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 – Hedge funds in Singapore will “almost certainly” need to be licensed as the central bank seeks to tighten regulation of the industry, according to the local chapter of the Alternative Investment Management Association, the largest trade group for hedge funds.
Hedge-fund managers are currently exempt from holding a capital-markets services license, provided they manage funds on behalf of 30 or less of what the Monetary Authority of Singapore describes as “qualified” investors.
Forbes – The government cited what it claims are smoking-gun e-mails between the two fund managers. In at least one case, the government says Tannin wrote from his private Gmail account to Cioffi’s wife’s Hotmail account, declared the subprime mortgage market was going to “toast” and that its managers should “close the fund.” Prosecutors alleged these e-mails show that the defendants’ views internally were very negative at the same time they presented an optimistic front to investors.
As opening statements go, the prosecution’s was short at 45 minutes. By contrast, Cioffi’s lawyer, Dane Butswinkas, talked for two hours and used multiple charts and exhibits that sought to explain the complexities of Bear Stearns’ management structure, hedge funds and how the collateralized debt obligation market operated.
New York (HedgeCo.net) – At a seminar held yesterday, Starting A Hedge Fund In The Post-Madoff Era, organized by Andrew Schneider and Hedgeco Networks, 220 managers, investors and service providers came together at the U.S. Trust Building to hear Joe Goldstein, Ron Geffner, Ron Suber, Merlin Securities and others discuss the future of startups in the hedge fund industry.
“As a presenter I was very happy to see many start up funds in the audience as well as investors and service providers.” Joe Goldstein from G&S Fund Services said, “I think it was a good environment for someone looking for the right information to plan and succeed in establishing a a start up hedge fund. It is typical that in post-Madoff period fund managers embrace the importance of a good infrastructure in gaining investor confidence and building a good fund.”
After the speeches were drinks and networking, where the guest speakers mingled with investors. The general feeling among attendees was the the importance of knowing top of the line service providers, ones that stand out and have a prominent reputation.
“After the collapse of Bernie Madoff’s ponzi scheme, hedge fund infrastructure has come to the forefront in the industry.” Andrew Schneider, founder and co-principal of HedgeCo Networks said, “Investors are performing in-depth due diligence and looking for robust infrastructure before committing their capital. This is especially true for new hedge funds. Potential investors are relying heavily on the reputations of a hedge fund service providers including third-party administrators, auditing firms, prime brokerage houses, and legal counsel to prevent fraud and massive failures like never before.”
Reuters – It appears nothing — not losses, redemption gates or lofty fees — can deter the rich from stashing their cash in hedge funds.
A year after crumbling markets triggered losses and fund managers drew fire for blocking redemptions, wealthy investors have not abandoned hedge funds, according to private bankers and wealth managers attending the Reuters Global Wealth Management Summit this week.
“We see continued dedication to hedge funds,” said Catherine Keating, chief executive of JP Morgan Chase & Co’s U.S. private bank, which advises families whose combined assets total $350 billion.
Reuters – A hedge fund exodus from London to Switzerland in the face of higher taxes and tougher EU rules is unlikely to occur this side of a British general election, although the industry pretender remains ready to pounce.
Eyeing a new lakeside life of lower taxes and softer rules, many fund managers have said they would leave London’s glitzy lights for good if the Labour Party’s plan for a new 50 percent top tax rate becomes reality.
BusinessWeek – As legislators and officials in the Obama Administration debate and potentially draw closer to passing new rules regarding health care, carbon emissions, and financial services, hedge fund managers are awakening to the need to reexamine the assumptions they have long held about government’s role in the private sector.
This renewed focus on all things macro—from economic policy to regulatory regimes—is spurring hedge fund managers to seek the counsel of policy experts who can help them better grasp the broader context required to make investment decisions in the years ahead.
Reuters – Institutional investors said on Thursday that draft European Union rules that could bar non-EU fund managers from marketing their products in the region could limit their investment choices and upset their portfolio balance.
U.S. managers “would effectively be excluded from the EU market,” a senior fellow at the U.S. Securities and Exchange Commission asserted at a conference hosted by the Financial Services Authority.
“Choice is the biggest single area of concern for us,” said Jeremy Hill, general counsel for the Universities Superannuation Scheme (USS), which runs 24 billion pounds in assets.
Hedge fund managers and other large speculators increased their net long position in New York crude oil futures in the week to Sept. 8, according to U.S. Commodity Futures Trading Commission data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 33,112 contracts on the New York Mercantile Exchange, the Washington-based commission said Sept. 11 in its Commitments of Traders report. Net-long positions rose by 4,518 contracts, or 16 percent, from a week earlier.
“There definitely seems to be a bit of significant resistance being encountered once we get into the $70s,” said Toby Hassall, a research analyst at CWA Global Markets in Sydney.
New York (HedgeCo.net) – Scandinavian fund of hedge fund manager, Swedbank Robur announced that it is lowering fees by .2% to .4% on its 5 funds, effective October 1st.
“These reductions are in line with our ambition to offer an attractive product range with competitive prices.” Mats Lagerqvist, President of Swedbank Robur, said, “We are always looking for improvements and when it comes to these funds we have identified an opportunity to adjust the fees. It is our strong belief that this new fee structure will be more distinct for our customers since it is easier to understand the relationship between the fund fee and the risk level of the fund”.
Swedbank Robur offers fund of funds under the product name Access. This product category is specifically developed for customers who do not have the time to change their fund portfolio from one day to the other.
“These products are highly appreciated by customers who want a well diversified portfolio. The customers also get access to markets which are otherwise rather inaccessible. The funds deliver not only diversification but also an active reallocation of the underlying funds. Altogether Swedbank Roburs Access funds are an attractive investment alternative for many of our customers and through the reduction of fees we will be even more competitive in terms of pricing”, Lagerqvist said.
Swedbank Robur is a wholly owned subsidiary of Swedbank. Founded in 1967, Robur was one of the first fund managers in Sweden. Managing the capital of 3.1 million investors, in the Swedish mutual fund market, Swedbank Robur has approximately 27% of the assets under management.
Alex Akesson
Editor for HedgeCo.net alex@hedgeco.net HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
New York (HedgeCo.net) – Global Hedge Fund Group said that their flagship fund, the US Equity Market Neutral Fund showed annual returns of between 22-45%, accompanied with a volatility of 8-12% per annum.
The fund commenced trading on 20 August 2001 with initial assets of $14 million from institutional investors. The strategy employs a proprietary factor model which measures trends in observed stock prices and expects to profit from market inefficiencies over time.
Global Hedge Fund Group works in close association with research firms, hedge fund managers, and brokerage houses.
Alex Akesson
Editor for HedgeCo.net alex@hedgeco.net HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
New York (HedgeCo.net) – Alternative fund administration company, Butterfield Fulcrum, announced a partnership with hedge fund software firm Risk Fundamentals, to provide comprehensive risk analytics to hedge fund managers.
“As independent administrators we sit at the junction where transparency and confidentiality have traditionally opposed each other,” said Akshaya Bhargava, Butterfield Fulcrum’s CEO.
“Risk Fundamentals is a state of the art risk management and transparency solution for hedge funds, funds of funds and institutional investors,” said Ben Weston, Risk Fundamentals’ Chairman. “This collaboration fulfills a longstanding need in the marketplace for new and effective ways to understand and manage risk.”
Butterfield Fulcrum said the product will measure liquidity and leverage, the primary sources of hedge fund collapse.
Alex Akesson
Editor for HedgeCo.net alex@hedgeco.net HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
eFinancialCareers – It would be churlish to suggest a 2007-style fund management poaching frenzy was back on the cards in Scotland, but there has been definite movement of late. Some firms are looking to build their investment teams, which means others (by necessity) are recruiting once again.
Having signalled its intention to hire earlier this year, Dundee-based Alliance Trust last month recruited Rob Davidson, formerly head of fixed income at Scottish Widows Investment Partnership (SWIP) and three of his team.
