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.
Tehran Times – Permal Investment Management, the hedge fund investment division of U.S. asset manager Legg Mason Inc, is aiming to raise up to $500 million to take advantage of a boom in distressed sales of hedge fund holdings, the Financial Times said.
Hedge funds investors have been selling their holdings at a discount to escape restrictions on withdrawals amid a global rush for cash, according to the paper.
The new fund has been ""designed to take advantage of investors’ need for liquidity,"" Omar Kodmani head of Permal’s London office, told the paper.
""There is an unusual number of sellers out there and those who are holding funds with a one-year lock-up or even a three-month wait to the next redemption window need to get out at a discount,"" Kodmani was quoted as saying.
Reuters – The British arm of asset management group Aviva Investors is betting that investor interest in hedge fund-style products will survive the credit crisis and rebound once market turmoil abates.
Paul Abberley, UK CEO, told Reuters Aviva Investors would boost its high alpha and absolute return business in the coming months and expand its investment team across the board.
Hedge funds and similar products have come under scrutiny as investors question how modest performance in a market turmoil chimes with the high fees charged by the industry. Hedge funds claim to be able to generate returns in bad times and good.
Abberley, CEO of Aviva’s London office since the beginning of August, said: "We believe clients will look for more higher alpha (excess returns) products than in the past and we need to be able to offer excellence in those areas."
Bloomberg – Lehman Brothers Holdings Inc., the U.S. investment bank holding company that filed the largest bankruptcy in history, faces objections to a proposed $1.75 billion sale of its broker-dealer unit to Barclays Plc.
Hedge fund Harbinger Capital Partners asked a U.S. bankruptcy judge to block the sale unless Lehman immediately discloses cash transfers it made just prior to its bankruptcy, including an alleged $5 billion transfer of cash from Lehman’s London office. Another two hedge funds, Bay Harbour Management LC and Amber Capital, filed papers alleging $8 billion was moved.
The objections continued to roll in as a hearing to approve the sale, scheduled for 4 p.m., was delayed as hundreds of participants and onlookers overcrowded a courtroom in U.S. Bankruptcy Court in Manhattan.
Lehman “must provide adequate information, and certify its accuracy, as to what cash has moved in and out of Lehman Brothers Inc. and debtor Lehman Brothers Holdings Inc.,” Harbinger said in court documents filed today with U.S. Bankruptcy Judge James Peck.
West Palm Beach (HedgeCo.Net)- Sidley Austin has further expanded its hedge fund practice in London by hiring a new counsel in the Investment Funds, Advisers and Derivatives practice.
Barry Breen has joined the firm’s London office and will focus his practice on hedge funds and further expand Sidley’s fund capabilities in London. "Barry is a talented and experienced hedge fund lawyer and we are pleased to have him join us to enhance our growing fund capabilities in Europe," said Bruce Gardner, head of the hedge fund practice in London.
Breen will advise clients on the organization of offshore and onshore hedge funds, including master/feeder,fund of funds and side by side investment structures, commodity pools, registered fund of funds and mutual funds, ETFs, and the registration, regulation and governance of registered management investment companies.
"I am thrilled to join a firm with such a respected and renowned global investment funds practice," said Breen. "I look forward to working with Bruce, David and the other partners in the practice to continue to build and strengthen the funds team in London, Europe and globally."
Breen previously was with Tannenbaum Helpern Syracuse & Hirschtritt LLP in the Financial Services, Hedge Funds and Capital Markets practice operating out of their New York and London offices.
Sidley has a international practice in structuring and advising investment funds and advisers. In 2006 and 2007, the Alpha Awards(TM) for hedge fund service providers ranked Sidley as the number one onshore hedge fund law firm. Additionally, in 2008, the firm was named "Investment Funds Team of the Year for the U.S." by Chambers and Partners. In 2007, Sidley also was named Investment Funds Law Firm of the Year by Asian Legal Business. The Investment Funds, Advisers and Derivatives practice group consists of more than 100 lawyers in Chicago, Hong Kong, London, Los Angeles, New York, San Francisco, Singapore and Tokyo.
West Palm Beach (HedgeCo.net)- Soon after the scheduled departure of several senior traders and executives was announced, hedge fund GLG Partners has begun hiring new experts to fill in the gap.
Experts such as as Galia Velimukhametova, Fabrice Bay, and most recently Driss Ben-Brahim, a star Goldman Sachs emerging markets trader. He is to manage and hopefuly expand GLG’s $1.2 billion special situations portfolio.
Galia Velimukhametova is to join the hedge fund’s London office as a Portfolio Manager. With extensive background in the area, Galia will focus on distressed situations. Galia joins GLG from King Street Capital, where she was a Managing Director and Member of the European Investment Committee.
Fabrice Bay was previously a Managing Director at DWS/Deutsche Asset Management in Frankfurt, his significant experience in managing global long-only and 130/30 portfolios will play an important role in driving forward GLG’s offerings in these areas, according to GLG.
As of March 31, 2008, GLG has managed a net AUM (assets under management) of over $24.0 billion. GLG’s capital appreciation strategies target long-term capital appreciation through diversified portfolios of global equities and bonds.
Since its inception in 1995, GLG has built on the roots of its founders in the private wealth management industry to develop into one of the world’s largest and most recognized alternative investment managers, while maintaining its tradition of client-focused product development and customer service.
