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.
Bloomberg – Moore Capital Management LLC is seeking to raise as much as $500 million for two new hedge funds run by Greg Coffey, the top-ranked money manager who joined the company last year after quitting GLG Partners Inc., according to an investor.
The funds, both focused on emerging markets, started trading April 1, said the investor, who asked not to be identified because the information is private. Fees are 2 percent of assets, standard for the industry, and 25 percent of investment gains, more than the typical 20 percent.
Forbes – Hedge fund firm Moore Capital Management is looking to raise up to $500 million for two new hedge funds it has launched for star fund manager Greg Coffey, a source familiar with the matter told Reuters on Friday.
The firm, run by Louis Bacon, is seeking to raise $250 million each for two emerging markets-focused funds that were launched at the start of April, the source said.
West Palm Beach (HedgeCo.net) – Hedge funds took modest advantage of March’s upswings in the global equity and credit markets, according to Morningstar’s hedge fund performance summary for the first quarter of 2009.
Equity markets around the world significantly rebounded in March as appetite for risk returned, especially in emerging markets, according to the report. Positive lending and manufacturing news in China coupled with higher commodity prices, which helped stocks in other emerging economies such as Russia, drove the Morningstar MSCI Emerging Markets and Morningstar Emerging Markets Hedge Fund Indexes to increase 4.2% and 6.2%, respectively.
"In March we saw a recovery in equity and some credit markets, which helped hedge funds post small gains. But many hedge fund managers, believing that the economy is not yet out of hot water, continued to remain cautious, and were not strongly positioned to participate in the market rally," said Nadia Papagiannis, Morningstar hedge fund analyst. The Morningstar MSCI Developed Markets Hedge Fund Index rose only 1.1% in March compared to the MSCI World Index, which climbed 7.2%.
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Reuters – The golden age for super-sized hedge funds may be coming to an end as investors think about putting more money with smaller players, said an industry veteran who is setting up his own fund.
"I think the established hedge funds will get smaller over time because of redemptions, losses, and loss of talent," Thomas Grossman, principal at Union Avenue Advisors told the Reuters Private Equity and Hedge Funds Summit in New York.
Armed with $100 million (68.6 million pounds) in assets, Grossman plans to make bets in emerging markets and raise as much as $300 million for his new fund. Previously he ran Aeneas Capital Management.
Business24-7 – Middle East hedge fund investors expect emerging markets, the US and Asia (excluding Japan) will outperform in 2009 despite economic downturn, according to a survey conducted across the Mena region.
The survey, conducted by an investment placement specialist Capintro Partners, said the family offices are allocating a larger percentage of their portfolio to hedge funds than to other institutions. It said investors in the region prefer funds with larger asset sizes, longer track records and higher levels of liquidity.
Reuters- Investors betting on Latin America should be overweight Brazil, the region’s top economy, at the expense of exposure to Argentina, Mexico and Chile, a Credit Agricole Asset Management (CAAM) executive said on Monday.
They should also be overweight the region’s energy and telecom firms, while limiting exposure to consumer discretionary and IT plays, added Stephane Mauppin-Higashino, a product specialist with the 481.7 billion euro fund house. Brazil’s Bovespa index .BVSP hit a record high last month after rating agency Standard & Poor’s lifted Brazil’s credit rating in April to much-coveted investment-grade status.
