, fiduciary and liability risks. However, answers to subsequent questions – those that query further about risk procedures and policies at a detailed level - do not support the notion that pension risk management is being addressed on a comprehensive basis by all plans represented in the survey sample.
Respondents cite numerous reasons for not using derivatives directly, including, but not limited to, "Lack of Fiduciary Understanding", "Perception of Excess Risk", "Considered Too Complex", "Prohibition Against Possible Leverage" and/or "Defined Benefit Plan Risk Not Considered Significant".
Survey respondents seem to rely mainly on elementary tools to measure risk, also worrying about the future, ranking "Accounting Impact" as a concern. Other concerns were also noted to include "Regulation," "Longevity of Plan Participants" and "Fiduciary Pressure."
“A global derivatives market in excess of $600 trillion is hard to ignore,” says Mangiero, “yet most are unaware of how plan sponsors employ futures, options and swaps, if at all. Statutory reports about pension economics are often no longer relevant by the time they are released to the general public. Allowing that derivative instruments can help or hinder, the impact of a poor pension risk management strategy is potentially devastating and might lead to financial ruin for employees who assume that financial managers make sound decisions on their behalf.”
The 69-page study by Susan Mangiero looks at the responses of 162 retirement plan decision-makers in the United States and Canada.
In answering broad questions, a majority of surveyed plan sponsors describe themselves as doing all the right things to manage investment, fiduciary and liability risks. However, answers to subsequent questions – those that query further about risk procedures and policies at a detailed level - do not support the notion that pension risk management is being addressed on a comprehensive basis by all plans represented in the survey sample.
Respondents cite numerous reasons for not using derivatives directly, including, but not limited to, "Lack of Fiduciary Understanding", "Perception of Excess Risk", "Considered Too Complex", "Prohibition Against Possible Leverage" and/or "Defined Benefit Plan Risk Not Considered Significant".Survey respondents seem to rely mainly on elementary tools to measure risk, also worrying about the future, ranking "Accounting Impact" as a concern. Other concerns were also noted to include "Regulation," "Longevity of Plan Participants" and "Fiduciary Pressure."
“A global derivatives market in excess of $600 trillion is hard to ignore,” says Mangiero, “yet most are unaware of how plan sponsors employ futures, options and swaps, if at all. Statutory reports about pension economics are often no longer relevant by the time they are released to the general public. Allowing that derivative instruments can help or hinder, the impact of a poor pension risk management strategy is potentially devastating and might lead to financial ruin for employees who assume that financial managers make sound decisions on their behalf.”
ICI Offers Alternative to Pickens Plan
A national program known as the Intelligent Community Initiative (ICI) is offering an alternative restructuring operation using interconnected client-server databases and online training, resulting, the company says, in self-sustaining financial communities which are not as vulnerable to global financial collapse.
Through its Business Incubation and Facilitation Division, the ICI provides a network for businesses that are integral to (and support) the community. A not insignificant benefit to this approach, ICI says, is that more tightly linked businesses and individuals beholden to their bonds in the community require much less governmental intervention. The ICI plan radically reduces the need for government regulations that limit efficiency.
In September ICI announced an alternative to the Pickens Plan called Operation Energy Transition (OET). According to ICI analysis, the plan that oil billionaire T. Boone Pickens released in July 2008 intensifies the problems of the Peak Oil crisis by transferring dependence on oil to operate automobiles to dependence on natural gas to do the same.
Intelligent Communities President Barry Krusch says, “Not only does the Pickens Plan fail to provide a solid solution to curtail greenhouse gas emissions, but it also lacks the detailed analysis that any comprehensive plan should include. Briefly put, it is too much Pickens, and not enough Plan”.
While the Pickens Plan recommends ramping up wind energy to feed electric grids for powering urban centers, a strategy also to be deployed by OET, the secondary goal of the Pickens Plan to use natural gas to power automobiles requires not only a significant (and expensive) change to the national transportation infrastructure, it also unfortunately shifts reliance on one fossil fuel to another. Natural gas is nonrenewable, which means that when supplies decrease, prices jump and everyone scrambles to search for the next fuel source. And when other countries join the natural gas craze, the supply further diminishes and prices soar.
The alternative answer proposed by Intelligent Communities, Operation Energy Transition, calls for a ramped-up increase in telecommuting, innovations such as carpooling software and a new mode of transport it refers to as intellitaxis, and an enhanced focus on more commonly known ideas such as alternative vehicles and increasing solar and wind technology and availability. While the Pickens Plan can be described in just 2 or 3 sentences, adequately describing OET takes a wall map, which is conveniently located on the OET site.
“If we’re going to solve the problem, let’s solve it”, Krusch said. “Rolling out a plan which is destined to put America yet again behind the eight ball is not the plan we need: Operation Energy Transition is.”
Through its Business Incubation and Facilitation Division, the ICI provides a network for businesses that are integral to (and support) the community. A not insignificant benefit to this approach, ICI says, is that more tightly linked businesses and individuals beholden to their bonds in the community require much less governmental intervention. The ICI plan radically reduces the need for government regulations that limit efficiency.
In September ICI announced an alternative to the Pickens Plan called Operation Energy Transition (OET). According to ICI analysis, the plan that oil billionaire T. Boone Pickens released in July 2008 intensifies the problems of the Peak Oil crisis by transferring dependence on oil to operate automobiles to dependence on natural gas to do the same. Intelligent Communities President Barry Krusch says, “Not only does the Pickens Plan fail to provide a solid solution to curtail greenhouse gas emissions, but it also lacks the detailed analysis that any comprehensive plan should include. Briefly put, it is too much Pickens, and not enough Plan”.
While the Pickens Plan recommends ramping up wind energy to feed electric grids for powering urban centers, a strategy also to be deployed by OET, the secondary goal of the Pickens Plan to use natural gas to power automobiles requires not only a significant (and expensive) change to the national transportation infrastructure, it also unfortunately shifts reliance on one fossil fuel to another. Natural gas is nonrenewable, which means that when supplies decrease, prices jump and everyone scrambles to search for the next fuel source. And when other countries join the natural gas craze, the supply further diminishes and prices soar.
The alternative answer proposed by Intelligent Communities, Operation Energy Transition, calls for a ramped-up increase in telecommuting, innovations such as carpooling software and a new mode of transport it refers to as intellitaxis, and an enhanced focus on more commonly known ideas such as alternative vehicles and increasing solar and wind technology and availability. While the Pickens Plan can be described in just 2 or 3 sentences, adequately describing OET takes a wall map, which is conveniently located on the OET site.
“If we’re going to solve the problem, let’s solve it”, Krusch said. “Rolling out a plan which is destined to put America yet again behind the eight ball is not the plan we need: Operation Energy Transition is.”
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