Trends in Hedge Fund Administration 2008
Hedge funds suffer worst returns for 18 years
Telegraph.co.uk - United Kingdom
The $2,000bn (£1,122bn) global hedge fund industry is experiencing its worst performance in 18 years as a result of the continued credit crisis and wider economic malaise.
London hedge fund quartet featured in Trader Monthly list
Wealth Bulletin - London, England, UK
Four London traders have featured in hedge fund bible Trader Monthly’s list of 30 of the world's top traders under 30, which was published on Tuesday.
Hedge trimmers
Economist - UK
Hedge funds sound great in theory. They aim for returns that are absolute (making money whether markets rise or fall) and uncorrelated with other asset classes. But many investors are put off by the fees: often 2% a year plus a fifth of all profits. That has prompted a search for a cut-rate version of hedge-fund strategies. Most attention has been focused at the macro level - in other words, trying to reproduce the return of overall hedge-fund indices by 'factor replication'. This involves the reverse engineering of hedge-fund returns (such as the performance of the S&P 500 or credit spreads) to see which factors are most important.
Hedge funds: The sting is in the tail
Daily Times - Lahore, Pakistan
Imagine that you are shopping for a high-performance car, but that you are not allowed to look under the hood. What’s inside is a secret. Furthermore, you cannot find out how similar vehicles have performed, because there are none. Finally, the car carries no warranty. The same logic applies to hedge funds
More consolidation and start-ups in hedge fund administration
HedgeWeek - London, UK
Consolidation in the hedge funds administration industry has been picking up pace in the last two years. And even though it has somewhat slowed in the last few months to keep pace with global market conditions, there are signs of further consolidation in the pipeline.
Hedge Funds Are Caught in a Tight Spot
Wall Street Journal - USA
Some of the biggest hedge funds are having their worst years, and the flood of new money going into funds has slowed. That is pressuring an industry bracing for investor withdrawals and worrying about how to survive without lucrative performance fees.
Running a hedge fund loses its allure
International Herald Tribune - France
Running a hedge fund has long been considered one of the top jobs in finance, but this summer a growing number of managers have called it quits, unable or unwilling to keep going in what is turning out to be one of the industry's worst years.
Hedge funds face struggle for survival
Globe and Mail - Canada
Black clouds have been building over the hedge fund industry for much of the year, and a storm could break in coming weeks as investors receive their second set of lousy monthly results from funds that are meant to do well in good markets and bad.
Petrobras, Potash Added to Goldman Top Hedge Fund Holdings
Bloomberg - USA
Petroleo Brasileiro SA, Brazil's state-controlled oil company, and Potash Corp. of Saskatchewan Inc., the world's largest producer of the crop nutrient, were added to Goldman Sachs Group Inc.'s list of the most popular stocks among hedge fund managers.
Curacao rated the best in the world in hedge fund administration
Caribbean Net News - Georgetown, Cayman Islands
For the second year in a row, the Global Custodian Hedge Fund Administration Survey has concluded that Curacao outscores all other mutual fund locations in hedge fund administration.
Why hedge funds may be good for Indian markets
Business Line - Chennai, India
The Draft Report of the Committee on Financial Sector Reforms headed by Professor Raghuram Rajan was issued for comment in April 2008. Among the proposals that the high-level committee made was the introduction of domestic hedge funds. The committee feels that, 'The presence of hedge funds would induce greater competitive pressure for other regulated fund management channels such as mutual funds.'
Small Kresge Foundation Teaches Big Lessons in Investment Strategy
Wall Street Journal - USA
Every year, investors turn to Harvard and Yale in hopes of discovering how these revered endowment funds beat the market. During the credit crunch, they might have been better served studying the lesser-known Kresge Foundation.
Texas Tech considers hedge fund hike
Pensions & Investments - Chicago, IL, USA
Texas Tech University, Lubbock, is considering increasing the $675 million endowment’s current 25% investment in hedge funds, says CIO Gary Ratliff.
Exiting managers cast pall over hedge fund industry
Reuters - USA
Running a hedge fund was long considered the crown jewel in finance but this summer a growing number of managers have called it quits, unable or unwilling to keep going during one of the industry's worst-ever years.
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Ospraie to Close Flagship Hedge Fund After 27% Tumble
New York Times - United States
Ospraie Management LP is shutting its flagship commodity hedge fund after it lost almost 40% this year, according to a letter the firm sent to investors Tuesday.
What Ospraie Taught Us
Wall Street Journal - USA
Ospreys often perform daring dives underwater in their hunt for big fish. They usually resurface, though. Not so the Ospraie Fund, the flagship fund of Ospraie Management, the commodities-focused money manager. Having lost nearly 39% of its value this year - or almost $1.3 billion, with more than half of that in August alone -- the fund is being wound down.
Business big shot: Christopher Hohn
Times Online - UK
Christopher Hohn is the epitome of the term 'publicity-shy'. The 41-year-old hedge fund manager and low-profile philanthropist hardly ever gives interviews, but corporate boards worldwide know exactly who he is. Mr Hohn and The Children's Investment (TCI) Fund, his $15 billion activist hedge fund, crop up whenever they feel that their holdings are underperforming and management needs to be held to account. His force has been felt in boardrooms from Tokyo and New York to Frankfurt.
Hedge fund manager in reverse takeover deal
Telegraph.co.uk - United Kingdom
Philip Richards, the high-profile manager of RAB's Special Situations Fund, has made up to £1m after a company controlled by his hedge fund bought a private company in which he owned a personal stake.
Hedge fund Atticus loses more than $5 billion
Reuters - USA
U.S. activist hedge fund Atticus Capital has lost more than $5 billion this year, a source familiar with the matter told Reuters, after its funds were hit by heavy falls in financial stocks.
Hedge fund to invest $500m into carbon capture
The Financial Standard - Sydney, NSW, Australia
Hedge fund group Och-Ziff is investing $500 million in carbon capture projects to create tradable greenhouse gas reduction abatement securities.
Och-Ziff hedge funds fall slightly in August
MarketWatch - USA
Hedge funds run by Och-Ziff Capital Management Group LLC fell slightly in August, the investment company disclosed on Wednesday.
Premier hires hedge specialist for Dividend fund
ifaonline.co.uk - London, UK
Premier Asset Management has appointed hedge fund specialist Chris Wright who will be responsible for the Premier Dividend fund.
Goldman fund-of-hedge funds July returns down
Reuters - USA
Goldman Sachs Hedge Fund Partners LLC, an investment fund comprised by five other hedge funds, fell in value by 2.6 percent in July, according to a Securities and Exchange Commission filing on Thursday.
Mitsui & Co. Will Close US Hedge Fund Unit as It Shifts Focus
Bloomberg - USA
Mitsui & Co., Japan's second-largest trading company, will close its New York hedge fund business as it shifts to investments including property and utilities.
TriAlpha fund of hedge funds approved for distribution in Singapore
HedgeWeek - London, UK
The five sub funds of TriAlpha Investment Advisors' TriAlpha Alternative Strategy Unit Trust have been approved as restricted recognised schemes for distribution in Singapore.
Big Hedge Fund Atticus Denies Rumors It Is Liquidating
Wall Street Journal - USA
Hedge fund company Atticus Capital denied market rumors it was liquidating its positions and closing down and said it had a large net capital position and was looking for investment opportunities, the Wall Street Journal reported on Thursday.
Halcyon Exec. Forced Out, Fund Faces Large Redemptions
FINalternatives - New York, NY, USA
The vice chairman and chief investment officer of hedge fund Halcyon Asset Management has been forced out. The move reportedly follows major redemptions from institutional investors.
Atticus Capital Defends Itself After Hedge Fund Liquidation Rumor
StreetInsider.com (subscription) - Birmingham, MI, USA
According to reports from the Wall Street Journal, hedge fund Atticus Capital denied rumors it is liquidating. In fact, Atticus founder Tim Barakett told them, "We're certainly not liquidating... we have a large net cash position and are looking for opportunities to invest capital."
Blackstone Hedge Fund Whipsawed by Markets, Report Says
New York Times Blogs - New York, NY, USA
It seems it’s been a wild ride lately for a hedge fund run by the Blackstone Group. The first half of August saw Blackstone’s Kailix fund posting monthly losses of more than 12 percent as of Aug. 15
Hedge fund Platinum to open Asian offices
Asian Investor (subscription) - Hong Kong
Platinum Capital Management, a London-based manager of structured products, funds of hedge funds and single-strategy hedge funds, plans to set up offices in Asia, starting with a desk in Singapore for its investment professionals.
London hedge fund four included in Trader Monthly's top 30 under 30
Telegraph.co.uk - United Kingdom
They are the masters of the universe in training. Hedge fund bible Trader Monthly will today publish its list of 30 of the world's top traders under 30, and four London traders are included.
Carol Alexander Building on the three previous volumes this book provides by far the most comprehensive, rigorous and detailed treatment of market VaR models. It rests on the basic knowledge of financial mathematics and statistics gained from Volume I, of factor models, principal component analysis, statistical models of volatility and correlation and copulas from Volume II and, from Volume III, knowledge of pricing and hedging financial instruments and of mapping portfolios of similar instruments to risk factors. ISBN:9780470997888 - 09-Jan-09 - £60.00 Featured Product
Market-Risk Analysis: Value-at-Risk Models, Volume 4
Asian Investor (subscription) - Hong Kong
The CQS Global Volatility Fund capitalises on equity volatility valuation anomalies within market indices and on market dislocations.
Peak Partners launches a new specialized fund of hedge funds ...
HedgeWeek - London, UK
Leading specialist in alternative investment solutions Peak Partners has launched a new fund of hedge funds focusing on asymmetric return strategies on the 1st of May 2008. For its first three months of operation, the fund returned 1.95% in USD net of fees during very difficult times for most alternative strategies.
A new type of hedge on the beta block
Financial Times - London, England, UK
Hedge fund company AQR, run by a bunch of Goldman Sachs alumni, is planning to offer its clients a passive product.
San Diego Hedge Fund Catches Cleantech Wave
FINalternatives - New York, NY, USA
Viresco International Capital Management is surfing the green wave with the launch of a clean technology fund.
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FiNTAG
Forbes - NY, USA
A hedge fund known for shaking up underperforming companies has increased its stake in Cablevision Systems Corp. to 9.1 percent, according to a regulatory filing Thursday.Harbinger Capital Partners now owns more than 21 million shares of the diversified cable operator, up from nearly 19 million shares
Hexion Spurns Hedge Fund Proposal
Markets Media (press release) - New York, NY, USA
In filings made with the Securities and Exchange Commission this week, a group of hedge funds went public with their offer to rescue the Hexion takeover of rival chemical company Huntsman Corp., but Hexion has already indicated the proposal is a non-starter.
Hedge Funds Step in to Help the Hexion-Huntsman Deal
Wall Street Journal Blogs - New York, NY, USA
If you want something done, do it yourself. Prominent hedge funds are following that mantra and jumping into troubled buyouts to end squabbles that could kill the deals.
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Biden's Son In Fund Suit
HedgeCo.net - West Palm Beach, FL, USA
Hedge fund executive Hunter Biden has had anything but a quiet introduction to his career in finance. The 38-year-old son of Democratic vice presidential candidate Sen. Joe Biden is caught up in several lawsuits regarding the acquisition and operation of Paradigm Companies, an investment firm that operates a fund of funds - a hedge fund that invests in other hedge funds.
Head of Hedge Fund Real Estate Sham Pays the Price
HedgeCo.net - West Palm Beach, FL, USA
A published author and notable hedge fund manager has seen his charade finally come to a halt. Mark Boucher of Portola Valley, California, who wrote 'The Hedge Fund Edge' has agreed to pay $100,000 in penalties after misleading investors in a $20 million real estate scam. In addition to the monetary penalties, he is barred from acting as an investment advisor for the next five years.
'Hedge Fund Edge' Author Fined, Banned For Scam
Hedge Fund Net - New York, NY, USA
The author of the acclaimed book 'The Hedge Fund Edge' misled clientele and must fork over $100,000, the SEC said.
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