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.
Investment Week- Collins Stewart Fund Management has appointed Mike Brown as head of fund sales.
He will lead sales of the multi-asset, multi-manager funds and specialist equity, fixed interest and hedge funds from the offshore group.
Products under his remit will include Collins Stewart’s European, UK value, Absolute return bond and UK small cap funds.
He brings over 22 years’ experience, joining from Investec, where for the last eight years his responsibilities have included distribution into the UK, Middle East, the Channel Islands, other offshore centres, Scandinavia and the Americas.
West Palm Beach (HedgeCo.Net)- The Managed Funds Association (MFA) and the Coalition of Private Investment Companies (CPIC) called on SEC Chairman Christopher Cox in a letter to not extend the emergency order on short selling beyond the announced expiration date.
"While we recognize that the financial sector is undergoing an extraordinarily difficult period," Richard H. Baker, MFA President and CEO, said, "we believe that these difficulties are the result of poor fundamental conditions and not a mysterious conspiracy or, more to the point, the inadequacy of current rules related to short selling."
"Such action would severely burden short selling activity, which the SEC itself repeatedly has acknowledged plays a vital role in the stability of securities markets." James S. Chanos, CPIC Chairman said, "Restrictions on short sales distort the fundamentals that drive market prices and are, in the long run, counter-productive because they remove liquidity and healthy skepticism from the marketplace."
The current expiration date is 11:59 pm on July 29, 2008.
CPIC is a coalition of private investment companies whose members and associates are diverse in both size and investment strategies managing or advising an aggregate of over $100 billion in assets.
MFA members represent the majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $2 trillion invested in absolute return strategies. MFA is headquartered in Washington, DC, with an office in New York.
Reuters UK- Roughly three dozen U.S. hedge funds have opened for business so far this year, 50 percent less than the same period last year, according to data released on Tuesday that underscored how tough it is to launch one of these portfolios now.
But the data also shows investors, like pension funds, endowments and wealthy individuals, are still flocking to these loosely regulated funds in search of better returns as the credit crisis and slower economic growth dents performance.
According to numbers compiled by trade magazine Absolute Return, the 35 new funds began trading with a total of $19.5 billion (9.9 billion pounds) in the first six months of 2008. That compares with 72 funds launched with $14 billion in the first half of 2007.
New York, July 8, 2008 — The Absolute Return New Funds Survey, published in the July/August issue of Absolute Return magazine, shows that new hedge fund launches this year in the Americas totaled $19.5 billion, with the top five funds amassing $13.7 billion, for more than 70% of the total. The number of fund launches is down 50% from last year, highlighting the growing barriers to entry for start-up managers and indicating that large capital flows are continuing to go to established, brand-name firms.
According to Absolute Return, 35 new funds began trading with a total of $19.5 billion between January 1 and June 30, 2008. That’s significantly more capital than in the same period in 2007, when 72 new funds launched with $14 billion. This year, five funds were formed with more than $1 billion each, in contrast to three funds that managed to surpass the billion-dollar mark in last year’s first half. Long/short equity funds dominated, followed by funds that invest in mortgaged-backed securities and those pursuing distressed strategies.
The survey also reported that Goldman Sachs Asset Management amassed $8.1 billion of the $19.5 billion total with $7 billion in its Goldman Sachs Investment Partners, an equity long/short fund, and $1.1 billion in Goldman Mortgage Credit Opportunities. The second-largest launch was Conatus Capital Management’s Conatus Capital Partners fund, which had $2.3 billion. Other sizeable launches included Lone Pine Capital’s $1.8 billion emerging markets fund, Lone Dragon Pine Fund, and Highliner Investment Group’s Alyeska Fund, a market-neutral fund that ended the first half with $1.5 billion.
Total assets under management in the hedge fund industry are $2.65 trillion, according to HedgeFund Intelligence.
About Absolute Return
Absolute Return is the leading source of U.S. hedge fund news and information featuring proprietary data and analysis on more than 3,000 single-manager hedge funds in the Americas. Absolute Return, a monthly magazine, and the Absolute Return Directory and Database, are divisions of HedgeFund Intelligence, a global provider of hedge fund news and data. For more information, please visit www.hedgefundintelligence.com/ar/
West Palm Beach (HedgeCo.Net)- Athamas Capital, a Luxembourg domiciled alternative investment fund, has announced the launch of the Athamas Capital SICAV SIF Hedge Fund. (Specialised Investment Fund)
Launched on June 1st, the hedge fund´s strategy is to achieve an absolute return by investing in listed companies addressing the energy and environmental challenges, including; energy, alternative energy, agriculture, energy efficiency and environmental services.
With Goldman Sachas as prime broker, the Athamas Capital SICAV SIF Hedge Fund has EUR16.5 million ($25.5 million) in seed capital and is open to professional investors, high net worth individuals and institutional investors for a minimum investment of EUR250,000 (approximately $390,000). The target fund size for 2010 through 2012 is EUR50-100 million (approximately $77-154 million).
The hedge fund’s strategy stems from the conviction that the energy and environmental sectors will be key in the 21st century due to the depletion of the global energy supply, rising demand, global warming issues raising awareness, as well as regulations and business initiatives to adapt and mitigate it.
Structured as an umbrella fund with four sub-funds, (some of which are yet to be launched) Athamas Capital is an alternative investment fund in the energy and environmental sector, trading mainly along the lines of; long/short equities, long/short listed or OTC derivatives, and futures on indices or commodities.
Athamas means; ("rich harvest"), the king of Orchomenos in Greek mythology, was the son of Eole. He was married first to the goddess Nephele (goddess of Clouds) with whom he had the twins Phrixus (driving rain) and Helle (bright light).
West Palm Beach (HedgeCo.net)- Hedge Fund representative, the Managed Funds Association (MFA), has submitted comments on the Best Practices Reports released by the two Committees appointed by the U.S. President’s Working Group on Financial Markets (PWG).
The Asset Managers’ Committee Report and the Investors’ Committee Report provide guidance for establishing best practices standards for the hedge fund industry and its investors.
"MFA has reviewed thoroughly the Asset Managers’ Committee Report and the Investors’ Committee Report, and we are broadly supportive of both sets of recommendations, which are comprehensive and substantive." Richard H. Baker, MFA President and CEO, said.
Andrew Baker, Deputy CEO of the Alternative Investment Management Association (AIMA) said, "We fully endorse the responses submitted by MFA to both committees… We are committed to the international harmonisation of sound practices for the alternative investment industry and look forward to leading this global approach with MFA as well as with all other industry stakeholders."
MFA represents members of the the global alternative investment industry. Including professionals in hedge funds, funds of funds and managed futures funds. MFA Members represent the vast majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $2 trillion invested in absolute return strategies.
HedgeWeek – TriAlpha, the asset management arm of the Stonehage Group, an international wealth management group, has launched the TriAlpha Global Property Strategy Fund, a fund of property hedge funds.
The fund seeks absolute returns by focusing on hedge fund managers that specialise in the global property sector. The portfolio will include property hedge funds from prominent management firms such as Credit Suisse, Thames River Capital and New Star Asset Management.
‘With increasing uncertainty and volatility in the property sector, a fund of hedge funds approach to this asset class looks extremely favourable,’ says TriAlpha director Cobus Kruger. ‘The easy money has been made – given this volatility it’s now time for the skills of hedge fund managers to be employed.’
TriAlpha has a 10-year track record in managing funds of hedge funds, and through Stonehage Property Partners the group has extensive experience in property investment.
‘Using a fund of funds approach allows us to exploit opportunities across global property markets with an absolute return focus through the full property cycle,’ says Sean Curry, head of TriAlpha’s fund of hedge funds team.
Times Online- This week, some of the City’s wealthiest people will descend on a lavish party in London intent on giving away a large chunk of their personal fortunes.
More than 1,100 will pile into the Absolute Return for Kids (Ark) annual dinner at the Royal Naval College in Greenwich, including many leading members of the new City establishment from the hedge fund world.
Some will be flush with cash, despite the downturn and the credit crunch. Others will be feeling the pinch. At last year’s event, this group of modern-day philanthropists — with its smattering of Hollywood superstars and A-list celebrities — gave away an average of £26,000 each and raised a combined £26.6 million.
