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.
Focus Infomation – France on Friday will press for tighter controls on hedge funds, urging other big industrialised nations to strengthen regulation of the industry and compel banks that lend them money to hold more capital. Paris wants the European Union, and eventually all leading economies, to beef up indirect regulation of hedge funds via their prime brokers, the banks which provide them with loans and other services.
Under plans to be floated by Christine Lagarde, French finance minister, banks could face higher capital requirements to reflect the riskiness of their hedge fund clients, a proposal likely to be resisted by banks that are already struggling to raise capital.
West Palm Beach (HedgeCo.net) – In the wake of the Madoff scandal, Tuckerbrook Alternative Investments is offering its hedge fund investors the daily market value of assets in their capital accounts.
"In light of the impact 2008 is having on the hedge fund business, transparency is the most important enhancement the industry can embrace," John Hassett, Managing Principal of Tuckerbrook, said, "Tuckerbrook has always used third-party prime brokers, administrators and auditors in order to provide independent verification of fund activity, so it made sense to us to have daily asset transparency reports distributed directly from Citi Hedge Fund Services, to underscore the importance of both independent asset pricing and more frequent transparency. Although unique in the industry now, we would expect this level of reporting to become standard practice in the future."
Moses Grader, Chief Operating Officer of Tuckerbrook, said, "Ninety percent or more of all hedge fund investments are in commingled fund structures, with only the largest investors having daily accountability through separately managed accounts. Daily transparency at the client-account level, delivered by a trusted third party, is a major step up in accountability to those investors that don’t have an SMA."
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West Palm Beach (HedgeCo.net) – President and Chairman of Hedge Funds Care (HFC), John Budzyna, will preside over the Closing Bell to mark the 11th Annual New York Open Your Heart to the Children Benefit to be held at Cipriani 42nd Street on February 11, 2009.
Hedge fund industry professionals established HFC, a charitable organisation focused on assisting young victims of abuse, in 1998. Since that time, chapters have opened in New York, San Francisco, Chicago, Atlanta, Boston, Denver, Toronto, Cayman, and most recently in London.
The organisation comprises those companies with interests in hedge funds, including investment managers, investors, prime brokers, attorneys, accountants, administrators and information providers.
Times Online- Citigroup is to close an $800 million hedge fund co-founded by its chief executive Vikram Pandit, following bad returns and the loss of top managers.
The US investment bank will now buy what is left of Old Lane Partners’ assets and be forced to further write down the value of the fund in the second quarter, The Wall Street Journal reports. In the first quarter Citigroup wrote down the value of the fund by $202 million to reflect investor redemptions.
Old Lane’s closure is the latest blow for Citigroup, which has struggled with sub-prime mortgage related losses, losing nearly $15 billion in the last two quarters, forcing it to cut jobs and sell businesses.
