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CNBC – Another of the once giant hedge funds is all but closing its doors. Atticus Capital founder Timothy Barakett, 44 years of age, is shuttering his flagship fund and returning $3 billion in capital to his investors. The roughly $1 billion left, Barakett’s personal fortune, will be managed by him in a so-called “family office”. Atticus will keep its European fund (not managed by Barakett), with roughly $1.5 billion under management, open.
Barakett says the decision was a personal one, driven by his desire to spend more time with his family. I don’t doubt it. But, I can’t help wondering whether Barakett’s exit is also due to the fact that most of the $3 billion he’s returning to investors is below its high water mark.
West Palm Beach (HedgeCo.net) – Hedge fund adviser, Hennessee Group LLC, announced that the Hennessee Hedge Fund Index advanced +3.84% in April (+5.02% YTD).
“April continued to be a challenging environment for hedge funds, as the market rally was driven by short covering and momentum, rather than changes in fundamentals,” commented Charles Gradante, Co-Founder of Hennessee Group. “While we have seen some improvement in data (most typically that the rate of deterioration is slowing), most funds remain conservatively positioned. Funds are cautious and will wait for fundamentals to improve before significantly expanding their net exposures.”
“Hedge funds underperformed again in April, but have still outperformed year to date. Volatility remains elevated with the S&P 500 experiencing a gain or loss greater than 8% each month this year,” said Lee Hennessee , Managing Principal of Hennessee Group . “Last year hedge funds did a good job of protecting capital, so they don’t need a huge rally to reach a new high water mark. Equity markets would need to double from current levels to reach their previous high.”
Alex Akesson
Editor for HedgeCo.Net Email: alex@hedgeco.net
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Bloomberg – Penjing Asset Management, a Hong Kong-based hedge fund of funds manager overseeing about $520 million, said it may not get any performance fees until next year, and declining income will restrict staff bonuses.
The company, which ran the fourth-best-performing Asia- Pacific fund of hedge funds last year, plans to keep all its 22 staff as layoffs by rivals make it cheaper to retain talent, said Chief Investment Officer Ronnie Wu.
“Realistically, 2009 we are just trying to climb the high- water mark,” Wu, 40, said in an interview yesterday, referring to a fund’s peak net asset value. “If we’re lucky, maybe we will get some incentive fees in 2010. It will be tough. The senior guys will take a pay cut. But if we can keep everybody intact, I think the future will get better again.”
West Palm Beach (HedgeCo.net) – Alternative investment consultant and director, Bob Torkelund has announced the launch of a Cayman regulated fund, the Arkanar Global Macro SP. The fund is being monitored and the due diligence work done by the Cayman regulator before the launch took place.
The initial offering period runs throughout February 2009, with a minimum investment of $10.000.
Torkelund said, “The fund is easy dealing and settlement: we have organised electronic clearing via Clearstream/Euroclear ‘payment against delivery’ which makes the fund available to most European and international banks in line with other international securities.”
The fund has a 20% high water mark performance fee and 0.5% per quarter as management fee and an expected annual return of 15–20%.
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New York – Hong Kong based hedge fund manager, PCM Capital, has successfully launched it second Fund of Funds (FoF) – PCM Green Power Fund on 1st, April 2008. The fund (Class A) returned 1.34% and 1.10% in the first two months respectively.
The new “Green” fund – with its emphasis on Asia – trades or invests in a number of environmental and alternative energy related sectors including clean energy, water management, waste management, power trading, CO2 derivatives and environmental technologies.
Norman Chan, CIO of PCM Capital, said, “We are launching this product in response to the compelling investment opportunities emerging in the environmental sectors, particularly in Asia. In addition, there is increasing demand from institutional investors for exposure to environmental related investment.”
Norman further added, “The demand reflects growing environmental awareness, attractive upside potential and solid diversification benefits.”
Established in 2006, PCM Capital has two funds under management – PCM Asia Pioneer Fund and PCM Green Power Fund.
For more information, please visit www.pcm-cap.com
