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 Times – Russell Herman, the chief executive of the hedge fund firm Dawson-Herman Capital Management, is the latest manager to shutter his fund after heavy losses last year and differences with the firm’s founder, Jonathan Dawson.
Mr. Herman told clients in a letter last week that he was shutting the Southport Millennium Funds and returning capital to investors. The move was first reported by Dealbreaker.com on Friday. The firm currently has about $902 million of capital under management after reaching a height of $3.2 billion at the beginning of 2008.
Like many in the hedge fund industry, Dawson-Herman suffered big losses last year. The main Southport fund was down more than 35 percent and has failed to make up for the losses this year. “We have not been able to build the portfolios with high conviction ideas and themes to the degree that is satisfactory to me and in line with our historical standards,” Mr. Herman said in the letter.
Siliconindia.com – An Indian-American investment adviser has been sentenced to 10 years in prison following his conviction on 20 counts of fraud with a scheme that bilked 15 investors of $12.5 million.
Amit Mathur, 38, of Shrewsbury, Massachusetts, was also ordered to pay restitution to his victims by the federal District Court in Worcester, the Boston office of Federal Bureau of Investigation (FBI) said in a release.
Reuters – Vito Fossella, a former U.S. congressman representing sections of New York until a drunk driving conviction last year, has joined controversial hedge fund Superfund Investment Group, the Staten Island Advance reported this week. The community newspaper, citing unnamed sources, said Fossella’s role at the firm was not known. Superfund officials and Fossella were not available for comment.
Superfund is a managed futures investment firm that wants to make hedge funds available to the masses. Founder Christian Baha, a former Austrian police officer and college drop-out, stars in television commercials that poke fun at his inability to pronounce "investor."
Bloomberg – Hedge fund investors’ growing demands for separate accounts may be an overreaction to increasing redemptions and fraud, participants said at an industry conference in Hong Kong this week.
Investors are demanding accounts that allow them to tailor investments, see trades and get out when they want, instead of the traditional way of pooling their money in a fund, as managers try to curb redemptions and after U.S. financier Bernard Madoff’s conviction for running a Ponzi scheme.
A record $155 billion was pulled from hedge funds last year, according to Chicago-based Hedge Fund Research Inc., while capital outflow may accelerate to $168 billion this year, a Deutsche Bank AG survey in March showed.
West Palm Beach (HedgeCo.net)- AdultVest was nominated among others for the ‘Hedge Fund Launch of the Year’ Award, the alternative investment fund is the world’s first Investment Community designed specifically for the Adult Industry.
Other nominees include, Brevan Howard Asset Management, Citadel Investment Group, Odey Asset Management and Paulson & Co. for the ‘Hedge Fund Leader of the Year’ award.
Th winners will be celebrated ‘Oscar-style’ at a gala awards dinner and ceremony this evening, June 25th at Cipriani Wall Street, NYC. The award ceremony will be held in conjunction with Institutional Investor Conferences’ Hedge Fund Investor Symposium, and will host more than 400 leaders in the hedge fund industry.
The 6th Annual Hedge Fund Industry Awards recognizes the hedge funds, fund of funds, endowments, foundations, and corporate and public pension funds that have stood out for their notable accomplishments in alternative investments during the past year.
Winners will be selected by the staff of Alternative Investment News and Institutional Investor Magazine.
