Hedge fund manager Rosseau Asset Management Ltd. and certain related parties have filed a dissident's proxy circular (the "Dissident's Circular") to Noront Resources Ltd., in which the hedge fund group controls over approximately 9.2% of common shares.
Rosseau asks Noront's shareholders to vote against the re-election of the Company's current Board of Directors and instead vote to elect a new slate of directors at the upcoming annual meeting of shareholders scheduled to be held on October 28, 2008.
During recent meetings between Rosseau and Noront's management, the hedge fund manager indicated it wanted significant changes to Noront's Board of Directors and some senior management.
Rosseau rejected Noront's compromise proposal and has commenced its proxy fight with the filing of the Dissident's Circular, saying, "Rosseau's action is not in the best interest of shareholders. It is an opportunistic attempt, in light of extraordinary recent market conditions......Norent will respond (to the circular) shortly."
10 Oct 2008
Aviva Announces Increased Hedges
UK asset management group and hedge fund investor Aviva plc ("Aviva") is holding an investor and analyst briefing to announce the strengthening of its protection against further falls in global equity markets through increased hedges.
Such that even in the event of a further 40% fall in equity markets, its surplus regulatory capital would only be reduced by £0.7 billion ($1.1 billion). This is a significant improvement when contrasted with the position as at 30 June 2008 when a 40% fall in equity markets would have reduced the surplus regulatory capital by £1.3 billion ($2.2 billion).
"We are focused on accelerating transformational change to deliver a unified and more profitable company," Andrew Moss, CEO, commented, "This is clearly demonstrated both by the creation of Aviva Investors and the reshaping of our UK General Insurance business to focus on insurance excellence and deliver the promise of scale."
Moss also said, "We are pleased to confirm that in the face of the recent market turmoil, Aviva's capital position remains strong. Our active capital management ensures the group remains robust in the face of the current economic adversity, providing security for our customers and investors alike, and ensuring that the group is well positioned as confidence returns."
Moss will take the opportunity to provide an update on Aviva's continuing strong position in the current economic environment with Aviva's surplus regulatory capital estimated to be £1.9 billion ($3.2 billion) at 30 September 2008, compared to £1.8 billion ($3 billion) at 30 June 2008.
Such that even in the event of a further 40% fall in equity markets, its surplus regulatory capital would only be reduced by £0.7 billion ($1.1 billion). This is a significant improvement when contrasted with the position as at 30 June 2008 when a 40% fall in equity markets would have reduced the surplus regulatory capital by £1.3 billion ($2.2 billion).
"We are focused on accelerating transformational change to deliver a unified and more profitable company," Andrew Moss, CEO, commented, "This is clearly demonstrated both by the creation of Aviva Investors and the reshaping of our UK General Insurance business to focus on insurance excellence and deliver the promise of scale."
Moss also said, "We are pleased to confirm that in the face of the recent market turmoil, Aviva's capital position remains strong. Our active capital management ensures the group remains robust in the face of the current economic adversity, providing security for our customers and investors alike, and ensuring that the group is well positioned as confidence returns."
Moss will take the opportunity to provide an update on Aviva's continuing strong position in the current economic environment with Aviva's surplus regulatory capital estimated to be £1.9 billion ($3.2 billion) at 30 September 2008, compared to £1.8 billion ($3 billion) at 30 June 2008.
9 Oct 2008
Global Future Analysis Review
I have been reading the somewhat lengthy (aprox.250 pages) Global Future Analysis report by the Planck Foundation, I’ll try to do a short(ish) review.
“It has been said that there are three types of people: Those who make things happen, those who watch things happen and those who wonder what happened,” it says on the cover of the report.
The Global Future Analysis report covers the interfacing/interaction between the energy crisis and credit crisis, which has been making headlines globaly, also analyzed is the water crisis and its effect on food prices.
The energy crisis has two effects, according to the report, energy will become much more expensive and no longer abundantly available. Firstly it will give a reach/distance contraction within the economy (less transport and less mobility, due to high energy prices). Secondly, due the fact that energy is used for everything, expenses will rise.
“You need to understand currency, credit, minerals, energy and water. Watching the news without some basic knowledge of those five is useless.” The report says, “knowledge of those five make the past, present and future clearer.”
The analysis is very up to date, covering the current dynamic credit and energy situation. Also the governmental bail-out fund (which it explains in depth, non-favourably) proposed by US Treasury Secretary Henry Paulson which was turned down on September 29th by the House of Representatives.
”This big figure gambling can only lead to a disconnection with the rest of the world economy for the US, UK/Europe and Japan,” the report says, “due the fact that Euro and the Yen have today the highest possible dollar reserves ever, certainly since their massive support of the dollar of the last month. The Central Banks of Europe and Japan thought that they could fix the US problems overnight in buying lots of dollars since mid July till mid September.”
The report goes on to say, “production gives real payment power, that’s something the US economy is learning the hard way. Increasing production isn’t easy in these times of expensive energy. But combining the bail-out with production increase could do the job.”
One bright spot in all this, it says, “The Energy Crisis certainly will ‘bring the jobs back home’. Long distance travel will also decline (stimulating the national leisure industry) according to the report. Air travel, air transport, road transport and commuting are where we will see the effects of high oil prices instantly. Local is to be king of the 21st century.
The report approves of T. Boone Pickens proposal to re-energize America using peakoil/gas/coal, the benefits of wind energy and the exporting wealth facets (trade deficits and foreign policy) of oil imports. On the other side of the world, it also talks about the Chinese government deciding that sustainable prosperity is the most wanted/economic direction for the 21st century.
”Bail-outs without any structural change it will lead to nothing than more problems. And yes, Obama has a point when he said that mortgage bail-outs during the ‘30ties has proven to be successful. But those were other days: Back then there was no Energy Crisis that put restrictions to growth, something we certainly have now.”
The name of the commercial version is ‘The Perfect Storm: when the energy crisis joins the credit crisis.
“It has been said that there are three types of people: Those who make things happen, those who watch things happen and those who wonder what happened,” it says on the cover of the report.
The Global Future Analysis report covers the interfacing/interaction between the energy crisis and credit crisis, which has been making headlines globaly, also analyzed is the water crisis and its effect on food prices.
The energy crisis has two effects, according to the report, energy will become much more expensive and no longer abundantly available. Firstly it will give a reach/distance contraction within the economy (less transport and less mobility, due to high energy prices). Secondly, due the fact that energy is used for everything, expenses will rise.
“You need to understand currency, credit, minerals, energy and water. Watching the news without some basic knowledge of those five is useless.” The report says, “knowledge of those five make the past, present and future clearer.”
The analysis is very up to date, covering the current dynamic credit and energy situation. Also the governmental bail-out fund (which it explains in depth, non-favourably) proposed by US Treasury Secretary Henry Paulson which was turned down on September 29th by the House of Representatives.
”This big figure gambling can only lead to a disconnection with the rest of the world economy for the US, UK/Europe and Japan,” the report says, “due the fact that Euro and the Yen have today the highest possible dollar reserves ever, certainly since their massive support of the dollar of the last month. The Central Banks of Europe and Japan thought that they could fix the US problems overnight in buying lots of dollars since mid July till mid September.”
The report goes on to say, “production gives real payment power, that’s something the US economy is learning the hard way. Increasing production isn’t easy in these times of expensive energy. But combining the bail-out with production increase could do the job.”
One bright spot in all this, it says, “The Energy Crisis certainly will ‘bring the jobs back home’. Long distance travel will also decline (stimulating the national leisure industry) according to the report. Air travel, air transport, road transport and commuting are where we will see the effects of high oil prices instantly. Local is to be king of the 21st century.
The report approves of T. Boone Pickens proposal to re-energize America using peakoil/gas/coal, the benefits of wind energy and the exporting wealth facets (trade deficits and foreign policy) of oil imports. On the other side of the world, it also talks about the Chinese government deciding that sustainable prosperity is the most wanted/economic direction for the 21st century.
”Bail-outs without any structural change it will lead to nothing than more problems. And yes, Obama has a point when he said that mortgage bail-outs during the ‘30ties has proven to be successful. But those were other days: Back then there was no Energy Crisis that put restrictions to growth, something we certainly have now.”
The name of the commercial version is ‘The Perfect Storm: when the energy crisis joins the credit crisis.
Altos Ventures Leads $5.7 Million Mobile Funding
Trilibis Mobilen announced today that it has raised $5.7 million in Series B financing.
Alternative Investor Altos Ventures led the round with participation from ATA Ventures and several early individual investors. Ho Nam, General Partner and Co-Founder of Altos Ventures, has joined the board of Trilibis Mobile. Mike Hodges, Managing Director of ATA Ventures, has joined as a board observer.
"Trilibis has done a great job of establishing relationships with Tier 1 carriers and proving out the SmartPath platform with key content partners," said Ho Nam of Altos Ventures. "With this capital infusion, we look forward to working with the Trilibis team to continue to take market share and grow the business."
The newly raised capital will be used to fund development of the next generation of SmartPath to include support for native applications for BlackBerry, iPhone, Windows Mobile and Android devices. Additionally, Trilibis will devote some of the capital to boost its marketing and sales efforts.
"The tremendous increase in consumer adoption of smart phones has fueled the growth in mobile data services usage," said Alex Panelli, CEO of Trilibis. "Our objective is to capitalize on this emerging trend."
With this funding, Trilibis has raised a total of $8.3 million since inception.
Altos Ventures is a first-stage venture capital firm focused on leading investments in emerging technology companies with the goal of building market leaders. Altos manages $200 million in dedicated first-stage capital on behalf of leading endowment, fund-of-funds, financial and family office investors based in the United States and Asia. Altos Ventures is based in Menlo Park, California. Additional information is available at www.altosventures.com.
Alternative Investor Altos Ventures led the round with participation from ATA Ventures and several early individual investors. Ho Nam, General Partner and Co-Founder of Altos Ventures, has joined the board of Trilibis Mobile. Mike Hodges, Managing Director of ATA Ventures, has joined as a board observer.
"Trilibis has done a great job of establishing relationships with Tier 1 carriers and proving out the SmartPath platform with key content partners," said Ho Nam of Altos Ventures. "With this capital infusion, we look forward to working with the Trilibis team to continue to take market share and grow the business."
The newly raised capital will be used to fund development of the next generation of SmartPath to include support for native applications for BlackBerry, iPhone, Windows Mobile and Android devices. Additionally, Trilibis will devote some of the capital to boost its marketing and sales efforts.
"The tremendous increase in consumer adoption of smart phones has fueled the growth in mobile data services usage," said Alex Panelli, CEO of Trilibis. "Our objective is to capitalize on this emerging trend."
With this funding, Trilibis has raised a total of $8.3 million since inception.
Altos Ventures is a first-stage venture capital firm focused on leading investments in emerging technology companies with the goal of building market leaders. Altos manages $200 million in dedicated first-stage capital on behalf of leading endowment, fund-of-funds, financial and family office investors based in the United States and Asia. Altos Ventures is based in Menlo Park, California. Additional information is available at www.altosventures.com.
Hedge Funds Outperform Equity in September
Hedge funds measured by both the Greenwich Global Hedge Fund Index ("GGHFI") and the Greenwich Composite Investable Index ("GI2") significantly outperformed equity indices despite posting their greatest losses since August 1998 during September.
"It was a perfect storm for both credit/equity markets and hedge funds in September," said Thomas Whelan, Greenwich CEO, "The already deflated values of financial firms provided the perfect trap for value investors while government intervention limited the ability of hedge funds to effectively mitigate their risk. Simultaneously, the continued freezing of credit markets combined with investor redemptions forced fixed-income funds to liquidate or otherwise mark down assets at depressed prices. The results of the market turmoil and unpredictable regulatory environment are evident in their returns this month."
Long/Short Equity managers fared better than both US and foreign equity markets during the month, but still were subject to unpredictable market movements, losing -6.69%. Both Growth and Value funds struggled to find profitable trades, returning -8.16% and -7.05%, respectively. Short Selling managers by contrast enjoyed their most profitable month this year, advancing +9.27% on average. Year-to-date, Short Selling funds have gained 17% and remain the best performing subsector of hedge fund strategies.
Market Neutral funds were not immune to market forces during September, as they felt the effects of dysfunctional credit markets, declining -4.49%.
Despite the marked weakness in hedge funds in September, not all hedge fund strategy groups moved lower for the month. Directional Trading funds advanced by +0.51% on average, led by Futures managers who capitalized on declining commodity values. Macro managers did not fare as well, losing -3.62% on the month.
Specialty Strategy managers were the weakest performing strategy group for the month of September, with funds losing -7.33% on average. Emerging Markets funds were once again the main reason behind the losses as these managers shed nearly 10% during the month.
"It was a perfect storm for both credit/equity markets and hedge funds in September," said Thomas Whelan, Greenwich CEO, "The already deflated values of financial firms provided the perfect trap for value investors while government intervention limited the ability of hedge funds to effectively mitigate their risk. Simultaneously, the continued freezing of credit markets combined with investor redemptions forced fixed-income funds to liquidate or otherwise mark down assets at depressed prices. The results of the market turmoil and unpredictable regulatory environment are evident in their returns this month."
Long/Short Equity managers fared better than both US and foreign equity markets during the month, but still were subject to unpredictable market movements, losing -6.69%. Both Growth and Value funds struggled to find profitable trades, returning -8.16% and -7.05%, respectively. Short Selling managers by contrast enjoyed their most profitable month this year, advancing +9.27% on average. Year-to-date, Short Selling funds have gained 17% and remain the best performing subsector of hedge fund strategies.
Market Neutral funds were not immune to market forces during September, as they felt the effects of dysfunctional credit markets, declining -4.49%.
Despite the marked weakness in hedge funds in September, not all hedge fund strategy groups moved lower for the month. Directional Trading funds advanced by +0.51% on average, led by Futures managers who capitalized on declining commodity values. Macro managers did not fare as well, losing -3.62% on the month.
Specialty Strategy managers were the weakest performing strategy group for the month of September, with funds losing -7.33% on average. Emerging Markets funds were once again the main reason behind the losses as these managers shed nearly 10% during the month.
8 Oct 2008
The Group Of Thirty Issues Supervisory Report
The Group of Thirty released a new report, 'The Structure of Financial Supervision: Approaches and Challenges in a Global Marketplace'.
The report was issued after the meeting of G7 finance ministers and central bank governors in Washington DC. The Group of Thirty is an international body composed of central bank governors, leading economists, and private financial sector experts,
"The financial turmoil that has unfolded over the last year has tested the ability of regulatory authorities to respond effectively to financial crises. It is evident that a number of countries need to revise and reform financial regulatory structures," said Paul Volcker, Chairman of the Group of Thirty's Board of Trustees.
Volcker underscored that improvement in regulatory approaches is essential at the national and cross-border levels. The G30 report compares and analyses the financial regulatory approaches of 17 jurisdictions, including the UK, the US and Australia, in order to illustrate the implications of the four principal models of supervisory oversight: (1) the Institutional Approach, (2) the Functional Approach, (3) the Integrated Approach, and (4) the Twin Peaks Approach.
The US structure, which falls outside of these four approaches, combines institutional and functional approaches with the added complexity of a number of state level agencies and actors.
Roger W Ferguson, President and CEO of TIAA-CREF, former Vice Chairman of the US Federal Reserve Board and the Vice Chairman of the G30 Working Group, said, "As we start to re-examine regulatory structures, the G30 report can play a role by building the fact base that regulators, politicians, and financial market participants will consider."
In March, the US Treasury released its 'Blueprint for a Modernized Financial Regulatory Structure', which proposes a major restructuring of financial supervision toward a regulation by objectives approach, in some ways similar to the twin peaks model to supervision and regulation. The UK has already introduced modifications in its highly integrated approach.
In preparing the report, the G30 conducted interviews with key officials in the relevant jurisdictions, as well as practitioners, regulated parties, and those who may have been involved historically in the development of the current regulatory arrangements.
The report was issued after the meeting of G7 finance ministers and central bank governors in Washington DC. The Group of Thirty is an international body composed of central bank governors, leading economists, and private financial sector experts,
"The financial turmoil that has unfolded over the last year has tested the ability of regulatory authorities to respond effectively to financial crises. It is evident that a number of countries need to revise and reform financial regulatory structures," said Paul Volcker, Chairman of the Group of Thirty's Board of Trustees.
Volcker underscored that improvement in regulatory approaches is essential at the national and cross-border levels. The G30 report compares and analyses the financial regulatory approaches of 17 jurisdictions, including the UK, the US and Australia, in order to illustrate the implications of the four principal models of supervisory oversight: (1) the Institutional Approach, (2) the Functional Approach, (3) the Integrated Approach, and (4) the Twin Peaks Approach.
The US structure, which falls outside of these four approaches, combines institutional and functional approaches with the added complexity of a number of state level agencies and actors.
Roger W Ferguson, President and CEO of TIAA-CREF, former Vice Chairman of the US Federal Reserve Board and the Vice Chairman of the G30 Working Group, said, "As we start to re-examine regulatory structures, the G30 report can play a role by building the fact base that regulators, politicians, and financial market participants will consider."
In March, the US Treasury released its 'Blueprint for a Modernized Financial Regulatory Structure', which proposes a major restructuring of financial supervision toward a regulation by objectives approach, in some ways similar to the twin peaks model to supervision and regulation. The UK has already introduced modifications in its highly integrated approach.
In preparing the report, the G30 conducted interviews with key officials in the relevant jurisdictions, as well as practitioners, regulated parties, and those who may have been involved historically in the development of the current regulatory arrangements.
Potential for Hedge Fund Returns Is Still There For Investors - Report
According to a recent survey conducted by the Association of Investment Companies (AIC), a poll of 1,300 sophisticated private investors showed that 15% believed that hedge funds offer the potential for strong returns in the current environment. However they are also concerned about their perceived lack of transparency (17%) and riskiness (17%).
Investors are also cautious about hedge funds because they believe that they are not regulated (14%), and are concerned about the reputation for high charges (12%). Some investors also find them confusing (11%) and believe they are only accessible to the wealthy (5%).
Although some sophisticated private investors are wary of hedge funds, 6% of those surveyed are already investing in hedge funds, 5% have invested in the past and 3% are planning to invest in the future. Interestingly, nearly half (46%) of investors believe they may possibly invest in hedge funds in the future whilst only 29% of investors surveyed would never invest in hedge funds.
"Many of these investors' concerns over hedge funds are addressed through the listed hedge fund and fund of hedge funds sectors," Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC) said, "The listed structure of closed ended hedge funds and fund of funds means investors have access to a much higher level of transparency. Shares in listed funds are available on the stock market just like any other share so they are available to those of modest means as well as the super wealthy."
"This is a real growth area of the industry with the hedge fund sector making up 65% of the assets raised this year in the investment company sector. However, it is still a young sector, so long-term performance records are not available for the majority. Investors need to do their homework to make sure they select the right fund for them in this diverse sector and if they are unsure they should take independent financial advice," she concluded.
Ian Plenderleith, Chairman of BH Macro, said, "Hedge funds who can maintain the necessary standards of investment expertise and risk management have demonstrated that they can deliver superior returns on a consistent basis. Listed hedge fund vehicles give a wider range of investors access to alternative investment strategies through an avenue they are familiar with. They get the benefit of the regulatory safeguards and disclosure obligations, and the secondary market liquidity that go with stock exchange listing."
Robin Bowie, Chairman of Dexion Capital, said: "When dislocation in financial markets reaches the present level, it provides an ideal environment for hedge funds, which are well-placed to make opportunistic investments where they recognise value and can hedge out the market risk. Some of those positions will be illiquid, which will be unsuitable for most managers of open-ended funds. Closed-ended funds employ ‘permanent capital', raised on the stock exchange, which allow managers to blend liquid and illiquid assets and take advantage of the current mismatch in the markets. In essence, closed-ended funds bring liquidity to illiquid situations."
Investors are also cautious about hedge funds because they believe that they are not regulated (14%), and are concerned about the reputation for high charges (12%). Some investors also find them confusing (11%) and believe they are only accessible to the wealthy (5%).
Although some sophisticated private investors are wary of hedge funds, 6% of those surveyed are already investing in hedge funds, 5% have invested in the past and 3% are planning to invest in the future. Interestingly, nearly half (46%) of investors believe they may possibly invest in hedge funds in the future whilst only 29% of investors surveyed would never invest in hedge funds.
"Many of these investors' concerns over hedge funds are addressed through the listed hedge fund and fund of hedge funds sectors," Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC) said, "The listed structure of closed ended hedge funds and fund of funds means investors have access to a much higher level of transparency. Shares in listed funds are available on the stock market just like any other share so they are available to those of modest means as well as the super wealthy."
"This is a real growth area of the industry with the hedge fund sector making up 65% of the assets raised this year in the investment company sector. However, it is still a young sector, so long-term performance records are not available for the majority. Investors need to do their homework to make sure they select the right fund for them in this diverse sector and if they are unsure they should take independent financial advice," she concluded.
Ian Plenderleith, Chairman of BH Macro, said, "Hedge funds who can maintain the necessary standards of investment expertise and risk management have demonstrated that they can deliver superior returns on a consistent basis. Listed hedge fund vehicles give a wider range of investors access to alternative investment strategies through an avenue they are familiar with. They get the benefit of the regulatory safeguards and disclosure obligations, and the secondary market liquidity that go with stock exchange listing."
Robin Bowie, Chairman of Dexion Capital, said: "When dislocation in financial markets reaches the present level, it provides an ideal environment for hedge funds, which are well-placed to make opportunistic investments where they recognise value and can hedge out the market risk. Some of those positions will be illiquid, which will be unsuitable for most managers of open-ended funds. Closed-ended funds employ ‘permanent capital', raised on the stock exchange, which allow managers to blend liquid and illiquid assets and take advantage of the current mismatch in the markets. In essence, closed-ended funds bring liquidity to illiquid situations."
7 Oct 2008
Airline Files For Chap.11 After Petters Arrest
Holiday airline Sun Country filed for bankruptcy yesterday, just 3 days after the arrest of investor Thomas Petters, founder of Petters Group Worldwide, the firm that owns Sun Country among other investments.
Petters was charged with mail and wire fraud, money laundering and obstructing justice.
"We were forced to take this action as a result of recent events at Petters Group Worldwide," said Sun Country Chairman and CEO Stan Gadek. The airline said that it would continue to fly its regular schedule.
A federal judge in Minneapolis order Petters to be held without bail after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country. A hearing is scheduled for Tuesday.
Petters has stated that he plans to fight to be released from custody and maintains his innocence.
Petters was charged with mail and wire fraud, money laundering and obstructing justice.
"We were forced to take this action as a result of recent events at Petters Group Worldwide," said Sun Country Chairman and CEO Stan Gadek. The airline said that it would continue to fly its regular schedule.
A federal judge in Minneapolis order Petters to be held without bail after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country. A hearing is scheduled for Tuesday.
Petters has stated that he plans to fight to be released from custody and maintains his innocence.
6 Oct 2008
Blackstone Closes China Investment in Bluestar
State-owned company China National Chemical Corporation (ChemChina) and hedge fund manager the Blackstone Group announced the closing of Blackstone’s investment in ChemChina subsidiary, China National Bluestar Corporation.
Bluestar has also completed its group restructuring and has registered as a Sino-foreign joint stock limited company. Blackstone will invest up to $600 million in Bluestar for a 20% stake. Two Senior Managing Directors of Blackstone, Antony Leung and Ben Jenkins, will join the board of Bluestar.
Headquartered in Beijing, ChemChina was founded in 2004, and administrated by the State-owned Assets Supervision and Administration Commission of the State Council of China. Through fast growth in the last 4 years, ChemChina is now a large group corporation with both asset value and revenue exceeding RMB100 billion ($14.6 billion). ChemChina is ranked 35th among China's top 500 corporations, according to National Bureau of Statistics of China.
The Blackstone Group's alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
Bluestar has also completed its group restructuring and has registered as a Sino-foreign joint stock limited company. Blackstone will invest up to $600 million in Bluestar for a 20% stake. Two Senior Managing Directors of Blackstone, Antony Leung and Ben Jenkins, will join the board of Bluestar.
Headquartered in Beijing, ChemChina was founded in 2004, and administrated by the State-owned Assets Supervision and Administration Commission of the State Council of China. Through fast growth in the last 4 years, ChemChina is now a large group corporation with both asset value and revenue exceeding RMB100 billion ($14.6 billion). ChemChina is ranked 35th among China's top 500 corporations, according to National Bureau of Statistics of China.
The Blackstone Group's alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds.
HedgeCo Launches Hedge Fund Calculator
HedgeCo Networks LLC today announced the launch of the next generation online analytical and reporting tool, the Hedge Fund Calculator. Designed for hedge funds and funds of hedge funds, the calculator is available for a monthly or annual subscription service. HedgeCo says, "(the calculator) facilitates the rapid computation of quantitative statistics, net performance numbers and the creation of branded marketing materials."
Aaron Wormus, Managing Director of HedgeCo Networks said, "Through the HedgeCo.Net hedge fund database and Hedge Fund Websites platform, we have worked with thousands of funds worldwide to create statistical performance reports and compelling investor presentations."
"By combining our deep experience with cutting edge development technology, we have been able to deliver a powerful and cost-effective tool that can dramatically enhance marketing and reporting capabilities at any hedge fund firm." Wormus explained.
Key features of the Hedge Fund Calculator include:
* Online Access - Easily create, modify and distribute reports from any web-connected PC
* Branded & Customized Tearsheets - Quickly update fund information, customize statistics, select data points and generate PDF reports with a simple 3-click process
* Contact Manager - Efficiently manage investor and prospective investor lists, email fund marketing materials and track leads with integrated, easy-to-use contact management
* Benchmark Analysis - Compare fund performance to industry standard benchmarks, HedgeCo Indices or add your own benchmarks.
Agecroft Hires Hedge Fund Manager
Hedge fund third party marketing firm, Agecroft Partners has hired its 5th Managing Director, Jarratt Ramsey. Jarratt spent the last 11 years at multi-billion hedge fund Chesapeake Capital Management.
"Jarratt is a wonderful addition to our firm. Our business model is to introduce large well established hedge funds in a consultative manner to institutional investors," Agecroft Partners' Managing Partner Don Steinbrugge said, "It is imperative that the members of our firm are highly technically competent. Jarratt's educational and professional experiences are very impressive. Furthermore, his knowledge of the hedge fund industry, and security markets should give him a lot of credibility with large institutional investors."
Jarratt's responsibilities will include assisting with due diligence on potential hedge funds the firm may represent and introducing the firm's hedge fund clients to large institutional investors located within the Northern region of the United States.
Agecroft Partners recently received the 2008 Third Party Marketer of the Year award. It was founded by Donald A Steinbrugge, CFA, a Founding Principal of Andor Capital Management when it was the 2nd largest hedge fund firm in the world. Don was also Head of Institutional Sales for Merrill Lynch Investment Managers. Agecroft Partners, LLC is a Member FINRA and SIPC.
"Jarratt is a wonderful addition to our firm. Our business model is to introduce large well established hedge funds in a consultative manner to institutional investors," Agecroft Partners' Managing Partner Don Steinbrugge said, "It is imperative that the members of our firm are highly technically competent. Jarratt's educational and professional experiences are very impressive. Furthermore, his knowledge of the hedge fund industry, and security markets should give him a lot of credibility with large institutional investors."
Jarratt's responsibilities will include assisting with due diligence on potential hedge funds the firm may represent and introducing the firm's hedge fund clients to large institutional investors located within the Northern region of the United States.
Agecroft Partners recently received the 2008 Third Party Marketer of the Year award. It was founded by Donald A Steinbrugge, CFA, a Founding Principal of Andor Capital Management when it was the 2nd largest hedge fund firm in the world. Don was also Head of Institutional Sales for Merrill Lynch Investment Managers. Agecroft Partners, LLC is a Member FINRA and SIPC.
2 Oct 2008
Mooring Hedge Fund Gains Amid Losses
Mooring Financial Corp., a private investment firm specializing in the management of alternative assets, has seen its hedge fund, the Mooring Intrepid Opportunity Fund gain 37% year-to-date, while global hedge fund returns have declined almost 10% this year.The fund gained by capitalizing on corrections in the high-yield corporate bond, commercial mortgage-backed securities and subprime residential mortgage markets. The Fund has gained 132.1% since its inception on March 1, 2007, the Fund’s highest gain on investment to date.
"The centerpiece of our objective for Mooring Intrepid Opportunity Fund is the expectation of a repricing of risk in the credit markets," said president and founder John Jacquemin, "We mapped out a strategy two years ago in anticipation of the credit markets debacle now taking place. The fund’s positions are volatile and aggressive, and appropriate only for investors who understand these risks."
In recent weeks, the fund has begun to take additional bearish positions in financial and commercial real estate stocks as well as exchange traded funds in anticipation of continued deterioration within these markets.
"We believed strongly that the credit markets had reached a point of excess never before experienced in modern history." Jacqumin explained, "and we felt strongly that the risk/reward ratio was very much in our favor. This has proven to be the case."
The firm has acquired and managed more than $2 billion of financial assets since inception in 1982. Mooring Financial Corporation manages four funds across different asset classes, including distressed commercial loans, real estate tax liens, publicly traded equities and credit derivatives.
1 Oct 2008
Pharos Funds Resilient, But Drop With Russian Market
Conservatively positioned given the high level of stress that existed on the global financial system, the 3 Pharos Russia Funds' current strategy uses alpha generation which comes from a combination of stock selection and active use of hedging tools available in the marketplace.
The three funds are showing the most resilience among funds in the Russia & CIS universe year-to-date. However, during the month of August, the Pharos Russia Fund was down 7.8%, the Pharos Small Cap Fund was down 8.8% and the Pharos Gas Investment Fund was down 2.3%. Meanwhile the MSCI Russia Index was down 14.7% over the same period.
August saw a continuation in the decline in markets globally, with Russian markets succumbing to the sell-off in global credit markets, continued pressure on commodities and dollar strength.
The Russian authorities have shown a willingness to intervene to protect against domestic dislocations caused by distressed selling. The Russian state has announced a liquidity package of more than $150bn.
It has increased its deposits held at the largest banks and offered them repo lending that references inflated asset valuations. The state-owned Vneshekenom Bank will also provide up to $50bn to Russian companies and banks to help redeem the $65bn of external debt coming due through 1Q'09. Meanwhile the interbank lending market is being supported by a government guarantee against defaults.
"Given the relative size of the economy," Pharos says, "Russia is better positioned than most to withstand a downturn in credit markets with its $581bn of reserves and over $200bn Stabilization Fund."
"Valuations are compelling and we expect to take advantage of these opportunities. We look for catalysts to the market to guide our entry points, such as stability in the industrial commodities markets, a reversal in measures of global risk aversion and global monetary easing."
The three funds are showing the most resilience among funds in the Russia & CIS universe year-to-date. However, during the month of August, the Pharos Russia Fund was down 7.8%, the Pharos Small Cap Fund was down 8.8% and the Pharos Gas Investment Fund was down 2.3%. Meanwhile the MSCI Russia Index was down 14.7% over the same period.
August saw a continuation in the decline in markets globally, with Russian markets succumbing to the sell-off in global credit markets, continued pressure on commodities and dollar strength.
The Russian authorities have shown a willingness to intervene to protect against domestic dislocations caused by distressed selling. The Russian state has announced a liquidity package of more than $150bn.
It has increased its deposits held at the largest banks and offered them repo lending that references inflated asset valuations. The state-owned Vneshekenom Bank will also provide up to $50bn to Russian companies and banks to help redeem the $65bn of external debt coming due through 1Q'09. Meanwhile the interbank lending market is being supported by a government guarantee against defaults.
"Given the relative size of the economy," Pharos says, "Russia is better positioned than most to withstand a downturn in credit markets with its $581bn of reserves and over $200bn Stabilization Fund."
"Valuations are compelling and we expect to take advantage of these opportunities. We look for catalysts to the market to guide our entry points, such as stability in the industrial commodities markets, a reversal in measures of global risk aversion and global monetary easing."
30 Sept 2008
29 Sept 2008
Hedge Fund Manager Launches Lettable Space Park In Romania
Argo Group, an emerging markets investment manager, announced the launch of The Era Shopping Park Iasi. Projected to generate EUR 18 million ($25.7 million) in annual rental income the launch is funded by Argo's private equity fund, the Argo Capital Partners Fund 1, together with a local joint venture partner, Omilos Group."From Argo's perspective this has been an excellent investment," says Argo Capital Management chief investment officer Andreas Rialas. "Through our partnership with Omilos we acquired two excellent sites at a time when property and land prices were relatively low. Since then both projects are well advanced and demonstrating their potential to generate substantial returns."
The Park is the first of two planned retail parks to operate under the Era Shopping Park brand. The Iasi retail park will be the largest outside of Bucharest and the second largest in Romania.
Based in Romania's second largest city, situated in the north-east of the country close to the Moldovan border. The Era Shopping Park Iasi will offer on completion more than 115,000 square metres of gross lettable area.
The second facility planned, the Era Shopping Park Oradea, is located in Oradea in the north-west of Romania, close to the Hungarian border. This smaller project with a gross lettable area of 65,000 square metres is expected to open in March next year. The Oradea site is projected to generate annual rental income of EUR 10.5 million.
"Economically, Romania continues to perform strongly. Following its EU accession, there has been a significant uplift in consumer spending and as demonstrated by tenant demand for Era, western European retailers are increasing their presence in the country," Rialas concluded.
The Argo Group has significant experience in property notably through the Argo Real Estate Opportunities Fund, a Guernsey-domiciled closed-ended investment company that invests in the commercial property markets of Central and Eastern Europe. The AIM-listed company is managed by Argo Capital Management Property, which has offices in London, Bucharest and Kiev.
The Argo Capital Partners Fund I was launched in August 2006 to focus on delivering private equity returns from different types of investments and situations in emerging markets. The fund, which was launched targeting a minimum internal rate of return of 40 per cent, has not yet exited any investments.
Its current portfolio includes Infarmasa, a generics pharmaceutical company in Peru, Nigerian commercial and retail bank Intercontinental Bank, Greek triple-play telecommunications Telecoms and Russian regional bank Probusinessbank as well as the Era Shopping Parks.
26 Sept 2008
Vodia Expands Into Frontier Markets
Reflecting a growth in corporate activities, Vodia Group has rebranded as Finadium. The move was made, the re-named Finadium says, to showcase an ability to develop new ideas and create products and marketing strategies in financial markets, expanding beyond the original scope of Vodia Group.
The Finadium name comes from the abbreviation Fin for finance and the latin word Aedium, meaning house. As Finadium, the firm emphasizes its core value proposition – providing ideas, product development and marketing strategies to the securities and investments industry.
The Finadium name comes from the abbreviation Fin for finance and the latin word Aedium, meaning house. As Finadium, the firm emphasizes its core value proposition – providing ideas, product development and marketing strategies to the securities and investments industry.
Based on proprietary surveys and market knowledge, the company is looking multiple market sectors such as institutional investors, hedge funds and traditional asset managers.
As part of the rebranding, the company are launching a monthly newsletter for portfolio managers, traders and others looking for briefings on prime brokerage, securities finance and custody but who do not need the detail of our full reports.
Also expanding into frontier and emerging markets, Josh Galper, Managing Principal, says “As Finadium, we are pleased to expand our audience in prime brokerage, securities finance and custody to include a broader range of market professionals. We also look forward to tackling the complex subject matter of financial services in frontier and emerging markets.”
The Finadium name comes from the abbreviation Fin for finance and the latin word Aedium, meaning house. As Finadium, the firm emphasizes its core value proposition – providing ideas, product development and marketing strategies to the securities and investments industry.
The Finadium name comes from the abbreviation Fin for finance and the latin word Aedium, meaning house. As Finadium, the firm emphasizes its core value proposition – providing ideas, product development and marketing strategies to the securities and investments industry.
Based on proprietary surveys and market knowledge, the company is looking multiple market sectors such as institutional investors, hedge funds and traditional asset managers.
As part of the rebranding, the company are launching a monthly newsletter for portfolio managers, traders and others looking for briefings on prime brokerage, securities finance and custody but who do not need the detail of our full reports.
Also expanding into frontier and emerging markets, Josh Galper, Managing Principal, says “As Finadium, we are pleased to expand our audience in prime brokerage, securities finance and custody to include a broader range of market professionals. We also look forward to tackling the complex subject matter of financial services in frontier and emerging markets.”
25 Sept 2008
Bracewell & Giuliani LLP Announces Legislation Task Force
Bracewell & Giuliani LLP today announced that it has formed a multi-disciplinary Task Force to guide financial institutions, private investment funds, institutional investors and other market participants through the legislative, regulatory and enforcement challenges posed by the Troubled Asset Relief Act and other impending actions by Congress, the Treasury Department, the Federal Reserve and the SEC.
The Task Force will focus in particular on legislation, regulatory actions, enforcement matters and strategic communications to assist market participants in their efforts to navigate one of the most significant governmental actions in the history of the U.S. economy.
Commenting on the formation of the Bracewell Task Force, senior partner Rudy Giuliani said, "Our team of former government officials and experienced attorneys in the fields of legislation, enforcement and finance are equipped to guide institutions in this quickly evolving and complex environment." Mr. Giuliani noted that the Bracewell Task Force includes a former Comptroller of the Currency, a former Assistant Secretary of Legislative Affairs of the U.S. Department of the Treasury, former members of Congress from both political parties, former federal prosecutors, and former SEC enforcement attorneys.
In addition, the Bracewell Task Force will draw heavily upon our resources in the areas of broker-dealer and market regulation, financial restructuring, and corporate and securities.
As part of its services, the Task Force is establishing a blog to relay critical real-time information on the development of policy related to the legislation, regulation and enforcement priorities, and will also be providing periodic updates directly to interested clients.
The Task Force will focus in particular on legislation, regulatory actions, enforcement matters and strategic communications to assist market participants in their efforts to navigate one of the most significant governmental actions in the history of the U.S. economy.
Commenting on the formation of the Bracewell Task Force, senior partner Rudy Giuliani said, "Our team of former government officials and experienced attorneys in the fields of legislation, enforcement and finance are equipped to guide institutions in this quickly evolving and complex environment." Mr. Giuliani noted that the Bracewell Task Force includes a former Comptroller of the Currency, a former Assistant Secretary of Legislative Affairs of the U.S. Department of the Treasury, former members of Congress from both political parties, former federal prosecutors, and former SEC enforcement attorneys.In addition, the Bracewell Task Force will draw heavily upon our resources in the areas of broker-dealer and market regulation, financial restructuring, and corporate and securities.
As part of its services, the Task Force is establishing a blog to relay critical real-time information on the development of policy related to the legislation, regulation and enforcement priorities, and will also be providing periodic updates directly to interested clients.
24 Sept 2008
SGAM Launches Hedge Fund Replicant
SGAM (Société Générale Asset Management) Alternative Investments launched the SGAM ETF T-Rex (for total return exposure), on Euronext Paris."It is possible to build a portfolio of dynamic strategies designed to replicate overall allocations in the hedge funds industry," SGAM says, "and thus attempt to replicate performances by taking up equivalent positions in these asset classes."
The portfolio invests in the main asset classes of equities, bonds and currencies, and is managed dynamically using liquid financial instruments such as futures. The new fund has no minimum subscription, and offers real-time liquidity and total transparency. Launched in a mutual fund format in August 2007, the strategy in an ETF format offers investors a choice between the subscription/redemption channel of a traditional fund and the flexibility of a real-time stock market negotiation via the ETF.
"Based on the concept of alternative beta, involving the replication of estimated hedge fund allocations in traditional asset classes," SGAM says, "academic studies show that hedge fund investments can on the whole be broken down into long/buy positions and short/sell positions in traditional asset classes."
The allocation process of the SGAM ETF T-Rex portfolio is based on a quantitative model, created by SGAM AI's structured asset management team. The model automatically calculates the allocation that optimises correlation to the index, composed of more than 2,000 hedge funds tracked in the HFR database. Positions are reviewed every month.
Société Générale Asset Management had EUR 309 billion ($452 billion) in assets under management at the end of June, including EUR 50 billion ($73.2 billion) in alternative investments.
SGAM Index is a wholly owned Société Générale Asset Management subsidiary that offers passive management, differentiated index management, structured ETFs and alternative beta products, and whose funds are commercialised by SGAM Alternative Investments.
22 Sept 2008
MSCI Barra Joins Morningstar Arrangement
MSCI Barra and Morningstar have entered into an arrangement to calculate and distribute hedge fund indices jointly.“We are delighted to be working with Morningstar, and believe that this exciting development will greatly benefit all users of our hedge fund indices. Going forward they will have access to enhanced hedge fund indices from Morningstar based upon MSCI Barra’s methodology applied to one of the largest hedge fund databases,” said David Brierwood, Chief Operating Officer, MSCI Barra.
“For more than 35 years, MSCI Barra has produced some of the most widely used and well-respected indices in the industry, and we’re pleased to apply the MSCI Hedge Fund Index Methodology to our extensive hedge fund database,” said Liz Kirscher, President of Data Services for Morningstar. “The combination of MSCI Barra’s methodology and Morningstar’s large hedge fund universe will allow us to offer a valuable set of robust benchmarks to both MSCI Barra clients and ours.”
These indices and the Morningstar database will replace the current MSCI Hedge Fund Indices and Database after a brief transition period. MSCI Barra will continue to calculate and distribute the MSCI Investable Hedge Fund Indices and the Barra Hedge Fund Risk Model. Morningstar will continue to calculate and distribute its existing Morningstar Hedge Fund Indices, including the Morningstar® 1000 Hedge Fund Index.
The MSCI Hedge Fund Index Methodology uses primary and secondary hedge fund characteristics to build the indices based on investment process, asset class, geography, and Global Industry Classification Standard (GICS®) sectors. This granularity is unique among hedge fund indices and allows investors to benchmark precise investment opportunities. Morningstar collects 300 data points from 8,500 hedge funds and funds of hedge funds for its database including information about portfolio holdings, strategy allocation and hedging techniques.
MSCI Barra is headquartered in New York, with research and commercial offices around the world. Morgan Stanley, a global financial services firm, is the controlling shareholder of MSCI Barra.
Recently named Index Provider of the Year at the 2008 European Pensions Awards, MSCI Barra is a provider of investment decision support tools worldwide, including indices and portfolio risk and performance analytics.
Morningstar, Inc. is a provider of independent investment research in North America, Europe, Australia, and Asia.
PROXY Governance, Inc.(PGI), a leading proxy advisory firm, has recommended that shareholders support management in the Cleveland-Cliffs proxy battle. 
Cleveland-Cliffs is a mining company that produces iron ore pellets and supplies metallurgical coal to the steelmaking industry; the company also has announced plans to build a biomass fuel plant.
As an Ohio corporation, Cleveland-Cliffs is subject to the state's "control share acquisition," which requires shareholder approval for any acquisition of shares which, when added to its existing ownership stake, would entitle the acquirer to control any of the following ranges of voting power in the election of directors: One-fifth or more but less than one-third, one-third or more but less than a majority, or a majority.
In this instance, Harbinger Capital Partners Master Fund 1, Ltd., and Harbinger Capital Partners Special Situations Fund, LP (“Harbinger”), which presently own approximately 15.6% of outstanding shares, seek to increase their aggregate holdings to greater than 20%, but less than 33 1/3%, of the company’s outstanding common shares.
PGI notes that Harbinger's acquisition could allow it to influence corporate strategy and decision-making, yet provides no immediate or obvious economic advantages to existing shareholders.
Cleveland-Cliffs is a mining company that produces iron ore pellets and supplies metallurgical coal to the steelmaking industry; the company also has announced plans to build a biomass fuel plant.
As an Ohio corporation, Cleveland-Cliffs is subject to the state's "control share acquisition," which requires shareholder approval for any acquisition of shares which, when added to its existing ownership stake, would entitle the acquirer to control any of the following ranges of voting power in the election of directors: One-fifth or more but less than one-third, one-third or more but less than a majority, or a majority.
In this instance, Harbinger Capital Partners Master Fund 1, Ltd., and Harbinger Capital Partners Special Situations Fund, LP (“Harbinger”), which presently own approximately 15.6% of outstanding shares, seek to increase their aggregate holdings to greater than 20%, but less than 33 1/3%, of the company’s outstanding common shares.
PGI notes that Harbinger's acquisition could allow it to influence corporate strategy and decision-making, yet provides no immediate or obvious economic advantages to existing shareholders.
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