The U.S. Trust Survey Of Affluent Americans polled the top tier of wealthiest Americans about their economic outlook, investment behavior, wealth management, philanthropy and intergenerational wealth issues.
A majority of the wealthy people surveyed believe hedge funds are good vehicles to provide strong returns and hedge market risks. Still, about three-quarters of this group say a good hedge fund is difficult to find and just as difficult to investigate.
However, those surveyed believe that the U.S. stock market is becoming riskier, and many are shifting to international equities. Many wealthy people expect to get bigger gains overseas than they do here in the U.S., with an expected average annual return of 9.66% in international equities versus 8.85% in the U.S. markets.
The Survey Of Affluent Americans constitutes of Americans with an investable net worth greater than $5 million, not including primary residence. In addition, included in this study is a special sub-sample of ultra high net worth Americans with total assets of $25 million or more.
In the report, the U.S. Trust says 74% of wealthy people believe that the budget deficit will affect the economy over the long term. This, they believe, will spill into the international arena as well, and leads them to worry about the U.S.'s role in international finance. With recent market events in China setting off a global ripple, as well as dollar lows, there is certainly ample precedent for their concerns.
And the survey indicates that these concerns aren't limited to the near term. Most wealthy people say that the next generation will have a more difficult time financially. Seventy-two percent of respondents worry that environmental issues will require more government spending and that taxes will rise significantly over the next few years. As well, they believe high taxes will reduce the value of their estates.
2 May 2007
Fauchier Partners Launches Special Situations Fund Of Hedge Funds
Fauchier Partners announced the launch of the Jubilee Special Situations Fund (JSSF), which will provide investors with returns more commonly associated with longer term and less liquid investments. JSSF was launched on 1 April with approximately $50 million committed. It will initially be open for investment until June 2007.
The fund of hedge funds has been designed as a vehicle for investors who are able to commit funds for longer periods of time and has a target return of LIBOR + 8%. The London Interbank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow US dollars in the London money market. Like the US treasury the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Its portfolio consists of hedge funds investing in the debt and equity of private and publicly-listed companies, with a focus on distressed debt, direct lending and structured public and private equity. The balance will be invested in more traditional value-based investments.
Fauchier Partners, founded in 1994, is a specialist London-based firm, which manages a variety of funds of hedge funds and also advises a number of listed closed-end funds of hedge fund vehicles. It has the equivalent of approximately $4.7 billion under management.
The fund of hedge funds has been designed as a vehicle for investors who are able to commit funds for longer periods of time and has a target return of LIBOR + 8%. The London Interbank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow US dollars in the London money market. Like the US treasury the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Its portfolio consists of hedge funds investing in the debt and equity of private and publicly-listed companies, with a focus on distressed debt, direct lending and structured public and private equity. The balance will be invested in more traditional value-based investments.
Fauchier Partners, founded in 1994, is a specialist London-based firm, which manages a variety of funds of hedge funds and also advises a number of listed closed-end funds of hedge fund vehicles. It has the equivalent of approximately $4.7 billion under management.
1 May 2007
$99 Billion Company Hires Hedge Fund Manager
Nikko Asset Management Co., Ltd. announced the appointment of hedge fund manager, Thomas Juterbock, as Senior Portfolio Manager at Nikko Alternative Asset Management Inc., a New York-based subsidiary of Nikko AM Tokyo.
Juterbock said, "I am thrilled to join the Nikko AM team. With the line between 'traditional' and 'alternative' investment blurring and with the shifting demographics of investment flows, international asset management is at a very interesting crossroads. I see Nikko AM as uniquely positioned to capitalize upon these trends and I look forward to working with the Nikko AM team to help realize the full potential of this new opportunity set."
Juterbock will be a member of Nikko AM's Global Investment Committee and will report to Masayuki Ishihara, Global Head of Fixed Income. Prior to joining Nikko AM, Juterbock acted as founder, principal owner, CEO and CIO of Fairstream Capital hedge fund management group. Juterbock has over 20 years of experience in trading and risk management at Morgan Stanley, where he was a Managing Director from January 1990 to May 2005.
At Nikko AM, Juterbock and his Fairstream team of six will seek ways to employ Fairstream's global macro investment process to the broader array of Nikko AM products, while helping to expand Nikko AM's product offerings worldwide.
Nikko AM is a leading asset management group headquartered in Japan. Established over 45 years ago, the company has $99.1 billion in assets under management, its investment trusts are distributed through a network of approximately 200 partner securities companies and banks. Nikko AM employs over 550 people in Tokyo, New York, London and Singapore.
Juterbock said, "I am thrilled to join the Nikko AM team. With the line between 'traditional' and 'alternative' investment blurring and with the shifting demographics of investment flows, international asset management is at a very interesting crossroads. I see Nikko AM as uniquely positioned to capitalize upon these trends and I look forward to working with the Nikko AM team to help realize the full potential of this new opportunity set."
Juterbock will be a member of Nikko AM's Global Investment Committee and will report to Masayuki Ishihara, Global Head of Fixed Income. Prior to joining Nikko AM, Juterbock acted as founder, principal owner, CEO and CIO of Fairstream Capital hedge fund management group. Juterbock has over 20 years of experience in trading and risk management at Morgan Stanley, where he was a Managing Director from January 1990 to May 2005.
At Nikko AM, Juterbock and his Fairstream team of six will seek ways to employ Fairstream's global macro investment process to the broader array of Nikko AM products, while helping to expand Nikko AM's product offerings worldwide.
Nikko AM is a leading asset management group headquartered in Japan. Established over 45 years ago, the company has $99.1 billion in assets under management, its investment trusts are distributed through a network of approximately 200 partner securities companies and banks. Nikko AM employs over 550 people in Tokyo, New York, London and Singapore.
100 Women in Hedge Funds Awards
100 Women in Hedge Funds is today presenting their 5th Anniversary event, Raising Capital: Keys to success and new trends in the industry, in Stamford, CT. The event is hosted by UBS Investment Bank and All Bar None.
The speaker, Bill Brown, UBS Head and Chief Investment Officer, will discuss the role of raising capital for hedge funds and the challenges in the current environment. The invited speakers have experience in successfully raising capital for hedge funds and knowledge of the market.
100 Women in Hedge Funds offers events in numerous cities across the globe. On May 2 they are hosting an Inaugural Networking Event in Geneva and also coming up is the inaugural 100 Women in Hedge Funds London Gala, which will be held June 13, 2007 at the Royal Courts of Justice, London for benefit of The Prince's Trust.
Hedge fund managers Gay Huey Evans of Tribeca Global Management, and Michael Hintze of CQS, will be honored the Gala.Huey Evans will receive the 100 Women in Hedge Funds' European Industry Leadership award. Huey Evans is President of Tribeca Global Management (Europe), Citi's Alternative Investment's hedge fund platform. She has helped build out Tribeca into a premier multi-strategy hedge fund platform within Citigroup.
Hintze, who is Founder and Chief Executive Officer of CQS, will receive the 100 Women in Hedge Funds' European Effecting Change award for his philanthropic activity. Hintze established CQS in 1999 and the firm, one of the largest hedge funds in Europe, now manages over US$6 billion. Over the last several years, the Hintze Family Charitable Foundation has made awards to educational and health programs, and the Arts, including The Prince's Trust, The Prince's Foundation, Trinity Hospice, The Evelina Children's Trust, the Victoria and Albert Museum's Sculpture Galleries, the Vatican Museums' Pauline Chapel and the University of Sydney.
The speaker, Bill Brown, UBS Head and Chief Investment Officer, will discuss the role of raising capital for hedge funds and the challenges in the current environment. The invited speakers have experience in successfully raising capital for hedge funds and knowledge of the market.
100 Women in Hedge Funds offers events in numerous cities across the globe. On May 2 they are hosting an Inaugural Networking Event in Geneva and also coming up is the inaugural 100 Women in Hedge Funds London Gala, which will be held June 13, 2007 at the Royal Courts of Justice, London for benefit of The Prince's Trust.
Hedge fund managers Gay Huey Evans of Tribeca Global Management, and Michael Hintze of CQS, will be honored the Gala.Huey Evans will receive the 100 Women in Hedge Funds' European Industry Leadership award. Huey Evans is President of Tribeca Global Management (Europe), Citi's Alternative Investment's hedge fund platform. She has helped build out Tribeca into a premier multi-strategy hedge fund platform within Citigroup.
Hintze, who is Founder and Chief Executive Officer of CQS, will receive the 100 Women in Hedge Funds' European Effecting Change award for his philanthropic activity. Hintze established CQS in 1999 and the firm, one of the largest hedge funds in Europe, now manages over US$6 billion. Over the last several years, the Hintze Family Charitable Foundation has made awards to educational and health programs, and the Arts, including The Prince's Trust, The Prince's Foundation, Trinity Hospice, The Evelina Children's Trust, the Victoria and Albert Museum's Sculpture Galleries, the Vatican Museums' Pauline Chapel and the University of Sydney.
30 Apr 2007
Sal. Oppenheim To Launch Spin-Off Hedge Fund
Sal. Oppenheim Jr. & Cie, one of Europe's largest private banks is moving towards alternative investments and hedge funds. Oppenheim said it wants to spin off a hedge fund from its proprietary trading book. The bank will seed the hedge fund with its own cash but expects to raise as much as €500 million ($680 million).
Oppenheim already has launched the Figaro Currency Fund, a Dublin domiciled hedge fund, as another example of success. It combines the bank's currency expertise with a modern absolute-return approach. The fund aims to achieve stable above-average returns (7% - 10% p.a.) with low correlation to stocks and bonds. The Investment process of the hedge fund is a disciplined analytical approach combining macro-economic analysis, geopolitical trends, technical indicators and general market sentiment towards investing in currencies.
Headquartered in the bank's offices in Zurich, the new hedge fund will will begin trading in the third quarter, taking long and short positions in small to mid size companies, investing almost two-thirds of the book in firms from German-speaking countries, it said. The rest will be invested primarily in other Western European countries.
Oppenheim today is one of Europe‘s leading private banks. Since the company‘s founding in 1789, the Cologne private bankers have been open to new developments in industry, business, and new financial models.
Oppenheim already has launched the Figaro Currency Fund, a Dublin domiciled hedge fund, as another example of success. It combines the bank's currency expertise with a modern absolute-return approach. The fund aims to achieve stable above-average returns (7% - 10% p.a.) with low correlation to stocks and bonds. The Investment process of the hedge fund is a disciplined analytical approach combining macro-economic analysis, geopolitical trends, technical indicators and general market sentiment towards investing in currencies.
Headquartered in the bank's offices in Zurich, the new hedge fund will will begin trading in the third quarter, taking long and short positions in small to mid size companies, investing almost two-thirds of the book in firms from German-speaking countries, it said. The rest will be invested primarily in other Western European countries.
Oppenheim today is one of Europe‘s leading private banks. Since the company‘s founding in 1789, the Cologne private bankers have been open to new developments in industry, business, and new financial models.
Dresdner Kleinwort Announces New Head for US based Hedge Funds
Dresdner Kleinwort, the investment banking division of Dresdner Bank AG announced the appointment of Chris Baildon as Head of Equities Distribution for US based Hedge Funds. Baildon joins as a Managing Director and will report to Mark Small, Head of Equities in the US and Martin Newson, Head of the Hedge Fund Solutions Group based in London.
Baildon previously worked at UBS where he specialized in the coverage of hedge funds as Head of European Sales Trading. Martin Newson, Head of Hedge Fund Solutions said, "Chris is an important addition to our team and the ongoing development of our of hedge fund offering. The European markets are extremely significant to US based hedge fund clients, perhaps now more than ever, and the appointment of Chris further improves our ability to offer the funds the very best levels of servicing."
According to reports, Dresdner Kleinwort plans to double the number of hedge fund specialists in its investment bank over the next three years, aiming to increase hedge fund sales from 10-15% of fees and commissions to 25%.
The bank currently employs close to 50 staff focused on hedge funds across its corporate finance, equities, fixed income, currencies and derivatives divisions, and plans to double this to 100. Newson, hired last November to set up the bank’s hedge fund solutions group, said the new appointments would be spread over three years.
Baildon previously worked at UBS where he specialized in the coverage of hedge funds as Head of European Sales Trading. Martin Newson, Head of Hedge Fund Solutions said, "Chris is an important addition to our team and the ongoing development of our of hedge fund offering. The European markets are extremely significant to US based hedge fund clients, perhaps now more than ever, and the appointment of Chris further improves our ability to offer the funds the very best levels of servicing."
According to reports, Dresdner Kleinwort plans to double the number of hedge fund specialists in its investment bank over the next three years, aiming to increase hedge fund sales from 10-15% of fees and commissions to 25%.
The bank currently employs close to 50 staff focused on hedge funds across its corporate finance, equities, fixed income, currencies and derivatives divisions, and plans to double this to 100. Newson, hired last November to set up the bank’s hedge fund solutions group, said the new appointments would be spread over three years.
27 Apr 2007
Hedge Fund Ritchie Capital To Sell Flagship Fund
Hedge Fund Ritchie Capital Management, as part of a liquidation plan, is selling a significant portion of its assets in its Multi-Strategy Fund for $1 billion to New York City-based Reservoir Capital Group.
Ritchie Capital, which oversees about $2.8 billion including borrowed money, will liquidate its Multistrategy Global Fund and return cash to investors. The company told investors that the Ritchie Capital Management flagship multi-strategy hedge fund had about $730 million in assets in mid-2006.
Thane Ritchie, founder of Ritchie Capital said in a statement, "We are pleased that investors have approved this transaction as it is a significant first step in meeting our stated objectives for the Multi-Strategy Fund - preserving the value of its assets and returning capital to redeeming investors,.....However, we recognize that we need to continue to work diligently and intelligently to completely fulfill our commitment to all our investors."
After facing an extended period of under performance and investor demands for capital returns, the hedge fund has been in exclusive talks with Reservoir and Coller for several months to buy the flagship fund, sources have said. The sale is the first of what Ritchie Capital Management expects will be a series of transactions for the remainder of the fund’s assets. At the end of 2004, Ritchie lost more than 2% of its flagship fund and decided to alter it to a traditional, more liquid one to one that incorporates private equity and longer-term investments.
The deal with Reservoir has been approved by Ritchie investors launching a new fund called Rhone Holdings, L.P., which will purchase the assets in part with capital invested by Reservoir funds. Ritchie will manage this new entity, the firm explained in a statement.
Reservoir Capital is a private investment firm with about $3 billion under management. Ritchie Capital Management is headquartered in Geneva, Illinois with offices in New York, Chicago, London, Bermuda, Hong Kong, and Menlo Park, California.
Ritchie Capital, which oversees about $2.8 billion including borrowed money, will liquidate its Multistrategy Global Fund and return cash to investors. The company told investors that the Ritchie Capital Management flagship multi-strategy hedge fund had about $730 million in assets in mid-2006.
Thane Ritchie, founder of Ritchie Capital said in a statement, "We are pleased that investors have approved this transaction as it is a significant first step in meeting our stated objectives for the Multi-Strategy Fund - preserving the value of its assets and returning capital to redeeming investors,.....However, we recognize that we need to continue to work diligently and intelligently to completely fulfill our commitment to all our investors."
After facing an extended period of under performance and investor demands for capital returns, the hedge fund has been in exclusive talks with Reservoir and Coller for several months to buy the flagship fund, sources have said. The sale is the first of what Ritchie Capital Management expects will be a series of transactions for the remainder of the fund’s assets. At the end of 2004, Ritchie lost more than 2% of its flagship fund and decided to alter it to a traditional, more liquid one to one that incorporates private equity and longer-term investments.
The deal with Reservoir has been approved by Ritchie investors launching a new fund called Rhone Holdings, L.P., which will purchase the assets in part with capital invested by Reservoir funds. Ritchie will manage this new entity, the firm explained in a statement.
Reservoir Capital is a private investment firm with about $3 billion under management. Ritchie Capital Management is headquartered in Geneva, Illinois with offices in New York, Chicago, London, Bermuda, Hong Kong, and Menlo Park, California.
26 Apr 2007
VanthagePoint Joins With G Squared to Launch Fund Of Funds
G Squared Group Asset Management has teamed up with hedge fund services provider VanthedgePoint Group LL by purchasing a 10% minority stake and is launching a fund of hedge fund comprised solely of its emerging manager clients.
“By partnering with VanthedgePoint our idea is to greatly reduce the number one risk regarding investments in emerging managers: operational risk,” said Gualtiero Giori, managing partner of G Squared. The new vehicle, White Hill Fund, will invest exclusively in early-stage emerging hedge fund clients of VanthedgePoint Securities, the broker/dealer arm of VanthedgePoint Group. The fund will commence operations on May 1.
VanthedgePoint serves as a prime broker dealer, providing stock trading clearance and loans to small to midsize long/short equity hedge funds, with assets of over $1 billion, launching a fund of emerging hedge funds makes sense because larger pension funds typically have restrictions on investing more than 10% of their capital in any one fund.
"This allows us to offer our clients not only the potential outperformance typically demonstrated by emerging managers, but also a structure whereby they can track new talent while avoiding concentration risk and minimizing non-investment due-diligence work." said Giori.
“By partnering with VanthedgePoint our idea is to greatly reduce the number one risk regarding investments in emerging managers: operational risk,” said Gualtiero Giori, managing partner of G Squared. The new vehicle, White Hill Fund, will invest exclusively in early-stage emerging hedge fund clients of VanthedgePoint Securities, the broker/dealer arm of VanthedgePoint Group. The fund will commence operations on May 1.
VanthedgePoint serves as a prime broker dealer, providing stock trading clearance and loans to small to midsize long/short equity hedge funds, with assets of over $1 billion, launching a fund of emerging hedge funds makes sense because larger pension funds typically have restrictions on investing more than 10% of their capital in any one fund.
"This allows us to offer our clients not only the potential outperformance typically demonstrated by emerging managers, but also a structure whereby they can track new talent while avoiding concentration risk and minimizing non-investment due-diligence work." said Giori.
New Jersey To Invest in Hedge Funds of Funds
According to a due diligence memorandum presented to the New Jersey State Investment Council by director William Clark, NJ has a proposed $100 million investment in each of two Blackstone funds of funds strategies, Pacific Opportunities Strategy and an Emerging Markets Strategy to handle new hedge fund and private equity allocations.
The NJ pension system is also aiming at allocating a total of $625 million to two funds of hedge funds and three single-strategy managers, and a total of $325 million to four private equity funds, according to a due diligence memo penned by director William Clark to the system’s investment council.
Also in the investment proposal, NJ is looking to make a $150 million commitment to a fund of funds to be managed by Protégé Partners, the New York-based firm currently manages $2.2 billion and invests in smaller, niche funds and also seeds managers. The pension system is also allocating $150 million to Farallon Capital Institutional Partners, a multi-strategy fund, and $50 million to Omega Overseas Partners Ltd Class B, a long/short equity fund.
New Jersey’s proposed direct investments in single-strategy managers include a $75 million commitment to the Ascend Partners Fund II, which is a 1.5x levered version of the firm’s fundamental equity long/short strategy.
In private equity, NJ is making a $100 million commitment to Avenue Special Situations Fund V and a $50 million commitment to KPS Special Situations Fund III. Both funds focus on U.S. stressed and distressed opportunities. Finally, a $100 million commitment is being made to MatlinPatterson Global Opportunities Partners, a global distressed fund, and a $75 million commitment to Thomas H. Lee Equity Partners VI, a growth-oriented buyout fund.
The NJ pension system is also aiming at allocating a total of $625 million to two funds of hedge funds and three single-strategy managers, and a total of $325 million to four private equity funds, according to a due diligence memo penned by director William Clark to the system’s investment council.
Also in the investment proposal, NJ is looking to make a $150 million commitment to a fund of funds to be managed by Protégé Partners, the New York-based firm currently manages $2.2 billion and invests in smaller, niche funds and also seeds managers. The pension system is also allocating $150 million to Farallon Capital Institutional Partners, a multi-strategy fund, and $50 million to Omega Overseas Partners Ltd Class B, a long/short equity fund.
New Jersey’s proposed direct investments in single-strategy managers include a $75 million commitment to the Ascend Partners Fund II, which is a 1.5x levered version of the firm’s fundamental equity long/short strategy.
In private equity, NJ is making a $100 million commitment to Avenue Special Situations Fund V and a $50 million commitment to KPS Special Situations Fund III. Both funds focus on U.S. stressed and distressed opportunities. Finally, a $100 million commitment is being made to MatlinPatterson Global Opportunities Partners, a global distressed fund, and a $75 million commitment to Thomas H. Lee Equity Partners VI, a growth-oriented buyout fund.
25 Apr 2007
Hedge Funds & The Uranium "Arms Race"
Corrected on the 26th of April
Several hedge funds have been buying largely into the processed uranium market, causing most of the new demand for uranium and helping drive up the price more than fourfold within the past year.
Some hedge funds that have been reported as buyers are Adit Capital, who according to reports, bought up millions of pounds for as little as $20 per pound. Citadel Investment Group assumed control of 2.3 millions pounds through its stake in an IPO, and GLG Partners and Fortress Investment Group have set up teams to begin trading uranium.
There is no futures market for uranium and a declining supply of the product, coupled with an increase of outside investors, such as hedge funds, has led the Nuclear Energy Institute to suggest allowing only end users of uranium to purchase it. It is mined by only by a few companies such as Canada's Cameco Corp.
Uranium Participation Corporation is a closed end mutual fund that buys and holds uranium, making it one of the only ways for an average investor to buy directly into uranium. Its documents can be found on SEDAR and regarding transparency, the fund publishes its NAV every month on its website, disclosing what it has paid for uranium. It is exchange traded on the Toronto Stock Exchange by the symbol is U. There are also warrents on U for those who are inclined to more aggressive positioning.
A newly created uranium futures contract will begin trading on the Nymex electronic system on May 7, according to their VP of marketing Randy Warsager. Most of the Nymex products are traded on the Chicago Mercantile Exchange Globex system under a joint agreement between the two markets.
The Wall Street Journal has called hedge funds' involvement in the market “a new type of nuclear-arms race.” Hedge fund and other investors hold around 20 mm lbs of uranium equivalent, according to David Hard of NukemInc.com, that's about 20% of one year's mine production.
Several hedge funds have been buying largely into the processed uranium market, causing most of the new demand for uranium and helping drive up the price more than fourfold within the past year.
Some hedge funds that have been reported as buyers are Adit Capital, who according to reports, bought up millions of pounds for as little as $20 per pound. Citadel Investment Group assumed control of 2.3 millions pounds through its stake in an IPO, and GLG Partners and Fortress Investment Group have set up teams to begin trading uranium.
There is no futures market for uranium and a declining supply of the product, coupled with an increase of outside investors, such as hedge funds, has led the Nuclear Energy Institute to suggest allowing only end users of uranium to purchase it. It is mined by only by a few companies such as Canada's Cameco Corp.
Uranium Participation Corporation is a closed end mutual fund that buys and holds uranium, making it one of the only ways for an average investor to buy directly into uranium. Its documents can be found on SEDAR and regarding transparency, the fund publishes its NAV every month on its website, disclosing what it has paid for uranium. It is exchange traded on the Toronto Stock Exchange by the symbol is U. There are also warrents on U for those who are inclined to more aggressive positioning.
A newly created uranium futures contract will begin trading on the Nymex electronic system on May 7, according to their VP of marketing Randy Warsager. Most of the Nymex products are traded on the Chicago Mercantile Exchange Globex system under a joint agreement between the two markets.
The Wall Street Journal has called hedge funds' involvement in the market “a new type of nuclear-arms race.” Hedge fund and other investors hold around 20 mm lbs of uranium equivalent, according to David Hard of NukemInc.com, that's about 20% of one year's mine production.
24 Apr 2007
UK Treasury Examing Pooling EU Hedge Fund Information
Speaking at a Financial Services Authority conference, UK Treasury minister Edward Balls said he planned to seek the views of other European countries about pooling information and working together on European international regulatory issues concerning hedge funds.
This could signal that the British government is again taking a closer look at hedge fund regulation। He said in his speech, "The first thing to stress is the consensus over the positive role that hedge funds play - providing liquidity, helping markets price assets more accurately and driving financial innovation."
But, "authorities should be vigilant regarding any of the potential risks posed by hedge funds. As the location for around 90% of the EU's hedge fund management business, the UK - and in particular the FSA - has thought hard about getting the regulatory approach to hedge funds right."
Balls said a six-monthly survey of banks' exposures to hedge funds through derivatives, secured financing and prime brokerage, could be enhanced if other regulators shared information about their own banks' exposures to the hedge fund industry. "Following discussion with the FSA, we believe that the quality of prudential supervision of hedge fund activity would be enhanced if there were greater co-operation between the key regulators," he said.
The Treasury minister said he recognized that some experts feared hedge funds were taking increasing risks to generate high returns, but he rejected a more heavy-handed approach to regulation. He also confirmed that the government is looking at issuing shariah-compliant debt, in a move to position London as a global center for Islamic finance and build bridges with the Muslim community.
This could signal that the British government is again taking a closer look at hedge fund regulation। He said in his speech, "The first thing to stress is the consensus over the positive role that hedge funds play - providing liquidity, helping markets price assets more accurately and driving financial innovation."
But, "authorities should be vigilant regarding any of the potential risks posed by hedge funds. As the location for around 90% of the EU's hedge fund management business, the UK - and in particular the FSA - has thought hard about getting the regulatory approach to hedge funds right."
Balls said a six-monthly survey of banks' exposures to hedge funds through derivatives, secured financing and prime brokerage, could be enhanced if other regulators shared information about their own banks' exposures to the hedge fund industry. "Following discussion with the FSA, we believe that the quality of prudential supervision of hedge fund activity would be enhanced if there were greater co-operation between the key regulators," he said.
The Treasury minister said he recognized that some experts feared hedge funds were taking increasing risks to generate high returns, but he rejected a more heavy-handed approach to regulation. He also confirmed that the government is looking at issuing shariah-compliant debt, in a move to position London as a global center for Islamic finance and build bridges with the Muslim community.
$1.1 Billion Hedge Fund Deal Goes to Northern Trust
Chicago based Northern Trust has been selected to provide fund administration services to the 816 million Euro (approximately $1.1 billion) hedge fund, BH Macro Limited.
The BH Macro Limited fund, based on the British isle of Guernsey, is one of the first single strategy hedge funds to obtain a secondary listing on the London Stock Exchange under the recently revised listing rules in Chapter 14 of the Financial Services Authority regulations. The single strategy hedge fund will invest in the Brevan Howard Master Fund, a $12 billion hedge fund with a predominant exposure to global fixed income and foreign exchange markets.
Sue Baines of Northern Trust said "We have a long history of servicing more traditional, closed-ended funds with listings in a variety of locations, in addition to being a leading administrator of alternative assets. This combination of expertise has allowed us to support many asset managers taking advantage of the increasing flexibility to list a range of alternative funds, in a variety of domiciles, whether these are private equity vehicles on Euronext, or hedge funds and funds of hedge funds in London. We are delighted to be working with Brevan Howard and look forward to continuing to grow our hedge fund and fund of funds client base."
With $3.8 trillion in assets under management, Northern Trust Corporation is a provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide.
The BH Macro Limited fund, based on the British isle of Guernsey, is one of the first single strategy hedge funds to obtain a secondary listing on the London Stock Exchange under the recently revised listing rules in Chapter 14 of the Financial Services Authority regulations. The single strategy hedge fund will invest in the Brevan Howard Master Fund, a $12 billion hedge fund with a predominant exposure to global fixed income and foreign exchange markets.
Sue Baines of Northern Trust said "We have a long history of servicing more traditional, closed-ended funds with listings in a variety of locations, in addition to being a leading administrator of alternative assets. This combination of expertise has allowed us to support many asset managers taking advantage of the increasing flexibility to list a range of alternative funds, in a variety of domiciles, whether these are private equity vehicles on Euronext, or hedge funds and funds of hedge funds in London. We are delighted to be working with Brevan Howard and look forward to continuing to grow our hedge fund and fund of funds client base."
With $3.8 trillion in assets under management, Northern Trust Corporation is a provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide.
23 Apr 2007
Hedge Fund ''Landmine'' Conference
Thompson Hine LLP, a leading national business law firm, will present a seminar to help hedge fund organizers, managers and advisors identify and avoid common pitfalls. “Fiduciary Landmines in Organizing and Operating Hedge Funds” is a free seminar open to hedge fund industry professionals and will be held at the Palmer House Hilton in Chicago on May 17 from noon to 4:15 p.m. CDT.
Hedge Fund Innovator Joel Press of Morgan Stanley Will Deliver Keynote: “Emerging Trends in a Newly Scrutinized Industry”
The seminar focuses on how to identify and resolve fiduciary issues in structuring and operating hedge funds. The program is structured to provide valuable insight into the obligations of alternative asset managers. It is geared to hedge fund managers, compliance professionals and vendors who provide services to the hedge fund industry.
In addition to Joel Press of Morgan Stanley, other speakers and panelists will include Howard Altman, Co-Managing Principal at Rothstein Kass, a leading accounting firm for hedge funds; Scott Richter, Managing Director and Associate General Counsel, JPMorgan; Sam Weiser, former Managing Director, Citigroup; Douglas Squassoni, Vice President and Senior Counsel, Mellon Bank; Aaron Vermut, Chief Operating Officer, Merlin Securities; and Thomas Feher, Partner, Thompson Hine.
“The hedge fund industry is at a crossroads, and confusion about the potential for increased oversight is making it an ongoing challenge for the industry to anticipate emerging issues,” said Richard Heller, a partner in the investment management practice at Thompson Hine in New York, who is organizing the conference. “This seminar will help put things into perspective for current hedge fund managers, as well as those considering establishing alternative investment funds. Fiduciary landmines abound. Knowing where and how to deal with them is key.”
Conference topics include:
* “Issues of Interest to Alternative Asset Fund Managers”
* Luncheon Keynote: “Emerging Trends in a Newly Scrutinized Industry”
* “Issues to Consider When Structuring a Hedge Fund and Soliciting Investors”
* “Fiduciary Aspects of Running a Hedge Fund”
While hedge funds are no longer required to register with the SEC, the rules that govern how brokers use their “soft dollar” commissions are designed to prevent abuses, such as payment for meals, rent, travel and other expenses not directly attributable to investment decisions. Additionally, the SEC is reviewing a change to the accredited investor rule which may have implications for the hedge fund industry.
The seminar is free and open to hedge fund industry professionals. Registry online by May 7.
Thompson Hine’s May 17 hedge fund landmine seminar will be followed at 5:30 p.m. by The Fifth Annual “Open Your Heart to Children” benefit held by the Chicago chapter of Hedge Funds Care at the Millennium Park Rooftop Terrace.
Hedge Fund Innovator Joel Press of Morgan Stanley Will Deliver Keynote: “Emerging Trends in a Newly Scrutinized Industry”
The seminar focuses on how to identify and resolve fiduciary issues in structuring and operating hedge funds. The program is structured to provide valuable insight into the obligations of alternative asset managers. It is geared to hedge fund managers, compliance professionals and vendors who provide services to the hedge fund industry.
In addition to Joel Press of Morgan Stanley, other speakers and panelists will include Howard Altman, Co-Managing Principal at Rothstein Kass, a leading accounting firm for hedge funds; Scott Richter, Managing Director and Associate General Counsel, JPMorgan; Sam Weiser, former Managing Director, Citigroup; Douglas Squassoni, Vice President and Senior Counsel, Mellon Bank; Aaron Vermut, Chief Operating Officer, Merlin Securities; and Thomas Feher, Partner, Thompson Hine.
“The hedge fund industry is at a crossroads, and confusion about the potential for increased oversight is making it an ongoing challenge for the industry to anticipate emerging issues,” said Richard Heller, a partner in the investment management practice at Thompson Hine in New York, who is organizing the conference. “This seminar will help put things into perspective for current hedge fund managers, as well as those considering establishing alternative investment funds. Fiduciary landmines abound. Knowing where and how to deal with them is key.”
Conference topics include:
* “Issues of Interest to Alternative Asset Fund Managers”
* Luncheon Keynote: “Emerging Trends in a Newly Scrutinized Industry”
* “Issues to Consider When Structuring a Hedge Fund and Soliciting Investors”
* “Fiduciary Aspects of Running a Hedge Fund”
While hedge funds are no longer required to register with the SEC, the rules that govern how brokers use their “soft dollar” commissions are designed to prevent abuses, such as payment for meals, rent, travel and other expenses not directly attributable to investment decisions. Additionally, the SEC is reviewing a change to the accredited investor rule which may have implications for the hedge fund industry.
The seminar is free and open to hedge fund industry professionals. Registry online by May 7.
Thompson Hine’s May 17 hedge fund landmine seminar will be followed at 5:30 p.m. by The Fifth Annual “Open Your Heart to Children” benefit held by the Chicago chapter of Hedge Funds Care at the Millennium Park Rooftop Terrace.
Court Of Baltimore Rules Against Costa Brava Hedge Fund
The Circuit Court for Baltimore City has, for the third time in just over a year, denied legal motions filed against Telos Corporation by Costa Brava Partnership III, L.P., a Boston-based hedge fund. Costa Brava previously had two motions for receivership dismissed or denied, and a motion for preliminary injunction regarding the sale of assets dismissed.
John B. Wood, CEO of Telos said, “As we said in our memorandum to the court, Costa Brava clearly refuses to take no for an answer. Not satisfied that their stock value has increased by nearly 200% in less than two years, Costa Brava wants to litigate even higher returns, an act that could have detrimental effects on our other shareholders and our employees.”
The activist hedge fund was demanding that Telos be prohibited from pursuing or closing any sale of assets until after May 31, 2007. That is the date that Costa Brava hopes to elect two new Class D directors of their choosing to the Telos Board of Directors.
Costa Brava and Telos are scheduled to meet on May 31 to discuss the election of two Class D directors. Costa Brava was previously given an opportunity to elect Class D directors, but failed to pursue that opportunity. The Court recognized Costa Brava’s “earlier reluctance” to fill the directorships and found that the Telos was “not in violation of any statutory, charter or by-law requirements with respect to the pending election of those directors.”
The same Court has in the past has addressed several claims by the activist hedge fund, including a recent opinion regarding Costa Brava’s demand that Telos be placed into receivership.
Wood said that Telos, whose stock over the past five years has outperformed the NASDAQ composite by 100%, “is committed to treating all shareholders equitably and continuing to focus on our role as a trusted provider of security solutions to U.S. government agencies and the Department of Defense.”
John B. Wood, CEO of Telos said, “As we said in our memorandum to the court, Costa Brava clearly refuses to take no for an answer. Not satisfied that their stock value has increased by nearly 200% in less than two years, Costa Brava wants to litigate even higher returns, an act that could have detrimental effects on our other shareholders and our employees.”
The activist hedge fund was demanding that Telos be prohibited from pursuing or closing any sale of assets until after May 31, 2007. That is the date that Costa Brava hopes to elect two new Class D directors of their choosing to the Telos Board of Directors.
Costa Brava and Telos are scheduled to meet on May 31 to discuss the election of two Class D directors. Costa Brava was previously given an opportunity to elect Class D directors, but failed to pursue that opportunity. The Court recognized Costa Brava’s “earlier reluctance” to fill the directorships and found that the Telos was “not in violation of any statutory, charter or by-law requirements with respect to the pending election of those directors.”
The same Court has in the past has addressed several claims by the activist hedge fund, including a recent opinion regarding Costa Brava’s demand that Telos be placed into receivership.
Wood said that Telos, whose stock over the past five years has outperformed the NASDAQ composite by 100%, “is committed to treating all shareholders equitably and continuing to focus on our role as a trusted provider of security solutions to U.S. government agencies and the Department of Defense.”
$91.16 Billion Hedge Fund Driven Bank Merger To Go Through
The Managing Board and Supervisory Board of ABN AMRO Holding N.V. and the Board of Directors of Barclays PLC announced jointly this morning that agreement has been reached on the combination of ABN AMRO and Barclays for $91.16 billion, in the world's largest bank takeover.
In March hedge fund and major shareholder TCI announced in a letter to Dutch bank ABN Amro that they believe the bank is undervalued and should sell some of its assets, merge with another bank, or even sell off the whole business. ABN Amro is due to hold a shareholder meeting this week and each of the Boards has unanimously resolved to recommend this new transaction to its respective shareholders. The holding company of the combined group will be called Barclays PLC.
The merger was expected to be completed during the fourth quarter of this year, the banks said. As part of the deal, ABN Amro announced it was selling its U.S. unit, LaSalle Bank, to Bank of America Corp. for $21 billion in cash. Under the deal announced Monday, Barclays offered 36.25 euros ($49.25) for each ABN Amro share, slightly below Friday's closing price of 36.29 euros ($49.38).
"The proposed merger of ABN Amro and Barclays will create a strong and competitive combination for its clients with superior products and extensive distribution," the banks said in a statement. "The merged group is expected to generate significant and sustained future incremental earnings growth for shareholders."
Barclays CEO John Varley said the hedge fund shareholders faced a stark choice: Either deconstruct ABN Amro by opting for the competing consortium's bid, or form one of the world's largest banks by accepting Barclays takeover. TCI, the hedge fund that pushed for the bank's breakup, said it was studying the proposed deal.
In March hedge fund and major shareholder TCI announced in a letter to Dutch bank ABN Amro that they believe the bank is undervalued and should sell some of its assets, merge with another bank, or even sell off the whole business. ABN Amro is due to hold a shareholder meeting this week and each of the Boards has unanimously resolved to recommend this new transaction to its respective shareholders. The holding company of the combined group will be called Barclays PLC.
The merger was expected to be completed during the fourth quarter of this year, the banks said. As part of the deal, ABN Amro announced it was selling its U.S. unit, LaSalle Bank, to Bank of America Corp. for $21 billion in cash. Under the deal announced Monday, Barclays offered 36.25 euros ($49.25) for each ABN Amro share, slightly below Friday's closing price of 36.29 euros ($49.38).
"The proposed merger of ABN Amro and Barclays will create a strong and competitive combination for its clients with superior products and extensive distribution," the banks said in a statement. "The merged group is expected to generate significant and sustained future incremental earnings growth for shareholders."
Barclays CEO John Varley said the hedge fund shareholders faced a stark choice: Either deconstruct ABN Amro by opting for the competing consortium's bid, or form one of the world's largest banks by accepting Barclays takeover. TCI, the hedge fund that pushed for the bank's breakup, said it was studying the proposed deal.
5th Annual Hedge Fund Industry Award Nominees
Alternative Investment News, a publication of Institutional Investor News covering the global hedge fund industry, has announced the nominees for the 5th Annual Hedge Fund Industry Awards. The awards recognize the hedge fund leaders, managers and investors who have made significant impacts on the hedge fund industry in the past year. Winners will be announced and awarded at an annual gala dinner on June 27, 2007, at New York City's historic Gotham Hall.
Nominees in all categories were selected by the editors of Alternative Investment News based on their accomplishments during the 2006 calendar year.
Lifetime Achievement award winner:
Guy Wyser-Pratte, President, Wyser Pratte & Company
Nominees:
Hedge Fund Leader of the Year:
Absolute Capital Management
Citadel Investment Group
Bulldog Investors
Fortress Investment Group
Fund of Funds Leader of the Year:
Cadogan Management
Dorchester Capital
Eden Rock Capital Management
Harcourt Investment Consulting
Hedge Fund Launch of the Year:
Kohlberg Kravis Roberts
MatlinPatterson Asset Management
Montrica Investment Management
Oceanwood Capital Management
Paulson Credit Opportunities
Emerging Manager of the Year:
ARCIM Advisors
Hudson Bay Capital Management
MKM Longboat Advisors
Rasmala Investments
Institutional Manager of the Year:
Lyxor Asset Management
Martin Currie Investment Management
Morgan Stanley
Robeco Group
Nonprofit Investor of the Year:
Bowdoin College
MIT Investment Management Company (MIT IMC)
Macarthur Foundation
Public Pension Fund Investor of the Year:
New Jersey State Investment Council
ABP
California Public Employees Retirement System
Ontario Teachers' Pension Plan
Corporate Pension Fund Investor of the Year:
Weyerhaeuser
BT and Hermes Pensions Management
General Motors Investment Management (GMIMCo)
More at;
http://www.iialternatives.com
Nominees in all categories were selected by the editors of Alternative Investment News based on their accomplishments during the 2006 calendar year.
Lifetime Achievement award winner:
Guy Wyser-Pratte, President, Wyser Pratte & Company
Nominees:
Hedge Fund Leader of the Year:
Absolute Capital Management
Citadel Investment Group
Bulldog Investors
Fortress Investment Group
Fund of Funds Leader of the Year:
Cadogan Management
Dorchester Capital
Eden Rock Capital Management
Harcourt Investment Consulting
Hedge Fund Launch of the Year:
Kohlberg Kravis Roberts
MatlinPatterson Asset Management
Montrica Investment Management
Oceanwood Capital Management
Paulson Credit Opportunities
Emerging Manager of the Year:
ARCIM Advisors
Hudson Bay Capital Management
MKM Longboat Advisors
Rasmala Investments
Institutional Manager of the Year:
Lyxor Asset Management
Martin Currie Investment Management
Morgan Stanley
Robeco Group
Nonprofit Investor of the Year:
Bowdoin College
MIT Investment Management Company (MIT IMC)
Macarthur Foundation
Public Pension Fund Investor of the Year:
New Jersey State Investment Council
ABP
California Public Employees Retirement System
Ontario Teachers' Pension Plan
Corporate Pension Fund Investor of the Year:
Weyerhaeuser
BT and Hermes Pensions Management
General Motors Investment Management (GMIMCo)
More at;
http://www.iialternatives.com
20 Apr 2007
G7 To Discuss Hedge Fund Oversight
E.U. Finance Ministers are planning to push for more oversight of hedge funds at this week's Group of 7 meeting in Berlin, the G7 has welcomed the contribution of hedge funds to market liquidity but still see investor protection as an issue.
Industry-led measures could include reporting trades to watchdogs to stamp out possible market abuse. The Alternative Investment Management Association, a global lobby, said a voluntary code was acceptable in principle, but how it would be enforced was unclear.
Ministers meeting this weekend will look at whether "enhanced international cooperation on the regulatory response should be pursued", according to a background document. They also plan to discuss intervention in takeover battles such as the recent hedge fund fight over Dutch bank ABN AMRO.
The document says that action of some sort is needed "given that the influence of hedge funds on the efficiency and stability of the financial system has grown substantially". Hedge fund managers are also accountable to regulators even though most funds are registered offshore such as in the Cayman Islands.
The G7 is comprised of official representatives from Britain, Canada, France, Germany, Italy, Japan, and the United States. The group released their conclusion last month that the world's major developed economies show solid growth, but foreign exchange fluctuations, the rising power of hedge funds and dwindling energy supplies are a concern.
Industry-led measures could include reporting trades to watchdogs to stamp out possible market abuse. The Alternative Investment Management Association, a global lobby, said a voluntary code was acceptable in principle, but how it would be enforced was unclear.
Ministers meeting this weekend will look at whether "enhanced international cooperation on the regulatory response should be pursued", according to a background document. They also plan to discuss intervention in takeover battles such as the recent hedge fund fight over Dutch bank ABN AMRO.
The document says that action of some sort is needed "given that the influence of hedge funds on the efficiency and stability of the financial system has grown substantially". Hedge fund managers are also accountable to regulators even though most funds are registered offshore such as in the Cayman Islands.
The G7 is comprised of official representatives from Britain, Canada, France, Germany, Italy, Japan, and the United States. The group released their conclusion last month that the world's major developed economies show solid growth, but foreign exchange fluctuations, the rising power of hedge funds and dwindling energy supplies are a concern.
19 Apr 2007
Environmental Hedge Funds Growing Rapidly
The Energy Hedge Fund Center LLC announced today that they are now tracking more than 560 energy and energy-related hedge funds in their new Directory of Energy Hedge Funds.
The vast majority of these energy focused hedge funds are based in North America but Europe is already home to 130 energy focused hedge funds and has been the focus for recent energy hedge fund formation. The directory is also now tracking more than 180 commodity hedge funds that have exposure to energy and energy-related commodities.
"Recently, we have seen a renewed interest in the creation of fund of funds in the energy and natural resources sector," reports Dr. Gary M. Vasey, Co-Principal of the Energy Hedge Fund Center, LLC. "Perhaps as interestingly, there has also been a new wave of hedge fund formation focused on energy and other related commodities since the beginning of 2007."
"We are also seeing substantial interest in the launch of larger green hedge funds and more significant growth of sustainability fund of funds this spring. We expect this trend to the accelerate as the US more toward carbon market mandates," said Peter Fusaro, Co-Principal of the Energy Hedge Fund Center LLC. "Energy and environmental hedge funds are still seen as an asset diversification play due to its non correlation."
The Energy Hedge Fund Center(EHFC) also publishes a subscription newsletter 'Energy Hedge' that tracks and announces new energy hedge funds, provides analysis of the Directory's content and includes energy hedge fund manager interviews.
The vast majority of these energy focused hedge funds are based in North America but Europe is already home to 130 energy focused hedge funds and has been the focus for recent energy hedge fund formation. The directory is also now tracking more than 180 commodity hedge funds that have exposure to energy and energy-related commodities.
"Recently, we have seen a renewed interest in the creation of fund of funds in the energy and natural resources sector," reports Dr. Gary M. Vasey, Co-Principal of the Energy Hedge Fund Center, LLC. "Perhaps as interestingly, there has also been a new wave of hedge fund formation focused on energy and other related commodities since the beginning of 2007."
"We are also seeing substantial interest in the launch of larger green hedge funds and more significant growth of sustainability fund of funds this spring. We expect this trend to the accelerate as the US more toward carbon market mandates," said Peter Fusaro, Co-Principal of the Energy Hedge Fund Center LLC. "Energy and environmental hedge funds are still seen as an asset diversification play due to its non correlation."
The Energy Hedge Fund Center(EHFC) also publishes a subscription newsletter 'Energy Hedge' that tracks and announces new energy hedge funds, provides analysis of the Directory's content and includes energy hedge fund manager interviews.
InFocus Hires Hedge Fund Manager
InFocus Corporation announced that they have added hedge fund manager John D. Abouchar and Bernard T. Marren to serve as members of the Company’s Board of Directors. Abouchar and Marren were designated to serve on the Board of Directors by the companies largest shareholder Caxton Associates L.L.C.
Abouchar is an independent consultant to GRT Capital Partners, LLC, based in Boston, Massachusetts, and a portfolio manager for the GRT Technology L.P. hedge fund. Prior to joining GRT Capital Partners in 2006, Abouchar was a Senior Analyst for six years at Pacific Edge Investment Management, a $300 million value technology hedge fund based in Palo Alto, California. Mr. Marren is the Chairman, Chief Executive Officer and President of OPTi Inc., an intellectual property licensing company based in Palo Alto, California.
“Effective yesterday, we officially added Mr. Marren and Mr. Abouchar to the InFocus Board of Directors,” stated Michael Hallman, lead InFocus independent director. “We look forward to their insights and contributions as we continue the evaluation of strategic alternatives for the Company,” concluded Hallman.
InFocus is an inventor and pioneer in the projection market, InFocus Corporation's global headquarters are located in Wilsonville, Oregon, USA, with regional offices in Europe and Asia. LiteShow, LP, ASK, ScreenPlay, Play Big, Work Big, Learn Big and The Big Picture are also registered trademarks of InFocus.
Abouchar is an independent consultant to GRT Capital Partners, LLC, based in Boston, Massachusetts, and a portfolio manager for the GRT Technology L.P. hedge fund. Prior to joining GRT Capital Partners in 2006, Abouchar was a Senior Analyst for six years at Pacific Edge Investment Management, a $300 million value technology hedge fund based in Palo Alto, California. Mr. Marren is the Chairman, Chief Executive Officer and President of OPTi Inc., an intellectual property licensing company based in Palo Alto, California.
“Effective yesterday, we officially added Mr. Marren and Mr. Abouchar to the InFocus Board of Directors,” stated Michael Hallman, lead InFocus independent director. “We look forward to their insights and contributions as we continue the evaluation of strategic alternatives for the Company,” concluded Hallman.
InFocus is an inventor and pioneer in the projection market, InFocus Corporation's global headquarters are located in Wilsonville, Oregon, USA, with regional offices in Europe and Asia. LiteShow, LP, ASK, ScreenPlay, Play Big, Work Big, Learn Big and The Big Picture are also registered trademarks of InFocus.
18 Apr 2007
ABN In Exploratory Talks With Shareholders
Last week Dutch bank and activist hedge fund manager ABN AMRO received a letter from Royal Bank of Scotland, Banco Santander and Fortis in which they invited ABN AMRO to start exploratory talks regarding their intentions, the Dutch Decree on the Supervision of Securities Trade 1995 makes these kinds of requests possible.
The bank agreed to the request for a meeting and has invited all signatories to a meeting in Amsterdam early next week to seek clarification of their intentions and interests.
ABN AMRO and Barclays also announced today, regarding their possible merger/takeover, that they have extended the exclusivity period of their talks to the end of Friday 20 April 2007. ABN AMRO and Barclays are in talks regarding a potential combination of the two organizations that the statement says, "would create value for both sets of shareholders."
The bank also said in the statement, "The discussions, which seek to incorporate the broad objectives set out on 20 March 2007, are progressing, but there can be no certainty that they will lead to a transaction or the form it will take." The two banking groups have been in merger talks since Barclays confirmed it was in "exclusive preliminary discussions" with ABN on March 20.
Netherlands-based ABN AMRO is an international bank with total assets of 899.3 billion euros ($1.2 trillion). It's hedge fund arm, ABN AMRO Asset Management has over 173 billion euros ($235 billion) in assets under management.
The bank agreed to the request for a meeting and has invited all signatories to a meeting in Amsterdam early next week to seek clarification of their intentions and interests.
ABN AMRO and Barclays also announced today, regarding their possible merger/takeover, that they have extended the exclusivity period of their talks to the end of Friday 20 April 2007. ABN AMRO and Barclays are in talks regarding a potential combination of the two organizations that the statement says, "would create value for both sets of shareholders."
The bank also said in the statement, "The discussions, which seek to incorporate the broad objectives set out on 20 March 2007, are progressing, but there can be no certainty that they will lead to a transaction or the form it will take." The two banking groups have been in merger talks since Barclays confirmed it was in "exclusive preliminary discussions" with ABN on March 20.
Netherlands-based ABN AMRO is an international bank with total assets of 899.3 billion euros ($1.2 trillion). It's hedge fund arm, ABN AMRO Asset Management has over 173 billion euros ($235 billion) in assets under management.
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