Managers
By Piers Alexander, Conyers Dill & Pearman – The Cayman Islands is a world leader in the establishment of offshore hedge funds. Its tax-neutral platform, stable economy, sophisticated banking sector, confidentiality and professional financial service industry are just some of the reasons the location is attractive to hedge fund managers the world over.
To help fund managers decide whether the Cayman Islands is the right home for their fund, we have outlined some important factors to consider when setting up a hedge fund, as well as provided an overview of relevant documentation and regulations.
Structural considerations
A hedge fund is
Carnegie Affiliated Managers (Caram) is to acquire (via its subsidiary Caram Alternative Investments AB) approximately 35 per cent of the equity in Albatris AB (Albatris), with Albatris’ management retaining 65 per cent.
Albatris’ ambition is to be a leading investment company in the Non-Performing Loan (NPL) segment of European alternative credit investments.
Caram’s investment is consistent with its strategy to invest in focused independent firms with strong investment led cultures. The Caram group was founded in 2016 by its majority owner Altor Fund III and is the largest independent asset management group in the Nordics with over EUR23 billion
Pathstone Federal Street has launched a new environmental, social and governance (ESG) measurement tool as part of its portfolio execution platform: P-Cubed (Pathstone Portfolio Platform).
P-Cubed provides the ability to hold diverse investments in a single account, at a lower cost and improved efficiency.
“We developed P-Cubed to provide clients with meaningful tax and expense efficiencies, but now it is much more than that,” says Mathew Fleissig (pictured), President of Pathstone. “Today, P-Cubed delivers the power to strategically customise and align a client’s portfolio with their goals in ways we believe were not possible before. This is a new
Hedge funds are up 7.27 per cent for the year, posting better performance compared to a modest 3.68 per cent gains last year, according to Eurekahedge’s final monthly report for 2017.
Asset base for the industry grew by USD188.2 billion in 2017, with USD94.7 billion of the gains in assets attributed to investor inflows and USD93.5 billion attributed to performance-based gains. This compares with an AUM contraction of USD20.0 billion in 2016 where investor redemptions stood at USD55.1 billion while performance-based gains came in at USD35.1 billion.
Almost 76 per cent of hedge fund managers have posted positive returns
Singapore-based OC Horizon FinTech has concluded its first month of activity in blockchain related asset investment, having achieved a 24 per cent return in November.
The firm says the fund is invested in a mixture of blockchain-related equities and digital assets, including both high market cap cryptocurrencies and strategically selected alt-coins.
OC Horizon says that its hedge fund has an initial target of raising USD150 million and is the first of its kind to place cryptocurrency assets within the reach of institutional investors.
The firm writes that until now, institutional investors have avoided investing in volatile cryptocurrencies – but consistent
Asian hedge fund platform OP Investment Management Ltd (OPIM), in partnership with Watercourse Advisors, is to launch the Watercourse Macro Fund SP of Sunrise SPC, a Cayman-domiciled hedge fund for professional investors only.
The absolute return fund will deploy a global, directional macro strategy.
Founded by Wei Liao (pictured), Watercourse will continue the same strategy she ran whilst previously managing BIA Pacific Macro Fund. The portfolio will focus on anticipating and identifying tactical trading opportunities as well as strategic investment themes in Asia-Pacific, US, and Europe, by taking long and short positions in highly liquid, transparent, easy-to-price instruments across
The gross return of the SS&C GlobeOp Hedge Fund Performance Index for November 2017 measured -0.40 per cent.
Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index declined 0.18 per cent in December.
“SS&C GlobeOp’s Capital Movement Index showed a net outflow for December 2017 of -0.18 per cent,” says Bill Stone (pictured), Chairman and Chief Executive Officer, SS&C Technologies. “On a year-over-year basis, this compares to net inflows for December 2016 of 0.21. December net flows have been close to zero in recent years, so this result was within the range of expectations for the month. For the full year 2017, capital
Hedge funds edged higher last week as CTAs and Global Macro strategies outperformed and the remaining hedge fund strategies were flat, according to the latest Weekly Brief from Lyxor’s Cross Asset Research team.
CTAs were fuelled by their long equity and energy positions while Global Macro funds benefitted from the stronger USD.
On a negative note, Market Neutral L/S and Special Situations ended the week in the red. On a year to date basis, Event-Driven funds remain the top performers, followed by L/S Equity funds.
Overall, 2017 was a good year for hedge funds which are on track
By Gary Janaway (pictured), Chief Operating Officer, KNEIP – With MiFID II around the corner, now is a good time for asset managers to re-think their approach to distribution.
When MiFID II goes live on 3 January, it will be the first time regulation requires people to be more vigilant about where their funds are being sold, and who they are being sold to.
Traditionally, it would have been more of a paper exercise based on the content of legal contracts between asset management companies and their third party distribution partners.
Asset managers typically signed distribution agreements with a third
The Preqin All-Strategies Hedge Fund benchmark generated incremental gains in November of 0.40 per cent, making this the thirteenth consecutive month of positive returns.
This has helped increase the year-to-date figure to 9.93 per cent, cementing the expectation that it will be the best annual performance for hedge funds since 2013.
Equity strategies enjoyed continued success in November gaining 0.73 per cent and helping to bring the year-to- date return to 13.01 per cent. The strategy is currently on track to potentially doubling its 2016 returns (+7.19 per cent).
JPY-denominated funds outperformed all other major currencies with a
