Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
New York (HedgeCo.net) – A new whitepaper published by Pershing LLC, a BNY Mellon company, and Aite Group LLC examines critical hedge fund operations, entitled, Fueling Growth: Outsourcing Solutions for Hedge Funds, reports that an increase in client redemption requests is threatening the viability of even the most well-managed hedge funds.
Key findings from the whitepaper include:
* Choosing the Proper Outsourcing Model
* Smaller Hedge Funds Challenged by Resource Restrictions
* The Role of the Prime Broker
* Consider Disaster and Recovery Planning in Vendor Selection
“It is important for hedge funds to develop a thoughtful, long-term outsourcing strategy to ensure that its needs for support during various stages of the fund’s lifecycle are closely aligned with its goals and objectives to serve investors well.” Craig Messinger, managing director of Pershing Prime Services, said, “Employing this type of approach will enable hedge fund managers to focus on generating profitable returns for their clients and help them grow their businesses in a more productive manner.”
To help hedge fund managers better understand business continuity and disaster recovery planning processes and principles, Pershing Prime Services, in collaboration with Eze Castle Integration and its colleagues across BNY Mellon, has developed a guidebook entitled, Establishing Business Continuity and Disaster Recovery Plans: A Hedge Fund Manager’s Guide.
New York (HedgeCo.net) – A new hedge fund is being launched to bridge the distance barrier between New Zealand and the rest of the world. Milestone Capital has established the Rutherford Innovation Fund to raise capital and back innovative companies which need financial assistance and business skills to commercialise their ideas on the international stage.
“The Rutherford Innovation Fund provides offshore investors with an experienced local co-investment partner to bridge the geographic gap to New Zealand as these companies are not on the radar of international investors,” Milestone Capital principal Kenji Steven says.
The Rutherford Innovation Fund sees the best opportunities for investment as being those that benefit from the massive changes being driven by the growth of Clean Tech products, services and technologies that provide solutions to urgent global problems around energy, water, carbon and pollution.
The fund is named after Ernest Rutherford, the Kiwi who was the first person to split the atom and the father of modern nuclear physics. It’s a portfolio of private equity companies which include algae fuel manufacturer Aquaflow Bionomic Corporation, carbon sequestration firm Carbonscape and ‘top five’ international climate change website Celsias.
“The key limiting factor in New Zealand is capital. For private companies investment capital is scarce so there is attractive pricing and little competition for deals. The capital markets are also under-developed so approximately 80% of the top 200 New Zealand companies are private,” Steven says. The fund is targeting a capital raising of NZ$50 million over the next two years.
New York (HedgeCo.net) – In the Closing Plenary of the Clinton Global Initiative 2009, former President Bill Clinton featured LeapFrog Investments, which raised the world’s first microinsurance fund.
“LeapFrog’s team is widely recognized as having opened up a new frontier in microfinance and alternative investment.” The former President noted, “The fund has raised $44 million from both private and public investors, towards an ultimate target of $100 million.”
Before an audience of 1000 global leaders, President Clinton drew a direct link between the work of Nobel Laureate Muhammad Yunus to bring microcredit to millions of people, the ‘Banker to the Poor,’ and the work of LeapFrog as the global leader in microinsurance: “LeapFrog is quickly becoming the ‘Insurer to the Poor’. Just like Yunus, [LeapFrog] is the first out of the gate, the first microinsurance fund in the world.”
“For those 25 million clients, LeapFrog means the ability to leap out of poverty permanently.” Dr. Andrew Kuper, President and Founder of LeapFrog said. “For our portfolio companies, LeapFrog means leaping to the next stage of growth and impact. For our investors, LeapFrog does mean the next frontier of microfinance and alternative investment.”
Pierre Omidyar, Founder of EBay, immediately concurred with a post on Twitter, saying that it was “Great to see LeapFrog . . . recognized by President Clinton for work in microinsurance.” The Omidyar Network is a lead investor in the fund, together with the European Investment Bank, FMO, Triodos, and Accion International.
LeapFrog’s fund is now developing investment opportunities in key emerging markets such as India, Indonesia, the Philippines, South Africa, Ghana, and Kenya.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
New York (HedgeCo.net) – The Dreyfus Corporation, part of BNY Mellon Asset Management, announced the introduction of the Dreyfus Satellite Alpha Fund and the Dreyfus Diversified Global Fund.
“Many individual investors are seeking a professionally managed solution that enables them to invest in non-traditional asset classes that have low correlations to traditional asset classes, especially in the wake of the recent financial crisis,” said Phil Maisano, Vice Chairman and Chief Investment Officer for Dreyfus and Chief Investment Strategist for BNY Mellon Asset Management. “Dreyfus Satellite Alpha has been constructed within a 1940-Act platform to provide exposure to non-traditional asset classes such as commodities, currencies and real estate in addition to inflation-protected securities and global stocks and bonds.
“Dreyfus Diversified Global fund is distinctive among global funds; the underlying funds are managed by an array of BNY Mellon Asset Management affiliates with different points of view and investment philosophies which differentiate this fund from other global funds that only deliver a single viewpoint,” Maisano said.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one a leading asset management and distribution company, currently managing more than $400 billion in mutual funds and separately managed accounts.
BNY Mellon Asset Management is the umbrella organization for BNY Mellon’s affiliated investment management firms and global distribution companies.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
New York (HedgeCo.net) – Man Research Laboratory (MRL) and the Oxford-Man Institute of Quantitative Finance (OMI) opened new, larger premises in Jericho, Oxford, on 24 September, demonstrating that the two groups’ unique collaboration is flourishing as it moves into its third year.
“AHL is already trading billions of dollars using advanced trading concepts developed at AHL in Oxford,” said Dr Anthony Ledford, Chief Scientist of the MRL. “The collaboration benefits us enormously and allows us to hear about OMI’s academic theories first and share ideas with some of the world’s best quantitative finance academics; promote our name as an exciting and innovative employer within Oxford’s academic community and research our own ideas in a stimulating environment,” he added.
AHL is one of world’s largest managed futures managers and a wholly owned subsidiary of hedge fund Man Group. Its two decade track record of consistent double digit gains for investors is based on an unstinting dedication to research.
The University of Oxford and Man Group were brought together in 2007 when Man provided the cornerstone funding for the first academic institute dedicated to quantitative finance and co-located it with its own commercial researchers. AHL’s research in Oxford is a commercial undertaking while the OMI pursues academic excellence, independent of Man. This arrangement remains the first and only co-location of its kind between Oxford University and a commercial entity.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
New York (Hedgeco.net) – The second quarter of 2009 marked the 10th year of operation for Washington, DC-based hedge fund, Mooring Capital Fund, which delivered a quarterly compounded return of 12.40% per year.
“Our flagship Mooring Capital Fund has provided a consistent record of performance to investors since inception 10 years ago.” John Jacquemin, founder and President of Mooring Financial Corporation, commented,”We are very pleased with the fund’s sound long-term performance, demonstrated by a total return of 242.51 percent over the last decade.”
For the same period, the S&P 500 posted an annual compounded return of -1.70% and the Credit Suisse/Tremont Hedge Fund Index reported a quarterly compounded annual return of 6.89 %.
Mooring Capital Fund acquires and manages distressed, sub-performing and performing commercial loans. The portfolio is diversified by both asset type and geography. Mooring Capital Fund also takes long and short equity positions in the financial and real estate markets for up to 20% of its assets. As of June 30, 2009 Mooring Capital Fund had over $62 million in total gross assets.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
New York (HedgeCo.net) – 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.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
West Palm Beach (HedgeCo.net) – Deutsche Bank’s Alternative Fund Services, part of the bank’s Global Transaction Banking (GTB) division, has ranked second among top administrators in Global Custodian magazine’s 2009 Hedge Fund Administration Survey.
This is the first time Deutsche Bank has participated in the survey, which is published annually and includes responses from 1,370 clients of hedge fund administrators around the globe. It is intended to measure service quality and value in 12 categories including client service, fund accounting and middle office services, across a full range of fund characteristics such as size, strategy and location.
“In our first appearance in the Hedge Fund Administration Survey we are very pleased to have ranked second and scored highly in a range of categories,” said Christopher Nero, Managing Director and co-head of Alternative Fund Services within Global Transaction Banking.
In a write-up accompanying the results, Global Custodian commented, “(GTB) has a long pedigree in hedge fund administration too, with operations scattered across Cayman, Delaware, the Channel Islands, Dublin, Luxembourg, Mauritius and Singapore. But in January last year Deutsche transformed its presence in the industry by the acquisition of California based hedge fund administrator Hedgeworks. With staff in Boston and Cayman as well as the Golden State, Hedgeworks helped Deutsche double the size of its business. As it did for the prime brokerage business, the credit standing of the bank has attracted clients.”
Last month, Deutsche Bank announced that its Global Prime Finance business within its Global Markets division received 127 “Best in Class” and 16 “Top Rated and Commended” awards, the most among all global prime brokerage providers, in the Global Custodian 2009 Prime Brokerage Survey.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
West Palm Beach (HedgeCo.net) – The Organisation for Economic Cooperation and Development (OECD) added the Cayman Islands to its ‘white list’ of jurisdictions that implement international tax standards for investors such as hedge funds and other alternative investors.
Jeffrey Owens, Director of the OECD’s Centre for Tax Policy and Administration, welcomed the signing of the Cayman Islands’ twelfth Tax Information Exchange Agreement (TIEA) with New Zealand, on 13 August 2009 putting it “alongside other countries that have substantially implemented the internationally agreed tax standard.”
In response, the Cayman Islands Government summarized: “For over four decades the Cayman Islands has steadily earned its place as a world-class international financial services centre. The Cayman Islands Government sees the OECD’s recognition as a natural outcome of the country’s substantial commitment to uphold an equally worldclass international cooperation regime in the exchange of tax information.”
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
West Palm Beach (HedgeCo.net) – Hedge fund prime broker, Newedge, has started using a Dubai Point of Presence (POP) connection to facilitate their access to the Dubai Gold and Commodity Exchange (DGCX). The new connection has high bandwidth and is more secure than an internet-based connection, the company said.
Amaury de Villemandy, CEO of Newedge Europe and Middle East, commented on its fixed line capacity, saying, “Our investment in establishing direct connectivity to DGCX was based on the increased interest among our clients in capitalizing on the commodity and currency trading opportunities offered by the Exchange.”
Newedge is a 50/50 joint venture between Societe Generale and Calyon. With a presence in 25 locations in 17 countries, Newedge primarily serves institutional clients, providing access to more than 85 exchanges.
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 on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
West Palm Beach (HedgeCo.net) – International financial services provider TMF Group has expanded into boutiqe and hedge funds in Australia through the acquisition of Sydney administrator, Kingsway Taitz Fund Administration Pty Ltd,.
Recognised as a leading provider of boutique and hedge fund administration services in the Asia‐Pacific region, Kingsway Taitz has been top ranked in its peer group for the past two years by the annual Global Custodian Hedge Fund Administrator Survey.
"The increasing demand for our services made it apparent that the next phase of growth required the backing of a global fund administrator with strong financial resources." Brian Taitz, managing director of Kingsway Taitz said “This transaction provides the opportunity to align with a like‐minded global fund administration company that shares our values and culture."
“This transaction brings together two highly successful companies – one global and one local with complementary skills and values, and a shared focus on client service and staff development," managing directors of TMF Eric Koolen and Catherine Caradus, said. TMF has over 175 fund administration clients.
Eric Koolen, who has 20 years of fund administration experience, will lead the combined organisation in Australia. Brian Taitz will continue to be involved on a day to day basis for up to six months to ensure a seamless integration of the two organisations. The company says there will be no immediate changes.
Kingsway Taitz has retained Capital Advice as its financial adviser in relation to this transaction.
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West Palm Beach (HedgeCo.net) – The Securities and Exchange Commission yesterday recieved permission to freeze the assets of Mohit A. Khanna, who alledgedly raised as much as $70 million from 300 investors though his fund, MAK 1 Enterprises Group, LLC.
The SEC says he solicited investors in Southern California and several other states, as well as a charitable foundation, through word-of-mouth referrals and a website. The defendant claimed to pool investor funds to invest in commercial paper, foreign currency trading products, and other investments, which the SEC believes to be non-existent. Instead, Khanna misused investor funds to pay for several luxury cars and residential properties, including those now owned by his wife, Sharanjit Khanna of San Diego, Calif., who was also named as a relief defendant.
The complaint alleges Khanna fabricated and gave to an accountant a “screen shot” of MAK 1′s online banking activity purporting to show a balance of over $50 million in its bank account, in reality, the average daily balance in that account never exceeded $197,000.
The SEC seeks preliminary and permanent injunctions, disgorgement, prejudgment interest, and financial penalties against Khanna and MAK 1. Court will hold a hearing on August 31, 2009.
The SEC had help from the FBI, the U.S. Attorney’s Office for the Southern District of California, U.S. Postal Inspection Service, National Futures Association, and the Better Business Bureau – San Diego.
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