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Most of the corporate interest rate derivatives users participating in Greenwich Associates’ most recent Global Interest Rate Derivatives Study believe that new Basel 2.5 and III derivatives regulations in Europe and the United States will result in wider spreads in derivatives markets and ultimately increase their costs of capital.
There is much less consensus that these new margin requirements and revised capital reserve requirements on banks will affect trading practices or hedging strategies.
Overall, a plurality of interest rate derivatives users think the new capital requirements regarding derivatives trading will have little to no impact on current practices, or
UCITS hedge fund assets under management increased in Q1 from EUR113 billion to EUR120 biillion (+6.2%), according to Alix Capital’s latest quarterly research on the industry.
AUM has almost quadrupled in the last three years from just EUR32 billion in June 2009. Around 72% of the increase in Q1 2012 is due to investor inflows, and 28% is due to fund performance.
Alix’s report provides in-depth information on 764 single manager alternative UCITs funds and 76 alternative UCITs fund of funds, covering strategy breakdown, fund and advisor location, liquidity, asset flows, assets under management (AUM) and performance.
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Dexion Capital is planning to list a new investment company, DCG IRIS Limited, on the London Stock Exchange.
DCG IRIS Limited is a proposed new London-listed, closed-end investment company seeking attractive returns from insurance linked strategies (ILS). The IPO is scheduled to close mid June 2012
The Company will access a highly diversified portfolio of catastrophe risks with a target net return of LIBOR +5% to 7% and annual volatility of 2 to 4%, by investing in CS IRIS Low Volatility Plus Fund (the ‘Master Fund’), managed by Credit Suisse.
The Company has an initial dividend target of 5% per
Single-manager hedge funds with greater than USD1 billion under management account for a mere 3.9% of reporting funds, but they control about 60% of the total single-manager hedge fund assets, according to a study conducted by PerTrac.
According to the study, 322 single-manager hedge funds reported having AUMs in excess of USD1 billion in 2011, for a total of USD1.08 trillion in AUM. Despite their dominance, there was only a 1.40% year-over-year increase in the assets of billion-dollar-plus funds in 2011 based on those that reported their results. (Some funds do not report to any database).
“The flight
Momentum trading strategies in foreign exchange markets yield “striking” excess returns of up to 10 per cent a year, according to a new study.
‘Cross-sectional strategies’ – where investors go long or short on a basket of currencies based on their past performance – yield the highest returns, even when accounting for transaction costs.
The findings come from a new study, due to be published in the Journal of Financial Economics, which analysed 48 currencies against the US dollar from 1976 to 2010. The research provides the most comprehensive analysis of momentum risk and returns in currency markets to date.
Jersey will be well positioned to grow its alternative funds business when the Alternative Investment Fund Managers Directive comes into place, according to expert speakers at a conference organised by Jersey Finance in London last week.
An audience of almost 300 fund professionals at Jersey Finance’s London Funds Conference, held at the British Museum last week (18 April), heard that Jersey is in a good position not only to meet stringent international regulations but also to grow its funds business.
The conference featured a heavyweight line-up of finance and legal professionals, with keynote presentations by David Smith, Economics Editor at
PineBridge Investments, the global multi-asset class investment manager, has successfully closed its latest collateralised loan obligation (CLO), Galaxy XII CLO, Ltd.
The issuance was comprised of approximately USD412.5 million of notes and closed on 24 April, 2012. The notes are secured by broadly syndicated first-lien senior secured corporate loans and other corporate notes and bonds, and the entire offering was fully or over-subscribed.
This is the fifteenth CLO that PineBridge has brought to market, taking the firm’s total leveraged finance assets under management to USD7.8 billion.
“The closing of Galaxy XII marks another successful investment and asset raise for PineBridge,
A new hedge fund, MeehanCombs LP, has launched in Greenwich, Connecticut. Its founding partners are Eli Combs, president of the firm, Matt Meehan, CIO and portfolio manager, and Jim Plohg, COO and General Counsel. The firm will focus on investing in global credit opportunities with a particular emphasis on Europe; understandable given the cheap valuations that have arisen out of the ashes of last year’s eurozone crisis.
Combs told Hedgeweek via email that this was not “a hypothetical strategy. It has been proven and tested. Matt Meehan has been investing for 30 years and his nine years’ experience managing Eos’
Global asset managers looking to distribute UCITS funds in Asia should focus their attentions on Hong Kong, Singapore and Taiwan.
Howard B Rubin, CFA, has joined Midwood Capital Management LLC, as chief operating officer and managing member.
Midwood Capital Management LLC, established in 2003, manages Midwood Capital Partners, LP a value-driven, small-cap and micro-cap focused Investment Partnership.
“I am very pleased to be joining David Cohen and Ross DeMont at Midwood Capital Management,” says Rubin. “They have done an excellent job since 2003 of producing attractive returns with modest net exposure and low correlation to traditional market indices. I am looking forward to combining their strong product with my experience in building “institutional-quality” investment firms. I am excited about the
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