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West Palm Beach (HedgeCo.net) - Hedge fund manager OakRun Capital announced the appointment of Rolando Hermoso as director of funds. Their newly launched Short Term High Yield Fund also delivered November annualized yield of 9.58%.
Hermoso has over 27 years in the investment banking industry at various senior executive levels specializes primarily in the structuring, marketing and the execution of structured finance products. With 10 years at the Bank of America he was also Head of the Investment Bank for Citicorp for Venezuela and the Antilles. He holds Masters degrees in Management and Operations Research from Stanford University and B.S. degrees in applied mathematics and physics.
The Cayman Islands exempted fund launched on October 1st and came in at 9.48% annualized in its first month. The fund’s objective is to generate above average current income with a lower overall credit risk profile and maintain a stable NAV.
"We do not believe that simply managing for relative performance is satisfactory to our clients or ourselves." says Scott Rhodenizer, Founder, CEO, and Chief Investment Officer, "While we work to outperform the markets, we strive to do so without excessive risk."
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MSN UK News – Business leaders around the world back greater regulation in response to the global financial crisis, a survey showed on Wednesday, with support strongest for curbs on credit rating firms, hedge funds and structured finance.
Responses from more than 700 chief executives, chairmen, partners and directors across Asia, Europe and the United States were received between November 4th and 6th.
The survey, conducted by international law firm Allen & Overy, was timed ahead of this weekend’s Washington DC summit on the deepening crisis between the leaders of the Group of 20 leading world economies.
More than three-quarters of those polled agreed that more regulation of credit rating agencies was necessary, while two thirds supported greater regulation of hedge funds.
Cay Compass – Turmoil caused by the US financial meltdown will likely effect Cayman’s hedge fund industry.
Leader of Government Business Kurt Tibbetts acknowledged at the Cabinet press briefing Friday that Cayman’s economy “does not operate in isolation and that we are not immune from the global volatility and uncertainty”.
Although Mr. Tibbetts said preliminary consultations with the financial industry indicated the retail banking sector was not experiencing any problems, the story was different for other key aspects of the sector.
“The areas that are expected to suffer most are those connected with hedge funds and structured finance,” he said. “Current global market conditions in the hedge fund arena are characterized by heavy redemptions, suspensions and re–structurings coupled with much–reduced… new fund formations.”
WA Today- Australia’s biggest life insurer and funds manager, AMP, was ducking for cover today. What are AMP’s holdings of CDOs, CLOs ABSs and CDSs?
Not much of an answer to that one. "We are holding a number of these instruments … but it is immaterial”.
Right, just like NAB’s holdings were immaterial until last Friday when it wrote down $830 million worth of CDOs (collateralised debt obligations).
The National Australia Bank is not alone when it comes to being played for a sucker by Wall Street hucksters flogging fancy derivative product.
We are talking fund managers, hedge funds, financial planners even a slather of local councils across the country. Many bought CDOs, CLOs (collateralised loan obligations), ABSs (asset backed securities) and other noxious structured finance products whose value is now in question.
Bloomberg – The annual shareholders meeting of UBS AG used to be a time for Chairman Marcel Ospel to gloat over his accomplishments. Shareholders would praise Ospel for turning a slow-growing, insular Swiss bank into a global financial powerhouse, with a stock price that rose 115 percent from January 1999 to January 2007. Just last year, Ospel bragged to shareholders about how the bank’s record profit was the result of its “smart expansion strategy.”
At UBS’s most recent annual meeting in April, shareholders cheered Ospel again. This time, though, it was when he announced his resignation. Ospel, 58, wearing a navy blue suit and bright yellow tie, didn’t flinch. Glasses resting on the end of his nose, he made a lengthy speech comparing himself to the captain of a ship emerging from a storm.
Shareholders responded that it was the chairman himself who had steered the bank into choppy waters. “Ospel is responsible for this malaise,” Gerhard Meier, a shareholder for 30 years, told investors at the meeting. In the nine months ended on March 31, UBS lost 25.4 billion Swiss francs ($24.3 billion), more than any other bank caught in the worldwide credit crunch.
Shareholders say Ospel and his fellow managers took a profitable Swiss bank and wrecked it on the shoals of structured finance and subprime mortgages.
“He built up enormous risks, which were damaging the whole organization,” says Herbert Braendli, president of Profond, a Swiss pension fund that has been selling down its holding of about 2.3 million UBS shares because it’s unhappy with the bank’s management. “He intentionally pushed it with his expansion goals.”
