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.
Stuff – Hedge fund firm Pure Capital plans to launch a range of funds, including products playing food and carbon markets.
Anthony Limbrick, chief investment officer of the New Zealand-based firm, told Reuters the Pure Carbon fund, which will be seeded with the firm’s money, will trade in the European carbon market and have an initial capacity of $US20 ($NZ32) million.
He said the fund will aim to grow as the carbon market evolves, but is also ready to exploit the possibility of a slump in the segment.
"We think there’s a 30 percent chance the market collapses … That could create a `fat tail’ (a very rare event with major consequences) for us to make money," he said in an interview at the GAIM 2009 hedge fund conference.
Detroit News – President Barack Obama is ready to roll out an overhaul of the intricate rules and systems that govern America’s troubled financial institutions, proposing the most ambitious revision since the Great Depression.
The goal is to prevent a recurrence of the economic crisis that erupted in the United States and exploded last fall with devastating consequences still reverberating around the world.
Unlike the government’s temporary ownership stake in automakers and major financial companies, the regulatory changes set to be announced Wednesday are designed to be permanent. They could result in a major realignment of power and authority among government agencies that set the rules for banking, lending and investing and touch American lives through daily transactions, from credit cards to mortgages and mutual funds.
Dow Jones Deutschland – Leaders from the Group of 20 largest economies have yet to agree on how to deal with tax havens, including whether to spell out sanctions on financial centers that don’t share information.
An official at a G20 delegation said there will be "strong language" on tax havens, making it clear to them they must share information or face the consequences.
However, it’s not yet clear if they will threaten specific sanctions. Read Complete Article
HedgeCo.Net – The "post-Madoff era" and the litigious society in which firms operate today have presented many operational risks that are beyond control. Managers are not getting paid to take those risks and the consequences can be devastating.
Regulatory investigations and private litigations are on the rise and may result in expensive legal defense and the allocation of resources away from your business.
The new administration supports increased transparency and the regulation of hedge funds. In addition, there is an immense amount of international pressure in favor of regulation. This has made it very politically attractive to support the legislation of industry regulation, which may potentially threaten your business.
But there are options.
At CBS Coverage, the Financial Institutions Risk Group is focused solely on protecting your fund, its investors, and yourself.
CBS provides an excellent added value to your hedge fund and can help increase your investor confidence and trust.
Forbes – Swedish investor Cevian Capital is acquiring shares in Daimler AG in an apparent effort to become a significant shareholder in the German carmaker, Sueddeutsche Zeitung said, citing an unnamed hedge funds manager source.
It said financial sources consider it plausible that Cevian Capital could become a Daimler shareholder, adding the former already has a stake in Swedish truck maker Volvo.
It said Cevian acquired in Dec. 2007 a stake of nearly 3 percent in German insurer Muenchener Rueckversicherungs AG, one of the 30 blue chips on Frankfurt’s DAX30 index.
FRANKFURT (Reuters)- UBS has wrapped up a 16 billion franc rights issue, the Swiss bank’s second effort to resuscitate finances that have been ravaged by the global markets crisis.
It is the latest in a line of major banks including Britain’s Royal Bank of Scotland and HBOS and France’s Credit Agricole to go cap in hand to shareholders. In total, European banks are raising more than $40 billion from shell-shocked investors.
UBS said on Friday 99.4 percent of the issue was taken up but one analyst pointed to what he said was UBS’s weak stock performance during the rights trading. "It has been weak ever since they announced the rights issue," said Peter Thorne, an analyst with Helvea.
