According to a poll of over 100 top global hedge funds (and fund of funds) managers,
collectively managing some $900 billion in assets, shows that three quarters of respondents identified technology as the biggest spending area in the next two year, for 58% of funds, expenditure on risk management systems was anticipated to be the biggest proportion of that spend.
Only 13% of respondents expect to raise permanent capital in the next two years. The most popular route is deemed to be a partial sale to an external owner. The greatest interest in raising permanent capital comes, from managers in the Far East.
David Sung of Ernst & Young's Hong Kong office said: "Given that the managers in the Far East have yet to experience the maturity of businesses in the US and Europe, the idea of having more permanent capital could be appealing as a faster means of stabilizing their asset base."
Greater transparency around the valuation process is the foremost medium-to-high level regulatory challenge for 64% of respondents in the next two years; conflicts of interest (57%) and market abuse (55%) are the next key concerns. Valuation and pricing risks were also deemed the second greatest operational risk for managers.
The survey shows that the majority of funds (80%) expect incentive fees and management fees to decrease in the next two years. Almost two-thirds also identified increased operational costs as a significant future pressure on fees over the same period.
The survey was carried out by Ernst & Young in partnership with Ipsos MORI, an independent research company, across a number of leading global hedge funds, and fund of funds managers.
18 Oct 2007
17 Oct 2007
Research Shows Hedge Fund Talent A Priority
According to new research 'Navigating New Complexities' published today by Ernst & Young. The world's leading hedge funds managers are more concerned about attracting and retaining talented people and managing growth than anything else.
"Governance and infrastructure are the top enablers for hedge fund growth, as the industry continues to mature and develop," said Leon Chin, partner in the Ernst & Young Toronto hedge funds practice.
The poll of over 100 top global hedge funds (and fund of funds) managers, collectively managing some $900 billion in assets, shows that retaining the right people (42%) and managing growth (39%) are the highest level challenges over the next year, compared to just 9% who anticipate investing or developing in new products. Respondents were principals, chief operating officers and chief financial officers at these funds.
Art Tully, co-leader of the global hedge funds practice at Ernst & Young, said: "The global hedge fund industry now manages $2.5 trillion of assets; $41.1 billion poured in from investors in the second quarter of 2007 alone.
The industry appears to be proving that it can handle such inflows. The ability to absorb such flows is only tested by the capacity to grow and retain talent.
Hedge funds are working just as hard as other financial institutions to ensure they attract and retain the right people. Salary packages (86%) and firm culture (83%) are the main attractions enticing the best staff to join.
The managers surveyed for this research represented some US$900 billion in funds (approximately 55% of the entire industry).
Ernst & Young has teams around the world, including North America, the UK, Cayman, Bermuda, Ireland, continental Europe, Hong Kong and Australia, who are part of our global alternative asset management practice.
"Governance and infrastructure are the top enablers for hedge fund growth, as the industry continues to mature and develop," said Leon Chin, partner in the Ernst & Young Toronto hedge funds practice.
The poll of over 100 top global hedge funds (and fund of funds) managers, collectively managing some $900 billion in assets, shows that retaining the right people (42%) and managing growth (39%) are the highest level challenges over the next year, compared to just 9% who anticipate investing or developing in new products. Respondents were principals, chief operating officers and chief financial officers at these funds.
Art Tully, co-leader of the global hedge funds practice at Ernst & Young, said: "The global hedge fund industry now manages $2.5 trillion of assets; $41.1 billion poured in from investors in the second quarter of 2007 alone.
The industry appears to be proving that it can handle such inflows. The ability to absorb such flows is only tested by the capacity to grow and retain talent.
Hedge funds are working just as hard as other financial institutions to ensure they attract and retain the right people. Salary packages (86%) and firm culture (83%) are the main attractions enticing the best staff to join.
The managers surveyed for this research represented some US$900 billion in funds (approximately 55% of the entire industry).
Ernst & Young has teams around the world, including North America, the UK, Cayman, Bermuda, Ireland, continental Europe, Hong Kong and Australia, who are part of our global alternative asset management practice.
16 Oct 2007
Federal Reserve moves to stop Credit Crunch
In September, according to the Credit Suisse/Tremont Hedge Fund Index, the U.S. Federal Reserve moved to stop the spreading Credit Crunch from further impacting the global economy with a half-percentage-point cut in interest rates.
Overall, the market environment has led to the majority of hedge fund sectors ending September on a positive note. In particular, the Managed Futures sector benefited with a 5.13% return as the market rebounded and volatility rose, leaving managers with a positive opportunity set.
The cut sought to ease terms on direct loans from its discount window in hopes banks would use the Fed's cash to restore liquidity to the credit markets. The interest rate cuts sparked a rally in global stock markets as investor fears were somewhat quelled, said Oliver Schupp. "However, the rate cut also led to a sharp fall by the U.S. Dollar and the rise of long-term Treasury-bond yields and oil prices, which could potentially foster inflationary pressures."
The Index is constructed using the Credit Suisse/Tremont database of more than 5,000 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds. The Index is calculated as a total return index on a monthly basis, adjusted for asset in- and outflow, including a reselection according to the procedure outlined above on a quarterly basis.
Overall, the market environment has led to the majority of hedge fund sectors ending September on a positive note. In particular, the Managed Futures sector benefited with a 5.13% return as the market rebounded and volatility rose, leaving managers with a positive opportunity set.
The cut sought to ease terms on direct loans from its discount window in hopes banks would use the Fed's cash to restore liquidity to the credit markets. The interest rate cuts sparked a rally in global stock markets as investor fears were somewhat quelled, said Oliver Schupp. "However, the rate cut also led to a sharp fall by the U.S. Dollar and the rise of long-term Treasury-bond yields and oil prices, which could potentially foster inflationary pressures."
The Index is constructed using the Credit Suisse/Tremont database of more than 5,000 hedge funds. It includes both open and closed funds located in the U.S. and offshore, but does not include fund of funds. The Index is calculated as a total return index on a monthly basis, adjusted for asset in- and outflow, including a reselection according to the procedure outlined above on a quarterly basis.
11 Oct 2007
Robeco Bank Bought By Kaupthing Bank Luxembourg S.A.
Private banking and alternative asset manager Robeco Bank of Belgium was purchased by Kaupthing Bank of Luxembourg, it was announced today.
Robeco was established in Rotterdam in 1929, and has EUR 142 billion ($201.5 billion) in assets under management (as of 31 December 2006). Their product range runs from equity and fixed-income investments, to money-market and real-estate funds and alternative investments, such as private equity, hedge funds and structured products.
George Möller, Chief Excecutive Officer of Robeco said, "The Belgian market has evolved enormously over these last years with most banks now operating an `open architecture´. They are increasingly incorporating the financial products of other specialist banks -including Robeco-. This opening up enables us to focus on third party distribution and on the institutional market in Belgium."
Magnus Gudmundsson, Managing Director of Kaupthing Bank Luxembourg said, "Robeco Bank Belgium represents an excellent strategic fit forKaupthing Bank in terms of geographic diversification, products and business culture. This acquisition is a logical step in building up Private Banking offerings in the Benelux countries. By taking over the activities of Robeco Bank Belgium we become immediately operational in Belgium and will have a platform for further growth".
Robeco has offices in Bahrain, Belgium, Germany, France, Japan, Luxembourg, Poland, Spain, the United States and Switzerland. Robeco has a bank license in Belgium, France and the Netherlands.
Robeco was established in Rotterdam in 1929, and has EUR 142 billion ($201.5 billion) in assets under management (as of 31 December 2006). Their product range runs from equity and fixed-income investments, to money-market and real-estate funds and alternative investments, such as private equity, hedge funds and structured products.
George Möller, Chief Excecutive Officer of Robeco said, "The Belgian market has evolved enormously over these last years with most banks now operating an `open architecture´. They are increasingly incorporating the financial products of other specialist banks -including Robeco-. This opening up enables us to focus on third party distribution and on the institutional market in Belgium."
Magnus Gudmundsson, Managing Director of Kaupthing Bank Luxembourg said, "Robeco Bank Belgium represents an excellent strategic fit forKaupthing Bank in terms of geographic diversification, products and business culture. This acquisition is a logical step in building up Private Banking offerings in the Benelux countries. By taking over the activities of Robeco Bank Belgium we become immediately operational in Belgium and will have a platform for further growth".
Robeco has offices in Bahrain, Belgium, Germany, France, Japan, Luxembourg, Poland, Spain, the United States and Switzerland. Robeco has a bank license in Belgium, France and the Netherlands.
Thomson Financial Invests $180 Million in TradeWeb
Thomson Financial today announced it plans to form a strategic partnership with nine of the world's leading global dealers including, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland, and UBS to drive the expansion of electronic trading using the TradeWeb platform.
Under the terms of the agreement, the dealers will invest approximately $180 million to purchase a minority stake in TradeWeb's established markets. Separately, Thomson and the dealers will fund additional investment in asset class expansion.
"This partnership is a natural step forward in the evolution of the online financial marketplace, taking us closer to the time when almost all trading is electronic," said Jim Toffey, CEO of Thomson TradeWeb. "TradeWeb is ideally positioned to seize this opportunity, and expand e-trading for our clients on one platform through organic growth and through acquisition. The end-game is to be the leading global network where markets meet."
The transaction is expected to close in the next few months, pending regulatory approval. TradeWeb will maintain its global headquarters in Jersey City, NJ. Average daily trading volume on TradeWeb exceeds $250 billion.
Thomson TradeWeb is the leading online fixed-income trading network with over 12 million trades executed and total volume surpassing $200 trillion since its inception in 1998.
Under the terms of the agreement, the dealers will invest approximately $180 million to purchase a minority stake in TradeWeb's established markets. Separately, Thomson and the dealers will fund additional investment in asset class expansion.
"This partnership is a natural step forward in the evolution of the online financial marketplace, taking us closer to the time when almost all trading is electronic," said Jim Toffey, CEO of Thomson TradeWeb. "TradeWeb is ideally positioned to seize this opportunity, and expand e-trading for our clients on one platform through organic growth and through acquisition. The end-game is to be the leading global network where markets meet."
The transaction is expected to close in the next few months, pending regulatory approval. TradeWeb will maintain its global headquarters in Jersey City, NJ. Average daily trading volume on TradeWeb exceeds $250 billion.
Thomson TradeWeb is the leading online fixed-income trading network with over 12 million trades executed and total volume surpassing $200 trillion since its inception in 1998.
10 Oct 2007
TS Capital Launches $200 Million Fund Of Hedge Funds
Alternative asset management firm ThinkStrategy Capital, today announced the launch of the TS Multi-Strategy Fund LP Class B. The TS Multi-Strategy Fund is a hedge fund-of-funds designed to generate solid returns from creative strategies while preserving capital.
With a $1 million minimum investment and $200 million in assets under management, according to the announcement, this new class is an unleveraged version of ThinkStrategy's existing TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of current investments from which TS selected the best performers.
Headquartered in New York, NY, the fund targets medium-term capital appreciation in the mid-teens per annum with controlled risk. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
The TS Multi-Strategy Fund has an initial lock up period of 12 months with quarterly returns.
With a $1 million minimum investment and $200 million in assets under management, according to the announcement, this new class is an unleveraged version of ThinkStrategy's existing TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of current investments from which TS selected the best performers.
Headquartered in New York, NY, the fund targets medium-term capital appreciation in the mid-teens per annum with controlled risk. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
The TS Multi-Strategy Fund has an initial lock up period of 12 months with quarterly returns.
Camelot Hedge Fund Launch Announced
Alternative investing consultant and director Bob Torkelund has announced the launch of a new hedge fund, Camelot Global Investments, with the initial offering period running throughout October 2007.
Camelot Global Investment is a Global Macro Fund with a strategy of utilising global economical developments, cycles and events. Due to the investments in Futures, Camelot is able to profit from both falling and rising markets.
Analysis is founded on data from Torkelund's own researched stocks, the analysis of political and social environments, knowledge of biological facts and continuous observation, according to the statement.
State-of-the-Art trading programmes independently developed are used by an experienced team of traders, analytics and experts. Since the trading start, according to the statement, Camelot has outperformed almost all investments in different classes and performed well not correlating to the world markets.
Torkelund is Director of Global Retail Sales, Marketing & Operations for several boutique fund managers. He was also responsible for the formulation and execution of Threadneedle Investments as a serious and reliable player in Continental Europe.
Camelot Global Investment is a Global Macro Fund with a strategy of utilising global economical developments, cycles and events. Due to the investments in Futures, Camelot is able to profit from both falling and rising markets.
Analysis is founded on data from Torkelund's own researched stocks, the analysis of political and social environments, knowledge of biological facts and continuous observation, according to the statement.
State-of-the-Art trading programmes independently developed are used by an experienced team of traders, analytics and experts. Since the trading start, according to the statement, Camelot has outperformed almost all investments in different classes and performed well not correlating to the world markets.
Torkelund is Director of Global Retail Sales, Marketing & Operations for several boutique fund managers. He was also responsible for the formulation and execution of Threadneedle Investments as a serious and reliable player in Continental Europe.
9 Oct 2007
Tokyo Stock Exchange Has Strong Week
Stocks rose on the Tokyo Stock Exchange this week giving the Tokyo market a strong start, catching up with U.S. and other overseas counterparts.
The dollar's upswing versus the yen, which reflects receding expectations for an imminent interest rate cut by the Federal Reserve, provided an additional boost to the market, brokers said.
"The better-than-expected employment data eased worries about the U.S. economic outlook," said Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc. "But there were few domestic incentives to support the Tokyo market and turnover remained slack. So, many players chose to cash in profits before Japan's fiscal first-half earnings reporting season swings into full gear next week."
Kenichi Hirano, equity general manager at Tachibana Securities Co., pointed out that the market is vulnerable to selling as the recent upturn is providing long-awaited profit-taking opportunities to investors who bought stocks three to six months ago, before the U.S. subprime mortgage market meltdown rattled the global financial markets this summer.
"It will take some time before the market fully absorbs the profit-taking pressure," said Hirano. "But given the improving overseas market environment, the Tokyo market is certain to stay in a long-term uptrend."
Consumer loan companies Promise, Aiful and Takefuji advanced, thanks apparently to short covering by hedge funds.
Meanwhile, Nippon Steel, JFE and Sumitomo Metal Industries slipped, due to speculation that the commercialization of carbon fiber automotive parts may reduce demand for steel. The recent downturn in crude oil prices pushed down Inpex, AOC and Nippon Oil.
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The dollar's upswing versus the yen, which reflects receding expectations for an imminent interest rate cut by the Federal Reserve, provided an additional boost to the market, brokers said.
"The better-than-expected employment data eased worries about the U.S. economic outlook," said Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc. "But there were few domestic incentives to support the Tokyo market and turnover remained slack. So, many players chose to cash in profits before Japan's fiscal first-half earnings reporting season swings into full gear next week."
Kenichi Hirano, equity general manager at Tachibana Securities Co., pointed out that the market is vulnerable to selling as the recent upturn is providing long-awaited profit-taking opportunities to investors who bought stocks three to six months ago, before the U.S. subprime mortgage market meltdown rattled the global financial markets this summer.
"It will take some time before the market fully absorbs the profit-taking pressure," said Hirano. "But given the improving overseas market environment, the Tokyo market is certain to stay in a long-term uptrend."
Consumer loan companies Promise, Aiful and Takefuji advanced, thanks apparently to short covering by hedge funds.
Meanwhile, Nippon Steel, JFE and Sumitomo Metal Industries slipped, due to speculation that the commercialization of carbon fiber automotive parts may reduce demand for steel. The recent downturn in crude oil prices pushed down Inpex, AOC and Nippon Oil.
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3 Oct 2007
An American Hedge Fund Review
I like the way the book was self published under the "Bull Ship Press" name, I guess Sykes has always been a bit of a madcap entrepreneur. There is a lot of insight and honesty in "An American Hedge Fund", and Sykes has an exciting way of explaining his strategy.
This bit is pretty relevant, "Opportunities come and go. The key is to remain nimble enough to be able to take advantage of situations when they arise."
Besides being the book's official release date, Sykes also announced the closing of the Cilantro fund on October 1st, a day he said, "Will free him from the shackles of SEC regulations he will be able to detail Cilantro's complete trading history- winners and losers."
Rubinstein & Rubinstein Launch Alternative Offshore Fund
Rubinstein & Rubinstein, LLP has launched an offshore alternative investment fund practice which has seen a great deal activity in the past few months.
Taking advantage of a tax treaty between the United States and a foreign government, Rubinstein & Rubinstein established the fund in an offshore jurisdiction, reducing taxation to 1 to 2%. In addition, private placement and foreign registration allowed the fund exemption from S.E.C. and blue sky registration.
One of the fund's highlights being that Asher Rubinstein represented a principal in establishing an international co-investment fund based in New York, London and Dubai. The fund will make investments in private equity buyouts, real estate, aerospace and other sectors. It has also been capitalized by various onshore and offshore investment sources, including "sovereign wealth," i.e., investment by a foreign government.
In addition, Kenneth Rubinstein and Asher Rubinstein represented United States-based principals and foreign- based managers of an investment fund dedicated to investments in the insurance settlement industry.
Kenneth Rubinstein has also developed a proprietary tax strategy to allow tax-free access to offshore deferred compensation assets by hedge fund and private equity fund managers.
The strategy is particularly timely, given the recent calls by members of the United States Congress to increase taxes on the "carried interest" portion of fund managers' compensation. Rubinstein & Rubinstein's tax patent application for this strategy is currently pending before the United States Patent and Trademark Office.
Taking advantage of a tax treaty between the United States and a foreign government, Rubinstein & Rubinstein established the fund in an offshore jurisdiction, reducing taxation to 1 to 2%. In addition, private placement and foreign registration allowed the fund exemption from S.E.C. and blue sky registration.
One of the fund's highlights being that Asher Rubinstein represented a principal in establishing an international co-investment fund based in New York, London and Dubai. The fund will make investments in private equity buyouts, real estate, aerospace and other sectors. It has also been capitalized by various onshore and offshore investment sources, including "sovereign wealth," i.e., investment by a foreign government.
In addition, Kenneth Rubinstein and Asher Rubinstein represented United States-based principals and foreign- based managers of an investment fund dedicated to investments in the insurance settlement industry.
Kenneth Rubinstein has also developed a proprietary tax strategy to allow tax-free access to offshore deferred compensation assets by hedge fund and private equity fund managers.
The strategy is particularly timely, given the recent calls by members of the United States Congress to increase taxes on the "carried interest" portion of fund managers' compensation. Rubinstein & Rubinstein's tax patent application for this strategy is currently pending before the United States Patent and Trademark Office.
Hedge Fund BlackRock Aquisitions Quellos Fund of Funds
Hedge fund investor BlackRock, Inc. today announced that it has completed its acquisition of the fund of funds business of Quellos Group, LLC. BlackRock is calling the combined fund of funds platform BlackRock Alternative Advisors.
Laurence D. Fink, BlackRock’s Chairman and Chief Executive Officer said, “Extreme market volatility over the past couple of months accelerated the opportunity for strategic interactions between our respective investment and risk management professionals and reinforced the value of operating on a unified, global platform."
"In addition, the market environment bolstered our belief that demand for top quality funds of funds and innovative investment solutions will continue to increase. We are excited to welcome our new colleagues and look forward to delivering the tremendous capabilities of BlackRock Alternative Advisors to our clients." Fink said.
BlackRock is one of the world’s largest publicly traded investment management firms. As of June 30, 2007, assets under management were $1.230 trillion. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East.
Laurence D. Fink, BlackRock’s Chairman and Chief Executive Officer said, “Extreme market volatility over the past couple of months accelerated the opportunity for strategic interactions between our respective investment and risk management professionals and reinforced the value of operating on a unified, global platform."
"In addition, the market environment bolstered our belief that demand for top quality funds of funds and innovative investment solutions will continue to increase. We are excited to welcome our new colleagues and look forward to delivering the tremendous capabilities of BlackRock Alternative Advisors to our clients." Fink said.
BlackRock is one of the world’s largest publicly traded investment management firms. As of June 30, 2007, assets under management were $1.230 trillion. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East.
2 Oct 2007
Alternative Investor Partners With Former Head Currency Trader at Tudor
Alternative investor Last Atlantis Capital Management and Jerry Considine, former head currency trader at Tudor Investment, have partnered to introduce LACM Foreign Exchange, Share Class W within the Last Atlantis Partners Fund.
The share class will be traded by Mr. Considine and seeks to capitalize on near-term opportunities in the global currency futures and foreign exchange markets.
The short-term, largely discretionary methodology was developed by Mr. Considine and has produced consistently non-correlated returns, according to the press release. "It combines fundamental and technical market analysis, sentiment evaluation, crowd psychology assessment, and money management to create a risk-averse investment strategy."
Irwin Berger, managing partner of Last Atlantis said, “Jerry has established an exceptional track record and reputation over the course of his career including stellar turns at Tudor and his own trading firm,.....His currency program adds another quality alternative to our Last Atlantis Partners platform.”
With the launch of this new share class, Mr. Considine continues his nearly 30-year career trading the currency markets.
Last Atlantis Capital Management (St. Thomas, USVI) develops and markets innovative alternative products. Last Atlantis Partners, LLC is master-feeder offering currently providing onshore and offshore investors access to fifteen segregated share classes with individual fund strategies incorporating proprietary and discretionary options, trend following futures, multi-strategy, macro discretionary, credit receivables, real estate financing and others.
The company was founded by managing directors Irwin Berger and Stig Ostgaard, one of the original Richard Dennis “Turtles”, and Last Atlantis Capital, LLC, a professional trading firm with highly-developed systems incubation and trading technology.
The share class will be traded by Mr. Considine and seeks to capitalize on near-term opportunities in the global currency futures and foreign exchange markets.
The short-term, largely discretionary methodology was developed by Mr. Considine and has produced consistently non-correlated returns, according to the press release. "It combines fundamental and technical market analysis, sentiment evaluation, crowd psychology assessment, and money management to create a risk-averse investment strategy."
Irwin Berger, managing partner of Last Atlantis said, “Jerry has established an exceptional track record and reputation over the course of his career including stellar turns at Tudor and his own trading firm,.....His currency program adds another quality alternative to our Last Atlantis Partners platform.”
With the launch of this new share class, Mr. Considine continues his nearly 30-year career trading the currency markets.
Last Atlantis Capital Management (St. Thomas, USVI) develops and markets innovative alternative products. Last Atlantis Partners, LLC is master-feeder offering currently providing onshore and offshore investors access to fifteen segregated share classes with individual fund strategies incorporating proprietary and discretionary options, trend following futures, multi-strategy, macro discretionary, credit receivables, real estate financing and others.
The company was founded by managing directors Irwin Berger and Stig Ostgaard, one of the original Richard Dennis “Turtles”, and Last Atlantis Capital, LLC, a professional trading firm with highly-developed systems incubation and trading technology.
Reuters Hosts Solution for Hedge Fund Trading in Singapore
Reuters and BT announced the launch of the lowest latency Proximity Hosting Solution for hedge funds trading on the Singapore Exchange Limited.
Rama Pillai, Senior Vice President of Intermediaries and Market Access at SGX said, "The Singapore Exchange is seeing an increasing demand for low-latency direct access to our markets by high-frequency traders as well as our traditional customer base. We welcome the Reuters Proximity Hosting Solution."
Edward Haddad, Managing Director, ASEAN, Reuters said, "We recognize the increasing demand for low latency feeds to meet the needs of a growing automated and programmed trading community on the Singapore Exchange. Reuters provides our clients with a complete suite of comprehensive capabilities -- from algorithmic trading tools, such as tick history, tick capture and time-stamped news, to proximity hosting to allow our customers to be first to market."
Demand for trading services that are hosted within close proximity of the exchange is increasing as institutions look to take advantage of low latency data provision and reduced time to trade execution. This enables firms to gain competitive advantage through programmed trading strategies that can consume data and execute trades more quickly.
This proximity hosting solution provides an end-to-end hosted service that is fully managed, and that also allows clients to co-locate their own applications within the Reuters data centre.
Rama Pillai, Senior Vice President of Intermediaries and Market Access at SGX said, "The Singapore Exchange is seeing an increasing demand for low-latency direct access to our markets by high-frequency traders as well as our traditional customer base. We welcome the Reuters Proximity Hosting Solution."
Edward Haddad, Managing Director, ASEAN, Reuters said, "We recognize the increasing demand for low latency feeds to meet the needs of a growing automated and programmed trading community on the Singapore Exchange. Reuters provides our clients with a complete suite of comprehensive capabilities -- from algorithmic trading tools, such as tick history, tick capture and time-stamped news, to proximity hosting to allow our customers to be first to market."
Demand for trading services that are hosted within close proximity of the exchange is increasing as institutions look to take advantage of low latency data provision and reduced time to trade execution. This enables firms to gain competitive advantage through programmed trading strategies that can consume data and execute trades more quickly.
This proximity hosting solution provides an end-to-end hosted service that is fully managed, and that also allows clients to co-locate their own applications within the Reuters data centre.
1 Oct 2007
Growth in IPOs Help European Hedge Funds Gain Ground
According to a press release, the new edition of IFSL's annual report; Financial Market Trends Europe vs. US 2007, shows that in three quarters of indicators, 14 out of 18, financial markets in Europe have been growing faster than those in the US between 2001 and 2006.
The 14 indicators showing improvement in Europe included 8 out of 9 in sectors such as private equity and hedge funds. Funds raised by European private equity companies have moved up from half of funds raised in North America in 2004 to almost equal in 2006.
European hedge fund assets moved up from 12% of US assets in 2001 to 42% in 2006. Growth in European IPOs has been even more dramatic, increasing ten times between 2002 and 2006 and were well ahead of US IPOs in 2005 and 2006.
The short term trend in indicators between 2005 and 2006 was also positive, with business in Europe improving relative to the US in 11 out of 18 activities.
The trend over a number of years demonstrates how London, as the capital for many of Europe's most important wholesale financial markets, is gaining in importance as a global financial center.
The 14 indicators showing improvement in Europe included 8 out of 9 in sectors such as private equity and hedge funds. Funds raised by European private equity companies have moved up from half of funds raised in North America in 2004 to almost equal in 2006.
European hedge fund assets moved up from 12% of US assets in 2001 to 42% in 2006. Growth in European IPOs has been even more dramatic, increasing ten times between 2002 and 2006 and were well ahead of US IPOs in 2005 and 2006.
The short term trend in indicators between 2005 and 2006 was also positive, with business in Europe improving relative to the US in 11 out of 18 activities.
The trend over a number of years demonstrates how London, as the capital for many of Europe's most important wholesale financial markets, is gaining in importance as a global financial center.
28 Sept 2007
FXCM’s Sentiment Aggressive Forex Managed Funds Up Over 25%
After a successful launch, FXCM's Sentiment Aggressive Managed Funds are up over 25% in its first two months since inception.
Clients had requested a more aggressive and highly leveraged version of FXCM's popular Sentiment Fund, so FXCM introduced its Sentiment Aggressive Fund in July of 2007.
These funds are divided into two strategic components, the first leverages FXCM's Speculative Sentiment Index (SSI) which gauges market sentiment to identify break out and trend trading opportunities. The second strategy is an approach that uses sophisticated technical strategies to harvest tops and bottoms in range bound markets.
This type of fund has found favor amongst many investors who are starting to recognize foreign exchange as an alternative asset class in any diversified portfolio.
In September 2006, FXCM held in excess of $215 million in customer funds out of a total of over $770 million held by Forex Dealer Members. While there are approximately 31 active Forex Dealer Members with liabilities to customers of approximately $795 million, FXCM holds approximately 1 out of every 3 dollars of customer funds held by Forex Dealer Members.
The company does warn however, that leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors.
Clients had requested a more aggressive and highly leveraged version of FXCM's popular Sentiment Fund, so FXCM introduced its Sentiment Aggressive Fund in July of 2007.
These funds are divided into two strategic components, the first leverages FXCM's Speculative Sentiment Index (SSI) which gauges market sentiment to identify break out and trend trading opportunities. The second strategy is an approach that uses sophisticated technical strategies to harvest tops and bottoms in range bound markets.
This type of fund has found favor amongst many investors who are starting to recognize foreign exchange as an alternative asset class in any diversified portfolio.
In September 2006, FXCM held in excess of $215 million in customer funds out of a total of over $770 million held by Forex Dealer Members. While there are approximately 31 active Forex Dealer Members with liabilities to customers of approximately $795 million, FXCM holds approximately 1 out of every 3 dollars of customer funds held by Forex Dealer Members.
The company does warn however, that leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors.
Hegde Fund Article Awards
It was announced today in a press release that Lehman Brothers' research on the classification of hedge fund investment styles is one of this year's Martello Award winners for best research article in alternative investments.
Lehman Brothers' research authors Arik Ben Dor, Lev Dynkin, and Anthony Gould showed that there are inconsistencies between the actual and self-proclaimed hedge fund styles. They won the award for Best Practitioner Article, for their article "Style Analysis and Classification of Hedge Funds."
Sharing the honor with Lehman's team for Best Practitioner Article were Ben Branch of the University of Massachusetts Amherst and Taewon Yang of California State University, for their article "Merger Deal Structures and Investment Strategies." The authors found that the level of wealth protection for the target firm's shareholders is likely to improve both the performance of merger/risk arbitrage trading positions and the chance of merger completion.
In the category of Best Academic Article, IXIS Corporate & Investment Bank, a subsidiary of Natixis, took the top award. Florent Pochon and Jérôme Teïletche penned the award-winning article "A Conditional Approach to Hedge Fund Risk." The authors applied a two-step conditional Bayesian approach to hedge fund risk. This approach has several advantages given specific features of hedge funds returns, notably non-linear exposure to standard assets returns and short sample history.
David McCarthy, Managing Partner and Chief Investment Officer of Martello Investment Management L.P., congratulated the recipients, "This year's winners have produced exceptional research that will contribute to investors' understanding of investment strategies and portfolio return and risk characteristics. We wish them continued success."
The annual Martello Award is sponsored by Martello Investment Management L.P., a specialist fund of funds and advisory firm based in Massachusetts. It honors the best research articles published in Institutional Investor, Inc.'s The Journal of Alternative Investments. Winners were chosen by the Editorial Advisory Board of The Journal of Alternative Investments.
Lehman Brothers' research authors Arik Ben Dor, Lev Dynkin, and Anthony Gould showed that there are inconsistencies between the actual and self-proclaimed hedge fund styles. They won the award for Best Practitioner Article, for their article "Style Analysis and Classification of Hedge Funds."
Sharing the honor with Lehman's team for Best Practitioner Article were Ben Branch of the University of Massachusetts Amherst and Taewon Yang of California State University, for their article "Merger Deal Structures and Investment Strategies." The authors found that the level of wealth protection for the target firm's shareholders is likely to improve both the performance of merger/risk arbitrage trading positions and the chance of merger completion.
In the category of Best Academic Article, IXIS Corporate & Investment Bank, a subsidiary of Natixis, took the top award. Florent Pochon and Jérôme Teïletche penned the award-winning article "A Conditional Approach to Hedge Fund Risk." The authors applied a two-step conditional Bayesian approach to hedge fund risk. This approach has several advantages given specific features of hedge funds returns, notably non-linear exposure to standard assets returns and short sample history.
David McCarthy, Managing Partner and Chief Investment Officer of Martello Investment Management L.P., congratulated the recipients, "This year's winners have produced exceptional research that will contribute to investors' understanding of investment strategies and portfolio return and risk characteristics. We wish them continued success."
The annual Martello Award is sponsored by Martello Investment Management L.P., a specialist fund of funds and advisory firm based in Massachusetts. It honors the best research articles published in Institutional Investor, Inc.'s The Journal of Alternative Investments. Winners were chosen by the Editorial Advisory Board of The Journal of Alternative Investments.
27 Sept 2007
600 Energy and Environmental Hedge Funds Now Listed
The Energy Hedge Fund Center, LLC has announced that it is now tracking over 600 energy and Recent trends include the growth of carbon and environmental energy funds and, as the total universe of energy hedge funds has grown and matured funds of hedge funds in the energy and environment sector.
Dr. Gary M. Vasey, co-founder of the Energy Hedge Fund Center, LLC said, "Our breakthrough study of hedge funds in energy issued in late 2004 identified 180 hedge funds, mostly equity long/short and commodity trading vehicles. Since then, the directory has grown three-fold and the types of strategies followed by hedge funds in energy and environment has also grown and matured."
"Today, nothing much has changed in terms of the attractiveness of all aspects of the energy industry for investors and that is reflected in the growing number of hedge funds that operate in the various energy markets and sectors."
Peter C. Fusaro, co-founder of the Energy Hedge Fund Sector and chairman of Global Change Associates in New York said, "We expect more energy commodity and green funds for 2008!.....Despite well publicized energy hedge fund blow ups, we continue to see more investors deploying capital in the energy and environmental sector. We also see the closure to investors of some larger funds and niche strategies which leads to more opportunities for new fund managers in this dynamic sector,"
Since its launch in October 2004, the directory has constantly grown reflecting investor appetite for energy oriented hedge funds.
Dr. Gary M. Vasey, co-founder of the Energy Hedge Fund Center, LLC said, "Our breakthrough study of hedge funds in energy issued in late 2004 identified 180 hedge funds, mostly equity long/short and commodity trading vehicles. Since then, the directory has grown three-fold and the types of strategies followed by hedge funds in energy and environment has also grown and matured."
"Today, nothing much has changed in terms of the attractiveness of all aspects of the energy industry for investors and that is reflected in the growing number of hedge funds that operate in the various energy markets and sectors."
Peter C. Fusaro, co-founder of the Energy Hedge Fund Sector and chairman of Global Change Associates in New York said, "We expect more energy commodity and green funds for 2008!.....Despite well publicized energy hedge fund blow ups, we continue to see more investors deploying capital in the energy and environmental sector. We also see the closure to investors of some larger funds and niche strategies which leads to more opportunities for new fund managers in this dynamic sector,"
Since its launch in October 2004, the directory has constantly grown reflecting investor appetite for energy oriented hedge funds.
26 Sept 2007
Hedge Funds Backup Habitat For Humanity
An initiative by the hedge fund community to provide New York City families with home ownership opportunities through Habitat for Humanity NY, has announced the launch of a campaign called Hedge Funds for Habitat.
Most immediately, this campaign will help Habitat-NYC complete its 41 unit affordable condominium buildings on Atlantic Avenue in Ocean Hill-Brownsville, Brooklyn, a $13 million state-of-the-art green complex and the largest multifamily complex ever constructed by any Habitat affiliate.
Championed by Stuart Feffer, co-chief executive officer of Lacrosse Global Fund Services, Hedge Funds for Habitat NY is calling on supporters from hedge funds, private equity firms and the service provider community who recognize that there are many working families in New York City living in unsafe and overcrowded conditions whose lives will be forever changed with a Habitat home.
“Our initial goal is to help Habitat-NYC give 41 hardworking families a safe place to live, the opportunity to realize their dreams of home ownership and the ability to secure their future,” Feffer said. “Hedge fund professionals know that investing in human capital is key to the success of our industry... and our city. Safe, decent and affordable homes will help New York’s working families to thrive. And that helps all of us flourish.”
“Habitat-NYC is proud to partner with Stuart Feffer, LaCrosse Global Fund Services and New York City’s hedge fund industry,” said Josh Lockwood, acting executive director of Habitat-NYC. “This unique collaboration unites hedge fund leaders.”
Living up to the Habitat motto “we give a hand up, not a handout,” future homeowner families will work alongside volunteers to construct their own simple, decent and affordable homes. The Hedge Funds for Habitat campaign will help underwrite the recruitment, selection and financial literacy training of the 41 first-time home buyers and help enable Habitat-NYC to complete these “green” condominiums.
Designed by Dattner Architects, construction includes energy efficient and environmentally friendly materials and design. The complex is expected to qualify for a LEED rating, which will allow the homeowners to save up to 30% on their energy bills and raise their families in a healthy home.
Most immediately, this campaign will help Habitat-NYC complete its 41 unit affordable condominium buildings on Atlantic Avenue in Ocean Hill-Brownsville, Brooklyn, a $13 million state-of-the-art green complex and the largest multifamily complex ever constructed by any Habitat affiliate.
Championed by Stuart Feffer, co-chief executive officer of Lacrosse Global Fund Services, Hedge Funds for Habitat NY is calling on supporters from hedge funds, private equity firms and the service provider community who recognize that there are many working families in New York City living in unsafe and overcrowded conditions whose lives will be forever changed with a Habitat home.
“Our initial goal is to help Habitat-NYC give 41 hardworking families a safe place to live, the opportunity to realize their dreams of home ownership and the ability to secure their future,” Feffer said. “Hedge fund professionals know that investing in human capital is key to the success of our industry... and our city. Safe, decent and affordable homes will help New York’s working families to thrive. And that helps all of us flourish.”
“Habitat-NYC is proud to partner with Stuart Feffer, LaCrosse Global Fund Services and New York City’s hedge fund industry,” said Josh Lockwood, acting executive director of Habitat-NYC. “This unique collaboration unites hedge fund leaders.”
Living up to the Habitat motto “we give a hand up, not a handout,” future homeowner families will work alongside volunteers to construct their own simple, decent and affordable homes. The Hedge Funds for Habitat campaign will help underwrite the recruitment, selection and financial literacy training of the 41 first-time home buyers and help enable Habitat-NYC to complete these “green” condominiums.
Designed by Dattner Architects, construction includes energy efficient and environmentally friendly materials and design. The complex is expected to qualify for a LEED rating, which will allow the homeowners to save up to 30% on their energy bills and raise their families in a healthy home.
Bear Stearns Hires New Hedge Fund Manager
Bear Stearns today announced new additions to their staff, among others, Douglas C. Stern, a senior managing director and industry veteran who will help manage the prime brokerage sales team focused on the firm’s largest hedge fund relationships.
“Bear Stearns Prime Brokerage Services offers clients the best products and service by top professionals in the business,” said Louis Lebedin, head of Prime Brokerage Services. “These additions to our staff will add terrific value to our franchise and will help us to provide clients with more world-class products and capabilities.” The strength of the prime brokerage franchise contributed to record revenues for Bear Stearns’ Global Clearing Services division for the third quarter of 2007.
Douglas Stern, who has 23 years experience in institutional sales and prime brokerage services, joins from Morgan Stanley’s prime brokerage unit, where for seven years he was responsible for managing relationships and developing business with some of that firm’s largest clients. He also managed a team responsible for newly launched hedge funds. Mr. Stern holds a B.A. in Economics from St. Lawrence University.
In the 2007 Global Custodian Prime Brokerage Survey, Bear Stearns was ranked the No. 3 prime broker globally and was awarded 50 out of a possible 72 “Best in Class” awards. In the latest Lipper HedgeWorld Prime Brokerage survey, Bear Stearns was the leading prime broker by assets for U.S. hedge funds and the No. 2 prime broker for the largest non-US funds.
“Bear Stearns Prime Brokerage Services offers clients the best products and service by top professionals in the business,” said Louis Lebedin, head of Prime Brokerage Services. “These additions to our staff will add terrific value to our franchise and will help us to provide clients with more world-class products and capabilities.” The strength of the prime brokerage franchise contributed to record revenues for Bear Stearns’ Global Clearing Services division for the third quarter of 2007.
Douglas Stern, who has 23 years experience in institutional sales and prime brokerage services, joins from Morgan Stanley’s prime brokerage unit, where for seven years he was responsible for managing relationships and developing business with some of that firm’s largest clients. He also managed a team responsible for newly launched hedge funds. Mr. Stern holds a B.A. in Economics from St. Lawrence University.
In the 2007 Global Custodian Prime Brokerage Survey, Bear Stearns was ranked the No. 3 prime broker globally and was awarded 50 out of a possible 72 “Best in Class” awards. In the latest Lipper HedgeWorld Prime Brokerage survey, Bear Stearns was the leading prime broker by assets for U.S. hedge funds and the No. 2 prime broker for the largest non-US funds.
25 Sept 2007
“Hedge Funds Demystified”
Applied Learning announced today the launch of the “Open Course” Program, the first course being, “Hedge Funds Demystified”. It will run in London on December 4tt offering tutors of outstanding caliber and experience. It will be the first time Applied Learning has opened its courses to institutional clients and (individual) financial professionals.
The one-day course will allow delegates to get an insider’s insight into how hedge funds really work, the different investment strategies and techniques hedge funds employ, who invests in hedge funds, and why. Understanding different hedge fund investment styles will be addressed, as well as the regulation and risk management of the hedge fund sector.
Gerald Ashley, director at Applied Learning says, “ While we do not expect Northern Rock style queues, we are seeing a lot of interest in training in understanding risk and behavioral finance. The current market turmoil is an ideal backdrop for launching this course. Investment professionals need facts, not half- baked opinions and vague rumors about how hedge funds really operate. This course is the right topic, with the right content, with the very best trainer and critically, available at the right time.”
This will be the first time that a wider audience will be able to attend Applied Learning training courses. The training company has established a solid reputation as a high quality provider of professional level training for the world’s major banks and trading institutions. Now it brings innovative and specialized training, which in the past was available only in-house, to financial markets professionals.
Future topics in the Program will include specialist training on credit derivatives, behavioral finance and commodity investment. The Open Courses will be initially available in London with plans to roll out to other financial centers in 2008.
The one-day course will allow delegates to get an insider’s insight into how hedge funds really work, the different investment strategies and techniques hedge funds employ, who invests in hedge funds, and why. Understanding different hedge fund investment styles will be addressed, as well as the regulation and risk management of the hedge fund sector.
Gerald Ashley, director at Applied Learning says, “ While we do not expect Northern Rock style queues, we are seeing a lot of interest in training in understanding risk and behavioral finance. The current market turmoil is an ideal backdrop for launching this course. Investment professionals need facts, not half- baked opinions and vague rumors about how hedge funds really operate. This course is the right topic, with the right content, with the very best trainer and critically, available at the right time.”
This will be the first time that a wider audience will be able to attend Applied Learning training courses. The training company has established a solid reputation as a high quality provider of professional level training for the world’s major banks and trading institutions. Now it brings innovative and specialized training, which in the past was available only in-house, to financial markets professionals.
Future topics in the Program will include specialist training on credit derivatives, behavioral finance and commodity investment. The Open Courses will be initially available in London with plans to roll out to other financial centers in 2008.
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