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Bloomberg - Och-Ziff Capital Management Group LLC, the New York-based hedge-fund manager that went public last year, eliminated at least 10 jobs in Asia, including partner Raaj Shah, said two people familiar with the matter.
The cuts made last week, out of a global workforce of about 460, included employees in the firm’s credit and distressed- investment units, said the people, who asked not to be identified because the information wasn’t publicly announced.
“We have made some minor reductions in Asia, and we remain committed to the region,” the company said today in an e-mailed statement. Hong Kong-based Shah referred calls to the company.
Citadel Investment Group LLC, the Chicago-based firm run by Kenneth Griffin, and New York-based Ramius LLC have also laid off staff in Asia as hedge funds suffer their biggest annual loss and highest investor withdrawals since at least 1990. The HFRX Global Hedge Fund Index declined 23 percent this year through Dec. 5 amid a global credit squeeze and a more than 40 percent decline in the MSCI World Index.
Financial-Planning.com - The fate of many a hedge fund relies on what investors decide to do with their money on Nov. 15, when it is possible an overwhelming majority could ask for their money back by the end of the year, Dow Jones reports.
If there is a rush to the exits, that could send the Dow Jones Industrial Average and equities, as well as other markets-including credit, commodities, foreign exchange and foreign stock markets-spiraling even further downward.
Hedge funds that give investors until Nov. 15 to notify them if they want their money back include Citadel Investment Group and Och-Ziff Capital Management Group. Others have deadlines of Nov. 26 or Nov. 30.
Bloomberg - Och-Ziff Capital Management Group LLC will invest as much as $500 million in projects that bury greenhouse gases blamed for global warming and create tradable emissions credits.
Och-Ziff, the hedge-fund firm run by Daniel Och, also bought 10 percent of the emission credit company Blue Source LLC, chief executive officer Bill Townsend said. Townsend wouldn’t disclose the value of the deal, which closed Aug. 14.
Emissions credits from projects that reduce global warming gases are voluntarily traded in the U.S. by companies and others seeking to enhance their environmental image. Congress is debating legislation that would mandate reductions in greenhouse gases and create a market for emissions credits that utilities and large manufacturers would need to meet pollution targets.
“To us, it’s pretty dramatic,” Townsend said in an interview yesterday. “We think that this will probably fund us for the next three years of investments.”
New York Times - The Blackstone Group may be best known as an immense private equity firm, but the firm’s earnings report on Wednesday made it clear that Blackstone has been buoyed by its hedge fund operations.
Blackstone reported $165.6 million in profit for its second quarter, excluding costs tied to its initial public offering last June. That represented a nearly 75 percent drop from the same period last year, a consequence of the troubles still plaguing the credit markets. On the basis of generally accepted accounting principles, the firm reported a pretax loss of $185.5 million.
Yet Blackstone’s results, which amount to 15 cents a unit, still beat the average analyst estimate of 8 cents a unit, according to Bloomberg News.
Other publicly traded alternative-asset managers also reported quarterly earnings on Wednesday. Och-Ziff Capital Management, a big hedge fund, said it earned $93.3 million, while GLG Partners, a large hedge fund based in London, reported profits of $44.2 million. Both figures exclude costs related to the firms’ public offerings.
New York (HedgeCo.Net) - Baer Capital has announced the launch of their new fund that invests in Indian equities, distressed debt and derivatives, further propelling Dubai’s prominence in the hedge fund industry. The Beacon India Alpha Equity Fund is the latest fund aimed at capitalizing on India’s emerging markets.
‘We are extremely excited about the launch of the Beacon India Alpha Equity Fund which is a long short equity fund focused on listed Indian equities and managed by Baer Capital Partners International Ltd,” said Brij Singh, Founder and Chief Executive Officer of Baer Capital Partners. “The Beacon India Alpha Equity Fund is an integral part of our mission to create a ‘Best in Class’ alternative asset management platform focused on India.”
This is the second hedge fund for Baer, who also manages a $220 million private equity fund centering on opportunities in India. Norton Rose (Middle East) LLP has advised Baer on both the structure of the private equity fund and the hedge fund. Baer isn’t the only company captivated by the potential of India. Donald Trump Jr. just recently launched a fund focused on acquiring luxury properties in the subcontinent.
In addition, big players in the hedge fund arena like D.E. Shaw, Renaissance Technologies and Och-Ziff Capital Management have already established their presence in the Indian market.
Baer Capital Partners was established in 2006 and focuses on investment management, corporate finance and wealth advisory.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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CNN Money- A listed fund of hedge funds operated by Goldman Sachs Group Inc. (GS) has lifted its assets by about 25% by raising an additional $ 221.3 million on the London Stock Exchange on Tuesday.
Goldman Sachs Dynamic Opportunities Ltd. (GSDO.LN), which invests in 20 hedge funds run by managers including New York’s Och-Ziff Capital Management Group LLC and London’s The Children’s Investment Fund Management (UK) LLP, now manages about $840.2 million, making it the second-largest fund of hedge funds trading in London.
Investors have been scooping up shares in listed funds of hedge funds as a way to diversify from traditional stocks and try to preserve capital in turbulent markets. Funds of hedge funds have historically posted flat returns in years when stock markets suffered sharp declines.
Wealth Bulletin- A spokesman for the HFWG confirmed last week that the guidelines, which were aimed at raising governance levels across the traditionally secretive industry, have found no support beyond the original 14 signatories - including Man Group, Brevan Howard, Och-Ziff Capital Management and CQS.
At the publication of the 28 principles more than five months ago, HFWG chairman Sir Andrew Large had urged investors to help take the matter forward, adding that this was essential to ensure a wide adoption of the disclosure-based voluntary initiative.
The Independent - Hedge funds have given a voluntary code for the industry a collective thumbs-down – not a single firm has signed up to the compliance standards since they were launched in January.
Nearly five months ago the Hedge Fund Working Group (HFWG) published a raft of recommendations for the sector that were intended to raise governance levels across the traditionally secretive sphere. But a spokesman confirmed last week that no hedge funds had signed up to abide by the proposals beyond the original 14 signatories, including Man Group, Brevan Howard, Och-Ziff Capital Management and CQS.
An HFWG spokesman said the body’s priority was the appointment of a permanent chair, adding that it was speaking to a number of groups that could possibly sign up to the standards.
At the publication of the guidelines in January, Sir Andrew Large, chairman of the body, said: "Now it is up to investors to help take this forward. This is a voluntary, market-led initiative based on disclosure. It is investors who can provide the market discipline to ensure these standards are widely adopted."
In April a survey by the accountants KPMG revealed that eight out of 10 pension funds favour investing with a hedge fund manager that has complied with the 28 principles of the standards set out by the HFWG. More than 50 per cent of funds surveyed said they would require hedge fund managers to comply with the standards within three years.
News of the response to the voluntary code comes as the European Parliament assesses proposals to toughen up legislation linked to the industry. The former Danish prime minister, Poult Nyrup Rasmussen, is leading a group of MEPs calling for greater openness and scrutiny of hedge funds and private equity groups.