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.
West Palm Beach (HedgeCo.net) – Euromoney Institutional Investor is planning to launch a new magazine and online offering covering US and international hedge funds in September.
The company’s hedge fund publishing assets include Institutional Investor’s Alpha magazine and Absolute Return magazine, which is published by HedgeFund Intelligence, the world’s leading information source on hedge funds. The new publication will be titled "AR".
"The new publication will include everything that Alpha and Absolute Return contained, but it will be a new magazine which will contain a lot of editorial that neither magazine does, including new surveys, rankings and high-powered web functionality," says Euromoney Institutional Investor chairman and Editor-in-chief Padraic Fallon.
"With the hedge fund sector under intense scrutiny from Washington, regulators and investors, this is an excellent time to launch a hedge fund publication," he says. "Building on the strengths of both Institutional Investor and HedgeFund Intelligence, we have the opportunity to produce the world’s leading hedge fund title which will keep investors, managers, regulators and the whole hedge fund community informed on developments in the sector."
"Hedge fund performance has recovered strongly in 2009, after the sector’s worst ever performance in 2008, and there are now significant opportunities," says Michelle Celarier, editor of Absolute Return. "The new magazine is an exciting development because it joins two prestigious monthly magazines that cover hedge funds to create a single authoritative voice. Our mission is to create the most insightful, entertaining and definitive content about the hedge fund industry, in both the printed magazine and online. We will offer readers information they cannot find elsewhere, including news and performance data on thousands of funds, along with in-depth analysis, research and profiles of the biggest hedge funds."
Advertising will be sold by Christine Cavolina, publisher of Institutional Investor, and the Institutional Investor sales team, led by Joy Desanto.
"AR will provide an unparalleled editorial environment for advertisers interested in the hedge fund industry," says Cavolina. "It presents the ideal opportunity for companies serving this audience to influence decision-makers and generate new business."
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Seeking Alpha – The innovators were out with guns blasting as they introduced an ETF that acts like a hedge fund. How has it been doing since the March 25 launch?
This new ETF, established by Index IQ analyzes publicly available hedge fund performance data and then tries to replicate returns utilizing ETFs and other liquid trading vehicles. Additionally, it promises to perform as well as a hedge fund without the risk and with low correlation to traditional assets. Another benefit that this ETF could offer to investors is risk reduction because of its low correlation with the stocks and bonds that already dominate an investor’s portfolio.
Reuters – Lehman Brothers Holdings Inc agreed on Wednesday to sell its 45 percent stake in hedge fund R3 Capital Partners for $250 million in cash and a $250 million investment in another fund managed by R3.
Lehman, which filed for bankruptcy protection last month, acquired the stake in May in return of a roughly $1 billion investment, according to document filed in U.S. Bankruptcy Court in Manhattan.
R3 Capital is run by Richard Rieder, a former head of global principal strategies at Lehman.
Lehman owned the non-voting, minority ownership stakes in the master fund, general partner, special limited partner and management company of R3 Capital Partners, an asset manager of funds investing primarily in corporate bonds and loans.
Slate – The Wall Street bailout is alive again. In an effort to make the $700 billion bailout palatable, the architects of the law have larded it up with all sorts of goodies, such as increasing the levels of deposit insurance, sparing some taxpayers the ravages of the Alternative Minimum Tax, and extending tax breaks for alternative energy. Henry Paulson’s three-page sprig has sprouted into a 451-page Christmas tree.
What’s most interesting about the Emergency Economic Stabilization Act of 2008 is just how much it reads like a prospectus for a hedge fund. In the past, hedge funds—secretive pools of capital—were open only to qualified (read: rich) investors.
But with the stroke of a pen, President Bush will soon make all American citizens investors in the world’s biggest fund—and a democratic one at that. Taxpayers won’t just be the investors. We’ll own the management company, too. Best of all? For at least a few months, we’ll have the former CEO of Goldman Sachs run our investment for a very small fee. Call it the "Universal Hedge Fund."
Investors Chronicle- In Homer’s Iliad, Troy was razed to the ground by Greek warriors, but Troy Asset Management aims to put up a much better defence for its investors. The boutique fund manager takes its name not from the ancient city but from Lord Weinstock’s British thoroughbred racehorse, winner of the 1979 Epsom Derby.
As chief executive of Troy Asset Management, Sebastian Lyon’s main concern is not to lose investors’ money. He used to work for GEC as one of the team running its pension fund but in 2000 was asked by GEC managing director Lord Weinstock to set up an independent management company to look after £36m of the family fortune, with a brief to look after it conservatively.
Troy’s three funds are open to investors who have £10,000 (or £7,200 in an individual savings account) to invest, and between them they have assets of £258m.
"It’s not an easy time to be a fund manager," admits Mr Lyon, who manages the conservative Trojan Fund and co-manages the more aggressive Trojan Capital Fund. "We will probably continue to be in a bear market for the next year or so."
Financial Times – Man Group has teamed up with an Abu Dhabi-owned investment company to make electricity from the gas produced as a byproduct of oil drilling, which is currently wasted in the form of flaring.
Abu Dhabi will inject the first $300m (£151m) into a new fund, which aims to raise $1.5bn, and will receive a small equity holding in the management company.
The launch of the MENA Associated Gas and Global Environment fund is the latest attempt by Europe’s biggest hedge fund manager to cash in on the boom in environmental investing.
Through MTM, a London subsidiary, it already runs a $600m fund capturing methane emissions from Chinese coal mines, and it is considering launching a Brazilian biofuel fund.
Peter Clarke, Man chief executive, said talks were already under way with countries in the Middle East, north Africa and Asia about working with their national oil companies. He said it already had many expressions of interest from sovereign wealth funds keen to put money in and had the potential to double its size to $3bn if it attracted enough money.
