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.
Forbes – Polygon’s Reade Griffith is a poster child for what’s wrong with the hedge fund industry these days.
A year ago, Griffith, heading into a disastrous year where he wound up losing 48%, gated investors, barring them from yanking out their money. Now he is getting the word out that he is trying to raise money for two new hedge funds, a Convertible Opportunity Fund and the European Equity Opportunity Fund. The funds, Griffith said in a recent letter to investors, have been launched with partner and employee capital.
Forbes – Barneys New York Inc is eyeing a debt restructuring or bankruptcy filing under which its owner, Dubai’s Istithmar World Capital, may lose control of the high-end retailer, Bloomberg reported, citing people familiar with the matter.
Hedge fund Perry Capital LLC has been approached by Holt Renfrew, the Toronto-based department-store chain, about a joint offer for control of Barneys, according to the report.
Forbes – Three hedge-fund heads discuss funds’ performance over the last year and debate potential tax code changes.
Funds Lost Their Hedge? David Serchuk: OK, everybody, thank you for meeting with us today on the Forbes.com Intelligent Investing Team. It’s a panel of hedge fund managers, so we are going to get rolling. Question one, something that should be very near and dear to your hearts: Have hedge funds lost their hedge? Why not just go for a cheaper, traditional money manager instead of your lot?
Forbes – Hedge fund managers Lloyd Khaner, Stephen Roseman and Ken Shubin Stein discuss changes in the industry post-Bernie Madoff.
The next video will include a discussion between three hedge fund managers and Intelligent Investing assistant editor David Serchuk. In the wake of the Bernie Madoff scandal, hedge funds remain a charged topic among investors. Often considered secretive investments for the super wealthy, there is no doubt hedge funds wield enormous influence on our financial markets. Currently there are some $1.8 trillion in assets under management at hedge funds, as more and more investors scramble back in. But why should anyone invest in them? What value do they offer?
Forbes – British hedge fund manager Man Group on Friday said it had agreed to sell its remaining stake in futures and options broker MF Global to Japanese bank Nomura.
Man, the world’s biggest listed hedge fund manager, said it will get initial proceeds of $112 million from the sale, while its regulatory capital will rise by $90 million.
Forbes – Britain’s financial regulator on Wednesday banned guaranteed banker bonuses of more than one year, as it leads a global crackdown on a culture of excessive risk-taking that has destabilised economies.
The Financial Services Athourity (FSA), which has been slammed for failing to address problems that led to the near collapse of the financial system last October, also said two thirds of bankers’ bonuses should be spread over three years to discourage short-term decision-making.
Forbes – Long-only hedge fund strategies posted the best returns of the asset class in July as global stock markets continued their upward trend, according to data in a report published by Lipper Global on Tuesday.
As the industry looks to repair itself following last year’s heavy losses and record redemptions, these new figures will give more ammunition to market watchers who claim that the industry is on the road to recovery.
Forbes – Global fund of hedge funds firm FRM Capital Advisors (FCA) said on Tuesday it will invest up to $60 million in New York-based asset manager WestSpring’s first fund.
Specialist hedge fund seeder FCA said the investment is part of a strategic tie up with WestSpring, which is scheduled to launch the fund in September. The firm will try to combine fundamental and quantitative approaches to credit analysis.
‘We are confident in WestSpring’s ability to build a high quality alternative investment business and we believe this strategic relationship is a great opportunity for our investors,’ said Clive Peggram, chief executive of FCA.
Forbes – PetroAlgae, a Melbourne, Fla., company, is a renewable energy miracle–at least in the stock market. The company, which aims to harvest oil from algae, started trading on the OTC Bulletin Board in December 2008 at under $1 through a reverse merger with a public shell.
In July, PetroAlgae’s stock was trading hands for $40, valuing the company at $4 billion. Pretty strange for a company with no revenue, $27 million in losses and an unproven technology.
Forbes – Hedge fund firm RAB Capital said on Wednesday that assets under management fell 32 percent in the six months to June but said clients had started putting money into its single strategy funds since April.
The firm said assets fell to $1.3 billion at end-June from $1.9 billion at end-December, in part due to the sale of its Northwest business. A year ago it ran $5.9 billion.
Forbes – Markets around the world have been rallying all year. So how did Polygon’s flagship hedge fund manage to lose money?
Polygon Global Opportunities Master Fund delivered a negative 2.92% net return as of June 30, lagging far behind other so-called multi-strategy funds which invest across a broad spectrum of asset types. Relative value and multi-strategy funds have returned 13.08% in the first half of this year, according to Hedge Fund Research, a Chicago-based firm that tracks the performance of these lightly-regulated investment pools.
New York Times Blogs – Actor Javier Bardem has turned down a role in the sequel to Oliver Stone’s seminal 1980s treatise on greed, “Wall Street.” The Oscar winner was to have played the world’s villain du jour: a hedge fund manager. Forbes reported that the actor’s publicist said he turned down the role due to scheduling conflicts.
It was reported in June that Mr. Bardem was circling the project although he was not yet officially cast. Starring in the film are Michael Douglas, who will reprise his role as Gordon Gekko, and Shia LaBeouf. Shooting is expected to start next month.
