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.
EatrhTimes – In response to investor demand for greater transparency as well as pending new legislation, Grant Thornton LLP’s Financial Services practice is launching Hedge Fund Internal Control, Governance and Regulatory Compliance Services. These services will help funds attract new investors who might be wary of alternative investments in light of recent news. It will also assist funds in attracting and retaining investors and assets and help them prepare for pending legislation.
By the fourth quarter, Congress is expected to pass The Hedge Fund Transparency Bill of 2009, which would require investment companies or advisers that are exempt from normal registration, but have at least $50 million in assets under management (AUM), to register with the SEC. “Those funds that have already registered must be prepared for additional oversight and a more aggressive examination and enforcement agenda; those funds that have not yet registered may be required to create a complete internal control and compliance infrastructure in order to be prepared for the regulatory examination process,” said Jack Katz, national managing partner of Grant Thornton’s Financial Services practice. In addition to developing the internal control, compliance and governance facilities to comply with the new rules, firms may also be required to establish an anti-money laundering program and report suspicious activities.
Hedge Funds Review – A majority of all assets under management (AUM) by hedge funds and funds of hedge funds globally are from institutional investors, according to the Alternative Investment Management Association (AIMA).
One third of the AUM comes from institutional investors now come from pension funds.
The AIMA research defines institutional investors as pension funds, university endowments, foundations and governmental authorities. The figures were produced by AIMA’s research department and are based on extensive consultation with the association’s members.
West Palm Beach (HedgeCo.net) – Global alternative asset manager, GLG Partners LP, is teaming up with two of the founding partners of London hedge fund Pendragon Capital, Kaveh Sheibani and Julian Harvey Wood, to focus on event driven strategies.
In addition, GLG Partners LP will become the investment manager of the funds and accounts managed by Pendragon Capital. Before founding and managing Pendragon Capital with Gordon Lawson, Kaveh and Julian had worked together managing European proprietary trading in equities at Salomon Brothers (subsequently Citigroup).
"Kaveh and Julian are both highly experienced, event driven professionals and we expect that this team will greatly enhance and expand GLG’s own event driven franchise," Emmanuel Roman, Co-CEO of GLG commented.
As of September 30, 2008, GLG managed net AUM of over $17 billion.
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!
The Independent – Stanley Fink, the so-called godfather of UK hedge funds, has made a dramatic return to the industry after retiring from Man Group, the largest alternatives manager in the world, only two months ago.
Mr Fink confirmed yesterday that he had been appointed chief executive of International Standard Asset Management, an alternative asset manager with about £200m under management. The fund also announced the appointment of the former Labour Party fundraiser Lord Levy as chairman.
The London-based trading group said Mr Fink will assume responsibility for the operational management of the business to build a significant hedge fund presence, while both will use their extensive network of wealthy contacts to boost the fund’s assets under management.
International Standard Fund was set up by the former Merrill Lynch gold trader Roy Sher, a friend of Mr Fink, in 2003, and is mainly backed by private investors. Mr Sher said the big-name appointments should help the firm to win market mandates ahead of its hedge fund rivals.
Carbon prices are rebounding and diverging from an overall decline in commodities and oil on Tuesday as London-based Camco International [London: CAO] recorded a $2.6 million (US Dollar) profit on the sale of 151,288 tons of carbon credits on the spot market. The CERs were sold to an undisclosed buyer outside of the European Union for an average price of just over 19 euros per ton versus an average acquisition price of just 7.5 euros per ton. With Certified Emissions Reductions (CERs) currently trading around 19.75 euros per ton on Tuesday, Camco’s portfolio of carbon credits is worth over $1.2 billion [USD] at current market prices — including over 150 projects which are expected to generate 151 million CERs by 2012 (of which 41.8 million will go directly to Camco).
EcoloCap Solutions [pdf file] [OTCBB: ECOS] is a US-traded stock that I own based on its carbon credit hedge fund business model; whereby the Company generates CERs in emerging and frontier markets such as Vietnam at a below-market cost and then sells them at higher spot market prices in developed countries such as the US. EcoloCap is focusing its initial efforts in Vietnam and China (which account for over half of all earned carbon credits followed by India at around 10%) through an extensive network of contacts in Eastern Asia — leveraging upon its technical expertise in the implementation of clean energy projects and experience in obtaining United Nations certification for these projects. EcoloCap currently has a total of seven signed renewable energy projects which will generate an estimated $39 million in revenues (versus a market cap of just $21.5 million) and $15 million in cumulative cash flow through 2012, in addition to tradable carbon credits.
