Islamic hedge fund regulators have agreed to admit 12 new members to the the Council of the Islamic Financial Services Board (IFSB) bringing the total members to 137.
Two new regulatory and supervisory authorities have joined the IFSB membership, the Emirates Securities and Commodities Authority, of United Arab Emirates, which was admitted as an Associate Member, and the Bank of Japan who joined as an Observer Member.
The Council has also admitted ten other new Observer Members. The IFSB members now total 137 comprising of 35 regulatory and supervisory authorities, 5 international inter-governmental organizations and 97 market players and professional firms operating in 22 jurisdictions.
The Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international-standard setting body of regulatory and supervisory agencies who have interest in ensuring the soundness and stability of the Islamic financial services industry.
In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Islamic Shari'ah principles.
The 137 members of the IFSB include 35 regulatory and supervisory authorities as well as International Monetary Fund, The World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank, and 97 market players and professional firms from 22 countries.
14 Sept 2007
13 Sept 2007
Legal Search Firm Hires Hedge Fund Specialist
Lucas Group announced today in a press release that Todd Caissie has joined as the new Managing Partner of the New York Legal Executive Search office.
Caissie brings nine years of recruiting experience to his new role at Lucas Group with a rich background in Legal recruiting that spans the globe. His last position was Managing Director at Major Lindsey & Africa, the world’s largest legal search firm where he worked with top fortune 500 companies including Colgate-Palmolive and Merrill Lynch as well as the National Hockey League, prestigious hedge funds and private equity firms and other high profile clients in a variety of industry sectors.
Prior to Major Lindsey & Africa, Todd spent five years in Japan and headed up the Tokyo office for TMP Worldwide. Job turnover and lateral recruiting were still recent phenomenons and new frontiers in Japan but with the changing job market he was involved in growing the office from 6 people to 65 in a little over three years.
“I am very excited to join Lucas Group in New York. I inherit an extremely talented team of recruiters and I look forward to increasing our presence in the tri-state area,” says Todd Caissie.
Lucas Group is one of the United States’ largest executive recruitment focused on recruiting top executives in management, advertising/marketing, sales, accounting, manufacturing, legal, military personnel transitioning and technical positions across all major industries.
Caissie brings nine years of recruiting experience to his new role at Lucas Group with a rich background in Legal recruiting that spans the globe. His last position was Managing Director at Major Lindsey & Africa, the world’s largest legal search firm where he worked with top fortune 500 companies including Colgate-Palmolive and Merrill Lynch as well as the National Hockey League, prestigious hedge funds and private equity firms and other high profile clients in a variety of industry sectors.
Prior to Major Lindsey & Africa, Todd spent five years in Japan and headed up the Tokyo office for TMP Worldwide. Job turnover and lateral recruiting were still recent phenomenons and new frontiers in Japan but with the changing job market he was involved in growing the office from 6 people to 65 in a little over three years.
“I am very excited to join Lucas Group in New York. I inherit an extremely talented team of recruiters and I look forward to increasing our presence in the tri-state area,” says Todd Caissie.
Lucas Group is one of the United States’ largest executive recruitment focused on recruiting top executives in management, advertising/marketing, sales, accounting, manufacturing, legal, military personnel transitioning and technical positions across all major industries.
HFN Aggregate Average Down for August
Early estimates from the HFN Hedge Fund Aggregate Average is -1.26% for August of this year. The decrease was the largest since May 2006 and was the first month since May 2007 that the average hedge fund underperformed equity markets.
Year to date through August the average hedge fund is +6.28% while the S&P 500 TR is +5.20%. The HFN database consists of over 7,600 current hedge fund, fund of funds, and CTA products. HFN is an equal weighted average of all single manager hedge funds and CTA/managed futures products in the HedgeFund.net database.
Unlike previous months when equity markets fell and hedge funds outperformed, the environment in August proved more treacherous for managers.
Although major US equity markets ended August positive and European markets rallied to month end, the big drops and volatility during the month combined with widening credit spreads resulted in the majority of hedge fund strategies being negative in August. The HFN Fixed Income Arbitrage Average, perhaps the most representative benchmark of the difficulties caused by the global credit squeeze, experienced its worst month since October 1998, -2.39% and is +0.71% YTD.
August was not painful for every hedge fund strategy. Managers running option strategies benefited from the increase in volatility, returning an average of +1.44% in August and the HFN Options Strategies Average is +6.32% YTD. Short biased managers produced positive returns for the third straight month, +1.04% in August, a feat matched only three times in the last four years and the HFN Short Bias Average is +1.21% YTD.
Year to date through August the average hedge fund is +6.28% while the S&P 500 TR is +5.20%. The HFN database consists of over 7,600 current hedge fund, fund of funds, and CTA products. HFN is an equal weighted average of all single manager hedge funds and CTA/managed futures products in the HedgeFund.net database.
Unlike previous months when equity markets fell and hedge funds outperformed, the environment in August proved more treacherous for managers.
Although major US equity markets ended August positive and European markets rallied to month end, the big drops and volatility during the month combined with widening credit spreads resulted in the majority of hedge fund strategies being negative in August. The HFN Fixed Income Arbitrage Average, perhaps the most representative benchmark of the difficulties caused by the global credit squeeze, experienced its worst month since October 1998, -2.39% and is +0.71% YTD.
August was not painful for every hedge fund strategy. Managers running option strategies benefited from the increase in volatility, returning an average of +1.44% in August and the HFN Options Strategies Average is +6.32% YTD. Short biased managers produced positive returns for the third straight month, +1.04% in August, a feat matched only three times in the last four years and the HFN Short Bias Average is +1.21% YTD.
12 Sept 2007
Proskauer Rose Hires Hedge Fund Lawyer
According to a statement released today, hedge fund and private equity lawyer Timothy M. Clark has joined the New York office of Proskauer Rose LLP as a partner, continuing the expansion of the firm’s significant private investment hedge fund practice.
Mr. Clark has extensive experience representing a range of investment firms, in particular hedge funds, in connection with fund formation, complex transactions and regulatory issues.
“Proskauer has developed one of the largest, broadest and most sophisticated private investment fund practices, with more than 125 lawyers working on private equity and hedge fund formation,” said Ronald R. Papa, partner and chair of Proskauer’s Corporate Department. “Timothy offers outstanding experience working with hedge funds, private equity firms and venture capitalists and makes an excellent addition to our Hedge Fund and Private Investment Funds practices.”
“Particularly today, with the financial markets in flux, investment firms are looking for counsel from seasoned advisors who have experienced various economic cycles and can provide the insight to help firms chart a successful course forward,” added Christopher Wells, head of Proskauer’s Hedge Fund Practice. “Timothy’s expertise is an ideal complement to our deep bench of talent and we are delighted to have him join our team.”
Proskauer Rose was founded in 1875 and is one of the US’ largest law firms, providing a variety of legal services to clients throughout the United States and around the world from offices in New York, Los Angeles, Washington, D.C., Boston, Boca Raton, Newark, New Orleans, Paris, and São Paulo.
The firm has experience in areas of practice important to businesses and individuals including among others, corporate finance, mergers and acquisitions, general commercial litigation, private equity and hedge fund formation.
Mr. Clark has extensive experience representing a range of investment firms, in particular hedge funds, in connection with fund formation, complex transactions and regulatory issues.
“Proskauer has developed one of the largest, broadest and most sophisticated private investment fund practices, with more than 125 lawyers working on private equity and hedge fund formation,” said Ronald R. Papa, partner and chair of Proskauer’s Corporate Department. “Timothy offers outstanding experience working with hedge funds, private equity firms and venture capitalists and makes an excellent addition to our Hedge Fund and Private Investment Funds practices.”
“Particularly today, with the financial markets in flux, investment firms are looking for counsel from seasoned advisors who have experienced various economic cycles and can provide the insight to help firms chart a successful course forward,” added Christopher Wells, head of Proskauer’s Hedge Fund Practice. “Timothy’s expertise is an ideal complement to our deep bench of talent and we are delighted to have him join our team.”
Proskauer Rose was founded in 1875 and is one of the US’ largest law firms, providing a variety of legal services to clients throughout the United States and around the world from offices in New York, Los Angeles, Washington, D.C., Boston, Boca Raton, Newark, New Orleans, Paris, and São Paulo.
The firm has experience in areas of practice important to businesses and individuals including among others, corporate finance, mergers and acquisitions, general commercial litigation, private equity and hedge fund formation.
11 Sept 2007
Merkel and Sarkozy Discuss EU Hedge Funds
At an informal meeting yesterday in Meseberg, Germany, French President Sarkozy took a tough line on "financial speculators", such as hedge funds, who should not be allowed "to destroy an entire international system".
He added: "We are in favour of transparency and regulation, and for a capitalism that favours entrepreneurs, not speculators."
Merkel and Sarkozy also discussed issues of common European concern, such as energy, and proposed the creation of a "council of wise men" to debate how the EU should evolve over the next 30 years.
However, the two remained vague on the composition of such a council, but underlined that its members should not be individuals who are actively involved in the Commission, Council or Parliament.Both Merkel and Sarkozy are opposed to Turkish EU membership, supporting a close association instead.
Chancellor Merkel criticised in particular the failure of rating agencies. She asked: "How can we tell people at home that nobody knew anything about this and yet they all have to live with the consequences?"
The two European leaders said that they would push for an EU initiative to improve the transparency of financial markets following the recent turmoil spurred by the US sub-prime market collapse.
He added: "We are in favour of transparency and regulation, and for a capitalism that favours entrepreneurs, not speculators."
Merkel and Sarkozy also discussed issues of common European concern, such as energy, and proposed the creation of a "council of wise men" to debate how the EU should evolve over the next 30 years.
However, the two remained vague on the composition of such a council, but underlined that its members should not be individuals who are actively involved in the Commission, Council or Parliament.Both Merkel and Sarkozy are opposed to Turkish EU membership, supporting a close association instead.
Chancellor Merkel criticised in particular the failure of rating agencies. She asked: "How can we tell people at home that nobody knew anything about this and yet they all have to live with the consequences?"
The two European leaders said that they would push for an EU initiative to improve the transparency of financial markets following the recent turmoil spurred by the US sub-prime market collapse.
10 Sept 2007
Hedge Fund Compensation Report Shows Increase In Pay For 2008
The 2008 Hedge Fund Compensation Report was released today by Glocap Search LLC, Institutional Investor News, and Lipper HedgeWorld. The report is an analysis of 2007 compensation paid by U.S. hedge funds including estimates for cash bonuses expected to be paid in early 2008. The data shows that compensation for all titles and job functions covered by the report will continue to increase.
Among other things, the 2008 Report shows that the average compensation for investment professionals with 1-4 years of experience at funds with $1-3 billion in assets under management is estimated to come in at just over $330,000. While the average compensation for investment professionals with 10 or more years of experience at hedge funds with $10 billion or more in assets under management (a new category this year and the largest in the report) is estimated to hit $2.35 million this year.
The report also estimates that fundraisers will earn average pay packages of about $730,000 this year and total cash compensation for Senior Analysts at fund of funds is expected to hit $325,000.
Adam Zoia, Managing Partner at Glocap, noted that, as hedge funds continue to attract capital at rapid rates and the markets have become more competitive, there has been a heightened need for more qualified professionals to help invest the money, and that demand has pushed compensation higher at any given level of fund performance.
The report analyzes base salaries and bonuses of thousands of hedge fund professionals at hundreds of U.S. hedge fund firms for the years 2004-2007, including Investment Professionals, Traders, CFOs, COOs, Fund Marketers, Administrative & Executive Assistants, Information Technology, Risk Management, Operations and Legal & Compliance professionals. The data in the Report comes from a combination of first-hand feedback from Glocap candidates on past and expected compensation, actual placement data maintained by Glocap in the course of its search business and from survey results by its recruiters.
Zoia added that the 2008 report was improved to reflect the changing landscape of the hedge fund industry. Specifically, fund sizes were altered to include even larger funds and compensation data was added on fund of funds. "As we are every year, Glocap is once again happy to be a part of what has become an established compensation planning tool for hedge funds of all sizes," Zoia said.
Among other things, the 2008 Report shows that the average compensation for investment professionals with 1-4 years of experience at funds with $1-3 billion in assets under management is estimated to come in at just over $330,000. While the average compensation for investment professionals with 10 or more years of experience at hedge funds with $10 billion or more in assets under management (a new category this year and the largest in the report) is estimated to hit $2.35 million this year.
The report also estimates that fundraisers will earn average pay packages of about $730,000 this year and total cash compensation for Senior Analysts at fund of funds is expected to hit $325,000.
Adam Zoia, Managing Partner at Glocap, noted that, as hedge funds continue to attract capital at rapid rates and the markets have become more competitive, there has been a heightened need for more qualified professionals to help invest the money, and that demand has pushed compensation higher at any given level of fund performance.
The report analyzes base salaries and bonuses of thousands of hedge fund professionals at hundreds of U.S. hedge fund firms for the years 2004-2007, including Investment Professionals, Traders, CFOs, COOs, Fund Marketers, Administrative & Executive Assistants, Information Technology, Risk Management, Operations and Legal & Compliance professionals. The data in the Report comes from a combination of first-hand feedback from Glocap candidates on past and expected compensation, actual placement data maintained by Glocap in the course of its search business and from survey results by its recruiters.
Zoia added that the 2008 report was improved to reflect the changing landscape of the hedge fund industry. Specifically, fund sizes were altered to include even larger funds and compensation data was added on fund of funds. "As we are every year, Glocap is once again happy to be a part of what has become an established compensation planning tool for hedge funds of all sizes," Zoia said.
Goodman Fund of Funds Reaches Target of 250 Million Euros
Goodman Property Investors announced that its eurozone fund of hedge funds is on course to reach its equity targets after hitting €250 million ($344.8 million) since launching a year ago.
The Goodman Group international property investment management business is set to achieve its €300 million ($413.7 million) equity target within a 12 to 24 month timeframe from its July 2006 inception.
The fund has returned 9.6% so far this year, with 24 investors of predominantly UK and Continental European pension funds. The majority of the investments are in specialist sector and/or geographically focused funds.
The fund is managed by Karin van der Sluijs who is based in Goodman’s Amsterdam office. The fund’s portfolio provides a balanced exposure to the traditional office, retail and industrial sectors combined with investments in some specialist sectors such as residential and car parking, the majority of the Karin van der Sluijs managed fund’s investments are in specialist sector and geographically focused funds.
Andrew Smith, head of indirect investment at Goodman Property Investors, said: "The success of the Eurozone Fund of Funds demonstrates the increased appetite from European pension funds for investing in property outside their domestic market. It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors.”
“It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors,” Andrew says.
“One of the key selling points of the fund has been the strong investment pipeline we have secured. “This highlights the benefit of having people on the ground with the local knowledge and experience to seek out these specialist managers.”
The Goodman Group international property investment management business is set to achieve its €300 million ($413.7 million) equity target within a 12 to 24 month timeframe from its July 2006 inception.
The fund has returned 9.6% so far this year, with 24 investors of predominantly UK and Continental European pension funds. The majority of the investments are in specialist sector and/or geographically focused funds.
The fund is managed by Karin van der Sluijs who is based in Goodman’s Amsterdam office. The fund’s portfolio provides a balanced exposure to the traditional office, retail and industrial sectors combined with investments in some specialist sectors such as residential and car parking, the majority of the Karin van der Sluijs managed fund’s investments are in specialist sector and geographically focused funds.
Andrew Smith, head of indirect investment at Goodman Property Investors, said: "The success of the Eurozone Fund of Funds demonstrates the increased appetite from European pension funds for investing in property outside their domestic market. It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors.”
“It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors,” Andrew says.
“One of the key selling points of the fund has been the strong investment pipeline we have secured. “This highlights the benefit of having people on the ground with the local knowledge and experience to seek out these specialist managers.”
6 Sept 2007
RMF Launches Global Environmental Fund of Hedge Fund
Swiss-based RMF Investment Management has has announced the launch of a global fund of hedge funds that will invest purely in environmental industries and strategies.
The RMF Environmental Opportunities Fund, which the company said is the first of its kind in the world, will invest in environmentally-friendly technology, renewable energy, initiatives to reduce carbon emissions and conserve water and sustainable infrastructure.
The fund, in which RMF has invested $25.1 million, is aimed at institutional investors and designed to generate returns of between 8 and 10 per cent with medium-level volatility. As a hedge of hedge funds, it includes investments in multiple hedge fund managers, thereby increasing diversification.
RMF head of new alternative investments Michelle McClosky said that environmental investments are evolving rapidly.
“Environmental hedge funds offer great potential, but the challenge for us initially was to find enough liquid strategies with institutional-quality managers. When we started looking at the market just over a year ago, only a handful of these hedge funds existed. But over the past year, liquidity in both the equities and futures markets has increased dramatically and we have seen a corresponding increase in the number of fund offerings in the sector. With over 35 hedge funds to choose from, we are now confident the market is scalable and that managers are here to stay.”
RMF, which is headquartered in Pfäffikon in Switzerland and has offices in London, New York, Singapore and the Bahamas, began as a hedge fund manager in 1992 and now manages more than $25.4 billion in assets, mainly for institutional investors.
RMF is part of Man Investments, which has $67 billion in assets under management, centers in London and Pfäffikon and offices in Chicago, Hong Kong, Dubai, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
The RMF Environmental Opportunities Fund, which the company said is the first of its kind in the world, will invest in environmentally-friendly technology, renewable energy, initiatives to reduce carbon emissions and conserve water and sustainable infrastructure.
The fund, in which RMF has invested $25.1 million, is aimed at institutional investors and designed to generate returns of between 8 and 10 per cent with medium-level volatility. As a hedge of hedge funds, it includes investments in multiple hedge fund managers, thereby increasing diversification.
RMF head of new alternative investments Michelle McClosky said that environmental investments are evolving rapidly.
“Environmental hedge funds offer great potential, but the challenge for us initially was to find enough liquid strategies with institutional-quality managers. When we started looking at the market just over a year ago, only a handful of these hedge funds existed. But over the past year, liquidity in both the equities and futures markets has increased dramatically and we have seen a corresponding increase in the number of fund offerings in the sector. With over 35 hedge funds to choose from, we are now confident the market is scalable and that managers are here to stay.”
RMF, which is headquartered in Pfäffikon in Switzerland and has offices in London, New York, Singapore and the Bahamas, began as a hedge fund manager in 1992 and now manages more than $25.4 billion in assets, mainly for institutional investors.
RMF is part of Man Investments, which has $67 billion in assets under management, centers in London and Pfäffikon and offices in Chicago, Hong Kong, Dubai, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto.
5 Sept 2007
Hong Kong SFC Says Hedge Funds Not For Everyone
The Hong Kong Securities and Futures Commission (SFC) reminded investors in a press release today that although hedge funds are often marketed as “all weather” funds for different market conditions, their strategies do not always work for all market conditions.
The SFC also published an updated leaflet on hedge funds as part of its investor education leaflet series. The publication explains the basic concepts and risks of hedge funds. It stresses that hedge funds are only suitable for those who can understand and bear the risks involved.
When considering a hedge fund, according to the leaflet, investors should read the offering documents to have a clear view of the investment strategies and risks, ask questions, and avoid signing anything that they don’t understand.
In addition, investors are reminded that although unauthorized hedge funds cannot be offered to the public, they may be offered to private clients. When offered an unauthorized hedge fund, investors should note that the fund’s structure and operations are not subject to SFC regulatory requirements.
The English and Chinese versions of the leaflet are now available at the SFC office, and can be viewed in the “publications” section of the SFC-operated investor portal.
The Securities and Futures Commission (SFC) is an independent non-governmental statutory body outside the civil service, responsible for administering the laws governing the securities and futures markets in Hong Kong and facilitating and encouraging the development of these markets.
The SFC also published an updated leaflet on hedge funds as part of its investor education leaflet series. The publication explains the basic concepts and risks of hedge funds. It stresses that hedge funds are only suitable for those who can understand and bear the risks involved.
When considering a hedge fund, according to the leaflet, investors should read the offering documents to have a clear view of the investment strategies and risks, ask questions, and avoid signing anything that they don’t understand.
In addition, investors are reminded that although unauthorized hedge funds cannot be offered to the public, they may be offered to private clients. When offered an unauthorized hedge fund, investors should note that the fund’s structure and operations are not subject to SFC regulatory requirements.
The English and Chinese versions of the leaflet are now available at the SFC office, and can be viewed in the “publications” section of the SFC-operated investor portal.
The Securities and Futures Commission (SFC) is an independent non-governmental statutory body outside the civil service, responsible for administering the laws governing the securities and futures markets in Hong Kong and facilitating and encouraging the development of these markets.
3 Sept 2007
South Africa's New Hedge Fund Regulations
Just as South Africa’s Financial Services Board (FSB) is coming out with new regulations governing the area’s hedge fund industry, Terrapinn is presenting Hedge Funds World Africa 2007.
Last year there was a record turnout of 444 delegates and speakers at the Mount Nelson Hotel. This year local and international fund managers, asset managers, hedge fund managers, investment specialists and institutional investors will meet at the Cape Town International Convention Centre to celebrate the 7th annual hedge fund industry event.
The Alternative Investment Management Association’s South African chapter chairman, Ian Hamilton, welcomed the new regulations, saying the association had been working with the FSB and other industry organizations for more than two years “and our efforts have come to fruition”. The new regulations require anyone managing a hedge fund to apply to the FSB for a category IIA financial services provider license by the end of February. Attention will be paid to the applicant’s operational ability and risk management processes, as well as the types of investors who invest in the funds.
The FSB sent letters to investment managers approved by the FSB warning them that although allowed to buy and sell securities on behalf of their clients, it does not provide them with any form of approval to either manage hedge funds or to sell hedge funds to individuals or pension fund investors.
The final point of the letter stated that hedge fund managers may in no way make any representation to clients that they are approved to manage hedge funds or intimate that hedge funds are a regulated product in South Africa.
In terms of the current regulatory regime, hedge funds fall outside the scope of existing regulation and there is nothing preventing investment managers from conducting the business of a hedge fund provided that they do not represent to have been approved by the FSB to manage and/or solicit for investment into hedge funds.
It is therefore suggested that any hedge fund material should state such restrictions clearly on the face of such documentation and all participants in the hedge fund industry must ensure that they act responsibly in their conduct.
Last year there was a record turnout of 444 delegates and speakers at the Mount Nelson Hotel. This year local and international fund managers, asset managers, hedge fund managers, investment specialists and institutional investors will meet at the Cape Town International Convention Centre to celebrate the 7th annual hedge fund industry event.
The Alternative Investment Management Association’s South African chapter chairman, Ian Hamilton, welcomed the new regulations, saying the association had been working with the FSB and other industry organizations for more than two years “and our efforts have come to fruition”. The new regulations require anyone managing a hedge fund to apply to the FSB for a category IIA financial services provider license by the end of February. Attention will be paid to the applicant’s operational ability and risk management processes, as well as the types of investors who invest in the funds.
The FSB sent letters to investment managers approved by the FSB warning them that although allowed to buy and sell securities on behalf of their clients, it does not provide them with any form of approval to either manage hedge funds or to sell hedge funds to individuals or pension fund investors.
The final point of the letter stated that hedge fund managers may in no way make any representation to clients that they are approved to manage hedge funds or intimate that hedge funds are a regulated product in South Africa.
In terms of the current regulatory regime, hedge funds fall outside the scope of existing regulation and there is nothing preventing investment managers from conducting the business of a hedge fund provided that they do not represent to have been approved by the FSB to manage and/or solicit for investment into hedge funds.
It is therefore suggested that any hedge fund material should state such restrictions clearly on the face of such documentation and all participants in the hedge fund industry must ensure that they act responsibly in their conduct.
31 Aug 2007
Cayman Island Hedge Fund Bankruptcy Decision on Hold
Judge Burton Lifland of the southern New York court recently announced his decision regarding the bankruptcies of two Bear Stearns Cayman Island hedge funds, Lifland said that he is keeping the funds' assets out of creditors' reach for another ten days, during which he will weigh whether to grant them Chapter 15 protection.
"The only adhesive connection with the Cayman Islands that the funds have is the fact that they are registered there," Lifland wrote in a ruling in New York, noting that most assets were originally in the U.S.
The insolvent funds were first granted the preliminary injunction on Aug. 9 by effectively halting any pending lawsuits in the U.S.
"There are no employees or managers in the Cayman Islands, the investment manager for the funds is located in New York, the administrator that runs the back-office operations of the funds is in the United States along with the funds' books and records, and prior to the commencement of the foreign proceeding, all of the funds' liquid assets were located in the United States," Lifland wrote.
The two funds bet heavily on subprime mortgage loans and as defaults increased, creditors began to clamor for their collateral, leaving the funds short on cash.
According to an AP report, provisional liquidators working to unwind the funds in the Caymans estimate that the High-Grade Structured Credit Strategies Master Fund could see recoveries of $25 million, and the smaller High-Grade Structured Credit Strategies Enhanced Leverage Master Fund could see recoveries of less than $50 million.
"The only adhesive connection with the Cayman Islands that the funds have is the fact that they are registered there," Lifland wrote in a ruling in New York, noting that most assets were originally in the U.S.
The insolvent funds were first granted the preliminary injunction on Aug. 9 by effectively halting any pending lawsuits in the U.S.
"There are no employees or managers in the Cayman Islands, the investment manager for the funds is located in New York, the administrator that runs the back-office operations of the funds is in the United States along with the funds' books and records, and prior to the commencement of the foreign proceeding, all of the funds' liquid assets were located in the United States," Lifland wrote.
The two funds bet heavily on subprime mortgage loans and as defaults increased, creditors began to clamor for their collateral, leaving the funds short on cash.
According to an AP report, provisional liquidators working to unwind the funds in the Caymans estimate that the High-Grade Structured Credit Strategies Master Fund could see recoveries of $25 million, and the smaller High-Grade Structured Credit Strategies Enhanced Leverage Master Fund could see recoveries of less than $50 million.
29 Aug 2007
Hedge Funds Care Raise $40K For Children
The Hedge Funds Care Committee of Hope raised over $40,000 last week to support the prevention and treatment of child abuse and neglect. At the 2nd Annual No Limit Texas Hold ‘Em Poker Tournament, more than 100 players and equally as many spectators watched as the final 15 players in the tournament received valuable prizes, all of which were donated thanks to the efforts of Keith Friedman (Iron Financial).
The Grand Prize, donated by Horseshoe Casinos, was a trip for two to Las Vegas, including airfare and a three night stay at the winner’s choice of Caesar’s Palace, Paris or Rio (Harrah’s hotels).
The event was sponsored by the Junior League of Chicago, on July 19, 2007 at Joe’s Sports Bar in Chicago, and was underwritten by the 2007 Committee of Hope Sponsors.
The Other prizes included: Orbitz air travel certificates, an Apple iPhone donated by Sheffield Asset Management, Chicago Bulls, Blackhawks, White Sox and Cubs tickets, a spa package and shaving sets from 316 Club Barber Spa, a Harley Davidson for a Day compliments of Signature Days, and a Swiss Calibre men’s watch donated by Trader Monthly. In addition, the top 10 finishers each received a huge gift basket compliments of Horseshoe Casinos.
The tournament started with 11 tables of approximately 10 players each, and ran smoothly thanks to help from a crew of mini pit bosses and bank attendants.
The Committee of Hope is a Midwest Chapter committee comprised of young professionals in the hedge fund and alternative investment industry. The committee hosts two annual fundraisers, as well as quarterly happy hours to inform the local hedge fund industry about Hedge Funds Care and the programs it supports.
The Grand Prize, donated by Horseshoe Casinos, was a trip for two to Las Vegas, including airfare and a three night stay at the winner’s choice of Caesar’s Palace, Paris or Rio (Harrah’s hotels).
The event was sponsored by the Junior League of Chicago, on July 19, 2007 at Joe’s Sports Bar in Chicago, and was underwritten by the 2007 Committee of Hope Sponsors.
The Other prizes included: Orbitz air travel certificates, an Apple iPhone donated by Sheffield Asset Management, Chicago Bulls, Blackhawks, White Sox and Cubs tickets, a spa package and shaving sets from 316 Club Barber Spa, a Harley Davidson for a Day compliments of Signature Days, and a Swiss Calibre men’s watch donated by Trader Monthly. In addition, the top 10 finishers each received a huge gift basket compliments of Horseshoe Casinos.
The tournament started with 11 tables of approximately 10 players each, and ran smoothly thanks to help from a crew of mini pit bosses and bank attendants.
The Committee of Hope is a Midwest Chapter committee comprised of young professionals in the hedge fund and alternative investment industry. The committee hosts two annual fundraisers, as well as quarterly happy hours to inform the local hedge fund industry about Hedge Funds Care and the programs it supports.
28 Aug 2007
Iraqi Hedge Fund Escapes Market Turmoil
Iraqi hedge fund `The Babylon Fund´ announced today that they successfully managed to steer away from the general global financial meltdown seen lately.
Babylon's winning streak continued during July (and further into August) with a rise of 3,8% in the Babylon Fund's NAV-price.
Of the hedge fund's direct Iraqi holdings, bond yields steered higher upon a combination of dried-up flow and risk aversion factors partly based upon the perceived weakened state of the government whose success might be seen as being indirectly linked to the bond payment stream.
On the other hand, in the ISX stock market in Baghdad, prices rose strongly, as did value and volumes traded, as participants positioned themselves ahead of foreigners' entrance into the ISX, which was allowed as of 1st of August.
According to a statement, Babylon's aim is to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi-dependant securities. The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics, aiming to be regarded as an easy, safe and efficient Gateway towards investing into the region.
Babylon Fund is an open-ended mutual fund that primarily invests into large-cap Iraqi-dependant securities, mainly listed on the stock exchanges both in Iraq and in other countries.
Babylon's winning streak continued during July (and further into August) with a rise of 3,8% in the Babylon Fund's NAV-price.
Of the hedge fund's direct Iraqi holdings, bond yields steered higher upon a combination of dried-up flow and risk aversion factors partly based upon the perceived weakened state of the government whose success might be seen as being indirectly linked to the bond payment stream.
On the other hand, in the ISX stock market in Baghdad, prices rose strongly, as did value and volumes traded, as participants positioned themselves ahead of foreigners' entrance into the ISX, which was allowed as of 1st of August.
According to a statement, Babylon's aim is to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi-dependant securities. The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics, aiming to be regarded as an easy, safe and efficient Gateway towards investing into the region.
Babylon Fund is an open-ended mutual fund that primarily invests into large-cap Iraqi-dependant securities, mainly listed on the stock exchanges both in Iraq and in other countries.
27 Aug 2007
Hedge Fund Company Launches Real Estate Marketing Tool
Hedge fund backed Terablitz recently announced the launch of Terabitz Home Snapshots, which, according to the company, "Give the real estate professional an innovative solution that enables them to more effectively build their client base, and help those clients buy or sell a home.
California-based Terabitz was founded in 2006 by father and son Ashfaq and Kamran Munshi. The company is funded by Tudor Capital, part of the Tudor Hedge Fund family.
Home Snapshots combine the traditional listing information with slide shows, neighborhood and market data, and dozens of other “bitz” of local information relevant to the property. Essentially, they create a “home page” for each property or neighborhood with which consumers can interact. Home Snapshots can be emailed, instant messaged, linked to on blogs or websites, and dynamically updated, making the entire experience richer and more collaborative.
“Home Snapshots represent the first of many Terabitz solutions that will drive the success of our broker partners,” said Ashfaq Munshi, CEO of Terabitz. “We offer superior technology that helps brokers acquire and retain top agents, while continually improving their performance. We are thrilled to be working with such a high-caliber partner like Intero who exemplifies excellence and innovation in the industry.”
Intero Real Estate Services is the first broker partner to utilize Home Snapshots, prominently displaying thousands of its property snapshots on Terabitz.com.
Brokers can easily publish their existing MLS listings as Home Snapshots by simply providing Terabitz standard content feeds.
Terabitz is an online resource for consumers evaluating a real estate transaction. Property listings, neighborhood highlights, local market data, and local service providers can be accessed, stored, and shared and after the property transaction.
California-based Terabitz was founded in 2006 by father and son Ashfaq and Kamran Munshi. The company is funded by Tudor Capital, part of the Tudor Hedge Fund family.
Home Snapshots combine the traditional listing information with slide shows, neighborhood and market data, and dozens of other “bitz” of local information relevant to the property. Essentially, they create a “home page” for each property or neighborhood with which consumers can interact. Home Snapshots can be emailed, instant messaged, linked to on blogs or websites, and dynamically updated, making the entire experience richer and more collaborative.
“Home Snapshots represent the first of many Terabitz solutions that will drive the success of our broker partners,” said Ashfaq Munshi, CEO of Terabitz. “We offer superior technology that helps brokers acquire and retain top agents, while continually improving their performance. We are thrilled to be working with such a high-caliber partner like Intero who exemplifies excellence and innovation in the industry.”
Intero Real Estate Services is the first broker partner to utilize Home Snapshots, prominently displaying thousands of its property snapshots on Terabitz.com.
Brokers can easily publish their existing MLS listings as Home Snapshots by simply providing Terabitz standard content feeds.
Terabitz is an online resource for consumers evaluating a real estate transaction. Property listings, neighborhood highlights, local market data, and local service providers can be accessed, stored, and shared and after the property transaction.
Islamic Financial Services Board Hosts Forum
The Islamic Financial Services Board (IFSB) and the Financial Stability Institute (FSI) of the Bank for International Settlements today announced the presentation of "The European Challenge" it will be the 2nd Forum on Islamic Financial Services.
The forum will be held on the 5 & 6 of December, 2007 in Frankfurt, Germany. Deutsche Bundesbank is supporting the Forum.
The 2nd "European Challenge" has been organised in response to the increasing interest shown in Islamic financial services within and among European nations. The Forum will touch on the overview of the Islamic financial services industry as well as the different approaches towards it's implementation across the globe.
On a more global perspective, the Forum will also serve as a platform to discuss the development of related global prudential regulations for the Islamic financial services industry developed by the IFSB in comparison to Basel II.
Secretary General of the IFSB, Professor Rifaat Ahmed Abdel Karim, commenting on the importance of holding a Forum that caters to the European market said "It is important for the IFSB to understand the different regional markets in our efforts to facilitate the sound and stable growth of the Islamic financial services industry at global level. This Forum aims to be an interactive platform for facilitating a better understanding of the Islamic financial services industry from a European perpective."
The Forum follows the success of the inaugural one which was held in Luxembourg in November 2005. The 1st Forum was supported by the Centrale Banque Du Luxembourg and attended by over 150 delegates from 26 countries.
This one is expected to attract participants from among senior supervisors, finance officers, financial analysts, compliance officers, accountants, auditors, retail and private bankers, investment advisors, lawyers and academicians.
The forum will be held on the 5 & 6 of December, 2007 in Frankfurt, Germany. Deutsche Bundesbank is supporting the Forum.
The 2nd "European Challenge" has been organised in response to the increasing interest shown in Islamic financial services within and among European nations. The Forum will touch on the overview of the Islamic financial services industry as well as the different approaches towards it's implementation across the globe.
On a more global perspective, the Forum will also serve as a platform to discuss the development of related global prudential regulations for the Islamic financial services industry developed by the IFSB in comparison to Basel II.
Secretary General of the IFSB, Professor Rifaat Ahmed Abdel Karim, commenting on the importance of holding a Forum that caters to the European market said "It is important for the IFSB to understand the different regional markets in our efforts to facilitate the sound and stable growth of the Islamic financial services industry at global level. This Forum aims to be an interactive platform for facilitating a better understanding of the Islamic financial services industry from a European perpective."
The Forum follows the success of the inaugural one which was held in Luxembourg in November 2005. The 1st Forum was supported by the Centrale Banque Du Luxembourg and attended by over 150 delegates from 26 countries.
This one is expected to attract participants from among senior supervisors, finance officers, financial analysts, compliance officers, accountants, auditors, retail and private bankers, investment advisors, lawyers and academicians.
Australian Hedge Fund Up $20 Million
HFA Holdings, an Australian hedge fund manager that manages more than $3 billion, announced a surge in annual profit, and says the outlook is very positive.
Paul Jensen, cheif Executive at HFA, said the outlook for the company remained positive despite recent equity market volatility. Annual profit was $20.3 million, up 288%, while normalised profit, excluding one-offs, was up 157%.
HFA, which listed on the Australian stock exchange in April 2006, said the result beat its prospectus forecast guidance of a $13.9 million profit, by 46%. The hedge fund manager also announced that they plan on reopeninf two of their funds for investment in the first half of fiscal 2008.
The strong result reflected continued inflows into its hedge fund products, plus two capital raisings during the year. The declining share price forced HFA to postpone an estimated $700 million cash-and-scrip takeover of US counterpart and long-time investment partner Lighthouse Investment Partners.
HFA previously told the market that it had taken short positions on the US sub-prime mortgage market and was therefore benefiting from the crisis, but that hasn't stopped its shares falling from $3.00 on July 25 to a low of $1.65 on August 15.
With offices in Sydney, Melbourne, Brisbane and executives based in Perth and Hobart, HFA is a specialist funds management company providing absolute return fund products to retail, wholesale and institutional investors throughout Australia.
Paul Jensen, cheif Executive at HFA, said the outlook for the company remained positive despite recent equity market volatility. Annual profit was $20.3 million, up 288%, while normalised profit, excluding one-offs, was up 157%.
HFA, which listed on the Australian stock exchange in April 2006, said the result beat its prospectus forecast guidance of a $13.9 million profit, by 46%. The hedge fund manager also announced that they plan on reopeninf two of their funds for investment in the first half of fiscal 2008.
The strong result reflected continued inflows into its hedge fund products, plus two capital raisings during the year. The declining share price forced HFA to postpone an estimated $700 million cash-and-scrip takeover of US counterpart and long-time investment partner Lighthouse Investment Partners.
HFA previously told the market that it had taken short positions on the US sub-prime mortgage market and was therefore benefiting from the crisis, but that hasn't stopped its shares falling from $3.00 on July 25 to a low of $1.65 on August 15.
With offices in Sydney, Melbourne, Brisbane and executives based in Perth and Hobart, HFA is a specialist funds management company providing absolute return fund products to retail, wholesale and institutional investors throughout Australia.
22 Aug 2007
TS Launches Second Fund After First Success
Single manager hedge fund ThinkStrategy Capital Management LLC. today announced the launch of the TS Multi-Strategy Fund LP Class B.
The new class is an unleveraged version of an existing and successful TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of TS's current investments from which we selected the best performers. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
This new class will add to TS's record in the preservation of capital while producing positive investment returns in all economic environments with the goal of producing consistent returns for investors.
ThinkStrategy Capital Management, LLC. is an alternative asset management firm, which aims to provide innovative investment strategies which generate consistent solid rates of return for investors with low levels of risk.
The new class is an unleveraged version of an existing and successful TS Multi-Strategy Fund LP Class A and will be based on a concentrated subset of TS's current investments from which we selected the best performers. This share class exhibits lower risk parameters in terms of standard deviation, as well as stronger Sharpe ratios.
This new class will add to TS's record in the preservation of capital while producing positive investment returns in all economic environments with the goal of producing consistent returns for investors.
ThinkStrategy Capital Management, LLC. is an alternative asset management firm, which aims to provide innovative investment strategies which generate consistent solid rates of return for investors with low levels of risk.
13 Aug 2007
Hedge Fund Sponsors North Pole Swim
Investec announced today that British explorer and endurance swimmer, Lewis Gordon Pugh successfully completed the extraordinary challenge of being the first man to swim at the Geographic North Pole.
The 1km swim took 18 minutes and 50 seconds in freezing temperatures of minus 1.8º centigrade –the coldest waters a human has ever swum in – and was conducted in accordance with Channel Swimming Association Rules in just Speedo briefs, cap and goggles. It took place at 02.00 on July15th (it’s daylight all hours).
Pugh’s endeavour, sponsored by Investec and named The Investec North Pole Challenge, was made to visibly demonstrate the devastating impacts of climate change on our planet.
Lewis Gordon Pugh, nicknamed the Polar Bear, said: “I hope my swim will inspire world leaders to take climate change seriously. The decisions which they make over the next few years will determine the biodiversity of our world. I want my children, and their children, to know that polar bears are still living in the Arctic - these creatures are on the front line up here.
“I am obviously ecstatic to have succeeded but this swim is a triumph and a tragedy - a triumph that Icould swim in such ferocious conditions but a tragedy that it’s possible to swim at the North Pole.”He described the swim: “The water was absolutely black. I shook Jørgen Amundsen’s hand and then plunged into the sea. It was like jumping into a dark black hole. It was frightening. The pain was immediate and felt like my body was on fire. I was in excruciating pain from beginning to end and I nearly quit on a few occasions. It was without doubt the hardest swim of my life.
Hendrik du Toit, Chief Executive Officer of Investec Asset Management said, “We congratulate Lewis on this milestone achievement. We hope this world first today will inspire people to take the battle against climate change seriously. It would be wonderful if in 50 years time,an 87-year-old Lewis were once again able to walk, rather than swim at the North Pole.
Investec Asset Management is a specialist investment manager, the fund manages in excess of $60 billion on behalf of third party clients. Investec is based in the UK and Southern Africa with an international client base from the Americas, Europe, Asia the Middle East and Africa.
The 1km swim took 18 minutes and 50 seconds in freezing temperatures of minus 1.8º centigrade –the coldest waters a human has ever swum in – and was conducted in accordance with Channel Swimming Association Rules in just Speedo briefs, cap and goggles. It took place at 02.00 on July15th (it’s daylight all hours).
Pugh’s endeavour, sponsored by Investec and named The Investec North Pole Challenge, was made to visibly demonstrate the devastating impacts of climate change on our planet.
Lewis Gordon Pugh, nicknamed the Polar Bear, said: “I hope my swim will inspire world leaders to take climate change seriously. The decisions which they make over the next few years will determine the biodiversity of our world. I want my children, and their children, to know that polar bears are still living in the Arctic - these creatures are on the front line up here.
“I am obviously ecstatic to have succeeded but this swim is a triumph and a tragedy - a triumph that Icould swim in such ferocious conditions but a tragedy that it’s possible to swim at the North Pole.”He described the swim: “The water was absolutely black. I shook Jørgen Amundsen’s hand and then plunged into the sea. It was like jumping into a dark black hole. It was frightening. The pain was immediate and felt like my body was on fire. I was in excruciating pain from beginning to end and I nearly quit on a few occasions. It was without doubt the hardest swim of my life.
Hendrik du Toit, Chief Executive Officer of Investec Asset Management said, “We congratulate Lewis on this milestone achievement. We hope this world first today will inspire people to take the battle against climate change seriously. It would be wonderful if in 50 years time,an 87-year-old Lewis were once again able to walk, rather than swim at the North Pole.
Investec Asset Management is a specialist investment manager, the fund manages in excess of $60 billion on behalf of third party clients. Investec is based in the UK and Southern Africa with an international client base from the Americas, Europe, Asia the Middle East and Africa.
9 Aug 2007
Hedge Funds July Performance
According to a report from Chicago-based Hedge Fund Research Inc., hedge funds globally returned 0.49% in July. The gain, based on a sample of managers among the 6,500 surveyed, brought the average 2007 advance to 8%.
Macro-fund managers, who wager on trends in stocks, bonds and currencies worldwide, trailed peers in July with a 0.34% increase, bringing their returns to 5.9% on the year.
Early estimates from the HFN Hedge Fund Aggregate Average show +0.29% in July, the increase was the 2nd positive month in a row for hedge funds when the S&P 500 has been negative and 12th positive month in a row overall. Through the first seven months of 2007 the Aggregate is +7.65%, considerably outperforming the S&P 500 Total Return which ended June -3.10% and +6.01% YTD.
The influence of the difficulties facing subprime borrowers and lenders over the last few months began to be felt across most credit markets in July and filtered into equity markets near month's end. While there have been some high profile fund meltdowns in July, the reality of the hedge fund world is that despite their visibility, these funds under extreme stress represent a small percentage of a vast and diverse industry.
Whether when the dust settles the aggregate of all hedge funds is slightly positive or negative, the focus should be on the continuing significant outperformance of the group from broad equity markets. While results are still coming in, it appears performance in July was driven by funds with exposure to emerging markets and those able to take advantage of strong interest rate and commodity moves. The HFN Emerging Markets Average was +2.47% in July and is +14.51% YTD and was aided by strong moves in China, India and Russia's equity markets. The HFN Latin America Average was +2.49% in July and +19.81% YTD.
Macro-fund managers, who wager on trends in stocks, bonds and currencies worldwide, trailed peers in July with a 0.34% increase, bringing their returns to 5.9% on the year.
Early estimates from the HFN Hedge Fund Aggregate Average show +0.29% in July, the increase was the 2nd positive month in a row for hedge funds when the S&P 500 has been negative and 12th positive month in a row overall. Through the first seven months of 2007 the Aggregate is +7.65%, considerably outperforming the S&P 500 Total Return which ended June -3.10% and +6.01% YTD.
The influence of the difficulties facing subprime borrowers and lenders over the last few months began to be felt across most credit markets in July and filtered into equity markets near month's end. While there have been some high profile fund meltdowns in July, the reality of the hedge fund world is that despite their visibility, these funds under extreme stress represent a small percentage of a vast and diverse industry.
Whether when the dust settles the aggregate of all hedge funds is slightly positive or negative, the focus should be on the continuing significant outperformance of the group from broad equity markets. While results are still coming in, it appears performance in July was driven by funds with exposure to emerging markets and those able to take advantage of strong interest rate and commodity moves. The HFN Emerging Markets Average was +2.47% in July and is +14.51% YTD and was aided by strong moves in China, India and Russia's equity markets. The HFN Latin America Average was +2.49% in July and +19.81% YTD.
All Business Schools Launch Finance Career Resource Guide
With investment banking giant UBS forecasting the world economy to grow about 3.5 percent each year and rapid proliferation of multi-billion dollar hedge funds and private equity funds, All Business Schools announced the launch of it Finance Career Resource Guide. With pages devoted to both specific finance career paths and different types of finance degrees, the guide provides crucial information for those considering a career in one of the fastest growing and most lucrative industries.
Doug Rosenberg, product manager for All Business Schools, commented, "With job options ranging from high-tech, high-status investment banking to personable, interactive financial planning, there are a number of ways people can take advantage of the industry's consistent growth."
Finance salaries are among the highest in the business world, Rosenberg elaborates, saying, "finance is one of the few fields in which the earning potential is almost limitless."
To give readers a clear look at both aspects of entering a career in hedge fund finance, the resource center is organized into a finance degrees section and a finance careers section. The degrees section presents an overview of finance bachelor's, master's, MBA and PhD degrees, providing basic facts and sample program curricula. The careers section discusses finance careers at a general level and also breaks down three of the most popular finance careers--investment banking, corporate finance and financial planning--into career path charts that present a snapshot of entry-, mid- and high-level positions.
All Business Schools is a comprehensive online publisher of accredited business degree programs and business career resources. Since 2002, All Business Schools has been helping match millions of highly qualified prospective students with the schools that best meet their education needs.
Doug Rosenberg, product manager for All Business Schools, commented, "With job options ranging from high-tech, high-status investment banking to personable, interactive financial planning, there are a number of ways people can take advantage of the industry's consistent growth."
Finance salaries are among the highest in the business world, Rosenberg elaborates, saying, "finance is one of the few fields in which the earning potential is almost limitless."
To give readers a clear look at both aspects of entering a career in hedge fund finance, the resource center is organized into a finance degrees section and a finance careers section. The degrees section presents an overview of finance bachelor's, master's, MBA and PhD degrees, providing basic facts and sample program curricula. The careers section discusses finance careers at a general level and also breaks down three of the most popular finance careers--investment banking, corporate finance and financial planning--into career path charts that present a snapshot of entry-, mid- and high-level positions.
All Business Schools is a comprehensive online publisher of accredited business degree programs and business career resources. Since 2002, All Business Schools has been helping match millions of highly qualified prospective students with the schools that best meet their education needs.
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