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Wall Street Journal - Down in the morning, up in the afternoon. Or is it the other way around? The topsy-turvy stock market is tough to read.
In the last year, the Dow Jones Industrial Average has briefly been over 13,000 and below 8,000. The past month has felt like the Cyclone roller coaster on Brooklyn’s Coney Island — lots of ups and downs, the whole rickety thing feeling like it’s going to crash at any minute.
West Palm Beach (HedgeCo.net) - Hedge fund IT provider, Richard Fleischman & Associates, announced that Colin Moe has joined the firm as account manager. The appointment furthers RFA’s unprecedented growth and commitment to serve its client base of 400-plus alternative asset firms.
Increased demand for flexible technology solutions by RFA clients is being driven by turbulent market conditions and the need to stay nimble with IT infrastructure for expansion or contraction in the immediate future.
In this role, Colin will work with clients to assure optimized service levels and performance outcomes. As a focal point of contact, he will orchestrate the deep bench of resource available to RFA clients ensuring client satisfaction.
“Colin is an accomplished and respected industry professional with outstanding credentials and extensive prime brokerage expertise that our clients will immediately identify with,” said Don Previti, director of business development at RFA. “His important role as Strategic Account Manager will further reinforce RFA’s position as the vendor of choice for firms in the alternative asset space."
With more than ten years of experience, Colin joins RFA following long tenures in account management with Citigroup Prime and Bear Stearns Prime. He has a wide range of account experience, having worked in depth with hedge funds of differing trading strategies, investment styles and asset sizes, ranging from start-ups to multi-billion-dollar funds. His professional specializations encompass trading facilitation, technologies, implementation and training, and asset financing.
Established in 1990 and headquartered in New York, NY, Richard Fleischman & Associates is a trusted technology advisor to over 400+ hedge funds, private equity funds and fund of funds globally, offering both turnkey IT solutions and on-site and remote monitoring staffed 24/7/365.
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Wall Street Journal - Some high-profile Bain Capital credit-investment funds are choking on losses of as much as 50%, said people familiar with the matter, the latest revelation in a day of shake-ups across the hedge-fund business.
The private-equity firm’s credit affiliate, Sankaty Advisors LLC, has lost between 40% and 50% across two funds that bought up highly secured corporate loans, these people said. The two vehicles had roughly $4 billion in assets just a few weeks ago, and used a relatively low amount of borrowed money to fund their investments.
Steep losses have also hit London hedge fund Centaurus Capital LP, which Wednesday offered its investors a chance to cut their fees. And, at Tudor Investment Corp., one of the oldest and best-regarded hedge funds, fund manager James Pallotta finalized a plan to run his own firm separate from longtime colleague Paul Tudor Jones.
TIMES - The ups and downs of the Dow are making Wall Street’s so-called "smart money" look dopey. Hedge funds lost nearly $300 billion due to bad investments in the first nine months of the year, according to an analysis of return data by TIME.com.
If the losses stand it would be by far the worst year for these funds, which are unregulated and open only to high-net worth investors, since their returns began being tracked in the mid-1970s. "It’s not going to be a good year," says Peter Laurelli, vice-president at HedgeFund.net. "We can be pretty sure of that."
The calculation does not include gains some of the funds may have made in Monday’s rally, but analysts say that won’t be nearly enough to erase the hundreds of billions of dollars the funds are down. "The losses should concern every investor because these are supposed to be the smartest guys out there," says Charles Gradante, who is the co-founder of hedge fund advisory firm Hennesse Group. "If they can’t manage their investments how is average person with a 401(k) supposed to cope?"
Forbes - U.S. activist hedge fund Atticus Capital has lost more than $5 billion this year, a source familiar with the matter told Reuters, after its funds were hit by heavy falls in financial stocks. Atticus, a high-profile player in deals such as Barclays‘ unsuccessful bid for ABN Amro last year, saw total assets under management fall to around $14 billion at end-July from more than $20 billion last year, the source said.
The losses were mainly due to a 32.9 percent loss in the $7 billion Atticus European fund from the start of the year to the end of August and a 25 percent fall in the Atticus Global fund.
The firm, which employs a variety of investor lock-ups, saw few investor redemptions. Atticus declined to comment. The firm, which views itself as a long-term investor, has nevertheless delivered strong performance in recent years.
In 2006 founder Tim Barakett earned $675 million, according to hedge fund industry publication Alpha Magazine.
CNBC - There is a new breed of funds moving into the clean technology sector – specialized hedge funds that have at least $750 million under management.
And they bring a new play – long and short – on the notoriously volatile sector.
But it remains to be seen whether playing the growth sector’s zigzags is more profitable than patient investment in the sector’s broader upward trajectory.
“It is an interesting philosophical difference,” notes Angus McCrone of London-based New Energy Finance, a leading provider of clean energy financial research.
“One is saying this is a huge growth story, let’s just put out money in and it will work out well in the long term, and the other is saying, well this is an exciting growth sector but there is going to be some big ups and downs, so let’s take advantage of the ups and the downs and try to get superior performance.”
West Palm Beach (HedgeCo.Net)- Hedge Fund Investor AIG and Advisor Larch Lane have announced the formation of a joint venture to make seed investments in hedge funds. The joint venture seeks to capitalize on synergies between AIG Investments’ global alternative investment and hedge fund capabilities and Larch Lane’s specialization in hedge fund seeding.
Targets may include hedge fund start-ups, teams leaving established hedge funds, and established hedge funds in need of restructuring. They anticipate investing $50-200 million per deal across a wide range of hedge fund strategies and geographies.
"Talented investors are leaving large hedge funds to start their own businesses, but many of them have not been able to reach their capital targets." Mark Jurish, Larch Lane’s CEO said, "The current supply/demand imbalance for start-up hedge fund capital represents the best seeding opportunity I’ve ever seen"
AIG Investments manages over $10 billion of hedge fund assets and has been investing in hedge funds for 26 years. AIG is currently invested in more than 130 hedge funds, including emerging managers. Larch Lane, the alternative investment affiliate of Old Mutual Asset Management, is among the pioneers in the hedge fund seeding business and has made a total of 22 seed investments over the course of the last seven years.
Reuters - American International Group Inc’s asset management division has reached a joint venture agreement with Larch Lane to make seed funding investments in hedge funds.
The AIG Investments and Larch Lane venture expects to invest between $50 million and $200 million in each deal, according to a joint statement on Wednesday.
Larch Lane is an affiliate of Old Mutual Asset Management, the U.S. asset management group of Old Mutual Plc.
AIG Investments currently manages about $10 billion in hedge fund assets, spread among 130 hedge funds. Larch Lane has invested in 22 hedge fund start-ups over the last seven years, according to the statement.
"This venture gives us the opportunity to not only invest with up-and-coming managers, but to also participate more directly in the profit growth of a rapidly growing industry," said Robert Discolo, AIG Investments’ head of hedge fund strategies.