Hedge Fund News From HedgeCo.Net http://www.hedgeco.net/news Breaking Hedge Fund News Fri, 19 Mar 2010 20:20:33 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 Pension to Appeal Dismissal of Lawsuit Against Amaranth http://www.hedgeco.net/news/03/2010/pension-to-appeal-dismissal-of-lawsuit-against-amaranth.html http://www.hedgeco.net/news/03/2010/pension-to-appeal-dismissal-of-lawsuit-against-amaranth.html#comments Fri, 19 Mar 2010 20:20:33 +0000 Editor http://www.hedgeco.net/news/?p=14639 New York (HedgeCo.net) – On Thursday, a Federal Judge dismissed a $150 million lawsuit brought by the San Diego County Employees Retirement Association (SDCERA) against Amaranth Investors on the basis of the fact that, like all investors, the county had signed offering documents indicating there was a chance of losing its $175 million investment.  New York federal court judge Deborah Batts ruled that the $7.2 billion dollar fund, which handles the benefits of more the 34,000 employees, should have been sophisticated enough to interpret the “clear, unambiguous language of the non-reliance provisions.” The ruling pointed specifically to language in Amaranth’s private placement memorandum (among 16 pages of legal disclaimers about the risk of investment) which said, “Investors must be prepared to lose all or substantially all of the investment in the Fund.”

The Connecticut-based hedge fund, which had assets totaling nearly $6 billion at its height, imploded in September 2006 because of a bad bet on natural gas trades.  Although the association managed to wrest about $70 million of its initial investment from the fund before it went under, in 2007, it filed the $150 million lawsuit to recover the remaining $105 million, plus an additional $45 million it claimed to have earned before the fund collapsed.  The SDCERA argued in its lawsuit that the disclaimers were standard and did not excuse the excessive risk taking and unreasonable conduct that led to Amaranth’s downfall.

It bears noting that while waiting for a ruling, Amaranth settled with the Federal Energy Regulation Commission for $7 million for violating anti-manipulation rules, the association said.  “None of those disclaimers advised us that Amaranth was going to break the law,” Brian White, CEO of the association, said. “It was never in our contract that Amaranth could engage in behavior for which they would later be sanctioned by the Federal Energy Regulatory Commission.”

“Disclaimers weren’t a license for Amaranth to do whatever it wanted at the expense of its clients,” Brian White said  in a news release. Disappointed by the judge’s ruling, the association’s board, which runs the association for county government employees, met Thursday and voted to appeal the decision.

By Colleen McCaffrey

For HedgeCo.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/pension-to-appeal-dismissal-of-lawsuit-against-amaranth.html/feed 0 Smart Energy’s Lang Is Betting Against Hedge Funds http://www.hedgeco.net/news/03/2010/smart-energy%e2%80%99s-lang-is-betting-against-hedge-funds.html http://www.hedgeco.net/news/03/2010/smart-energy%e2%80%99s-lang-is-betting-against-hedge-funds.html#comments Fri, 19 Mar 2010 12:10:36 +0000 Editor http://www.hedgeco.net/news/?p=14636 BusinessWeek – The top-ranked investor in renewable energy last year is betting hedge funds are wrong.

Thiemo Lang, manager of the 500 million euro ($681 million) SAM Smart Energy Fund, is buying stocks that most investors are selling, such as Chinese solar-panel manufacturers. He’s aiming to repeat the 83 percent gain in 2009 that placed him first on Bloomberg New Energy Finance’s ranking of clean-energy funds released today.

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]]> http://www.hedgeco.net/news/03/2010/smart-energy%e2%80%99s-lang-is-betting-against-hedge-funds.html/feed 0 Family offices may poach hedge fund staff http://www.hedgeco.net/news/03/2010/family-offices-may-poach-hedge-fund-staff.html http://www.hedgeco.net/news/03/2010/family-offices-may-poach-hedge-fund-staff.html#comments Fri, 19 Mar 2010 12:07:06 +0000 Editor http://www.hedgeco.net/news/?p=14634 Reuters – Families so rich they employ their own investment managers are set to increase their recruiting from an untapped pool of talent: hedge funds.

And in the wake of the financial crisis, more hedge funders may be open to joining so-called family offices, despite an initial cut in pay, according to Greg Coules and Adrienne Donald of recruiting firm Hunter Advisors.

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]]> http://www.hedgeco.net/news/03/2010/family-offices-may-poach-hedge-fund-staff.html/feed 0 Yale to Reduce H.F. Assets to Make Way for P.E. http://www.hedgeco.net/news/03/2010/yale-to-reduce-h-f-assets-to-make-way-for-p-e.html http://www.hedgeco.net/news/03/2010/yale-to-reduce-h-f-assets-to-make-way-for-p-e.html#comments Fri, 19 Mar 2010 12:05:43 +0000 Editor http://www.hedgeco.net/news/?p=14632 NYT – Yale University’s endowment plans to prune its hedge fund investments to make room for bigger stakes in private equity and real estate, Bloomberg News reported.

The fund plans to raise its P.E. investments to 26 percent from 21 percent. It also targeted a 37 percent investment in the asset class known real assets, which includes real estate and commodities, up from 29 percent as of June 2009, the news service said.

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]]> http://www.hedgeco.net/news/03/2010/yale-to-reduce-h-f-assets-to-make-way-for-p-e.html/feed 0 Ex-Hevesi Adviser Denies Committing Fraud In Fund Dealings http://www.hedgeco.net/news/03/2010/ex-hevesi-adviser-denies-committing-fraud-in-fund-dealings.html http://www.hedgeco.net/news/03/2010/ex-hevesi-adviser-denies-committing-fraud-in-fund-dealings.html#comments Fri, 19 Mar 2010 12:04:24 +0000 Editor http://www.hedgeco.net/news/?p=14630 WSJ – Henry “Hank” Morris, a one-time top political adviser to former New York Comptroller Alan Hevesi, denied committing fraud or any other crime in his dealings with the state’s largest pension fund.

In a court filing late Tuesday, William J. Schwartz, a lawyer for Morris, argued that the public shouldn’t be shocked that politically connected persons enjoy “readier access” to government decision makers.

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]]> http://www.hedgeco.net/news/03/2010/ex-hevesi-adviser-denies-committing-fraud-in-fund-dealings.html/feed 0 Markets spooked as Greek rescue plan crumbles http://www.hedgeco.net/news/03/2010/markets-spooked-as-greek-rescue-plan-crumbles.html http://www.hedgeco.net/news/03/2010/markets-spooked-as-greek-rescue-plan-crumbles.html#comments Fri, 19 Mar 2010 12:01:39 +0000 Editor http://www.hedgeco.net/news/?p=14628 Telegraph – The inability of the eurozone to put together a viable package after a month of talks has dismayed markets, which thought the terms of a deal had already been agreed. Yields on 10-year Greek bonds spiked 17 basis points yesterday to 6.26pc. The euro fell two cents against the dollar to below $1.36. “The facade of unity among eurozone members hardly held for more than a day,” said Beat Siegenthaler from UBS.

Greek Premier George Papandreou told the European Parliament that his country was running out of patience. It is in effect already subject to the full rigours of an IMF-style austerity plan but without enjoying any of the benefits. He said the savings from cost-cutting measures were vanishing into the pockets of bond-holders through higher interest rates.

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]]> http://www.hedgeco.net/news/03/2010/markets-spooked-as-greek-rescue-plan-crumbles.html/feed 0 Hedge Fund Managers Predict Inflows & Strategy For 2010 http://www.hedgeco.net/news/03/2010/hedge-fund-managers-predict-inflows-strategy-for-2010.html http://www.hedgeco.net/news/03/2010/hedge-fund-managers-predict-inflows-strategy-for-2010.html#comments Thu, 18 Mar 2010 12:59:02 +0000 Editor http://www.hedgeco.net/news/?p=14623 New York (HedgeCo.net) – Deutsche Bank surveyed over 600 investor entities worldwide, representing over $1 trillion in hedge fund assets, revealing that 52% of investors predict equity long/short to be one of the best performing strategies for 2010, and 51% believe they will increase their allocations to the strategy.

“In 2009, the hedge fund industry experienced its best annual performance in a decade, and investors predict continued strength in 2010,” said Barry Bausano, Co-Head of Global Prime Finance. “Investors predict inflows of $222 billion this year, which would increase the total amount of hedge fund assets under management to approximately $1.722 trillion by 2011.”

“The hedge fund industry weathered the global financial crisis and matured as a result,” said Jonathan Hitchon, Co-Head of Global Prime Finance. “Risk management remains a top consideration for investors when assessing a hedge fund manager, and investors are increasingly using consultants to perform specialist operational due diligence.”

Some highlights from Deutsche’s Bank Eighth Annual Alternative Investment Survey include:

  • Survey participants are looking to reduce their cash levels over the next 6 months by $3.09 billion, and 29% have 10% or upwards of cash available to allocate to hedge funds
  • While the hedge fund industry has proven resilient, investors have not forgiven management’s behavior during the crisis: 80% of investors will not make a new allocation to a manager who has frozen or suspended assets in the past
  • There is a continued appetite amongst investors for managed accounts: 14% currently use managed accounts and 26% of investors are likely to in the immediate future
  • Investors remain reluctant to allocate to small start-up funds, with 50% requiring the start-up to have at least AUM $100 million before investing.

Survey respondents represent asset management companies, corporations, family offices, high net worth individuals, foundations, endowments, fund of funds, insurance companies, investment consultants, private banks and private and public pension plans. The Bank’s Hedge Fund Capital Group, within its Global Prime Finance business, conducted the survey during January 2010.

Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/hedge-fund-managers-predict-inflows-strategy-for-2010.html/feed 0 Flowering Tree Grows Hedge Fund Fivefold, Outperforms Peers http://www.hedgeco.net/news/03/2010/flowering-tree-grows-hedge-fund-fivefold-outperforms-peers.html http://www.hedgeco.net/news/03/2010/flowering-tree-grows-hedge-fund-fivefold-outperforms-peers.html#comments Thu, 18 Mar 2010 12:47:27 +0000 Editor http://www.hedgeco.net/news/?p=14621 BusinessWeek – Flowering Tree Investment Management Pte, set up by the co-founder of New York-based Sansar Capital Management LLC, has grown its Asian equities hedge fund more than fivefold as it outperformed peers.

Singapore-based Flowering Tree’s fund has grown to more than $70 million, from $12.5 million when it started trading in May, founder Rajesh Sachdeva, 41, said in an interview.

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]]> http://www.hedgeco.net/news/03/2010/flowering-tree-grows-hedge-fund-fivefold-outperforms-peers.html/feed 0 Ex-Barclays Tailor, Mosquera Start Bank Hedge Fund http://www.hedgeco.net/news/03/2010/ex-barclays-tailor-mosquera-start-bank-hedge-fund.html http://www.hedgeco.net/news/03/2010/ex-barclays-tailor-mosquera-start-bank-hedge-fund.html#comments Thu, 18 Mar 2010 12:45:30 +0000 Editor http://www.hedgeco.net/news/?p=14619 BusinessWeek – Rupesh Tailor and Jose Mosquera, who worked together as credit traders at Barclays Capital, are starting a regulated hedge fund in Madrid to bet on a shake-up of the banking industry using default swaps, bonds and equities.

Tailor, 30, and Mosquera, 37, will seek to profit from mergers, spin offs and bail outs as banks emerge from the worst financial crisis since the 1930s, the traders said in an interview. They are initially seeking to raise $70 million for the Breogan Global Financials Fund and as much as $200 million by year end.

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]]> http://www.hedgeco.net/news/03/2010/ex-barclays-tailor-mosquera-start-bank-hedge-fund.html/feed 0 Illinois commission allocates $135 million to hedge funds http://www.hedgeco.net/news/03/2010/illinois-commission-allocates-135-million-to-hedge-funds.html http://www.hedgeco.net/news/03/2010/illinois-commission-allocates-135-million-to-hedge-funds.html#comments Thu, 18 Mar 2010 12:44:10 +0000 Editor http://www.hedgeco.net/news/?p=14617 Pensions&Investments – The Illinois Student Assistance Commission, Chicago, allocated a total of $135 million to three hedge fund managers, its first move in the area.

The three are among 13 hedge fund firms approved to run assets of the $982 million College Illinois! Prepaid Tuition Program fund.

Balestra Spectrum and Pinnacle Natural Resources were assigned $55 million each, while Neuberger Berman’s NB Alternative Investment Management got $25 million, according to an ISAC report. All three are hedge funds of funds.

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]]> http://www.hedgeco.net/news/03/2010/illinois-commission-allocates-135-million-to-hedge-funds.html/feed 0 ‘Sinister’ German Plan Aimed at Funds, Analysts Say http://www.hedgeco.net/news/03/2010/%e2%80%98sinister%e2%80%99-german-plan-aimed-at-funds-analysts-say.html http://www.hedgeco.net/news/03/2010/%e2%80%98sinister%e2%80%99-german-plan-aimed-at-funds-analysts-say.html#comments Thu, 18 Mar 2010 12:42:39 +0000 Editor http://www.hedgeco.net/news/?p=14615 Bloomberg – Germany’s suggestion that it may order spies to track speculators targeting currencies is “sinister and silly,” according to analysts, who said hedge funds in London and New York would be the targets.

Germany’s Finance Minister Wolfgang Schaeuble told the Bundestag on March 16 that the country may have to consider ordering “intelligence agencies to set up surveillance of who is getting together with whom for which kinds of speculative processes, and where” to protect the euro.

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]]> http://www.hedgeco.net/news/03/2010/%e2%80%98sinister%e2%80%99-german-plan-aimed-at-funds-analysts-say.html/feed 0 Hedge Fund Rules Aren’t Dead, Minister Says http://www.hedgeco.net/news/03/2010/hedge-fund-rules-aren%e2%80%99t-dead-minister-says.html http://www.hedgeco.net/news/03/2010/hedge-fund-rules-aren%e2%80%99t-dead-minister-says.html#comments Thu, 18 Mar 2010 12:40:29 +0000 Editor http://www.hedgeco.net/news/?p=14613 NYT  – Hedge funds and private equity may have won a short reprieve after EU finance ministers agreed to delay a decision on new rules for the industry, but the proposals aren’t dead, Jean-Paul Gauzes, a French member of the European Parliament, told Bloomberg News.

On Tuesday, the ministers, meeting in Brussels, decided to take a couple more months to try to reach consensus on the issues, after U.K. Prime Minister Gordon Brown expressed that fears that too much regulation could drive the industry from London.

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]]> http://www.hedgeco.net/news/03/2010/hedge-fund-rules-aren%e2%80%99t-dead-minister-says.html/feed 0 Hedge Fund Manager Survey Finds Sentiment Moving Against Europe, in Favor of U.S. http://www.hedgeco.net/news/03/2010/hedge-fund-manager-survey-finds-sentiment-moving-against-europe-in-favor-of-u-s.html http://www.hedgeco.net/news/03/2010/hedge-fund-manager-survey-finds-sentiment-moving-against-europe-in-favor-of-u-s.html#comments Wed, 17 Mar 2010 12:20:01 +0000 Editor http://www.hedgeco.net/news/?p=14609 New York (HedgeCo.net) – Investors have recovered their bullishness towards equity markets but are shifting their focus away from Europe and into the U.S. and Japan, according to the BofA Merrill Lynch Survey of Fund Managers for March.

A total of 207 fund managers, managing a total of US$589 billion, participated in the global survey from 5 March to 11 March. A total of 165 managers, managing US$403 billion, participated in the regional surveys.

After weakened sentiment in February, the survey shows that investors have restored their faith in equities with a net 46 percent of asset allocators saying they are overweight the asset class, up from 33 percent the previous month. Cash positions have fallen with respondents at a net neutral cash allocation compared with a net 12 percent underweight in February.

Asset allocators have retrenched from Europe, however. A net 21 percent are underweight European equities this month, up sharply from a net 2 percent overweight in January.

The change in favor of U.S. equities has been similar. A net 19 percent of asset allocators are overweight U.S. equities this month, up from just 1 percent in January. Japan is also regaining popularity. A net 6 percent of allocators are overweight Japanese equities, the most bullish reading since August 2007, and up from a net 10 percent underweight in January.

Global investors believe that the corporate outlook is better away from Europe. A net 40 percent of the panel says the outlook for eurozone corporate profits is the least favorable of all regions.

“Investors’ concerns about Greece are easing, but European country risk remains a key constraint to optimism over economic recovery,” said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Research. “Investors are more willing to embrace corporate risk, via equities, than sovereign risk,” said Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch Research.

The net number of European fund managers predicting growth in their own economy over the coming 12 months has fallen to 45 percent, down from 72 percent in January, according to the Regional Fund Manager Survey. While European sentiment might have been expected to weaken, a similar fall in optimism is also evident among U.S. investors. A net 43 percent forecast growth in the American economy over the next 12 months, down from a net 76 percent in January.

Investors in both regions have stronger belief in earnings growth. A net 60 percent of European respondents predict improved earnings in the coming 12 months, an increase of 11 percent on February. Their colleagues in the U.S. are more positive with a net 72 percent forecasting earnings growth, up from a net 52 percent in February.

U.S. and European investors have significantly scaled back their cash allocations. A net 9 percent of the European panel is overweight cash this month, down from 26 percent in February. The corresponding numbers for U.S. investors are a net 8 percent in March and 19 percent in February.

European respondents have increased exposure to cyclical sectors, including Basic Resources and Construction. They have reduced their underweight position on banks. US investors have also increased exposure to cyclicals, such as Industrials and Materials, but have extended their underweight positions in Banks.

Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/hedge-fund-manager-survey-finds-sentiment-moving-against-europe-in-favor-of-u-s.html/feed 0 EU hedge fund curbs delayed after the intervention of Gordon Brown http://www.hedgeco.net/news/03/2010/eu-hedge-fund-curbs-delayed-after-the-intervention-of-gordon-brown.html http://www.hedgeco.net/news/03/2010/eu-hedge-fund-curbs-delayed-after-the-intervention-of-gordon-brown.html#comments Wed, 17 Mar 2010 12:12:24 +0000 Editor http://www.hedgeco.net/news/?p=14606 Telegraph – The ECOFIN gathering of finance ministers from the 27 EU states had been due to debate the Alternative Investment Fund Managers (AIFM) directive but it was removed from discussion. Instead, it will now be tabled at next month’s G20 Summit to stave off growing criticism that proposed new rules are protectionist and contravene G20 agreement.

The action followed a call by the Prime Minister on Monday night to his Spanish counterpart Jose Luis Rodriguez Zapatero, whose country holds the EU presidency, insisting Britain would not accept a compromise plan.

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]]> http://www.hedgeco.net/news/03/2010/eu-hedge-fund-curbs-delayed-after-the-intervention-of-gordon-brown.html/feed 0 Hedge funds as heroes http://www.hedgeco.net/news/03/2010/hedge-funds-as-heroes.html http://www.hedgeco.net/news/03/2010/hedge-funds-as-heroes.html#comments Wed, 17 Mar 2010 12:10:26 +0000 Editor http://www.hedgeco.net/news/?p=14604 BBC – In the autumn of 2008, during the worst global banking crisis since the 1930s, I was interviewed by French television and asked to explain the malevolent role of hedge funds in causing the mess we were in.

When I said that hedge funds were really not at the heart of the matter, the interviewer was shocked and disappointed. She was in London on a mission to tell the truth to her viewers about the malignancy of hedge funds, and her script did not allow for a different version of events.

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]]> http://www.hedgeco.net/news/03/2010/hedge-funds-as-heroes.html/feed 0 Ebullio Commodity Hedge Fund Says January Loss Was 70% Not 1.1% http://www.hedgeco.net/news/03/2010/ebullio-commodity-hedge-fund-says-january-loss-was-70-not-1-1.html http://www.hedgeco.net/news/03/2010/ebullio-commodity-hedge-fund-says-january-loss-was-70-not-1-1.html#comments Wed, 17 Mar 2010 12:09:08 +0000 Editor http://www.hedgeco.net/news/?p=14602 BusinessWeek – Ebullio Capital Management LLP said its commodity hedge fund fell almost 70 percent in January, not the 1.1 percent decline originally reported to investors, letters to investors show.

The 1.1 percent drop was announced in the January notice and changed to 69.65 percent in the February report, the documents show. The fund, based in Southend-on-Sea, England, fell another 86 percent last month, taking its plunge in the first two months to 96 percent. The biggest losses were in copper, nickel and tin, according to the February letter.

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]]> http://www.hedgeco.net/news/03/2010/ebullio-commodity-hedge-fund-says-january-loss-was-70-not-1-1.html/feed 0 Hedge funds turn cautious on stocks after ‘09 gains http://www.hedgeco.net/news/03/2010/hedge-funds-turn-cautious-on-stocks-after-09-gains.html http://www.hedgeco.net/news/03/2010/hedge-funds-turn-cautious-on-stocks-after-09-gains.html#comments Wed, 17 Mar 2010 12:08:02 +0000 Editor http://www.hedgeco.net/news/?p=14600 Reuters – European hedge funds have been cutting back some of their bets on stocks on concerns over the outlook for economic growth after last year’s profits bonanza, with some fearing markets could still drop below 2009 lows.

Large bets on rising stocks helped hedge funds make gains of nearly 19 percent last year, according to Credit Suisse/Tremont, but prime brokers say funds have grown more cautious in recent weeks in areas such as U.S. and European stocks.

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]]> http://www.hedgeco.net/news/03/2010/hedge-funds-turn-cautious-on-stocks-after-09-gains.html/feed 0 UCITS III Fund Assets Rise to $52.3 Billion, Eurekahedge Says http://www.hedgeco.net/news/03/2010/ucits-iii-fund-assets-rise-to-52-3-billion-eurekahedge-says.html http://www.hedgeco.net/news/03/2010/ucits-iii-fund-assets-rise-to-52-3-billion-eurekahedge-says.html#comments Wed, 17 Mar 2010 12:06:34 +0000 Editor http://www.hedgeco.net/news/03/2010/ucits-iii-fund-assets-rise-to-52-3-billion-eurekahedge-says.html BusinessWeek – Assets managed by UCITS III funds have increased to $52.3 billion over the last two years amid moves by hedge-fund managers to reach investors seeking funds compliant with European Union rules.

There are about 500 hedge-fund offerings that comply with the directive, known by an acronym for Undertakings for Collective Investment in Transferable Securities, according to Singapore-based Eurekahedge Pte. The funds, which are allowed to use alternative investment strategies such as shorting and leverage to boost returns, have outperformed mutual funds by 15.2 percent over the last three years, the research firm said.

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]]> http://www.hedgeco.net/news/03/2010/ucits-iii-fund-assets-rise-to-52-3-billion-eurekahedge-says.html/feed 0 SEC Charges Texas Hedge Fund Advisor With Fraud http://www.hedgeco.net/news/03/2010/sec-charges-texas-hedge-fund-advisor-with-fraud.html http://www.hedgeco.net/news/03/2010/sec-charges-texas-hedge-fund-advisor-with-fraud.html#comments Tue, 16 Mar 2010 08:22:32 +0000 Editor http://www.hedgeco.net/news/?p=14593 New York (HedgeCo.net) – The SEC has filed a federal case against hedge fund advisor Stephen X. Kim and Spyglass Management, L.P. for their roles in allegedly defrauding Spyglass Capital Partners, L.P., a hedge fund managed by Kim through Spyglass, according to court filings.

The SEC complaint, filed in Texas, alleges that between in 2004 and 2006, Kim and Spyglass raised approximately $4.7 million from investors located primarily in Houston, Texas using offering materials that contained misleading information relating to Kim’s education, business experience, and compensation.

The SEC alleges that Kim and Spyglass failed to employ any hedging strategy to manage risk, causing the hedge fund to loose over $2 million then directing the hedge fund to make approximately $1.7 million in Ponzi payments to investors.

Finally, the SEC alleges that Kim misappropriated approximately $1.5 million of the hedge fund’s remaining assets to repay several outstanding personal obligations.

Without admitting or denying the allegations, Kim and Spyglass  made a  settlement with the SEC, pending the approval of the United States District Court for the Southern District of Texas.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/sec-charges-texas-hedge-fund-advisor-with-fraud.html/feed 1 UK clashes with France on hedge fund rules http://www.hedgeco.net/news/03/2010/uk-clashes-with-france-on-hedge-fund-rules.html http://www.hedgeco.net/news/03/2010/uk-clashes-with-france-on-hedge-fund-rules.html#comments Tue, 16 Mar 2010 08:01:11 +0000 Editor http://www.hedgeco.net/news/?p=14591 AP – Britain is set to lose a clash with France on new European Union hedge fund rules that EU finance ministers will haggle over on Tuesday.

Paris leads most EU governments in favoring tougher restrictions for funds based outside the 27-nation bloc.

The new law, when completed, could block foreign funds from Europe if they don’t face tight oversight at home. This is aimed at funds based in tax havens like the Cayman Islands where supervisors might not be checking on risks they are taking on.

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]]> http://www.hedgeco.net/news/03/2010/uk-clashes-with-france-on-hedge-fund-rules.html/feed 0 Dodd bill sets hedge fund registration threshold at $100 million http://www.hedgeco.net/news/03/2010/dodd-bill-sets-hedge-fund-registration-threshold-at-100-million.html http://www.hedgeco.net/news/03/2010/dodd-bill-sets-hedge-fund-registration-threshold-at-100-million.html#comments Tue, 16 Mar 2010 07:57:14 +0000 Editor http://www.hedgeco.net/news/?p=14588 Pensions&Investments – All hedge funds that manage more than $100 million will be required to register with the SEC and disclose financial data to determine whether fund activities pose a risk to the nation’s financial system, under major financial regulatory reform legislation unveiled today by Senate Banking Committee Chairman Christopher Dodd, D-Conn.

According to a bill summary, regulation of money managers with less than $100 million in assets under management would shift to individual state regulation from SEC purview. Under existing law, money managers with more than $25 million in assets under management are required to register with the SEC.

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]]> http://www.hedgeco.net/news/03/2010/dodd-bill-sets-hedge-fund-registration-threshold-at-100-million.html/feed 0 Citigroup Bolsters Trading Unit as Volcker Rule Spurs Defectors http://www.hedgeco.net/news/03/2010/citigroup-bolsters-trading-unit-as-volcker-rule-spurs-defectors.html http://www.hedgeco.net/news/03/2010/citigroup-bolsters-trading-unit-as-volcker-rule-spurs-defectors.html#comments Tue, 16 Mar 2010 07:54:51 +0000 Editor http://www.hedgeco.net/news/?p=14586 BusinessWeek – Citigroup Inc., the bank 27 percent owned by the U.S., is bolstering a unit that trades stocks with the bank’s own money after a proposed government ban of so- called proprietary trading helped spur eight of its 22 employees to defect, people with direct knowledge of the matter said.

Kevin Russell, head of Americas stock trading, told employees and securities firms supporting the unit last week that Citigroup may increase the group’s trading limits and capital, according to the people. The New York-based bank will replace some or all of the six portfolio managers and analysts who left since their leader, Matt Carpenter, quit in February, according to two of the people, who declined to be identified because the unit’s operations are confidential.

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]]> http://www.hedgeco.net/news/03/2010/citigroup-bolsters-trading-unit-as-volcker-rule-spurs-defectors.html/feed 0 SSARIS Wins Fund of Hedge Fund Award http://www.hedgeco.net/news/03/2010/ssaris-wins-fund-of-hedge-fund-award.html http://www.hedgeco.net/news/03/2010/ssaris-wins-fund-of-hedge-fund-award.html#comments Tue, 16 Mar 2010 07:45:37 +0000 Editor http://www.hedgeco.net/news/?p=14580 New York (HedgeCo.net) – Hedge fund and FoHF manager, SSARIS Advisors, LLC, won the “Global Multi-Strategy over 3 years” award ($500 million -$1 billion) at the annual InvestHedge FoHF Awards ceremony held last night in New York City. SSARIS won in the Multi-Manager Absolute Return Strategy category.

To qualify, all funds of funds must provide a strategy allocation breakdown for each fund nominated. InvestHedge has the final say in which category a fund is nominated. Winners are decided using an established methodology based on a combination of Sharpe ratios and returns over the relevant time period.

SSARIS Advisors, LLC is a majority-owned subsidiary of State Street Global Alliance, LLC. SSARIS Advisors, LLC was founded in 2001 and is directed by Mark Rosenberg, Chairman and CIO; Peter Hinrichs, CFO and Chief Compliance Officer; and Jim Tomeo, COO and Senior Portfolio Manager.

With $1.9 trillion in assets under management, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 26 cities worldwide.

Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/ssaris-wins-fund-of-hedge-fund-award.html/feed 0 Europe Risks U.S. Fight Over Hedge, Private Equity Fund Rules http://www.hedgeco.net/news/03/2010/europe-risks-u-s-fight-over-hedge-private-equity-fund-rules.html http://www.hedgeco.net/news/03/2010/europe-risks-u-s-fight-over-hedge-private-equity-fund-rules.html#comments Tue, 16 Mar 2010 07:28:04 +0000 Editor http://www.hedgeco.net/news/?p=14577 BusinessWeek – European finance ministers meeting today in Brussels to discuss hedge fund and private equity regulation may risk a trade war if they stick to a plan to force funds outside the region to comply with European Union rules.

Transatlantic tensions grew last week when EU financial- services commissioner Michel Barnier vowed to defend the bloc’s Proposals after they were criticized by U.S. Treasury Secretary Timothy F. Geithner. Geithner said in a letter to Barnier that the proposed rules may discriminate against U.S. funds. The plan would force funds based outside the EU to accept the rules if they attract investors from the 27-nation bloc.

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]]> http://www.hedgeco.net/news/03/2010/europe-risks-u-s-fight-over-hedge-private-equity-fund-rules.html/feed 0 Hedge Funds Fail When ‘Rock Stars’ Are in Charge: Matthew Lynn http://www.hedgeco.net/news/03/2010/hedge-funds-fail-when-%e2%80%98rock-stars%e2%80%99-are-in-charge-matthew-lynn.html http://www.hedgeco.net/news/03/2010/hedge-funds-fail-when-%e2%80%98rock-stars%e2%80%99-are-in-charge-matthew-lynn.html#comments Tue, 16 Mar 2010 07:26:24 +0000 Editor http://www.hedgeco.net/news/?p=14575 Bloomberg – The ideal hedge fund should be like a good local restaurant: reliable, high-quality, a loyal group of customers, and unknown to the rest of the world.

Pierre-Henri Flamand is just the latest star trader who should remember this. The 39-year-old is leaving Goldman Sachs Group Inc. to start his own hedge fund.

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]]> http://www.hedgeco.net/news/03/2010/hedge-funds-fail-when-%e2%80%98rock-stars%e2%80%99-are-in-charge-matthew-lynn.html/feed 0 Hedge Funds May Get $222 Billion Inflows in 2010, Survey Says http://www.hedgeco.net/news/03/2010/hedge-funds-may-get-222-billion-inflows-in-2010-survey-says.html http://www.hedgeco.net/news/03/2010/hedge-funds-may-get-222-billion-inflows-in-2010-survey-says.html#comments Tue, 16 Mar 2010 07:20:30 +0000 Editor http://www.hedgeco.net/news/?p=14572 BusinessWeek – Hedge funds globally may attract $222 billion of fresh capital this year, according to a survey by Deutsche Bank AG, marking the first annual net inflow since the global financial crisis hit in 2007.

That will increase hedge fund assets to $1.72 trillion, the annual survey from the German bank shows. Chicago-based data provider Hedge Fund Research Inc. estimated industry assets at $1.6 trillion by December after investors pulled out $131 billion of capital in 2009.

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]]> http://www.hedgeco.net/news/03/2010/hedge-funds-may-get-222-billion-inflows-in-2010-survey-says.html/feed 0 UCITS Hedge Fund Strategy Index up 0,93% in First Two Weeks of March http://www.hedgeco.net/news/03/2010/ucits-hedge-fund-strategy-index-up-093-in-first-two-weeks-of-march.html http://www.hedgeco.net/news/03/2010/ucits-hedge-fund-strategy-index-up-093-in-first-two-weeks-of-march.html#comments Mon, 15 Mar 2010 14:09:27 +0000 Editor http://www.hedgeco.net/news/?p=14566 New York (HedgeCo.net) – The UCITS Hedge Fund Strategy Index gained 0,93% within the first two weeks in March 2010, every strategy except fixed income and market neutral were positive, Global macro not only being the most successful strategy in 2010 but also in March with gains of 2,85% so far.

The other most successful strategies in March are convertible (+1,75%), CTA (+1,70%) and L/S equity (+1,54%), the latter turning positive ytd for the first time.

The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS III funds that apply absolute return strategies, have more than 10 Million Euros of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.

The indices are calculated on every 5th, 10th and 15th business day and at the end of each month by the index calculator Structured Solutions AG.

There have been 8 UCITS hedge fund launches since January 2010.

Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/ucits-hedge-fund-strategy-index-up-093-in-first-two-weeks-of-march.html/feed 0 People Moves – Execution Noble Continues Expansion in Energy Sector http://www.hedgeco.net/news/03/2010/people-moves-execution-noble-continues-expansion-in-energy-sector.html http://www.hedgeco.net/news/03/2010/people-moves-execution-noble-continues-expansion-in-energy-sector.html#comments Mon, 15 Mar 2010 13:52:06 +0000 Editor http://www.hedgeco.net/news/?p=14563 Execution Noble LLC, a leading investment banking and securities firm, today announced that it has hired Thomas A. Rinaldi as Senior Energy Desk Analyst to further build out the firm’s expertise in the sector.

Rinaldi joins Execution Noble with nearly 10 years of experience covering various aspects of the energy sector. In his new role, Rinaldi will conduct daily, ongoing sector specific stock analysis, primarily in the oilfield services, exploration & production, and refining verticals. He will focus on developing stock selection, relative value and event driven investment ideas to support the Sales & Trading team in providing clients with actionable execution strategies.

“We are committed to providing our customers with value added content and idea generation. To that end we will continue to complement our highly regarded sales trading team with senior desk analysts who truly understand their respective fields but will not be encumbered by having to publish traditional research,” Gary Cunningham, CEO, Execution Noble LLC said. “We will continue to create verticals that will leverage our international expertise and complement our pending merger with Banco Espirito Santo.”

Prior to joining Execution Noble, Rinaldi worked at Brencourt Advisors, a $2.5 billion Multi-Strategy Fund, as an Oil & Gas Equity Analyst/Portfolio Manager. Earlier in his career, Rinaldi was a Senior Equity Research Analyst covering offshore drilling contractors at Deutsche Bank Securities. He holds a Master of Business Administration in Finance from The Wharton School of University of Pennsylvania and a Bachelor of Arts, cum laude in Economics from Harvard University.

Execution Noble’s energy expertise includes capital markets, investment banking and M&A capabilities. The energy team is lead in the United Kingdom by Joe Philipsz, Head of the Power & Infrastructure Group and in the United States by Christopher Ruppel, Managing Director Capital Markets, and is active in both conventional and renewable energy.

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]]> http://www.hedgeco.net/news/03/2010/people-moves-execution-noble-continues-expansion-in-energy-sector.html/feed 0 New Ticonderoga Launch As Hedge Funds Embrace ETFs http://www.hedgeco.net/news/03/2010/new-ticonderoga-launch-as-hedge-funds-embrace-etfs.html http://www.hedgeco.net/news/03/2010/new-ticonderoga-launch-as-hedge-funds-embrace-etfs.html#comments Mon, 15 Mar 2010 13:40:11 +0000 Editor http://www.hedgeco.net/news/?p=14557 New York (HedgeCo.net) – Institutional broker dealer, Ticonderoga Securities has launched an exchange traded funds (ETF) desk, led by industry veteran William Bauer. Bauer joins Ticonderoga with more than 18 years of institutional equity and derivative sales and trading experience, with five years focused on ETFs.

“Hedge funds and money managers are increasingly embracing ETFs as a superior product with greater transparency and liquidity,” said Bauer. “As this continues, Ticonderoga will be positioned well for growth.”

The new group will specialize in market making capabilities for institutional investors moving in and out of ETFs. The team will also advise clients on portfolio-trading issues, provide analysis and strategy, and assist in order execution through strong collaboration with the firm’s Sales & Trading Desk. As head of the ETF Desk, Bauer will focus on building out the ETF platform over the next several months, adding support staff, assistant traders and sales traders focused on ETF sales.

Bauer comes to Ticonderoga from Knight Capital, where he was a Director in ETF sales and trading. Before that, he was Vice President in sales and trading on the ETF market-making desk at Newedge Financial LLC, and also served as Vice President in sales and trading at RBC Capital Markets. Bauer attended University of Hartford with a focus on economics and finance.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/new-ticonderoga-launch-as-hedge-funds-embrace-etfs.html/feed 0 China state fund open to shorting stocks-fund manager http://www.hedgeco.net/news/03/2010/china-state-fund-open-to-shorting-stocks-fund-manager.html http://www.hedgeco.net/news/03/2010/china-state-fund-open-to-shorting-stocks-fund-manager.html#comments Mon, 15 Mar 2010 13:20:03 +0000 Editor http://www.hedgeco.net/news/?p=14554 Reuters – China’s $300 billion sovereign wealth fund is looking at directly investing in funds that could benefit from falling equity prices, a top manager at Pyramis Global Advisors said on Monday.

China Investment Corp [CIC.UL] spent last year diversifying its investments into commodities, real estate and other asset classes, though the ability to short stocks means the state-backed investor would employ a strategy traditionally used by hedge funds.

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]]> http://www.hedgeco.net/news/03/2010/china-state-fund-open-to-shorting-stocks-fund-manager.html/feed 0 Exchange-Listed Hedge Funds’ Surprising Survival Rates http://www.hedgeco.net/news/03/2010/exchange-listed-hedge-funds-surprising-survival-rates.html http://www.hedgeco.net/news/03/2010/exchange-listed-hedge-funds-surprising-survival-rates.html#comments Mon, 15 Mar 2010 13:18:42 +0000 Editor http://www.hedgeco.net/news/?p=14552 SeekingAlpha – Given the market disaster that was 2008, one would expect that any alternative investment firm that dipped its toe into the equity offering market is worse for the wear for becoming publicly held.

From London-based and London Stock Exchange-listed Marshall Wace on down to the many littler guys who lined up to list on the Irish exchange and others, both for permanent capital raising and for getting the rubber-stamp approval of being listed, it’s been a kind of given that in hindsight the efforts of going public weren’t really worth it.

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]]> http://www.hedgeco.net/news/03/2010/exchange-listed-hedge-funds-surprising-survival-rates.html/feed 0 Former Atticus manager to open new firm http://www.hedgeco.net/news/03/2010/former-atticus-manager-to-open-new-firm.html http://www.hedgeco.net/news/03/2010/former-atticus-manager-to-open-new-firm.html#comments Mon, 15 Mar 2010 13:17:26 +0000 Editor http://www.hedgeco.net/news/?p=14550 Reuters – Dilan Siritunga, a longtime executive at the hedge fund firm Atticus Capital LP, is planning to open his own firm, according to a person familiar with his plans.

Siritunga will become the latest in a string of fund managers to leave Atticus, one of the hedge fund industry’s biggest and best-known activist investors until its founder liquidated two portfolios last year.

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]]> http://www.hedgeco.net/news/03/2010/former-atticus-manager-to-open-new-firm.html/feed 0 ADIA Says as Much as 45% of Assets Invested in Developed World http://www.hedgeco.net/news/03/2010/adia-says-as-much-as-45-of-assets-invested-in-developed-world.html http://www.hedgeco.net/news/03/2010/adia-says-as-much-as-45-of-assets-invested-in-developed-world.html#comments Mon, 15 Mar 2010 13:16:18 +0000 Editor http://www.hedgeco.net/news/?p=14548 BusinessWeek – The Abu Dhabi Investment Authority, one of the worlds’ largest sovereign wealth funds, has invested as much as 45 percent of its assets in developed markets, the fund said in its first annual review.

“We began in 2009 to cautiously lift our exposure to higher growth markets, which proved effective as the recovery began to take hold,” Sheikh Ahmed bin Zayed Al Nahyan, the fund’s managing director said in the 2009 report. “Considerable uncertainty remains” in 2010, he said.

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]]> http://www.hedgeco.net/news/03/2010/adia-says-as-much-as-45-of-assets-invested-in-developed-world.html/feed 0 The Hedge Fund Wars http://www.hedgeco.net/news/03/2010/the-hedge-fund-wars.html http://www.hedgeco.net/news/03/2010/the-hedge-fund-wars.html#comments Mon, 15 Mar 2010 13:13:43 +0000 Editor http://www.hedgeco.net/news/?p=14546 WSJ – In a letter dated March 1, Treasury Secretary Timothy Geithner called out the European Union’s proposed “alternative investment fund” regulations as protectionism in drag. He’s right to worry.

The proposal, which European finance ministers will discuss tomorrow in Brussels, would effectively bar hedge funds and private-equity funds from marketing themselves throughout the EU unless those funds are managed inside the bloc. The list of new requirements on location, leverage and disclosure for outside players is supposed to protect EU investors from shady offshore operators.

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]]> http://www.hedgeco.net/news/03/2010/the-hedge-fund-wars.html/feed 0 Cheyne Capital Fund Bets on Improvement in U.K. Property Market http://www.hedgeco.net/news/03/2010/cheyne-capital-fund-bets-on-improvement-in-u-k-property-market-2.html http://www.hedgeco.net/news/03/2010/cheyne-capital-fund-bets-on-improvement-in-u-k-property-market-2.html#comments Fri, 12 Mar 2010 13:54:24 +0000 Editor http://www.hedgeco.net/news/?p=14543 BusinessWeek – Cheyne Capital Management (U.K.) LLP, a hedge fund firm which oversees $5.5 billion, is betting on an improvement in Britain’s real estate market.

Cheyne is boosting the allocation of lower-rated mortgage debt in its Queen’s Walk Investment Ltd. fund in expectation home-loan defaults will continue to decline, partner Shamez Alibhai said in an interview. Queen’s Walk invests most of its 120 million euros in mortgage-backed securities.

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]]> http://www.hedgeco.net/news/03/2010/cheyne-capital-fund-bets-on-improvement-in-u-k-property-market-2.html/feed 0 Paulson, Soros hedge funds complete NovaGold investment http://www.hedgeco.net/news/03/2010/paulson-soros-hedge-funds-complete-novagold-investment.html http://www.hedgeco.net/news/03/2010/paulson-soros-hedge-funds-complete-novagold-investment.html#comments Fri, 12 Mar 2010 13:52:56 +0000 Editor http://www.hedgeco.net/news/?p=14541 MineWeb – Two major hedge funds belonging to uber investor George Soros and renowned fund manager John Paulson have placed their bets on troubled gold junior NovaGold Resources.

NovaGold has announced it closed its offering of 18,181,818 shares of the company at a pric

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]]> http://www.hedgeco.net/news/03/2010/paulson-soros-hedge-funds-complete-novagold-investment.html/feed 0 Ex-Boston Provident fund chief trader admits fraud http://www.hedgeco.net/news/03/2010/ex-boston-provident-fund-chief-trader-admits-fraud.html http://www.hedgeco.net/news/03/2010/ex-boston-provident-fund-chief-trader-admits-fraud.html#comments Fri, 12 Mar 2010 13:51:08 +0000 Editor http://www.hedgeco.net/news/?p=14539 Reuters – The former chief trader and chief investment manager of Boston Provident LP pleaded guilty on Thursday to charges of stealing $3 million from the Manhattan hedge fund firm.

The executive, Ezra Levy, 32, admitted in a plea proceeding before U.S. District Court Judge Kevin Castel that last year he conducted trades that were profitable for him, but a loss for the hedge fund.

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]]> http://www.hedgeco.net/news/03/2010/ex-boston-provident-fund-chief-trader-admits-fraud.html/feed 0 Cheyne Capital Fund Bets on Improvement in U.K. Property Market http://www.hedgeco.net/news/03/2010/cheyne-capital-fund-bets-on-improvement-in-u-k-property-market.html http://www.hedgeco.net/news/03/2010/cheyne-capital-fund-bets-on-improvement-in-u-k-property-market.html#comments Fri, 12 Mar 2010 13:49:05 +0000 Editor http://www.hedgeco.net/news/?p=14537 Bloomberg – Cheyne Capital Management (U.K.) LLP, a hedge fund firm which oversees $5.5 billion, is betting on an improvement in Britain’s real estate market.

Cheyne is boosting the allocation of lower-rated mortgage debt in its Queen’s Walk Investment Ltd. fund in expectation home-loan defaults will continue to decline, partner Shamez Alibhai said in an interview. Queen’s Walk invests most of its 120 million euros in mortgage-backed securities.

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]]> http://www.hedgeco.net/news/03/2010/cheyne-capital-fund-bets-on-improvement-in-u-k-property-market.html/feed 0 Clients Leave As Horseman Hedge Fund Manager Resigns http://www.hedgeco.net/news/03/2010/clients-leave-as-horseman-hedge-fund-manager-resigns.html http://www.hedgeco.net/news/03/2010/clients-leave-as-horseman-hedge-fund-manager-resigns.html#comments Thu, 11 Mar 2010 14:51:42 +0000 Editor http://www.hedgeco.net/news/?p=14535 New York (HedgeCo.net) – When hedge fund founder and manager John Horseman stepped down from his position as CEO of Horseman Capital, his clients pulled out with more than half of the hedge fund’s assets, Reuters reported.

Horseman’s flagship fund fell to just $535 million in size from $2.8 billion in November. The clients withdrew aproximately $2.5 billion at the first possible opportunity, after hearing of Horsman’s resignation, Reuters said.

“We had redemptions on the back of the announcement made last year,” a spokesman said in an interview with Reuters. “Investors were allowed to redeem on January 4, and that’s when the bulk of the redemptions took place.”

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

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]]> http://www.hedgeco.net/news/03/2010/clients-leave-as-horseman-hedge-fund-manager-resigns.html/feed 0 Hedge Funds & the Brokered CD Market http://www.hedgeco.net/news/03/2010/hedge-funds-the-brokered-cd-market.html http://www.hedgeco.net/news/03/2010/hedge-funds-the-brokered-cd-market.html#comments Thu, 11 Mar 2010 14:28:53 +0000 Editor http://www.hedgeco.net/news/?p=14530 New York (HedgeCo.net) – Hedge fund managers can use the brokered CD market for cash management according to attorney Stephen M. Goodman, a partner with New York law firm Pryor Cashman.

“Brokered CDs are used in cash management to provide returns which are slightly better than money market funds, but with the added benefit of FDIC insurance,” Goodman said. “As long as the individual’s total deposits with any institution are less than the mandated limit, the funds at that institution will be insured. The deposits can be spread among multiple institutions if there is more cash than can be kept at a single one.”

Interest payments and maturities can be structured according to a client’s needs, Goodman explained. “Longer maturities may be possible than the usual CD,” he said. “They can be ‘laddered’ to ensure specific cash flows, and yields can be increased by acquiring ‘callable’ or ’step-up’ CDs.

However, there are various risks, particularly if there is a need to liquidate a CD prior to maturity.

“On the date it is sold, intervening changes in interest rates may affect its value, as with any other debt security,” Goodman said. “Early redemption from the issuing institution can result in penalties. And of course there is generally a broker’s fee for acquiring the CD, which would in turn lower the overall return, depending on the number of CDs bought and sold and their size.”

Stephen M. Goodman acts as outside general counsel to a variety of public and private companies, particularly those involved in the development, exploitation, purchase and sale of intellectual property and technology assets, such as  publishing and media companies, computer software and Internet companies, and pharmaceutical and biotechnology companies.

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