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Newsletter content  -  Issue 752

 

16 May 2008

SkyBridge Capital unveils global hedge fund seeding platform with Australia's Challenger

New York-based SkyBridge Capital, which provides strategic capital to new and early-stage hedge funds, and Australia's Challenger Financial Services Group have announced a long-term strategic relationship to launch the first global institutional hedge fund seeding and alternative investment management platform.

Prime brokers' revenue to exceed USD11bn this year, predicts Tabb study

Prime brokers will generate more than USD11bn in revenues from hedge funds this year, a 15 per cent increase over 2006, according to the fourth annual benchmark industry research study from the Tabb Group, a research and strategic advisory firm specialising in capital markets.

Hedgeweek Commentary: Behind the hedge fund news

The effects of the credit crunch and a generally harsher economic climate are driving various trends in the alternative investment industry. Hedge funds are become more activist investors, bold enough even to take on the UK government for its nationalisation of mortgage bank Northern Rock; troubled funds and managers are seeking to restructure for long-term survival, like Citi's review of the future of Old Lane and the planned divorce between Absolute Capital and Argo; and alternative managers are themselves increasingly a target for third-party investment and acquisitions.



The Hedgeweek Interview - Dr Amir Ali Farman-Farma, Connexion Capital: "We expect a shakeout and that levered players will get hurt"

Managing director Dr Amir Ali Farman-Farma says that Connexion Capital, an alternative investment advisory firm focusing on managers in the energy, resources, and oil-producing regions of the world, picks managers the firm wants to invest with, not those that hold out the promise of the biggest sales.

Hedge funds recoup losses with 2 per cent gain, says Hennessee

Hedge funds recovered much of the ground from their losses the previous month with a 2 per cent average gain in April, according to Hennessee Group, an adviser to hedge fund investors and provider of indices and other industry data.

The Hedgeweek Interview - R. Rajagopal, Kotak Mahindra Bank: "Our investment strategy is adaptive to different stages of the market cycle"

R. Rajagopal, principal investment manager of the Kotak India Dynamic Fund, says the newly-launched fund is one of the few Indian absolute return equity funds backed by a leading Indian financial services company.



Blackstone Altius Advisors to offer Asia-focused event-driven strategy

The Blackstone Group has announced that Aaron Nieman will head Blackstone Altius Advisors, a new event-driven strategy focusing on opportunities in the Asia-Pacific region and managed by an investment team based in Hong Kong as well as professionals in Tokyo, Mumbai and New York.

Alternative managers account for increasing share of asset management M&A

Sales of alternative investment firms account for a record 40 per cent of deals in the global investment management business so far in 2008, according to Jefferies Putnam Lovell, an adviser on alternative investment transactions and the division of Jefferies Group focused on the asset management and financial technology industries.

Hedgemedia's AltInvestment Global News Round-Up: Martello fails to surmount growth hurdle

Fund-of-funds manager Martello Investment Management of Great Barrington, Massachusetts, is liquidating. The firm advises on USD750m of assets in global macro, quantitative and relative value investments but failed to generate 'sufficient asset growth' in its USD250m hedge fund portfolio despite delivering positive yearly returns since its launch in 2002. David McCarthy, a GAM alumnus who ran Martello with nine other professionals, plans to wind down the firm over the course of the summer. The firm also maintained an office in London.



Barclay Hedge Fund Index gains 2.28 per cent in April to claw back first-quarter losses

Hedge funds gained on average 2.28 per cent in April, according to the Barclay Hedge Fund Index compiled by Fairfield, Iowa-based BarclayHedge, which reported that 16 of its 18 hedge fund sub-indices enjoyed positive returns for the month.

Nedgroup Investments appoints Fortis Prime Fund Solutions as administrator

Fund of hedge funds provider Nedgroup Investments has appointed Fortis Prime Fund Solutions' Isle of Man office as the administrator for all of its funds, including the Nedgroup Investments Premium Portfolio launched in February.

Comment: Sophisticated managers ready to shine in turbulent greater China markets

Do Greater China and other Asia-focused hedge funds offer little more than beta exposure with negligible contribution to portfolio diversification? Simon Coxeter, chief investment officer of fund of hedge funds manager AsiaSource Capital in Singapore and manager of the ASC Greater China Fund, argues that the current market dislocation may offer the region's growing roster of hedge funds the opportunity to demonstrate their worth.



Emerging market hedge funds see assets decline in first quarter

Hedge funds offering exposure to emerging markets saw their assets under management fall by nearly 5 per cent in the volatile first quarter of 2008, with total capital declining from more than USD115bn at the end of last year to about USD110bn, according to Chicago-based industry data provider Hedge Fund Research.

BNY Mellon acquires fund of hedge funds administrator Lamp Technologies

Bank of New York Mellon has acquired the fund of hedge funds administrative services business of Lamp Technologies, a Dallas-based alternative investment administrator established in 1997, on undisclosed terms.

Emergent and Tim Yetman partner for global macro fund launch

London-based Emergent Asset Management, an alternative investment firm specialising in macro and emerging markets, is launching a directional global macro hedge fund in a joint venture with Olea Capital founder Tim Yetman.



Mitsubishi takes minority stake in Aladdin Capital and injects seed capital

Mitsubishi Corporation has invested USD39m to acquire a 19.5 per cent stake in Aladdin Capital Holdings, an alternative investment manager specialising in fixed income hedge funds and collateralised debt obligations.

Hedge Vision looks for new seed investors as Japan fund winds down

Swiss-based manager Hedge Vision Capital has announced that following the winding down of its 15-month-old Japan Fund after heavy losses in January and substantial investor redemptions, the firm is looking to attract fresh seed investors for a new attempt to capitalise on opportunities in the Japanese market.

Barclay CTA Index slips as managed futures experiences mixed fortunes in April

Managed futures funds lost ground for the second successive month in April, declining by an average of 0.27 per cent according to the Barclay CTA Index compiled by Fairfield, Iowa-based index provider BarclayHedge.



Magnum Global Investments sponsors Crestridge Capital long/short offshore fund

Magnum Global Investments is sponsoring a new offshore hedge fund whose strategy in its US limited partnership yielded net returns of 37.4 per cent last year and has gained 19.4 per cent year in the first four months of 2008.

Phalanx Capital relaunches Asian volatility multistrategy fund with strategic investor

Chicago-based Phalanx Capital Management of Chicago has relaunched its volatility multistrategy fund with a strategic investment from Hong Kong-based Vision Investment Management. Together with capital from the firm's own management, Phalanx now manages a total of USD20m.

Capita Financial Group appoints administration director in Guernsey

Capita Financial Group, which recently established a dedicated office in Guernsey, has appointed Julian Lane as administration director, responsible for operations and administration on the island.



Energy sector funds lead hedge fund rally in April, says HFN

Early estimates indicate that the HFN Hedge Fund Aggregate Average, an equal-weighted benchmark of all single manager hedge funds and CTA/managed futures products in the 8,000 fund-strong HedgeFund.net database, gained 1.96 per cent in April but remains down 0.85 per cent so far in 2008.

Millennium Multi-Strategy Fund reaches third anniversary in positive territory for 2008

The Millennium Multi-Strategy Fund, a fund of hedge funds managed by London-based alternative investment manager and currency overlay specialist Millennium Global Investments, is keeping in positive territory for 2008 as the fund marks its third anniversary.

Optimal Investment Services strengthens risk team

Optimal Investment Services, a Geneva-based fund of hedge funds manager belonging to the Santander group, has announced the strengthening of its risk team with hires in the UK and Switzerland and the appointment of Gilles Prince as chief risk officer.



Structured Portfolio Management hires trading and portfolio management executive

Mortgage-backed securities manager Structured Portfolio Management has recruited Charles Smart as senior vice-president for trading and portfolio management, responsible for developing mortgage-backed securities derivative analytics as well as conducting prepayment risk and credit modelling.

Factor-based models can help investors distinguish lucky and talented managers, says study

A non-linear, factor-based model could have reduced the proportion of hedge fund 'time bombs' - managers who have simply been lucky rather than skilled in their past performance - exposed by the fallout from the credit crunch, according to a Riskdata study of hedge fund performance.

Magnum Global Investments sponsors Yield Curve Opportunity Fund

Investors looking for investment returns uncorrelated to the performance of equity markets can profit from arbitrage opportunities in yields on US Treasuries in the Yield Curve Opportunity Fund, according to the fund's sponsor, Magnum Global Investments.




Hedgeweek

Daily Hedgefund headlines around the world

Are fund managers' client reporting systems up to scratch?

Fri, 16 May 2008, 06:00


Hedgeweek

Client expectations of their wealth managers have changed significantly over the past decade, with the industry adapting product and service suites for a new generation of wealth creators.

Now enticing: Convertible securities

Fri, 16 May 2008, 05:52


Wall Street Journal

The scramble by big banks and brokerage firms to raise cash is creating a boom in convertible securities, and a potential opportunity for investors. Much of the money raised by firms such as Washington Mutual Inc, Bank of America Corp. and CIT Group has come through issuance of interest-paying securities that are convertible into common stock. This is the standard game plan for struggling companies that don't want to sell stock because their shares have fallen sharply but also don't want to issue long-term debt.

Andima officially launches Hedge Fund Index

Fri, 16 May 2008, 00:20


Tempo Real

Brazil's National Association of Financial Market Institutions (Andima) officially launched the Andima Hedge Fund Index (IHFA) at a seminar in São Paulo entitled "Portfolio Reference Standards."  The objective is to offer a performance reference for the sector. The IHFA, composed of 103 funds, showed a 2.52% accumulated yield for this year, and a 0.97% accumulated yield for this month through May 12. The index is scheduled to be released daily by Andima, with a delay of three workdays.



Jana wins big as CBS acquires CNet

Thu, 15 May 2008, 23:44


MarketWatch

Jana Partners LLC, an activist hedge fund firm run by Barry Rosenstein, generated big gains after CBS Corp agreed to buy Internet news provider CNet Networks Inc for USD1.8 billion in cash on Thursday. Jana and other firms including Spark Capital and Sandell Asset Management Corp., which collectively own roughly 15% of CNet's stock, had been pushing for greater control of the company.

Lampert reports 6 million share stake in Sallie Mae

Thu, 15 May 2008, 22:21


Reuters

Hedge fund manager and billionaire investor Edward Lampert reported on Thursday that his fund RBS Partners holds a 6 million share stake in Sallie Mae (SLM.N: Quote, Profile, Research), the largest US student loan company. Lampert reported the fund's holdings as of March 31 in a filing with the US Securities and Exchange Commission.

Ex-Iron Mountain Vets prep new multi-strat FoHFs

Thu, 15 May 2008, 22:18


FinAlternatives

A pair of ex-Iron Mountain Capital Partners executives has started its own fund of hedge funds shop, and is prepping its maiden offering for launch this summer. Ron Laurent, managing partner and chief investment strategist, Benjamin Browning, managing partner and chief compliance officer, and Deborah Grosser, director of marketing, started the Veritas Global Alpha Fund in March. They are looking to garner between USD20 million to USD25 million in initial assets. Murray Froikin, marketing and strategy adviser, rounds out the front line for Veritas.



Hedge Vision Japan winds down

Thu, 15 May 2008, 22:01


Asian Investor

The Japanese focused long/short fund Hedge Vision Japan has announced that it is winding down. The fund was based in Switzerland and traded Japanese equities. The principals, Stefan Bohalder and Philippe Gilliard, hope that they can get going again with the backing of a new seed investor and a relaunch, on the rationale that they have all their operations and systems in place and a decent performance track record on 10% volatility. In 2007, their US dollar class returned 6.57%, making it a top quartile performer in Japan.

Paulson hedge fund firm backs Icahn's Yahoo slate

Thu, 15 May 2008, 21:26


MarketWatch

Paulson & Co, a USD33 billion hedge fund firm run by John Paulson, said on Thursday that it will support Carl Icahn's proxy fight with Yahoo Inc. (YHOO: 27.75, +0.61, +2.3%) . The firm revealed in a filing on Thursday that it owns 50 million shares of the Internet company. Paulson said it was "disappointed" that Yahoo failed to reach an agreement to be acquired by software giant Microsoft Corp. (MSFT: 30.45, +0.52, +1.7%) earlier this year. A combination of the two companies would create a stronger competitor to Google Inc.

Credit Suisse/Tremont Hedge Fund Index is up 0.57% in April

Thu, 15 May 2008, 20:20


Centre Daily

The Credit Suisse/Tremont Hedge Fund Index was up 0.57% in April, according to Oliver Schupp, President of Credit Suisse Index Co, Inc. Mr Schupp said, "After a difficult first quarter for global financial markets, hedge funds rebounded in April, driven primarily by gains in the Long/Short Equity sector. Stronger than expected earnings posted in the financial and retail sectors helped boost investor confidence, driving an increase in stock prices amid declining volatility. Market uncertainty does persist however, as concerns over rising inflation continue to plague economies worldwide."



Icahn letter marks start of proxy battle at Yahoo!

Thu, 15 May 2008, 19:42


Financial News

Billionaire investor Carl Icahn officially launched a proxy contest to unseat Yahoo!'s board, writing in a letter to chairman Roy Bostock "the board of directors of Yahoo has acted irrationally and lost the faith of shareholders" and Microsoft. In nominating 10 directors, including himself, lieutenant Keith Meister, Dallas Mavericks owner Mark Cuban and former Viacom chief executive Frank J Biondi Jr, Icahn said the board's actions regarding Microsoft's USD47.5 billion takeover offer were perplexing

Change is in the air for financial superclass

Thu, 15 May 2008, 19:26


FT.com

Of the world's elites, none has flown higher than those who have led the financial community. The re-engineering of international finance has been one of the transformational trends of our times - in just a quarter-century, capital flows became massive, instantan eous and controlled by a new breed of traders representing a handful of major financial institutions from a few countries. Their rewards have transcended any in history as shown by an estimate by Alpha Magazine that the top hedge fund manager last year made USD3bn.

Paulson hedge fund buy 50 million Yahoo shares

Thu, 15 May 2008, 18:49


Reuters

Paulson & Co, the hedge fund that won a huge bet over the last year on the subprime credit meltdown, has built up a stake of around 50 million shares in Yahoo Inc in recent months, sources familiar with the matter told Reuters. Paulson, a USD30 billion "merger arbitrage" hedge fund led by veteran investor John Paulson, began increasing its stake around the time when Microsoft Corp (MSFT.O: Quote, Profile, Research) made its unsolicited offer to buy the company, the sources said.



Promotional feature - Have you considered having your fund of hedge funds professionally rated?

Thu, 15 May 2008, 18:00


Hedgeweek

With close attention being paid to the ability of fund of hedge funds managers to pick underlying funds that continue to prosper in more volatile market conditions, investors are increasingly examining the processes used by fund of funds managers and the capabilities of their operational structures as well as their investment skills.

ALPS Fund Services acquires hedge fund Price Meadows

Thu, 15 May 2008, 17:54


Nasdaq.com/Dow Jones

ALPS Fund Services Inc said Thursday it acquired the assets of Price Meadows Inc, a hedge-fund administrator based in Bellevue, Washington, with more than USD6 billion in assets under administration. The Denver outsourcing company said the combined business will be called ALPS Price Meadows and will operate as a division of ALPS Fund Services.

Florida couple nabbed in hedge fund scam

Thu, 15 May 2008, 17:51


FinAlternatives

Authorities have arrested a Florida couple for swindling an elderly woman in a hedge fund scam, allegedly stealing a settlement she won after being victimized by another financial schemer. John and Debra Morehart allegedly promised the woman they would invest her USD199,000 settlement in a hedge fund. The two were aware of her settlement from a company selling unlicensed annuities to the elderly when they filled out a blank check taken from the woman, according to the Florida Department of Financial Services. Instead of investing the money, the pair allegedly used it to buy a million-dollar house on Lake Tarpon, north of St. Petersberg.



CalPERS commits USD1.9bn to hedge, buyout funds

Thu, 15 May 2008, 16:34


FinAlternatives

The California Public Employees Retirement System has committed a total of USD1.9 billion to some big-name buyout and hedge funds. The nation's largest public pension fund committed USD500 million to Advent International GPE VI, to invest primarily in middle market companies located primarily in Western Europe and the US, USD125 million to Audax Private Equity Fund III, which will target US companies with enterprise values between USD25 and USD500 million across a range of industries, and USD950 million to TPG Partners VI, which will focus on leveraged buyouts and special situations, primarily in North America, Europe and, to a lesser degree, Asia.

No love for ex-mayor sentenced in hedge fund fraud

Thu, 15 May 2008, 14:54


FinAlternatives

A former Ohio mayor was sentenced to four years in prison yesterday for running a hedge fund scam that cost his victims more than USD150,000. Lee Skierkiewicz was indicted almost two years ago on 10 charges of theft and two charges of aggravated theft, and was extradited to Ohio from Chicago, where federal marshals arrested him in November 2006. Prosecutors allege that he raised between USD25,000 and USD100,000 from 13 people for his hedge fund, Prima Partners, stealing USD157,000 from six of them to pay business or personal expenses, or for his own stock market speculation.

Blackstone Unveils new Asian event-driven strategy

Thu, 15 May 2008, 10:42


FinAlternatives

The Blackstone Group is adding to its Asian hedge fund lineup, led by new hires from SAC Capital Advisors and Banc of America Securities. Blackstone Altius Advisors, based in Hong Kong, will run a new event-driven strategy. It is led by Aaron Nieman, most recently managing director at SAC's Canvas Capital Management. He will be backed by Christopher Pesce, who left his post as global head of prime brokerage at BofA last year, as chief operating officer.



Denver hedge fund ending its run

Thu, 15 May 2008, 10:42


Denver Post

Money manager Jerry Paul will put down his lance and close Quixote Capital Management, the latest in a string of Denver hedge funds to cease tilting at windmills.
Quixote Capital offered a mutual fund and hedge fund that sought to profit from the price differences and volatility in the stocks of companies buying and being bought out.
Last summer's credit crunch, however, reduced the capital available and the appetite for buyouts, leaving fewer opportunities in merger arbitrage.

Boston keeps keen eye on hedge suit

Thu, 15 May 2008, 10:40


Boston.com

The city's of Boston's Retirement Board is monitoring a lawsuit filed against an Asian hedge fund that went under, hoping it can recoup some of its own money invested in the fund. The Brockton Contributory Retirement System three years ago wrote down a USD3.4 million investment to USD1, making it one of several municipal retirement systems that lost millions in the First America Asia Fund I LLC. Municipal retirement systems in Haverhill, Natick, and Salem also lost investments in the fund, which invested in the Chinese market and at one point was valued at USD33 million.

TCI Fund asks J-Power auditors to decide on lawsuit

Thu, 15 May 2008, 10:33


Bloomberg

The Children's Investment Fund Management (UK) LLP has asked J-Power's auditors to decide in 60 days whether the company should sue its board for a decline in profit, a letter from the fund shows. The UK-based hedge fund, known as TCI, called on the independent auditors to judge whether the 13 board members should pay the utility JPY6 billion (USD57 million) in compensation, according to a copy of the letter obtained by Bloomberg News.





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Up and coming events

GAIM International 2008

Tue, 17 Jun 2008



17 - 19 June 2008 - Monaco

Meet 300 already registered hedge fund investors and connect directly with them using your secure Spotme. This hand-held electronic device allows managers to sort investors by the strategies they are seeking and enables you to send messages to them and easily identify and locate those you want to meet. Managers are listed by strategies selling so it works the same way for allocators looking for funds in which they want to invest.

In addition, hear case studies and latest research from 180 renowned academics and powerful institutional and HNW investors, alternative asset management experts and advisors.

So join 1,200 of the brightest and best of an industry for an incredible week of targeted direct networking, new deals, fresh ideas, and hot-of-the-press learning: hard benefits which last all year.


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Post-Crunch M&A: Doing Deals In a Down Market

Wed, 18 Jun 2008



This one-day event will take an honest but constructive look at the current market for M&A, analyzing issues including the following:
• Restructurings and distressed M&A opportunities
• Middle market financing trends
• Navigating portfolio companies through a down cycle
• Cross-border M&A


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Asset Allocation Summit UK

Mon, 23 Jun 2008



23 - 25 June 2008 - London

Watson Wyatt report in their 2007 Global Pension Assets Study that "pension fund investment is subject to change on an unprecedented level." At the forefront of this change is the desire to reduce risk and at the extreme end of the scale, pensions buyout companies are offering to relieve companies of their pension liabilities altogether.



Percentages are calculated from 1 rating(s).

Content % :
 
100%
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100%
Logistics % :
 
100%
Total % :
 
100%
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Real Estate Investment World Asia 2008

Mon, 23 Jun 2008



23 - 26 June 2008 - Singapore

As Asia's No. 1 real estate investment convention, REIW Asia is:



·   The biggest and most comprehensive event of its kind to showcase the products, strategies, personalities and leading companies that comprise the Asian real estate investment management market place

·   Where the global investment community gathers to assess the investment opportunities in Asian real estate

·   Where institutional investors, fund managers and Asia-Pacific property developers demonstrate the merits of active real estate investment


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IMN - The Private & Non-Traded REIT Industry Symposium

Mon, 23 Jun 2008



23 - 24 June 2008

This event addresses the most crucial issues currently facing the industry. Now in its fifth year, this Symposium is the primary educational and networking forum for the industry. The largest event of its kind, it provides a key platform for the industry to gather and share the latest in-depth information and acts as a venue to meet all the key players of the Non-Traded REIT industry.


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ETF and Closed End Funds World 2008

Mon, 23 Jun 2008



23 - 25 June 2008 - London

Despite the significant expansion of ETFs in the last 12 months, their evolution is still just beginning. New ETFs are arising weekly and the ranks of ETFs are set to continue to explode in 2007. Natural resources, bonds, individual emerging market countries and targeted market capitalisation strategies all make for a very exciting year ahead.



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India Hedge Funds 2008

Tue, 24 Jun 2008



24 June 2008 - Geneva

India's financial markets have had several excellent years and international investors are looking for opportunities with the best funds managers in India. India has opened its doors to hedge funds and the mutual fund industry. India is quickly progressing, with a solid macro basis, a population in excess of 1 billion, powerful market support and a future that industry experts are predicting to rival opportunities in China. To date the total assets of all Indian domestic funds stands at a healthy US$ 50 billion. The booming capital market coupled with the strong development of the asset management industry has created exciting opportunities for investors.


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Hedge Fund Investor Summit:

Tue, 24 Jun 2008



Hedge Connection and SourceMedia present Hedge Fund Investor Summit: Identifying the Next Generation of Alpha, taking place on June 24 at the Yale Club in New York City. This intimate gathering of managers and investors will explore how to navigate the difficult waters of today's volatile and challenging market and will identify what strategies will generate alpha during the next year.


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IQPC - 3rd Annual Hedge Fund Investments Japan IQ 2008

Wed, 25 Jun 2008



Main Conference: Wednesday 25 to Thursday 26 June 2008
Pre-Conference Masterclass: Tuesday 24 June 2008
Post-Conference Masterclass: Friday 27 June 2008

Endorsed by AIMA Japan and the Tokyo Hedge Funds Club, our 3rd Annual Hedge Fund Investments Japan IQ 2008 conference is now recognized as being the premier event in Japan for the hedge funds industry with better content, better speakers, more end investors and more single hedge fund managers then the nearest competition.


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Private Equity Real Estate Summit

Thu, 26 Jun 2008



26 - 27 June 2008

FRA's Private Equity Real Estate Financing & Opportunity Forum is a comprehensive two-day event designed for private equity real estate professionals looking for innovative financing structures, strategic plays, and opportunities in the real estate industry during turbulent market conditions.  


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