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.
International Herald Tribune – Hedge fund managers usually shun the spotlight. But five of them, billionaires all, are about to come under the glare on Capitol Hill.
The money managers — Philip Falcone, Kenneth Griffin, John Paulson, James Simons and George Soros — have been called by a House panel to discuss some of their trade secrets at a hearing on Thursday.
The topics are likely to range from the managers’ use of leverage — the borrowed money that fuels investment returns on the way up but can be devastating on the way down; their funds’ bets in the markets; and the managers’ pay.
Also front and center will be the matter of oversight, one of the most contentious issues confronting the loosely regulated hedge fund industry. Regulation, or the lack of it, has been an issue since the 1990s, but it has come to the fore this year as questions have swirled about hedge funds’ role in the financial crisis.
International Herald Tribune – Making millions – or even a few billion – by managing a hedge fund has been a running dream on Wall Street in recent years. But suddenly even the masters of this $2 trillion universe are falling on hard times, at least by their own gilded standards.
Hedge funds, those secretive investment vehicles for the rich and, increasingly, not-so-rich, are supposed to make money whether markets go up or down. But many of them are being swept up in the turmoil in the financial world.
The funds’ investment returns are sinking, and so are those big paydays for their managers, whose riches have helped redefine our notions of wealth and helped drive up the price of everything from Picassos to New York penthouses.
Several big funds have faltered in recent weeks, some of them spectacularly so. While many funds are still flying high, the average hedge fund has lost more than 4 percent this year, according to Hedge Fund Research, putting the industry on course for its worst year on record.
New York Times – Making millions — or even a few billion — by managing a hedge fund has been a running dream on Wall Street in recent years. But suddenly even the masters of this $2 trillion universe are falling on hard times, at least by their own gilded standards.
Hedge funds, those secretive investment vehicles for the rich and, increasingly, the not-so-rich, are supposed to make money whether markets go up or down. But many of them are being swept up in the turmoil in the financial world.
The funds’ investment returns are sinking, and so are those big paydays for their managers, whose riches have helped redefine modern notions of wealth and helped drive up the price of everything from Picassos to Manhattan penthouses.
Several big funds have faltered in recent weeks, some of them spectacularly so. While many funds are still flying high, the average hedge fund has lost more than 4 percent this year, according to Hedge Fund Research, putting the industry on course for its worst year on record.
West Palm Beach (HedgeCo.net) – Emergent Asset Management launched the African Agricultural Land Fund in August 2008, with a second closing to take place in September 2008.
The fund has raised almost €2 billion already ($2.9 billion), and wants to raise a total of €3 billion and is canvassing a range of investors. Minimum investment size is €500,000 for private investors and €5m for institutional investors.
The African Land Fund will offer investors the opportunity to participate in the growing Sub-Saharan agricultural sector. It will apply modern management disciplines and introduce improved farmland techniques to increase crop yields and investment returns.
Initially, the investment focus will be in South Africa. The portfolio will be expanded within Africa to include (but not limited to) countries such as Botswana, Zambia, Mozambique, Swaziland and the DRC.
Emergent has partnered with Grainvest, a firm of professional agricultural traders and one of the top five participants on the South African Securities Exchange, involved in agriculture locally, including farming, manufacturing, and transport and trading.
The Fund’s targeted return is 25% pa and will be denominated in Euros.
The Fund qualifies as a socially responsible Investment in keeping with the co-managers’ investment philosophy, endeavouring to make a positive contribution to the well-being of the local community.
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CityWire.co.uk- Skandia has launched an offshore protected fund of funds which aims to offer capital protection alongside investment returns from the global equity markets.
The Royal Skandia Protected Portfolio Investment Global Vista Life fun (PPI Global Vista) will offer exposure to global markets in a protected environment through equally weighted positions in AXA Framlington Emerging Markets Acc fund, Henderson European Opportunities A Acc fund, Invesco Perpetual Global Bond Inc fund, M&G Global Basics A Euro Acc fund and Schroder US Smaller Companies Inc fund.
It will be available to UK investors via Skandia’s offshore portfolio bonds and offers 100% capital protection plus 100% of the quarterly averaged growth at maturity. There is also an enhanced allocation of 104%.
The fund has a fixed five year term and will return the final redemption value to the bond at the end of the term offering the opportunity to reinvest the proceeds into an alternative investment vehicle.
Altassets – Cleantech-focused venture capital firm RockPort Capital Partners has closed its third fund, RockPort Capital Partners III, on over $450m, the hard cap of the fund. It had an initial target of $400m and held a first closing just three weeks ago, on $400m.
The new fund will continue the focus of RockPort’s previous funds, investing in the development of technology and products in emerging cleantech companies.
The investor base consists of US university endowments, family offices, foundations and institutional investors from both the US and Europe.
Wilber James, managing general partner, RockPort, said, ‘The cleantech sector provides enormous opportunities to identify and foster initiatives that offer solutions to global energy and natural resource needs, while providing superior investment returns. We have already seen how the teams we invest in can create enormous value. Our collaborative approach together with a business-building mentality and keen domain expertise has proven invaluable to growing companies.’
