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Bloomberg – Permal Group temporarily blocked clients from taking money out of two hedge funds that invest with NWI Management LP while NWI changes its redemption rules, according to two people familiar with the matter.
The firm, based in London, froze the $700 million Permal Fixed Income Special Opportunities Ltd. and $350 million Permal Global Opportunities Ltd. funds, said the people, who asked not to be identified because the decision wasn’t publicly disclosed. Both Permal funds reinvest with NWI.
NWI, which oversees $2.8 billion, was hit with a surge in redemptions, the people said, in part because the New York-based firm allows investors to pull their cash each month. Most hedge funds limit withdrawals to every 90 days, and NWI is now changing its policy, the people said. Hari Hariharan, who runs NWI, declined to comment.
Opalesque – For the US financial markets, as the credit crisis unfolded there was, along with the desire for immediate action, a sense that the government was taking temporary steps until the election would decide which administration would be the next to hold office.
As the November 4th election has determined the next US President to be Barack Obama, hedge fund managers gathering at the Walkers "Fighting the Tape" seminar on Thursday (November 6th) will include in their discussions on the outcome of the Presidential Election and the direction of the hedge funds industry.
"I do not look for a President-elect Obama to increase taxes on successful individuals as he has proposed. It is one thing to get elected, another to govern." Professor Jeffrey Rosensweig, Director of the Global Perspectives Program at Goizueta Business School of Emory University told Opalesque. A speaker at the "Fighting the Tape" seminar, Prof. Rosensweig will examine the global economy, market trends, changing demographics and global opportunities for investors and investment managers. "Given the backdrop of looming recession, he will realize this is no time to raise taxes on those who create jobs and/or put capital to productive use, and would face the disincentive of high marginal tax rates which he currently proposes."
West Palm Beach (HedgeCo.net) – Alternative investor, Polygon Investment Partners LLP has agreed not to further oppose the restructuring of the company by British Energy and other shareholders, in exchange the shareholders and British Energy have agreed to stop all outstanding legal actions against Polygon.
In the circumstances, Polygon believes that there is no commercial logic in proceeding with the EGM or supporting the proposed resolutions.
Polygon has also frozen redemptions on their $4bn flagship multi-strategy fund, Global Opportunities, while it unwinds the fund and returns money to investors.
Polygon Investment Partners LLP ("Polygon") is a global private investment firm based in London and New York, investing in a wide range of publicly traded securities. The firm currently has over $1.35 billion under management.
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New York (HedgeCo.Net) – Drake Management will shut down its two remaining hedge funds one month after winding down the $2.5 billion Global Opportunities Fund. The $1.4 billion Absolute Return Fund and the $160 million Low Volatility Fund will follow suit, after experiencing similar losses originally fueled by the subprime fallout and credit crunch.
Drake had informed investors in March that they were considering shutting down the funds, citing “challenging market conditions.”
The Absolute Return Fund was down 14.36 percent in 2007, while the Low Volatility Fund was down 4 percent. Drake will be launching new funds, and investors that choose to stay with the firm will only pay performance fees once the original losses are recouped.
"We are committed to launching successor vehicles for the funds later this year, for those investors who have expressed a desire to remain invested in strategies substantially similar to those of the funds and to new investors who would like to invest," said the company.
Drake was formed in 2001 by former BlackRock manager Anthony Faillace and his partner Steve Luttrell.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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HedgeWeek – A hedge fund focusing on Russia and the former Soviet Union, Da Vinci CIS Private Sector Growth Fund, has become the first listing on the Specialist Fund Market, the London Stock Exchange’s new market for alternative investment vehicles.
The fund has raised approximately USD110m to invest in unlisted equity and equity-related securities of companies located in Russia and other member countries of the Commonwealth of Independent States.
‘Da Vinci’s admission to the Specialist Fund Market, together with the formal listing of BH Global, the second main market fund from Brevan Howard, cement London’s position as the public market of choice for hedge funds and other alternative investment vehicles,’ says Martin Graham, director of equity markets at London Stock Exchange Group.
BH Global, a newly-established feeder fund investing in the Brevan Howard Global Opportunities Master Fund, began unconditional dealing on May 29 having raised USD1bn through a listing on the London Stock Exchange’s main market.
‘Integral to London’s attractiveness is the choice of markets that we are able to offer funds, aligned to their profile and structure, the types of investors they wish to target and the risk premium sought by investors,’ Graham adds.
‘The creation of the Specialist Fund Market adds to that choice, and we expect to see more funds follow Da Vinci’s lead over the coming months by using the Specialist Fund Market to access London’s unique community of expert investors.’
Da Vinci Capital Management founder and managing partner Oleg Jelezko says: ‘It is a great pleasure to see the Da Vinci CIS Private Sector Growth Fund commence trading, a major milestone for our flagship product.
