Hedge fund performance specialist Alternative-Index Ltd., fully owned by hedge fund manager, Salus Alpha Group AG, reported that the Relative Value Index (RVX) is the top performing Alternative Investment Indices (AI-Index) in June 2009 with a month-to-date performance of +0.52% listed on the Vienna Stock Exchange.
The RVX outperformed the German equity index for the month to date by +1.49%.
The Relative Value Index is an investable benchmark of the performance of the Alternative Investment Sub-Strategies Fixed Income Arbitrage, Long/Short Credit and Convertible Bond Arbitrage.
The Alternative Investment Indices target to offer investors an unbiased reference of the performance of alternative asset classes. Daily index prices are calculated by the Vienna Stock Exchange, and are also available via Reuters, Bloomberg and other data terminals.
Salus Alpha Group AG is a Swiss Alternative Investment expert and manages capital for institutional clients and High Net Worth Individuals since 2002. The Group was the first Asset Manager worldwide to introduce a synthetic fund of hedge funds as a UCITS fund in 2003.
1 Jul 2009
Brummer & Partners Asia Hedge Fund Launch
Swedish hedge fund manager, Brummer & Partners, is expanding its offering of hedge funds by launching Karakoram, a new long-short Asia fund today.
The Fund will take both long and short positions in liquid equities on Asian markets such as Hong Kong, China, India, South Korea, Taiwan and Singapore. The Fund will base its positions on fundamental equity research, complemented with transaction-focused macroeconomic-analysis.
The new Fund’s aim is to consistently deliver a positive return for its unitholders, regardless of stock market performance in general, with a better risk-adjusted return than that of traditional equity portfolios.
Domiciled in Singapore, Ee Toh Chia is the Managing Director and a Partner of the Fund management company and is responsible for the management team. Ee Toh has 15 years of experience from Asian capital markets and has been involved in the management of the Zenit Fund’s Asian holdings since January 2008.
Karakoram has approximately SEK 300 million ($39 milllion) in assets under management. As Karakoram is a Bermuda-based fund a minimum investment of one million kronor ($131,000) is required. Brummer Multi-Strategy will initially invest a small proportion of its fund capital in the Karakoram Fund.
The Fund will take both long and short positions in liquid equities on Asian markets such as Hong Kong, China, India, South Korea, Taiwan and Singapore. The Fund will base its positions on fundamental equity research, complemented with transaction-focused macroeconomic-analysis.
The new Fund’s aim is to consistently deliver a positive return for its unitholders, regardless of stock market performance in general, with a better risk-adjusted return than that of traditional equity portfolios.
Domiciled in Singapore, Ee Toh Chia is the Managing Director and a Partner of the Fund management company and is responsible for the management team. Ee Toh has 15 years of experience from Asian capital markets and has been involved in the management of the Zenit Fund’s Asian holdings since January 2008.
Karakoram has approximately SEK 300 million ($39 milllion) in assets under management. As Karakoram is a Bermuda-based fund a minimum investment of one million kronor ($131,000) is required. Brummer Multi-Strategy will initially invest a small proportion of its fund capital in the Karakoram Fund.
Hedge Fund Survey On Obama Regulations
A survey by RSM McGladrey, a financial services consultancy, found that hedge fund managers are surprisingly ready to work with SEC regulators to cooperate with authority, despite wide-spread wariness about over-excessive regulation from the Obama administration.
However, the Obama financial regulatory plan was a top concern with 75%, fearing that further regulation will go too far and stifle the market’s recovery.
The survey polled more than 100 hedge fund managers during the last month and focused on hedge fund industry sentiment toward the Obama administration regulation.
Nearly half of the respondents (42%) thought that the SEC should be given more regulatory authority than it currently has. Slightly less (37%) felt that the hedge fund industry should be subject to more direct regulatory authority.
Fund managers are also optimistic about the industry’s prospects, according to the survey. 60% believe the current environment provides more investment opportunities than challenges. An overwhelming majority (69%) see the U.S. economy returning to positive growth by Q2 2010.
Hedge fund managers' opinion on the Public Private Investment Program (PPIP), showed nearly 80% of fund managers believe there can be a successful market for toxic assets, such as underwater mortgage backed securities. However, only 33% of the funds speculated that they would be at all interested in purchasing these securities in the future, raising some concerns about the level of private investor participation.
The full report is available for download on the RSM McGladrey Web site.
However, the Obama financial regulatory plan was a top concern with 75%, fearing that further regulation will go too far and stifle the market’s recovery.
The survey polled more than 100 hedge fund managers during the last month and focused on hedge fund industry sentiment toward the Obama administration regulation.
Nearly half of the respondents (42%) thought that the SEC should be given more regulatory authority than it currently has. Slightly less (37%) felt that the hedge fund industry should be subject to more direct regulatory authority.
Fund managers are also optimistic about the industry’s prospects, according to the survey. 60% believe the current environment provides more investment opportunities than challenges. An overwhelming majority (69%) see the U.S. economy returning to positive growth by Q2 2010.
Hedge fund managers' opinion on the Public Private Investment Program (PPIP), showed nearly 80% of fund managers believe there can be a successful market for toxic assets, such as underwater mortgage backed securities. However, only 33% of the funds speculated that they would be at all interested in purchasing these securities in the future, raising some concerns about the level of private investor participation.
The full report is available for download on the RSM McGladrey Web site.
UCITS Fund Launch By FX Concepts
New York-based currency manager FX Concepts is launching a new Luxembourg-domiciled fund investing in its flagship Global Currency Program (GCP). The fund has been set up in conjunction with Deutsche Bank.
“Investor interest in active currency strategies has been very strong this year, and we’re delighted to make our Global Currency Program available to investors in UCITS format” said John R. Taylor, Chairman and CEO of FX Concepts. The new fund offers daily liquidity and has a €25,000 minimum ($35,000). Investments are fully collateralized and ring-fenced in accordance with the UCITS III directive. The fund will offer share classes in Euro, US Dollars, Sterling and Yen.
“In the current financial climate, investors are looking for strategies which offer maximum liquidity and transparency”, says Daniel Szor, Managing Director and head of FX Concepts’ London office. “FX fits these criteria very well, and now clients can participate through a fund which offers daily liquidity and minimized counterparty risk”.
The Global Currency Program invests in a diversified portfolio of 20-25 currency positions chosen from a universe of over 30 currencies. The program targets annualized returns of 10-15% with low volatility and has a track record of over eight years.
“Investor interest in active currency strategies has been very strong this year, and we’re delighted to make our Global Currency Program available to investors in UCITS format” said John R. Taylor, Chairman and CEO of FX Concepts. The new fund offers daily liquidity and has a €25,000 minimum ($35,000). Investments are fully collateralized and ring-fenced in accordance with the UCITS III directive. The fund will offer share classes in Euro, US Dollars, Sterling and Yen.
“In the current financial climate, investors are looking for strategies which offer maximum liquidity and transparency”, says Daniel Szor, Managing Director and head of FX Concepts’ London office. “FX fits these criteria very well, and now clients can participate through a fund which offers daily liquidity and minimized counterparty risk”.
The Global Currency Program invests in a diversified portfolio of 20-25 currency positions chosen from a universe of over 30 currencies. The program targets annualized returns of 10-15% with low volatility and has a track record of over eight years.
30 Jun 2009
UPDATE Bahamas/UK Hedge Funds Settle With SEC on Late Trading Scheme
Najy N. Nasser, Chief Investment Officer of the Bahamas/UK based hedge funds, Headstart Advisers Limited (HAL) and Headstart Fund, has agreed with the SEC to pay $17.8 million in a settlement regarding a 2003 alleged late trading scheme.
Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser , the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart’s historic market-timing strategy.
The Commission's Complaint alleged that the Bahamas hedge fund, Headstart, acting through its United Kingdom investment adviser, HAL, engaged in fraudulent late trading and deceptive market timing of U.S. mutual funds through accounts at U.S. broker-dealers. Headstart has since September 2003 focused its business on other successful strategies.
Nasser said in response to the settlement, “Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
"We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business,” he concluded.
Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser , the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart’s historic market-timing strategy.
The Commission's Complaint alleged that the Bahamas hedge fund, Headstart, acting through its United Kingdom investment adviser, HAL, engaged in fraudulent late trading and deceptive market timing of U.S. mutual funds through accounts at U.S. broker-dealers. Headstart has since September 2003 focused its business on other successful strategies.
Nasser said in response to the settlement, “Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart’s business in September 2003. We have since worked hard to build up Headstart’s funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved.
"We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart’s investment business,” he concluded.
Hedge Funds Accepted To London Stock Exchange's Specialist Fund Market
European hedge fund manager, NB Private Equity Partners (NBPE), and a new fund launched by Altus, 'Altus Resource Capital,' have been accepted by The London Stock Exchange into the The Specialist Fund Market (SFM).
As an EU Regulated Market, SFM is designed to offer access for specialist investment vehicles targeting institutional, professional and highly knowledgeable investors. It's admission standards offer sufficient flexibility for single strategy hedge funds, private equity funds and other alternative strategies and structures. The market is open to both UK and international issuers.
"We are delighted to welcome two new funds to the Specialist Fund Market today. Altus Resource Capital demonstrates that despite the wider economic climate, London's investors continue to be responsive to new investment opportunities, (Altus recently raised GBP26 million ($43 million) for the launch)." Tracey Pierce, Head of Equity Primary Markets at London Stock Exchange Group, said, "NB Private Equity Partners' decision to join highlights some of the London markets' other key strengths: the enhanced liquidity and increased investor profile that they offer to issuers on an ongoing basis."
"We are very pleased to launch Altus Resource Capital (ARC) on the Specialist Fund Market today." Marc Gordon, partner at Nimrod Capital LLP, placing agents for Altus Resource Capital, commented, "This is our second successful fundraising within 12 months on the London market. The Specialist Fund Market has provided the flexibility to bring the new fund to the attention of leading asset managers and to attract interest even in these difficult times."
Since the start of 2008, a number of specialist funds have taken advantage of new opportunities to access London-based investors through the London Stock Exchange's Main Market and Specialist Fund Market, including: Boussard and Gauvaudan Holdings, BH Global, Castle Alternative Invest, FRM Diversified Alpha, Marwyn Value, and MW Tops. They benefit from the deepest liquidity available to publicly quoted alternative investment vehicles.
As an EU Regulated Market, SFM is designed to offer access for specialist investment vehicles targeting institutional, professional and highly knowledgeable investors. It's admission standards offer sufficient flexibility for single strategy hedge funds, private equity funds and other alternative strategies and structures. The market is open to both UK and international issuers.
"We are delighted to welcome two new funds to the Specialist Fund Market today. Altus Resource Capital demonstrates that despite the wider economic climate, London's investors continue to be responsive to new investment opportunities, (Altus recently raised GBP26 million ($43 million) for the launch)." Tracey Pierce, Head of Equity Primary Markets at London Stock Exchange Group, said, "NB Private Equity Partners' decision to join highlights some of the London markets' other key strengths: the enhanced liquidity and increased investor profile that they offer to issuers on an ongoing basis."
"We are very pleased to launch Altus Resource Capital (ARC) on the Specialist Fund Market today." Marc Gordon, partner at Nimrod Capital LLP, placing agents for Altus Resource Capital, commented, "This is our second successful fundraising within 12 months on the London market. The Specialist Fund Market has provided the flexibility to bring the new fund to the attention of leading asset managers and to attract interest even in these difficult times."
Since the start of 2008, a number of specialist funds have taken advantage of new opportunities to access London-based investors through the London Stock Exchange's Main Market and Specialist Fund Market, including: Boussard and Gauvaudan Holdings, BH Global, Castle Alternative Invest, FRM Diversified Alpha, Marwyn Value, and MW Tops. They benefit from the deepest liquidity available to publicly quoted alternative investment vehicles.
29 Jun 2009
Hedge Fund Veteran Selected for Fund of Funds Investment Committee
Roy H. Callahan has been selected as portfolio manager and member of the investment committee at alternative investment firm, Coast Asset Management, LLC
firm's , effective June 15.
"We are thrilled that Roy Callahan has agreed to rejoin our team," said David Smith, president of Coast. "Roy brings a wealth of knowledge and alternative investments expertise that will be invaluable as we continue to steer Coast through the challenges brought on by the global recession."
Callahan joins Coast from Stratos Advisers, a southern California-based hedge fund of funds manager. Previously, Callahan worked at Financial Risk Management (FRM) where his responsibilities included serving on the investment and portfolio management committees as well as training and mentoring FRM investment analyst groups. He spent six years from 1994-2000 at Santa Monica, CA-based Coast as director of research where he helped Coast founder David Smith develop and launch the firm's initial multi-manager investment strategies.
firm's , effective June 15.
"We are thrilled that Roy Callahan has agreed to rejoin our team," said David Smith, president of Coast. "Roy brings a wealth of knowledge and alternative investments expertise that will be invaluable as we continue to steer Coast through the challenges brought on by the global recession."
Callahan joins Coast from Stratos Advisers, a southern California-based hedge fund of funds manager. Previously, Callahan worked at Financial Risk Management (FRM) where his responsibilities included serving on the investment and portfolio management committees as well as training and mentoring FRM investment analyst groups. He spent six years from 1994-2000 at Santa Monica, CA-based Coast as director of research where he helped Coast founder David Smith develop and launch the firm's initial multi-manager investment strategies.
Hedge Fund Magazine Launch in September
Euromoney Institutional Investor is planning to launch a new magazine and online offering covering US and international hedge funds in September.
The company's hedge fund publishing assets include Institutional Investor's Alpha magazine and Absolute Return magazine, which is published by HedgeFund Intelligence, the world's leading information source on hedge funds. The new publication will be titled "AR".
"The new publication will include everything that Alpha and Absolute Return contained, but it will be a new magazine which will contain a lot of editorial that neither magazine does, including new surveys, rankings and high-powered web functionality," says Euromoney Institutional Investor chairman and Editor-in-chief Padraic Fallon.
"With the hedge fund sector under intense scrutiny from Washington, regulators and investors, this is an excellent time to launch a hedge fund publication," he says. "Building on the strengths of both Institutional Investor and HedgeFund Intelligence, we have the opportunity to produce the world's leading hedge fund title which will keep investors, managers, regulators and the whole hedge fund community informed on developments in the sector."
"Hedge fund performance has recovered strongly in 2009, after the sector's worst ever performance in 2008, and there are now significant opportunities," says Michelle Celarier, editor of Absolute Return. "The new magazine is an exciting development because it joins two prestigious monthly magazines that cover hedge funds to create a single authoritative voice. Our mission is to create the most insightful, entertaining and definitive content about the hedge fund industry, in both the printed magazine and online. We will offer readers information they cannot find elsewhere, including news and performance data on thousands of funds, along with in-depth analysis, research and profiles of the biggest hedge funds."
Advertising will be sold by Christine Cavolina, publisher of Institutional Investor, and the Institutional Investor sales team, led by Joy Desanto.
"AR will provide an unparalleled editorial environment for advertisers interested in the hedge fund industry," says Cavolina. "It presents the ideal opportunity for companies serving this audience to influence decision-makers and generate new business."
The company's hedge fund publishing assets include Institutional Investor's Alpha magazine and Absolute Return magazine, which is published by HedgeFund Intelligence, the world's leading information source on hedge funds. The new publication will be titled "AR".
"The new publication will include everything that Alpha and Absolute Return contained, but it will be a new magazine which will contain a lot of editorial that neither magazine does, including new surveys, rankings and high-powered web functionality," says Euromoney Institutional Investor chairman and Editor-in-chief Padraic Fallon.
"With the hedge fund sector under intense scrutiny from Washington, regulators and investors, this is an excellent time to launch a hedge fund publication," he says. "Building on the strengths of both Institutional Investor and HedgeFund Intelligence, we have the opportunity to produce the world's leading hedge fund title which will keep investors, managers, regulators and the whole hedge fund community informed on developments in the sector."
"Hedge fund performance has recovered strongly in 2009, after the sector's worst ever performance in 2008, and there are now significant opportunities," says Michelle Celarier, editor of Absolute Return. "The new magazine is an exciting development because it joins two prestigious monthly magazines that cover hedge funds to create a single authoritative voice. Our mission is to create the most insightful, entertaining and definitive content about the hedge fund industry, in both the printed magazine and online. We will offer readers information they cannot find elsewhere, including news and performance data on thousands of funds, along with in-depth analysis, research and profiles of the biggest hedge funds."
Advertising will be sold by Christine Cavolina, publisher of Institutional Investor, and the Institutional Investor sales team, led by Joy Desanto.
"AR will provide an unparalleled editorial environment for advertisers interested in the hedge fund industry," says Cavolina. "It presents the ideal opportunity for companies serving this audience to influence decision-makers and generate new business."
26 Jun 2009
BTIG Expands International Capabilities With Japan Equity Team
Institutional brokerage and hedge fund services company BTIG LLC, announced the further expansion of its international capabilities with the addition of a three-person U.S. based live hours (8pm-2am EST) Japan team.
The U.S. based Japan team will initially consist of William Chandruang, Jeff Gallo, and David Schneider, all hired at the managing director level. Schneider will be based in Greenwich, and Gallo and Chandruang will be in Los Angeles. All three have covered the Japanese markets for the majority of their careers, and have worked in Japan, which gives them an edge in understanding the nuances of Japan’s equity market.
“William, Jeff and David bring a wealth of experience, long standing and deep rooted institutional relationships, and an in-depth knowledge of the Asian equity markets,” Steven Starker, Co-Founder of BTIG, said. “Providing our clients with seamless execution across the globe and around the clock has become increasingly important in today’s rapidly changing environment.”
Chandruang spent the last 15 years working in Japan most recently at UBS where he was a managing director and both co-head of client trading & execution and head of international sales trading. Before moving to Japan, Chandruang worked at Smith Barney in New York for 4 years.
Gallo joined BTIG after living and working in Tokyo for a total of 15 years. He most recently worked at Nikko Citigroup where he was a Managing Director and Co-Head of Japanese Sales Trading. Prior to that, he worked as a sales trader with Morgan Stanley Japan.
Schneider was previously with Merrill Lynch in Japan where he was in charge of the entire execution services platform, including trading, sales trading, program trading and electronic trading. Prior to that, he worked for Jardine Fleming in Hong Kong, Singapore and Manila.
The U.S. based Japan team will initially consist of William Chandruang, Jeff Gallo, and David Schneider, all hired at the managing director level. Schneider will be based in Greenwich, and Gallo and Chandruang will be in Los Angeles. All three have covered the Japanese markets for the majority of their careers, and have worked in Japan, which gives them an edge in understanding the nuances of Japan’s equity market.
“William, Jeff and David bring a wealth of experience, long standing and deep rooted institutional relationships, and an in-depth knowledge of the Asian equity markets,” Steven Starker, Co-Founder of BTIG, said. “Providing our clients with seamless execution across the globe and around the clock has become increasingly important in today’s rapidly changing environment.”
Chandruang spent the last 15 years working in Japan most recently at UBS where he was a managing director and both co-head of client trading & execution and head of international sales trading. Before moving to Japan, Chandruang worked at Smith Barney in New York for 4 years.
Gallo joined BTIG after living and working in Tokyo for a total of 15 years. He most recently worked at Nikko Citigroup where he was a Managing Director and Co-Head of Japanese Sales Trading. Prior to that, he worked as a sales trader with Morgan Stanley Japan.
Schneider was previously with Merrill Lynch in Japan where he was in charge of the entire execution services platform, including trading, sales trading, program trading and electronic trading. Prior to that, he worked for Jardine Fleming in Hong Kong, Singapore and Manila.
24 Jun 2009
WBC Expands, Hires Hedge Fund Specialist
Stephen Markowitz, most recently the Senior Vice President, Equity Derivative Sales for global inter-dealer broker Tullett Prebon, has joined hedge fund provider, WallachBeth Capital LLC (WBC) as a Managing Director of the firm.
“Having known and worked with Stephen for the better part of twenty-five years, and as the options markets have evolved, his decision to now play a senior role within our firm is a real coup." Michael Wallach, WBC’s co-founder and CEO, said, "His breadth of product knowledge, broking talents, and his deep, trusted relationships with institutional portfolio managers and hedge funds that are active in the option and ETF space will prove to be a great complement to the audience that we serve, and the services that we provide.”
WBC specializes in exchange-listed options and ETF’s, operating on a fully-disclosed, agency-only basis while serving the needs of institutional managers, premiere hedge funds, sell-side trading desks, and sophisticated professionals trading in the wide-spectrum of exchange-listed equity options, listed and OTC equities, ETF’s, and non-US equities. Member FINRA, SIPC, CBSX, ISE, ARCA, and New York Amex options.
“Having known and worked with Stephen for the better part of twenty-five years, and as the options markets have evolved, his decision to now play a senior role within our firm is a real coup." Michael Wallach, WBC’s co-founder and CEO, said, "His breadth of product knowledge, broking talents, and his deep, trusted relationships with institutional portfolio managers and hedge funds that are active in the option and ETF space will prove to be a great complement to the audience that we serve, and the services that we provide.”
WBC specializes in exchange-listed options and ETF’s, operating on a fully-disclosed, agency-only basis while serving the needs of institutional managers, premiere hedge funds, sell-side trading desks, and sophisticated professionals trading in the wide-spectrum of exchange-listed equity options, listed and OTC equities, ETF’s, and non-US equities. Member FINRA, SIPC, CBSX, ISE, ARCA, and New York Amex options.
Cayman Islands and Ireland Sign Tax Information Exchange Agreement
The Cayman Islands Government signed a Tax Information Exchange Agreement (TIEA) with Ireland at a ceremony held at the British Embassy in Berlin.
Signing the agreement on behalf of the Cayman Islands was the Leader of Government
Business/Premier Designate and Minister for Financial Services, the Hon. McKeeva Bush, OBE, JP.
“The Cayman Islands is pleased to sign this agreement today with Ireland, marking another important step towards our ongoing commitment to international cooperation and OECD standards for transparency and exchange of information on tax matters. This signing will commemorate the beginning of what I am sure will be a highly productive and mutually rewarding relationship between the Cayman Islands and Ireland,” Bush said.
He added, “Our newly formed ‘Negotiation Team’ has worked tirelessly to secure technical agreements quickly. Our signing last week of a Double Taxation Agreement with the UK together with today’s signing is a direct result of their commitment and hard work. We look forward to continuing these efforts and I am confident that we will be on the OECD’s white list very soon.”
The Cayman Islands delegation, which was led by Mr. Bush also included the Minister of District Administration, Works, and Gender Affairs the Hon. Julianna O’ Connor-Conolly, JP; Chief Secretary the Hon. George McCarthy, OBE, JP; Financial Secretary the Hon. Kenneth Jefferson, JP; Chief Officer for Ministry of Financial Services Carson Ebanks, OBE, JP; Senior Assistant Secretary Michelle Bahadur; Senior Political Assistant Richard Parchment; Cayman Islands Monetary Authority General Counsel/Deputy Managing Director Langston Sibblies and Paul Byles.
Signing on behalf of the Irish Government, Martin Mansergh, TD, Minister of State at the Irish Department of Finance said, “We are very pleased to be here to sign this TIEA with the Cayman Islands. This is concrete evidence of the significant progress that has been made in recent months. Ireland welcomes the commitment of the Cayman Islands to implement the OECD standards of transparency and exchange of information in tax matters and their willingness to enter into tax information exchange agreements. The signing of this agreement represents a new chapter in relations between Ireland and the Cayman Islands.”
The Cayman Islands now maintains ten bilateral tax information agreements with the following countries: United States, United Kingdom, Denmark, Faroe Islands, Finland, Greenland, Iceland, Ireland, Norway and Sweden.
Signing the agreement on behalf of the Cayman Islands was the Leader of Government
Business/Premier Designate and Minister for Financial Services, the Hon. McKeeva Bush, OBE, JP.
“The Cayman Islands is pleased to sign this agreement today with Ireland, marking another important step towards our ongoing commitment to international cooperation and OECD standards for transparency and exchange of information on tax matters. This signing will commemorate the beginning of what I am sure will be a highly productive and mutually rewarding relationship between the Cayman Islands and Ireland,” Bush said.
He added, “Our newly formed ‘Negotiation Team’ has worked tirelessly to secure technical agreements quickly. Our signing last week of a Double Taxation Agreement with the UK together with today’s signing is a direct result of their commitment and hard work. We look forward to continuing these efforts and I am confident that we will be on the OECD’s white list very soon.”
The Cayman Islands delegation, which was led by Mr. Bush also included the Minister of District Administration, Works, and Gender Affairs the Hon. Julianna O’ Connor-Conolly, JP; Chief Secretary the Hon. George McCarthy, OBE, JP; Financial Secretary the Hon. Kenneth Jefferson, JP; Chief Officer for Ministry of Financial Services Carson Ebanks, OBE, JP; Senior Assistant Secretary Michelle Bahadur; Senior Political Assistant Richard Parchment; Cayman Islands Monetary Authority General Counsel/Deputy Managing Director Langston Sibblies and Paul Byles.
Signing on behalf of the Irish Government, Martin Mansergh, TD, Minister of State at the Irish Department of Finance said, “We are very pleased to be here to sign this TIEA with the Cayman Islands. This is concrete evidence of the significant progress that has been made in recent months. Ireland welcomes the commitment of the Cayman Islands to implement the OECD standards of transparency and exchange of information in tax matters and their willingness to enter into tax information exchange agreements. The signing of this agreement represents a new chapter in relations between Ireland and the Cayman Islands.”
The Cayman Islands now maintains ten bilateral tax information agreements with the following countries: United States, United Kingdom, Denmark, Faroe Islands, Finland, Greenland, Iceland, Ireland, Norway and Sweden.
Bull Path Converts Hedge Fund Into Long Short Mutal Fund
Bull Path Capital Management recently announced the conversion of one of its long-short hedge funds into a long-short equity mutual fund the 'Bull Path Long Short Fund' (BPFCX).
The newly launched mutual fund ranks #1 of 811 funds on total annualized returns in the Lipper Mid-Cap Universe for the 5 years ending March 31, 2009, may be a “perfect consideration as a core investment for many investors.” He believes the long-short category will increasingly capture investors’ attention because of its typically lower risk levels than long-only funds. BPFCX has also received a top Lipper Leader rating of 5 for capital preservation against all equity mutual funds (9,360 funds).
“Investors have been traumatized by the events of the past 18 months, including the sobering performance of many long-only, ‘buy and hold’ strategies, and wondering how and when they can reenter the market,” said Rob Kaimowitz, portfolio manager of the Fund and founder of Bull Path Capital Management. “We believe investors will be attracted to the performance characteristics of long-short funds which aim to capture the market’s upside while mitigating risk in a market sell-off.”
“Until recently, there have been few mutual funds focused on long-short, and we are one of the few tested strategies in the market today,” noted Kaimowitz. “We believe this strategy makes sense for both individual and institutional investors with a medium- to long-term view of the market.”
In addition, Kaimowitz says investors who may have previously considered long-short hedge funds should consider investing in this strategy through a mutual fund structure owing to such benefits as lower minimum investments, lower fees, full transparency and the assets being held in a trust bank.
“There has been increasing pressure on hedge funds to provide lower fees, greater liquidity and increased portfolio transparency,” noted Kaimowitz. “A mutual fund structure addresses these issues quite well.”
The Bull Path Long Short Fund adopts a strategy developed and run by Bull Path Capital Management since 2002. “One of the hallmarks of our strategy is our ability to reinvest our knowledge through our rigorous, concentrated fundamental analysis in establishing both long and short positions,” said Kaimowitz. “This ability serves us well as we seek to provide investors with consistent returns and high levels of alpha.”
The Bull Path Long Short Fund is available in A and C Class shares with a $1,000 minimum investment or a $500 minimum with participation in the automatic investment plan. The I share requires a minimum of $100,000 or a $50,000 minimum with participation in the automatic investment plan.
The newly launched mutual fund ranks #1 of 811 funds on total annualized returns in the Lipper Mid-Cap Universe for the 5 years ending March 31, 2009, may be a “perfect consideration as a core investment for many investors.” He believes the long-short category will increasingly capture investors’ attention because of its typically lower risk levels than long-only funds. BPFCX has also received a top Lipper Leader rating of 5 for capital preservation against all equity mutual funds (9,360 funds).
“Investors have been traumatized by the events of the past 18 months, including the sobering performance of many long-only, ‘buy and hold’ strategies, and wondering how and when they can reenter the market,” said Rob Kaimowitz, portfolio manager of the Fund and founder of Bull Path Capital Management. “We believe investors will be attracted to the performance characteristics of long-short funds which aim to capture the market’s upside while mitigating risk in a market sell-off.”
“Until recently, there have been few mutual funds focused on long-short, and we are one of the few tested strategies in the market today,” noted Kaimowitz. “We believe this strategy makes sense for both individual and institutional investors with a medium- to long-term view of the market.”
In addition, Kaimowitz says investors who may have previously considered long-short hedge funds should consider investing in this strategy through a mutual fund structure owing to such benefits as lower minimum investments, lower fees, full transparency and the assets being held in a trust bank.
“There has been increasing pressure on hedge funds to provide lower fees, greater liquidity and increased portfolio transparency,” noted Kaimowitz. “A mutual fund structure addresses these issues quite well.”
The Bull Path Long Short Fund adopts a strategy developed and run by Bull Path Capital Management since 2002. “One of the hallmarks of our strategy is our ability to reinvest our knowledge through our rigorous, concentrated fundamental analysis in establishing both long and short positions,” said Kaimowitz. “This ability serves us well as we seek to provide investors with consistent returns and high levels of alpha.”
The Bull Path Long Short Fund is available in A and C Class shares with a $1,000 minimum investment or a $500 minimum with participation in the automatic investment plan. The I share requires a minimum of $100,000 or a $50,000 minimum with participation in the automatic investment plan.
23 Jun 2009
Renaissance Hedge Fund Launch
Quantum Global Financial Corp. has launched a multi strategy New Renaissance Fund with over 37% return for its first 11 months ended May 29, 2009.
The fund uses a systematic approach that employs a new technology. These are dynamically self adapting forecasting models. The algorithms have been in development for 18 years, tested for 7 years in simulation, and finally put into practice 11 months ago resulting in a substantial positive performance gap.
QGF achieved their 37% return with average leverage ratio of 1.25. For the same period, the CSFB Managed Futures Index was down 2.37%, Barclay Multi Strategy Hedge Fund index was down 13.89% and the S&P 500 was down 37.67%.
The fund focuses on delivering absolute performance throughout the economic cycle, transparency, liquidity and partnerships with firms that demonstrate
extraordinary ethical compliance and global sustainability.
The fund uses a systematic approach that employs a new technology. These are dynamically self adapting forecasting models. The algorithms have been in development for 18 years, tested for 7 years in simulation, and finally put into practice 11 months ago resulting in a substantial positive performance gap.
QGF achieved their 37% return with average leverage ratio of 1.25. For the same period, the CSFB Managed Futures Index was down 2.37%, Barclay Multi Strategy Hedge Fund index was down 13.89% and the S&P 500 was down 37.67%.
The fund focuses on delivering absolute performance throughout the economic cycle, transparency, liquidity and partnerships with firms that demonstrate
extraordinary ethical compliance and global sustainability.
Principles For Hedge Fund Regulation Welcomed By AIMA
Global hedge fund industry group, The Alternative Investment Management Association (AIMA), has welcomed the principles for hedge fund regulation published by the International Organization of Securities Commissions (IOSCO) today.
“We are very happy to welcome the publication of this report today because AIMA has already announced its support for several of the high level principles mentioned in it." Andrew Baker, AIMA CEO, said, “In our new policy platform of 24th February, we said that we supported global registration for managers and we are glad that IOSCO has also come out in favour of this.
“We also expressed our support for the reporting of systemically relevant information by managers of large hedge funds to their national regulators, and this is another one of IOSCO’s key principles.
“We are also delighted that IOSCO refers to the ‘development, implementation and convergence of industry good practices’ because AIMA has been extremely active in this area and is continuing a great deal of work on it with the other groups involved. We are following up on a G20 action point in this respect," he continued.
In a note of caution, however, Baker said, "We would stress that it is hedge fund managers, rather than the funds themselves, that should registered. It is also mentioned that hedge funds use derivatives for speculative purposes without stating that exchange-traded and over-the-counter derivatives are principally used by the relevant market participants for risk management purposes."
“Finally, we are concerned that these recommendations may lead regulators to seek quantity rather than quality of data. It is important that regulators have the expertise and resources to deal with the data they receive.”
AIMA has more than 1,100 corporate members worldwide, based in 40 countries, including hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms and fund administrators.
“We are very happy to welcome the publication of this report today because AIMA has already announced its support for several of the high level principles mentioned in it." Andrew Baker, AIMA CEO, said, “In our new policy platform of 24th February, we said that we supported global registration for managers and we are glad that IOSCO has also come out in favour of this.
“We also expressed our support for the reporting of systemically relevant information by managers of large hedge funds to their national regulators, and this is another one of IOSCO’s key principles.
“We are also delighted that IOSCO refers to the ‘development, implementation and convergence of industry good practices’ because AIMA has been extremely active in this area and is continuing a great deal of work on it with the other groups involved. We are following up on a G20 action point in this respect," he continued.
In a note of caution, however, Baker said, "We would stress that it is hedge fund managers, rather than the funds themselves, that should registered. It is also mentioned that hedge funds use derivatives for speculative purposes without stating that exchange-traded and over-the-counter derivatives are principally used by the relevant market participants for risk management purposes."
“Finally, we are concerned that these recommendations may lead regulators to seek quantity rather than quality of data. It is important that regulators have the expertise and resources to deal with the data they receive.”
AIMA has more than 1,100 corporate members worldwide, based in 40 countries, including hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms and fund administrators.
22 Jun 2009
Execution LLC Opens New York Office
Execution LLC, an agency-only global broker dealer, today announced that it has opened a New York office as part of its long-term US growth plan.
Execution’s new office is located at 450 Park Avenue and will include space for US sales and trading, desk analysts, options and European sales. The New York office will allow for further growth in headcount, and will facilitate deeper relationships and exceptional service for many of the firm’s New York based clients.
“Having a New York presence will enable us to hire outstanding talent from New York, New Jersey and Long Island and will further enhance the level of service for both new and existing clients,” Gary Cunningham, CEO, Execution LLC said. “New York will complement our existing offices in Greenwich and San Francisco and was the natural next step for the firm.”
Daniel Fox, Partner of Execution, will oversee the NY office and will be joined by Jonathan Fairhurst, AnnaMarie O'Neill, Chief Market Strategist Rick Bensignor and Financial Desk Analyst Yousef Abassi. John Margolis, who recently joined Execution following a 20 year career in technology and trading most recently with Thomson Financial, will also be joining the team to build out an options capability.
Execution will maintain its Greenwich office and is in the process of opening a Boston office where the firm will service Boston based accounts for US, European and Asian equities. Execution has developed an edge operating in a velvet rope environment on a platform free of proprietary trading conflicts.
Execution LLC is the U.S. subsidiary of London based Execution Limited, a full-service agency broker providing clients with execution, sales, trading, research and corporate access, free from the conflicts inherent in proprietary trading and corporate broking. Execution services many of the world’s major investing institutions, including mutual funds, pension funds, insurance companies and hedge funds. Empowered by its technology and differentiated by its people, Execution provides access to the market's core liquidity providers through extensive personal relationships and expertise. Execution LLC is a member of NASD and SIPC.
Execution’s new office is located at 450 Park Avenue and will include space for US sales and trading, desk analysts, options and European sales. The New York office will allow for further growth in headcount, and will facilitate deeper relationships and exceptional service for many of the firm’s New York based clients.
“Having a New York presence will enable us to hire outstanding talent from New York, New Jersey and Long Island and will further enhance the level of service for both new and existing clients,” Gary Cunningham, CEO, Execution LLC said. “New York will complement our existing offices in Greenwich and San Francisco and was the natural next step for the firm.”
Daniel Fox, Partner of Execution, will oversee the NY office and will be joined by Jonathan Fairhurst, AnnaMarie O'Neill, Chief Market Strategist Rick Bensignor and Financial Desk Analyst Yousef Abassi. John Margolis, who recently joined Execution following a 20 year career in technology and trading most recently with Thomson Financial, will also be joining the team to build out an options capability.
Execution will maintain its Greenwich office and is in the process of opening a Boston office where the firm will service Boston based accounts for US, European and Asian equities. Execution has developed an edge operating in a velvet rope environment on a platform free of proprietary trading conflicts.
Execution LLC is the U.S. subsidiary of London based Execution Limited, a full-service agency broker providing clients with execution, sales, trading, research and corporate access, free from the conflicts inherent in proprietary trading and corporate broking. Execution services many of the world’s major investing institutions, including mutual funds, pension funds, insurance companies and hedge funds. Empowered by its technology and differentiated by its people, Execution provides access to the market's core liquidity providers through extensive personal relationships and expertise. Execution LLC is a member of NASD and SIPC.
Hedge Fund Man Investments Wins Again
The Banker Middle East Industry Awards 2009 has given Man Investments the 'Best Hedge Fund Company' award. Attended by H. E. Mr. Rasheed Mohammed Al Maraj, Governor of the Central Bank of Bahrain, the Banker Middle East Industry Awards gathered more than 350 government officials, regulators as well as banking and finance executives to recognise and award the best institutions operating in the Middle East in 24 different categories. Man Investments also won the hedge fund award in 2008.
"Winning the award for the second year in a row is an honour for us as it shows that other industry leaders recognise Man as a leader in developing the hedge fund industry in the Middle East." Patrick Merville, CEO of Man Investments Middle East, said.
Man Investments' first regional office in the world was opened in 1986, based in the Arab region. Since then, the company has established a robust base of institutional and retail clients. Man Investments is part of Man Group plc, one of the world's largest hedge fund providers.
"Banker Middle East Industry Awards are widely recognised as the benchmark of excellence and we are very pleased to have been the winner in this category since its inception," added Merville.
During the voting process, which started in April and closed early this month, nominees were elected from a shortlist pre-selected by the judging panel, which comprises international industry specialists from the major rating agencies, the region's financial centres and independent banking consultants who remain anonymous to ensure unbiased selections.
"Winning the award for the second year in a row is an honour for us as it shows that other industry leaders recognise Man as a leader in developing the hedge fund industry in the Middle East." Patrick Merville, CEO of Man Investments Middle East, said.
Man Investments' first regional office in the world was opened in 1986, based in the Arab region. Since then, the company has established a robust base of institutional and retail clients. Man Investments is part of Man Group plc, one of the world's largest hedge fund providers.
"Banker Middle East Industry Awards are widely recognised as the benchmark of excellence and we are very pleased to have been the winner in this category since its inception," added Merville.
During the voting process, which started in April and closed early this month, nominees were elected from a shortlist pre-selected by the judging panel, which comprises international industry specialists from the major rating agencies, the region's financial centres and independent banking consultants who remain anonymous to ensure unbiased selections.
19 Jun 2009
Viathon Capital Launches Credit Focused Opportunity Fund
Viathon Capital, LP has announced the launch of a new credit focused opportunity fund, the Whitewater Master Fund, LP, as of May 1, 2009. The launch has affiliated with Citigroup Alternative Investments LLC (CAI) as seed investor in this new fund.
The fund employs a fundamental, credit-intensive research process in order to identify long and short investment opportunities in both US and European markets.
"We have a multi-million dollar, best-in-class trading and risk management system that allows us to manage portfolio risk on a real time basis and seamlessly integrate with our prime brokers and independent administrator." Bob Becker and Rob Comizio, managing partners said, "In addition, we have the relationships, infrastructure and investment process in place to effectively execute our investment strategy."
"As managers of the Whitewater Master Fund, we are keenly aware of the current changes and challenges in our industry. As a result, we have instituted a number of key policies and initiatives specifically designed to service the needs of sophisticated investors in this new environment." they said.
The performance estimate for Whitewater Master Fund for the month of May 2009 was approximately +1%. Viathon Capital, LP has 60 years of combined market experience including four investment professionals and two trade support/back office personnel to manage the new fund.
The fund employs a fundamental, credit-intensive research process in order to identify long and short investment opportunities in both US and European markets.
"We have a multi-million dollar, best-in-class trading and risk management system that allows us to manage portfolio risk on a real time basis and seamlessly integrate with our prime brokers and independent administrator." Bob Becker and Rob Comizio, managing partners said, "In addition, we have the relationships, infrastructure and investment process in place to effectively execute our investment strategy."
"As managers of the Whitewater Master Fund, we are keenly aware of the current changes and challenges in our industry. As a result, we have instituted a number of key policies and initiatives specifically designed to service the needs of sophisticated investors in this new environment." they said.
The performance estimate for Whitewater Master Fund for the month of May 2009 was approximately +1%. Viathon Capital, LP has 60 years of combined market experience including four investment professionals and two trade support/back office personnel to manage the new fund.
Cogo Wolf Trimaran Liquidity FoHF Launch
Global hedge fund manager Cogo Wolf Asset Management launched the Cogo Wolf Trimaran Liquidity Fund, a highly liquid fund of hedge funds designed to help institutional and private investors navigate the current global investing storms.
Managed by Co-CIOs and Managing Partners Christopher R. Wolf and Giles Conway-Gordon and offering complete transparency, the Trimaran Liquidity Fund targets 16-18% net return with expected volatility of 6-8% without the use of leverage.
“The global financial markets are forever changed. The industry has experienced a kind of ‘perfect storm’ in recent years—the credit contraction, the housing contraction and the overall economic contraction,” stated Christopher R. Wolf. “Trimaran is the first fund of its kind, designed as a remedy for sophisticated institutional and private investors who are ready to redeploy capital but need new assurances to do so.”
The Trimaran Fund has been designed to provide Alpha with non-correlation and liability protection including: Ultra Liquidity (monthly liquidity, 10-day notice with no lock-up, no gate, no redemption penalties and complete transparency); Flexibility (all underlying investments are ultra liquid, permitting rapid, opportunistic responses to global volatility and market uncertainty); and Stability (diversification).
The “three distinct hulls” the Trimaran Fund invests in include:
* Managed Futures, Global Macro, CTAs and other ultra liquid strategies which have low/negative correlation to equity markets;
* ETFs enabling narrow and controlled directionality as a proxy for direct hedge fund investing;
* Debt-Related Instruments, notably mispriced credit opportunities offering attractive returns and gains.
“A forward-looking, global tactical asset allocation model will be necessary for investors to deliver profit in the new fund of hedge funds paradigm,” commented Giles Conway-Gordon. “Our top-down investment methodology, namely skating to where the puck is going to be, is paramount to nimbleness and adaptability. We are asset allocators first, talent scouts second.”
“It’s not enough to know what instruments one finds compelling; what’s mandatory is to know why you’re there in the first place. What macroeconomic trend does that investment capture? And if so, how effectively and what risks are associated with that decision? Risk management is more than optimization modeling, VAR and stress testing. It’s a holistic understanding of the environment in which these instruments are being used, the opportunity they’re designed to capture and the finesse necessary to know depth and duration – how long and how much does one hold? That’s the art and a talent we’ve honed over 25+ years,” Wolf concluded.
Cogo Wolf has been nominated by Alternative Investment News and Institutional Investor as “Emerging Manager of the Year” given its strong growth trajectory lead by the firm’s President and Partner, Rachel S.L. Minard, its 14-year history delivering 12% net CAR and having never lost an investor since its doors opened.
Managed by Co-CIOs and Managing Partners Christopher R. Wolf and Giles Conway-Gordon and offering complete transparency, the Trimaran Liquidity Fund targets 16-18% net return with expected volatility of 6-8% without the use of leverage.
“The global financial markets are forever changed. The industry has experienced a kind of ‘perfect storm’ in recent years—the credit contraction, the housing contraction and the overall economic contraction,” stated Christopher R. Wolf. “Trimaran is the first fund of its kind, designed as a remedy for sophisticated institutional and private investors who are ready to redeploy capital but need new assurances to do so.”
The Trimaran Fund has been designed to provide Alpha with non-correlation and liability protection including: Ultra Liquidity (monthly liquidity, 10-day notice with no lock-up, no gate, no redemption penalties and complete transparency); Flexibility (all underlying investments are ultra liquid, permitting rapid, opportunistic responses to global volatility and market uncertainty); and Stability (diversification).
The “three distinct hulls” the Trimaran Fund invests in include:
* Managed Futures, Global Macro, CTAs and other ultra liquid strategies which have low/negative correlation to equity markets;
* ETFs enabling narrow and controlled directionality as a proxy for direct hedge fund investing;
* Debt-Related Instruments, notably mispriced credit opportunities offering attractive returns and gains.
“A forward-looking, global tactical asset allocation model will be necessary for investors to deliver profit in the new fund of hedge funds paradigm,” commented Giles Conway-Gordon. “Our top-down investment methodology, namely skating to where the puck is going to be, is paramount to nimbleness and adaptability. We are asset allocators first, talent scouts second.”
“It’s not enough to know what instruments one finds compelling; what’s mandatory is to know why you’re there in the first place. What macroeconomic trend does that investment capture? And if so, how effectively and what risks are associated with that decision? Risk management is more than optimization modeling, VAR and stress testing. It’s a holistic understanding of the environment in which these instruments are being used, the opportunity they’re designed to capture and the finesse necessary to know depth and duration – how long and how much does one hold? That’s the art and a talent we’ve honed over 25+ years,” Wolf concluded.
Cogo Wolf has been nominated by Alternative Investment News and Institutional Investor as “Emerging Manager of the Year” given its strong growth trajectory lead by the firm’s President and Partner, Rachel S.L. Minard, its 14-year history delivering 12% net CAR and having never lost an investor since its doors opened.
Congress Acts to Tame Prowling Vulture Funds
Friday, 19 June 2oo9, Press Release: Africa ActionToday advocacy organizations and debt relief campaigners welcome the reintroduction of the Stop Very Unscrupulous Loan Transfers from Underprivileged Countries to Rich, Exploitive Funds or “Stop VULTURE Funds” Act (H.R. 2932) This bill, introduced in the House of Representatives, is designed to protect developing nations from lawsuits by so-called Vulture Funds.
The Stop VULTURE Funds Act introduced by Rep. Maxine Waters (D-CA) would prevent U.S. companies from buying the debt of impoverished countries at cut-rate prices and then suing to collect exponential profits. The bill would limit the excessive profits that companies and hedge funds collect off the backs of the world’s poorest citizens by capping the interest amounts for which the companies could sue at six percent. The legislation also increases transparency of these funds, requiring full disclosure from any fund that pursues Vulture Fund activity through the U.S. courts.
Vulture Funds are private equity or hedge funds that purchase the defaulted debt of developing countries, many of whom are Heavily Indebted Poor Countries (HIPC), at reduced rates and then sue the debtor nation for greatly inflated sums. Through the seizure of assets, litigation and political pressure, they seek repayments that are far in excess of the amount that the fund paid for the debt.
Led by Rep. Waters, the new legislation builds on the momentum from similar legislation introduced in the House in August 2008. The bill is co-sponsored by Representatives Spencer Bachus (R-AL), John Conyers (D-NJ), Donald Payne (D-NJ), Gregory Meeks (D-NY), Gwen Moore (D-WI), Maurice Hinchey (D-NY), Barbara Lee (D-CA), Eleanor Holmes-Norton (D-DC), Jan Schakowsky (D-IL), Luis Gutierrex (D-IL) and Wasserman Schultz (D-FL).
A coalition of non-governmental organizations working to prevent vulture funds from taking advantage of poor countries praised Rep. Waters’ legislation. “We commend the leadership shown by U.S. congressional representatives. H.R. 2932 is a key step in protecting developing countries from Vulture Funds. Now the legislation needs support by the full House and to move forward for Senate review,” Nicole Lee, Executive Director of TransAfrica Forum says.
The burden of Vulture Funds is being felt throughout Africa. “This year the Democratic Republic of the Congo could accrue fines of up to $80,000 a week as a result of a vulture lawsuit,” said Gerald LeMelle, Executive Director of Africa Action. He added, “This would be a enormous barrier to the DRC’s efforts to reconstruct its social and economic infrastructure amid years of conflict.”
Neil Watkins, Executive Director of Jubilee USA Network, an alliance of 75 religious denominations, development agencies, and human rights groups noted, “Vulture Funds make their profits by deepening the suffering of millions of people in some of the poorest countries in the world. They are stealing the resources that should be invested in education, health and infrastructure improvement.”
Last May, some of the world’s major creditor governments publicly committed not to sell or transfer any of their debt claims on HIPC countries to creditors who do not intend to provide debt relief under HIPC initiative, safeguarding this debt from litigation by Vulture creditors. Many countries, however, continue to sell their debt claims on vulnerable countries.
For more information, see:
Vulture Funds Backgrounder JubileeUSA
Vulture Funds Glossary Africa Action
Vulture Funds Policy Brief JubileeUSA
Spotlight on Zambia Africa Action
The Stop VULTURE Funds Act introduced by Rep. Maxine Waters (D-CA) would prevent U.S. companies from buying the debt of impoverished countries at cut-rate prices and then suing to collect exponential profits. The bill would limit the excessive profits that companies and hedge funds collect off the backs of the world’s poorest citizens by capping the interest amounts for which the companies could sue at six percent. The legislation also increases transparency of these funds, requiring full disclosure from any fund that pursues Vulture Fund activity through the U.S. courts.
Vulture Funds are private equity or hedge funds that purchase the defaulted debt of developing countries, many of whom are Heavily Indebted Poor Countries (HIPC), at reduced rates and then sue the debtor nation for greatly inflated sums. Through the seizure of assets, litigation and political pressure, they seek repayments that are far in excess of the amount that the fund paid for the debt.
Led by Rep. Waters, the new legislation builds on the momentum from similar legislation introduced in the House in August 2008. The bill is co-sponsored by Representatives Spencer Bachus (R-AL), John Conyers (D-NJ), Donald Payne (D-NJ), Gregory Meeks (D-NY), Gwen Moore (D-WI), Maurice Hinchey (D-NY), Barbara Lee (D-CA), Eleanor Holmes-Norton (D-DC), Jan Schakowsky (D-IL), Luis Gutierrex (D-IL) and Wasserman Schultz (D-FL).
A coalition of non-governmental organizations working to prevent vulture funds from taking advantage of poor countries praised Rep. Waters’ legislation. “We commend the leadership shown by U.S. congressional representatives. H.R. 2932 is a key step in protecting developing countries from Vulture Funds. Now the legislation needs support by the full House and to move forward for Senate review,” Nicole Lee, Executive Director of TransAfrica Forum says.
The burden of Vulture Funds is being felt throughout Africa. “This year the Democratic Republic of the Congo could accrue fines of up to $80,000 a week as a result of a vulture lawsuit,” said Gerald LeMelle, Executive Director of Africa Action. He added, “This would be a enormous barrier to the DRC’s efforts to reconstruct its social and economic infrastructure amid years of conflict.”
Neil Watkins, Executive Director of Jubilee USA Network, an alliance of 75 religious denominations, development agencies, and human rights groups noted, “Vulture Funds make their profits by deepening the suffering of millions of people in some of the poorest countries in the world. They are stealing the resources that should be invested in education, health and infrastructure improvement.”
Last May, some of the world’s major creditor governments publicly committed not to sell or transfer any of their debt claims on HIPC countries to creditors who do not intend to provide debt relief under HIPC initiative, safeguarding this debt from litigation by Vulture creditors. Many countries, however, continue to sell their debt claims on vulnerable countries.
For more information, see:
Vulture Funds Backgrounder JubileeUSA
Vulture Funds Glossary Africa Action
Vulture Funds Policy Brief JubileeUSA
Spotlight on Zambia Africa Action
Fund of Hedge Fund AS ll Beats S&P Through Crisis
I recently conducted an interview with Colleen Sorrentino, CIO, and Charles M. Wright, CFA, of FoHF's Advanced Strategies II, LP (AS II) as part of a manager interview to be featured on our HedgeCo.net Manager Database. I thought to publish some excerpts in advance.
On the topic of the FoHF's positive 5 year track record, Wright said, "Our goal is to achieve 75 to 80% in the bull market and we have met that through the history of the fund, beating the S&P 500 about 8.54% last year. Our 5 year track record Feb 2004-2009 beat the S&P 500 by 35%."
As a multi-strategy fund with $36 million under management, a 1.50% management fee and a minimum initial investment of $250,000, AS II recently celebrated its 5 year track record this February.
"We are not afraid of volatility and our edge is in our long-short policy, we don't use leverage as much as other funds." Sorrentino said, "AS II is a great fit for family offices, institution investors, foundations and high net worth individuals."
"Our strategy is combination of art and science," Sorrentino continued, "We put a lot of time into into our managers and their selection in order to generate maximum return. We are not a hot fund, moving from manager to manager, we do complete background checks at the start, following up with a focus on due diligence, meeting on site on an annual basis as well as with independent advisers."
AS II stays away from over-leveraged funds, with no leverage at the fund level. "We do not place money with hedge funds that invest a substantial portion of their assets in esoteric investments such as derivatives, structured investment vehicles, CDOs, or managers that utilize black box quantitative models. We have been managing funds of hedge fund portfolios since 1992. The Firm’s partners and employees maintain a substantial stake in AS II." the FoHF's website states.
AS II's parent company, Wall Street Access Advanced Strategies LLC (WSAAS), has been managing fund of hedge funds portfolios for over 15 years. WSAAS is also an affiliate of Wall Street Access, which is a New York Stock Exchange member. G&S Fund Services is Fund Administrator.
On the topic of the FoHF's positive 5 year track record, Wright said, "Our goal is to achieve 75 to 80% in the bull market and we have met that through the history of the fund, beating the S&P 500 about 8.54% last year. Our 5 year track record Feb 2004-2009 beat the S&P 500 by 35%."
As a multi-strategy fund with $36 million under management, a 1.50% management fee and a minimum initial investment of $250,000, AS II recently celebrated its 5 year track record this February.
"We are not afraid of volatility and our edge is in our long-short policy, we don't use leverage as much as other funds." Sorrentino said, "AS II is a great fit for family offices, institution investors, foundations and high net worth individuals."
"Our strategy is combination of art and science," Sorrentino continued, "We put a lot of time into into our managers and their selection in order to generate maximum return. We are not a hot fund, moving from manager to manager, we do complete background checks at the start, following up with a focus on due diligence, meeting on site on an annual basis as well as with independent advisers."
AS II stays away from over-leveraged funds, with no leverage at the fund level. "We do not place money with hedge funds that invest a substantial portion of their assets in esoteric investments such as derivatives, structured investment vehicles, CDOs, or managers that utilize black box quantitative models. We have been managing funds of hedge fund portfolios since 1992. The Firm’s partners and employees maintain a substantial stake in AS II." the FoHF's website states.
AS II's parent company, Wall Street Access Advanced Strategies LLC (WSAAS), has been managing fund of hedge funds portfolios for over 15 years. WSAAS is also an affiliate of Wall Street Access, which is a New York Stock Exchange member. G&S Fund Services is Fund Administrator.
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