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.
Stamford Advocate – With a new regulatory regime hanging over the industry’s head and a field of shellshocked investors looking for safety, it may seem that hedge fund managers are poised to make a rush into the mutual fund arena.
But there’s a disagreement over how many hedge fund managers will follow AQR Capital Management LLC of Greenwich and others into mutual funds.
Ben Alpert, a hedge fund analyst at Morningstar Inc., said he expects the move will be significant. But David Kabiller, founding principal and head of client strategies for AQR Capital Management, said he wouldn’t bet it will be very big.
Greenwich Time – With a new regulatory regime hanging over the industry’s head and a field of shellshocked investors looking for safety, it may seem that hedge fund managers are poised to make a rush into the mutual fund arena.
But there’s a disagreement over how many hedge fund managers will follow AQR Capital Management LLC of Greenwich and others into mutual funds.
Ben Alpert, a hedge fund analyst at Morningstar Inc., said he expects the move will be significant. But David Kabiller, founding principal and head of client strategies for AQR Capital Management, said he wouldn’t bet it will be very big.
Wall Street & Technology – Although talk of the swine flu has largely been out of the media for the past few weeks, a rush of new cases of the H1N1 virus is expected to hit financial centers in the fall and winter " and organizations, and in particular hedge funds, need to be well prepared for a pandemic.
Bob Guilbert, managing director of marketing and products at Eze Castle Integration (booth 1804), which provides outsourced IT technology and services for hedge funds, says his firm has been taking a proactive approach to the pandemic.
Bloomberg – The global hedge-fund industry lost $64 billion of assets in November, with an index tracking its performance declining for a sixth month as economies in Asia and Europe joined the U.S. in recession, Eurekahedge Pte said.
“It’s very clear that there is going to be significant consolidation in the hedge-fund industry,” said Duncan Smith, a partner in Hong Kong at Ogier, a firm that provides corporate and legal services to financial companies. “Conditions are quite difficult and that really goes without saying. Underlying liquidity is very hard for funds.”
Market declines contributed to $18 billion in net losses, while investor redemptions made up $46 billion, Singapore-based Eurekahedge said, based on preliminary figures taken from 41 percent of the funds it surveys. It said hedge-fund assets shrank by $110 billion to $1.65 trillion in October.
Bloomberg - The global hedge-fund industry lost $64 billion of assets in November, with an index tracking its performance declining for a sixth month as economies in Asia and Europe joined the U.S. in recession, Eurekahedge Pte said.
“It’s very clear that there is going to be significant consolidation in the hedge-fund industry,” said Duncan Smith, a partner in Hong Kong at Ogier, a firm that provides corporate and legal services to financial companies. “Conditions are quite difficult and that really goes without saying. Underlying liquidity is very hard for funds.”
Market declines contributed to $18 billion in net losses, while investor redemptions made up $46 billion, Singapore-based Eurekahedge said, based on preliminary figures taken from 41 percent of the funds it surveys. It said hedge-fund assets shrank by $110 billion to $1.65 trillion in October.
Reuters – Man Group plans to be a consolidator in the hedge fund industry in the long-term, said Chief Executive Peter Clarke, who thinks the industry could see redemptions of between a third and a quarter at the year-end. "Consolidation is undoubtedly going to happen … Longer-term we’d expect to be a consolidator in these markets," he told Reuters in an interview on Thursday.
However, he said the firm was "doing nothing in these markets, there’s too much uncertainty."
Clarke also said redemptions in the $1.7 trillion hedge fund industry of between a quarter and a third at the end of the year would be "the right sort of figure."
"The year-end is seeing significant levels of redemptions," he said.
RTT News- Pipeline company Crestwood Midstream Partners LLC said Wednesday that Blackstone Group and its hedge fund GSO Capital Partners L.P. have acquired ownership interests in the company.
Houston, Texas-based Crestwood noted that as part of the deal, Blackstone and GSO, along with Kayne Anderson and Crestwood Management, LLC, have combined to provide it with $500 million in equity capital commitments in order to help it pursue the acquisition and development of North American midstream assets and businesses. The funding represents an increase from the existing $150 million in equity capital commitments.
Through their investment in Crestwood, Blackstone and GSO intend to capitalize on the significant growth opportunity in the midstream sector of the energy industry, which is supported by record supply development in many regions of the U.S., broad-based investment in new energy infrastructure projects and potential consolidation opportunities that may emerge in the coming years.
