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Emerging managers expect their hedge funds to achieve gains of 10% or more in 2012, according to the GAIM USA Survey of Emerging Hedge Fund Managers. The survey of 90 emerging managers (defined as having USD250 million or less in assets under management) found that 61% of the managers expect their portfolios to earn more than 10%, net of fees, while 31% of them expect to earn 15% or more.
GAIM USA, one of the world’s leading organisers of alternative investment conferences, also found that while emerging managers overwhelmingly (81%) cited “raising assets” as their biggest challenge, 40% of said that
BlackRock has made its family of money market funds available to Euroclear Bank’s clients, enabling them to re-invest cash received as collateral in triparty transactions managed by Euroclear Bank. Re-investing cash collateral is a frequent challenge in this type of transaction.
For the first time, a new Euroclear Bank service feature gives triparty cash collateral takers the option to re-invest cash into an array of money market funds seamlessly through FundSettle. FundSettle is Euroclear Bank’s dedicated platform for fund transaction processing. BlackRock is one of the first providers of money market funds for this purpose. The cash re-investment service is
NYSE Euronext and Deutsche Börse AG have submitted revised remedies to the European Commission’s Directorate-General for Competition (DG Competition).
The revisions are designed to reflect the European Commission’s feedback on the initial proposal, and thereby fully address the Commission’s remaining concerns while preserving the industrial and economic logic of the merger.
In summary, the parties have strengthened their original proposal with respect to European single equity derivatives by increasing the assets to be included in the divestiture, and to provide the purchaser of that business with an option to access Eurex Clearing for single equity derivatives products. The parties
Kodak Retirement Income Plan (KRIP) is the seed investor for AlphaEngine Global Investment’s SMART Alpha investment program, an absolute return strategy that focuses on generating strong absolute returns, especially during periods when equity beta and typical absolute return strategies struggle to perform (eg, 2008 and 2011) and when typical corporate pension liabilities rise.
Timothy Barrett, Director, Pension Investments Worldwide at Kodak, says: “KRIP has a long and positive history of implementing innovative investment strategies. As a corporate pension plan, we need strategies that can generate strong returns which truly diversify asset risk, and have a positive correlation to liabilities. The
State Street Global Advisors (SSgA) has appointed Michael Ho to chief investment officer for its active emerging markets equities and global macro capabilities.
Ho, who will be based in Boston, joins SSgA from Mellon Capital Management where he oversaw all investments as chief investment officer, responsible for approximately USD220 billion in assets under management, spanning all investment disciplines including global tactical asset allocation, currency, quantitative equity, active and passive fixed income and index equity strategies. Earlier in his career, Ho was head of research for Global Tactical Asset Allocation and oversaw hedge funds at Mellon Capital where he generated a
The European Commission’s objectives for MiFID II/MiFIR were released in October this year. At the heart of this new regulation is an attempt to bring greater transparency to the OTC markets, with proposed requirements for pre-trade pricing to be shown on a continuous basis and extended reporting of executed trade prices. This is intended to bring a transparent, level playing field to EU financial markets.
Separately, the EMIR (European Market Infrastructure Regulation) legislation is aimed at implementing the 2009 G20 commitment that: “all standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared
The London Metal Exchange (LME) will introduce financially settled swaps for all non-ferrous contracts on 23 January 2012. The average-price contracts are the first of their type to be traded on-exchange in the world and are designed specifically for participants of the physical industry who need to hedge the monthly average price.
“LME swaps will bring transparency to pre- and post-trade prices,” says Chris Evans, Head of Business Development at the LME. “For the first time swaps users will benefit from a regulated market with the same counter-party default risk protection offered by regular futures contracts”.
Tradable on LMEselect
Red Kite, a metals-focused fund groups, has selected Butterfield Fulcrum as the firm’s fund administrator.
After a detailed analysis of Red Kite’s specific needs, Butterfield Fulcrum designed a customised solution to answer the client’s requirements. Teams from both Red Kite and Butterfield Fulcrum worked together to develop a unique bespoke administration process.
Glenn Henderson, CEO of Butterfield Fulcrum, says: “We are extremely pleased to welcome Red Kite as a client. This appointment confirms our commitment to providing customised administration services to asset managers with some of the most complex commodity trading strategies, asset classes and complex fund structures in the
Hedge fund flows as measured by the GlobeOp Capital Movement Index advanced 1.55% in December.
"December closes the year on a positive note with net inflows of 1.55 percent, driven primarily by healthy subscriptions," said Hans Hufschmid (pictured), chief executive officer, GlobeOp Financial Services (LSE:GO.).


The GlobeOp Capital Movement Index represents the monthly net of hedge fund subscriptions and redemptions administered by GlobeOp. This monthly net is divided by the total assets under administration (AuA) for GlobeOp’s fund administration clients.


Cumulatively, the GlobeOp Capital Movement Index for December 2011 stands at 141.01 points, an increase of 1.55 points over November
Hedge fund redemptions in October totalled USD9 billion, more than triple September’s USD2.59 billion outflow, according to figures released by BarclayHedge and TrimTabs Investment Research. Industry assets decreased to USD1.66 trillion in October from USD1.73 trillion in September, the third straight monthly decline.
“Investors seem to have lost patience with lacklustre hedge fund returns,” says Sol Waksman (pictured), founder and President of BarclayHedge. The Barclay Hedge Fund Index did rise 3.5% in October, bouncing back from five straight monthly declines. Assets are at their lowest since January 2010.
For October, the biggest assets losses in terms of per centage were
