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Stuff – As the collectivisation of middle class capital accelerated, a multiplicity of managed fund choices emerged to confuse the investor. There are active funds, passive funds, index funds, hedge funds, specialist funds trading in commodities, shares, junk debt, securitised rubbish, mortgages, small cap shares, large cap shares, contrarian funds.
You name it, there is a manager out there for every conceivable flavour of investment approach and every conceivable investment asset. In addition you can buy ethical funds and green funds to tap into the social issues, which by the way underperform but we feel better somehow. (Ethical funds seem to outperform but this is more to do with the weight of money argument (see below) than the underlying performance of the assets).
HedgeCo.net (West Palm Beach) – Rosemawr Management LLC, two months ago launched the Rosemawr Municipal Partner Fund LP,. The fund has seen returns of 0.82% in May and 0.86% in June, since inception on May 1st 2009.
With former Managing Director at Lehman Brothers, Greg Shlionsky, as portfolio manager, the new fund’s investment approach is fundamentals-driven. The investment team believes it possesses a unique understanding of municipal investments’ fundamentals. The investment strategy is based on thorough analysis of securities’ structure and credit, rather than on short-term momentum or technicals.
The fund limits its capital allocation (before leverage) to any one investment to 15% of the Fund (with exceptions made for short-term very liquid securities). Leverage is only applied to securities that the Investment Team considers liquid.
Rosemawr Management LLC, the Fund Manager, is an SEC-registered Investment Adviser focused exclusively on the U.S. Municipal market. The Fund’s Investment Team is comprised of professionals who draw on decades of senior-level experience overseeing municipal portfolios and major trading desks to manage credit, interest rate and event risk. Average Principal’s tenure in the municipal market is 20 years.
In addition to the fund, Rosemawr oversees value-added municipal strategies for family offices (including those of Forbes 100 and Forbes 400 families), ultra high net-worth individuals, and select institutional clients.
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West Palm Beach (HedgeCo.net) – Fidelity International is launching the Fidelity Wealth Builder Fund through it’s Indian asset management arm, the new fund is an open ended fund of funds scheme offering asset allocation options with three plans.
The investment objective of the fund is to seek to generate reasonable returns based on the plan selected with minimum and maximum asset allocation between debt and equity. The fund manager will use a two-tier investment approach – asset allocation and fund selection – to invest in Fidelity’s funds. The NFO will be open from January 14 to February 5, 2009. The Fund will open for ongoing purchases and redemptions from March 2, 2009
“Asset allocation decisions can drive as much as 91.5% of investment returns variability, as studies have shown." Ashu Suyash, Managing Director and Country Head – India, Fidelity International, said, "In the current market conditions of heightened volatility, a fund like the Fidelity Wealth Builder Fund provides investors a convenient route to benefit from disciplined asset allocation. We are in an environment where attractive returns are likely in the bond market and there is potential for bear-market rallies in equities on the back of increasingly attractive valuations.”
Ms. Suyash added, “To encourage investors who have turned risk averse, the Fidelity Wealth Builder Fund is a fund with no entry load. Whether investors invest through their advisers or directly, they will not be charged an entry load. Moreover, the Fund also offers investors free switch-in and switch-out facility between the Plans, if, over time, investors’ outlook for debt and equity changes.”
The Fund will offer Growth and Dividend options. A dividend is proposed to be declared, subject to availability of distributable surplus, on a Quarterly basis under Plan A and Plan B. Under Plan C, the dividend may be declared by the Trustee, at its discretion, from time to time subject to the availability of distributable surplus.
The minimum initial investment is Rs.5000.($100K )Investors can invest in the Fidelity Wealth Builder Fund even through the SIP route with a minimum amount of Rs. 500 per installment with the total of all installments not being less than Rs.5000. In addition, the systematic transfer and systematic withdrawal plans are also available.
FIL Fund Management Private Limited is the Indian arm of Fidelity International, one of the world’s leading global investment management companies with operations in 23 countries and more than $197.9 billion in assets under management.
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West Palm Beach (HedgeCo.net) – Privately-owned investment management company, SVM Asset Management, is seeking approval from the Financial Services Authority for the launch of the long/short SVM UK Absolute Alpha Fund, which has a similar investment approach to their SVM Saltire fund, which returned +19.7% in 2008.
The fund, if approved, will have the flexibility to move from a net long to a net short position differentiating it from other absolute return funds, the company says. Managed by Colin McLean, returns will be driven by stock selection and the net position of the fund will be determined by whether the manager has more long or short stock ideas at the time.
"In 2008 just 31 of the stocks in the FTSE All Share ended the year higher, and 580 were down. It is therefore not surprising that few long only managers were able to profit," McLean says, "Without question this year will be challenging for the economy. However, at a company level there will be winners and losers and fundamental stock picking skills will be required to identify them."
The focus will be on generating positive returns over the long term rather than positive performance each month, as such SVM believes the appropriate time frame for investing in the new fund is at least three years.
Based in Edinburgh, SVM focuses principally on global fund of funds, UK and European equities.
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