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.
Norwalk Advocate – Crisis can create opportunity, and for the smart hedge fund operator, the downturn gripping the global investment community is a chance to build a respected reputation in the industry.
While the financial crisis has been unprecedented, so will be the opportunities for firms that have superior compliance and risk management capabilities, said Walter Zebrowski, chairman of the Regulatory Compliance Association, which co-hosted the Hedge Fund Leadership Thought Summit this week at the Stamford Marriott.
"What it’s going to take is your leadership to act as the brake pedal when people want to take risks," he said, adding that the government plans on putting regulations on the hedge fund industry. "What does this mean for us? Everyone’s going to have to step up their game in terms of risk management."
Zebrowski is also chief investment officer for Hedgemony Partners, a Manhattan-based global private equity firm.
Norwalk Advocate – Hedge fund manager Steven Cohen is no stranger to the Planning and Zoning Commission.
The panel has approved many additions to his Crown Lane estate since he bought it in 1998 for $14 million. The founder of SAC Capital in Stamford is back before the commission.
At its Dec. 16 meeting, the panel will likely review a preliminary site plan for two additions, totaling 1,145 square feet, to the 35,085-square-foot mansion on 14 acres Cohen and his wife Alexandra.
Already larger than the town’s recommended maximum volume of 150,000 cubic feet and boasting an ice rink and indoor pool, 30 Crown Lane would gain a breakfast room, a garden room and a "His" dressing room, as well as more storage, from the proposed construction.
Both additions would be built over existing impervious surfaces, avoiding increased runoff, and Cohen has received a green light from the town’s Engineering Division.
Norwalk Advocate – Some hedge funds are reducing their management and incentive fees to keep investors for longer periods during turbulent times on Wall Street.
Typically, hedge fund managers require investors to lock their money into a hedge fund for a year while charging a 2 percent management fee and keeping 20 percent of hedge-fund profits as an incentive fee – if it reaches a pre-determined point.
Camels Capital LLC, a Greenwich-based hedge fund, and Ore Hill, a New York-based fund, among others, have restructured these terms to keep investors.
"Ourselves, Ore Hill and a few other funds have taken a step to do that in this period of liquidity to lock in investors," said Richard Brendan, chief executive officer for Camels Capital. "We’ve been able to lock in our investors for a period of time to participate in opportunities with them."
Brennan would not comment on the specifics of the agreement between the hedge fund and his investors.
Scott Baker, a principal with Greenwich-based hedge fund investment firm Cookpine Capital, said many hedge funds are coming up with innovative ways to secure investor capital for longer periods.
