Scandinavian fund of hedge fund manager, Swedbank Robur announced that it is lowering fees by .2% to .4% on its 5 funds, effective October 1st.
"These reductions are in line with our ambition to offer an attractive product range with competitive prices." Mats Lagerqvist, President of Swedbank Robur, said, "We are always looking for improvements and when it comes to these funds we have identified an opportunity to adjust the fees. It is our strong belief that this new fee structure will be more distinct for our customers since it is easier to understand the relationship between the fund fee and the risk level of the fund".
Swedbank Robur offers fund of funds under the product name Access. This product category is specifically developed for customers who do not have the time to change their fund portfolio from one day to the other.
"These products are highly appreciated by customers who want a well diversified portfolio. The customers also get access to markets which are otherwise rather inaccessible. The funds deliver not only diversification but also an active reallocation of the underlying funds. Altogether Swedbank Roburs Access funds are an attractive investment alternative for many of our customers and through the reduction of fees we will be even more competitive in terms of pricing", Lagerqvist said.
Swedbank Robur is a wholly owned subsidiary of Swedbank. Founded in 1967, Robur was one of the first fund managers in Sweden. Managing the capital of 3.1 million investors, in the Swedish mutual fund market, Swedbank Robur has approximately 27% of assets under management.
11 Sept 2009
Palladio Alternative Research goes live
Swiss-based Palladio Alternative Research Group has started operations in August 2009 via its first Geneva-based subsidiary.
Designed to provide outsourcing solutions for hedge fund research and due diligence, Palladio Alternative Research Group will be headed by Sarah Clar-Boson, founding partner and a former Senior hedge fund analyst at Optifin SA and UBP Alternative Asset Management Group.
The firm's two other partners include successful established hedge fund entrepreneurs: Christophe Reech, CEO and Chairman of Reech AiM Group, recently awarded Emerging Manager of the year 2009 by Institutional Investor, and Jean-Marc Emden, CEO of Nassau-based Autana Capital, who has extensive experience in alternative investments since 1992.
In addition, Palladio Alternative Research Group has set up strategic agreements with Lotus Peak Capital PTE Ltd (Singapore) for Asian research coverage and with Castle Hall Alternatives (Canada) for detailed operational due diligence upon request.
"The opportunity set for unbiased, professional hedge fund advice and analysis is a direct outcome of the 2008 crisis, given the obvious conflict of interests between advisory and investment, the Madoff debacle and the failure to complete continuous
in-depth due diligence services," commented Mrs Clar-Boson.
"There is an acute shortage of independent alternative research providers: going forward, investors are demanding a more dynamic and personalized dialog to replace their disappointing relationships with large, traditional organisations. The ongoing complexity and sophistication of hedge fund analysis drives the need for truly neutral third-party specialists and Palladio Alternative Research Group aims to progressively become a significant and trusted player in the space." she concluded.
Designed to provide outsourcing solutions for hedge fund research and due diligence, Palladio Alternative Research Group will be headed by Sarah Clar-Boson, founding partner and a former Senior hedge fund analyst at Optifin SA and UBP Alternative Asset Management Group.
The firm's two other partners include successful established hedge fund entrepreneurs: Christophe Reech, CEO and Chairman of Reech AiM Group, recently awarded Emerging Manager of the year 2009 by Institutional Investor, and Jean-Marc Emden, CEO of Nassau-based Autana Capital, who has extensive experience in alternative investments since 1992.
In addition, Palladio Alternative Research Group has set up strategic agreements with Lotus Peak Capital PTE Ltd (Singapore) for Asian research coverage and with Castle Hall Alternatives (Canada) for detailed operational due diligence upon request.
"The opportunity set for unbiased, professional hedge fund advice and analysis is a direct outcome of the 2008 crisis, given the obvious conflict of interests between advisory and investment, the Madoff debacle and the failure to complete continuous
in-depth due diligence services," commented Mrs Clar-Boson.
"There is an acute shortage of independent alternative research providers: going forward, investors are demanding a more dynamic and personalized dialog to replace their disappointing relationships with large, traditional organisations. The ongoing complexity and sophistication of hedge fund analysis drives the need for truly neutral third-party specialists and Palladio Alternative Research Group aims to progressively become a significant and trusted player in the space." she concluded.
10 Sept 2009
Cayman Hedge Fund Results Up For US Equity Market Neutral Fund
Global Hedge Fund Group said that their flagship fund, the US Equity Market Neutral Fund showed annual returns of between 22-45%, accompanied with a volatility of 8-12% per annum.
The fund commenced trading on 20 August 2001 with initial assets of $14 million from institutional investors. The strategy employs a proprietary factor model which measures trends in observed stock prices and expects to profit from market inefficiencies over time.
Global Hedge Fund Group works in close association with research firms, hedge fund managers, and brokerage houses.
The fund commenced trading on 20 August 2001 with initial assets of $14 million from institutional investors. The strategy employs a proprietary factor model which measures trends in observed stock prices and expects to profit from market inefficiencies over time.
Global Hedge Fund Group works in close association with research firms, hedge fund managers, and brokerage houses.
Butterfield Fulcrum Partners With Risk Fundamentals
Alternative fund administration company, Butterfield Fulcrum, has partnered with hedge fund software firm Risk Fundamentals, to provide comprehensive risk analytics to hedge fund managers.
“As independent administrators we sit at the junction where transparency and confidentiality have traditionally opposed each other,” said Akshaya Bhargava, Butterfield Fulcrum's CEO.
“Risk Fundamentals is a state of the art risk management and transparency solution for hedge funds, funds of funds and institutional investors,” said Ben Weston, Risk Fundamentals’ Chairman. “This collaboration fulfills a longstanding need in the marketplace for new and effective ways to understand and manage risk.”
Butterfield Fulcrum said the product will measure liquidity and leverage, the primary sources of hedge fund collapse.
“As independent administrators we sit at the junction where transparency and confidentiality have traditionally opposed each other,” said Akshaya Bhargava, Butterfield Fulcrum's CEO.
“Risk Fundamentals is a state of the art risk management and transparency solution for hedge funds, funds of funds and institutional investors,” said Ben Weston, Risk Fundamentals’ Chairman. “This collaboration fulfills a longstanding need in the marketplace for new and effective ways to understand and manage risk.”
Butterfield Fulcrum said the product will measure liquidity and leverage, the primary sources of hedge fund collapse.
9 Sept 2009
Hedge funds attract $4.5 billion in Aug 2009
Preliminary reporting from Eurekahedge finds that August marks the 6th consecutive month of positive returns for hedge funds (up 13.1% YTD); hedge funds up 2.6% for the last 12 months, while the MSCI AC World Index is down 18.5% for the same period.
Net inflows for hedge funds reached $4.5 billion in August, with over 50% of the reporting funds attracting capital during the month.
Most hedge funds recorded gains averaging close to or over 2% during August, with European managers (2.6%) delivering the best gains, on average. North American and Latin American funds ended the month with gains averaging 1.8% and 2.1%. Asian managers, on the other hand, underperformed most others, with Japan-specific funds up 0.7% and their Asia ex-Japan-investing counterparts down 1.1%.
There were over 300 new hedge fund launches and 400 fund closures confirmed by Eurekahedge so far this year.
Net inflows for hedge funds reached $4.5 billion in August, with over 50% of the reporting funds attracting capital during the month.
Most hedge funds recorded gains averaging close to or over 2% during August, with European managers (2.6%) delivering the best gains, on average. North American and Latin American funds ended the month with gains averaging 1.8% and 2.1%. Asian managers, on the other hand, underperformed most others, with Japan-specific funds up 0.7% and their Asia ex-Japan-investing counterparts down 1.1%.
There were over 300 new hedge fund launches and 400 fund closures confirmed by Eurekahedge so far this year.
Hedge Funds Lag as Equity Market Rally Continues - Hennessee
There was good economic news in August, specifically housing and manufacturing data, according to hedge fund research specialist Hennessee Group.
"Government spending continues to drive demand, while the private sector has been largely absent. This dynamic is not sustainable,” commented Charles Gradante, Co-Founder of Hennessee Group. “In addition, equity markets are no longer undervalued. With September being one of the worst months historically, we are cautious of a pull back in the markets.”
The Hennessee Hedge Fund Index advanced +1.85% in August (+17.30% YTD), while the S&P 500 increased +3.36% (+12.99% YTD), the Dow Jones Industrial Average increased +3.54% (+8.20% YTD), and the NASDAQ Composite Index advanced +1.54% (+27.40% YTD). The Barclays Aggregate Bond Index advanced +1.04% (+4.62% YTD).
“Hedge funds continued to lag the surging equity markets, as we would expect given their short portfolios and hedges,” said Lee Hennessee, Managing Principal of Hennessee Group. “Managers have opened up their exposures to benefit from the market rally. However, given the uncertainty around the economy, most managers are looking to generate gains due to stock selection, rather than beta exposure as there is potential for a correction.”
"Government spending continues to drive demand, while the private sector has been largely absent. This dynamic is not sustainable,” commented Charles Gradante, Co-Founder of Hennessee Group. “In addition, equity markets are no longer undervalued. With September being one of the worst months historically, we are cautious of a pull back in the markets.”
The Hennessee Hedge Fund Index advanced +1.85% in August (+17.30% YTD), while the S&P 500 increased +3.36% (+12.99% YTD), the Dow Jones Industrial Average increased +3.54% (+8.20% YTD), and the NASDAQ Composite Index advanced +1.54% (+27.40% YTD). The Barclays Aggregate Bond Index advanced +1.04% (+4.62% YTD).
“Hedge funds continued to lag the surging equity markets, as we would expect given their short portfolios and hedges,” said Lee Hennessee, Managing Principal of Hennessee Group. “Managers have opened up their exposures to benefit from the market rally. However, given the uncertainty around the economy, most managers are looking to generate gains due to stock selection, rather than beta exposure as there is potential for a correction.”
Peak Oil Investing Hedge Fund Launch
Hedge fund investor, logi ENERGY LLC., has announced the formation of The Peak Oil Value Fund. Launched September 8, the new hedge fund is the first of its kind aimed at institutional and accredited investors.
“We believe that the effects of Peak Oil on the markets are a temporary Global Macro series of events” Larry Ortega CIO of the Peak Oil Value Fund said, “We only have a few years to take advantage of these opportunities.“
The fund's investment strategy employs five approaches: 1) Publicly Traded Equities and Equity Options; 2) Investment in oil in storage; 3) Investment in Oil, Gasoline and Heating Oil spreads in the Futures Markets; 4) Private Investment in Public Equities of Oil and Gas Exploration Companies; and 5) Private Investment in Private Companies or Oil and Gas Fields.
“Our superb models developed by our deep, complex team of expert geophysicists, mathematicians, oil professionals and oil traders have been able to predict and identify the fluctuations of oil prices and indicate when we expect prices to move based on both fundamentals of oil production and demand as well as storage, refinery processing, price action and economic utilization." Ortega said, "They are not perfect, but we’re extremely pleased with the results. We invest like Warren Buffett, which is we make our money when we purchase our positions at deep value, thus the effects of our errors are minimal. Our difference is that in most of our strategies we also hedge nearly every position we take.”
The fund’s goal is to purchase or make significant investments in oil and gas exploration firms for their reserve positions while supporting their production and exploration efforts with direct investment in their fields and then hedge position value, reserves and future production. The fund expects to invest based on fundamental valuation of each position they take.
“We believe that the effects of Peak Oil on the markets are a temporary Global Macro series of events” Larry Ortega CIO of the Peak Oil Value Fund said, “We only have a few years to take advantage of these opportunities.“
The fund's investment strategy employs five approaches: 1) Publicly Traded Equities and Equity Options; 2) Investment in oil in storage; 3) Investment in Oil, Gasoline and Heating Oil spreads in the Futures Markets; 4) Private Investment in Public Equities of Oil and Gas Exploration Companies; and 5) Private Investment in Private Companies or Oil and Gas Fields.
“Our superb models developed by our deep, complex team of expert geophysicists, mathematicians, oil professionals and oil traders have been able to predict and identify the fluctuations of oil prices and indicate when we expect prices to move based on both fundamentals of oil production and demand as well as storage, refinery processing, price action and economic utilization." Ortega said, "They are not perfect, but we’re extremely pleased with the results. We invest like Warren Buffett, which is we make our money when we purchase our positions at deep value, thus the effects of our errors are minimal. Our difference is that in most of our strategies we also hedge nearly every position we take.”
The fund’s goal is to purchase or make significant investments in oil and gas exploration firms for their reserve positions while supporting their production and exploration efforts with direct investment in their fields and then hedge position value, reserves and future production. The fund expects to invest based on fundamental valuation of each position they take.
8 Sept 2009
Euromoney Launches International Hedge Fund Magazine
International publishing and information company, Euromoney Institutional Investor, is launching a new magazine and online offering covering US and international hedge funds in September. The new publication will be titled “AR”.
“The publication will include new surveys, rankings and high-powered web functionality,” Euromoney Institutional Investor chairman and editor-in-chief Padraic Fallon said, “With the hedge fund sector under intense scrutiny from Washington, regulators and investors, this is an excellent time to launch a hedge fund publication.”
Michelle Celarier, current editor of Absolute Return, will also be the editor of the new magazine. “Hedge fund performance has recovered strongly in 2009, after the sector’s worst ever performance in 2008, and there are now significant opportunities,” Celarier says.
The company’s hedge fund publishing assets include Institutional Investor’s Alpha magazine and Absolute Return magazine, which is published by HedgeFund Intelligence.
“The publication will include new surveys, rankings and high-powered web functionality,” Euromoney Institutional Investor chairman and editor-in-chief Padraic Fallon said, “With the hedge fund sector under intense scrutiny from Washington, regulators and investors, this is an excellent time to launch a hedge fund publication.”
Michelle Celarier, current editor of Absolute Return, will also be the editor of the new magazine. “Hedge fund performance has recovered strongly in 2009, after the sector’s worst ever performance in 2008, and there are now significant opportunities,” Celarier says.
The company’s hedge fund publishing assets include Institutional Investor’s Alpha magazine and Absolute Return magazine, which is published by HedgeFund Intelligence.
Third Avenue Launches Credit Fund, Hires Blackrock Hedge Fund Specialist
Third Avenue Management LLC, the investment adviser to the Third Avenue Funds has launched the Third Avenue Focused Credit Fund, capitalizing on credit, distressed and value equity investing.
"The current market environment provides attractive opportunities for experienced credit pickers like Third Avenue Management to generate meaningful returns," David Barse, Chief Executive Officer of Third Avenue Management, said, "Portfolio Manager Jeff Gary and Senior Research Analyst Thomas Lapointe will lead the effort of managing the new fund."
Prior to joining Third Avenue, Gary was at BlackRock Financial, which he joined in 2003 as the Portfolio Manager and head of the high-yield and distressed investment team which managed approximately $17 billion in assets in various mutual funds and institutional accounts.
Lapointe will focus on identifying and researching opportunities in high-yield and bank loan investments. Lapointe has over 17 years of investment experience and was previously responsible for managing approximately $6 billion in high-yield assets, as Co-Head of High-Yield Investments for Columbia Management.
"Third Avenue’s style emphasizes credit selection, total return and a deep value approach," Gary said, "Our opportunistic mandate allows us to invest in a wide range of credit securities – including bank loans, high-yield and convertible securities – that have the best risk-adjusted return potential which distinguishes the Fund from typical high-yield funds.”
The Fund will offer two classes of shares, Third Avenue Focused Credit Fund Investor Class, and Third Avenue Focused Credit Fund Institutional Class.
Third Avenue Management has approximately $14 billion in assets under management and offers value-oriented strategies through mutual funds, UCITS, separate accounts and alternative investment vehicles.
"The current market environment provides attractive opportunities for experienced credit pickers like Third Avenue Management to generate meaningful returns," David Barse, Chief Executive Officer of Third Avenue Management, said, "Portfolio Manager Jeff Gary and Senior Research Analyst Thomas Lapointe will lead the effort of managing the new fund."
Prior to joining Third Avenue, Gary was at BlackRock Financial, which he joined in 2003 as the Portfolio Manager and head of the high-yield and distressed investment team which managed approximately $17 billion in assets in various mutual funds and institutional accounts.
Lapointe will focus on identifying and researching opportunities in high-yield and bank loan investments. Lapointe has over 17 years of investment experience and was previously responsible for managing approximately $6 billion in high-yield assets, as Co-Head of High-Yield Investments for Columbia Management.
"Third Avenue’s style emphasizes credit selection, total return and a deep value approach," Gary said, "Our opportunistic mandate allows us to invest in a wide range of credit securities – including bank loans, high-yield and convertible securities – that have the best risk-adjusted return potential which distinguishes the Fund from typical high-yield funds.”
The Fund will offer two classes of shares, Third Avenue Focused Credit Fund Investor Class, and Third Avenue Focused Credit Fund Institutional Class.
Third Avenue Management has approximately $14 billion in assets under management and offers value-oriented strategies through mutual funds, UCITS, separate accounts and alternative investment vehicles.
4 Sept 2009
Cayman Islands Current Financial Position, Not Bankrupt
In a statement outlining the Cayman Islands financial position, the Hon. McKeeva Bush, Leader of Government Business/Premier Designate issued a statement regarding recent media coverage suggesting that the Cayman Islands is bankrupt, "we can confirm that these accusations are incorrect," she said.
Although Cayman’s two main industries, tourism and financial services, are significantly affected, "we are confident that the strength and resilience which has contributed to Cayman’s significant growth over the past 40 years will continue to serve the country well."
The Government’s efforts include the cutting of Government expenditure, customs duties, licence fees, and a number of other indirect taxes.
The government has also implemented an aggressive inward investment programme through private sector partnerships which will result in a number of new infrastructure projects and other developments. These will result in the region of $3 billion of inward investment in the short to medium term.
"In three weeks time we will be presenting our Budget which will continue to maintain Cayman’s sound financial stability. The Cayman Islands is well placed to take advantage of the global economic recovery and we are committed to continuing the success of our indirect tax system which has served the country so well over its history." McKeeva Bush concluded.
Although Cayman’s two main industries, tourism and financial services, are significantly affected, "we are confident that the strength and resilience which has contributed to Cayman’s significant growth over the past 40 years will continue to serve the country well."
The Government’s efforts include the cutting of Government expenditure, customs duties, licence fees, and a number of other indirect taxes.
The government has also implemented an aggressive inward investment programme through private sector partnerships which will result in a number of new infrastructure projects and other developments. These will result in the region of $3 billion of inward investment in the short to medium term.
"In three weeks time we will be presenting our Budget which will continue to maintain Cayman’s sound financial stability. The Cayman Islands is well placed to take advantage of the global economic recovery and we are committed to continuing the success of our indirect tax system which has served the country so well over its history." McKeeva Bush concluded.
Credit Suisse's AIR Shows Positive Month for Hedge Funds
Long/Short Equity hedge funds returned positive performance in August mainly as a result of the continued uptrend in equity markets, according to Jordan Drachman, Head of Research for Alternative Beta Strategies at Credit Suisse.
"Following a strong rally in July, equity markets continued their upward trend in August, reaching highs not achieved since October 2008." Dr. Drachman noted, "Long/Short Equity hedge fund managers continued to increase their overall net exposures in order to benefit from market gains. Despite brief corrections due to a mid-month weak consumer sentiment report, managers were able to finish up for the month. The Credit Suisse Long/Short Equity Replication Index (“AIR Long/Short Equity Index”) was up 1.55% (net) for the month, while the Credit Suisse Global Macro Replication Index (“AIR Global Macro Index”) finished up 0.08% (net) over the same period."
AIR Indices seek to replicate the performance of major hedge fund strategies and enable investors to gain liquid, transparent insight into the Global Macro and Long/Short Equity sectors of the Credit Suisse/Tremont Hedge Fund Index. The AIR platform also offers inverse indices that seek to approximate short exposure to the aggregate returns of the universe of Long/Short Equity and Global Macro hedge fund managers.
Performances for the AIR Global Macro and Long/Short Equity Indices are calculated daily and shown net of a 1.15% per annum calculation fee.
"Following a strong rally in July, equity markets continued their upward trend in August, reaching highs not achieved since October 2008." Dr. Drachman noted, "Long/Short Equity hedge fund managers continued to increase their overall net exposures in order to benefit from market gains. Despite brief corrections due to a mid-month weak consumer sentiment report, managers were able to finish up for the month. The Credit Suisse Long/Short Equity Replication Index (“AIR Long/Short Equity Index”) was up 1.55% (net) for the month, while the Credit Suisse Global Macro Replication Index (“AIR Global Macro Index”) finished up 0.08% (net) over the same period."
AIR Indices seek to replicate the performance of major hedge fund strategies and enable investors to gain liquid, transparent insight into the Global Macro and Long/Short Equity sectors of the Credit Suisse/Tremont Hedge Fund Index. The AIR platform also offers inverse indices that seek to approximate short exposure to the aggregate returns of the universe of Long/Short Equity and Global Macro hedge fund managers.
Performances for the AIR Global Macro and Long/Short Equity Indices are calculated daily and shown net of a 1.15% per annum calculation fee.
3 Sept 2009
Global Climate Change Fund Launch
Alternative investment manager and advisor, Climate Change Capital, (CCC) has been appointed to manage a climate change fund for Dublin-domiciled UCITS platform, Russell OpenWorld.
The Global Climate Change Fund will be managed by Climate Change Capital's Global Equities' team of Paul Udall and Ronnie Lim.
The new fund will invest globally in sectors impacted by climate change. Udall and Lim, both Managing Directors at Climate Change Capital together have over 30 years' investment experience, and over 12 years' experience in managing specialist environmental equities. Prior to joining Climate Change Capital in 2007, both worked in the Sustainable Investment team at Morley Fund Management (now Aviva Global Investors), a top-ranked Socially Responsible Investing team.
"Climate Change Capital is uniquely positioned globally as an investment firm to benefit from the significant investment opportunities that exist in climate change," Shaun Mays, Chief Executive Officer at CCC, said, "Russell has a highly-regarded research and due diligence process, and we are pleased to be selected as the manager for one of their specialist, thematic funds."
The fund aims to provide significant excess returns above global equity markets by investing in a manager that takes high conviction active positions in companies that are affected by climate change. This is a relatively new area of investing, therefore, this fund enables investors to add an innovative and differentiated return stream to their portfolios.
With over US $1.5 billion under management as of April 2009, Climate Change Capital aims to provide attractive returns to investors, demonstrating the financial opportunity associated with the low carbon economy.
The Global Climate Change Fund will be managed by Climate Change Capital's Global Equities' team of Paul Udall and Ronnie Lim.
The new fund will invest globally in sectors impacted by climate change. Udall and Lim, both Managing Directors at Climate Change Capital together have over 30 years' investment experience, and over 12 years' experience in managing specialist environmental equities. Prior to joining Climate Change Capital in 2007, both worked in the Sustainable Investment team at Morley Fund Management (now Aviva Global Investors), a top-ranked Socially Responsible Investing team.
"Climate Change Capital is uniquely positioned globally as an investment firm to benefit from the significant investment opportunities that exist in climate change," Shaun Mays, Chief Executive Officer at CCC, said, "Russell has a highly-regarded research and due diligence process, and we are pleased to be selected as the manager for one of their specialist, thematic funds."
The fund aims to provide significant excess returns above global equity markets by investing in a manager that takes high conviction active positions in companies that are affected by climate change. This is a relatively new area of investing, therefore, this fund enables investors to add an innovative and differentiated return stream to their portfolios.
With over US $1.5 billion under management as of April 2009, Climate Change Capital aims to provide attractive returns to investors, demonstrating the financial opportunity associated with the low carbon economy.
The Securities and Exchange Commission Post-Madoff Reforms
The SEC has just released the information below regarding the actions it will take in the wake of the Madoff scandal. Pillsbury is sponsoring a program in San Francisco on this topic, October 8, 2009.
In the wake of the Madoff fraud, the SEC’s Office of the Inspector General launched an internal investigation in December 2008 to determine why the agency did not detect the scheme. While awaiting the report, the SEC has been taking decisive and comprehensive steps to reduce the chances that such frauds will occur or be undetected in the future.
Safeguarding Investors’ Assets: The SEC in May proposed two rules that would better protect clients of investment advisers from theft and abuse. The rules would provide assurance to these clients that their accounts contain the funds that their investment adviser and account statements say they contain. Among other things, the rules would encourage investment advisers to place their clients’ assets in the custody of an independent firm.
Surprise Exams: One proposal would require all investment advisers who control or have custody of their clients’ assets to hire an independent public accountant to conduct an annual “surprise exam” to verify those assets actually exist. This surprise examination would provide another set of eyes on the clients’ assets, thereby offering additional protection against the theft or misuse of funds.
Third Party Reviews: A second proposal would apply to investment advisers who do not use independent firms to maintain their clients’ assets. Such advisers would be required to obtain a third party written report assessing the safeguards that protect the clients’ assets. The report — prepared by an accountant registered and inspected by the Public Company Accounting Oversight Board — would, among other things, describe the controls that are in place to protect the assets, the tests performed on the controls, and the results of those tests. Existing rules make no distinction between an investment adviser whose affiliate holds its clients’ funds and an investment adviser that uses a truly independent custodian.
Revitalizing the Enforcement Division: Under the leadership of a new Enforcement Director, the SEC is restructuring the division to better ensure that it focuses on significant cases that will have a meaningful impact. The restructuring will reduce bureaucracy and speed up the enforcement process by removing a layer of management in the 1,100 person division. The newly structured division will include specialized units that will enable staff in those units to concentrate their expertise in focused areas and help detect patterns, links, trends and motives. In addition, the Division is streamlining internal processes to make investigative procedures more efficient.
Revamping the Handling of Complaints and Tips: In order to improve the handling of hundreds of thousands of complaints, tips, and referrals it receives each year, the SEC has contracted with Mitre, a federally funded research and development center, to help the agency revamp its processes across the agency. After reviewing and analyzing its intake procedures, the SEC is now beginning to improve upon its processes for collecting, recording, investigating, referring and tracking this information. Among other things, the agency is creating a centralized system for handling this information. Once the information and processes are centralized, the agency will apply risk analytics to better enable it to reveal links, trends, statistical deviations and patterns that might not be observable when each complaint is examined one at a time.
Advocating for a Whistleblower Program: The SEC has advocated for expanded authority from Congress to reward whistleblowers who bring forward substantial evidence to the agency about significant federal securities violations. In proposed legislation that the Chairman sent to Congress, a fund would be established to pay whistleblowers using money collected from wrongdoers that is not otherwise distributed to investors.
Conducting Risk-Based Examinations of Financial Firms: The SEC has dispatched its examiners to conduct a “sweep” of firms that present certain risk characteristics to ensure, among other things, that the clients’ assets in fact exist. Such risks include advisers whose clients’ assets are held with an affiliate, as opposed to an independent entity; hedge funds that seem to have “smooth” or outlier returns; firms that use an unknown auditor or no auditor at all; firms with a disciplinary history; and broker-dealers that sell an affiliate’s hedge fund or limited partnership.
Increasing Focus on Agency-Wide Risk Assessment: The SEC is assessing and improving the use of risk assessment techniques, agency-wide, to more proactively identify areas of risk to investors. The agency is increasing collaboration with third parties and other government agencies to identify firms or products that may pose risk to investors or markets. The agency is also improving our ability to monitor the industry — by identifying the data and information that financial firms would submit to the SEC — to allow it to better identify those particular firms that warrant a closer look by examiners and enforcement staff.
Improving Fraud Detection Techniques for Examiners: The SEC instituted measures to improve the ability of examiners to detect fraud and other types of violations. The measures include more rigorous reviews of firms before the examiners enter the premises, and a more complete exam guide that focuses not only on obvious signs of fraud but also more subtle signals that deserve closer inspection, such as a firm using an unknown accountant. The measures also include increased checks on outside entities to verify that assets actually exist there and expanded use of exams of an entire entity when firms have joint or dual registrants such as affiliated broker-dealers and investment advisers.
Recruiting Staff with Specialized Experience: The SEC is working to bring in new staff with diverse skill sets to expand its knowledge base and improve its ability to assess risk, conduct examinations, detect and investigate wrongdoing, and focus our priorities. Some initial examples included:
Senior Specialized Examiners: The agency is hiring new staffers to the examination unit who have specialized experience in areas such as trading, operations, portfolio management, options, compliance, valuation, new instruments and portfolio strategies, and forensic accounting.
Industry and Market Fellows Program: The agency is hiring new staffers who are highly-seasoned financial experts to keep pace with the practices of Wall Street and protect investors. These experts would provide other staffers with new information and perspectives to help them identify emerging issues and understand the ways the industry is changing.
Expanding and Targeting Training: The SEC is providing its staff with targeted training related to hedge funds and specialized products, derivatives and options, complex trading, and investigations of regulated entities. Additionally, the SEC is conducting programs to train hundreds of staffers to become Certified Fraud Examiners, and expanding the availability of programs for staffers to become Certified Financial Analysts.
Seeking More Resources: The SEC has been seeking additional funding to hire more examiners who can go into more financial firms to see whether they are in compliance with the law, as well as for more enforcement staff who can bring more enforcement cases when fraud and other violations of the law are found. In recent years, the SEC has not had adequate resources to oversee the securities industry. For example, the SEC has just over 400 people in its exam program to examine the more than 11,000 regulated investment advisers and 8,000 mutual funds.
Integrating Broker-Dealer and Investment Adviser Examinations: The New York Regional Office has adopted a protocol that will integrate examination teams to make sure people with the right skill sets are assigned to examinations. Under the new protocol, a single team of examiners, drawn from the broker-dealer and investment managements units, will jointly examine selected firms to ensure that the examination team includes those most expert in the subject of the exam. In addition, this initiative includes greater cross-training and coordination between broker-dealer and investment management staff on their examination plans.
Enhancing Licensing, Education and Oversight Regime for “Back-Office” Personnel: Working with senior SEC staff, FINRA has committed to establish a new system to enhance the oversight and professional requirements of personnel performing back-office functions at broker-dealer firms. “Back-office” personnel typically perform critical custody, accounting, transfer agency and account maintenance functions. They have an important role that must be performed with skill and integrity. Under the new regime, certain back-office personnel would be subject to licensing and education requirements as well as enhanced oversight. The new regime will further promote the qualifications and professionalism of those performing back office functions so that client accounts are better protected.
http://www.sec.gov/spotlight/secpostmadoffreforms.htm
Thanks to Jay B. Gould, Partner, Pillsbury Winthrop Shaw Pittman LLP.
In the wake of the Madoff fraud, the SEC’s Office of the Inspector General launched an internal investigation in December 2008 to determine why the agency did not detect the scheme. While awaiting the report, the SEC has been taking decisive and comprehensive steps to reduce the chances that such frauds will occur or be undetected in the future.
Safeguarding Investors’ Assets: The SEC in May proposed two rules that would better protect clients of investment advisers from theft and abuse. The rules would provide assurance to these clients that their accounts contain the funds that their investment adviser and account statements say they contain. Among other things, the rules would encourage investment advisers to place their clients’ assets in the custody of an independent firm.
Surprise Exams: One proposal would require all investment advisers who control or have custody of their clients’ assets to hire an independent public accountant to conduct an annual “surprise exam” to verify those assets actually exist. This surprise examination would provide another set of eyes on the clients’ assets, thereby offering additional protection against the theft or misuse of funds.
Third Party Reviews: A second proposal would apply to investment advisers who do not use independent firms to maintain their clients’ assets. Such advisers would be required to obtain a third party written report assessing the safeguards that protect the clients’ assets. The report — prepared by an accountant registered and inspected by the Public Company Accounting Oversight Board — would, among other things, describe the controls that are in place to protect the assets, the tests performed on the controls, and the results of those tests. Existing rules make no distinction between an investment adviser whose affiliate holds its clients’ funds and an investment adviser that uses a truly independent custodian.
Revitalizing the Enforcement Division: Under the leadership of a new Enforcement Director, the SEC is restructuring the division to better ensure that it focuses on significant cases that will have a meaningful impact. The restructuring will reduce bureaucracy and speed up the enforcement process by removing a layer of management in the 1,100 person division. The newly structured division will include specialized units that will enable staff in those units to concentrate their expertise in focused areas and help detect patterns, links, trends and motives. In addition, the Division is streamlining internal processes to make investigative procedures more efficient.
Revamping the Handling of Complaints and Tips: In order to improve the handling of hundreds of thousands of complaints, tips, and referrals it receives each year, the SEC has contracted with Mitre, a federally funded research and development center, to help the agency revamp its processes across the agency. After reviewing and analyzing its intake procedures, the SEC is now beginning to improve upon its processes for collecting, recording, investigating, referring and tracking this information. Among other things, the agency is creating a centralized system for handling this information. Once the information and processes are centralized, the agency will apply risk analytics to better enable it to reveal links, trends, statistical deviations and patterns that might not be observable when each complaint is examined one at a time.
Advocating for a Whistleblower Program: The SEC has advocated for expanded authority from Congress to reward whistleblowers who bring forward substantial evidence to the agency about significant federal securities violations. In proposed legislation that the Chairman sent to Congress, a fund would be established to pay whistleblowers using money collected from wrongdoers that is not otherwise distributed to investors.
Conducting Risk-Based Examinations of Financial Firms: The SEC has dispatched its examiners to conduct a “sweep” of firms that present certain risk characteristics to ensure, among other things, that the clients’ assets in fact exist. Such risks include advisers whose clients’ assets are held with an affiliate, as opposed to an independent entity; hedge funds that seem to have “smooth” or outlier returns; firms that use an unknown auditor or no auditor at all; firms with a disciplinary history; and broker-dealers that sell an affiliate’s hedge fund or limited partnership.
Increasing Focus on Agency-Wide Risk Assessment: The SEC is assessing and improving the use of risk assessment techniques, agency-wide, to more proactively identify areas of risk to investors. The agency is increasing collaboration with third parties and other government agencies to identify firms or products that may pose risk to investors or markets. The agency is also improving our ability to monitor the industry — by identifying the data and information that financial firms would submit to the SEC — to allow it to better identify those particular firms that warrant a closer look by examiners and enforcement staff.
Improving Fraud Detection Techniques for Examiners: The SEC instituted measures to improve the ability of examiners to detect fraud and other types of violations. The measures include more rigorous reviews of firms before the examiners enter the premises, and a more complete exam guide that focuses not only on obvious signs of fraud but also more subtle signals that deserve closer inspection, such as a firm using an unknown accountant. The measures also include increased checks on outside entities to verify that assets actually exist there and expanded use of exams of an entire entity when firms have joint or dual registrants such as affiliated broker-dealers and investment advisers.
Recruiting Staff with Specialized Experience: The SEC is working to bring in new staff with diverse skill sets to expand its knowledge base and improve its ability to assess risk, conduct examinations, detect and investigate wrongdoing, and focus our priorities. Some initial examples included:
Senior Specialized Examiners: The agency is hiring new staffers to the examination unit who have specialized experience in areas such as trading, operations, portfolio management, options, compliance, valuation, new instruments and portfolio strategies, and forensic accounting.
Industry and Market Fellows Program: The agency is hiring new staffers who are highly-seasoned financial experts to keep pace with the practices of Wall Street and protect investors. These experts would provide other staffers with new information and perspectives to help them identify emerging issues and understand the ways the industry is changing.
Expanding and Targeting Training: The SEC is providing its staff with targeted training related to hedge funds and specialized products, derivatives and options, complex trading, and investigations of regulated entities. Additionally, the SEC is conducting programs to train hundreds of staffers to become Certified Fraud Examiners, and expanding the availability of programs for staffers to become Certified Financial Analysts.
Seeking More Resources: The SEC has been seeking additional funding to hire more examiners who can go into more financial firms to see whether they are in compliance with the law, as well as for more enforcement staff who can bring more enforcement cases when fraud and other violations of the law are found. In recent years, the SEC has not had adequate resources to oversee the securities industry. For example, the SEC has just over 400 people in its exam program to examine the more than 11,000 regulated investment advisers and 8,000 mutual funds.
Integrating Broker-Dealer and Investment Adviser Examinations: The New York Regional Office has adopted a protocol that will integrate examination teams to make sure people with the right skill sets are assigned to examinations. Under the new protocol, a single team of examiners, drawn from the broker-dealer and investment managements units, will jointly examine selected firms to ensure that the examination team includes those most expert in the subject of the exam. In addition, this initiative includes greater cross-training and coordination between broker-dealer and investment management staff on their examination plans.
Enhancing Licensing, Education and Oversight Regime for “Back-Office” Personnel: Working with senior SEC staff, FINRA has committed to establish a new system to enhance the oversight and professional requirements of personnel performing back-office functions at broker-dealer firms. “Back-office” personnel typically perform critical custody, accounting, transfer agency and account maintenance functions. They have an important role that must be performed with skill and integrity. Under the new regime, certain back-office personnel would be subject to licensing and education requirements as well as enhanced oversight. The new regime will further promote the qualifications and professionalism of those performing back office functions so that client accounts are better protected.
http://www.sec.gov/spotlight/secpostmadoffreforms.htm
Thanks to Jay B. Gould, Partner, Pillsbury Winthrop Shaw Pittman LLP.
2 Sept 2009
Hedge Fund FII Named to Inc. 500/5000 List
Hedge fund firm, Financial Investments Inc. (FII), is to be recognized as one of the 500/5000 winners to be honored at a special event in Washington, the hedge fund will also be featured in the September issue of Inc. magazine.
The Inc. 500 celebrates the fastest-growing private companies in America. FII is a Herndon, Virginia-based Alternative financial investment management firm that has recently garnered national recognition for its growth and outstanding performance. Companies that qualify for the Inc. 500 must have a sales history of four or more years and annual revenues of at least $2 million in 2008.
FII has also been recognized by Virginia Business Magazine as a regional semi-finalist for its Small Business Success Story of the Year. In 2008 and 2009, the Virginia Chamber of Commerce also named FII to their "Fantastic 50" list of the state's 50 fastest growing companies.
"FII was founded in 1997, and has achieved annual revenue growth in excess of 40% each year for the last four years," said Craig Kendall, President and CEO. "Our customer focus and disciplined approach to investments with commodities, equities and equity indexes has resulted in consistent commendable returns for our institutional and private investors. Time and again we have exceeded returns to investors in excess of the S & P 500 during this year's volatile market," he added.
This is the second year that FII has been recognized in the Inc 500/5000 awards program. "FII continued with its growth and improvement of services all during the recent meltdown that the financial markets have experienced. A feat that we are most proud of", stated Kendall.
FII evolved from the original accounting firm of Kendall & Company, CPA's. In 2005, FII created Financial Commodity Investments (FCI) to provide products and services relating to commodity markets. As of July, 2009, the FCI products have generated net positive YTD returns in excess of 20% to investors. In August, 2009 the FCI alternative investment products were also recognized and ranked as one of the top Top Commodity Trading Advisors, CTA's for five year returns as tracked and reported by Barclays in their Barclay Managed Funds Report.
The Inc. 500 celebrates the fastest-growing private companies in America. FII is a Herndon, Virginia-based Alternative financial investment management firm that has recently garnered national recognition for its growth and outstanding performance. Companies that qualify for the Inc. 500 must have a sales history of four or more years and annual revenues of at least $2 million in 2008.
FII has also been recognized by Virginia Business Magazine as a regional semi-finalist for its Small Business Success Story of the Year. In 2008 and 2009, the Virginia Chamber of Commerce also named FII to their "Fantastic 50" list of the state's 50 fastest growing companies.
"FII was founded in 1997, and has achieved annual revenue growth in excess of 40% each year for the last four years," said Craig Kendall, President and CEO. "Our customer focus and disciplined approach to investments with commodities, equities and equity indexes has resulted in consistent commendable returns for our institutional and private investors. Time and again we have exceeded returns to investors in excess of the S & P 500 during this year's volatile market," he added.
This is the second year that FII has been recognized in the Inc 500/5000 awards program. "FII continued with its growth and improvement of services all during the recent meltdown that the financial markets have experienced. A feat that we are most proud of", stated Kendall.
FII evolved from the original accounting firm of Kendall & Company, CPA's. In 2005, FII created Financial Commodity Investments (FCI) to provide products and services relating to commodity markets. As of July, 2009, the FCI products have generated net positive YTD returns in excess of 20% to investors. In August, 2009 the FCI alternative investment products were also recognized and ranked as one of the top Top Commodity Trading Advisors, CTA's for five year returns as tracked and reported by Barclays in their Barclay Managed Funds Report.
Edinburgh Firm Expands Hedge Fund Business
Specialist active equity manager, Martin Currie Investment Management Limited, has expanded its global hedge fund arm with two senior hires, Alastair Barrie and Clayton Cheek.
Barrie joins in the newly created role of global head of hedge fund sales and Cheek joins as US head of hedge fund sales. Both bring with them extensive business development experience and join existing sales director, Mike Gibb.
Alastair pereviously worked at RBS where he was director of institutional business. In this new position he will be responsible for growing their global hedge fund business. Prior to RBS Alastair was director of global hedge fund sales and UK wholesale distribution at Henderson.
Clayton joins Martin Currie’s office in New York. Previously he worked for Man Investments in New York where he was head of institutional sales for the US. Prior to Man, he was managing director, head of client development Americas for Ivy Asset Management.
"We are thrilled that Alastair and Clayton are joining our successful and growing hedge fund business." Allan MacLeod, managing director of sales, marketing and client service at Martin Currie said, "Our hedge fund business is now over nine years old and has over US$1 billion under management across ten funds. It is a clear reflection on the quality of our business that we have been able to attract such high calibre professionals."
Martin Currie manages £10.7 billion ($18 billion) for clients worldwide, with $1.2 billion of that in absolute return funds.
Barrie joins in the newly created role of global head of hedge fund sales and Cheek joins as US head of hedge fund sales. Both bring with them extensive business development experience and join existing sales director, Mike Gibb.
Alastair pereviously worked at RBS where he was director of institutional business. In this new position he will be responsible for growing their global hedge fund business. Prior to RBS Alastair was director of global hedge fund sales and UK wholesale distribution at Henderson.
Clayton joins Martin Currie’s office in New York. Previously he worked for Man Investments in New York where he was head of institutional sales for the US. Prior to Man, he was managing director, head of client development Americas for Ivy Asset Management.
"We are thrilled that Alastair and Clayton are joining our successful and growing hedge fund business." Allan MacLeod, managing director of sales, marketing and client service at Martin Currie said, "Our hedge fund business is now over nine years old and has over US$1 billion under management across ten funds. It is a clear reflection on the quality of our business that we have been able to attract such high calibre professionals."
Martin Currie manages £10.7 billion ($18 billion) for clients worldwide, with $1.2 billion of that in absolute return funds.
1 Sept 2009
Castle Hall Alternatives Publishes White Paper on Hedge Fund Operational Failures
Hedge fund operational due diligence provider, Castle Hall Alternatives, published its latest White Paper, ‘From Manhattan to Madoff: the Causes and Lessons of Hedge Fund Operational Failure.’
The Paper’s analysis and findings are based on HedgeEvent, a comprehensive, web-based database of more than 300 operational events, now available to Castle Hall’s due diligence clients. HedgeEvent supplements HedgeDiligence, the firm’s existing client web portal.
Chris Addy, Castle Hall’s CEO, said “the colossal fraud perpetrated by Bernie Madoff, together with a number of other recent cases, has made investors acutely concerned by the risk of operational ‘blow ups’. However, there has been little systematic study of operational failure, meaning that investors have limited guidance as to the extent of this problem.”
“The creation of HedgeEvent, which has taken more than two years to compile, has enabled us to summarize key metrics related to hedge fund operational failure” said Addy. “From Manhattan to Madoff analyzes operational events by number, estimated loss, causal factor and by the strategy of the funds involved.”
HedgeEvent contains 327 cases of hedge fund operational failure through June 30, 2009. Madoff, with an estimated financial impact of $64 billion, is by far the largest; the remaining cases have an aggregate estimated financial impact of approximately $15 billion. Of the 327 operational events, 121 have an estimated impact of $10 million or more, and 31 of at least $100 million.
“While operational failures are material – Madoff spectacularly so – it does not seem that fraud is pervasive in the hedge fund industry” said Addy. “Investors should, however, be very focused on the lessons which can be learned from those hedge funds which did generate large losses. Many of these were well established firms which attracted capital from reputable investors.”
Across all Events, the most common causes of operational failure are theft and misappropriation followed by existence of assets (the manager claimed to own fake securities or operated a Ponzi scheme where reported assets did not exist). The most common strategies subject to operational failure are long / short equity followed by managed futures. It is notable that investors have traditionally viewed these strategies, holding largely exchange-traded securities, as straightforward with low operational risk.
The Paper’s analysis and findings are based on HedgeEvent, a comprehensive, web-based database of more than 300 operational events, now available to Castle Hall’s due diligence clients. HedgeEvent supplements HedgeDiligence, the firm’s existing client web portal.
Chris Addy, Castle Hall’s CEO, said “the colossal fraud perpetrated by Bernie Madoff, together with a number of other recent cases, has made investors acutely concerned by the risk of operational ‘blow ups’. However, there has been little systematic study of operational failure, meaning that investors have limited guidance as to the extent of this problem.”
“The creation of HedgeEvent, which has taken more than two years to compile, has enabled us to summarize key metrics related to hedge fund operational failure” said Addy. “From Manhattan to Madoff analyzes operational events by number, estimated loss, causal factor and by the strategy of the funds involved.”
HedgeEvent contains 327 cases of hedge fund operational failure through June 30, 2009. Madoff, with an estimated financial impact of $64 billion, is by far the largest; the remaining cases have an aggregate estimated financial impact of approximately $15 billion. Of the 327 operational events, 121 have an estimated impact of $10 million or more, and 31 of at least $100 million.
“While operational failures are material – Madoff spectacularly so – it does not seem that fraud is pervasive in the hedge fund industry” said Addy. “Investors should, however, be very focused on the lessons which can be learned from those hedge funds which did generate large losses. Many of these were well established firms which attracted capital from reputable investors.”
Across all Events, the most common causes of operational failure are theft and misappropriation followed by existence of assets (the manager claimed to own fake securities or operated a Ponzi scheme where reported assets did not exist). The most common strategies subject to operational failure are long / short equity followed by managed futures. It is notable that investors have traditionally viewed these strategies, holding largely exchange-traded securities, as straightforward with low operational risk.
31 Aug 2009
Bluenose Launches Capital Market Neutral Hedge Fund
Hedge fund manager, Bluenose Capital Management Ltd. is launching the Bluenose Capital Market Neutral Fund, aimed at accredited and professional investors.
Going live on October 1st, 2009, the new fund will employ a proprietary factor-based approach to trade highly liquid US & Canadian equities, according to a letter to investors obtained by HedgeCo.
"We strive to generate a 15% annual compound return with less volatility than the S&P/TSX and S&P500 with almost no correlation to the benchmarks," the fund manager said. "Our goal is to achieve absolute returns regardless of market conditions by combining US and Canadian equity market neutral and opportunistic trading strategies. Preservation of capital is of utmost importance." Bluenose said that potential investors should see an investment horizon of at least 5 years.
Bluenose is in September conducting meetings in 13 cities globaly from New York and Irvine to Milan and London.
Their projected timeline for the investment vehicles:
Years 1-3: Live trading of factor-based market neutral strategy: Bluenose Capital
Market Neutral Fund.
Estimated max capacity: $350M.
Years: 3-5: Deployment of statistical arbitrage strategy: Bluenose Star.
Estimated max capacity: $250M.
Year 7: Launch of the convertible arbitrage strategy: Bluenose Converts.
Estimated max capacity: $200M.
Bluenose Capital Ltd. is registered with the British Virgin Islands Financial Services Commission as a Professional Fund under the 1996 Mutual Funds Act.
Going live on October 1st, 2009, the new fund will employ a proprietary factor-based approach to trade highly liquid US & Canadian equities, according to a letter to investors obtained by HedgeCo.
"We strive to generate a 15% annual compound return with less volatility than the S&P/TSX and S&P500 with almost no correlation to the benchmarks," the fund manager said. "Our goal is to achieve absolute returns regardless of market conditions by combining US and Canadian equity market neutral and opportunistic trading strategies. Preservation of capital is of utmost importance." Bluenose said that potential investors should see an investment horizon of at least 5 years.
Bluenose is in September conducting meetings in 13 cities globaly from New York and Irvine to Milan and London.
Their projected timeline for the investment vehicles:
Years 1-3: Live trading of factor-based market neutral strategy: Bluenose Capital
Market Neutral Fund.
Estimated max capacity: $350M.
Years: 3-5: Deployment of statistical arbitrage strategy: Bluenose Star.
Estimated max capacity: $250M.
Year 7: Launch of the convertible arbitrage strategy: Bluenose Converts.
Estimated max capacity: $200M.
Bluenose Capital Ltd. is registered with the British Virgin Islands Financial Services Commission as a Professional Fund under the 1996 Mutual Funds Act.
29 Aug 2009
US Economic Policy as Boost for Hedge Funds - Report
US Economic policy continues to sway the global marketplace, says Global Hedge Fund Group Ltd. (GHF), this has been to the benefit of its hedge funds, and the life insurance settlement fund in particular.
Global Economic data is improving, GHF said, but is still being hampered by a weak housing market. Oil prices are rising again as tension in the Middle East continues. The Obama administration is tabling alternative energy initiatives. Healthcare reform has become a major issue, but many questions remain as to how far reform will go and what portions of the economy may be effected. Potential increased regulation within the financial industry and securities markets can be expected to have a wide-ranging impact on investment opportunities.
“All these factors underpin the continued trend of investors turning to our hedge funds. Our invested assets have grown more in the first half of 2009 than the last three years” said Jeremy Long, GHF Group Economic Analyst.
“There is so much uncertainty in the traditional equity markets. Brief periods of good news are still punctuated with minor corrections. Investors are asking tougher questions and looking for better solutions. These investors make up the majority of our new clients in the last two years.” Said Long.
Global Economic data is improving, GHF said, but is still being hampered by a weak housing market. Oil prices are rising again as tension in the Middle East continues. The Obama administration is tabling alternative energy initiatives. Healthcare reform has become a major issue, but many questions remain as to how far reform will go and what portions of the economy may be effected. Potential increased regulation within the financial industry and securities markets can be expected to have a wide-ranging impact on investment opportunities.
“All these factors underpin the continued trend of investors turning to our hedge funds. Our invested assets have grown more in the first half of 2009 than the last three years” said Jeremy Long, GHF Group Economic Analyst.
“There is so much uncertainty in the traditional equity markets. Brief periods of good news are still punctuated with minor corrections. Investors are asking tougher questions and looking for better solutions. These investors make up the majority of our new clients in the last two years.” Said Long.
28 Aug 2009
GAIM Launches Not-For-Profit Hedge Fund Series
Hedge fund events and information group, GAIM, has launched its first not-for-profit business breakfast briefing session.
In an effort to connect the alternative investment community with up to date information and contact with investors and peers in the industry, GAIM said the session would be the first in a series of breakfast seminars offering senior members of the hedge fund community the opportunity to stay connected between the GAIM flagship events that take place throughout the year.
The first meeting is scheduled for September 22, 2009 in New York at the Omni Berkshire, titled: 'Where the Market Opportunities Will Be and How to Avoid Pitfalls Putting Capital to Work in the Fall'
Speakers include; Ken Akoundi, Head of Pension Strategies, North America, Deutsch Bank Securities Inc, Greggory White, Trustee, Howard University, Jose F. Gonzalez-Heres, Managing Director, Fund of Hedge Funds portfolios and a member of the Investment Committee, Morgan Stanley Alternative Investment Partners.
In an effort to connect the alternative investment community with up to date information and contact with investors and peers in the industry, GAIM said the session would be the first in a series of breakfast seminars offering senior members of the hedge fund community the opportunity to stay connected between the GAIM flagship events that take place throughout the year.
The first meeting is scheduled for September 22, 2009 in New York at the Omni Berkshire, titled: 'Where the Market Opportunities Will Be and How to Avoid Pitfalls Putting Capital to Work in the Fall'
Speakers include; Ken Akoundi, Head of Pension Strategies, North America, Deutsch Bank Securities Inc, Greggory White, Trustee, Howard University, Jose F. Gonzalez-Heres, Managing Director, Fund of Hedge Funds portfolios and a member of the Investment Committee, Morgan Stanley Alternative Investment Partners.
27 Aug 2009
Rabbe Ekholm launches independent hedge fund replicator
Rabbe Ekholm, founder and CEO of True Beta LLC announced the launch of TrueBetaD and is holding a discussion on the importance of hedge fund replication strategies in New York September 15th.
"Institutional investors are reconsidering their traditional investment processes as hedge funds outperformed other asset classes last year, often by wide margins." Ekholm said, "At the same time investors now require greater transparency, risk control and liquidity from their hedge fund investments. They also increasingly want to distinguish between hedge fund alpha and beta."
Ekholm was until recently Chief Commercial Officer and a Member of the Management Board of Saxo Bank, prior to that he was a Managing Director at MSCI Barra, heading its Content Solutions Group.
"This demand is strengthening the important role replication strategies play in the investment process. These strategies allow investors access to hedge fund-like returns with cost effective fees, liquidity, transparency and without the headline risk of manager blow-ups or gates," he concluded.
The conference is scheduled to be held at the Walek & Associates Conference Room, 317 Madison Avenue @ 42nd Street, New York, NY.
TrueBeta LLC develops and markets quantitative financial strategies for institutional clients. Hedge fund replication is its lead offering. TrueBeta is based in Greenwich, Connecticut, USA.
"Institutional investors are reconsidering their traditional investment processes as hedge funds outperformed other asset classes last year, often by wide margins." Ekholm said, "At the same time investors now require greater transparency, risk control and liquidity from their hedge fund investments. They also increasingly want to distinguish between hedge fund alpha and beta."
Ekholm was until recently Chief Commercial Officer and a Member of the Management Board of Saxo Bank, prior to that he was a Managing Director at MSCI Barra, heading its Content Solutions Group.
"This demand is strengthening the important role replication strategies play in the investment process. These strategies allow investors access to hedge fund-like returns with cost effective fees, liquidity, transparency and without the headline risk of manager blow-ups or gates," he concluded.
The conference is scheduled to be held at the Walek & Associates Conference Room, 317 Madison Avenue @ 42nd Street, New York, NY.
TrueBeta LLC develops and markets quantitative financial strategies for institutional clients. Hedge fund replication is its lead offering. TrueBeta is based in Greenwich, Connecticut, USA.
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