HedgeCo.net - As part of the the debate over the European Union’s draft Alternative Investment Fund Managers Directive, French and German Finance Ministers, Christine Lagarde and Wolfgang Schäuble, made a statement about the standard for European hedge funds, - found in full in today’s Wall Street Journal, proposing a draft directive providing supervisors with full access to all relevant information regarding individual hedge funds.
AIMA, (The Global Hedge Fund Industry Association) said: “We very much welcome the comments by Mrs. Lagarde and Mr. Schäuble that ‘France and Germany believe in open financial markets’ and that ‘qualified investors should be free to invest in funds from all around the globe irrespective of quality standards set for state-of-the-art European hedge funds’. Given the widespread international concern over possible protectionist consequences of the Directive and the potential impact on European investors, this is a significant and reassuring statement.
“While the comments by Mrs. Lagarde and Mr. Schäuble are welcome, we would note that the current texts of the Directive do not necessarily reflect these sentiments, and we presume that the French and German governments would therefore support appropriate revisions in line with these remarks. In particular, while Mrs. Lagarde and Mr. Schäuble say that EU investors should be free to invest in non-EU funds as long as non-EU investment funds and their supervisors provide for adequate information exchange to mitigate systemic risk, the current text being discussed at Council level imposes additional requirements on non-EU funds beyond this.
“We do agree that it is important that the AIFM Directive addresses the issue of systemic risk; AIMA, as the global hedge fund industry association, has consistently supported transparency by the industry in this respect, namely the reporting of systemically relevant data in the interests of financial stability to national supervisors.
“We also remain concerned about the details of the practical application of this Directive and would urge policymakers to liaise closely not only with the industry but with the regulators with the most experience of the sectors covered by this Directive to ensure a consistent, proportionate and practical piece of final legislation.”
28 Apr 2010
Assets Seized After Suicide Attempt
HedgeCo.net – The Denver Post reports that authorities have seized the assets of local hedge fund manager Sean Mueller. The State is accusing him of running a Ponzi scheme involving approximately $122 million.
An investment statement released by investigators showed only $15 million in his account, after the hedge fund had claimed assets of $122 million.
Mueller Capital’s Over-Under Fund raised more than $20 million from three investors and that at least 30 more also may have made “substantial investments”, the Denver Post reported.
“I’m very sorry for the damage I have done.” Mueller said in a handwritten note, according to the Post.” I always thought I could make it back. Nobody else had any involvement except me.”
After threatening to kill himself, it is reported that Mueller was found by police last Thursday considering a jump from about 19 stories. Mueller had also apologized to his clients for financial losses by Email.
The hedge fund manager was taken to a hospital by the Greenwood Village police.
An investment statement released by investigators showed only $15 million in his account, after the hedge fund had claimed assets of $122 million.
Mueller Capital’s Over-Under Fund raised more than $20 million from three investors and that at least 30 more also may have made “substantial investments”, the Denver Post reported.
“I’m very sorry for the damage I have done.” Mueller said in a handwritten note, according to the Post.” I always thought I could make it back. Nobody else had any involvement except me.”
After threatening to kill himself, it is reported that Mueller was found by police last Thursday considering a jump from about 19 stories. Mueller had also apologized to his clients for financial losses by Email.
The hedge fund manager was taken to a hospital by the Greenwood Village police.
23 Apr 2010
Fund Of Funds Investing: Q&A with Richard Bookbinder
New York (HedgeCo.net) In the new book, ‘Fund of Funds Investing – A Roadmap to Portfolio Diversification,’ Richard Bookbinder and Daniel Strachman write about the evolution of capital markets and the changes that have taken place in the arena of alternative investing.
I asked Richard Bookbinder, founder of Bookbinder Capital Management LLC and co-author of the book about his thoughts on what investors should look for in choosing a hedge fund manager.
Some pointers include:- Ensure that the manager has a verifiable track record, it is important to review performance results and source of returns not only in 2009, but also to review prior and current periods.
- Take time for due diligence and review: 3 to 6 months minimum, even as long as 12 to 24 months.
- Look at the quantitative as well as qualitative results:
“While a quantitative review of performance and correlation results is critical,” Bookbinder said, “the qualitative on site due diligence includes review of systems, procedures, processes, and risk management systems along with extensive meetings of managers and key personnel.”
- Size is important, but bigger is not always better:
“While much of the new flow of capital into the hedge fund industry has been directed to large, visible hedge fund complexes, size should not be the key factor, “ The author explained, “There are many smaller funds with long, consistent track records that have outperformed the large funds.”
- Learning from history:
“It is important to understand what the source of alpha was in driving past performance returns.” Bookbinder said regarding the history of market performance and its relevance on future performance. “Investors had the wind to their backs in 2009 with the equity and credit market rally. In 2010, the story has changed. Performance returns are dependent upon manager skill sets and depth of the organization team.”
In conclusion, I asked what the crisis had to teach us. Bookbinder said, “Due diligence is not a check the box business. It must be performed by seasoned analysts who have a specialized understanding of the strategies.”
Bookbinder is a frequent speaker at hedge fund industry academic forums including the New York Society of Security Analysts and various hedge fund industry programs. He is also active in charitable activities including as a member of the Board of Trustees of the Darrow School, New Lebanon, NY. He is the External Advisor to the Wharton Hedge Fund Club, and participates in the Executive Student Partnership Mentoring program at Baruch College, New York, NY.
22 Apr 2010
Fictional Trading Experts Charged in NY Hedge Fund Scam
HedgeCo.net - The SEC has charged the self-proclaimed, “Wolves of Wall Street,” a Staten Island investment advisory firm, with operating an Internet-based scam that misleads investors into paying fees for phony stock tips and investment advice from fictional trading experts.
The team is charged with fraud, pretending to run a $1.4 billion hedge fund using fake names and claiming millions of dollars in trading riches as well as top-notch educational backgrounds and prominent experience at major Wall Street firms.
The “hedge fund”, called Gryphon, had fabricated glowing testimonials from George Soros and other big name traders on its website.
Gryphon frequently posted investment tips on the Internet, the SEC alleges, using at least 40 different monikers such as “Wolves of Wall Street,” “Wall Street’s Most Wanted,” “Pure Profit,” and “Mafia Trader.” In reality, Gryphon’s financial publications only served as a vehicle to attract unsuspecting investors.
According to the SEC’s complaint, Gryphon obtained more than $17.5 million from its operations over the past three years.
The Judge granted the SEC’s request for a temporary restraining order and asset freeze against the Defendants and six others named as Relief Defendants: (real names) Richard Borrello, Nicole Marsh, Ginna Mungiovi, Michael Scarpaci, Dominic Spinelli, and Paul Stokes.
The team is charged with fraud, pretending to run a $1.4 billion hedge fund using fake names and claiming millions of dollars in trading riches as well as top-notch educational backgrounds and prominent experience at major Wall Street firms.
The “hedge fund”, called Gryphon, had fabricated glowing testimonials from George Soros and other big name traders on its website.
Gryphon frequently posted investment tips on the Internet, the SEC alleges, using at least 40 different monikers such as “Wolves of Wall Street,” “Wall Street’s Most Wanted,” “Pure Profit,” and “Mafia Trader.” In reality, Gryphon’s financial publications only served as a vehicle to attract unsuspecting investors.
According to the SEC’s complaint, Gryphon obtained more than $17.5 million from its operations over the past three years.
The Judge granted the SEC’s request for a temporary restraining order and asset freeze against the Defendants and six others named as Relief Defendants: (real names) Richard Borrello, Nicole Marsh, Ginna Mungiovi, Michael Scarpaci, Dominic Spinelli, and Paul Stokes.
21 Apr 2010
Hedge Fund Launch: OM Global
Traditional and alternative asset managemer, OM Investment Management has launched a new hedge fund, the OM Global Investment Fund.
Launched on April 1, 2010, the new hedge fund expects to raise $50 million by June, with a target of $100 million by year end. The fund has returns of 22.3% as of 4/12/2010 in the first month alone.
"The OM Global Investment Fund targets 1500 of the most liquid global companies and is open to new investors." Portfolio manager Gignesh Movalia, said of the launch, "OM Investment Management is a multi-strategy investment and wealth advisory firm created to provide traditional and alternative asset management exclusively for wealthy individuals, institutional investors, and retirement plan sponsors."
The new hedge fund is a global long/short fund that uses a blend of fundamental and technical analysis to generate positive absolute returns in rising, falling and volatile, range-bound markets.
Movalia started OM Investments Management in 2007 and formed OM Global Investment Fund as a standalone fund structure in April 1, 2010. Movalia is the chairman and chief investment officer of OM and serves as portfolio manager for the equity fund."
Target size for the fund is currently $200m in assets under management in one year. Goldman Sachs is the prime broker for the fund while Patke & Associates will serve as the auditor and BGT Consulting, the administrator.
Prior to the formation of OM, Mr. Movalia was an Investment Advisor at Morgan Stanley & Co. and UBS, where he advised a niche group of wealthy clients representing several hundred million dollars in investment assets spanning equities, fixed income, and alternative investments. He also serves on the Advisory Board of Directors of Fahrenheit Investments, a Chicago-based hedge fund.
Launched on April 1, 2010, the new hedge fund expects to raise $50 million by June, with a target of $100 million by year end. The fund has returns of 22.3% as of 4/12/2010 in the first month alone.
"The OM Global Investment Fund targets 1500 of the most liquid global companies and is open to new investors." Portfolio manager Gignesh Movalia, said of the launch, "OM Investment Management is a multi-strategy investment and wealth advisory firm created to provide traditional and alternative asset management exclusively for wealthy individuals, institutional investors, and retirement plan sponsors."
The new hedge fund is a global long/short fund that uses a blend of fundamental and technical analysis to generate positive absolute returns in rising, falling and volatile, range-bound markets.
Movalia started OM Investments Management in 2007 and formed OM Global Investment Fund as a standalone fund structure in April 1, 2010. Movalia is the chairman and chief investment officer of OM and serves as portfolio manager for the equity fund."
Target size for the fund is currently $200m in assets under management in one year. Goldman Sachs is the prime broker for the fund while Patke & Associates will serve as the auditor and BGT Consulting, the administrator.
Prior to the formation of OM, Mr. Movalia was an Investment Advisor at Morgan Stanley & Co. and UBS, where he advised a niche group of wealthy clients representing several hundred million dollars in investment assets spanning equities, fixed income, and alternative investments. He also serves on the Advisory Board of Directors of Fahrenheit Investments, a Chicago-based hedge fund.
Hedge Fund Manager Released On Bail in Texas/Canada/China Investment Fraud Case
HedgeCo News - Weizhen Tang was jailed in mid-January this year on the charges of running a multi-million dollar Ponzi scheme. The SEC said that the defendant orchestrated the fraud through an overseas hedge fund and a Texas-based investment adviser.
Tang was released after a bail review on $150,000 bail, the Toronto Sun reported. The bail conditions order the hedge fund manager to stay in Canada and do not permit him from communicating with investors or hedge funds.
The fraud is alleged to have began as early as 2004, and through the hedge fund Tang raised between $50 million and $75 million from more than 200 investors. According to the SEC complaint, more than $51 million was allegedly involved in the hedge fund failure.
A Judge also previously granted a temporary restraining order, asset freeze, and other emergency relief against the defendants.
“I want a chance to prove my innocence, that’s why I came back from China,” Weizhen Tang told reporters at the Toronto Sun.
Tang was released after a bail review on $150,000 bail, the Toronto Sun reported. The bail conditions order the hedge fund manager to stay in Canada and do not permit him from communicating with investors or hedge funds.
The fraud is alleged to have began as early as 2004, and through the hedge fund Tang raised between $50 million and $75 million from more than 200 investors. According to the SEC complaint, more than $51 million was allegedly involved in the hedge fund failure.
A Judge also previously granted a temporary restraining order, asset freeze, and other emergency relief against the defendants.
“I want a chance to prove my innocence, that’s why I came back from China,” Weizhen Tang told reporters at the Toronto Sun.
Hedge Fund Democrat Donors
HedgeCo News
1. Jim Simons, founder of quantitative hedge fund Renaissance Technologies gave $94,100 in contributions over the past year, almost all of it going to Democrats, including Senators Harry Reid of Nevada, Chris Dodd of Connecticut and New York’s Charles Schumer, ABC said.
2. Also in the top ten, former Goldman Sachs trader Eric Mindich doled out $89,600, all to Democrats, including Reid, Dodd and Sen. Kirsten Gillibrand of New York.
3. Michael Sacks, CEO of Grosvenor Capital Management and a big Obama supporter, donated $76,425, all to Democrats, the report shows, including $1,000 to House Speaker Nancy Pelosi and $2,300 to Sen. Al Franken.
4. Henry Laufer, who works for Simons’ Renaissance, gave $73,600, all to Democrats. Among the recipients was HILLPAC, the PAC started by Hillary Clinton to support Democratic candidates.
5. Scott Nathan of Boston-based hedge fund Baupost gave $73,050, all to Democratic causes, including a maximum gift of $4,800 to Alan Khazei, who ran unsuccessfully to fill the Senate seat vacated by the late Ted Kennedy.
6. Eliott Associates’ Paul Singer gave $70,000 to Republicans in the past year. He donated $30,400, the maximum allowable, to the National Republican Senatorial Committee.
7. Cliff Asness, of AQR Capital, a Greenwich, Connecticut-based quantitative fund, donated $71,600 to Republicans, including $30,400 to the National Republican Senatorial Committee. In the tiniest of hedges, Asness gave Dodd $490, or around 1 percent of his total of $72,090 in donations during the past year.
8. Robert Mercer, also of Renaissance, gave $71,976, of which $69,576 went to the GOP.
9. Steve Cohen gave $68,400, all but $4,800 of which went to Republicans, including Rep. Eric Cantor of Virginia and the scandal-embroiled Senator from Nevada, John Ensign, ABC said.
10. Phil Falcone, of Harbinger Capital, seems to be hedging his bets, donating $30,400 to the Democratic Senatorial Campaign Committee and $10,000 to the Republican Party.
Hedge fund manager John Paulson gave money to both political parties, ABC reported. The most any individual can contribute in one election cycle is $115,500.
1. Jim Simons, founder of quantitative hedge fund Renaissance Technologies gave $94,100 in contributions over the past year, almost all of it going to Democrats, including Senators Harry Reid of Nevada, Chris Dodd of Connecticut and New York’s Charles Schumer, ABC said.
2. Also in the top ten, former Goldman Sachs trader Eric Mindich doled out $89,600, all to Democrats, including Reid, Dodd and Sen. Kirsten Gillibrand of New York.
3. Michael Sacks, CEO of Grosvenor Capital Management and a big Obama supporter, donated $76,425, all to Democrats, the report shows, including $1,000 to House Speaker Nancy Pelosi and $2,300 to Sen. Al Franken.
4. Henry Laufer, who works for Simons’ Renaissance, gave $73,600, all to Democrats. Among the recipients was HILLPAC, the PAC started by Hillary Clinton to support Democratic candidates.
5. Scott Nathan of Boston-based hedge fund Baupost gave $73,050, all to Democratic causes, including a maximum gift of $4,800 to Alan Khazei, who ran unsuccessfully to fill the Senate seat vacated by the late Ted Kennedy.
6. Eliott Associates’ Paul Singer gave $70,000 to Republicans in the past year. He donated $30,400, the maximum allowable, to the National Republican Senatorial Committee.
7. Cliff Asness, of AQR Capital, a Greenwich, Connecticut-based quantitative fund, donated $71,600 to Republicans, including $30,400 to the National Republican Senatorial Committee. In the tiniest of hedges, Asness gave Dodd $490, or around 1 percent of his total of $72,090 in donations during the past year.
8. Robert Mercer, also of Renaissance, gave $71,976, of which $69,576 went to the GOP.
9. Steve Cohen gave $68,400, all but $4,800 of which went to Republicans, including Rep. Eric Cantor of Virginia and the scandal-embroiled Senator from Nevada, John Ensign, ABC said.
10. Phil Falcone, of Harbinger Capital, seems to be hedging his bets, donating $30,400 to the Democratic Senatorial Campaign Committee and $10,000 to the Republican Party.
Hedge fund manager John Paulson gave money to both political parties, ABC reported. The most any individual can contribute in one election cycle is $115,500.
20 Apr 2010
Sadis & Goldberg Congratulates SkyBridge Capital on Purchase of Citigroup's Hedge Fund Business
HedgeCo News - When SkyBridge Capital announced the purchase of Citigroup's Hedge Fund Business on April 14, Paul Fasciano, who headed up the acquisition team from Sadis & Goldberg, stated. "We are pleased that SkyBridge selected us to represent them in this transaction and we congratulate Anthony on his vision to acquire the hedge fund business from Citigroup."
The Sadis & Goldberg team working on the transition consists of Paul Fasciano, Mergers and Acquisitions and Investment Management Partner, and Lance Friedler, Investment Management. Also on the team were Steven Etkind and Roger Lorence, Tax; Dan Viola, Regulatory and Compliance; and Ron S. Geffner, Head of the Financial Services Group.
The deal included the purchase of Citi Alternative Investments' fund of funds, hedge fund seeding and advisory businesses, with $4.2 billion worth of assets under management. The transaction is scheduled to close on June 30, 2010.
“SkyBridge continues to expand its presence in the financial services industry and this acquisition will position us as one of the leading global alternative asset managers,” said Anthony Scaramucci, Managing Partner of SkyBridge Capital. “We have been working on the purchase with a team of attorneys from Sadis & Goldberg since February and once the deal closes, we will have approximately $5.6 billion in assets under management.”
"The current climate of increased opportunity for M&A in the asset management industry provides great benefits to our clients who continue to fortify their position in the financial services industry. While the increased regulatory scrutiny presents new challenges, it is critical to be aware of the latest developments and trends," said Ron S. Geffner, Partner and Head of the Financial Services Group.
The Sadis & Goldberg team working on the transition consists of Paul Fasciano, Mergers and Acquisitions and Investment Management Partner, and Lance Friedler, Investment Management. Also on the team were Steven Etkind and Roger Lorence, Tax; Dan Viola, Regulatory and Compliance; and Ron S. Geffner, Head of the Financial Services Group.
The deal included the purchase of Citi Alternative Investments' fund of funds, hedge fund seeding and advisory businesses, with $4.2 billion worth of assets under management. The transaction is scheduled to close on June 30, 2010.
“SkyBridge continues to expand its presence in the financial services industry and this acquisition will position us as one of the leading global alternative asset managers,” said Anthony Scaramucci, Managing Partner of SkyBridge Capital. “We have been working on the purchase with a team of attorneys from Sadis & Goldberg since February and once the deal closes, we will have approximately $5.6 billion in assets under management.”
"The current climate of increased opportunity for M&A in the asset management industry provides great benefits to our clients who continue to fortify their position in the financial services industry. While the increased regulatory scrutiny presents new challenges, it is critical to be aware of the latest developments and trends," said Ron S. Geffner, Partner and Head of the Financial Services Group.
Cheung Capital Management to launch Global Gaming Opportunities Fund
Today Cheung Capital Management announced the launch of its maiden fund, the Global Gaming Opportunities Fund (“Fund”). The Fund will invest in listed casino and gaming stocks around the world. The Fund is open to Australian wholesale and sophisticated investors.
“The global gaming industry includes casinos, poker machine manufacturers, lotteries and bookmakers and has a total market capitalization in excess of $100 billion. In spite of its size, many traditional fund managers and brokerage houses still shy away from the sector. This presents an opportunity for the Fund to generate strong returns for its clients through the application of bespoke research,” said Timothy Cheung, Portfolio Manager for the Global Gaming Opportunities Fund.
“Gaming stocks can be very attractive for investors because they have defensive characteristics while still retaining exposure to increasing consumer affluence. This is particularly relevant to investors seeking exposure to Asia’s burgeoning middle class. One market the Fund will focus on is Macau, the world’s largest casino destination. In spite of the global financial crisis, casino revenues in Macau have grown every year since it welcomed overseas operators in 2004.”
“The global gaming industry includes casinos, poker machine manufacturers, lotteries and bookmakers and has a total market capitalization in excess of $100 billion. In spite of its size, many traditional fund managers and brokerage houses still shy away from the sector. This presents an opportunity for the Fund to generate strong returns for its clients through the application of bespoke research,” said Timothy Cheung, Portfolio Manager for the Global Gaming Opportunities Fund.
“Gaming stocks can be very attractive for investors because they have defensive characteristics while still retaining exposure to increasing consumer affluence. This is particularly relevant to investors seeking exposure to Asia’s burgeoning middle class. One market the Fund will focus on is Macau, the world’s largest casino destination. In spite of the global financial crisis, casino revenues in Macau have grown every year since it welcomed overseas operators in 2004.”
"Hedge Fund Hotel" Manager Arrested For $1.6 Million Fraud
HedgeCo News - Hedge fund manager and owner and President of New York Financial Company (NYFC), was arrested in an FBI operation on allegations of wire and hedge fund fraud in an alleged $1.6 million investment fraud scheme, according to the SEC.
The complaint alleges that New Jersey resident Robert J. Sucarato, through his financial consulting firm, launched two hedge funds, the NYFC Strategic Fund and the NYFC Diversified Strategic Fund, which purportedly invested in the commodities market.
Sucarato solicited for his hedge funds through a website, the SEC claims, working from a “virtual office” in New York City which allowed him to claim that NYFC had a prestigious mailing address. In reality, this space was nothing more than shared office space, rented for a nominal fee, which shared receptionists, conference rooms, and office areas with many other companies.
The allegations include, making false claims about the age of the hedge funds as well as their performance and returns. The hedge fund manager claimed over $7.2 billion in assets under management and a net worth of approximately $798 million.
The charge of wire fraud carries a maximum statutory sentence of 20 years in prison and a fine of $250,000. The charge of fraud by a commodity pool operator carries a maximum statutory sentence of 10 years in prison and a fine of $1 million.
19 Apr 2010
Treasury Goes Green, Saves, Green
Broad New Initiative Will Increase Electronic Transactions, Save More Than $400 Million, 12 Million Pounds of Paper in First Five Years Alone
Washington (Press release) – With Americans poised to celebrate the 40th anniversary of Earth Day this week, the U.S. Department of the Treasury today announced a broad new initiative to dramatically increase the number of electronic transactions that involve Treasury and millions of citizens and businesses, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone. In addition to greatly reducing costs, enhancing customer service and minimizing Treasury's environmental impact, the move from paper to electronic transactions will increase reliability, safety and security for benefit recipients and taxpayers.
"Treasury must lead the way in developing methods to deliver payments that are safe and secure in a manner that is efficient and reliable," said Treasury Secretary Tim Geithner. "By moving to all-electronic payments, Treasury will save hundreds of millions of dollars and substantially reduce our environmental impact, making this a win-win for all Americans."
Starting today, Treasury will begin implementing a three-pronged initiative to dramatically reduce the number of transactions that are conducted on paper by moving them to electronic systems. First, Treasury will require individuals receiving Social Security, Supplemental Security Income, Veterans, Railroad Retirement and Office of Personnel Management benefits to receive payments electronically. Individuals will be able to receive benefits either through direct deposit into a bank account or Treasury's Direct Express debit card. Today, one million Americans are receiving their benefit payments through Direct Express and they have found the card safe, convenient and easy to use. The requirement will apply to new enrollees beginning on March 1, 2011 and to existing check recipients beginning on March 1, 2013. Currently, 85 percent of federal benefit recipients receive their payments electronically. Moving all recipients of these benefits to electronic payments is expected to save upwards of $300 million in the first five years.
Second, businesses currently permitted to use paper Federal Tax Deposit coupons will have to make those deposits electronically beginning in 2011 with a few exceptions, primarily businesses with $2,500 or less in quarterly tax liabilities that pay when filing their returns. Currently, nearly 98 percent of all business tax dollars are paid electronically through Treasury's free Electronic Federal Tax Payment System. IRS research has shown that businesses using EFTPS are 31 times less likely to make an error. This change will save an estimated $65 million in the first five years.
Finally, Treasury will eliminate the option to purchase paper savings bonds through payroll deductions for federal employees on September 30, 2010 and for the private sector by January 1, 2011. This policy covers only paper savings bonds purchased through payroll sales; individuals will still be able to purchase paper savings bonds at financial institutions for themselves and as gifts. Payroll savers will be encouraged to continue their purchases through Treasury Direct, a web-based system that allows investors to buy and hold electronic savings bonds. Transitioning employees to electronic payroll purchases saves employers administrative costs and allows employees to manage their own bond accounts. This is estimated to save nearly $50 million in the first five years.
The benefits of electronic transactions are well documented. Aside from the large cost savings, electronic transactions provide safety, convenience and control for payment recipients, taxpayers and savings bond holders. These initiatives do not require new legislation and can be accomplished by changes to Treasury's existing regulations.
As Treasury moves towards an all electronic payment environment, the Administration is strengthening protections for individuals who receive Direct Deposit. Treasury and the federal agencies that issue benefit payments have published a notice of proposed rulemaking to ensure that exempt federal benefit payments are protected from garnishment after they are directly deposited into accounts. Also, Treasury will soon issue a notice of proposed rulemaking that reaffirms the longstanding policy that federal benefits must be directly deposited into an account in the name of the recipient and not into an account of a third party. This rule will prevent entities such as payday lenders from establishing a master account to receive payments on behalf of multiple beneficiaries.
The rule address concerns that benefit recipients do not have control over their funds in these arrangements. In addition, this proposed rule will permit the direct deposit of benefit payments into master accounts established by organizations such as nursing homes, as long as certain consumer protections are provided for their residents.
Washington (Press release) – With Americans poised to celebrate the 40th anniversary of Earth Day this week, the U.S. Department of the Treasury today announced a broad new initiative to dramatically increase the number of electronic transactions that involve Treasury and millions of citizens and businesses, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone. In addition to greatly reducing costs, enhancing customer service and minimizing Treasury's environmental impact, the move from paper to electronic transactions will increase reliability, safety and security for benefit recipients and taxpayers.
"Treasury must lead the way in developing methods to deliver payments that are safe and secure in a manner that is efficient and reliable," said Treasury Secretary Tim Geithner. "By moving to all-electronic payments, Treasury will save hundreds of millions of dollars and substantially reduce our environmental impact, making this a win-win for all Americans."
Starting today, Treasury will begin implementing a three-pronged initiative to dramatically reduce the number of transactions that are conducted on paper by moving them to electronic systems. First, Treasury will require individuals receiving Social Security, Supplemental Security Income, Veterans, Railroad Retirement and Office of Personnel Management benefits to receive payments electronically. Individuals will be able to receive benefits either through direct deposit into a bank account or Treasury's Direct Express debit card. Today, one million Americans are receiving their benefit payments through Direct Express and they have found the card safe, convenient and easy to use. The requirement will apply to new enrollees beginning on March 1, 2011 and to existing check recipients beginning on March 1, 2013. Currently, 85 percent of federal benefit recipients receive their payments electronically. Moving all recipients of these benefits to electronic payments is expected to save upwards of $300 million in the first five years.
Second, businesses currently permitted to use paper Federal Tax Deposit coupons will have to make those deposits electronically beginning in 2011 with a few exceptions, primarily businesses with $2,500 or less in quarterly tax liabilities that pay when filing their returns. Currently, nearly 98 percent of all business tax dollars are paid electronically through Treasury's free Electronic Federal Tax Payment System. IRS research has shown that businesses using EFTPS are 31 times less likely to make an error. This change will save an estimated $65 million in the first five years.
Finally, Treasury will eliminate the option to purchase paper savings bonds through payroll deductions for federal employees on September 30, 2010 and for the private sector by January 1, 2011. This policy covers only paper savings bonds purchased through payroll sales; individuals will still be able to purchase paper savings bonds at financial institutions for themselves and as gifts. Payroll savers will be encouraged to continue their purchases through Treasury Direct, a web-based system that allows investors to buy and hold electronic savings bonds. Transitioning employees to electronic payroll purchases saves employers administrative costs and allows employees to manage their own bond accounts. This is estimated to save nearly $50 million in the first five years.
The benefits of electronic transactions are well documented. Aside from the large cost savings, electronic transactions provide safety, convenience and control for payment recipients, taxpayers and savings bond holders. These initiatives do not require new legislation and can be accomplished by changes to Treasury's existing regulations.
As Treasury moves towards an all electronic payment environment, the Administration is strengthening protections for individuals who receive Direct Deposit. Treasury and the federal agencies that issue benefit payments have published a notice of proposed rulemaking to ensure that exempt federal benefit payments are protected from garnishment after they are directly deposited into accounts. Also, Treasury will soon issue a notice of proposed rulemaking that reaffirms the longstanding policy that federal benefits must be directly deposited into an account in the name of the recipient and not into an account of a third party. This rule will prevent entities such as payday lenders from establishing a master account to receive payments on behalf of multiple beneficiaries.
The rule address concerns that benefit recipients do not have control over their funds in these arrangements. In addition, this proposed rule will permit the direct deposit of benefit payments into master accounts established by organizations such as nursing homes, as long as certain consumer protections are provided for their residents.
UK Hedge Fund Provider Beefs Up Tax Offering
HedgeCo News - Throgmorton, one of the UK’s largest specialist accountancy and professional services providers to the hedge fund, private equity and corporate finance industries, has added two senior tax industry practitioners to its growing team.
The company also has expertise in helping US hedge fund managers relocate and set-up in the UK.
Raminder Chowdhary has joined as the firm’s new Head of VAT, while Stephen Smith has assumed the role of Tax Manager.
Raminder Chowdhary joined from KPMG where he specialised in VAT matters relating to UK and European financial services. He was previously VAT Manager at Vantis Plc. Raminder started his career with Deloitte & Touche.
Stephen Smith joins Throgmorton from the international accountancy firm Mazars where he has spent the last 12 years. A business tax specialist, Stephen has 15 years experience, encompassing start-ups, corporate and partnership tax compliance, tax planning and transaction tax.
“We are delighted that Raminder and Stephen have joined." Andrew Rubio, Throgmorton CEO, said "Our employees are our greatest assets. We quickly develop a complete understanding of our client’s operations and become a fully integrated function of their business. Throgmorton’s core values are integrity, transparency, collegiality and quality and Raminder and Stephen exemplify these."
The company also has expertise in helping US hedge fund managers relocate and set-up in the UK.
Raminder Chowdhary has joined as the firm’s new Head of VAT, while Stephen Smith has assumed the role of Tax Manager.
Raminder Chowdhary joined from KPMG where he specialised in VAT matters relating to UK and European financial services. He was previously VAT Manager at Vantis Plc. Raminder started his career with Deloitte & Touche.
Stephen Smith joins Throgmorton from the international accountancy firm Mazars where he has spent the last 12 years. A business tax specialist, Stephen has 15 years experience, encompassing start-ups, corporate and partnership tax compliance, tax planning and transaction tax.
“We are delighted that Raminder and Stephen have joined." Andrew Rubio, Throgmorton CEO, said "Our employees are our greatest assets. We quickly develop a complete understanding of our client’s operations and become a fully integrated function of their business. Throgmorton’s core values are integrity, transparency, collegiality and quality and Raminder and Stephen exemplify these."
Sports Hedge Fund Launch
HedgeCo News - Hedge fund Centaur Group has launched the Centaur Galileo fund in London, investing in soccer, tennis and horse racing, The Los Angeles Times reported on Sunday.
The hedge fund claims to have a number-crunching betting system. The paper says that Galileo is probably the first hedge fund to make bets on sports events.
"We put numbers against those things that you and me and everyone in pubs have casual discussions about," Tony Woodhams, the managing director at Centaur Group said in an interview with The Los Angeles Times. "That gives us an edge on these markets."
Like other more "traditional" hedge funds, Galileo requires 100,000 euros ($135,000) minimum investment. The hedge fund also plans to make money off fluctuations in odds and point spreads that are affected by amateur bets, the paper said.
"You have a lot of sports fans who are betting for their favorite team," Woodhams said. "They get excited and discipline goes out the window. All of that provides opportunity for a trader like us to go in a very clinical manner. That's where the edge is."
Domiciled in Gibraltar, Centaur will have 25 traders working on its London trading floor. The hedge fund is only open to UK investors at the moment but the company is applying for SEC approval in the US next year.
16 Apr 2010
Hedge Fund Radio returns to Resonance FM: Monday, April 19
Stuart MacDonald posted on LinkedIn:
You are cordially invited to listen to the Monday, April 19th edition of the N@ked Short Club: 9-10pm/ 21.00-22.00 hrs., London time on not-for profit radio station, Resonance 104.4FM
The Guardian calls it: “the best radio station in London”
The Village Voice: “the best radio station in the world”
One hour of loose talk about hedge funds and the state of the world, plus sublime poetry and heady music... Nothing to do with anyone's day job, no promotional agenda, no commercial intent...just light relief in these interesting times.
Host: Dr. Stu and a team of Level 2 FAS 157 therapists will help callers to the Emergency Hedge Fund Helpline (1-800-DISTRESSED) to restore their Inner Fair Value frameworks.
Special guests:
* Dr. Chris Jones, CIO at Key/ Fellow at the Judge Institute, Cambridge University
* Chris Keen, Partner at Culross
* Gus Black, Partner at lawyers, Dechert; UCITS/ NewCITS expert
* Marilyn Ramplin, CEO of Ramplin Capital/ UCITS for Hedge Funds
* Thomas Bullman, Founder of the ground breaking Hedge Fund College and Hedge Fund Society
* Harriet Agnew from Financial News/ Dow Jones
* Thomas Deinet from the Hedge Fund Standards Board
Listen to the show within London on 104.4FM. Access it worldwide via resonancefm.com
The show will be broadcast again from 3-4pm/ 15.00-16.00 hrs., London time on Thursday, April 22.
Feedback to doctorstu@resonancefm.com
SkyBridge Acquire 3 of Citi’s Hedge Fund Businesses
HedgeCo News - SkyBridge Capital has agreed to buy the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses from Citi Alternative Investments, LLC (CAI), with total investments under management and advisory of $4.2 billion.
“It has been our belief for several years that the integration of a fund of hedge funds business is a natural fit with the SkyBridge platform, and this deal is a result of our long-term strategy to acquire assets that maximize value for investors,” said Anthony Scaramucci, managing partner of SkyBridge Capital.
The transaction will position SkyBridge as one of the leading global alternative asset managers with a total of $5.6 billion in assets under management and advisory and solidifies the firm as a global leader in hedge fund incubation. Terms of the transaction were not disclosed.
“It has been our belief for several years that the integration of a fund of hedge funds business is a natural fit with the SkyBridge platform, and this deal is a result of our long-term strategy to acquire assets that maximize value for investors,” said Anthony Scaramucci, managing partner of SkyBridge Capital.
The transaction will position SkyBridge as one of the leading global alternative asset managers with a total of $5.6 billion in assets under management and advisory and solidifies the firm as a global leader in hedge fund incubation. Terms of the transaction were not disclosed.
Hedge Funds up 3.09% for the First Quarter of 2010
HedgeCo News - Final performance for the Credit Suisse/Tremont Hedge Fund Index ("Broad Index") is confirmed up 2.22% in March.
"The Credit/Suisse Tremont Hedge Fund Index returned 2.22% in March, finishing the first quarter of 2010 up 3.09%." Oliver Schupp, President of Credit Suisse Index Co., Inc., said, "Nine out of ten sectors posted positive performance for the month and top performing sectors included Managed Futures (+4.25%), Emerging Markets (+3.89%) and Long/Short Equity (+2.99%).
"Gains in the Managed Futures space were largely due to positive performance among trend followers who generated profits across equity, commodity and currency markets. Emerging Markets and Long/Short Equity managers capitalized on both global equity market rallies and an increase in investor appetite for risky assets. Conversely, Dedicated Short Bias managers posted the weakest performance this month, down 6.61%." Schupp concluded.
The Credit Suisse/Tremont Hedge Fund Index ("Broad Index") is one of the industry's premier asset-weighted hedge fund indices. Unlike equal-weighted indices, the Broad Index does not underweight top performers and overweight decliners in seeking to provide the most accurate representation of the hedge fund universe.
"The Credit/Suisse Tremont Hedge Fund Index returned 2.22% in March, finishing the first quarter of 2010 up 3.09%." Oliver Schupp, President of Credit Suisse Index Co., Inc., said, "Nine out of ten sectors posted positive performance for the month and top performing sectors included Managed Futures (+4.25%), Emerging Markets (+3.89%) and Long/Short Equity (+2.99%).
"Gains in the Managed Futures space were largely due to positive performance among trend followers who generated profits across equity, commodity and currency markets. Emerging Markets and Long/Short Equity managers capitalized on both global equity market rallies and an increase in investor appetite for risky assets. Conversely, Dedicated Short Bias managers posted the weakest performance this month, down 6.61%." Schupp concluded.
The Credit Suisse/Tremont Hedge Fund Index ("Broad Index") is one of the industry's premier asset-weighted hedge fund indices. Unlike equal-weighted indices, the Broad Index does not underweight top performers and overweight decliners in seeking to provide the most accurate representation of the hedge fund universe.
15 Apr 2010
SEC Actively Recruiting Hedge Fund Managers
HedgeCo News - Bloomberg reports that hedge fund managers are being recruited by the SEC to boost oversight of the $14 trillion hedge fund industry.
“The fund world has become much more sophisticated and complex over the last decade,” said Steve Crimmins, a former SEC trial lawyer now at K&L Gates LLP, which represents asset managers. “The SEC hasn’t had the resources or the full expertise needed to keep pace.”
“The fund world has become much more sophisticated and complex over the last decade,” said Steve Crimmins, a former SEC trial lawyer now at K&L Gates LLP, which represents asset managers. “The SEC hasn’t had the resources or the full expertise needed to keep pace.”
The hedge fund SEC task force is looking for managers and people with “direct exposure to trading and operations” at hedge funds, Bloomberg said. The ad for 5 new recruits was posted by the SEC last month.
The SEC currently has five specialty units targeting financial misconduct ranging from insider trading to corporate bribery, the paper said.
The number of registered investment advisers jumped 50 percent to more than 11,000 from 2002 to 2009, excluding many offshore hedge funds and un-declared funds, according to officials.
The application period is set to close April 19.
Salida Capital Launches Private Equity Fund
HedgeCo News - Canadian alternative investor and fund of hedge fund manager, Salida Capital, is launching a private equity fund focused on the natural resources space. The fund’s official marketing period will begin in May and continue for a 6 to 8 month period, or until it has hit its targeted maximum capital commitment.
“We’re extremely excited about the opportunities we see for our private equity fund,” Courtenay Wolfe, President & CEO of Salida Capital, said. “It’s an area we’ve been planning on venturing into for awhile, and we are pleased to announce that we have already secured a $100 million seed investment for the fund prior to its official launch.”
"We manage our funds within a disciplined risk management framework that has predetermined limits on the percentage of privates that can be held in a fund,” Ms. Wolfe said. “Many of our investors have asked for a longer term time horizon for investing, wishing to access some of the great private investment opportunities we are seeing in the natural resources space.”
The anchor investment comes from Bill Gallacher, President and CEO of Avenir Capital. Gallacher has been involved with the start-up of a number of junior energy companies in Calgary and currently sits on the board of directors of Athabasca Oil Sands Corporation, as well as Maxim Power Corp., Mahalo Energy Ltd., Black Diamond Group Inc. and Avenir Diversified Income Trust.
“My relationship with Salida goes back many years. I’m a huge supporter and friend of the firm and am optimistic about the future of this relationship.” Gallacher said.
Salida Capital manages approximately $650 million for a growing global client base of family offices, high net worth individuals, institutions and fund of hedge funds. Salida said they are also looking to add an oil & gas analyst to their investment team in the upcoming weeks.
“We’re extremely excited about the opportunities we see for our private equity fund,” Courtenay Wolfe, President & CEO of Salida Capital, said. “It’s an area we’ve been planning on venturing into for awhile, and we are pleased to announce that we have already secured a $100 million seed investment for the fund prior to its official launch.”
"We manage our funds within a disciplined risk management framework that has predetermined limits on the percentage of privates that can be held in a fund,” Ms. Wolfe said. “Many of our investors have asked for a longer term time horizon for investing, wishing to access some of the great private investment opportunities we are seeing in the natural resources space.”
The anchor investment comes from Bill Gallacher, President and CEO of Avenir Capital. Gallacher has been involved with the start-up of a number of junior energy companies in Calgary and currently sits on the board of directors of Athabasca Oil Sands Corporation, as well as Maxim Power Corp., Mahalo Energy Ltd., Black Diamond Group Inc. and Avenir Diversified Income Trust.
“My relationship with Salida goes back many years. I’m a huge supporter and friend of the firm and am optimistic about the future of this relationship.” Gallacher said.
Salida Capital manages approximately $650 million for a growing global client base of family offices, high net worth individuals, institutions and fund of hedge funds. Salida said they are also looking to add an oil & gas analyst to their investment team in the upcoming weeks.
14 Apr 2010
Hedge Fund Seeder Partners With UK Statistical Research Laboratory
HedgeCo.net - Hedge fund seeder, Revere Capital Advisors LLC has launched an equity partnership with Statistical Research Laboratory (SRL), a UK based technology company.
New York, London and Singapore based, Revere was founded by former Man Group CFO Dan Barnett, as well as other former senior executives of hedge fund Man Group, including Harvey McGrath and Michael Stone.
“Revere is delighted to be partnering with SRL, a company that is at the forefront of the institutionalization of the asset management industry." Barnett said, "The partnership allows Revere and our clients to monitor investments on a real time basis as well as respond to the increasing demand of clients requesting a managed account solution.”
Revere currently provides capital, advisory expertise, sales and distribution and technology infrastructure to its partner hedge fund managers.
Current Revere partner managers include: Dickson Capital Management, a European long/short equity fund based in London, Broadmark Asset Management, a tactical allocation long/short equity fund based in San Francisco and Bayswater Asset Management, a systematic global macro manager also based in San Francisco.
New York, London and Singapore based, Revere was founded by former Man Group CFO Dan Barnett, as well as other former senior executives of hedge fund Man Group, including Harvey McGrath and Michael Stone.
“Revere is delighted to be partnering with SRL, a company that is at the forefront of the institutionalization of the asset management industry." Barnett said, "The partnership allows Revere and our clients to monitor investments on a real time basis as well as respond to the increasing demand of clients requesting a managed account solution.”
Revere currently provides capital, advisory expertise, sales and distribution and technology infrastructure to its partner hedge fund managers.
Current Revere partner managers include: Dickson Capital Management, a European long/short equity fund based in London, Broadmark Asset Management, a tactical allocation long/short equity fund based in San Francisco and Bayswater Asset Management, a systematic global macro manager also based in San Francisco.
12 Apr 2010
UCITS Hedge Fund Strategy Index Gains 0,79% in April
HedgeCo News - After a strong performance in March the UCITS Hedge Fund Strategy Index showed no signs of weakness in the first week of April (by business day 5, April 8th 2010).
The broad index gained 0,79% as every strategy was positive, the most successful being Credit (1,99%), Global Macro (1,81%) and Convertible (1,29%). These three strategies continue to be the most successful strategies in 2010, bringing the UCITS HFS Index to a year to date performance of 3,04%.
The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS III funds that apply absolute return strategies, have more than €10 million ($13.5 million) of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.
The broad index gained 0,79% as every strategy was positive, the most successful being Credit (1,99%), Global Macro (1,81%) and Convertible (1,29%). These three strategies continue to be the most successful strategies in 2010, bringing the UCITS HFS Index to a year to date performance of 3,04%.
The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS III funds that apply absolute return strategies, have more than €10 million ($13.5 million) of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.
LandColt Launches Mutual Fund Model Focused on Precious Metals
Hedgeco News - Alternative trading solutions expert, LandColt Trading, LLC has launched a new investment model, The LandColt Trading Precious Metals Model, which will concentrate on the gold market. The new model capture returns on the upside, and downside, of the market, while emulating the Dow Jones Precious Metals Index.
“We have received many inquiries from investors and traders asking us to launch additional trading models,” said Todd M. Schoenberger, Managing Director of LandColt Trading, LLC. “The success of our Oil & Gas Model really helped incorporate the same investment philosophy into other sectors. We believe the new Precious Metals Model can help investors who wish to incorporate a gold methodology into their portfolios.”
The Precious Metals Model uses the same investment logic as its cousin, the LandColt Trading Oil & Gas Model, which has posted a year-to-date return of 20.80% through April 7th. The official start date for the new Precious Metals Model was April 1st, and it has a return of 9.01% through April 7th.
The LandColt Trading Precious Metals Model uses only three no-load mutual funds, all of which permit frequent trading without penalty. The three funds, all created by the ProFunds Mutual Fund family, are as follows:
1. ProFunds Precious Metals UltraSector Fund (PMPIX)
2. ProFunds Short Precious Metals Fund (SPPIX)
3. ProFunds U.S. Government Plus Bond Fund (GVPIX)
LandColt Trading's mission is to proactively and ethically offer trading solutions for a client's "explore" investments with a passion for calculated risk-taking and thorough due diligence. The firm’s core product is its LandColt Trading Oil & Gas Model, which sells its trading signal and can be purchased as a subscription service.
“We have received many inquiries from investors and traders asking us to launch additional trading models,” said Todd M. Schoenberger, Managing Director of LandColt Trading, LLC. “The success of our Oil & Gas Model really helped incorporate the same investment philosophy into other sectors. We believe the new Precious Metals Model can help investors who wish to incorporate a gold methodology into their portfolios.”
The Precious Metals Model uses the same investment logic as its cousin, the LandColt Trading Oil & Gas Model, which has posted a year-to-date return of 20.80% through April 7th. The official start date for the new Precious Metals Model was April 1st, and it has a return of 9.01% through April 7th.
The LandColt Trading Precious Metals Model uses only three no-load mutual funds, all of which permit frequent trading without penalty. The three funds, all created by the ProFunds Mutual Fund family, are as follows:
1. ProFunds Precious Metals UltraSector Fund (PMPIX)
2. ProFunds Short Precious Metals Fund (SPPIX)
3. ProFunds U.S. Government Plus Bond Fund (GVPIX)
LandColt Trading's mission is to proactively and ethically offer trading solutions for a client's "explore" investments with a passion for calculated risk-taking and thorough due diligence. The firm’s core product is its LandColt Trading Oil & Gas Model, which sells its trading signal and can be purchased as a subscription service.
9 Apr 2010
Is Cyprus Missing From Your Global Footprint? New strategies for multi Jurisdiction management
HedgeCo Blogs - The Cyprus Embassy Trade Center is hosting a seminar: "New strategies for multi Jurisdiction management", on Wednesday, April 14, 2010 at the Harvard Club of New York.
A recent UN report calls Cyprus “the forerunner model for the future of corporate holding jurisdictions and international business centers.” Cyprus, is a clearly defined leader in global commerce that gives you unprecedented transparency and stability to respond to the new realities of today's marketplace.
Seminar Agenda:
* 1. Cyprus as an Intermediate Jurisdiction - Considerations for U.S. investors when investing through Cyprus:
- Uses of jurisdictions as related to corporate activities
- Tax benefits of Cyprus Based Funds
- Fund Structures
- Cyprus as a central platform solution for Multinational
* Administrative issues and solutions:
- Addressing the current issues of administration facing MNC s and Hedge Funds
* Issues of Taxation in a multi jurisdiction solution
* Legal framework
* Administrative requirements as related to Hedge Funds
- Defining the capacity of Cyprus as a central administrative hub within the global footprint of your company
This private event is an opportunity to meet with leading global legal, administrative and corporate structure specialists, defining relevant multi jurisdiction strategies, tax efficiencies, opportunities for minimizing costs and limiting liability.
Panelists include:
* Michael F. Mavrides, partner: Bingham McCutchen LLP
Named one of the leading up-and-coming attorneys in the U.S., The Lawdragon 500 New Stars, New Worlds Mike Mavrides is a Member of the American Bar Association and New York State Bar Association and focuses on working with hedge funds. His practice includes counselling domestic and offshore private investment funds, funds of funds, and other pooled investment vehicles, including general equity funds, arbitrage funds, market neutral, small cap, global investment and emerging market funds, distressed debt funds, multi-manager funds, group trusts for employee benefit plans and commodity pools.
* Dr. Christodoulos G. Pelaghias, Attorney-at-Law, Law Offices of Christodoulos G. Pelaghias
Dr. Pelaghias holds a postgraduate degree in International Affairs, as well as J.D and Ph.D. degrees (in Law and Political Science) from Columbia University. He is admitted to practice Law in New York and Cyprus. He served as adviser to the Cyprus Mission at the UN, is a fellow of the World Policy Institute in New York and the Western European Institute of Columbia University.
The Law Offices of Chr. G. Pelaghias & Co is a Cyprus based law firm which dates back to the early 1950s. The firm’s main practise areas are corporate law, international taxation, finance law and EU-law. Pelaghias & Co focuses exclusively on international clients, and the firm has a long history of accommodating clients despite geographic boundaries or complexity.
Seaward Management Ltd. is a corporate management firm established by Pelaghias & Co in 1986 with a broad scope of Administrative and management services that include corporate and tax planning for a wide spectrum of clients. Seaward was one of the first service providers in Cyprus to set-up and manage holding and investment structures in Russia and the NIS on behalf of major U.S. investment funds. In 1999 Seaward also became the first Cypriot company to list a foreign public company on the Cyprus Stock Exchange.
A recent UN report calls Cyprus “the forerunner model for the future of corporate holding jurisdictions and international business centers.” Cyprus, is a clearly defined leader in global commerce that gives you unprecedented transparency and stability to respond to the new realities of today's marketplace.
Seminar Agenda:
* 1. Cyprus as an Intermediate Jurisdiction - Considerations for U.S. investors when investing through Cyprus:
- Uses of jurisdictions as related to corporate activities
- Tax benefits of Cyprus Based Funds
- Fund Structures
- Cyprus as a central platform solution for Multinational
* Administrative issues and solutions:
- Addressing the current issues of administration facing MNC s and Hedge Funds
* Issues of Taxation in a multi jurisdiction solution
* Legal framework
* Administrative requirements as related to Hedge Funds
- Defining the capacity of Cyprus as a central administrative hub within the global footprint of your company
This private event is an opportunity to meet with leading global legal, administrative and corporate structure specialists, defining relevant multi jurisdiction strategies, tax efficiencies, opportunities for minimizing costs and limiting liability.
Panelists include:
* Michael F. Mavrides, partner: Bingham McCutchen LLP
Named one of the leading up-and-coming attorneys in the U.S., The Lawdragon 500 New Stars, New Worlds Mike Mavrides is a Member of the American Bar Association and New York State Bar Association and focuses on working with hedge funds. His practice includes counselling domestic and offshore private investment funds, funds of funds, and other pooled investment vehicles, including general equity funds, arbitrage funds, market neutral, small cap, global investment and emerging market funds, distressed debt funds, multi-manager funds, group trusts for employee benefit plans and commodity pools.
* Dr. Christodoulos G. Pelaghias, Attorney-at-Law, Law Offices of Christodoulos G. Pelaghias
Dr. Pelaghias holds a postgraduate degree in International Affairs, as well as J.D and Ph.D. degrees (in Law and Political Science) from Columbia University. He is admitted to practice Law in New York and Cyprus. He served as adviser to the Cyprus Mission at the UN, is a fellow of the World Policy Institute in New York and the Western European Institute of Columbia University.
The Law Offices of Chr. G. Pelaghias & Co is a Cyprus based law firm which dates back to the early 1950s. The firm’s main practise areas are corporate law, international taxation, finance law and EU-law. Pelaghias & Co focuses exclusively on international clients, and the firm has a long history of accommodating clients despite geographic boundaries or complexity.
Seaward Management Ltd. is a corporate management firm established by Pelaghias & Co in 1986 with a broad scope of Administrative and management services that include corporate and tax planning for a wide spectrum of clients. Seaward was one of the first service providers in Cyprus to set-up and manage holding and investment structures in Russia and the NIS on behalf of major U.S. investment funds. In 1999 Seaward also became the first Cypriot company to list a foreign public company on the Cyprus Stock Exchange.
7 Apr 2010
CalSTRS Launch 3-Year Hedge Fund Pilot Project
HedgeCo News - The California State Teachers’ Retirement System (CalSTRS) is looking to hire a hedge fund consultant. CalSTRS said they are seeking a consultant to help select, monitor and assess hedge fund managers for a global macro strategy the fund will be undertaking.
CalSTRS is the second largest public pension fund in the United States. The selected firm will help the $132.5 billion public pension fund initiate, monitor and assess a global macro hedge fund strategy for its new absolute return asset class. The strategy will undergo an incubation period of not more than three years.
CalSTRS staff will work with the consultant to select three to six hedge fund managers who will invest a $200 million commitment in global macro strategies. Within the three-year period, the CalSTRS board will determine whether to expand or terminate the strategy.
During the three-year period, the global macro hedge fund strategy will be part of the innovation portfolio, which is charged with incubating new investment opportunities outside the traditional asset classes that CalSTRS currently uses. The purpose is to try out new investment strategies and to determine their success before committing large dollar amounts to them.
CalSTRS is the second largest public pension fund in the United States. The selected firm will help the $132.5 billion public pension fund initiate, monitor and assess a global macro hedge fund strategy for its new absolute return asset class. The strategy will undergo an incubation period of not more than three years.
CalSTRS staff will work with the consultant to select three to six hedge fund managers who will invest a $200 million commitment in global macro strategies. Within the three-year period, the CalSTRS board will determine whether to expand or terminate the strategy.
During the three-year period, the global macro hedge fund strategy will be part of the innovation portfolio, which is charged with incubating new investment opportunities outside the traditional asset classes that CalSTRS currently uses. The purpose is to try out new investment strategies and to determine their success before committing large dollar amounts to them.
6 Apr 2010
Goldman Sachs Invests In $4 Billion Hedge Fund
Goldman Sachs’s Petershill Fund Offshore LP, a $1 billion fund set up buy hedge fund shares has bought a minority stake in a $4 billion hedge fund, according to a Bloomberg report.
The New York hedge fund, Level Global Investors LP., founded by David Ganek, bets on the global rise and fall of stock prices employing long/short strategy to make its investments. The firm typically invests in technology and financial sectors. Level Global Investors was founded in 2003 and is based in Greenwich, Connecticut with an additional office in New York, New York.
“We believe this investment by Petershill is an important milestone in the continued development of Level Global’s investment management platform as an institutional quality business,” managing partners David Ganek and Anthony Chiasson said in a letter to shareholders, which was first published by Bloomberg news.
1 Apr 2010
Cayman Islands & Australia Sign Tax Information Exchange Agreement
HedgeCo Blogs - The Cayman Islands signed its fifteenth tax information exchange agreement with Australia on Tuesday, during a ceremony held at the Australian embassy in Washington, D.C.
“The Cayman Islands Government is pleased to have signed this agreement with our Australian counterparts and we look forward to many years of cooperation between our two countries as part of our global commitment to upholding international standards of tax transparency and accountability,” said the Premier, the Honourable W. McKeeva Bush.
The Premier was accompanied at the signing by three members of the Cayman Islands TIEA negotiating team: The Honourable Samuel Bulgin, Attorney General, Mr George McCarthy, Chairman of the Cayman Islands Monetary Authority, and; Mrs Michelle Bahadur, Director of the Financial Services Secretariat, Ministry of Finance.
“We believe this agreement will reinforce an already solid relationship that exists between Australia and the Cayman Islands, as Cayman’s excellent professional infrastructure, effective legal and regulatory framework and stable business environment are well-known amongst Australian private equity and hedge fund firms.” the Premier, said.
The Cayman Islands is successfully concluding negotiations with several OECD and G-20 countries and the Government anticipates signing a number of additional agreements over the coming months.
GreenTech and the Obama Budget
New York (HedgeCo.net) – GreenWorld Capital reports: “President Obama has put his weight behind a new budget that sends a clear message: despite Congressional gridlock, the administration will push forward on cleantech. The budget reflects Obama’s promise to triple US cleantech investment over the next four years as well as his G20 pledge to phase out fossil fuel subsidies. Cleantech has become a centerpiece of the Obama budget and the administration has made it clear that it will use the president’s veto power to get this budget passed. “
Following is a summary by agency:
- Department of Energy: $3-5 billion in loan guarantees for energy efficiency and renewable energy, $4.7 billion in cleantech investment and $144 million for smart-grid research;
- Department of the Interior: $73 million for fast-tracking permits for renewable energy projects on federal lands, with a goal of offering permits for at least 9,000 megawatts of new solar, wind, and geothermal electricity by the end of 2011, plus $85 million to foster 14,000 new green jobs;
- Department of Transportation: $530 million for sustainable transportation; and
- Environmental Protection Agency: $21 million to implement the Mandatory Greenhouse Gas Reporting Rule and $56 million to address climate change through regulatory initiatives.
The biggest winners over last year’s budget are solar, GreenWorld Capital says, wind and geothermal, which will see annual increases in the range of 25%-50%. The big loser will be petroleum. The budget eliminates $36.5 billion in tax breaks to the oil and natural gas industry and cuts $2.3 billion for the coal sector between 2011 and 2020. In 2008, the Senate curtailed Obama’s attempts to cut petroleum subsidies. However, this year’s emphasis on fiscal responsibility gives Obama cover to fight the petroleum lobby. The other rallying point is US economic recovery. Obama has argued that cleantech investment will fuel US economic growth, a message underscored in his 2010 State of the Union Address.
Meridian Hedge Funds Lose Case Against Madoff 's "Feeder Fund" Auditor
HedgeCo News - The U.S. District Court in Manhattan has ruled that KPMG LLP cannot be sued for its ties with a hedge fund which was found to be a "feeder fund" for Madoff.
The accounting firm won dismissal yesterday, "Because it lacked actual intent to deceive, manipulate, or defraud the investors in the funds that brought the suit." Judge Thomas Griesa said, according to a Reuters report.
KPMG audited hedge fund manager Tremont Partners, which Meridian Horizon Fund and other affiliated hedge funds claim received fees for investing enormous amounts of money with Madoff, Reuters said.
The Meridian hedge funds claim that the auditors should have noticed something wrong, as Tremont lost more than $3 billion investing in the ponzi scheme. However, the Judge ruled, that, "Merely alleging that the auditor had access to the information by which it could have discovered the fraud is not sufficient."
The accounting firm won dismissal yesterday, "Because it lacked actual intent to deceive, manipulate, or defraud the investors in the funds that brought the suit." Judge Thomas Griesa said, according to a Reuters report.
KPMG audited hedge fund manager Tremont Partners, which Meridian Horizon Fund and other affiliated hedge funds claim received fees for investing enormous amounts of money with Madoff, Reuters said.
The Meridian hedge funds claim that the auditors should have noticed something wrong, as Tremont lost more than $3 billion investing in the ponzi scheme. However, the Judge ruled, that, "Merely alleging that the auditor had access to the information by which it could have discovered the fraud is not sufficient."
31 Mar 2010
BNY Mellon Named Asia's Best Hedge Fund Administrator
HedgeCo News - BNY Mellon was named Best Fund Administrator - Hedge Funds and Best in Corporate Trust for the at The Asset magazine's Triple A Transaction Banking Awards 2010.
Scooping six accolades including the title of Best Global Custodian in Asia for the third consecutive year, BNY Mellon's Corporate Trust division also walked away with the trophies for Australia, Korea and India.
"Hedge funds are increasingly turning to BNY Mellon not only because of our global strengths, but also because of our sophisticated local capabilities in the region." Andrew Gordon, Head of Alternative Investment Services for Asia at BNY Mellon, said, "They believe it is vital to choose a partner which has a long term commitment to Asia. This award underlines the strengths of our offering and shows that our focus on quality and service excellence over the last three years has paid off handsomely."
BNY Mellon has $22.3 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $12 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day.
Scooping six accolades including the title of Best Global Custodian in Asia for the third consecutive year, BNY Mellon's Corporate Trust division also walked away with the trophies for Australia, Korea and India.
"Hedge funds are increasingly turning to BNY Mellon not only because of our global strengths, but also because of our sophisticated local capabilities in the region." Andrew Gordon, Head of Alternative Investment Services for Asia at BNY Mellon, said, "They believe it is vital to choose a partner which has a long term commitment to Asia. This award underlines the strengths of our offering and shows that our focus on quality and service excellence over the last three years has paid off handsomely."
BNY Mellon has $22.3 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $12 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day.
Fund.com Expands Hedge Fund & ETF Operations With The Acquisition Of Weston Capital Management
HedgeCo News - New York hedge fund manager, Fund.com, Inc., has acquired a $1 billion hedge fund distributor based in West Palm Beach Fl., Weston Capital Management, LLC.
“With Weston Capital’s proven capability to seed new fund products, combined with its seasoned global institutional sales force, Fund.com is now positioned to capture revenue streams from an array of hedge fund and actively managed ETFs.” Gregory Webster, CEO at Fund.com, said.
Founded in 1993, Weston originates and markets fund of funds, single-manager hedge funds and raises capital to seed new hedge funds. In 2010, Weston Capital formed a strategic alliance for investment manager identification and fund seeding with Harcourt AG, a $4.5 billion alternative investments manager that is majority owned by Vontobel Group, the $70 billion Swiss banking group, is a leading global advisor of alternative investments for institutional investors.
Under the Harcourt strategic alliance, Weston Capital and Harcourt will seed and develop new hedge fund businesses via Weston Capital’s incubation platform. The alliance combines Weston’s extensive experience in early stage hedge fund investing and marketing with Harcourt’s proven investment expertise in global manager selection, due diligence and risk management.
Weston Capital founder Albert Hallac continues as CEO of Weston Capital, directing its day-to-day operations and business strategy. In addition, Fund.com Chairman Joseph J. Bianco will become Chairman of Weston Capital. Weston Capital also has offices in London and New York City.
Since January 2004, Weston Capital’s hedge fund seeding platform (via the Weston-Atlas Partners Fund and the Weston Capital Partners Fund II) has provided sponsor capital for 13 emerging hedge fund managers. Weston intends to raise $250 million for its third incubation fund, Partners III, which will seed both hedge funds and actively managed ETFs, with Harcourt providing investment infrastructure and risk management.
“With Weston Capital’s proven capability to seed new fund products, combined with its seasoned global institutional sales force, Fund.com is now positioned to capture revenue streams from an array of hedge fund and actively managed ETFs.” Gregory Webster, CEO at Fund.com, said.
Founded in 1993, Weston originates and markets fund of funds, single-manager hedge funds and raises capital to seed new hedge funds. In 2010, Weston Capital formed a strategic alliance for investment manager identification and fund seeding with Harcourt AG, a $4.5 billion alternative investments manager that is majority owned by Vontobel Group, the $70 billion Swiss banking group, is a leading global advisor of alternative investments for institutional investors.
Under the Harcourt strategic alliance, Weston Capital and Harcourt will seed and develop new hedge fund businesses via Weston Capital’s incubation platform. The alliance combines Weston’s extensive experience in early stage hedge fund investing and marketing with Harcourt’s proven investment expertise in global manager selection, due diligence and risk management.
Weston Capital founder Albert Hallac continues as CEO of Weston Capital, directing its day-to-day operations and business strategy. In addition, Fund.com Chairman Joseph J. Bianco will become Chairman of Weston Capital. Weston Capital also has offices in London and New York City.
Since January 2004, Weston Capital’s hedge fund seeding platform (via the Weston-Atlas Partners Fund and the Weston Capital Partners Fund II) has provided sponsor capital for 13 emerging hedge fund managers. Weston intends to raise $250 million for its third incubation fund, Partners III, which will seed both hedge funds and actively managed ETFs, with Harcourt providing investment infrastructure and risk management.
30 Mar 2010
Vegas Hedge Fund Sued For $8.2 Million
HedgeCo News - Ethan Conrad, Frank Sim and Harrold Pressly, are being accused of running a bogus hedge fund, the Black Card Group. The allegations, according to Courthouse News Services, claim a family was cheated out of $8 million which the 'hedge fund managers' then spent on luxury vehicles and resort property.
Ex IBM SVP Pleads Guilty To Hedge Fund Insider Trading
Hedgeco News - Robert Moffat, Jr., a former senior executive at International Business Machines Corp. (IBM), pleaded guilty in the Manhattan federal court to conspiracy and securities fraud stemming from his involvement in the largest US hedge fund insider trading case in history. Hedge fund founder Raj Rajaratnam v. SEC.
"Moffat's guilty plea marks the 11th conviction in this ongoing insider trading investigation." U.S. Attorney Preet Bharara said Together with our partners at the FBI and the SEC, we will continue to protect the integrity of our markets by prosecuting illegal tipping by corporate professionals."
From August to October 2008, Moffat got insider information relating to IBM, Advanced Micro Devices, Inc. (AMD) and Lenovo Group Ltd. (Lenovo), according to information and statements made during the guilty plea proceedings.
Moffat confessed to providing the indider information to to Danielle Chiesi, Rajaratnam's co-defendant. She worked for New Castle Partners, an equity hedge fund group affiliated with JPMorgan Chase & Co.
The court documents reveal that in September 2008, Moffat provided Chiesi with information relating to IBM's and Lenovo's performance in the companies' respective fiscal quarters ending in September 2008.
The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million.
Moffat is scheduled to be sentenced on July 26, 2010, by Judge Buchwald.
29 Mar 2010
Australia Hedge Fund Roundtable Highlight Super Funds, Mezzanine, Retail
HedgeCo News - Opalesque launched the 28th issue in a series of regional roundtable forums, the “Opalesque 2010 Australia Roundtable”. With Matthias Knab, founder of Opalesque and internationally recognized expert on hedge funds and alternatives, moderating, the Opalesque Roundtable discussed the growth of the Aussie pension fund industry.
Leading Australian hedge funds discussed what opportunities they see for their funds and strategies going forward. Superannuation Funds explained how they select their hedge funds, and what at the moment excites seeders who work exclusively with Australian funds.
With A$1.2 trillion (US$1,1 trillion), it is now the world's fifth largest investment industry. 9% of every person’s salary in Australia getting invested into a registered superannuation (pension) fund, the country has created one of the fastest growing asset pools worldwide.
Australia has very mature wholesale and retail markets, which both offer unique opportunities for local and global hedge funds, th paper informs.
However, "Be aware of the rules and set-up of those markets." Opalesque warned "Beyond wholesale and retail, the Roundtable also explains how to access a third rapidly growing asset pool, the so-called mezzanine market which is managed by the local dealer groups."
One of the most stunning aspects of the Australian pension fund industry has been the ascent of the Self-Managed Super Funds, where the individual is managing his pension assets himself as a self-directed investor. At the smaller end, a Self-Managed Super Funds may have only $250,000 in assets, through to many millions at the high end. Within just five years, over one third of all superannuation assets have been moved into the 400,000 self-managed super funds.
The domestic Australian hedge fund industry has traditionally been a strong performer and was also able to protect the downside in the crisis of 2008, where the average Australian hedge fund lost 17.74% against the ASX which fell over 40%, the report explains.
At the same time, the global industry fell somewhere between 17% and 21%. In addition, 25% of the 200 plus managers in the Australian Fund Monitors database produced positive returns, and over 90% of them outperformed the ASX200.
The following experts participated:
Bruce Tomlinson, Portfolio Manager, Sunsuper Superannuation Fund
Adrian Redlich, Chief Investment Officer, Merricks Capital
Chris Gosselin, Founder, Australian Fund Monitors
Dominic McCormick, Chief Investment Officer, Select Asset Management
John Corr, Founder, Fortitude Capital
Larry Simon, Co-Founder, Lazorne Group
Nelson Lam, Head of Investments, Ascalon Capital Managers
The 2010 Opalesque Australia Roundtable was sponsored by Australian Fund Monitors and the Opalesque 2010 Roundtable Series sponsors Custom House Group and Taussig Capital.
Leading Australian hedge funds discussed what opportunities they see for their funds and strategies going forward. Superannuation Funds explained how they select their hedge funds, and what at the moment excites seeders who work exclusively with Australian funds.
With A$1.2 trillion (US$1,1 trillion), it is now the world's fifth largest investment industry. 9% of every person’s salary in Australia getting invested into a registered superannuation (pension) fund, the country has created one of the fastest growing asset pools worldwide.
Australia has very mature wholesale and retail markets, which both offer unique opportunities for local and global hedge funds, th paper informs.
However, "Be aware of the rules and set-up of those markets." Opalesque warned "Beyond wholesale and retail, the Roundtable also explains how to access a third rapidly growing asset pool, the so-called mezzanine market which is managed by the local dealer groups."
One of the most stunning aspects of the Australian pension fund industry has been the ascent of the Self-Managed Super Funds, where the individual is managing his pension assets himself as a self-directed investor. At the smaller end, a Self-Managed Super Funds may have only $250,000 in assets, through to many millions at the high end. Within just five years, over one third of all superannuation assets have been moved into the 400,000 self-managed super funds.
The domestic Australian hedge fund industry has traditionally been a strong performer and was also able to protect the downside in the crisis of 2008, where the average Australian hedge fund lost 17.74% against the ASX which fell over 40%, the report explains.
At the same time, the global industry fell somewhere between 17% and 21%. In addition, 25% of the 200 plus managers in the Australian Fund Monitors database produced positive returns, and over 90% of them outperformed the ASX200.
The following experts participated:
Bruce Tomlinson, Portfolio Manager, Sunsuper Superannuation Fund
Adrian Redlich, Chief Investment Officer, Merricks Capital
Chris Gosselin, Founder, Australian Fund Monitors
Dominic McCormick, Chief Investment Officer, Select Asset Management
John Corr, Founder, Fortitude Capital
Larry Simon, Co-Founder, Lazorne Group
Nelson Lam, Head of Investments, Ascalon Capital Managers
The 2010 Opalesque Australia Roundtable was sponsored by Australian Fund Monitors and the Opalesque 2010 Roundtable Series sponsors Custom House Group and Taussig Capital.
26 Mar 2010
Novum Statement on FSA Insider Trading and Hedge Fund Fraud Case
HedgeCo News - The Financial Services Authority (FSA) visited the offices of independent UK securities stockbroker, Novum Securities, on the 23 March in relation to an investigation into a single member of staff, who has been with the firm since July 2009.
Novum Securities said that they have, "been cooperating fully with the investigation and will continue to do so."
In what is being called the largest insider trading crackdown in Britain’s history, an operation was carried out this week by 143 FSA personnel together with officers from the Serious Organised Crime Agency (SOCA).
A junior trader for Moore Capital was arrested at the hedge fund's office in Mayfair and an employee in Deutsche Bank’s office was also taken for questioning. All together, 6 mix men were arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.
Novum Securities said that they have, "been cooperating fully with the investigation and will continue to do so."
In what is being called the largest insider trading crackdown in Britain’s history, an operation was carried out this week by 143 FSA personnel together with officers from the Serious Organised Crime Agency (SOCA).
A junior trader for Moore Capital was arrested at the hedge fund's office in Mayfair and an employee in Deutsche Bank’s office was also taken for questioning. All together, 6 mix men were arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.
J.P. Morgan Funds Wins Five 2010 Lipper Awards
HedgeCo News - J.P. Morgan Funds, the mutual fund arm of J.P. Morgan Asset Management has been recognized by Lipper as a best performer in five categories.
5 Year Performance
JP Morgan Core Bond Fund, Select ranked 1st out of 57 funds in the U.S. Government Funds category. With $14.7 billion in assets, this fund is managed by Douglas Swanson.
JP Morgan Research Market Neutral Fund, Institutional ranked 1st out of 23 funds in the Equity Market Neutral category. With $818 million in assets, this fund is managed by Terance Chen.
3 Year Performance
JP Morgan Core Bond Fund, Ultra ranked 1st out of 63 funds in the Intermediate U.S. Government Funds. With $14.7 billion in assets, this fund is managed by Douglas Swanson.
JP Morgan SmartRetirement 2020 Fund, Institutional ranked 1st out of 109 funds in the Mixed-Asset Target 2020 Funds category. With $405 million in assets, this fund is managed by the J.P. Morgan Global Multi-Assets Group, with Anne Lester as senior portfolio manager.
JP Morgan SmartRetirement 2030 Fund, Institutional ranked 1st out of 106 funds in the Mixed-Asset Target 2030 category. With $358 million in assets, this fund is managed by the J.P. Morgan Global Multi-Assets Group, with Anne Lester as senior portfolio manager.
"These awards clearly demonstrate the strength of our investment capabilities across all asset classes during a very challenging market cycle and over the long-term," said George Gatch, President and CEO of J.P. Morgan Funds.
Cayman Islands on Transparency
The Cayman Islands is concluding a further 16 tax information exchange agreements (TIEAs) with several G-20 jurisdictions of economic significance to the country, in addition to the 14 TIEAs already in place.
The Cayman Islands has also advanced its work with the Organisation for Economic Development and Cooperation (OECD) Global Forum Steering Group, particularly in reference to the recently announced peer review evaluation programme (link to OECD statement).
“The results of our negotiation programme along with the Negotiating Team’s deep involvement in helping shape international standards in tax transparency through active participation in key initiatives is commendable and has been recognised by the OECD and the global community,” said the Premier, the Honourable W. McKeeva Bush, OBE JP. “We look forward to continuing this engagement and doing our part in demonstrating the effectiveness of our transparency regimes and our expertise as a jurisdiction.”
A breakdown of the identified 16 pending TIEAs is as follows:
- An agreement with Australia will be signed in Washington, D.C. on 30 March.
- Agreements have been reached with 6 countries: Aruba, Canada, Germany, Italy, Mexico and South Africa. These agreements, which have been finalised from the Cayman Islands, are with the signatory countries for their authorisation process and confirmation of a signing date.
- Negotiations are in various stages with 9 additional OECD/G-20 countries.
For the Steering Group, the Cayman Islands delegation was able to provide input, guidance and direction on the methodology and terms of reference for the peer review programme. The Cayman Islands will also be an assessor for the peer review programme and a representative from the Ministry of Finance recently participated in the assessor training, as organised by the OECD.
In addition to having input on OECD’s peer review process, the Cayman Islands has been identified in the first cohort of countries to undergo a peer review evaluation. The Financial Services Secretariat, Ministry of Finance, is leading the first phase of this process with supervisory oversight by the Negotiating Team.
This phase of the peer review involves providing comprehensive information on the implementation of Cayman’s tax transparency regimes to OECD assessors, including relevant laws, regulations and guidance notes.
The Cayman Islands is on the Organisation for Economic Cooperation and Development (OECD) ‘white list’ of jurisdictions that substantially implement international tax standards and has 14 bilateral arrangements with the following countries for the provision of tax information: Denmark, Faroe Islands, Finland, France, Greenland, Iceland, Ireland, the Netherlands, Netherlands Antilles, New Zealand, Norway, Sweden, the United States and the United Kingdom.
25 Mar 2010
Morgan Stanley Loses 6 Senior Traders To Hedge Funds
HedgeCo News - Marcin Wiszniewski, a 14 year veteran of Morgan Stanley has quit his job to join the $18.3 billion hedge fund, BlueCrest Capital Management, the Wall Street Journal Reports.
Wiszniewski joins the London hedge fund May 10, as a portfolio manager for the hedge fund’s $500 million BlueCrest Emerging Markets Fund.
Wiszniewski was co-head of European foreign exchange and emerging markets at Morgan Stanley, previous co-heads who have left Morgan Stanley include Bart Turtelboom and Karim Abdel-Motall who were hired by London hedge fund firm GLG Partners.
Wiszniewski is the fourth Morgan Stanley senior trader to leave this year, the newspaper reported. Eric Cole is moving to hedge fund Appaloosa Management. Ahsim Khan is set to join Europe’s largest hedge fund firm, Brevan Howard. Geoffroy Houlot has already left in January to join the $30 billion hedge fund, the Wall Street Journal said.
BlueCrest Capital Management LLP is founded by Michael Platt and William Reeves, both former Managing Directors and senior proprietary traders at JP Morgan, who left to establish BlueCrest in 2000. The Hedge fund is 25% owned by Man Group Holdings.
Wiszniewski joins the London hedge fund May 10, as a portfolio manager for the hedge fund’s $500 million BlueCrest Emerging Markets Fund.
Wiszniewski was co-head of European foreign exchange and emerging markets at Morgan Stanley, previous co-heads who have left Morgan Stanley include Bart Turtelboom and Karim Abdel-Motall who were hired by London hedge fund firm GLG Partners.
Wiszniewski is the fourth Morgan Stanley senior trader to leave this year, the newspaper reported. Eric Cole is moving to hedge fund Appaloosa Management. Ahsim Khan is set to join Europe’s largest hedge fund firm, Brevan Howard. Geoffroy Houlot has already left in January to join the $30 billion hedge fund, the Wall Street Journal said.
BlueCrest Capital Management LLP is founded by Michael Platt and William Reeves, both former Managing Directors and senior proprietary traders at JP Morgan, who left to establish BlueCrest in 2000. The Hedge fund is 25% owned by Man Group Holdings.
Hedge Fund Founder Sued in Atlanta
HedgeCo News - Robert L. Duncan, an Atlanta hedge fund manager is being accused of misleading investors. His fund, Seaside Partners Fund LP. is being sued by an Atlanta trust and two investment managers, the Piedmont Family Office Fund LP and West Mountain Partners LP., according to a report by the Wall Street Journal.
Duncan will appear on Friday in Fulton County Superior Court in Atlanta. His clients allege that Duncan had been faking his performance numbers and forging statements since 2006. The clients claim that Duncan confessed his fraud to them in a private meeting.
The Wall Street Journal spoke to the hedge fund manager by phone and Duncan is reported to have said he was trying to work out how to return his clients' money. "I want everyone to have their money back," said Duncan, without answering further questions.
Seaside Partners Fund has approximately $20 million in assets under management and the alleged fraud is considered to reach $4.5 million.
Duncan will appear on Friday in Fulton County Superior Court in Atlanta. His clients allege that Duncan had been faking his performance numbers and forging statements since 2006. The clients claim that Duncan confessed his fraud to them in a private meeting.
The Wall Street Journal spoke to the hedge fund manager by phone and Duncan is reported to have said he was trying to work out how to return his clients' money. "I want everyone to have their money back," said Duncan, without answering further questions.
Seaside Partners Fund has approximately $20 million in assets under management and the alleged fraud is considered to reach $4.5 million.
24 Mar 2010
London Hedge Fund Raid Update
HedgeCo News - London $14 billion hedge fund, Moore Capital Management was raided yesterday in the crackdown on insider trading, the New York Times reported.
In their first joint operation the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA) searched 16 addresses in London, seizing documents and computers from both residential and business premises.
A junior trader for Moore Capital was arrested at the hedge fund's office in Mayfair and an employee in Deutsche Bank’s office was also taken for questioning the newspaper reported.
All together, 6 mix men were arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.
The FSA alleges that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.
In what is being called the largest crackdown in Britain’s history, the operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation started in late 2007.
Moore Capital said the investigation did not involve any of its own funds and that it was cooperating with authorities.
In their first joint operation the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA) searched 16 addresses in London, seizing documents and computers from both residential and business premises.
A junior trader for Moore Capital was arrested at the hedge fund's office in Mayfair and an employee in Deutsche Bank’s office was also taken for questioning the newspaper reported.
All together, 6 mix men were arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.
The FSA alleges that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.
In what is being called the largest crackdown in Britain’s history, the operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation started in late 2007.
Moore Capital said the investigation did not involve any of its own funds and that it was cooperating with authorities.
23 Mar 2010
Volunteer Day: Hedge Funds for Habitat - NYC
HedgeCo News - The initiative by the hedge fund community, Hedge Funds for Habitat-NYC is hosting a volunteer day on April 2nd. For a minimum contribution of $500, members of the alternative investment community are invited to join their peers on Good Friday and help the group on their latest green project.
Hedge Funds for Habitat-NYC is currently building a 41-unit affordable condominium building on Atlantic in Brooklyn made with environmentally-friendly materials, this will also be the largest multi-family building ever constructed by Habitat for Humanity anywhere in the world.
Led by Stuart Feffer, Co-Chief Executive Officer of Lacrosse Global Fund Services, Hedge Funds for Habitat-NYC is calling on supporters from hedge funds and private equity firms who recognize that there are incredible working families in NYC living in unsafe and overcrowded conditions whose life will be forever be changed with a Habitat home.
Hedge Funds for Habitat-NYC is currently building a 41-unit affordable condominium building on Atlantic in Brooklyn made with environmentally-friendly materials, this will also be the largest multi-family building ever constructed by Habitat for Humanity anywhere in the world.
Led by Stuart Feffer, Co-Chief Executive Officer of Lacrosse Global Fund Services, Hedge Funds for Habitat-NYC is calling on supporters from hedge funds and private equity firms who recognize that there are incredible working families in NYC living in unsafe and overcrowded conditions whose life will be forever be changed with a Habitat home.
FSA Raids 16 Homes And Businesses On Suspicion Of Hedge Fund Insider Trading
In their first joint operation the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA) have this morning searched 16 addresses in London, seizing documents and computers from both residential and business premises.
Six men, including two senior professionals at leading city institutions and one city professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.
The FSA alleges that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.
The operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation that commenced in late 2007.
The FSA has so far secured five sentences of imprisonment (one suspended) in relation to insider dealing: McQuoid and Melbourne in March 2009; Matthew and Neel Uberoi in November 2009 and Malcolm Calvert on 11 March 2010.
The FSA is currently prosecuting three other insider dealing criminal cases: Andrew King, Andrew Rimmington and Michael McFall, with a trial date of 19 April 2010; Christian and Angie Littlewood and Neil Rollins, both with a trial date yet to be fixed.
Six men, including two senior professionals at leading city institutions and one city professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring, the FSA said in a statement.
The FSA alleges that the city professionals passed inside information to traders (either directly or via middlemen) who traded based on this information and have made significant profits as a result.
The operation was carried out by 143 FSA personnel together with officers from SOCA as part of a joint investigation that commenced in late 2007.
The FSA has so far secured five sentences of imprisonment (one suspended) in relation to insider dealing: McQuoid and Melbourne in March 2009; Matthew and Neel Uberoi in November 2009 and Malcolm Calvert on 11 March 2010.
The FSA is currently prosecuting three other insider dealing criminal cases: Andrew King, Andrew Rimmington and Michael McFall, with a trial date of 19 April 2010; Christian and Angie Littlewood and Neil Rollins, both with a trial date yet to be fixed.
22 Mar 2010
UK Bribery Bill Will Give Sharper Teeth To Global Fraud Clampdown
HedgeCo Blogs - Britain looks set to become part of the world’s biggest ever concerted attack on fraud and corruption within financial institutions.
The Bribery Bill – which now seems certain to be passed before the UK General Election – will bring Britain more into line with tough U.S. regulations, according to Complinet, one of the world’s leading suppliers of global finance solutions.
“The new laws will be the most powerful weapons yet in the fight against fraud and deception”, said Chris Pilling, Complinet’s CEO. “They will also be the first step towards worldwide co-ordination of compliance laws among regulators.”
Key parts of the Bribery Bill include making it illegal to bribe a foreign official to obtain or retain business and making it an offence if companies fail to prevent a bribe being paid by their employees or by other firms on their behalf.
Employees face jail sentences of up to ten years and companies could be hit with unlimited fines.
There had been fears that the Bill – currently making its way through the Houses of Parliament – could have been a victim of the timing of the General Election, which looks increasingly likely to be held on May 6th.
Now legislators are confident – because of widespread agreement among the political parties – that the new laws will not run into time difficulties and receive Royal Assent before the Dissolution of Parliament.
“At Complinet, we’ve seen financial companies trying hard to keep up with compliance changes, but the option for strict legal enforcement is necessary as well”, said Pilling. “The Serious Fraud Office (SFO) urgently needs the new powers contained in the Bill to deal with corruption in companies and keep Britain in line with laws which have been introduced in other countries.”
The Bribery Bill – which now seems certain to be passed before the UK General Election – will bring Britain more into line with tough U.S. regulations, according to Complinet, one of the world’s leading suppliers of global finance solutions.
“The new laws will be the most powerful weapons yet in the fight against fraud and deception”, said Chris Pilling, Complinet’s CEO. “They will also be the first step towards worldwide co-ordination of compliance laws among regulators.”
Key parts of the Bribery Bill include making it illegal to bribe a foreign official to obtain or retain business and making it an offence if companies fail to prevent a bribe being paid by their employees or by other firms on their behalf.
Employees face jail sentences of up to ten years and companies could be hit with unlimited fines.
There had been fears that the Bill – currently making its way through the Houses of Parliament – could have been a victim of the timing of the General Election, which looks increasingly likely to be held on May 6th.
Now legislators are confident – because of widespread agreement among the political parties – that the new laws will not run into time difficulties and receive Royal Assent before the Dissolution of Parliament.
“At Complinet, we’ve seen financial companies trying hard to keep up with compliance changes, but the option for strict legal enforcement is necessary as well”, said Pilling. “The Serious Fraud Office (SFO) urgently needs the new powers contained in the Bill to deal with corruption in companies and keep Britain in line with laws which have been introduced in other countries.”
Morgan Stanley's Hedge Fund Division Raises $370 Million For Private Equity Funds
HedgeCo News - Morgan Stanley Alternative Investment Partners (AIP) raised $370 million in commitments for Morgan Stanley AIP Phoenix Global Real Estate Secondaries 2009 LP (Phoenix), a fund dedicated to acquiring secondary interests in opportunistic and value-added private equity real estate funds. The capital raised exceeded AIP's initial $250 million target.
"For the first time ever, investors in private equity real estate funds are selling significant interests in the secondary market, and as a result, we are finding tremendous opportunities to acquire high quality assets at attractive valuations," said Joseph D. Stecher, Head and Chief Investment Officer of AIP Real Estate Fund of Funds. "We are focusing on best-in-class small- to mid-size fund managers globally as we seek to capitalize on several distinct advantages of investing in the secondary market, including the ability to avoid start-up costs and fees, accelerate investment programs and shorten time for realization, and effectively value underlying asset portfolios."
The objective of Phoenix is to target off-market secondary opportunities in private equity real estate funds that have a sustainable strategy for generating superior returns across real estate cycles, an emphasis on strong real estate fundamentals and in-depth knowledge of local markets.
AIP is the fund of funds division of Morgan Stanley Investment Management. AIP manages portfolios of hedge funds, private equity funds and real estate funds for some of the world's largest institutions and high net worth individuals. AIP has offices in West Conshohocken, Pennsylvania; New York; San Francisco; Atlanta; London and Hong Kong.
"For the first time ever, investors in private equity real estate funds are selling significant interests in the secondary market, and as a result, we are finding tremendous opportunities to acquire high quality assets at attractive valuations," said Joseph D. Stecher, Head and Chief Investment Officer of AIP Real Estate Fund of Funds. "We are focusing on best-in-class small- to mid-size fund managers globally as we seek to capitalize on several distinct advantages of investing in the secondary market, including the ability to avoid start-up costs and fees, accelerate investment programs and shorten time for realization, and effectively value underlying asset portfolios."
The objective of Phoenix is to target off-market secondary opportunities in private equity real estate funds that have a sustainable strategy for generating superior returns across real estate cycles, an emphasis on strong real estate fundamentals and in-depth knowledge of local markets.
AIP is the fund of funds division of Morgan Stanley Investment Management. AIP manages portfolios of hedge funds, private equity funds and real estate funds for some of the world's largest institutions and high net worth individuals. AIP has offices in West Conshohocken, Pennsylvania; New York; San Francisco; Atlanta; London and Hong Kong.
Fund Of Hedge Funds ATLIN Completes $11 Million Buyback
HedgeCo News - Swiss $280m fund of hedge funds, ALTIN AG, has completed its 10% share buyback program initiated in July 2009. ALTIN repurchased 248,279 of its shares for a total of CHF 12.7 million ($11.95 million) corresponding to 5% of the share capital of ALTIN.
As of 1 Jan 2010 ALTIN was fully invested in hedge funds with 15.26% allocated to Macro strategy, 29.71% in Equity Long/Short, 2.58% in Equity long bias, 3.70% in Equity Arbitrage strategy, 3.70% in Event Driven, 3.64% in Fixed Income, 3.54% in Convertible Bonds, 13.38% in Credit Strategy, 17.32% in Multi-Strategy funds, 1.23% in Private Equity, 0.77% in Other Equity and Derivatives strategy, 1.04% in Others and 4.76% in ALTIN shares. Cash was reduced from 6.3% at the end of June 2009 to zero on 1 January 2010.
ALTIN AG is invested in approximately 40 hedge funds following various investment strategies. Its objective is to generate an absolute annual return in US dollars terms with lower volatility than equity markets. ALTIN is managed by Alternative Asset Advisors SA, a management firm specialised in alternative investments and a member of the SYZ & CO Group.
As of 1 Jan 2010 ALTIN was fully invested in hedge funds with 15.26% allocated to Macro strategy, 29.71% in Equity Long/Short, 2.58% in Equity long bias, 3.70% in Equity Arbitrage strategy, 3.70% in Event Driven, 3.64% in Fixed Income, 3.54% in Convertible Bonds, 13.38% in Credit Strategy, 17.32% in Multi-Strategy funds, 1.23% in Private Equity, 0.77% in Other Equity and Derivatives strategy, 1.04% in Others and 4.76% in ALTIN shares. Cash was reduced from 6.3% at the end of June 2009 to zero on 1 January 2010.
ALTIN AG is invested in approximately 40 hedge funds following various investment strategies. Its objective is to generate an absolute annual return in US dollars terms with lower volatility than equity markets. ALTIN is managed by Alternative Asset Advisors SA, a management firm specialised in alternative investments and a member of the SYZ & CO Group.
17 Mar 2010
Hedge Fund Manager Survey Finds Sentiment Moving Against Europe, in Favor of U.S.
New York (HedgeCo.net) - Investors have recovered their bullishness towards equity markets but are shifting their focus away from Europe and into the U.S. and Japan, according to the BofA Merrill Lynch Survey of Fund Managers for March.
A total of 207 fund managers, managing a total of US$589 billion, participated in the global survey from 5 March to 11 March. A total of 165 managers, managing US$403 billion, participated in the regional surveys.
After weakened sentiment in February, the survey shows that investors have restored their faith in equities with a net 46 percent of asset allocators saying they are overweight the asset class, up from 33 percent the previous month. Cash positions have fallen with respondents at a net neutral cash allocation compared with a net 12 percent underweight in February.
Asset allocators have retrenched from Europe, however. A net 21 percent are underweight European equities this month, up sharply from a net 2 percent overweight in January.
The change in favor of U.S. equities has been similar. A net 19 percent of asset allocators are overweight U.S. equities this month, up from just 1 percent in January. Japan is also regaining popularity. A net 6 percent of allocators are overweight Japanese equities, the most bullish reading since August 2007, and up from a net 10 percent underweight in January.
Global investors believe that the corporate outlook is better away from Europe. A net 40 percent of the panel says the outlook for eurozone corporate profits is the least favorable of all regions.
"Investors' concerns about Greece are easing, but European country risk remains a key constraint to optimism over economic recovery," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Research. "Investors are more willing to embrace corporate risk, via equities, than sovereign risk," said Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch Research.
The net number of European fund managers predicting growth in their own economy over the coming 12 months has fallen to 45 percent, down from 72 percent in January, according to the Regional Fund Manager Survey. While European sentiment might have been expected to weaken, a similar fall in optimism is also evident among U.S. investors. A net 43 percent forecast growth in the American economy over the next 12 months, down from a net 76 percent in January.
Investors in both regions have stronger belief in earnings growth. A net 60 percent of European respondents predict improved earnings in the coming 12 months, an increase of 11 percent on February. Their colleagues in the U.S. are more positive with a net 72 percent forecasting earnings growth, up from a net 52 percent in February.
U.S. and European investors have significantly scaled back their cash allocations. A net 9 percent of the European panel is overweight cash this month, down from 26 percent in February. The corresponding numbers for U.S. investors are a net 8 percent in March and 19 percent in February.
European respondents have increased exposure to cyclical sectors, including Basic Resources and Construction. They have reduced their underweight position on banks. US investors have also increased exposure to cyclicals, such as Industrials and Materials, but have extended their underweight positions in Banks.
A total of 207 fund managers, managing a total of US$589 billion, participated in the global survey from 5 March to 11 March. A total of 165 managers, managing US$403 billion, participated in the regional surveys.
After weakened sentiment in February, the survey shows that investors have restored their faith in equities with a net 46 percent of asset allocators saying they are overweight the asset class, up from 33 percent the previous month. Cash positions have fallen with respondents at a net neutral cash allocation compared with a net 12 percent underweight in February.
Asset allocators have retrenched from Europe, however. A net 21 percent are underweight European equities this month, up sharply from a net 2 percent overweight in January.
The change in favor of U.S. equities has been similar. A net 19 percent of asset allocators are overweight U.S. equities this month, up from just 1 percent in January. Japan is also regaining popularity. A net 6 percent of allocators are overweight Japanese equities, the most bullish reading since August 2007, and up from a net 10 percent underweight in January.
Global investors believe that the corporate outlook is better away from Europe. A net 40 percent of the panel says the outlook for eurozone corporate profits is the least favorable of all regions.
"Investors' concerns about Greece are easing, but European country risk remains a key constraint to optimism over economic recovery," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Research. "Investors are more willing to embrace corporate risk, via equities, than sovereign risk," said Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch Research.
The net number of European fund managers predicting growth in their own economy over the coming 12 months has fallen to 45 percent, down from 72 percent in January, according to the Regional Fund Manager Survey. While European sentiment might have been expected to weaken, a similar fall in optimism is also evident among U.S. investors. A net 43 percent forecast growth in the American economy over the next 12 months, down from a net 76 percent in January.
Investors in both regions have stronger belief in earnings growth. A net 60 percent of European respondents predict improved earnings in the coming 12 months, an increase of 11 percent on February. Their colleagues in the U.S. are more positive with a net 72 percent forecasting earnings growth, up from a net 52 percent in February.
U.S. and European investors have significantly scaled back their cash allocations. A net 9 percent of the European panel is overweight cash this month, down from 26 percent in February. The corresponding numbers for U.S. investors are a net 8 percent in March and 19 percent in February.
European respondents have increased exposure to cyclical sectors, including Basic Resources and Construction. They have reduced their underweight position on banks. US investors have also increased exposure to cyclicals, such as Industrials and Materials, but have extended their underweight positions in Banks.
16 Mar 2010
SEC Charges Texas Hedge Fund Adviser With Fraud
HedgeCo News - The SEC has filed a federal case against hedge fund advisor Stephen X. Kim and Spyglass Management, L.P. for their roles in allegedly defrauding Spyglass Capital Partners, L.P., a hedge fund managed by Kim through Spyglass. according to court filings.
The SEC complaint, filed in Texas, alleges that between in 2004 and 2006, Kim and Spyglass raised approximately $4.7 million from investors located primarily in Houston, Texas using offering materials that contained misleading information relating to Kim's education, business experience, and compensation.
The SEC alleges that Kim and Spyglass failed to employ any hedging strategy to manage risk, causing the hedge fund to loose over $2 million then directing the hedge fund to make approximately $1.7 million in Ponzi payments to investors.
Finally, the SEC alleges that Kim misappropriated approximately $1.5 million of the hedge fund's remaining assets to repay several outstanding personal obligations.
Without admitting or denying the allegations, Kim and Spyglass have made a settlement with the SEC, which is subject to the approval of the United States District Court for the Southern District of Texas.
The SEC complaint, filed in Texas, alleges that between in 2004 and 2006, Kim and Spyglass raised approximately $4.7 million from investors located primarily in Houston, Texas using offering materials that contained misleading information relating to Kim's education, business experience, and compensation.
The SEC alleges that Kim and Spyglass failed to employ any hedging strategy to manage risk, causing the hedge fund to loose over $2 million then directing the hedge fund to make approximately $1.7 million in Ponzi payments to investors.
Finally, the SEC alleges that Kim misappropriated approximately $1.5 million of the hedge fund's remaining assets to repay several outstanding personal obligations.
Without admitting or denying the allegations, Kim and Spyglass have made a settlement with the SEC, which is subject to the approval of the United States District Court for the Southern District of Texas.
SSARIS Wins Fund of Hedge Fund Award
HedgeCo News - Hedge fund and FoHF manager, SSARIS Advisors, LLC, won the "Global Multi-Strategy ($500 million -$1 billion) over 3 years" award at the annual InvestHedge FoHF Awards ceremony held last night in New York City. SSARIS won in the Multi-Manager Absolute Return Strategy category.
To qualify, all funds of funds must provide a strategy allocation breakdown for each fund nominated. InvestHedge has the final say in which category a fund is nominated. Winners are decided using an established methodology based on a combination of Sharpe ratios and returns over the relevant time period.
SSARIS Advisors, LLC is a majority-owned subsidiary of State Street Global Alliance, LLC. SSARIS Advisors, LLC was founded in 2001 and is directed by Mark Rosenberg, Chairman and CIO; Peter Hinrichs, CFO and Chief Compliance Officer; and Jim Tomeo, COO and Senior Portfolio Manager.
With $1.9 trillion in assets under management, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.
To qualify, all funds of funds must provide a strategy allocation breakdown for each fund nominated. InvestHedge has the final say in which category a fund is nominated. Winners are decided using an established methodology based on a combination of Sharpe ratios and returns over the relevant time period.
SSARIS Advisors, LLC is a majority-owned subsidiary of State Street Global Alliance, LLC. SSARIS Advisors, LLC was founded in 2001 and is directed by Mark Rosenberg, Chairman and CIO; Peter Hinrichs, CFO and Chief Compliance Officer; and Jim Tomeo, COO and Senior Portfolio Manager.
With $1.9 trillion in assets under management, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.
15 Mar 2010
UCITS Hedge Fund Strategy Index up 0,93% in first two weeks of March
HedgeCo News - The UCITS Hedge Fund Strategy Index gained 0,93% within the first two weeks in March 2010, every strategy except fixed income and market neutral were positive, Global macro not only being the most successful strategy in 2010 but also in March with gains of 2,85% so far.
The other most successful strategies in March are convertible (+1,75%), CTA (+1,70%) and L/S equity (+1,54%), the latter turning positive ytd for the first time.
The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS III funds that apply absolute return strategies, have more than 10 Million Euros of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.
The indices are calculated on every 5th, 10th and 15th business day and at the end of each month by the index calculator Structured Solutions AG.
There have been 8 UCITS hedge fund launches since January 2010.
The other most successful strategies in March are convertible (+1,75%), CTA (+1,70%) and L/S equity (+1,54%), the latter turning positive ytd for the first time.
The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS III funds that apply absolute return strategies, have more than 10 Million Euros of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.
The indices are calculated on every 5th, 10th and 15th business day and at the end of each month by the index calculator Structured Solutions AG.
There have been 8 UCITS hedge fund launches since January 2010.
New Ticonderoga Launch As Hedge Funds Embrace ETFs
HedgeCo News - Institutional broker dealer, Ticonderoga Securities has launched an exchange traded funds (ETF) desk, led by industry veteran William Bauer. Bauer joins Ticonderoga with more than 18 years of institutional equity and derivative sales and trading experience, with five years focused on ETFs.
“Hedge funds and money managers are increasingly embracing ETFs as a superior product with greater transparency and liquidity,” said Bauer. “As this continues, Ticonderoga will be positioned well for growth.”
The new group will specialize in market making capabilities for institutional investors moving in and out of ETFs. The team will also advise clients on portfolio-trading issues, provide analysis and strategy, and assist in order execution through strong collaboration with the firm’s Sales & Trading Desk. As head of the ETF Desk, Bauer will focus on building out the ETF platform over the next several months, adding support staff, assistant traders and sales traders focused on ETF sales.
Bauer comes to Ticonderoga from Knight Capital, where he was a Director in ETF sales and trading. Before that, he was Vice President in sales and trading on the ETF market-making desk at Newedge Financial LLC, and also served as Vice President in sales and trading at RBC Capital Markets. Bauer attended University of Hartford with a focus on economics and finance.
“Hedge funds and money managers are increasingly embracing ETFs as a superior product with greater transparency and liquidity,” said Bauer. “As this continues, Ticonderoga will be positioned well for growth.”
The new group will specialize in market making capabilities for institutional investors moving in and out of ETFs. The team will also advise clients on portfolio-trading issues, provide analysis and strategy, and assist in order execution through strong collaboration with the firm’s Sales & Trading Desk. As head of the ETF Desk, Bauer will focus on building out the ETF platform over the next several months, adding support staff, assistant traders and sales traders focused on ETF sales.
Bauer comes to Ticonderoga from Knight Capital, where he was a Director in ETF sales and trading. Before that, he was Vice President in sales and trading on the ETF market-making desk at Newedge Financial LLC, and also served as Vice President in sales and trading at RBC Capital Markets. Bauer attended University of Hartford with a focus on economics and finance.
Hedge Funds Leaders Forum 2010
The Hedge Funds Leaders Forum 2010, "Generating Alpha in Challenging Times", is being held March 18th, in New York City. The GoldenNetworking.com event will review recent performance of multi-strategy hedge funds, at panel "Generating Market-Beating Returns Under the Watchful Eye of the SEC".
Dow Jones reported: "The average hedge fund lagged behind the nearly 3% return of the Standard & Poor's 500 Stock Index return in February. The hedge funds that beat the market tended to be multi-strategy, according to both hedge fund databases and fund managers' letters to investors. Daniel Loeb's Third Point Offshore fund was up 3.2% for February and 6.9% for the year through February, according to HSBC Private Bank; the fund is multi-strategy."
Panelists, speakers and sponsors are invited to contact the organizers by sending an email to info@goldennetworking.com.
Dow Jones reported: "The average hedge fund lagged behind the nearly 3% return of the Standard & Poor's 500 Stock Index return in February. The hedge funds that beat the market tended to be multi-strategy, according to both hedge fund databases and fund managers' letters to investors. Daniel Loeb's Third Point Offshore fund was up 3.2% for February and 6.9% for the year through February, according to HSBC Private Bank; the fund is multi-strategy."
Panelists, speakers and sponsors are invited to contact the organizers by sending an email to info@goldennetworking.com.
9 Mar 2010
Hedge funds up 0.52% in February
New York (HedgeCo.net) - Hedge funds returned to positive territory in February 2010 according to a preliminary Eurekahedge report. There were approximately 90 hedge fund launches globally in 1Q2010. With arbitrage hedge funds delivering 15 consecutive months of positive returns, gaining 26.23% since November 2008.
Hedge fund returns across most regions were marginally positive for February; however, early reports showed that North American managers, who make up 65% of the hedge fund universe, posted impressive gains of 1.41%. Regional managers capitalised on the marked improvements in market sentiment on the back of some strong earnings reports, positive movements in the US dollar and commodities as well as improved manufacturing data and the Fed’s decision to maintain low interest rates
Latin American funds were also positive with a 0.48% returns in February while Asia ex-Japan and Japan funds returned nominally positive performances. Continued problems in the eurozone led to negative results by the region’s managers, who were down 0.66% in February as the euro weakened amid speculation of Greece’s sovereign debt default.
The composite Eurekahedge Hedge Fund Index gained 0.52% during the month as the underlying global markets posted a recovery from a disappointing January. The MSCI World Index was up 1.23% in February, bringing its YTD figure to -3.01%.
The Eurekahedge CTA/Managed Futures Hedge Fund Index was up a strong 1.27% during the month. Continued low interest rates in the US also helped managers in the bonds sector to deliver yet another month of positive results. Fixed income, arbitrage and relative value hedge funds were all up during the month while distressed debt managers were flat to slightly negative.
Minnesota Hedge Fund Manager Petters May Face Double Madoff Term
HedgeCo News - U.S. prosecutors yesterday recommended a sentence of 335 years in prison for hedge fund founder Thomas Petters, more than twice the term given to Bernard Madoff, according to Bloomberg. Petters was charged with mail and wire fraud, money laundering and obstructing justice. A federal judge in Minneapolis ordered Petters to be held without bail in October 2000, after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country.
Petters and his hedge fund, Petters Group Worldwide LLC was convicted in December 2000, of all 20 criminal counts, adding up to a $3.5 billion fraud.
“The defendant’s fraud is staggering and unprecedented in size and impact on victims and the community,” prosecutors said, according to Bloomberg.
The case is U.S. v. Thomas Joseph Petters, U.S. District Court, District of Minnesota. The final sentencing is set for April 8th.
8 Mar 2010
2010 Top Hedge Fund Firm Launches
| Via HedgeTracker | ||||
| Name | Style | Estimated Assets at Launch $mm | Location | |
| AE Capital Management | Global Macro | 10 | Singapore | |
| Astenbeck Capital Management | Commodities Focused | 1,400 | Westport, CT | |
| Black’s Link Capital Ltd | Event-Driven | NA | Central Hong Kong | |
| Castle Hill Asset Management | Fixed Income | 2,150 | London | |
| Doubloon Capital LLC | Distressed | NA | Norwalk, CT | |
| Edward Hornstein LLC | Long/Short Equity | 10 | New York, NY | |
| Munsun Asset Management | Asian Equities | NA | China | |
| Nautical Capital Management | Commodities Focused | NA | Purchase, NY |
The Hedge Fund Fraud Casebook - Review
New York (HedgeCo.net) - Research and Markets has added John Wiley and Sons Ltd's new report "The Hedge Fund Fraud Casebook" to their offering. An in-depth look at the first 100 cases of proven fraud at hedge funds.
Some highlights:
* First comprehensive survey of hedge fund fraud including 100 chronological fraud cases
* Includes descriptions of each case, diagram of the player interaction, and tables detailing monies recovered, fines paid, prison terms, and professional sanctions
* Useful for both individual and professional investors, particularly given the last eighteen months of fraud and mismanagement among leading financial professionals and companies
Author Bruce Johnson spent more than a decade as a hedge fund practitioner, managing and advising funds. He was CEO of Albourne America LLC, the U.S. arm of Albourne Partners, a hedge fund advisory firm based in London. While at Albourne, Johnson researched new approaches to hedge fund due diligence including the quantitative analysis of "fund failure" and hedge fund credit.
After an earlier career as an architect and city planner in New York and London, Johnson has gained twenty-four years worth of experience in finance, including extended postings in Tokyo, Hong Kong, and London. While head of Global Research for Baring Securities, he published an important paper on the future of the Chinese and Indian economies, correctly predicting their current impact on global trade, and also created and managed the first investable global emerging markets equity index.
3 Mar 2010
Maples Launches Luxembourg Hedge Fund Administration Services
Independent hedge fund services provider, Maples Finance, has expanded its European service offering in Luxembourg following the approval of its Registrar Agent license by Luxembourg’s financial supervisory authority, the Commission de Surveillance du Secteur Financier.
"We are delighted to broaden our capabilities in Luxembourg, where we have acted as a licensed Domiciliation Agent since 2007." Maxine Rawlins, CEO of Maples Finance, said," As we begin to see recovery in global markets, Maples Finance is well positioned to deliver seamless services to our clients both in Luxembourg and globally."
Maples Finance services $30 billion in investment fund net assets from its worldwide network of offices in financial centres including Canada, Dubai, Dublin, Luxembourg, Hong Kong, and the Cayman Islands.
"We are delighted to broaden our capabilities in Luxembourg, where we have acted as a licensed Domiciliation Agent since 2007." Maxine Rawlins, CEO of Maples Finance, said," As we begin to see recovery in global markets, Maples Finance is well positioned to deliver seamless services to our clients both in Luxembourg and globally."
Maples Finance services $30 billion in investment fund net assets from its worldwide network of offices in financial centres including Canada, Dubai, Dublin, Luxembourg, Hong Kong, and the Cayman Islands.
Hedge Fund Regulation Certification Launch
The Ireland-based Hedge Fund College has announced the launch of its Certificate in Hedge Fund Regulation, the first regulatory certification in the hedge fund industry.
“Never has it been more important for the hedge fund industry to demonstrate a greater regulatory awareness." Thomas Bullman, founder of the Hedge Fund College, said, "Both European and US regulatory proposals will have far-reaching effects. Everybody within the hedge fund industry has an obligation to ensure that they are sufficiently educated on how these new measures will impact them. The Hedge Fund College aims to provide a broad certification that a candidate has demonstrated an understanding of hedge fund regulation and current issues.”
The Certificate in Hedge Fund Regulation provides a broad-based curriculum in hedge fund regulation, delivered online by distance learning.
Sponsored by The Hedge Fund Society and its international advisory board of academics and commercial practitioners, the course provides an introduction to hedge funds, their history and the regulatory issues surrounding them. The course also provides a review of regulatory theory and analysis of the regulation of hedge funds, hedge fund managers, hedge fund service providers and hedge fund standards in the UK, EU and US.
“Never has it been more important for the hedge fund industry to demonstrate a greater regulatory awareness." Thomas Bullman, founder of the Hedge Fund College, said, "Both European and US regulatory proposals will have far-reaching effects. Everybody within the hedge fund industry has an obligation to ensure that they are sufficiently educated on how these new measures will impact them. The Hedge Fund College aims to provide a broad certification that a candidate has demonstrated an understanding of hedge fund regulation and current issues.”
The Certificate in Hedge Fund Regulation provides a broad-based curriculum in hedge fund regulation, delivered online by distance learning.
Sponsored by The Hedge Fund Society and its international advisory board of academics and commercial practitioners, the course provides an introduction to hedge funds, their history and the regulatory issues surrounding them. The course also provides a review of regulatory theory and analysis of the regulation of hedge funds, hedge fund managers, hedge fund service providers and hedge fund standards in the UK, EU and US.
25 Feb 2010
NY Hedge Fund Manager Nadel Pleads Guilty in Ponzi Scheme
HedgeCo News - Former hedge fund manager Arthur G. Nadel has pled guilty to 15 counts of securities fraud, mail fraud, and wire fraud, the US attorney for the southern district of New York said.
The indictment claims that from 1999 through January 2009, Nadel perpetrated a Ponzi scheme to defraud investors in six different investment funds, consistently loosing money and using his investor money to fund his lifestyle and several businesses, including a real estate project in North Carolina, his wife's flower shop, and his purchase of several private planes.
From 1999 through January 2009, nearly 250 people invested more than $397 million with the Funds. NADEL received tens of millions of dollars in management fees and performance incentive fees. As a result of Nadels's Ponzi scheme, investors suffered losses of approximately $162 million.
The hedge fund manager pleaded guilty to six counts of securities fraud, one count of mail fraud, and eight counts of wire fraud, and faces a maximum penalty of 20 years in prison on each of the counts.
Nadel faces a maximum fine of the greater of $5 million or twice the gross gain or loss from the offense. For the mail fraud and wire fraud charges, he faces a maximum fine of the greater of $250,000, or twice the gross gain or less from the offense.
The indictment claims that from 1999 through January 2009, Nadel perpetrated a Ponzi scheme to defraud investors in six different investment funds, consistently loosing money and using his investor money to fund his lifestyle and several businesses, including a real estate project in North Carolina, his wife's flower shop, and his purchase of several private planes.
From 1999 through January 2009, nearly 250 people invested more than $397 million with the Funds. NADEL received tens of millions of dollars in management fees and performance incentive fees. As a result of Nadels's Ponzi scheme, investors suffered losses of approximately $162 million.
The hedge fund manager pleaded guilty to six counts of securities fraud, one count of mail fraud, and eight counts of wire fraud, and faces a maximum penalty of 20 years in prison on each of the counts.
Nadel faces a maximum fine of the greater of $5 million or twice the gross gain or loss from the offense. For the mail fraud and wire fraud charges, he faces a maximum fine of the greater of $250,000, or twice the gross gain or less from the offense.
24 Feb 2010
UCITS 3 Hedge Funds Index Launch
HedgeCo News - Geneva based hedge fund advisory company, NARA Capital, announced plans to release its UCITS Alternative Index® to the public. A series of indices aims to track the performance UCITS hedge funds and funds of funds.
”NARA has been tracking the emergence of UCITS hedge funds for more than two years and has constructed and developed what is probably the most comprehensive database of that universe." Louis Zanolin, Partner at NARA Capital said, "The trend for more regulated and liquid alternative strategies will increase the demand for UCITS alternative funds over the coming year, so will the need for independent comparative tools. We have therefore decided to publicly release the index performance.”
The UCITS Alternative Index® series are equally weighted. The performance for any particular month will accessible on the UCITS Alternative Index® website www.ucits-alternative.com generally on the 5th business day of the following month. The inception date of the index is 1st January 2008.
As of February 2009 the UCITS Alternative Index® was tracking close to 400 UCITS hedge funds and funds of hedge funds totaling more than 63 billion EUR assets under management. Only funds pursuing hedge fund like strategies are taken into account for the index calculation. Absolute return funds with no shorting capabilities as well as 130/30 and passive hedge funds index UCITS funds are excluded from the
index.
In 2009, the UCITS Alternative Index® Global returned +9.27% while the UCITS Alternative Index® Fund of Funds returned + 1.64%.
With +34.68%, the UCITS Alternative Index® Emerging Markets was the best performing strategy in 2009.
It was followed by the UCITS Alternative Index® Fixed Income which returned +11.83%. The least performing index in 2009 was the UCITS Alternative Index® Equity Market Neutral with a -0.57%.
At the end of January 2010, Macro hedge funds represented the largest assets under management with 27.3 billion EUR ($ 36.9 billion). It was followed by Fixed Income and Long/Short Equity Funds with respectively 26.7 and 20.7 billion EUR ($36.1 and $28 billion). In term of jurisdiction, 48% of the funds were based in Luxemburg, 20% in Ireland 17% and in France.
”NARA has been tracking the emergence of UCITS hedge funds for more than two years and has constructed and developed what is probably the most comprehensive database of that universe." Louis Zanolin, Partner at NARA Capital said, "The trend for more regulated and liquid alternative strategies will increase the demand for UCITS alternative funds over the coming year, so will the need for independent comparative tools. We have therefore decided to publicly release the index performance.”
The UCITS Alternative Index® series are equally weighted. The performance for any particular month will accessible on the UCITS Alternative Index® website www.ucits-alternative.com generally on the 5th business day of the following month. The inception date of the index is 1st January 2008.
As of February 2009 the UCITS Alternative Index® was tracking close to 400 UCITS hedge funds and funds of hedge funds totaling more than 63 billion EUR assets under management. Only funds pursuing hedge fund like strategies are taken into account for the index calculation. Absolute return funds with no shorting capabilities as well as 130/30 and passive hedge funds index UCITS funds are excluded from the
index.
In 2009, the UCITS Alternative Index® Global returned +9.27% while the UCITS Alternative Index® Fund of Funds returned + 1.64%.
With +34.68%, the UCITS Alternative Index® Emerging Markets was the best performing strategy in 2009.
It was followed by the UCITS Alternative Index® Fixed Income which returned +11.83%. The least performing index in 2009 was the UCITS Alternative Index® Equity Market Neutral with a -0.57%.
At the end of January 2010, Macro hedge funds represented the largest assets under management with 27.3 billion EUR ($ 36.9 billion). It was followed by Fixed Income and Long/Short Equity Funds with respectively 26.7 and 20.7 billion EUR ($36.1 and $28 billion). In term of jurisdiction, 48% of the funds were based in Luxemburg, 20% in Ireland 17% and in France.
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