A pair of SemGroup LP executives are the only two administrators named to receive bonuses from both the bankrupt Tulsa company and its publicly held and struggling subsidiary, SemGroup Energy Partners LP, tulsaworld.com first reported Thursday.
Pete Schwiering and Jerry Parsons were named among 10 SemGroup LP leaders slated to receive up to $3.8 million in combined incentives if the Tulsa-based company meets or exceeds certain criteria, according to bankruptcy court records in Delaware. The incentives are designed to keep employees on board while SemGroup LP sells off assets or emerges from Chapter 11 protection.
Schwiering and Parsons both could gain up to $468,750 in additional pay under the SemGroup LP incentive plan. Schwiering heads up SemCrude oil operations, while Parsons leads the company's SemMaterials asphalt unit.
Last month, SemGroup Energy Partners' compensation committee approved bonus pay for five executives, including CEO Kevin Foxx, Schwiering and Parsons, according to a Securities and Exchange Commission filing.
Parsons' bonus pay for his SGLP asphalt work totaled $215,000, while Schwiering received an additional $120,000 for leading the public company's crude oil operations, according to reports.
The parent SemGroup filed for bankruptcy protection July 22 after admitting its traders lost $2.4 billion in failed oil futures transactions. The company also owes $2.5 billion to banks and other lenders and up to $1 billion to oil and gas producers who sold their product on credit, according to reports.
Hedge funds Manchester Securities and Alerian Capital Management gained SGLP board control when the parent company defaulted on a $150 million loan, and the public firm tried to find other, third-party customers for its storage and pipeline services.
SemGroup Energy Partners is not a debtor in the bankruptcy case, but it suffers from its own credit default and cash-flow challenges, records show. Schwiering has worked for SemGroup since 2000, the year that it was founded. Parsons joined SemGroup in 2006. Neither SemGroup LP or SGLP spokesmen could be reached for comment.
15 Jan 2009
December Investor Survey finds Managment fees too High
When surveyed about what they think about fee levels and value for money offered by investment managers, investors believe that managment fees are too high.
Two surveys were conducted by bfinance in December, questioning institutional investors and asset managers from Europe, North America, and the Gulf Region.
"The results indicate that pension funds believe investment management fees are too high and need to come down, and a majority of managers seem to agree." David Vafai, CEO of bfinance commented.
With regards to hedge fund and fund of hedge fund fee levels, pension funds generally feel that all fees need to be reduced. 77% of respondents state their first priority is for lower base fees, followed by 52% who indicate their desire for performance fees to be reduced and for there to be an increase in hurdle rates. Also, 65% of investors say that these performance fees should be calculated over a four or five year period.
"Clearly, investors are still willing to pay performance fees to reward long-term skill but are no longer willing to pay active fees for beta or for 'luck'", commented Olivier Cassin, Managing Director, Research and Development for bfinance.
Hedge fund managers agree that fees would likely go down and indicate they expect the median level for base fees for FoHFs to decline 9% to 95bps and for the median level of performance fees for hedge funds to decline 25% to 13%.
Vafai concluded, "Although the study indicates disenchantment with the industry in general, and disenchantment with Fund of Hedge Funds and GTAA managers comes out particularly clearly, the study also rather paradoxically suggests that allocations to FoHFs, as well GTAA, Infrastructure, Real Estate and Private Equity FoFs are set to increase in the future. This confirms the results of our recent study on the impact of the crisis on pension fund asset allocation"
Two surveys were conducted by bfinance in December, questioning institutional investors and asset managers from Europe, North America, and the Gulf Region.
"The results indicate that pension funds believe investment management fees are too high and need to come down, and a majority of managers seem to agree." David Vafai, CEO of bfinance commented.
With regards to hedge fund and fund of hedge fund fee levels, pension funds generally feel that all fees need to be reduced. 77% of respondents state their first priority is for lower base fees, followed by 52% who indicate their desire for performance fees to be reduced and for there to be an increase in hurdle rates. Also, 65% of investors say that these performance fees should be calculated over a four or five year period.
"Clearly, investors are still willing to pay performance fees to reward long-term skill but are no longer willing to pay active fees for beta or for 'luck'", commented Olivier Cassin, Managing Director, Research and Development for bfinance.
Hedge fund managers agree that fees would likely go down and indicate they expect the median level for base fees for FoHFs to decline 9% to 95bps and for the median level of performance fees for hedge funds to decline 25% to 13%.
Vafai concluded, "Although the study indicates disenchantment with the industry in general, and disenchantment with Fund of Hedge Funds and GTAA managers comes out particularly clearly, the study also rather paradoxically suggests that allocations to FoHFs, as well GTAA, Infrastructure, Real Estate and Private Equity FoFs are set to increase in the future. This confirms the results of our recent study on the impact of the crisis on pension fund asset allocation"
14 Jan 2009
Alternative Investment Specialist Joins Canadian Hedge Fund Manager
Todd Groome is joining Diversified Global Asset Management (DGAM) as a Managing Director, effective February 1, 2009. Responsible for business development, Groome will also advise the investment team on macro investment themes and the global economic and policy environment.
"I am extremely pleased to join DGAM, a firm that is known for its expertise in hedge fund investing, its focus on business and operational integrity, and its leading edge thinking in a variety of investment areas, including in particular DGAM's strong commitment to building strategic relationships with its clients." Todd Groome said." Groome will be based out of DGAM's Toronto office.
With a wealth of experience in capital markets in both the public and private sectors, previously positioned as Managing Director and Head of the Financial Institutions Groups of Deutsche Bank and Credit Suisse in London, managing the European High Yield origination business for a period of time.
He also worked with Merrill Lynch and was a consultant to Hovde Capital Advisors, a hedge fund and merchant banking operation in Washington, focusing on financial institutions.
In December, 2008, Groome was named non-Executive Chairman of the Alternative Investment Management Association ("AIMA"), with effect from January 1, 2009.
George Main, CEO of DGAM, commented further, saying "I am delighted that Todd Groome will be joining the firm. Todd's deep experience, insights and stature in the global financial community will be invaluable assets as we take DGAM into our next growth phase."
"I am extremely pleased to join DGAM, a firm that is known for its expertise in hedge fund investing, its focus on business and operational integrity, and its leading edge thinking in a variety of investment areas, including in particular DGAM's strong commitment to building strategic relationships with its clients." Todd Groome said." Groome will be based out of DGAM's Toronto office.
With a wealth of experience in capital markets in both the public and private sectors, previously positioned as Managing Director and Head of the Financial Institutions Groups of Deutsche Bank and Credit Suisse in London, managing the European High Yield origination business for a period of time.
He also worked with Merrill Lynch and was a consultant to Hovde Capital Advisors, a hedge fund and merchant banking operation in Washington, focusing on financial institutions.
In December, 2008, Groome was named non-Executive Chairman of the Alternative Investment Management Association ("AIMA"), with effect from January 1, 2009.
George Main, CEO of DGAM, commented further, saying "I am delighted that Todd Groome will be joining the firm. Todd's deep experience, insights and stature in the global financial community will be invaluable assets as we take DGAM into our next growth phase."
13 Jan 2009
Hedge Fund Editor to Join NetSalonFX as Adviser
Chris Gillick, currently an associate editor with Trader Monthly and Dealmaker magazines, has agreed to join NetSalonFX as an adviser, principal/branch manager, and regulatory liaison, having just completed his NASD Series 30 exam.
As an editor for Trader Monthly and Dealmaker, he has covered the hedge fund industry, brokerages, private equity and investment banking. In 2008, he helped produce several widely followed industry lists such as the Trader Monthly 100, the Trader Monthly Top 30 Under 30, the Dealmaker Top 40 Under 40, and Dealmaker's Party Crashers, featuring the top women in private equity.
"I am happy to have Chris aboard," Says Lance A. Perry, CEO of NetSalonFX and its parent company, NetSalon Software Development Inc, "He brings great credibility as a financial professional with deep knowledge of the foreign exchange market, and as a journalist covering so many sectors of the financial world. He's going to be a great asset to our clients."
"I'm very much looking forward to working with the NetSalonFX team," says Gillick. "I'm excited to get my into the trading world while still pursuing my passion of journalism."
NetSalonFX's clients are all accredited investors, whom Gillick is accustomed to conversing with regularly in his coverage of the world of high finance. "I have had the privilege of meeting people in every corner of the world of finance, including introducing brokers in the foreign exchange market. Unfortunately not all IBs have the best intentions when selling their products. However, NetSalonFX has done a great job of screening out unqualified investors and building a community of traders who understand fully the great risks, and rewards, of the foreign exchange market."
As an editor for Trader Monthly and Dealmaker, he has covered the hedge fund industry, brokerages, private equity and investment banking. In 2008, he helped produce several widely followed industry lists such as the Trader Monthly 100, the Trader Monthly Top 30 Under 30, the Dealmaker Top 40 Under 40, and Dealmaker's Party Crashers, featuring the top women in private equity.
"I am happy to have Chris aboard," Says Lance A. Perry, CEO of NetSalonFX and its parent company, NetSalon Software Development Inc, "He brings great credibility as a financial professional with deep knowledge of the foreign exchange market, and as a journalist covering so many sectors of the financial world. He's going to be a great asset to our clients."
"I'm very much looking forward to working with the NetSalonFX team," says Gillick. "I'm excited to get my into the trading world while still pursuing my passion of journalism."
NetSalonFX's clients are all accredited investors, whom Gillick is accustomed to conversing with regularly in his coverage of the world of high finance. "I have had the privilege of meeting people in every corner of the world of finance, including introducing brokers in the foreign exchange market. Unfortunately not all IBs have the best intentions when selling their products. However, NetSalonFX has done a great job of screening out unqualified investors and building a community of traders who understand fully the great risks, and rewards, of the foreign exchange market."
Eze's Virtual Hotel Suites
Hedge fund manager, Eze Castle Integration has introduced a web version of its "hedge fund hotel" for small hedge funds with fewer than 10 people.
The company introduced the fully managed physical suite in November 2007 and the Eze says that the new offering has many of the same options now, over the Internet, using Citrix servers and thin clients. Users pay a monthly subscription fee for this hosted platform using their own desktops and basic networking.
"We act as a cloud," says Bob Guilbert, managing director. "As we add more applications to our back end data center, we'll enable clients to get things like CRM services, accounting services and anything else that might be necessary to run a back office operation. The benefit of this solution is they don't have to build out an IT infrastructure, they don't have to build out a data center. That makes it very easy for them to become operational."
The company introduced the fully managed physical suite in November 2007 and the Eze says that the new offering has many of the same options now, over the Internet, using Citrix servers and thin clients. Users pay a monthly subscription fee for this hosted platform using their own desktops and basic networking.
"We act as a cloud," says Bob Guilbert, managing director. "As we add more applications to our back end data center, we'll enable clients to get things like CRM services, accounting services and anything else that might be necessary to run a back office operation. The benefit of this solution is they don't have to build out an IT infrastructure, they don't have to build out a data center. That makes it very easy for them to become operational."
12 Jan 2009
Directory of Commodity Exchange Traded Funds Launched by Energy Hedge Fund Center
The Energy Hedge Fund Center, an online community focused on energy and environmental alternative investments, has launched a Directory of Commodity-focused Exchange Traded Funds that will appeal to ordinary investors. The Directory lists Exchange Traded Funds, Exchange Traded Notes and Exchange Traded Commodities in Excel format.
"Over the last several years there has also been an explosion of Exchange Traded instruments accessible by ordinary investors that are designed to provide exposure to commodities," reports Dr. Gary M. Vasey, Co-Principal of EHFC. "This directory is designed as a single source for investors interested in these vehicles."
"The financial crisis has driven more business to exchanges and ETFs. We expect more growth in this sector next year," said Peter Fusaro, Co-Principal, Energy Hedge Fund Center.
"Over the last several years there has also been an explosion of Exchange Traded instruments accessible by ordinary investors that are designed to provide exposure to commodities," reports Dr. Gary M. Vasey, Co-Principal of EHFC. "This directory is designed as a single source for investors interested in these vehicles."
"The financial crisis has driven more business to exchanges and ETFs. We expect more growth in this sector next year," said Peter Fusaro, Co-Principal, Energy Hedge Fund Center.
Debt Crisis for New York Times Hedge Fund Shareholders
Some analysts are saying that the mighty New York Times might be headed down the same path as the bankrupt Tribune Company, owner of the Chicago Tribune and Los Angeles Times.
Hedge fund shareholders, Harbinger Capital Partners Funds ("Harbinger") and Firebrand Partners ("Firebrand") own 19% of The New York Times Company, and the outlook does not look good. NYT is approximately $1 billion in debt, the result of its move to a new building on Eighth Avenue a couple of years ago.
Harbinger Capital Partners has grown to one of the 15 largest hedge funds, by assets, in America. Firebrand Partners is an operational activist firm that invests in publicly-traded companies whose brand equity represents significant upside relative to their market capitalization.
The New York Times Company includes The New York Times, the International Herald Tribune, The Boston Globe and 15 other daily newspapers.
Hedge fund shareholders, Harbinger Capital Partners Funds ("Harbinger") and Firebrand Partners ("Firebrand") own 19% of The New York Times Company, and the outlook does not look good. NYT is approximately $1 billion in debt, the result of its move to a new building on Eighth Avenue a couple of years ago.
Harbinger Capital Partners has grown to one of the 15 largest hedge funds, by assets, in America. Firebrand Partners is an operational activist firm that invests in publicly-traded companies whose brand equity represents significant upside relative to their market capitalization.
The New York Times Company includes The New York Times, the International Herald Tribune, The Boston Globe and 15 other daily newspapers.
Northern Arizona Land Eyed by Hedge Funds
Rolling Hills Ranches, LLC has has been in talks with a number of investors and hedge funds in recent weeks, engaging experts from the Master Planned Communities group of Kitchell Construction to provide planning oversight for further commercial development of the Rolling Hills Ranches community.
Von Jenson, General Manager, Rolling Hills Ranches, says, "If you're invested in stocks to retire on.... you'll definitely need a nice place to retire - Rolling Hills Ranches in northern Arizona is a great place to ease into a fresh lifestyle to enjoy yourself."
Kitchell is a diversified corporation providing general contracting, construction management and real estate development services to public and private sector clients from offices in Arizona, California and Nevada.
Rolling Hills Ranches is a developed ranch community located in northern Arizona. The ranch is comprised of lots suitable for home building or ranching and is ideal for those who wish to enjoy a rural lifestyle. Power and water are available and the community is bordered by paved roads on two sides.
Von Jenson, General Manager, Rolling Hills Ranches, says, "If you're invested in stocks to retire on.... you'll definitely need a nice place to retire - Rolling Hills Ranches in northern Arizona is a great place to ease into a fresh lifestyle to enjoy yourself."
Kitchell is a diversified corporation providing general contracting, construction management and real estate development services to public and private sector clients from offices in Arizona, California and Nevada.
Rolling Hills Ranches is a developed ranch community located in northern Arizona. The ranch is comprised of lots suitable for home building or ranching and is ideal for those who wish to enjoy a rural lifestyle. Power and water are available and the community is bordered by paved roads on two sides.
8 Jan 2009
Millennium Outsources all Fund Managment to GlobeOp
Millennium Management LLC, a global multi-strategy investment management firm with over $11 billion in assets under management, has outsourced fund administration to hedge fund manager GlobeOp Financial Services.
GlobeOp became administrator of record for all three Millennium funds on January 1, 2009 (Millennium USA, LP, Millennium International, Ltd., and Millennium Global Estate, LP).
“We are sending a strong signal about our commitment to transparency and the independent validation of Millennium’s portfolio positions, asset pricing and expense allocation by appointing GlobeOp as an independent administrator, and by increasing our online investor portfolio reporting,” said Terry Feeney, co-president and chief operating officer of Millennium. “This is also consistent with our strategy of enabling our fund investment professionals to concentrate their energies on what they do best - managing portfolios – supported by the trading, operational, technology and risk management infrastructure which is essential in this industry. The quality of the services GlobeOp has provided since 2006 was key to our appointing them as our independent administrator.”
“We welcome this opportunity to strengthen our relationship with Millennium by providing independent fund administration services,” said Vernon Barback, GlobeOp president and chief operating officer. “We will quickly demonstrate to Millennium’s investors the value of our robust and scalable technology platform, 24/5 global support network, and process controls affirmed by SAS 70 Type ll certification.
Established in 2000, GlobeOp serves more than 180 clients worldwide, representing $95billion in assets under administration. As an independent financial technology specialist, GlobeOp provides automated, integrated middle and back-office administration to hedge funds and asset management firms—including banks, insurance companies, mutual & pension funds and proprietary traders.
GlobeOp became administrator of record for all three Millennium funds on January 1, 2009 (Millennium USA, LP, Millennium International, Ltd., and Millennium Global Estate, LP).
“We are sending a strong signal about our commitment to transparency and the independent validation of Millennium’s portfolio positions, asset pricing and expense allocation by appointing GlobeOp as an independent administrator, and by increasing our online investor portfolio reporting,” said Terry Feeney, co-president and chief operating officer of Millennium. “This is also consistent with our strategy of enabling our fund investment professionals to concentrate their energies on what they do best - managing portfolios – supported by the trading, operational, technology and risk management infrastructure which is essential in this industry. The quality of the services GlobeOp has provided since 2006 was key to our appointing them as our independent administrator.”
“We welcome this opportunity to strengthen our relationship with Millennium by providing independent fund administration services,” said Vernon Barback, GlobeOp president and chief operating officer. “We will quickly demonstrate to Millennium’s investors the value of our robust and scalable technology platform, 24/5 global support network, and process controls affirmed by SAS 70 Type ll certification.
Established in 2000, GlobeOp serves more than 180 clients worldwide, representing $95billion in assets under administration. As an independent financial technology specialist, GlobeOp provides automated, integrated middle and back-office administration to hedge funds and asset management firms—including banks, insurance companies, mutual & pension funds and proprietary traders.
7 Jan 2009
Rival Launches RRSP Fund
Canadian hedge fund manager Rival Capital Management Inc., announced the launch of the Rival North American RRSP Growth Fund, an RRSP eligible fund that will invest in the current Rival North American Growth Fund LP.
The new fund plans to buy units in the current fund instead of holding individual securities, the fund enables accredited investors who wish to make RRSP investments to gain access to the Firm’s flagship Fund through their RRSP.
Investing primarily from both a long and short perspective in small and midcap growth stocks listed in Canada and the US, the fund’s investment process is centered around a top-down disciplined technical and fundamental approach. The fund employs a rigorous proprietary screening process to identify stocks exhibiting certain technical and fundamental characteristics that Rival considers key to identifying long term performance.
Tony Warzel, Chief Investment Officer and head of the Rival investment team is primarily responsible for stock selection as well as overall portfolio management of the Rival North American Growth Fund.
With approximately $14.9 million in assets under management, Rival Capital was founded in 2006. It is a niche investment management firm that provides pooled fund portfolio management services to accredited investors.
The new fund plans to buy units in the current fund instead of holding individual securities, the fund enables accredited investors who wish to make RRSP investments to gain access to the Firm’s flagship Fund through their RRSP.
Investing primarily from both a long and short perspective in small and midcap growth stocks listed in Canada and the US, the fund’s investment process is centered around a top-down disciplined technical and fundamental approach. The fund employs a rigorous proprietary screening process to identify stocks exhibiting certain technical and fundamental characteristics that Rival considers key to identifying long term performance.
Tony Warzel, Chief Investment Officer and head of the Rival investment team is primarily responsible for stock selection as well as overall portfolio management of the Rival North American Growth Fund.
With approximately $14.9 million in assets under management, Rival Capital was founded in 2006. It is a niche investment management firm that provides pooled fund portfolio management services to accredited investors.
Chairman of Hedge Funds Care to Ring the NASDAQ Closing Bell
President and Chairman of Hedge Funds Care (HFC), John Budzyna, will preside over the Closing Bell to mark the 11th Annual New York Open Your Heart to the Children Benefit to be held at Cipriani 42nd Street on February 11, 2009.
Hedge fund industry professionals established HFC, a charitable organisation focused on assisting young victims of abuse, in 1998. Since that time, chapters have opened in New York, San Francisco, Chicago, Atlanta, Boston, Denver, Toronto, Cayman, and most recently in London.
The organisation comprises those companies with interests in hedge funds, including investment managers, investors, prime brokers, attorneys, accountants, administrators and information providers.
Hedge fund industry professionals established HFC, a charitable organisation focused on assisting young victims of abuse, in 1998. Since that time, chapters have opened in New York, San Francisco, Chicago, Atlanta, Boston, Denver, Toronto, Cayman, and most recently in London.
The organisation comprises those companies with interests in hedge funds, including investment managers, investors, prime brokers, attorneys, accountants, administrators and information providers.
5 Jan 2009
Finvest Launches Private Equity Fund
After being awarded $2.5 billion in allocation for investment in private equity, hedge fund manager Finvest Asset Management, announced the launch of a private equity initiative. Finvest is also separately dedicating $300 million to a fund of funds.
The $2.5 billion capital allocation to Finvest is being made by a European family office seeking to increase its exposure in the private equity space.
Targeting companies which are listed on the main boards in Northern American and European markets, the fund will seek to allocate capital to between 25 and 100 companies, with each allocation ranging in a value of between $10 million and $250 million.
The new fund's time horizon will be between 3-5 years, although liquidity will be an important criterion assessing risk. Companies below a $200 million market capitalization will not be discounted, however, the fund will be favorably disposed towards companies with higher market capitalization levels, and which exhibit a high percentage of outstanding shares. The model which is being applied by Finvest is slightly different to the typical private equity structure, which generally would consider stakes in private companies which are not listed and perhaps seek to extract value through an IPO.
The team at the Finvest Private Equity fund indicated that their due diligence turn around period is quite aggressive. "While we are not looking to cut corners on due diligence, we are looking to fast track the allocation process, so that we can take advantage of a market which has been beaten to shreds," said Finvest portfolio strategist Mayer Greenwald.
"We do not have an agenda to take control or necessarily secure a controlling interest in the firm. We typically would base an interest in a company on the fact that management know what they are doing, and understand their area of endeavor better than others. Our philosophy is to provide company management with additional capital, and give them the opportunity to continue running with the ball. Obviously, we appreciate regular feedback on progress or challenges which are being faced in the industry." Greenwald concluded.
The $2.5 billion capital allocation to Finvest is being made by a European family office seeking to increase its exposure in the private equity space.
Targeting companies which are listed on the main boards in Northern American and European markets, the fund will seek to allocate capital to between 25 and 100 companies, with each allocation ranging in a value of between $10 million and $250 million.
The new fund's time horizon will be between 3-5 years, although liquidity will be an important criterion assessing risk. Companies below a $200 million market capitalization will not be discounted, however, the fund will be favorably disposed towards companies with higher market capitalization levels, and which exhibit a high percentage of outstanding shares. The model which is being applied by Finvest is slightly different to the typical private equity structure, which generally would consider stakes in private companies which are not listed and perhaps seek to extract value through an IPO.
The team at the Finvest Private Equity fund indicated that their due diligence turn around period is quite aggressive. "While we are not looking to cut corners on due diligence, we are looking to fast track the allocation process, so that we can take advantage of a market which has been beaten to shreds," said Finvest portfolio strategist Mayer Greenwald.
"We do not have an agenda to take control or necessarily secure a controlling interest in the firm. We typically would base an interest in a company on the fact that management know what they are doing, and understand their area of endeavor better than others. Our philosophy is to provide company management with additional capital, and give them the opportunity to continue running with the ball. Obviously, we appreciate regular feedback on progress or challenges which are being faced in the industry." Greenwald concluded.
Hedge Fund Manager Waives Managment Fees
Renaissance Institutional Futures, a $3 billion futures fund run by hedge fund management company, Renaissance Technologies, has waived all it's management fees for 2009, even if the fund delivers good results in 2009, according to the Wall Street Journal.
Renaissance told investors in a end-of-year letter that the futures fund was waiving it's 1% fixed management fee following poor performance in 2008. The discount is estimated by the Journal to save investors $30 million.
Renaissance Technologies was started in 1982 by James Simons, Renaissance currently has approximately $20 billion in assets under management. The company operates in East Setauket, Long Island, New York, near Stony Brook University. Administrative functions are handled out of offices in Manhattan.
Renaissance told investors in a end-of-year letter that the futures fund was waiving it's 1% fixed management fee following poor performance in 2008. The discount is estimated by the Journal to save investors $30 million.
Renaissance Technologies was started in 1982 by James Simons, Renaissance currently has approximately $20 billion in assets under management. The company operates in East Setauket, Long Island, New York, near Stony Brook University. Administrative functions are handled out of offices in Manhattan.
2 Jan 2009
Altos Places Hedge Fund Shareholders on Board
French IT services group Atos Origin is holding a shareholder meeting on Feb. 10, making board changes and initiating a plan to speed up recovery spearheaded by its new chief executive Thierry Breton.
Atos Origin is replacing it's current structure for a single managing board headed by a Chairman and CEO, according to a Reuters report.
Benoit d'Angelin, who represents hedge fund Centaurus on Atos's current supervisory board, will not seek a seat on the new board, Centaurus recently cut its direct stake in Atos in September to 6.66% from around 12%, selling its shares to PAI Partners.
PAI Partners, which is Atos's main shareholder with a 22.61% holding, would now have three representatives on Atos's new board, the list showed. Centaurus, together with Pardus Capital, forced board changes at Atos Origin last year after a long-running battle between the company and the activist hedge funds. The two funds still own a combined 16.71% of Atos capital.
Pardus, which sources have said has no plans to sell its stake in Atos, will keep its representative on Atos's new board, Behdad Alizadeh.
Meanwhile Jean-Paul Bechat, the former head of Safran's managing board, and LVMH executive Nicolas Bazire, will sit on the new board as independent members.
Atos Origin gave the following composition of the 12-member board, which has yet to be approved by shareholders:
Rene Abate, former chairman of Boston consulting Group; Bedhad Alizadeh, Partner, Pardus Capital Management; Nicolas Bazire, LVMH Exec Committee member, Acquisitions; Jean-Paul Bechat, former head of Safran Managing Board; Thierry Breton, Atos Origin Chief Executive; Dominique Megret, Chairman of Pai Partners; Bertrand Meunier, Head of Investments at Pai Partners; Michel Paris, Senior Partner at Pai Partners; Vernon Sankey, former Chair and CEO of Reckitt & Colman, UK; Jean-Philippe Thierry, AGF Chairman; also on the list is one independent member, who has yet to be named and one representative of the workers holding Atos shares.
Atos Origin is replacing it's current structure for a single managing board headed by a Chairman and CEO, according to a Reuters report.
Benoit d'Angelin, who represents hedge fund Centaurus on Atos's current supervisory board, will not seek a seat on the new board, Centaurus recently cut its direct stake in Atos in September to 6.66% from around 12%, selling its shares to PAI Partners.
PAI Partners, which is Atos's main shareholder with a 22.61% holding, would now have three representatives on Atos's new board, the list showed. Centaurus, together with Pardus Capital, forced board changes at Atos Origin last year after a long-running battle between the company and the activist hedge funds. The two funds still own a combined 16.71% of Atos capital.
Pardus, which sources have said has no plans to sell its stake in Atos, will keep its representative on Atos's new board, Behdad Alizadeh.
Meanwhile Jean-Paul Bechat, the former head of Safran's managing board, and LVMH executive Nicolas Bazire, will sit on the new board as independent members.
Atos Origin gave the following composition of the 12-member board, which has yet to be approved by shareholders:
Rene Abate, former chairman of Boston consulting Group; Bedhad Alizadeh, Partner, Pardus Capital Management; Nicolas Bazire, LVMH Exec Committee member, Acquisitions; Jean-Paul Bechat, former head of Safran Managing Board; Thierry Breton, Atos Origin Chief Executive; Dominique Megret, Chairman of Pai Partners; Bertrand Meunier, Head of Investments at Pai Partners; Michel Paris, Senior Partner at Pai Partners; Vernon Sankey, former Chair and CEO of Reckitt & Colman, UK; Jean-Philippe Thierry, AGF Chairman; also on the list is one independent member, who has yet to be named and one representative of the workers holding Atos shares.
31 Dec 2008
Hedge Fund Manager Acquires Long-only Fund Arm from Credit Suisse
Hedge fund manager, Aberdeen Asset Management PLC, has entered into an agreement with Credit Suisse to acquire their £40 billion ($58 billion) long-only asset management arm, making Aberdeen the the UK’s largest listed fund manager.
Credit Suisse sold the fund arm for approximately 240 million shares in Aberdeen, valued at £250 million ($363 million). The closing of the deal is to take place on 30 June 2009, subject to shareholder and regulatory approval.
Aberdeen’s largest hedge fund shareholder, Martin Hughes, Chief Executive of Toscafund, said, “Toscafund has already confirmed its support for this transformational acquisition, which has been made possible by the excellent operating platform offered by Aberdeen. Toscafund believes that the transaction is of clear benefit to the clients and shareholders of Aberdeen Asset Management and Credit Suisse.”
The acquired business is a long-only traditional asset manager with a leading presence in Europe, Asia and Australasia. It offers a broad product range, diversified predominantly across fixed income, money market and equities, with a variety of investment styles that will be integrated into Aberdeen’s investment processes. Its products are sold primarily to third party clients, with a significant minority of assets sourced through Credit Suisse’s Private Banking division, one of the world’s largest wealth managers.
Aberdeen has agreed an extension of the existing distribution agreement with Credit Suisse, this will give Aberdeen greater access to the banking network of Credit Suisse.
With the new acquisition, Aberdeen has opportunity to achieve greater scale in certain markets where the Group already has a presence, such as the UK, Australia, Germany, Switzerland and Japan. The Acquisition will also strengthen Aberdeen’s offering in certain product areas
“The acquisition confirms Aberdeen’s position as a leading global asset manager and provides us with greater access to the distribution network of Credit Suisse and its Private Banking division, one of the world’s largest wealth managers." Martin Gilbert, Chief Executive of Aberdeen, said, “This transaction fits perfectly within our strategy, a key part of which has been to make earnings enhancing acquisitions which give the business critical mass in our core competencies, complementing our organic growth."
“Given our proven track record of integrating businesses, we are well placed to ensure a smooth transition of the Credit Suisse assets to Aberdeen. We look forward to welcoming our new colleagues and clients, and also to welcoming Credit Suisse as a significant shareholder in Aberdeen. We believe that this transaction will be for the long-term benefit of all our shareholders.”
Credit Suisse sold the fund arm for approximately 240 million shares in Aberdeen, valued at £250 million ($363 million). The closing of the deal is to take place on 30 June 2009, subject to shareholder and regulatory approval.
Aberdeen’s largest hedge fund shareholder, Martin Hughes, Chief Executive of Toscafund, said, “Toscafund has already confirmed its support for this transformational acquisition, which has been made possible by the excellent operating platform offered by Aberdeen. Toscafund believes that the transaction is of clear benefit to the clients and shareholders of Aberdeen Asset Management and Credit Suisse.”
The acquired business is a long-only traditional asset manager with a leading presence in Europe, Asia and Australasia. It offers a broad product range, diversified predominantly across fixed income, money market and equities, with a variety of investment styles that will be integrated into Aberdeen’s investment processes. Its products are sold primarily to third party clients, with a significant minority of assets sourced through Credit Suisse’s Private Banking division, one of the world’s largest wealth managers.
Aberdeen has agreed an extension of the existing distribution agreement with Credit Suisse, this will give Aberdeen greater access to the banking network of Credit Suisse.
With the new acquisition, Aberdeen has opportunity to achieve greater scale in certain markets where the Group already has a presence, such as the UK, Australia, Germany, Switzerland and Japan. The Acquisition will also strengthen Aberdeen’s offering in certain product areas
“The acquisition confirms Aberdeen’s position as a leading global asset manager and provides us with greater access to the distribution network of Credit Suisse and its Private Banking division, one of the world’s largest wealth managers." Martin Gilbert, Chief Executive of Aberdeen, said, “This transaction fits perfectly within our strategy, a key part of which has been to make earnings enhancing acquisitions which give the business critical mass in our core competencies, complementing our organic growth."
“Given our proven track record of integrating businesses, we are well placed to ensure a smooth transition of the Credit Suisse assets to Aberdeen. We look forward to welcoming our new colleagues and clients, and also to welcoming Credit Suisse as a significant shareholder in Aberdeen. We believe that this transaction will be for the long-term benefit of all our shareholders.”
Silk Invest / Danfonds Team to Launch 2 new Hedge Funds
Specialist asset management firm, Silk Invest Ltd, has acquired Danfonds Frontier Fund SPC., a Cayman based hedge fund, in an all equity deal, Silk Invest also bought majority share in Danfonds Frontier Fund SPC, which will be renamed Silk Invest Frontier Fund SPC, Danfonds Investment Management (Cayman) Limited will be renamed Silk Invest (Cayman) Limited.
The new team will launch two Luxembourg UCITS funds, African Lions and Arab Falcons, in the first quarter of 2009. The Silk Invest Frontier Fund SPC will be relaunched in the second quarter of 2009 after finalizing the new offering memorandum and the various counterparty agreements.
Zin Bekkali, CEO of Silk Invest, comments that “the deal is a uniquely structured combination of talents that complements our new African and Middle Eastern fund platform.” Following the transaction, Daniel Broby, CEO of Danfonds, will become the Chief Investment Officer of Silk Invest.
Daniel Broby says that the deal “is perfectly timed from an investor perspective. There is now immense opportunity in frontier markets as a resultof the dramatic declines caused by the credit crisis; to which these economies are partially immune.”
Dr Heinz Hockmann, the Chairman of Silk Invest, notes that “The synergies between the Silk African Lions Fund, the Silk Arab Falcons Fund and the Danfonds Frontier Fund were immediately obvious. Our aim was always to become the most credible frontier markets specialist. With this deal we can demonstrate to our investors, more than ever, that we have an unrivalled frontier markets team, managing a unique investment offering across different asset classes.”
The new team will launch two Luxembourg UCITS funds, African Lions and Arab Falcons, in the first quarter of 2009. The Silk Invest Frontier Fund SPC will be relaunched in the second quarter of 2009 after finalizing the new offering memorandum and the various counterparty agreements.
Zin Bekkali, CEO of Silk Invest, comments that “the deal is a uniquely structured combination of talents that complements our new African and Middle Eastern fund platform.” Following the transaction, Daniel Broby, CEO of Danfonds, will become the Chief Investment Officer of Silk Invest.
Daniel Broby says that the deal “is perfectly timed from an investor perspective. There is now immense opportunity in frontier markets as a resultof the dramatic declines caused by the credit crisis; to which these economies are partially immune.”
Dr Heinz Hockmann, the Chairman of Silk Invest, notes that “The synergies between the Silk African Lions Fund, the Silk Arab Falcons Fund and the Danfonds Frontier Fund were immediately obvious. Our aim was always to become the most credible frontier markets specialist. With this deal we can demonstrate to our investors, more than ever, that we have an unrivalled frontier markets team, managing a unique investment offering across different asset classes.”
27 Dec 2008
Morrison & Foerster Hire NY Hedge Fund Lawyer Among Others
Morrison & Foerster LLP announced the election of ten new lawyers into their partnership, including specialists in venture capital, hedge funds, bio-technology, patents, corporate transactions and chapter 11 bankruptcy, among others. Their election is effective January 1, 2009.
“We have elected an exceptional group of lawyers to the partnership. This year’s newly elected partners reflect continued investment in our distinguishing practice strengths and our international reach,” said Keith Wetmore, Chairman of Morrison & Foerster. “Our new partners have demonstrated a commitment to client service and legal excellence. We are confident that they will make tremendous contributions to our clients’ success and our Firm’s progress in the years ahead.”
Elected as Partner Thomas M. Devaney, a member of the Business Department, will be resident in the New York office. Devaney specializes in private equity fund formation and investment, representing a variety of domestic and international private equity funds, including real estate funds, venture capital funds, and debt funds, in addition to hedge funds with a broad range of investment strategies.
The other lawyers elected as Partners are; Anders T. Aannestad, Jonathan Bockman, Christopher B. Eide, James M. Halstead, Rebekah Kaufman, David E. Melaugh, James J. Mullen III, Ph.D., Norman S. Rosenbaum, and Ivan G. Smallwood, a resident in the Tokyo office.
“We have elected an exceptional group of lawyers to the partnership. This year’s newly elected partners reflect continued investment in our distinguishing practice strengths and our international reach,” said Keith Wetmore, Chairman of Morrison & Foerster. “Our new partners have demonstrated a commitment to client service and legal excellence. We are confident that they will make tremendous contributions to our clients’ success and our Firm’s progress in the years ahead.”
Elected as Partner Thomas M. Devaney, a member of the Business Department, will be resident in the New York office. Devaney specializes in private equity fund formation and investment, representing a variety of domestic and international private equity funds, including real estate funds, venture capital funds, and debt funds, in addition to hedge funds with a broad range of investment strategies.
The other lawyers elected as Partners are; Anders T. Aannestad, Jonathan Bockman, Christopher B. Eide, James M. Halstead, Rebekah Kaufman, David E. Melaugh, James J. Mullen III, Ph.D., Norman S. Rosenbaum, and Ivan G. Smallwood, a resident in the Tokyo office.
24 Dec 2008
Blackstone Makes Single Manager Hedge Fund Changes to Ensure Profitability
The Blackstone Group is making changes to the single manager hedge funds businesses within its Marketable Alternative Asset Management (MAAM) segment.
Blackstone is consolidating its distressed securities fund onto a single operating platform and moving Blackstone Kailix Advisors, the investment manager of Blackstone’s long/short equities fund, which will be spun off to its management team led by Manish Mittal, who intends to form a new fund as an independent entity.
Commenting on the changes, Tony James, President and Chief Operating Officer of Blackstone, said, “We believe these measures will enable us to operate more profitably in the current environment. Although these funds have performed better than the S&P 500 and other global market averages, we expect that adverse fundraising conditions in the hedge fund industry will prevent these two initiatives from scaling up to a size where they are meaningful for our business on a stand alone basis.”
Blackstone will be an investor in the new fund and investors in the existing fund will be offered the option of investing in the new fund on a preferred basis as their interests in the existing fund are liquidated. Although the existing fund has outperformed global equities measures, its size does not make it a core strategic business for Blackstone and it is not anticipated that this will change in the near term. The fund has not imposed any gates or liquidity restrictions on investors.
“We continue to have a significant commitment to the hedge fund business," James continued, "The current market turmoil with its associated dislocation of asset prices presents us with a multitude of compelling opportunities to invest capital. It is during times like these that we need to be especially disciplined to focus both our people and our capital on the largest opportunities.”
Blackstone is consolidating its distressed securities fund onto a single operating platform and moving Blackstone Kailix Advisors, the investment manager of Blackstone’s long/short equities fund, which will be spun off to its management team led by Manish Mittal, who intends to form a new fund as an independent entity.
Commenting on the changes, Tony James, President and Chief Operating Officer of Blackstone, said, “We believe these measures will enable us to operate more profitably in the current environment. Although these funds have performed better than the S&P 500 and other global market averages, we expect that adverse fundraising conditions in the hedge fund industry will prevent these two initiatives from scaling up to a size where they are meaningful for our business on a stand alone basis.”
Blackstone will be an investor in the new fund and investors in the existing fund will be offered the option of investing in the new fund on a preferred basis as their interests in the existing fund are liquidated. Although the existing fund has outperformed global equities measures, its size does not make it a core strategic business for Blackstone and it is not anticipated that this will change in the near term. The fund has not imposed any gates or liquidity restrictions on investors.
“We continue to have a significant commitment to the hedge fund business," James continued, "The current market turmoil with its associated dislocation of asset prices presents us with a multitude of compelling opportunities to invest capital. It is during times like these that we need to be especially disciplined to focus both our people and our capital on the largest opportunities.”
23 Dec 2008
Hedge Funds Take Bullish Position On Gold
In the last week, leading up to today, (Tuesday) hedge funds and other "large speculators" took their largest bullish position (when compared with the number of bearish bets) since early August.
Commercial traders such as refineries, mints, wholesalers and bullion banks, took their smallest bull position in 19 weeks, as they sold the "long" contracts bought by speculative players.
This has returned the balance of bull/bear positions in December to what has been considered the norm for the last four years, with over 85% of speculative position betting on a rise.
Last week also saw the outstanding number of open contracts in Gold Futures and options rise more than 9%, but it remained one-third below the record set in Jan. 2008.
"If gold can close the year above its January 2008 open, it will be one of the few positive asset stories of the year," notes new analysis from Mitsui, the precious metals dealer in London, "from a wealth preservation perspective at least."
"With the Bernanke printing press set to move into overdrive next year," Mitsui said regarding the future of Gold in 2009, "along with the not so pretty reality of negative real interest rates, it is difficult to put together a positive thesis for the US Dollar," Mitsui said, "In such a climate, gold could flourish."
Commercial traders such as refineries, mints, wholesalers and bullion banks, took their smallest bull position in 19 weeks, as they sold the "long" contracts bought by speculative players.
This has returned the balance of bull/bear positions in December to what has been considered the norm for the last four years, with over 85% of speculative position betting on a rise.
Last week also saw the outstanding number of open contracts in Gold Futures and options rise more than 9%, but it remained one-third below the record set in Jan. 2008.
"If gold can close the year above its January 2008 open, it will be one of the few positive asset stories of the year," notes new analysis from Mitsui, the precious metals dealer in London, "from a wealth preservation perspective at least."
"With the Bernanke printing press set to move into overdrive next year," Mitsui said regarding the future of Gold in 2009, "along with the not so pretty reality of negative real interest rates, it is difficult to put together a positive thesis for the US Dollar," Mitsui said, "In such a climate, gold could flourish."
19 Dec 2008
NAZRA Hedge Fund Return Index Surges
The Ernst and Young New Zealand Absolute Return index surged to a new high in November 2008, gaining +1.502% for the month, putting year-to-date performance at +17.597%, and year-on-year performance at +21.104%.
As with October, it was the trend-following, tail risk, volatility and commodity managers that saw positive returns, whilst global equities were weaker in line with global equity indices.
New Zealand Absolute Return Association (NZARA) Chairman Anthony Limbrick, who is also Chief Investment Officer of hedge fund Pure Capital (a contributing manager), said “we are close to completing our first calendar year of record-keeping for the index and it is heartening to see such a strong ensemble performance from the constituent managers”.
The Ernst and Young New Zealand Absolute Return Index is based on a concept of simple averages i.e. each of the eight constituent managers presents an “NZARA Average”, an average of the performance of all their funds or programs that are available for new money. In some cases a manager is presenting an average of several products. This collection of averages is then compiled again as a simple average to create the index. Ernst and Young compiles the index but is not a verification agent and does not guarantee the veracity of the performance numbers presented by the individual managers.
The index documentation was compiled by law firm Minter Ellison Rudd Watts.
As with October, it was the trend-following, tail risk, volatility and commodity managers that saw positive returns, whilst global equities were weaker in line with global equity indices.
New Zealand Absolute Return Association (NZARA) Chairman Anthony Limbrick, who is also Chief Investment Officer of hedge fund Pure Capital (a contributing manager), said “we are close to completing our first calendar year of record-keeping for the index and it is heartening to see such a strong ensemble performance from the constituent managers”.
The Ernst and Young New Zealand Absolute Return Index is based on a concept of simple averages i.e. each of the eight constituent managers presents an “NZARA Average”, an average of the performance of all their funds or programs that are available for new money. In some cases a manager is presenting an average of several products. This collection of averages is then compiled again as a simple average to create the index. Ernst and Young compiles the index but is not a verification agent and does not guarantee the veracity of the performance numbers presented by the individual managers.
The index documentation was compiled by law firm Minter Ellison Rudd Watts.
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