HedgeCo Archive - A new hedge fund is offering to bridge the distance barrier between New Zealand and the rest of the world. Milestone Capital has established the Rutherford Innovation Fund to raise capital and back innovative companies which need financial assistance and business skills to commercialise their ideas on the international stage.
“The Rutherford Innovation Fund provides offshore investors with an experienced local co-investment partner to bridge the geographic gap to New Zealand as these companies are not on the radar of international investors,” Milestone Capital principal Kenji Steven says.
The Rutherford Innovation Fund sees the best opportunities for investment as being those that benefit from the massive changes being driven by the growth of Clean Tech – products, services and technologies that provide solutions to urgent global problems around energy, water, carbon and pollution.
The fund is named after Ernest Rutherford, the Kiwi who was the first person to split the atom and the father of modern nuclear physics. It’s a portfolio of private equity companies which include algae fuel manufacturer Aquaflow Bionomic Corporation, carbon sequestration firm Carbonscape and ‘top five’ international climate change website Celsias.
“The key limiting factor in New Zealand is capital. For private companies investment capital is scarce so there is attractive pricing and little competition for deals. The capital markets are also under-developed so approximately 80% of the top 200 New Zealand companies are private,” Steven says. The fund is targeting a capital raising of NZ$50 million over the next two years.
1 Oct 2009
Infiniti Capital's Hedge Fund Ranking Method
Hong Kong-based hedge funds of funds shop Infiniti Capital believes it has found a better way to quantitatively rank the risk adjusted returns of hedge funds than that used by traditional methods.
The new ranking method, called the Infiniti Single Fund Analysis (SFA) score, is included as a risk adjusted performance measure (RAPM) in Infiniti’s recently launched Infiniti Analytics Suite (IAS).
“We believe this method to be superior to most others in use." Infiniti chief investment officer and IAS project originator Peter Urbani says, "Infiniti Capital has been using this method for the past two years.”
The effectiveness of any such method, based purely on historical data, is in how well today’s ranking predicts what happens tomorrow or at some future out-of-sample period. In statistical speak this is known as the predictive power of the method.
The one major advantage of any quantitative method is that users can test its performance against all other known methods quickly and easily. In a recent study, the IAS development team did exactly that, comparing the performance of a portfolio built using the SFA total score as the objective to maximize versus three other widely used RAPMs.
This study showed that by using the SFA total score as an objective function, annual returns of up to 500 basis points (5%) per year higher than those using other traditional methods were achievable.
The database used was a common set of 36 hedge funds. Significantly, the returns achieved in 2008 were much higher than those for both the equally weighted portfolio and actual hedge fund of funds which generated average returns of -19% last year.
The ratio of the absolute realised risk adjusted returns, denoted as the Compound Annual Growth Rate (CAGR) over the absolute value of the peak to trough drawdown (downside risk), was also the best for the SFA portfolio.
“The predictive power of the SFA score comes from its innovative construction, proprietary weighting and ability to identify some of the non-linear effects common to hedge funds,” Urbani says.
Unlike traditional performance measures, the SFA score is both conditional on the time period being used and relative to a large reference data set of other hedge funds. Where other methods typically standardize everything back to a normal or Gaussian distribution, the IAS uses the best fitting distributions throughout. This has the effect of calibrating the range of scores more closely to real-world data.
Urbani stresses that the method is not perfect. “The SFA scores will not provide the best returns over each and every single time period, however, over any meaningful length of time they will tend to out-perform.”
He says, “We do not force people to use the SFA scores. This is a key point of differentiation between the IAS and other software packages. Just because we have a good idea doesn’t mean everyone should use it. That’s why this is an option in the IAS along with the ability to use just about any other known RAPM for optimisation purposes or to build your own.”
The new ranking method, called the Infiniti Single Fund Analysis (SFA) score, is included as a risk adjusted performance measure (RAPM) in Infiniti’s recently launched Infiniti Analytics Suite (IAS).
“We believe this method to be superior to most others in use." Infiniti chief investment officer and IAS project originator Peter Urbani says, "Infiniti Capital has been using this method for the past two years.”
The effectiveness of any such method, based purely on historical data, is in how well today’s ranking predicts what happens tomorrow or at some future out-of-sample period. In statistical speak this is known as the predictive power of the method.
The one major advantage of any quantitative method is that users can test its performance against all other known methods quickly and easily. In a recent study, the IAS development team did exactly that, comparing the performance of a portfolio built using the SFA total score as the objective to maximize versus three other widely used RAPMs.
This study showed that by using the SFA total score as an objective function, annual returns of up to 500 basis points (5%) per year higher than those using other traditional methods were achievable.
The database used was a common set of 36 hedge funds. Significantly, the returns achieved in 2008 were much higher than those for both the equally weighted portfolio and actual hedge fund of funds which generated average returns of -19% last year.
The ratio of the absolute realised risk adjusted returns, denoted as the Compound Annual Growth Rate (CAGR) over the absolute value of the peak to trough drawdown (downside risk), was also the best for the SFA portfolio.
“The predictive power of the SFA score comes from its innovative construction, proprietary weighting and ability to identify some of the non-linear effects common to hedge funds,” Urbani says.
Unlike traditional performance measures, the SFA score is both conditional on the time period being used and relative to a large reference data set of other hedge funds. Where other methods typically standardize everything back to a normal or Gaussian distribution, the IAS uses the best fitting distributions throughout. This has the effect of calibrating the range of scores more closely to real-world data.
Urbani stresses that the method is not perfect. “The SFA scores will not provide the best returns over each and every single time period, however, over any meaningful length of time they will tend to out-perform.”
He says, “We do not force people to use the SFA scores. This is a key point of differentiation between the IAS and other software packages. Just because we have a good idea doesn’t mean everyone should use it. That’s why this is an option in the IAS along with the ability to use just about any other known RAPM for optimisation purposes or to build your own.”
Former President Bill Clinton Honors Alternative Investor LeapFrog
In the Closing Plenary of the Clinton Global Initiative 2009, former President Bill Clinton featured LeapFrog Investments, which raised the world's first microinsurance fund.
"LeapFrog's team is widely recognized as having opened up a new frontier in microfinance and alternative investment." The former President noted, "The fund has raised $44 million from both private and public investors, towards an ultimate target of $100 million."
Before an audience of 1000 global leaders, President Clinton drew a direct link between the work of Nobel Laureate Muhammad Yunus to bring microcredit to millions of people, the 'Banker to the Poor,' and the work of LeapFrog as the global leader in microinsurance: "LeapFrog is quickly becoming the 'Insurer to the Poor'. Just like Yunus, [LeapFrog] is the first out of the gate, the first microinsurance fund in the world."
"For those 25 million clients, LeapFrog means the ability to leap out of poverty permanently." Dr. Andrew Kuper, President and Founder of LeapFrog said. "For our portfolio companies, LeapFrog means leaping to the next stage of growth and impact. For our investors, LeapFrog does mean the next frontier of microfinance and alternative investment."
Pierre Omidyar, Founder of EBay, immediately concurred with a post on Twitter, saying that it was "Great to see LeapFrog . . . recognized by President Clinton for work in microinsurance." The Omidyar Network is a lead investor in the fund, together with the European Investment Bank, FMO, Triodos, and Accion International.
LeapFrog's fund is now developing investment opportunities in key emerging markets such as India, Indonesia, the Philippines, South Africa, Ghana, and Kenya.
"LeapFrog's team is widely recognized as having opened up a new frontier in microfinance and alternative investment." The former President noted, "The fund has raised $44 million from both private and public investors, towards an ultimate target of $100 million."
Before an audience of 1000 global leaders, President Clinton drew a direct link between the work of Nobel Laureate Muhammad Yunus to bring microcredit to millions of people, the 'Banker to the Poor,' and the work of LeapFrog as the global leader in microinsurance: "LeapFrog is quickly becoming the 'Insurer to the Poor'. Just like Yunus, [LeapFrog] is the first out of the gate, the first microinsurance fund in the world."
"For those 25 million clients, LeapFrog means the ability to leap out of poverty permanently." Dr. Andrew Kuper, President and Founder of LeapFrog said. "For our portfolio companies, LeapFrog means leaping to the next stage of growth and impact. For our investors, LeapFrog does mean the next frontier of microfinance and alternative investment."
Pierre Omidyar, Founder of EBay, immediately concurred with a post on Twitter, saying that it was "Great to see LeapFrog . . . recognized by President Clinton for work in microinsurance." The Omidyar Network is a lead investor in the fund, together with the European Investment Bank, FMO, Triodos, and Accion International.
LeapFrog's fund is now developing investment opportunities in key emerging markets such as India, Indonesia, the Philippines, South Africa, Ghana, and Kenya.
Hedge Fund Manager Launches Fixed Income Frontier Fund
In a move that shows that product innovation is still alive and well, Silk Invest, an asset management firm regulated by the FSA, has just announced the launch of its new UCITS Luxembourg domiciled fund.
Focused on frontier markets, the new fund will be named The Silk Road Income Fund. Silk Invest also has previously launched equities hedge funds African Lions and Arab Falcons.
"The Silk Road markets are under-represented in investor’s portfolios. The timing of our launch is perfect for investors as it enables them to take advantage of the re-pricing of risk in these markets.”Daniel Broby, Chief Investment Officer of Silk Invest, said, "Recent history shows that the collective Silk Route countries have consistently grown GDP faster than developed economies."
As part of the fund development, Silk Invest conducted a survey of fixed income securities across the target regions, covering over 4,100 bonds and $480bn in total debt volumes. From this list the firm was able to filter out the most lucrative and liquid target asset universe, using a combination of credit and market-oriented stress tests.
"We aim to manage 60-80 holdings across 25 countries in the fund and are currently showing portfolio yields of over 16.5% with duration of 3.4 years." John Bates, Head of Fixed Income at Silk Invest, said.
Baldwin Berges, Director of Business Development at Silk Invest, noted “Despite tough market conditions, we are seeing strong investor appetite for fixed income in these frontier regions as investors seek reliable returns from a diversified pool of assets. With Daniel Broby’s longstanding investment management track record, John Bates’ experience as a credit analyst and Patrick Landi’s experience in origination, we have put together a formidable team of people, all with hands-on experience in frontier markets”
Focused on frontier markets, the new fund will be named The Silk Road Income Fund. Silk Invest also has previously launched equities hedge funds African Lions and Arab Falcons.
"The Silk Road markets are under-represented in investor’s portfolios. The timing of our launch is perfect for investors as it enables them to take advantage of the re-pricing of risk in these markets.”Daniel Broby, Chief Investment Officer of Silk Invest, said, "Recent history shows that the collective Silk Route countries have consistently grown GDP faster than developed economies."
As part of the fund development, Silk Invest conducted a survey of fixed income securities across the target regions, covering over 4,100 bonds and $480bn in total debt volumes. From this list the firm was able to filter out the most lucrative and liquid target asset universe, using a combination of credit and market-oriented stress tests.
"We aim to manage 60-80 holdings across 25 countries in the fund and are currently showing portfolio yields of over 16.5% with duration of 3.4 years." John Bates, Head of Fixed Income at Silk Invest, said.
Baldwin Berges, Director of Business Development at Silk Invest, noted “Despite tough market conditions, we are seeing strong investor appetite for fixed income in these frontier regions as investors seek reliable returns from a diversified pool of assets. With Daniel Broby’s longstanding investment management track record, John Bates’ experience as a credit analyst and Patrick Landi’s experience in origination, we have put together a formidable team of people, all with hands-on experience in frontier markets”
30 Sept 2009
Bookstaber To Speak At HedgeWorld As The Number of Hedge Funds Rise
Hedge fund manager Richard Bookstaber will be speaking at is year's HedgeWorld Fall Conference. He is the author of “A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation,” a book that pinpointed the market weaknesses that spun out of control to create today's financial crisis.
“A Demon of Our Own Design” ranked number one on Amazon in finance and was selected as a finalist for the prestigious Loeb Award. Bookstaber was named to this year's Conde Nast Portfolio list of top 25 technical innovators, joining the ranks of Steve Jobs, Jeff Bezos, Jeffrey Katzenberg and Eric Schmidt.
He has testified before the House and Senate, calling for greater transparency and improved regulation for Wall Street long before it was fashionable. BOOKSTABER recently worked at Bridgewater Associates, the world's largest hedge fund, and before that ran the Quantitative Equity Fund at FrontPoint Partners.
He was in charge of risk management at Moore Capital Management, another hedge fund with over $10 billion in assets. He served as the managing director in charge of firm-wide risk management at Salomon Brothers and was a member of Salomon's powerful Risk Management Committee. Bookstaber also spent ten years at Morgan Stanley, first designing and marketing derivative instruments, then as a proprietary trader, and concluding his tenure there as Morgan Stanley's first market risk manager. In addition to A Demon of Our Own Design (Wiley, 2007), he is the author of three other books and scores of articles on finance topics ranging from option theory to risk management. He has won the Graham and Dodd Scroll from the Financial Analysts Federation and the Roger F. Murray Award from the Institute for Quantitative Research in Finance for his research. Bookstaber has a Ph.D in Economics from M.I.T.
The conference is being held at the Metropolitan Club in New York on October 6th, 2009.
“A Demon of Our Own Design” ranked number one on Amazon in finance and was selected as a finalist for the prestigious Loeb Award. Bookstaber was named to this year's Conde Nast Portfolio list of top 25 technical innovators, joining the ranks of Steve Jobs, Jeff Bezos, Jeffrey Katzenberg and Eric Schmidt.
He has testified before the House and Senate, calling for greater transparency and improved regulation for Wall Street long before it was fashionable. BOOKSTABER recently worked at Bridgewater Associates, the world's largest hedge fund, and before that ran the Quantitative Equity Fund at FrontPoint Partners.
He was in charge of risk management at Moore Capital Management, another hedge fund with over $10 billion in assets. He served as the managing director in charge of firm-wide risk management at Salomon Brothers and was a member of Salomon's powerful Risk Management Committee. Bookstaber also spent ten years at Morgan Stanley, first designing and marketing derivative instruments, then as a proprietary trader, and concluding his tenure there as Morgan Stanley's first market risk manager. In addition to A Demon of Our Own Design (Wiley, 2007), he is the author of three other books and scores of articles on finance topics ranging from option theory to risk management. He has won the Graham and Dodd Scroll from the Financial Analysts Federation and the Roger F. Murray Award from the Institute for Quantitative Research in Finance for his research. Bookstaber has a Ph.D in Economics from M.I.T.
The conference is being held at the Metropolitan Club in New York on October 6th, 2009.
BNY Mellon/Dreyfus Launch Two Fund of Funds
The Dreyfus Corporation, part of BNY Mellon Asset Management, announced the introduction of the Dreyfus Satellite Alpha Fund and the Dreyfus Diversified Global Fund.
"Many individual investors are seeking a professionally managed solution that enables them to invest in non-traditional asset classes that have low correlations to traditional asset classes, especially in the wake of the recent financial crisis," said Phil Maisano, Vice Chairman and Chief Investment Officer for Dreyfus and Chief Investment Strategist for BNY Mellon Asset Management. "Dreyfus Satellite Alpha has been constructed within a 1940-Act platform to provide exposure to non-traditional asset classes such as commodities, currencies and real estate in addition to inflation-protected securities and global stocks and bonds.
"Dreyfus Diversified Global fund is distinctive among global funds; the underlying funds are managed by an array of BNY Mellon Asset Management affiliates with different points of view and investment philosophies which differentiate this fund from other global funds that only deliver a single viewpoint," Maisano said.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one a leading asset management and distribution company, currently managing more than $400 billion in mutual funds and separately managed accounts.
BNY Mellon Asset Management is the umbrella organization for BNY Mellon's affiliated investment management firms and global distribution companies.
"Many individual investors are seeking a professionally managed solution that enables them to invest in non-traditional asset classes that have low correlations to traditional asset classes, especially in the wake of the recent financial crisis," said Phil Maisano, Vice Chairman and Chief Investment Officer for Dreyfus and Chief Investment Strategist for BNY Mellon Asset Management. "Dreyfus Satellite Alpha has been constructed within a 1940-Act platform to provide exposure to non-traditional asset classes such as commodities, currencies and real estate in addition to inflation-protected securities and global stocks and bonds.
"Dreyfus Diversified Global fund is distinctive among global funds; the underlying funds are managed by an array of BNY Mellon Asset Management affiliates with different points of view and investment philosophies which differentiate this fund from other global funds that only deliver a single viewpoint," Maisano said.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one a leading asset management and distribution company, currently managing more than $400 billion in mutual funds and separately managed accounts.
BNY Mellon Asset Management is the umbrella organization for BNY Mellon's affiliated investment management firms and global distribution companies.
29 Sept 2009
Hedge Funds Team Up To Provide Investor Access To Prime Brokerage Platform
Hedge fund prime brokers Northern Trust and Merlin Securities have set up an agreement which enhances Merlin’s existing broker-dealer custody relationships with Goldman Sachs Execution and Clearing and J.P. Morgan Clearing Corp. Merlin’s clients now have easy access to all three providers through Merlin’s award-winning multi-prime reporting platform.
“In today’s market, managers and investors are seeking custodial solutions that reduce their counterparty risk and provide fully integrated, multi-custodian reporting analytics and risk data,” said Stephan Vermut, Founder and Managing Partner of Merlin. “Our agreement with Northern Trust addresses this need for our clients and grants seamless access to a bank custody provider with an unparalleled reputation for quality, safety and stability.”
“Northern Trust is delighted to add Merlin and its clients to our growing hedge fund custody and administration business – which now provides asset servicing for more than $90 billion in assets worldwide,” said Peter Cherecwich , Chief Operating Officer for Corporate and Institutional Services at Northern Trust. “Merlin’s technology, risk analytics, and multi-custody reporting capabilities are a strong complement to Northern Trust’s hedge fund services.”
As of June 30, 2009 , Northern Trust had assets under custody of US$3.2 trillion, and assets under investment management of $558.9 billion.
Merlin Securities has offices in New York and San Francisco and is a member of FINRA and SIPC. Recognized as the #1 prime broker for funds less than $1 billion by Alpha magazine’s 2008 hedge fund service provider survey for the second year running Merlin was the top-ranked non-algorithmic-driven firm and second overall among brokerages trading NYSE stocks as measured by arrival price, according to the 2008 Elkins/McSherry annual transaction cost survey.
“In today’s market, managers and investors are seeking custodial solutions that reduce their counterparty risk and provide fully integrated, multi-custodian reporting analytics and risk data,” said Stephan Vermut, Founder and Managing Partner of Merlin. “Our agreement with Northern Trust addresses this need for our clients and grants seamless access to a bank custody provider with an unparalleled reputation for quality, safety and stability.”
“Northern Trust is delighted to add Merlin and its clients to our growing hedge fund custody and administration business – which now provides asset servicing for more than $90 billion in assets worldwide,” said Peter Cherecwich , Chief Operating Officer for Corporate and Institutional Services at Northern Trust. “Merlin’s technology, risk analytics, and multi-custody reporting capabilities are a strong complement to Northern Trust’s hedge fund services.”
As of June 30, 2009 , Northern Trust had assets under custody of US$3.2 trillion, and assets under investment management of $558.9 billion.
Merlin Securities has offices in New York and San Francisco and is a member of FINRA and SIPC. Recognized as the #1 prime broker for funds less than $1 billion by Alpha magazine’s 2008 hedge fund service provider survey for the second year running Merlin was the top-ranked non-algorithmic-driven firm and second overall among brokerages trading NYSE stocks as measured by arrival price, according to the 2008 Elkins/McSherry annual transaction cost survey.
ALTSO’s 6th Annual Hedge Fund Rocktoberfest Draws Corporate Sponsors
New York (HedgeCo.net) - This year marks the sixth anniversary of A Leg To Stand On’s (ALTSO) annual benefit, Hedge Fund Rocktoberfest, which is fast becoming one of ALTSO's most successful fund raisers to date, with more corporate sponsors signing on than ever before.
As one of Wall Street’s most popular annual events, Hedge Fund Rocktoberfest features bands whose members work in the hedge fund and finance industry. All of the five bands scheduled to perform on the main stage at this year’s event are competing to raise the most for ALTSO; vying for the lead currently are JAM Partners and The Cause.
“I’m extremely grateful to everyone who has given to ALTSO,” says C. Mead Welles, co-founder of ALTSO and managing partner of New York hedge fund Octagon Asset Management. “What we do has such a big impact on these children’s lives and it costs so little to do so much.” ALTSO improves the lives of children with limb disabilities in emerging countries by providing free surgeries and prosthetic limbs.
The money raised from last year’s Hedge Fund Rocktoberfest helped ALTSO expand its efforts and clinics in India, Bangladesh, Haiti, Nepal, Nigeria, Colombia, and Ecuador. Revenue raised this year will go toward fulfilling ALTSO’s goal of helping level the playing field for 1,000 more children in 2010, bringing their total of children helped to nearly 6,000 in under eight years.
“The bands are working extra hard to bring in donations this year,” says Chris Heasman, a director and portfolio manager with Lazard Asset Management in New York who performs with The Subscribers, which has played at every Hedge Fund Rocktoberfest
since the event began and is scheduled to perform again this year. “Sure, Rocktoberfest is about having fun, but it’s more about raising money for ALTSO so they can continue their work with children in developing countries.”
Other long time supporters of the charity include Deutsche Bank, Credit Suisse, and Jacobs Asset Management, LLC.
As one of Wall Street’s most popular annual events, Hedge Fund Rocktoberfest features bands whose members work in the hedge fund and finance industry. All of the five bands scheduled to perform on the main stage at this year’s event are competing to raise the most for ALTSO; vying for the lead currently are JAM Partners and The Cause.
“I’m extremely grateful to everyone who has given to ALTSO,” says C. Mead Welles, co-founder of ALTSO and managing partner of New York hedge fund Octagon Asset Management. “What we do has such a big impact on these children’s lives and it costs so little to do so much.” ALTSO improves the lives of children with limb disabilities in emerging countries by providing free surgeries and prosthetic limbs.
The money raised from last year’s Hedge Fund Rocktoberfest helped ALTSO expand its efforts and clinics in India, Bangladesh, Haiti, Nepal, Nigeria, Colombia, and Ecuador. Revenue raised this year will go toward fulfilling ALTSO’s goal of helping level the playing field for 1,000 more children in 2010, bringing their total of children helped to nearly 6,000 in under eight years.
“The bands are working extra hard to bring in donations this year,” says Chris Heasman, a director and portfolio manager with Lazard Asset Management in New York who performs with The Subscribers, which has played at every Hedge Fund Rocktoberfest
since the event began and is scheduled to perform again this year. “Sure, Rocktoberfest is about having fun, but it’s more about raising money for ALTSO so they can continue their work with children in developing countries.”
Other long time supporters of the charity include Deutsche Bank, Credit Suisse, and Jacobs Asset Management, LLC.
28 Sept 2009
Suzanne Sunshine Goes Solo With Brokerage For Nonprofits
New York reak estate broker Suzanne Sunshine has left the world of global brokerages to launch Sunshine & Associates LLC. The full-service brokerage handles office, retail, industrial leasing, acquisitions and sales exclusively for nonprofits. The firm also provides strategic planning and financial analysis.
Operating a boutique brokerage also provides her with the financial flexibility to donate a portion of her commissions back to her clients, a corporate practice considered unique in the commercial real estate world.
"To be able to achieve its mission, a nonprofit organization must make the right decisions about real estate," said Ms. Sunshine, the firm's president. "Nonprofits benefit from the counsel of an experienced professional who understands their mission and can also maximize the value of their real estate, a major item on their balance sheets."
The company also offers residential real estate services for nonprofit staff, volunteers and board members.
Suzanne Sunshine previously served as vice president of the New York nonprofit practice group at CB Richard Ellis. Prior to that, she was director of the New York nonprofit advisory group at Cushman & Wakefield. Ms. Sunshine also provided tenant representation services to nonprofit organizations at Time Equities, and worked as executive vice president for new business development at the Sunshine Group, a company led by her mother, Louise Sunshine.
Ms. Sunshine worked within the nonprofit sector on behalf of Equitable Real Estate and the Local Initiatives Support Corporation, where she helped the two organizations raise a total of $125 million in support of inner-city neighborhoods.
Her clients have included the American Ballet Theatre, the Andrew Mellon Foundation, the Ms. Foundation for Women Poets & Writers, the Correctional Association of New York, Housing Works Thrift Shops, the Mental Health Association of NY, the Anne Frank Center, and many others.
Ms. Sunshine holds a bachelor's degree in international relations from Brown University and an MBA in real estate from Columbia University.
For more information about S. Sunshine & Associates, please visit the brokerage online at: www.sunshineassoc.com.
Operating a boutique brokerage also provides her with the financial flexibility to donate a portion of her commissions back to her clients, a corporate practice considered unique in the commercial real estate world.
"To be able to achieve its mission, a nonprofit organization must make the right decisions about real estate," said Ms. Sunshine, the firm's president. "Nonprofits benefit from the counsel of an experienced professional who understands their mission and can also maximize the value of their real estate, a major item on their balance sheets."
The company also offers residential real estate services for nonprofit staff, volunteers and board members.
Suzanne Sunshine previously served as vice president of the New York nonprofit practice group at CB Richard Ellis. Prior to that, she was director of the New York nonprofit advisory group at Cushman & Wakefield. Ms. Sunshine also provided tenant representation services to nonprofit organizations at Time Equities, and worked as executive vice president for new business development at the Sunshine Group, a company led by her mother, Louise Sunshine.
Ms. Sunshine worked within the nonprofit sector on behalf of Equitable Real Estate and the Local Initiatives Support Corporation, where she helped the two organizations raise a total of $125 million in support of inner-city neighborhoods.
Her clients have included the American Ballet Theatre, the Andrew Mellon Foundation, the Ms. Foundation for Women Poets & Writers, the Correctional Association of New York, Housing Works Thrift Shops, the Mental Health Association of NY, the Anne Frank Center, and many others.
Ms. Sunshine holds a bachelor's degree in international relations from Brown University and an MBA in real estate from Columbia University.
For more information about S. Sunshine & Associates, please visit the brokerage online at: www.sunshineassoc.com.
Holon Fund Gains 1.86% in August, 25.25% YTD
Hedge fund manager Quantum Global Financial Corp. (QGF) reports a 1.86% gain in August for its Holon Fund, bringing the year-to-date return to 25.25% and the rolling 12-month return to 29.18%.
For the same 12 months, the CSFB Managed Futures Index gained 2.45% (correlation -.093) and the Barclay Multi Strategy Hedge Fund index gained 0.05% (correlation .202). Negative or low correlations demonstrate Holon fund’s diversification properties.
The Holon Fund employs proprietary forecasting technology with automated order entry that performed over 7000 market operations over the last 14 months. Using a low average leverage ratio of 1.5, QGF has returned 54.65% since its inception, after commissions and fees.
The development of their own quantitative analysis technology has allowed QGF to deliver absolute performance over the economic cycle, the company said. QGF believes that transparency, liquidity and forming partnerships based upon ethical compliance and global sustainability are essential to the fund’s growth.
For the same 12 months, the CSFB Managed Futures Index gained 2.45% (correlation -.093) and the Barclay Multi Strategy Hedge Fund index gained 0.05% (correlation .202). Negative or low correlations demonstrate Holon fund’s diversification properties.
The Holon Fund employs proprietary forecasting technology with automated order entry that performed over 7000 market operations over the last 14 months. Using a low average leverage ratio of 1.5, QGF has returned 54.65% since its inception, after commissions and fees.
The development of their own quantitative analysis technology has allowed QGF to deliver absolute performance over the economic cycle, the company said. QGF believes that transparency, liquidity and forming partnerships based upon ethical compliance and global sustainability are essential to the fund’s growth.
'Insights for Investors' Conference Draws Hedge Fund Managers
The GlobeOp seminar drew a capacity audience of hedge fund investors and managers, representing approximately $260 billion in assets under management, in New York City over the weekend.
Speakers representing Lighthouse Investment Partners, Lyxor Asset Management, Waterstone Capital Management, Bracewell & Giuliani, Newedge Group and GlobeOp offered insights on hedge fund manager selection, legal requirements, middle-back office services, controls and monitoring.
Excepts from the presentations include:
Sean McGould, president and co-chief investment officer, Lighthouse Partners “We transitioned to managed accounts over the last five years for the added benefits of transparency, flexibility, and control. Full transparency allows for a deeper focus than has traditionally been the case, especially during the manager selection process. For prospective managers, there are three primary considerations. First, does the manager offer real diversification or do they merely compound existing risks? This can only be accurately measured by layering a prospect’s daily position level data into the portfolio and conducting a deep statistical analysis. Second, is the portfolio highly correlated to the most widely held names or other dominant themes within the hedge fund universe? Having the ability to confirm the uniqueness of a prospect’s portfolio is of great benefit and increases the level of overall diversification. Finally, if the manager meets these tests, is there a willingness to commit the resources necessary to make a managed account feasible and the on-boarding process as seamless as possible? …Flexibility is key to remaining opportunistic and taking advantage of market dislocations. …The benefit of control speaks for itself after a year like 2008.
Nathanael Benzaken, managing director, Lyxor Asset Management “The two main risks for investors are market risk and operations risk - one to manage and the other to mitigate… The challenge with transparency is how to exploit it. To understand risk, investors need robust software, experienced risk managers, and an appropriate risk methodology. Only scenario and stress test models can help assess tail risk in dislocated markets. VaR is not appropriate, unless perhaps for manager-level portfolio construction… The managed account’s segregation facilitates operational risk management. This is the most important risk to eliminate because it creates a short put equivalent position for investors - it’s the ‘dark side’…. All managed accounts and platforms are not equal. Some are ‘Madoff-able;’ some are ‘Amaranth-able.’ For full transparency and to identify risk and/or style drift early, in-depth and regular due diligence should be done on the underlying managers, the platform structure and infrastructure - at inception and throughout the life of the relationships.
Risk monitoring is nothing, what really matters is risk management. The goal is not to second- guess or intervene in portfolio management, but to understand and take clear action when it’s necessary - for instance in the case of mitigating counterparty risk or when confidence in the manager is lost (e.g. breach of mandate).”
Martin Kalish, chief operating officer, chief financial officer, Waterstone Capital Management “Managed accounts are not for everyone - does it fit your business plan? The manager seeks a long-term investor; the investor requires assurance of the manager’s experience in running a managed account. Consider whether the investor will understand and be responsible for the portfolio information they receive — is more support time needed than for other fund investors? …The mandate is also key - its definitions can significantly impact asset allocation, concentrations, leverage, liquidity, operations and risk management compared to the flagship fund.
Cost and resources also matter. Managed accounts are about data management. Operational systems are needed to create reporting transparency. Is there sufficient operational staff for trade allocation, valuation and settlement, portfolio accounting and programming? …It’s very difficult to run multiple funds without investing in technology. Trade allocations should be automated to mitigate manual intervention. … Investors also need resources to execute managed accounts - it requires two-three months, including the key challenges of the legal aspects and establishing prime broker accounts.”
John Brunjes, partner, Bracewell & Giuliani “The structure and terms an investor prefers in the managed account involve a fully-negotiated process. For the investment advisor, a managed account is a separate client under the Investment Advisors act. At the level of 15 clients, the advisor must become SEC-registered and operate in a registered environment - a new challenge for some. For the investor, the arrangement gives power of attorney to the manager to trade the account, subject to restrictions the investor defines. It is a fee-for-service arrangement as opposed to the two-and-twenty structure traditional in pooled capital. Many investors, in consultation with their managers, create a special purpose vehicle, usually a limited liability company. To avoid project execution risk, investors should ensure the manager has already strategically decided to undertake managed account arrangements and is prepared for what it entails.
The mandate or operating agreement defines the type of trading authorisations and restrictions governing the manager, including sector, concentrations or company specifics. As the direct owner of the securities, the investor also assumes liability and compliance responsibilities.
Investors increasingly specify independent administrators to provide checks and balances on managers, including asset and portfolio valuation, daily position and risk reporting, etc. The registered environment also stipulates administrative, infrastructure and reporting requirements. Independent involvement in providing transparency, checks and balances to various managed account components can offer more comfort to investors, which is why these vehicles are increasingly attractive.”
Cary Goldstein, associate director, Newedge USA, Prime Brokerage Group “A managed account platform will have more than one hedge fund manager trading for multiple vehicles, multiple prime broker relationships and a single administrator across all accounts. From a trading perspective, the most significant implication for each fund manager is the need for a trade allocation process to split trades appropriately between the managed accounts and the flagship fund. For liquid, listed instruments, this is fairly straight-forward. But it can be more complex for OTC and illiquid instruments - distinct trades may be needed for each managed account and flagship fund, with good monitoring to mitigate tracking errors… In a managed account, investors view the ability to control of the amount of leverage utilised to be an advantage.”
Vernon Barback, president, chief operating officer, GlobeOp Financial Services “Administration for managed accounts should focus on what the investor wants and needs. Best practice requires a very deep level of service. Helping the investor manage and mitigate risk across all portfolios is key; reducing overall operational risk is the greatest value-add. The investor should approach the administrator in a demanding and thoughtful manner, as a partner who helps to mitigate operational risks and provide transparency so the investor can ensure that the manager is adhering to the agreed investment principles.
Due diligence is not a “tick the box” exercise. Rather, it needs to be an ongoing and in-depth process. There are seven administration areas where an investor should conduct deep due diligence. Is technology a source of innovation and target of continuous investment? Are processes subject to a control environment and is real-time transparency accessible to investors and administrator management? Is domain experience and scale being developed in the human resource pool? Visit off-shore teams and operations to ensure they are integral and adding value to operations. Ask for a personal presentation of the SAS 70 to ensure it is a single document whose scope covers all services & controls the managed account requires, in all offices. Reconciliations should be run daily, with breaks corrected with the manager, and root causes should be investigated to prevent repetition. As the devil is in the detail of the security master, verify that customized risk reports can be run by the administration organization keeping the managed account’s books & records.”
Speakers representing Lighthouse Investment Partners, Lyxor Asset Management, Waterstone Capital Management, Bracewell & Giuliani, Newedge Group and GlobeOp offered insights on hedge fund manager selection, legal requirements, middle-back office services, controls and monitoring.
Excepts from the presentations include:
Sean McGould, president and co-chief investment officer, Lighthouse Partners “We transitioned to managed accounts over the last five years for the added benefits of transparency, flexibility, and control. Full transparency allows for a deeper focus than has traditionally been the case, especially during the manager selection process. For prospective managers, there are three primary considerations. First, does the manager offer real diversification or do they merely compound existing risks? This can only be accurately measured by layering a prospect’s daily position level data into the portfolio and conducting a deep statistical analysis. Second, is the portfolio highly correlated to the most widely held names or other dominant themes within the hedge fund universe? Having the ability to confirm the uniqueness of a prospect’s portfolio is of great benefit and increases the level of overall diversification. Finally, if the manager meets these tests, is there a willingness to commit the resources necessary to make a managed account feasible and the on-boarding process as seamless as possible? …Flexibility is key to remaining opportunistic and taking advantage of market dislocations. …The benefit of control speaks for itself after a year like 2008.
Nathanael Benzaken, managing director, Lyxor Asset Management “The two main risks for investors are market risk and operations risk - one to manage and the other to mitigate… The challenge with transparency is how to exploit it. To understand risk, investors need robust software, experienced risk managers, and an appropriate risk methodology. Only scenario and stress test models can help assess tail risk in dislocated markets. VaR is not appropriate, unless perhaps for manager-level portfolio construction… The managed account’s segregation facilitates operational risk management. This is the most important risk to eliminate because it creates a short put equivalent position for investors - it’s the ‘dark side’…. All managed accounts and platforms are not equal. Some are ‘Madoff-able;’ some are ‘Amaranth-able.’ For full transparency and to identify risk and/or style drift early, in-depth and regular due diligence should be done on the underlying managers, the platform structure and infrastructure - at inception and throughout the life of the relationships.
Risk monitoring is nothing, what really matters is risk management. The goal is not to second- guess or intervene in portfolio management, but to understand and take clear action when it’s necessary - for instance in the case of mitigating counterparty risk or when confidence in the manager is lost (e.g. breach of mandate).”
Martin Kalish, chief operating officer, chief financial officer, Waterstone Capital Management “Managed accounts are not for everyone - does it fit your business plan? The manager seeks a long-term investor; the investor requires assurance of the manager’s experience in running a managed account. Consider whether the investor will understand and be responsible for the portfolio information they receive — is more support time needed than for other fund investors? …The mandate is also key - its definitions can significantly impact asset allocation, concentrations, leverage, liquidity, operations and risk management compared to the flagship fund.
Cost and resources also matter. Managed accounts are about data management. Operational systems are needed to create reporting transparency. Is there sufficient operational staff for trade allocation, valuation and settlement, portfolio accounting and programming? …It’s very difficult to run multiple funds without investing in technology. Trade allocations should be automated to mitigate manual intervention. … Investors also need resources to execute managed accounts - it requires two-three months, including the key challenges of the legal aspects and establishing prime broker accounts.”
John Brunjes, partner, Bracewell & Giuliani “The structure and terms an investor prefers in the managed account involve a fully-negotiated process. For the investment advisor, a managed account is a separate client under the Investment Advisors act. At the level of 15 clients, the advisor must become SEC-registered and operate in a registered environment - a new challenge for some. For the investor, the arrangement gives power of attorney to the manager to trade the account, subject to restrictions the investor defines. It is a fee-for-service arrangement as opposed to the two-and-twenty structure traditional in pooled capital. Many investors, in consultation with their managers, create a special purpose vehicle, usually a limited liability company. To avoid project execution risk, investors should ensure the manager has already strategically decided to undertake managed account arrangements and is prepared for what it entails.
The mandate or operating agreement defines the type of trading authorisations and restrictions governing the manager, including sector, concentrations or company specifics. As the direct owner of the securities, the investor also assumes liability and compliance responsibilities.
Investors increasingly specify independent administrators to provide checks and balances on managers, including asset and portfolio valuation, daily position and risk reporting, etc. The registered environment also stipulates administrative, infrastructure and reporting requirements. Independent involvement in providing transparency, checks and balances to various managed account components can offer more comfort to investors, which is why these vehicles are increasingly attractive.”
Cary Goldstein, associate director, Newedge USA, Prime Brokerage Group “A managed account platform will have more than one hedge fund manager trading for multiple vehicles, multiple prime broker relationships and a single administrator across all accounts. From a trading perspective, the most significant implication for each fund manager is the need for a trade allocation process to split trades appropriately between the managed accounts and the flagship fund. For liquid, listed instruments, this is fairly straight-forward. But it can be more complex for OTC and illiquid instruments - distinct trades may be needed for each managed account and flagship fund, with good monitoring to mitigate tracking errors… In a managed account, investors view the ability to control of the amount of leverage utilised to be an advantage.”
Vernon Barback, president, chief operating officer, GlobeOp Financial Services “Administration for managed accounts should focus on what the investor wants and needs. Best practice requires a very deep level of service. Helping the investor manage and mitigate risk across all portfolios is key; reducing overall operational risk is the greatest value-add. The investor should approach the administrator in a demanding and thoughtful manner, as a partner who helps to mitigate operational risks and provide transparency so the investor can ensure that the manager is adhering to the agreed investment principles.
Due diligence is not a “tick the box” exercise. Rather, it needs to be an ongoing and in-depth process. There are seven administration areas where an investor should conduct deep due diligence. Is technology a source of innovation and target of continuous investment? Are processes subject to a control environment and is real-time transparency accessible to investors and administrator management? Is domain experience and scale being developed in the human resource pool? Visit off-shore teams and operations to ensure they are integral and adding value to operations. Ask for a personal presentation of the SAS 70 to ensure it is a single document whose scope covers all services & controls the managed account requires, in all offices. Reconciliations should be run daily, with breaks corrected with the manager, and root causes should be investigated to prevent repetition. As the devil is in the detail of the security master, verify that customized risk reports can be run by the administration organization keeping the managed account’s books & records.”
25 Sept 2009
People Moves: G&S Fund Services Grows with Additional Key Personnel
Hedge fund administration company, G&S Fund Services has expanded with the hire of Kairey Chen as hedge fund accountant.
Kairey Chen will be a valued addition to help support the rapid growth that G&S is experiencing. "Joe Goldstein, Executive Vice President of G&S Services, said.
Chen came to G&S after serving as an auditor with Ernst & Young and has 7 years experience. Her education includes a Bachelor of Science from Fordham University, where she majored in accounting.
US domiciled, G&S Fund Services is a leader in hedge fund administration, accounting and tax services. Catering to firms of all sizes, both on and off-shore, G&S provides professional fund servicing, designed to fit the specific and growing needs of the hedge fund industry.
Kairey Chen will be a valued addition to help support the rapid growth that G&S is experiencing. "Joe Goldstein, Executive Vice President of G&S Services, said.
Chen came to G&S after serving as an auditor with Ernst & Young and has 7 years experience. Her education includes a Bachelor of Science from Fordham University, where she majored in accounting.
US domiciled, G&S Fund Services is a leader in hedge fund administration, accounting and tax services. Catering to firms of all sizes, both on and off-shore, G&S provides professional fund servicing, designed to fit the specific and growing needs of the hedge fund industry.
Man Research Laboratory and Oxford-Man Institute of Quantitative Finance Expansion
Man Research Laboratory (MRL) and the Oxford-Man Institute of Quantitative Finance (OMI) opened new, larger premises in Jericho, Oxford, on 24 September, demonstrating that the two groups’ unique collaboration is flourishing as it moves into its third year.
In a ceremony held in Oxford, The Chancellor of Oxford University, Lord Patten of Barnes announced the official opening of new offices for the MRL and the OMI. At the new offices, AHL’s researchers and the Oxford University academics of the OMI will continue to share purpose designed premises, creating a stimulating environment that fosters day-to-day interactions between the two groups.
AHL is one of world’s largest managed futures managers and a wholly owned subsidiary of Man Group. Its two decade track record of consistent double digit gains for investors is based on an unstinting dedication to research.
The University of Oxford and Man Group were brought together in 2007 when Man provided the cornerstone funding for the first academic institute dedicated to quantitative finance and co-located it with its own commercial researchers. AHL’s research in Oxford is a commercial undertaking while the OMI pursues academic excellence, independent of Man. This arrangement remains the first and only co-location of its kind between Oxford University and a commercial entity.
“AHL is already trading billions of dollars using advanced trading concepts developed at AHL in Oxford,” said Dr Anthony Ledford, Chief Scientist of the MRL. “The collaboration benefits us enormously and allows us to hear about OMI’s academic theories first and share ideas with some of the world’s best quantitative finance academics; promote our name as an exciting and innovative employer within Oxford’s academic community and research our own ideas in a stimulating environment,” he added.
In a ceremony held in Oxford, The Chancellor of Oxford University, Lord Patten of Barnes announced the official opening of new offices for the MRL and the OMI. At the new offices, AHL’s researchers and the Oxford University academics of the OMI will continue to share purpose designed premises, creating a stimulating environment that fosters day-to-day interactions between the two groups.
AHL is one of world’s largest managed futures managers and a wholly owned subsidiary of Man Group. Its two decade track record of consistent double digit gains for investors is based on an unstinting dedication to research.
The University of Oxford and Man Group were brought together in 2007 when Man provided the cornerstone funding for the first academic institute dedicated to quantitative finance and co-located it with its own commercial researchers. AHL’s research in Oxford is a commercial undertaking while the OMI pursues academic excellence, independent of Man. This arrangement remains the first and only co-location of its kind between Oxford University and a commercial entity.
“AHL is already trading billions of dollars using advanced trading concepts developed at AHL in Oxford,” said Dr Anthony Ledford, Chief Scientist of the MRL. “The collaboration benefits us enormously and allows us to hear about OMI’s academic theories first and share ideas with some of the world’s best quantitative finance academics; promote our name as an exciting and innovative employer within Oxford’s academic community and research our own ideas in a stimulating environment,” he added.
24 Sept 2009
Prime Brokerage Services Division Launch For Hedge Funds and Investment Advisers
TradeStation Securities, Inc., has launched the TradeStation Prime Services division to fill the growing need of start-up to mid-sized hedge funds, the company said today.
TradeStation Prime Services will be co-headed by Lance Baraker and William Katts, as senior managing directors, from a new TradeStation office in mid-town Manhattan, TradeStation will also now have a full membership and direct access operation on the floor of the New York Stock Exchange to accommodate clients who make some of their trades on the NYSE floor.
"We believe that our award-winning trading platform technology, ability to provide custody and clearing, and the strength of our balance sheet will give us a strong offering to the small- to mid-sized hedge funds and investment advisers who need services no longer being provided by the larger firms," said Salomon Sredni, CEO of TradeStation Group. "This is a market opportunity for TradeStation that did not really exist until recently, and we look forward to maximizing the value we believe we can create by entering this segment of the institutional trader space."
"We are extremely excited about joining TradeStation," added Baraker. "The downfall of many financial firms in 2008 has created a rare opportunity for another custodian to enter and succeed in the prime brokerage market. William and I look forward to combining our experience and relationships built over the years with TradeStation's industry-leading technology to create a leading, powerful prime brokerage platform for the buy-side institutional trader."
TradeStation Prime Services will be co-headed by Lance Baraker and William Katts, as senior managing directors, from a new TradeStation office in mid-town Manhattan, TradeStation will also now have a full membership and direct access operation on the floor of the New York Stock Exchange to accommodate clients who make some of their trades on the NYSE floor.
"We believe that our award-winning trading platform technology, ability to provide custody and clearing, and the strength of our balance sheet will give us a strong offering to the small- to mid-sized hedge funds and investment advisers who need services no longer being provided by the larger firms," said Salomon Sredni, CEO of TradeStation Group. "This is a market opportunity for TradeStation that did not really exist until recently, and we look forward to maximizing the value we believe we can create by entering this segment of the institutional trader space."
"We are extremely excited about joining TradeStation," added Baraker. "The downfall of many financial firms in 2008 has created a rare opportunity for another custodian to enter and succeed in the prime brokerage market. William and I look forward to combining our experience and relationships built over the years with TradeStation's industry-leading technology to create a leading, powerful prime brokerage platform for the buy-side institutional trader."
Equity Market Neutral Strategy May Act as a Diversifier Across Market Cycles
Credit Suisse’s Quantitative Equities Group released a new whitepaper, “Equity Market Neutral: Diversifier Across Market Cycles,” outlining the potential benefits of an Equity Market Neutral strategy. The paper details the various types of Equity Market Neutral funds as well as the traits which have historically helped the best managers stand out.
Equity Market Neutral (EMN) funds have been generally successful in profiting from a variety of environments and have provided an effective counterbalance in diversified portfolios during periods of market volatility, such as following the Lehman Brothers bankruptcy in September 2008. The findings of the paper suggest that:
EMN is a potential diversifier given the low beta it showed to the 2008 equity markets in what was a historically volatile year
EMN has lower annualized volatility than other hedge fund strategies over the long term and has provided generally positive risk-adjusted returns over the last ten years
After the significant market dislocation experienced by quantitatively managed funds in August 2007, many managers increased the range of data used, including building proprietary data and risk models, in an effort to try to mitigate the effects of a future mass deleveraging event
In order to achieve diversification within the strategy, investors should seek managers who work with a range of uncorrelated factors and proprietary models in order to avoid crowded trades. This diversification of factors and models was a key element in the strategy’s ability to weather market volatility in 2008 and will likely remain the cornerstone of alpha generation for the strategy going forward in the near term
EMN managers see the post-Lehman landscape as opportunity-rich for the strategy because there is less capital being deployed as well as less competition in program and high-frequency trading.
Equity Market Neutral (EMN) funds have been generally successful in profiting from a variety of environments and have provided an effective counterbalance in diversified portfolios during periods of market volatility, such as following the Lehman Brothers bankruptcy in September 2008. The findings of the paper suggest that:
EMN is a potential diversifier given the low beta it showed to the 2008 equity markets in what was a historically volatile year
EMN has lower annualized volatility than other hedge fund strategies over the long term and has provided generally positive risk-adjusted returns over the last ten years
After the significant market dislocation experienced by quantitatively managed funds in August 2007, many managers increased the range of data used, including building proprietary data and risk models, in an effort to try to mitigate the effects of a future mass deleveraging event
In order to achieve diversification within the strategy, investors should seek managers who work with a range of uncorrelated factors and proprietary models in order to avoid crowded trades. This diversification of factors and models was a key element in the strategy’s ability to weather market volatility in 2008 and will likely remain the cornerstone of alpha generation for the strategy going forward in the near term
EMN managers see the post-Lehman landscape as opportunity-rich for the strategy because there is less capital being deployed as well as less competition in program and high-frequency trading.
23 Sept 2009
New Jersey Nets to Join Charity Event
The First Annual Capstone Global Markets Charity Day will support research focused on finding a cure to Batten Disease, a rare but fatal neurodegenerative disorder affecting children, October 1st, 2009.
The boutique derivatives broker dealer has committed to donating 100% of its net commissions that day to The Jasper Against Batten Fund. Jasper Duinstra is a 4-year old boy who was diagnosed with Batten Disease in March 2009, and has subsequently been experiencing seizures, deteriorating vision, limited vocabulary and paralysis in his legs.
After the urgency of finding a cure for Batten Disease was brought to the attention of representatives of The New Jersey Nets, the basketball team committed to joining Capstone Global Markets on October 1st to raise money for the cause.
The New Jersey Nets’ involvement at the fundraiser will be highlighted by the participation of Nets president Rod Thorn, general manager (and former New York Knicks player) Kiki Vandeweghe, the Nets dance team and the Nets mascot. Each will be involved in thanking clients for their business and discussing the importance of the cause.
“We created this event to bring public awareness of this devastating disease and the urgency of Jasper’s need for support,” said Paul Britton, CEO of Capstone Holdings Group, LLC. “We are pleased with the enthusiasm from our clients to join us in this mission to help Jasper and other children affected by Batten Disease. Capstone Global Markets is committed to helping charities dedicated to helping children.”
The newly created annual event is part of Capstone’s commitment to giving back to the global community regardless of the macro financial environment. Every year the hedge fund will select specific charities to donate to, each with the common goal of helping children.
Capstone Global Markets, LLC is an affiliate of Capstone Holdings Group, LLC. Capstone Global Markets is a boutique broker dealer specializing in volatility trading strategies.
The boutique derivatives broker dealer has committed to donating 100% of its net commissions that day to The Jasper Against Batten Fund. Jasper Duinstra is a 4-year old boy who was diagnosed with Batten Disease in March 2009, and has subsequently been experiencing seizures, deteriorating vision, limited vocabulary and paralysis in his legs.
After the urgency of finding a cure for Batten Disease was brought to the attention of representatives of The New Jersey Nets, the basketball team committed to joining Capstone Global Markets on October 1st to raise money for the cause.
The New Jersey Nets’ involvement at the fundraiser will be highlighted by the participation of Nets president Rod Thorn, general manager (and former New York Knicks player) Kiki Vandeweghe, the Nets dance team and the Nets mascot. Each will be involved in thanking clients for their business and discussing the importance of the cause.
“We created this event to bring public awareness of this devastating disease and the urgency of Jasper’s need for support,” said Paul Britton, CEO of Capstone Holdings Group, LLC. “We are pleased with the enthusiasm from our clients to join us in this mission to help Jasper and other children affected by Batten Disease. Capstone Global Markets is committed to helping charities dedicated to helping children.”
The newly created annual event is part of Capstone’s commitment to giving back to the global community regardless of the macro financial environment. Every year the hedge fund will select specific charities to donate to, each with the common goal of helping children.
Capstone Global Markets, LLC is an affiliate of Capstone Holdings Group, LLC. Capstone Global Markets is a boutique broker dealer specializing in volatility trading strategies.
22 Sept 2009
Hedge Fund Performance for August - Morningstar
Hedge funds' good fortunes persisted in August according to a preliminary hedge fund performance report from Morninstar.
"Hedge fund returns in August were driven by strong equity markets throughout the developed world," said Nadia Papagiannis, Morningstar hedge fund analyst. “Many hedge funds claim to be uncorrelated to the markets, but it appears that the rising tide of the market has lifted all boats, including hedge funds.”
The Morningstar 1000 Hedge Fund Index and the currency-hedged Morningstar MSCI Composite Hedge Fund Index rose 1.6% and 1.5%, respectively in August. For the year to date through August, these indexes increased 13.7% and 9.5%, respectively.
Developed countries' stock markets rallied for the sixth straight month on positive news in areas such as manufacturing. The Morningstar MSCI Developed Markets Hedge Fund Index appreciated in August by 1.9%, with the Morningstar MSCI Europe Equity Hedge Fund Index outperforming with an increase of 2.9%, as European stock markets hit 11-month highs on better-than-expected economic data in France and Germany. In the United States, continuing the year-long trend, smaller-company equities outperformed larger-cap stocks. The Morningstar US Small Cap Equity Hedge Fund Index rose 1.9% versus the Morningstar US Equity Hedge Fund Index's 1.4% rise.
Emerging market equities stagnated in August, with gains in Eastern Europe and certain other countries offset by steep losses in China. The Shanghai Composite Index experienced a severe sell-off, dropping nearly 7% on the last day of the month to its lowest level since May. The sell-off was fueled by fears that the Chinese government may curb stimulus measures. The Morningstar Emerging Markets Equity Hedge Fund Index rose 1.6%, as many funds in this index had lighter weightings in China than did the index.
The big winners in August were hedge funds that trade distressed securities. Credit markets, notably the more speculative ones, continued to rebound in August, though the pace of appreciation has slowed. Global corporate bond issuance broke 2007 levels in August, improving liquidity, and leveraged loan prices reached 12-month highs with some new issues. The Morningstar Distressed Securities Hedge Fund Index rallied 4.1%.
August returns and July asset flows for the Morningstar Hedge Fund Indexes are based on funds that reported as of Sept. 17, 2009. Returns for the Morningstar MSCI Hedge Fund Indexes are based on funds that reported August performance as of Sept. 14, 2009.
"Hedge fund returns in August were driven by strong equity markets throughout the developed world," said Nadia Papagiannis, Morningstar hedge fund analyst. “Many hedge funds claim to be uncorrelated to the markets, but it appears that the rising tide of the market has lifted all boats, including hedge funds.”
The Morningstar 1000 Hedge Fund Index and the currency-hedged Morningstar MSCI Composite Hedge Fund Index rose 1.6% and 1.5%, respectively in August. For the year to date through August, these indexes increased 13.7% and 9.5%, respectively.
Developed countries' stock markets rallied for the sixth straight month on positive news in areas such as manufacturing. The Morningstar MSCI Developed Markets Hedge Fund Index appreciated in August by 1.9%, with the Morningstar MSCI Europe Equity Hedge Fund Index outperforming with an increase of 2.9%, as European stock markets hit 11-month highs on better-than-expected economic data in France and Germany. In the United States, continuing the year-long trend, smaller-company equities outperformed larger-cap stocks. The Morningstar US Small Cap Equity Hedge Fund Index rose 1.9% versus the Morningstar US Equity Hedge Fund Index's 1.4% rise.
Emerging market equities stagnated in August, with gains in Eastern Europe and certain other countries offset by steep losses in China. The Shanghai Composite Index experienced a severe sell-off, dropping nearly 7% on the last day of the month to its lowest level since May. The sell-off was fueled by fears that the Chinese government may curb stimulus measures. The Morningstar Emerging Markets Equity Hedge Fund Index rose 1.6%, as many funds in this index had lighter weightings in China than did the index.
The big winners in August were hedge funds that trade distressed securities. Credit markets, notably the more speculative ones, continued to rebound in August, though the pace of appreciation has slowed. Global corporate bond issuance broke 2007 levels in August, improving liquidity, and leveraged loan prices reached 12-month highs with some new issues. The Morningstar Distressed Securities Hedge Fund Index rallied 4.1%.
August returns and July asset flows for the Morningstar Hedge Fund Indexes are based on funds that reported as of Sept. 17, 2009. Returns for the Morningstar MSCI Hedge Fund Indexes are based on funds that reported August performance as of Sept. 14, 2009.
Open Europe Hedge Fund Survey Findings
Based on two surveys of private equity managers and hedge fund managers, carried out during August 2009, Open Europe has published the most comprehensive study to date of the likely impact of the EU's proposed Alternative Investment Fund Managers (AIFM) Directive. Among the findings is that the hedge fund and private equity industries contribute €9 billion ($13.3 billion) in tax revenues to European Union (EU) governments.
Open Europe said that the €9 billion ($13.3 billion) tax contribution would be enough to fund the EU’s entire overseas aid budget for 12 years. The tax contribution also matches the value of the EU’s Cohesion and Aid Programmes for Poland and is just short of the subsidy that France receives each year under the EU’s Common Agricultural Policy.
“Alternative investment fund managers provide investments and create growth, jobs and more efficient markets across Europe,” the report said.
The survey also found that the UK hedge fund and private equity industries contribute about €6.1 billion ($9 billion) in tax revenues to HMRC. Open Europe said this would be enough to pay for more than 200,000 nurses, 45,000 hospital consultants or 165,000 teachers. In just two years, the tax revenues generated by alternative investment fund managers would be able to pay for the entire 2012 London Olympics, according to Open Europe. But if the tax revenues were to disappear, Open Europe said it would take a 20% increase in council tax in order to make up the shortfall.
The European Commission’s Alternative Investment Fund Managers (AIFM) directive would cost the hedge fund and private equity industries in the EU between €1.3 billion and €1.9 billion ($1.9 billion and $2.8 billion) in its first year, if implemented in its current form. The annual recurring cost would be between €689 million and €985 million ($1 billion and $1.4 billion). Respondents said their total compliance costs would increase by almost one-third on average.
The report commented: “Our surveys show that unless a range of amendments take place, the AIFM directive will impose substantial costs across the board, without offering sufficient benefits for the industry, investors and the wider economy… In a worst-case scenario, thousands of jobs and millions in tax revenues could be at stake.”
Open Europe received 121 responses from hedge fund managers and fund of fund managers representing $342 billion assets under management. Just over half of the respondents came from managers located in the UK, while over one-fifth came from the rest of the EU and around one-quarter from the rest of the world. Open Europe also received 41 responses from private equity managers primarily based in the UK, representing funds under management of over $204 billion.
The report can be downloaded from Open Europe’s website at http://www.openeurope.org.uk/research/aifmd.pdf.
Open Europe said that the €9 billion ($13.3 billion) tax contribution would be enough to fund the EU’s entire overseas aid budget for 12 years. The tax contribution also matches the value of the EU’s Cohesion and Aid Programmes for Poland and is just short of the subsidy that France receives each year under the EU’s Common Agricultural Policy.
“Alternative investment fund managers provide investments and create growth, jobs and more efficient markets across Europe,” the report said.
The survey also found that the UK hedge fund and private equity industries contribute about €6.1 billion ($9 billion) in tax revenues to HMRC. Open Europe said this would be enough to pay for more than 200,000 nurses, 45,000 hospital consultants or 165,000 teachers. In just two years, the tax revenues generated by alternative investment fund managers would be able to pay for the entire 2012 London Olympics, according to Open Europe. But if the tax revenues were to disappear, Open Europe said it would take a 20% increase in council tax in order to make up the shortfall.
The European Commission’s Alternative Investment Fund Managers (AIFM) directive would cost the hedge fund and private equity industries in the EU between €1.3 billion and €1.9 billion ($1.9 billion and $2.8 billion) in its first year, if implemented in its current form. The annual recurring cost would be between €689 million and €985 million ($1 billion and $1.4 billion). Respondents said their total compliance costs would increase by almost one-third on average.
The report commented: “Our surveys show that unless a range of amendments take place, the AIFM directive will impose substantial costs across the board, without offering sufficient benefits for the industry, investors and the wider economy… In a worst-case scenario, thousands of jobs and millions in tax revenues could be at stake.”
Open Europe received 121 responses from hedge fund managers and fund of fund managers representing $342 billion assets under management. Just over half of the respondents came from managers located in the UK, while over one-fifth came from the rest of the EU and around one-quarter from the rest of the world. Open Europe also received 41 responses from private equity managers primarily based in the UK, representing funds under management of over $204 billion.
The report can be downloaded from Open Europe’s website at http://www.openeurope.org.uk/research/aifmd.pdf.
21 Sept 2009
CME Partners With Hedge Funds in Restructuring Clearing Services
CME Group is restructuring its credit default swap (CDS) with hedge fund Citadel Investment Group as a strategic program targeted at providing clearing-only services for the nearly $27 trillion CDS market.
Key features developed as part of the joint effort with Citadel, which was known as CMDX, will be carried forward in the clearing-only service, including state-of-the-art trade booking and legacy trade migration facilities.
"We remain committed to bringing stability and transparency to the CDS market, while further enhancing confidence in the financial marketplace," said Terry Duffy, Executive Chairman, CME Group. "Over the past several months, we have been working closely with all market participants. Both buy-side and sell-side participants have expressed an interest in continuing to execute their CDS transactions the same as they do today, but with the added benefit of central counterparty clearing."
Citadel remains a founding member of the newly restructured CDS initiative. The other buy-side founding members are: AllianceBernstein, BlackRock, BlueMountain Capital Management, the D. E. Shaw group and PIMCO. A number of leading sell-side participants are in the process of becoming founding members. CME Group plans to announce the launch of the clearing initiative's pilot program in the weeks ahead. CME's clearing solution builds on the existing over-the-counter (OTC) market.
Key features developed as part of the joint effort with Citadel, which was known as CMDX, will be carried forward in the clearing-only service, including state-of-the-art trade booking and legacy trade migration facilities.
"We remain committed to bringing stability and transparency to the CDS market, while further enhancing confidence in the financial marketplace," said Terry Duffy, Executive Chairman, CME Group. "Over the past several months, we have been working closely with all market participants. Both buy-side and sell-side participants have expressed an interest in continuing to execute their CDS transactions the same as they do today, but with the added benefit of central counterparty clearing."
Citadel remains a founding member of the newly restructured CDS initiative. The other buy-side founding members are: AllianceBernstein, BlackRock, BlueMountain Capital Management, the D. E. Shaw group and PIMCO. A number of leading sell-side participants are in the process of becoming founding members. CME Group plans to announce the launch of the clearing initiative's pilot program in the weeks ahead. CME's clearing solution builds on the existing over-the-counter (OTC) market.
10-Year Mark for Mooring's Flagship Hedge Fund
The second quarter of 2009 marked the 10th year of operation for Washington, DC-based hedge fund, Mooring Capital Fund, which delivered a quarterly compounded return of 12.40% per year.
“Our flagship Mooring Capital Fund has provided a consistent record of performance to investors since inception 10 years ago." John Jacquemin, founder and President of Mooring Financial Corporation, commented,"We are very pleased with the fund’s sound long-term performance, demonstrated by a total return of 242.51 percent over the last decade.”
For the same period, the S&P 500 posted an annual compounded return of -1.70% and the Credit Suisse/Tremont Hedge Fund Index reported a quarterly compounded annual return of 6.89 %.
Mooring Capital Fund acquires and manages distressed, sub-performing and performing commercial loans. The portfolio is diversified by both asset type and geography. Mooring Capital Fund also takes long and short equity positions in the financial and real estate markets for up to 20% of its assets. As of June 30, 2009 Mooring Capital Fund had over $62 million in total gross assets.
“Our flagship Mooring Capital Fund has provided a consistent record of performance to investors since inception 10 years ago." John Jacquemin, founder and President of Mooring Financial Corporation, commented,"We are very pleased with the fund’s sound long-term performance, demonstrated by a total return of 242.51 percent over the last decade.”
For the same period, the S&P 500 posted an annual compounded return of -1.70% and the Credit Suisse/Tremont Hedge Fund Index reported a quarterly compounded annual return of 6.89 %.
Mooring Capital Fund acquires and manages distressed, sub-performing and performing commercial loans. The portfolio is diversified by both asset type and geography. Mooring Capital Fund also takes long and short equity positions in the financial and real estate markets for up to 20% of its assets. As of June 30, 2009 Mooring Capital Fund had over $62 million in total gross assets.
Subscribe to:
Posts (Atom)