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.
Times Online – Hedge fund managers are spivs and speculators, directly responsible for creating carnage in the world’s financial markets and threatening the future of high street banks. At least, that’s what some argue.
But it is, emphatically, not true, according to Christopher Fawcett, the hedge fund executive who has taken on the role of de facto cheerleader for Britain’s embattled alternative investment industry.
Such criticism is misplaced, he argues. Investment banks, rather than hedge funds, were behind the surge in gearing, or leverage, that pushed markets to breaking point in the middle of last year. Hedge funds were actually more conservative and only moderately geared.
West Palm Beach (HedgeCo.net) – Hedge fund Manager OakRun Capital LLC, has announced the launch of a receivables refactoring fund, the ‘Short Term Fund’.
The ‘Short Term Fund’, a Cayman Islands exempted fund, launched on October 1st and came in at 9.48% annualized in its first month. The fund’s objective is to generate above average current income with a lower overall credit risk profile and maintain a stable NAV.
With JP Morgan & Wachovia Bank as Custodian, the fund has a 1% management fee, 10% performance fee, quarterly redemptions, an initial lock-up period of 6 months and a minimum investment of $1,000,000. Shares are offered for subscription to eligible non-U.S. persons.
Managed by a board of directors responsible for the overall supervision and control, the fund has engaged OakRun Capital to perform management and administrative functions.
"We do not believe that simply managing for relative performance is satisfactory to our clients or ourselves." says Scott Rhodenizer, Founder, CEO, and Chief Investment Officer, "While we work to outperform the markets, we strive to do so without excessive risk.”
The fund will seek to achieve its objective through a process known as factoring. In markets for debt instruments, higher relative yields generally indicate greater levels of credit risk than lower yielding instruments. However, OakRun believes that the trade receivables purchased by the fund present an opportunity to achieve higher yields with moderate risk.
Rhodenizer is former Managing Director at Deutsche Bank Securities with over 16 years of experience within the investment industry. He advised on over $2.5 billion in institutional assets at Deutsche Bank Securities in Miami, Florida and has experience in traditional and structured investments, such as fixed income securities, derivatives, global equities, and commodities.
At least 50% of the portfolio is insured by Euler American Credit Indemnity, an Allianz company and insurer of domestic and foreign accounts receivable covering US sales in excess of $150 billion annually. Euler is North America’s leading credit insurer, rated AA- by Standard & Poor’s. It is a subsidiary of Paris-based Euler incorporated in 1891 with current net assets in excess of $3.0 billion.
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Bloomberg – Office rents in Mayfair and St. James’s, the London districts with Europe’s biggest concentration of hedge funds, are falling for the first time since 2005 as the alternative investment industry has its worst year in two decades.
The cost of renting new or refurbished offices in those neighborhoods, the most expensive in the world, fell 6.5 percent to 107.50 pounds ($168) a square foot in the six months ended Sept. 30, data compiled by Jones Lang LaSalle Inc. show. Incentives such as rent-free periods lowered the net figure to 95.96 pounds, the commercial property broker estimates.
Demand for space is falling as at least 350 funds in the $1.7 trillion hedge fund industry have closed this year amid the global financial crisis, including Peloton Partners’ ABS Fund and MKM Longboat Capital Advisors’ Multi-Strategy Fund. Client redemptions and forced asset sales have given investors losses for five straight months through October, the longest streak since 1990, and the slump may push rents down to as low as 90 pounds a foot, Jones Lang of Chicago estimates.
West Palm Beach (HedgeCo.net) – Vantage Reporting said it has changed its name to Vantage Software, reflecting the company’s focus on delivering products to private investment firms with modular software designed to easily enhance their existing systems.
“Since founding Vantage, we have worked with world-class clients to continually develop a solid set of core products that deliver the robust functionality of comparable packaged solutions,” said Vantage Software CEO Greg Woolf. “By virtue of our innovative software design, we also give clients the option of customizing our solutions to meet their unique operational requirements.”
To support Vantage’s continued global growth, David Sayles has also joined Vantage as director of sales and client service. Sayles will be responsible for the development and implementation of sales, account management and business development efforts. Sayles has more than 18 years of experience developing, bringing to market and managing financial technology solutions, particularly for the private investment industry. He is a frequent speaker at conferences and industry events.
“David brings a wealth of experience in the financial and technology industries, including valuable insight into the unique operational environments of private investment firms,” Woolf added. “Given the company’s continued global growth, we are pleased to have such a seasoned sales and client service veteran help us continue to expand our market position and quality of service to our clients.”
Vantage has offices in Boston and New York and has four core software products – Vantage Deal Manager™, Vantage Performance™, Vantage Funds-of-Funds™ and Vantage Investor™. Leading private investment firms that have embraced Vantage’s unique approach manage raised more than $250 billion dollars in capital to date.
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West Palm Beach (HedgeCo.net) – The Greenwich Hyatt will be the scene of the 2008 Global Alpha Forum, the hedge fund event is for both fund managers operating in Connecticut and investors wishing to get to know those managers.
The Forum will be held on September 16 and 17, 2008, and will be followed on September 18 by the Green Hedge Trail, an opportunity for institutional investors to visit the offices of some of the world-class funds operating in the Greenwich area, to both meet the funds’ managers and to have some of their questions answered concerning strategies of the various funds included in the Trail.
The Forum is jointly sponsored by the Connecticut Hedge Fund Association, the association of hedge fund professionals representing over 150 member firms based in the “hedge fund capital of the world” of Fairfield County, Connecticut, and Opalesque, the world’s largest subscription-based publisher covering the alternative investment industry.
Rudolph W. Giuliani, Partner, Bracewell & Giuliani, will kick off the Forum at 9 am on Tuesday, September 16th. His address will be followed by panels discussing first Green Trading and Carbon Finance and then the 10 Days that Changed Capitalism.
Lawrence H. Summers, Managing Director, D.E. Shaw and former U.S. Secretary of the Treasury, will be interviewed as part of the luncheon on Day One. After lunch, a panel discussion will explore the Rise of the Sovereign Wealth Funds.
Once the main agenda is concluded, a Hedge Fund Manager Workshop is available that will present the secrets to Creating Reinsurance Firms and Banks: New Permanent Capital Vehicles for Hedge Funds and Funds of Funds. Following the first day’s sessions will be a Networking Event that begins at 5:30pm designed to allow plenty of time for attendees to become acquainted with one another or strengthen existing relationships.
Day Two sessions again begin at 9 am and will include panels on Hedge Fund Regulation, Institutional Investing and the Economic Outlook, all from a global perspective. The luncheon keynote on this day will be Eugene Ludwig, Chairman and CEO, Promontory Interfinancial Network and Former U.S. Controller of the Currency.
Another Hedge Fund Manager Workshop will be offered after the close of the main conference sessions. This workshop will address Islamic Finance: Tapping Middle Eastern Wealth through Islam-Compliant Vehicles.
The GAF was inaugurated in 2007 and that event attracted several hundred delegates and live coverage by both CNBC and Bloomberg Television. Along with the notables highlighted above, numerous financial media personalities will participate as panel moderators and interviewers and panelists consist of world-renowned experts in their subject areas. The GAF is poised to become “Davos on the Sound”—the center of thought leadership for issues impacting the alternative investment industry.
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West Palm Beach (HedgeCo.net) – Alternative investment platform, Altegris Investments, has plans to expand their research team under the leadership of Mr. Allen Cheng, an accomplished hedge fund investment professional with extensive industry experience.
Cheng joins Altegris as Managing Director, Research and Investments, and will be a member of the Altegris Investment Committee, with responsibility for evaluating investment strategy and completing product review for the Altegris platform of alternative investments.
"Allen’s breadth of experience in alternative investments, with both major financial institutions as well as private investment firms, complements the deep knowledge base of our research team," said Jon Sundt, President of Altegris Investments. "We are dedicated to maintaining a world-class research team, under Allen’s expert leadership, to accomplish our mission of providing high quality alternative investments to wealth managers and high net worth investors."
Cheng joins Altegris from his recent role as Managing Director, Head of Fund of Funds Portfolio Management at Bank of America’s Alternative Investment Group. He has significant experience in the alternative investment industry, particularly in the area of identifying, selecting, and monitoring hedge fund managers across multiple investment disciplines.
"Altegris offers clients a unique, open-architecture platform of alternative investments, supported by extensive review and ongoing monitoring," said Cheng. "I am energized by the opportunity to join this team specializing in alternative investments and to expand our in-depth research capabilities."
The Altegris team finds, selects and negotiates capacity with selected hedge funds, managed futures funds, and other alternative investments. Currently, investors have allocated more than $2.4 billion in trading level to alternative investments available through the Altegris platform. The Altegris Group of Companies includes Altegris Investments, APM Funds, and other affiliates.
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New York (HedgeCo.Net) – TD Waterhouse has been ordered to pay a $2 million fine as a result of selling hedge funds to clients who were not accredited, according to a report by the Vancouver Sun.
The Investment Industry Regulatory Organization of Canada claimed that TD “failed to establish and maintain alternative investment review or approval procedures,” while failing to “ensure that the purchase of hedge funds were appropriate for its clients.”
The Olympus hedge funds were sold from 2001-2005 and were the subject of complaints from 31 TD Waterhouse clients. Their chief problem with the funds was that they were portrayed as a safe, low risk investment.
Hedge funds, while they may enjoy lighter regulation than most traditional investments, must adhere to strict guidelines when it comes to who may invest in them. Because hedge funds are thought to carry most risk than other investment vehicles, the investor must possess the status of being “accredited.” Since accredited investors are thought to be sophisticated and educated in the realm of investing, hedge funds can therefore enjoy the benefits of lighter regulation.
According to Alex Popovic, Vice President of Enforcement at IIROC, the fine was reduced because of TD’s willingness to cooperate and a number of things they implemented internally to help correct the problem. These include new training programs and controls, as well as the discipline of brokers who sold the funds to unqualified clients.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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West Palm Beach (HedgeCo.net)- Hedge Fund representative, the Managed Funds Association (MFA), has submitted comments on the Best Practices Reports released by the two Committees appointed by the U.S. President’s Working Group on Financial Markets (PWG).
The Asset Managers’ Committee Report and the Investors’ Committee Report provide guidance for establishing best practices standards for the hedge fund industry and its investors.
"MFA has reviewed thoroughly the Asset Managers’ Committee Report and the Investors’ Committee Report, and we are broadly supportive of both sets of recommendations, which are comprehensive and substantive." Richard H. Baker, MFA President and CEO, said.
Andrew Baker, Deputy CEO of the Alternative Investment Management Association (AIMA) said, "We fully endorse the responses submitted by MFA to both committees… We are committed to the international harmonisation of sound practices for the alternative investment industry and look forward to leading this global approach with MFA as well as with all other industry stakeholders."
MFA represents members of the the global alternative investment industry. Including professionals in hedge funds, funds of funds and managed futures funds. MFA Members represent the vast majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $2 trillion invested in absolute return strategies.
New York, NY – (May 29, 2008) – HedgeCo Networks and LJH Financial Marketing Strategies announced today a partnership to provide comprehensive marketing and investor relations services to the global hedge fund industry and related financial sectors.
The new partnership offers a comprehensive financial marketing platform designed to develop and manage hedge fund brands through the use of regulatory compliant collateral. HedgeCo-LJH specializes in website design and construction, corporate identity/logo design, marketing collateral, marketing research, thought leadership, and event support. Overall, the goal is to help clients raise assets and visibility.
“The HedgeCo-LJH partnership will allow clients to leverage the services of each firm to remain competitive in the alternative investment industry,” said Evan Rapoport, managing partner of HedgeCo Networks. “Hedge fund managers and operators are able to outsource their marketing needs to better focus on their core business.”
About HedgeCo Networks
HedgeCo Networks is a premier name in the hedge fund services industry, offering a vast selection of services and tools for hedge funds. Their flagship site, HedgeCo.Net, is a portal used daily by over 25,000 investors and hedge fund managers. Drawing on the experience used in creating and managing HedgeCo.Net, the HedgeCo Websites Team has designed over 150 websites for hedge funds and private equity firms of all sizes in the United States, Europe, Asia and Australia. Their newest tool, the Hedge Fund 2.0 Calculator, is used by hedge funds by compute statistics, graphs, and marketing materials within minutes.
About LJH Financial Marketing
LJH Financial Marketing Strategies’ exclusive focus is on the global financial services industry, with specialized knowledge of hedge funds, private equity and related financial sectors. Partnerships begin with a thorough research-driven analysis of goals and objectives, including competitive reviews and a hard look at positioning. Based on this in-depth review, a variety of cost-effective marketing strategies and tactics are implemented to help drive bottom-line results. LJH has unparalleled experience and deep-seated industry relationships that help clients raise assets and market visibility.
