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HedgeCo.net (West Palm Beach) – Credit Suisse Tremont Index LLC released a new research piece, 1H 2009 Hedge Fund Update: Halfway There, a review of how hedge funds have repositioned themselves in the first half of 2009 to generate positive returns for five out of the first six months of the year.
The report discusses how hedge funds have generated year-to-date returns of 7.2% through June 30, outperforming, with lower volatility, both key equity and bond indices. Some key takeaways from the report include:
* The Convertible Arbitrage, Emerging Markets, and Global Macro sectors have received increased attention as investors began to regain their appetite for risk and global markets rallied.
* Performance has improved across most sectors, with the bulk of returns for many strategies moving into positive territory for the year, with 80% of all funds reporting positive returns for the second quarter.
* Overall industry assets under management have dropped approximately $18 billion since the end of the first quarter of 2009; we estimate industry assets totaled $1.3 trillion as of June 30 – down from $1.5 trillion at the end of 2008.
* As of June 30, 2009, an estimated 9.6% of funds were classified as impaired, meaning they have either suspended redemptions, imposed gate provisions or sidepocketed assets.
Credit Suisse is comprised of a number of legal entities around the world and is headquartered in Zurich. The registered shares of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares, in New York.
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Boston Globe – Investors of disgraced financier Bernard Madoff have filed 18 lawsuits against Massachusetts Mutual Life Insurance Co. in an effort to recoup $3.3 billion that its hedge fund group lost in the scandal. But the Springfield insurer is trying to distance itself from the ordeal and says it has no liability in the matter.
MassMutual maintains that the losses racked up by investors in its hedge fund group, Tremont Group Holdings Inc., are their own – and not the responsibility of the insurance company. Tremont had the second-largest loss among Madoff clients after Fairfield Greenwich Advisors, a New York hedge fund that lost $7.5 billion.
DST International – One group of hedge funds has had its performance boosted in comparison to its peers as a result of the Bernard Madoff scandal, according to a number of industry insiders.
Due to the failures of three large funds or fund groups – Fairfield Sentry, Kingate and Rye Select – which were components in the Credit Suisse/Tremont equity market neutral index, the listing has been distorted.
As such, the surviving funds are able to claim they have outperformed the index’s benchmark, Reuters notes.
West Palm Beach (HedgeCo.net) – Hedge fund managers KP Securities and Sophia Capital Securities announced that they are joining forces, enhancing the 2 firms ability to raise capital for alternative investment managers. The transaction between the two firms was finalized on September 1, 2008.
The new combined company, Belvedere Global Investors LLC, is headquartered in Belvedere, California, a short distance from the San Francisco financial district. The company is a distribution boutique focused on alternative investments. It raises capital for investment manager clients that include hedge, private equity and venture capital funds and funds of funds, as well as for private companies seeking direct investments.
"This transaction will allow our team to continue deepening its geographic coverage of investing clients and fund managers, bringing under one roof a truly global collection of relationships", said Keith Pagan of KP Securities.
Over the past 4 years, the combined team, now run by Keith Pagan and Patrick Beaudan, the principals of Belvedere, has raised over $1.5 billion in capital for alternative investment managers in the U.S., Europe and Asia, working with investors in over 50 different countries.
"The combination of our firms enhances the depth of the professional assets we can deploy in supporting the capital raising efforts of an increasing range of clients in the alternative investment space, while preserving our focus on delivering top-notch investor relations services", said Patrick Beaudan.
As part of its activities, Belvedere also organizes private roundtables, where institutional investors meet select alternative investment managers over the course of a high-quality, one-day event that excludes vendors and the press.
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