Why sign up to the Hedge Funds Standards....

“To be, or not to be: that is the question:
Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune,
Or to take arms against a sea of troubles, And by opposing end them?”

So cried the Prince of Denmark as he, in a troubled state, pondered whether he should take action, or not.

How apt is that short passage from Shakespeare’s Hamlet for today’s Hedge Fund Managers as they collectively ponder whether or not to sign up to and adopt the Hedge Funds Standards Board (“HFSB”) or President’s Working Group (PWG) Best Practice Standards?

The timing of this question could not be more apposite given the tumultuous, even historic, events that have rocked the financial world in the past few weeks. Without question the way the financial services sector goes about its business will change. Politicians on both sides of the Atlantic have voiced both concern and outrage at some of the activities that have contributed to the credit crunch and subsequent liquidity crisis. There have been suggestions that regulation has failed and much commentary in the media as it attempts to point the finger of blame.

Hedge Funds and their managers have attracted scrutiny in all of this and have, as an industry group, suffered some fairly vicious attacks. Some commentary has probably been fair enough, but some has been uneducated and at times darn right wrong. Regrettably, such commentary serves to whip up emotion outside of the sector and with the public at large. The EU is calling for unprecedented disclosure by Hedge Funds and we are already seeing the first of what will probably be increasingly intrusive regulation and legislation.

What are the options of not adopting the Standards?

With all eyes being on the Hedge Fund sector and much criticism, rightly or wrongly, being heaped upon it, if the sector chooses to leave a vacuum and do nothing to address these external concerns, something or someone else will step in to fill the void. In short, if the Standards fail to be adopted voluntarily, the sector may find that the Standards are forced upon them along with a raft of other regulation and perhaps legislation. Given the current political undertones, it is likely that such regulation and/or legislation will be more heavy-handed than is necessary – and there will be little that the hedge fund sector will be able to do about it.....

Source:
http://www.opalesque.com/AMB2008/47323Why_sign_up_to_the_Hedge_Funds.html

Meet the Canadian managers - Scotia Capital.....

Breakfast Blitz on Tuesday, October 21st, 2008, at Sofitel Mayfair, 6 Waterloo Place, London, SW1, between 9.30am and 12pm.

Featuring: Accelerator Capital, HF incubator, Peter Rizakos, President
Presenting:
- Epic Capital Management
- Burlington Capital Management
- Creststreet Asset Management ( past Opalesque exclusive)
- AlphaNorth Asset Management ( past Opalesque exclusive)
- JC Clark Investments
- Roundtable Capital Partners (past Opalesque exclusive)

If you would like to attend, email: Frances_Kinloch@scotiacapital.com.

Scotia Capital presents the International Hedge Funds Forum, Zurich, 22nd October
Wednesday, October 22nd, 2008 at the Hotel Savoy Baur en Ville, Paradeplatz, CH-8022 Zurich, Switzerland. Event open to Investors o......................


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Meet the Canadian managers - Scotia Capital...


Hedge-Funds News:

1. As hedge funds approach an attrition rate...
2. diversified managed futures product Futures Select braves current crisis gaining 2.22% in August...

diversified managed futures product Futures Select braves current crisis gaining 2.22% in August...

The Blue Danube Fund Futures Select produced a positive performance of + 2.22% in August, in direct contrast to recent negative trends and massive declines observed in global stock markets. As of September 25th, 2008, the fund’s YTD performance was approximately + 7.50%, confirming profit expectations. Over the last week, long positions in US-Dollar and bonds earned profits while, in addition, downward trends in the energy and metals sector contributed to the fund’s positive performance. The Futures Select Fund is a Multi-Style-Product consisting of different modules in the Managed Futures sector. The Fund is suitable as a „starter-product” for the Alternative Investments sector due to its moderate risk/reward profile. MERIT director and fund manager Andreas Mayer says, “To succeed in generating a positive performance in the context of today’s difficult investment environment demonstrates a qualitative advantage and confirms our strategy. Also, in the relatively volatile Managed Futures sector, it is possible to manage products conservatively and to succeed in generating attractive performance with single digit volatility and maximum drawdown values.....

Source:
diversified managed futures product Futures Select braves current crisis gaining 2.22% in August...


Hedge-Funds News:

1. Meet the Canadian managers - Scotia Capital...
2. As hedge funds approach an attrition rate...

As hedge funds approach an attrition rate of -7.0% for the full year....

Hedge Fund New York: In the beginning of September Atticus Capital placed its stake of shares in Deutsche Börse into a side pocket in order to protect them from redemptions. Atticus, which has seen its assets under management decrease by half since the beginning of the year is not the only fund facing increased redemptions and looking for ways to keep strategic investments viable during times of fund distress.

Chief Investment Director of GAM’s multimanager business David Smith recently told the Wall Street Journal "I would not be surprised if the hedge-fund industry has net cash outflows for the next few quarters, though I expect the demand for absolute-return products will continue".

Additionally sobering are the statistics released recently by Hedge Fund Research which reported “Throughout the entire hedge fund industry, 240 new funds were started in 2Q 08, while 180 were shut down.”

Opalesque recently spoke with Ingrid Pierce, a partner in Walkers' Corporate and International Finance Department and head of the firm's Commercial Trusts Group about the newest way firms are using side pockets in face of higher levels of investor redemptions. “As a general matter, side pockets have been in use for some time,” Pierce noted. “If the fund documents allow you to acquire certain illiquid securities and place them into a separate side pocket, the investors that have shares in that side pocketed investment are effectively locked up until such time as that investment can be realized. However, when that investment can be realized is a very tricky thing. Especially in this market”

Typically, funds which deal in illiquid securities have detailed the use of side pockets in their offering documents. “In the traditional sense they are quite valuable for both parties,” said Pierce. Side pockets give f......................

Source:
As hedge funds approach an attrition rate of -7.0% for the full year....


Fund of Hedge Funds News:

1. diversified managed futures product Futures Select braves current crisis gaining 2.22% in August
   
2. Meet the Canadian managers - Scotia Capital...
   

Alpha Dialogue Advisors consultancy firm dissolves partnership....

Opalesque recently learned that Somer Hatano and Mami Ogawa-Erber have decided to dissolve the partnership which was formerly Alpha Dialogue Advisors. The firm, which was based in the US sought to bridge the gap between US and European based asset managers and Japanese investors by hosting conferences, forums, and making formal introductions....................

Source:
http://www.opalesque.com/AMB2008/47329Alpha_Dialogue_Advisors_consultancy_firm_dissolves.html

Former Blue Sand MD Jill Meleski takes the lead on Citi Prime Financial US Capital.....

Opalesque has learned that Jill Meleski has joined Citi Prime Finance as Head of Capital Introduction. Meleski, who was previously Managing Director at Blue Sand Securities oversaw the marketing and po......................

Source:
http://www.opalesque.com/AMB2008/47321Former_Blue_Sand_MD_Jill_Meleski_takes.html

Carbon hedge fund bounces back......

With August returns of +4.16% (offshore) and +4.03% (onshore) the Natsource Aeolus II funds have bounced back from a negative July to boost the funds’ returns to +22.24% (offshore) and +17.97% (onshore) YTD.

Natsource Asset Management has approximately $1.4bln in assets under management through several vehicles including the Greenhouse Gas Credit Aggregation Pool, a Carbon Asset Pool, and other private investment vehicles such as the Aeolus Funds which are managed by Michael Intrator, Benjamin Richardson, and Jack Cogen, acquire environmental and renewable energy assets.

A communication to Aeolus investors, which Opalesque was able to secure, revealed the Funds achieved positive returns amidst August’s falling value in the energy commodity sector through its exposures to the Certified Emission Reduction (CER) market.

Natsource’s view for the future of carbon markets
In research authored by Paul Vickers and Phil Gillam and released by Natsource in August 2008, the firm looks ahead to the next steps in the evolution of the carbon markets. The ever-......................

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http://www.opalesque.com/AMB2008/47309Carbon_hedge_fund_bounces_back_in.html

Review of hedge fund launches, closures, trends, regulatory and legal events - week 39

Hedge Fund News London: A roundup of last week’s hedge fund launches, closures, index performance, trends, regulatory, legal and financial events pertaining the alternative investments world.

We heard of new launches from Marc Lasry, Saguenay Capital, Tosca, Jermyn Capital, A to B, Volathon, Investcorp, Duet A. M., Chirin Capital, SGAM AI, Tacticus Capital, Cabal, Carmague, Synergy, Seven Trust, Gruss A.M. and ZCM Capital.

Lahde Capital closed two funds, Powe Capital's Modulus Europe had to be liquidated and French hedge fund ADI was forced to close five of its funds due to Lehman losses.

On the M&A scene, Banque Privee Edmond de Rothschild and Standard Chartered collaborated in alternative investments, Singapore’s Fullerton and China’s Bosera formed an investment partnership and Australian asset manager Select took ownership of an advisory business in New Zealand.

The press reported that the prime brokerage model was questionable, following Lehman’s collapse and Morgan Stanley’s heavy loss of assets; the industry would change as managers were rethinking their exposure and banks were thinking twice about lending against complex securities.

Hedge funds were still struggling with the crisis last week; they adjusted their trading models following the US government's ban on short selling hundreds of financial stocks; they raised cash in the rally, waiting for the bail out; they were seen as scapegoats as long-only managers panicked; Eurekahedge reported that few of them were actually earning performance fees; they continued to be hit by arbitrage disruption, by new regulations, deleveraging and redemptions problems.

Those new regulations, however, forced them to revamp strategies and some concentrated on OTC derivatives; Citigroup reported that hedge funds had moved $600bln into cash and $100bln in simple money market funds. Indeed, some funds found myriad ways to bet on a falling market, such as shorting proxies for the financial sector, shorting bonds, or buying index options. Funds wished for the reinstatement of the ‘uptick’ rule, which is preferable to a complete ban of short-selling.

In the UK, hedge funds defended short-selling with data showing low short-sale volume, as they saw very strong public criticism rising against them.

It was also claimed that the era of the hedge fund was over; that hedge fund managers faced staff defections as bonuses looked shaky and that asset backed securities lured hedge funds.

The financial crisis continued its havoc: although Asian stocks followed Friday’s rallies in the US and European markets (following news of the rescue plan), it was claimed that stock markets were out of sync with the crisis. Last week was focused on the US rescue plan through a $700bln fund to buy toxic assets from financial institutions: Treasury secretary H. Paulson urged a quick, clean rescue legislation, and the Fed’s chairman B. Bernanke argued that global markets were under ‘extraordinary stress’ to encourage the US Congress to vote on the bail-out fund. Congress balked and talks ended in chaos.

High-profiles financiers such as Jack Welch and Buffet approved of the rescue. Pimco’s Gross even offered the Treasury a helping hand. George Soros suggested an alternative, saying acquiring equity would be better and John Paulson said the rescue plan had to make shareholders pay.

Meanwhile, the Fed continued keeping banks afloat as the money market crisis deepened. As did the Bank of England, the European Central Bank and the Swiss National Bank.

The FBI started its investigations into 26 instances of potential fraud at Fannie, Freddie, Lehman and AIG.

Goldman Sachs and Morgan Stanley became regulated, thus becoming bank holding firms, signalling the end of the Wall Street model. Morgan Stanley signed a letter of intent pursuing strategic alliance with Mitsubishi UFJ Financial Group. Buffett......................

Source:
http://www.opalesque.com/AMB2008/47306Review_of_hedge_fund_launches_closures_trends.html

Opalesque Adds Free Daily Real Estate Publication

Hedge Fund News New York, September 29, 2008 -- Opalesque, the world's largest subscription-based publisher on alternative investments, has launched a free, daily publication covering the global real estate markets. The new “Opalesque Real Estate Briefings” follow the popular Opalesque “Briefing” format and offer a quick and complete oversight on real estate, important news related to that sector as well as commentaries and research in 28 detailed categories. The service can be subscribed as daily email newsletter or
by RSS feed at Real Estate Briefing


Sovereign Wealth Funds Pick Up The Pieces, Pension Funds Increase Property Allocation

In the U.S., sales of commercial property in the office sector have fallen by more than 70% since last year. Bank lending has dried up and the securitized market for commercial mortgages is completely frozen. In a recent survey, most real estate experts polled did not expect the market for commercial mortgage-backed securities to return until at least 2011. Meanwhile, prices have fallen over 10%, compared with a 40% fall during the S&L crisis.

On the residential property side, figures from Las Vegas, the poster child of the current real estate woes, reveal an interesting counter-trend. While condo prices were sinking 35%, sales are up 35% from a year earlier, continuing an upswing that has (so far) lasted eight months. According to the Chicago Tribune, local real estate experts attribute this trend to the huge numbers of foreclosures on the market; two-thirds of all sales are bank owned and tend to be cheaper.

The current banking crisis, combined with the problems facing US investors, offer international investors powerful opportunities. Particularly for sovereign wealth funds which have started to pick up the pieces. A survey from law firm DLA Piper suggested that nearly one in five real estate professionals had been involved in deals which included sovereign wealth funds.

Free Daily Updates In 28 Detailed News Categories

In the light of these trends and opportunities, investors, asset managers, bankers, developers, lawyers, agents, property consultants, government & state officials, and other realty service providers have found a new favorite daily read: the new Opalesque Real Estate Briefing.

Compiled by the Opalesque team, the Real Estate Briefings offer daily insights on:

l Commercial and Residential Property Watch
l Diverse and in-depth regional focus on: Americas, Asia Pacific, Europe, Middle East and Africa
l Construction, Green Construction, Developers
l Emerging Trends, Market Moves
l Fund Profiles, REITs, ETFs, IPOs/Stock Market, Private Equity, Performance
l Mortgage
l Legal, Regulatory, M&A
l People
l Research Updates, Analysis and Commentaries

Already 1800 Articles Archived

Almost 1800 real estate related articles and research in 28 detailed news categories can be already retrieved from the Opalesque Real Estate Briefing website: Opalesque Real Estate Briefing


Opalesque's experienced staff monitors the news and global markets carefully to present this essential daily update in the popular Opalesque “Briefing” format. The service can be subscribed as daily email newsletter or by RSS feed.

The Opalesque Real Estate Briefing publication is overseen by Laxman Pai, who is part of Opalesque's Asia team. Laxman has over ten years of professional experience in financial and international journalism and the media industry. He was Executive Editor for India Wealth News and India Investment News and also contributed to global industry publications like Investment & Pensions Asia, The Wealth Net, Financier Worldwide magazine, Global Investing, Asia Risk, International Pension News, Global Pensions etc. His academic credentials include a Bachelor in Science in Physics, Master of Arts in English Literature, Post Graduate Diploma in Journalism and an Honorary Doctorate in Journalism from the Cosmopolitan University, Missouri, USA.

About Opalesque:

In 2003, with the publication of its daily Alternative Market Briefing, Opalesque successfully launched an information revolution in the hedge fund media space: "Opalesque changed the world by bringing transparency where there was opacity and by delivering an accurate professional reporting service." - Nigel Blanchard, Culross. This hybrid financial news service, which combines proprietary industry news stories and filtered third party reports, has been credited by many industry insiders with delivering precise, accurate, and vital information to a notoriously guarded audience.

Each week, Opalesque publications are read by more than 500,000 industry professionals in over 100 countries. Opalesque is the only daily hedge fund publisher which is actually read by the elite managers themselves (http://www.opalesque.com/op_testimonials.html).

About Opalesque Publications:

Alternative Market Briefing is a daily newsletter on the global hedge fund industry, highly praised for its completeness and timely delivery of the most important daily news for professionals dealing with hedge funds. Alternative Market Briefing offers both a quick overview and in-depth coverage. Subscribers can also access the industry’s largest news archive (29,000+ articles) on hedge funds and related topics.

A SQUARE is the first web publication, globally, that is dedicated exclusively to alternative investments. A SQUARE's weekly selections feature unique investment opportunities that bear virtually no correlation to the main stream hedge fund strategies and/or distinguish themselves by virtue of their "alternative" motive – for instance, social or behavioral strategies or those focused on natural resources or sustainable/environment-related investing.

With its "research that reveals" approach, fast facts and investment oriented analysis, A SQUARE offers diversification and complementary ideas for private, high net-worth and institutional investors, pension funds and endowments, portfolio and hedge fund managers.

Technical Research Briefing delivers three times a week a global perspective/overview on all major markets, including equity indices, fixed Income, currencies, and commodities. Opalesque Technical Research is unique compared to most available research which is fundamental in nature and not technically (chart) oriented.

Commodities Briefing is a free, daily publication covering the global commodities markets. The Opalesque Commodities Briefings follow the popular Opalesque “Briefing” format and offer a quick and complete oversight on commodities and commodity-related news and research in 26 detailed categories.

Opalesque Roundtable Series: In an Opalesque Roundtable, some of the leading hedge fund managers (single and multi strategy managers) as well as representatives of the local investor base (institutions, fund of funds, advisers) are united to gain unique insights into the specific idiosyncrasies and developments, as well as the issues and advantages of specific global hedge fund centers.

Through the series, hedge fund investors looking for new talent, a hedge fund interested in diversifying its investor base service providers looking for new clients will all get to know some of the leaders in each hedge fund center and will find invaluable information and intelligence without any travel involved.

For more information, please go to http://www.opalesque.com

Integrated risk consultant Asia Risk hires Steve Bingle as VP.

Strengthening their proposition to financial institutions, integrated risk consultants Asia Risk have appointed Steve Bingle as Vice President. With over 30 years’ experience as a front line banker and management consultant, Steve’s solid background in the finance industry will considerably broaden Asia Risk’s market reach. Steve will take the lead on all enterprise risk management projects connected to the financial sector as well as contributing significantly to work in other sectors. Steve has held partner level positions with organisations such as PwC, AT&T and KPMG. His 16 years consulting experience in the Region covers a number of major banks and blue chip clients across Asia…

Source:
Integrated risk consultant Asia Risk hires Steve Bingle as VP


News-Hedge Fund:
Australian asset manager Select takes ownership of advisory business....
hedge funds approach an attrition rate of -7.0%....
landscape of financial institutions changes...
investment bank Lighthouse Financial Group...

As the landscape of financial institutions changes dramatically....

Reacting to the changing landscape of US financial institutions NY-based investment bank Lighthouse Financial Group and financial services firm Matrix USA have announced a strategic partnership.

In a bid to show the strength of “a more entrepreneurial and nimble approach to financial services and investment banking”, the partnership will be led by Mike Blaustein, President & CEO of Matrix USA (formerly of Lehman Brothers) and Rob Weinstein, Partner, SMD and Head of Institutional Equities at Lighthouse Financial Group (formerly of Bear Stearns) and it will place an additional focus on the basic needs of institutional and professional clients.

“There is definitely an opportunity for a small, nimble firm to focus on efficiently servicing the customer.” Weinstein told Opalesque. “Combining forces enables us to deliver full-service coverage faster and more efficiently.”

The focus on offering service to those hedge funds who were previously clients with the now defunct larger investment houses is clear as the partnership includes attribu......................

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As the landscape of financial institutions changes dramatically....

As hedge funds approach an attrition rate of -7.0%.........

Fund Hedge New York: The wild pendulum swings of the markets and the bursts of extreme illiquidity have made for an anxiety filled approach to quarter end. By September 30th the hedge fund industry will have a clear handle on the dedication of its investors and how many are willing to hang in for what may be a continued wild ride to year end.

According to Hedge Fund Research it will also determine if the industry will remain on track for the liquidation of only approximately 700 funds, or if it will shoot past the 2005 industry record of 850 liquidations.

In any case, it is likely that there are multiple funds either in distress or about to enter a distressed state and at that point when “the noose begins to tighten, funds face the decision of do they pay the redemptions or take more drastic steps,” Ingrid Pierce, a partner in Walkers' Corporate and International Finance Department and head of the firm's Commercial Trusts Group told Opalesque.

Asking launching managers to plan for their possible future liquidation is akin to asking a spouse to consider a pre-marital agreement
“Throughout the entire hedge fund industry, 240 new funds were started in 2Q 08, while 180 were shut down.” (Hedge Fund Research) Those are sobering numbers for launching managers, and can serve as the cautionary tales for those managers at the pre-launch stage as well as those who already manage funds.

“There are ways of coming back from being a distressed fund,” notes Pierce, “but they are not attractive ways and they can sometimes cause a fund to go into real distress because investors lose confidence and they are not going to reinvest capital.” It is during the initial asset raising period that managers are very likely to make the decisions which will affect their ability to return from a point of distress back to being a stable fund.

Side letters and share classes…
Fund documents should allow the managers to impose gates, impose or extend lock up periods and determine when redemption requests are significant enough that investors need to redeem assets slowly and over a period of time. Experience has taught many fund managers that the competitive edge provided by these flexibilities often can mean the difference between survival and liquidation and so they largely incorporate these restrictions into their offering documents.

However, as the hedge fund industry has grown more sophisticated so too has the investor base. Side letters requested by potential investors which seek to sec......................

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As hedge funds approach an attrition rate of -7.0%.........


News in Hedge Funds:
Australian asset manager...
Currency fund managers...
As the landscape of financial institutions changes dramatically...

KPMG`s hedge fund back....

PCE recently commissioned KPMG to interview a number of hedge fund COOs in London and produce a report documenting their back and middle office commitments, primarily providing a breakdown of the costs of running a fund busi......................

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Hedge Fund News

Cabal Capital Management....

Cabal Capital Management, LLC has announced plans to launch a $1BB Special Opportunity Fund aimed at alternative investment opportunities into low risk, very high financial return Advanced High Income Generation Projects through direct investments.

The managers said: “We will invest in both strategic and tactical investment opportunities into Real Project(s) producing real product(s) that are being sold directly into vital high demand “Major” Universal Demand Markets. This will allow accredited investors the ability to achieve capital growth while providing them a low risk opportunity to benefit from the long term growth of these projects which are designed to last 40 to 50 years or longer for their life cycles regardless of the financial and credit markets.

The fund is well positioned to effectively tap into these markets to the benefits of our investors. The growth dynamics of the United States and Western Europe is based upon local, regional and domestic consumption of all the products these projects produce. The fund is targeting routine annual double digit returns in the high teens (un-correlated to all securities, commodities and currencies markets) to investors. All project investments within this special investment vehicle have been specifically developed and designed to perform across various business cycles.

The global credit crisis, current stock market contraction and wild swings i......................

Source:
Cabal Capital Management....

Morgan Stanley alumni....

Hedge Funds New York: Morgan Stanley alumni Andrey Krakovsky and Anil Babbar will launch The Tacticus Opportunity Fund in January 2009 and are targeting launch assets of $100m.

The second century Roman military philosopher Aelianus Tacticus wrote extensively on the war tactics used by the Ancient Greeks. The most valuable of Tacticus’ studies focused on drills and were attributed to helping the military leaders of the 16th century bridge the gap from the earlier semi-feudal systems of patchwork militaries to the modern, cohesive fighting force.

While the current financial markets are rife with opportunity, launching any strategy with the hope of participating in this opportunity requires military precision in strategic and tactical planning. After speaking with Krakovsky it is apparent that the partners chose the name Tacticus Capital with the utmost respect to both the aggressiveness of the markets and the scholarship of this tactical philosophy.

Launching into a rapid evolving industry
The hedge fund industry is going to look completely different in a year, Krakovsky told Opalesque, and the markets will have weeded out those managers who provide alpha and those who do not. Krakovsky, who began his career as a physicist, before becoming a trader of US corporate credit, emerging markets credit, and asset backed mortgages at Morgan Stanley and then Highland Financial (where he was the principal trader of the HFH Short Plus Fund), sees the overlay of tactics on top of fund strategy as the driver of this alpha.

Krakovsky sees as much change within the credit strategies as he does for the entire hedge fund industry. “There will be a new wa......................

Source:
Morgan Stanley alumni....

The Quants are back – We should still invest in HFs for the persistent benefits....

Hedge Fund News London, reports on yesterday’s Terrapinn conference on quantitative investments, QuantInvest.

Pitfalls in quantitative modelling according to S&P
Mitch Abeyta, managing director of Standard & Poors, said that quants did not use daily data 20 years ago. Today 76 percentage of company reports preliminary information – and all of this impact lagging assumptions.

Quarterly reporting lag for S&P500 companies in 1998 took 32 days, 60 days for annual reports. This year, it takes 22 days for quarterly reports, 45 for annual reports. 45 days was aggressive 20 years ago but it is getting better.

S&P found that conservative lagging leads to look behind bias and aggressive lagging leads look ahead bias although some months are more problematic.

He recommended the use of filing dates when possible, “it is clearly much better than making an estimate.” He observed that 4th quarter lags are greater than the other three, and that preliminary lags are increasing due to the increasing amount of information being recorded. But final lags are decreasing.

Estimated lags have some error built into them.

As for the restatements to data, companies who change (accounting, etc.) are very good short candidates. Between 1988 and 2008, 53% of the companies changed 2 to 6% of their data, and 5.8% changed more than 13%.

Alternative beta
“That hedge funds produce alpha is a widely held belief,” said Lars Jaeger, partner at Partners Group. But they have been trading in the most efficient markets.

There are different types of beta:
1. Traditional beta (exposure to equity markets, interest rates, credit risk, emerging markets). It does not take much to extract those betas.
2. Alternative beta (style factors, event risk, volatility, risk of commercial hedgers in futures markets, liquidity risk, spread risk). One needs various techniques (shorting, leverage, derivatives) to extract alternative beta. “This is pretty much what defines a hedge fund,” he said.

Source:
invest in HFs for the persistent benefits - alternative risk premium | QuantInvest conference...

Hedge fund replicators as liquidity boosters for funds...

Hedge Fund New York: With the hedge fund industry facing the full throes of market illiquidity, jittery investors, and increased redemptions, Jordan Drachman, PhD, and a Director in Credit Suisse's Alternative Beta Strategies spoke to the attendees at the 2008 The Hedge Fund Replication & Alternative Beta Conference about the illiquidity buffer which replicators may provide fund-of-hedge funds when utilized as part of a cash management strategy.

Credit Suisse launched its first Alternative Index Replication (AIR) Strategy in March 2008 with two indices: Long/Short Equity and Inverse Long/Short Equity. The Indices are valued daily. The portfolios are constructed via a quantitative algorithm that analyzes hedge fund index returns through a three step process which includes: a base stage to identify broad equity themes, a style stage which identifies those returns attributed to dynamic style trades, and a rotation stage which identifies returns attributed to industry sector exposures...

Source:
Hedge fund replicators as liquidity boosters for funds...

News in Hedge Funds:

1. Phoenix Fund Serivces...
2. Prime Minister of Georgia`s economics...
3. The Quants are back....

The Quants are back....

Yesterday's Terrapinn conference on quantitative investments in London, QuantInvest (details), was full, indicating a strong interest in this analytical style that seems to have fallen from favour since last summer.

The quantitative analysis technique seeks to understand behaviour by using complex mathematical and statistical modelling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.

Illustrating some of the thoughts that flied around, a quant researcher told Opalesque that now was the time to invest as the 12-month momentum, which started in August last year, had just finished. "Investors have shied away from stocks but now want to enhance and add more factors to the quant processes - although they don't want to change directions - against defaults of all sorts, as the credit crisis will affect everything, including industrials and consumers," he added. "Managers now want to know how to reduce the risk of sharp defaults."

Quant investing after the credit crisis: will it ever be the same again?
Tim Wong, CEO at AHL, said that the benefits of quantitative (quant) investments were an objective and disciplined investment approach; a transparent and repeatable process; the ability to process a greater amount of information; better risk management and diversification; low correlation with fund strategies ("although there is more of it with long bias funds").

The impact of August 2007 on quantitative management included a lack of liquidity in fixed income products; multi-strategy funds' liquidations of equities to cover losses and margin calls; market neutral portfolios' rapid deleveraging driven by margin calls and volatility.

The factors which underperformed at the same time were value (value investing is the strategy of selecting stocks that trade for less than their intrinsic values) and momentum (the rate of acceleration of a security's price or volume), which are popular among quant managers and simultaneously yielded negative returns in July and August. "This sort of things happens now and then," he added. "But why did it happen in August?"

The excessive leverage exacerbated the sell-off and more highly leveraged funds became forced sellers in August and consequently missed out on the recovery.

Source:
The Quants are back....


News in Hedge Fund:

1. Hedge fund replicators as liquidity boosters for funds....
2. Phoenix Fund Serivces...
3. Prime Minister of Georgia`s economics...

German regulator BaFin temporarily bans short selling of eleven financial stocks....

The German Federal Financial Supervisory Authority (BaFin) on Friday temporarily prohibited short sales (transactions resulting in a short position) of shares of the following companies from the financial sector:

AAREAL BANK AG
ALLIANZ SE
AMB GENERALI HOLDING AG
COMMERZBANK AG
DEUTSCHE BANK AG
DEUTSCHE BÖRSE AG
DEUTSCHE POSTBANK AG
HANNOVER RÜCKVERSICHERUNG AG
HYPO REAL ESTATE HOLDING AG
MLP AG
MÜNCHENER RÜCKVERSICHERUNGS-GESELLSCHAFT AG

The ban will apply from 20 September 2008, 00.00 hrs., to 31 December 2008, 24.00 hrs, but will be reviewed on an ongoing basis.

BaFin justified this move by the recent developments......................

Source:
German regulator BaFin temporarily bans short selling of eleven financial stocks....


Recent Hedge Fund News:

1. Austrian regulator FMA...
2. French regulator bans...
3. Merkel criticizes London and Washington..

Marquee Capital Entertainment Memorabilia Fund....

Hedge Fund New York: In a world obsessed with pop culture, where more people arguably know the name of Madonna's children than the names of the last two United States Secretaries of the Treasury, the market for entertainment memorabilia is one that has proven to be uncorrelated to the larger financial markets and which continues to grow at a rapid pace in both size and value. A publicity postcard which measures 4 inches by 5 inches, released by Parlophone records and signed in red ink by all four Beatles recently sold at auction for $10,000. On June 16th of this year a pearl-gray 1050's wool sweater with short sleeves, collar and three buttons at the neck - which had been estimated to bring $600 sold for $6,000.

Looking to capitalize on the upward trends in this industry is Marquee Capital Growth Partners which has spent the past two years compiling a portfolio of 350 items of entertainment memorabilia assets will launch The Marquee Capital Entertainment Memorabilia Fund in February 2009. We spoke with Marquee Partner Amal Srivastava about the intricacies of investing in this market and the structuring of the Fund.

An iconic strategy
The assets compiled by Marquee Capital prior to the February 2009 launch of the investor accessible fund are approximately 80% represented by Madonna focused memorabilia. The Marquee value of this entertainment icon's name is such that the managers feel Madonna's celebrity is almost unmatched, and therefore a major goal of the portfolio will be to acquire significant stakes of Madonna memorabilia which exists in the markets. For investment purposes, such focus on a single icon serves its purpose in the ability to increase the value of assets by using publicity and events around which to create a buzz of interest. For example, in conjunction with the launch of the fund, Marquee Capital has organized the first Madonna centered gallery exhibition which will be held in London. The event, which is still five months away has garnered interest and been covered by the media across a multitude of industries including memorabilia, fashion, music and finance....

Source:
Marquee Capital Entertainment Memorabilia Fund....

Recent Hedge Fund News:

1. Austrian regulator FMA...
2. French regulator bans...
3. Merkel criticizes London and Washington..
4. German regulator, BaFin...

Swiss Federal Banking Commission......

In consideration of the current financial environment, the Swiss Federal Banking Commission (SFBC) points out that naked short sales are not permitted and are not compatible with the requirements of the SFBC-Code of Conduct for Securities Markets, in particular when used to distort or manipulate the market. …

The Swiss Federal Banking Commission also informs market participants that spreading misleading rumours and incorrect information is abusive and will in no way be tolerated. ... The SFBC reminds all market participants to rigorously comply with the supervisory regulation in particular with the Code of Conduct for Securities Markets.

Cedar hedge fund backs ban as temporary `circuit breaker`
From Bloomberg.com: Cedar Partners Investment Management Ltd. is one of the hedge funds supporting the ban on short selling -- as long as it's a temporary ``circuit breaker'' -- after this week's bankruptcy of Lehman Brothers Holdings Inc.

``Extraordinary times call for extraordinary measures,'' said Philippe Bonnefoy, chairman of Geneva-based Cedar Partners, in an interview today. ``The markets were completely disorderly. This will take away the counterparty risk drama that we had.''..

Opalesque note: The FSA has published a list of certain companies to which the prohibition applies called ‘FSA amended list, as at 19 September 2008, of UK incorporated banks and insurers in connection with SHORT SELLING (NO 2) INSTRUMENT 2008’

UK FSA seeks Bradford & Bingley `white knights`
From FTAlphaville: The UK’s financial regulator is thought to have sounded out potential “white knights” for Bradford & Bingley as part of its contingency planning in the event that Britain’s biggest buy-to-let lender is buffeted by further market turmoil. The UK’s FSA watchdog body is thought to have dusted off back-up plans on B&B after Lloyds TSB, the UK’s fourth largest ba......................

Source:
Swiss Federal Banking Commission...

Top Hedge Fund News:

1. Asset Manager Corazon Capital sets up an office in Geneva...
2. Capital adequacy....
3. Review of Hedge Fund Launches..
4. Bans on short selling ripple through the global markets...

Bans on short selling ripple through the global markets...

Hedge Funds News New York: The ripple effect of the initial US and UK bans on short selling of financial stocks rippled through markets around the globe this weekend:

• Taiwan’s financial regulator placed a ban on the short-selling of 150 stocks for 2 weeks starting September 22
  
• Dutch Finance Minister announced he has banned “naked” short selling of stock in financial institutions for the next three months to increase the stability of financial markets
  
• Australian Securities and Investments Commission expanded a curb announced last week outlawing “naked” short sales and now includes a ban on the more traditional form of “covered” short selling of all traded stocks
  
• 
  

US reactions
While the industry reacted positively to the US government’s actions to stem the panic which raced through the markets during the week, the ban on short selling of financial stocks has raised serious concerns. A review of the statements issued by various financial associations and companies has revealed that the SEC’s attempts to curb market manipulation were widely applauded. However, there are many pieces of the emergency order that will effectively tie the hands of the hedge fund industry, which has been an important source of market liquidity throughout the credit crunch of the past year.

Both The Security Traders Association of New York (STANY) and the Managed Funds Association (MFA) decried the requ......................

Source:
Bans on short selling ripple through the global markets...


News in Hedge Funds:

1. Swiss Federal Banking Commission...
2. Asset Manager Corazon Capital sets up an office in Geneva...
3. Capital adequacy....
4. Review of Hedge Fund Launches..

Review of hedge fund launches...

Opalesque London: A roundup of last week’s hedge fund launches, closures, index performance, trends, regulatory, legal and financial events pertaining the alternative investments world.

We heard of new launches from Front Street, Samena Capital, Credit Agricole A.M., Crystal Ocean, Tai Tam Capital, Pappajohn, Thames River, DragonBack Capital, Harvest Volatility, Shen Yi Financial Advisors, ARCH Africa and Land & Buildings.

Lehman`s LibertyView closed its master fund and Toronto’s Lionhart froze redemptions on two ailing hedge funds. HFR reported that the first half of 2008 saw 350 hedge fund liquidations (up 15%) and that the second quarter of 2008 saw 180 liquidations and 240 launches. Risk Analytics’ VP commented: “We are going to see five hedge funds fail for every bank.”

The Credit Suisse/Tremont, Eurekahedge, Barclay, Scotia, EDHEC hedge fund indices posted negative performances for August but the Barclay CTA Index was up 0.11%.

The press reported on the following trends: Desperate companies were turning to ‘usurious’ hedge funds; hedge funds were growing more wary of short financials bet; their cash holdings might be at all-time high (at 30%). Kass commented that this was a time to watch and not a time to play. And universal banks were set to dominate investment banking following the mergers.

On the M&A scene, global asset manager Rock Creek Group took strategic stakes in alternatives manager Evolution Capital Management.

Hedge funds were knee-deep in the credit crisis last week as they were dealt another blow by the financial institutions’ failures, although many published press releases saying they had no exposure either to Lehman or to AIG. Some targeted UK’s Halifax and HBOS as shares crashed. Many reassessed their prime broker risk (and shifted from Lehman and Morgan Stanley to operations housed in large commercial banks) as those that stayed with Lehman faced possible losses. It was said that the Lehman / Merrill woe would be great news for big hedge funds but not so good for small hedge funds and that PE and hedge funds groups may end up taking Wall Street’s place. The hedge fund market was put in doubt as they were going through the vicious circle of rarefied funding, less leverage, safer strategies, and high cash positions. A commentator asked: “Why aren’t hedge funds failing as fast as banks?”

Things settled at Frannie and Freddie; the ISDA said it would compile a list of their deliverable obligations to facilitate a smooth settlement.

It was one of the worst weeks in years for the biggest financial institutions, as the credit crisis continued its ravages: Stocks plunged on Monday, so much it was claimed to be the biggest one-day decline since 9/11. The U.S. Fed announced several initiatives to provide additional support to financial markets; left the rates unchanged, and finally announced a $180bln cash flood to fight the crisis.

A group of banks set up a $70bln liquidity fund as lending among banks froze and central banks put more cash into market. Banks borrowed an average of $48bln from the Fed and we heard of a possible agreement to create giant a U.S. government-sponsored vehicle to take on toxic assets in financial system. “Just Resolution Trust Corporation (RTC) in 1989,” said an industry insider to Opalesque. “And that turned out to be a good plan, as it helped the market and eventually made profit.”

Washington Mutual`s rating was cut to junk and the shares went down 27%. Five banks explored its records, and Citigroup said it was unlikely to proceed with the WaMu deal.

Bank of America announced a stake into Merrill Lynch to gain the brokerage arm for $50bln and Lloyds rescued HBOS in $22bln deal sanctioned by UK PM Brown. Moody`s increased its projections for mortgage losses to 22%.

The “last men standing”, Goldman Sachs and Morgan Stanley faced questions; their profits fell but beat expectations. Early in the week, Morgan Stanley was in talks with Wachovia for a $44bln merger, and then in talks to sell a CIC stake. Reports suggested HSBC might buy Morgan Stanley. So this week, we might know who will buy what.

Lehman filed for bankruptcy on Monday. H. Paulson confirmed there would be no government funds for Lehman. Credit-default risk soared after that. Lehman`s ou......................

Source:
Review of Hedge Fund Launches..

Best Hedge-Fund News:

1. Bans on short selling ripple through the global markets...
2. Swiss Federal Banking Commission...
3. Asset Manager Corazon Capital sets up an office in Geneva...
4. Capital adequacy....

Gibraltar hedge fund industry.....

The hedge fund industry in Gibraltar has grown significantly over the last couple of years. Gibraltar, which is part of the EU, has staked its claim as an efficient hedge fund centre that is open for business. It operates within a regulated context a fund regime that is in tune with the requirements of the modern hedge funds industry and is not only attractive as domicile and servicing centre for alternative funds but could also lead to hedge fund managers choosing Gibraltar as a base for their operations.

History
Gibraltar has provided international financial services for over 35 years and has developed an excellent infrastructure, including all the conditions necessary to support international business of all types. Gibraltar joined the European Union in 1973 by virtue of the UK’s accession to the EU under the provisions of Article 299 Section 4 (ex-Section 227) of the Treaty establishing the European Community; the cited rule extends the provisions of the Treaty to those “European territories for whose external relations a Member State is responsible.” As an EU jurisdiction, relevant EU directives are transposed into local law by the Gibraltar parliament. Gibraltar enjoys passporting rights in financial services in the fields of banking, insurance and investment services. Due to the EU-status Gibraltar politically distinguishes from Jersey, Guernsey, or the Isle of Man, for which, by virtue of Article 299 Section 6 lit c) of the Treaty, that status of membership to the European Union does not apply.

Legal system
The legal system is based on English common law. However, Gibraltar can enact laws independent from the UK. A wide range of funds can be established in Gibraltar under the Financial Services Ordinance for the control of investment business. Opportunities exist for retail schemes and more specialised niche funds; attractive and flexible legislation enables the fund industry to establish a) Experienced Investor Funds (EIF) specially designed for hedge funds, private equity funds and property funds, b) UCITS-funds (investment funds established and authorised in conformity with the requirements of EU-Directive 85/611/EEC), c) non-UCITS retail funds and d) private schemes....

Source:
Gibraltar hedge fund industry....

News in Hedge Funds:

1. Timely examination of macro context at Russia and CIS hedge funds conference
2. Creststreet Global Energy Opportunities Fund -10.54% in August
3. Systematic macro hedge fund...
4. Potomac Portfolios...
5. Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...

Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...

Diversus Investment Advisers, an independent fund placement and advisory firm, today announced the opening of the Hong Kong office and the appointment of Mr. Vincent Pun as a principal.

Mr. Pun will be responsible for Diversus’ newly opened office in Hong Kong and will focus on fund origination, screening, due diligence as well as institutional investor and manager research across private equity, venture capital and hedge fund sectors in the Asia Pacific region, with coverage on the Gulf, Europe and North America…

Source:
Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...


News in Hedge Fund:

1. Gibraltar hedge fund industry....
2. Timely examination of macro context at Russia and CIS hedge funds conference
3. Creststreet Global Energy Opportunities Fund -10.54% in August
4. Systematic macro hedge fund...
5. Potomac Portfolios...

For Potomac Portfolios, global managed futures and FX strategies....

Potomac Portfolios LLC released recent performance yesterday, noting that in spite of the massive volatility triggered recently by the consecutive and unimaginable failures of Bear Sterns, Fannie May and Freddie Mac, Lehman Brothers, Merrill Lynch, and now AIG, that business was proceeding as usual at the Potomac Fund. “What’s all the fuss about,” said Thomas Lott, Potomac’s President. “Performance is mildly up this week; this is just a non-event here,” he said.

While market volatility surges to peaks not seen since July 2002, volatility at Potomac approached historic lows this week. “It’s all about massive diversification,” Lott said. The Potomac Fund, a FOF launched in July 2006 allocating exclusively to global managed futures and FX strategies, is diversified across a broad range of trading approaches, long and short, in virtually every sector and liquid instrument around the globe. “At the close of business yesterday,” said Lott, “Potomac was invested in a total of 85 instruments (52 to the long side and 33 to the short side) among currencies, commodities, fixed income and equities, for a total of thousands of tiny individual positions when parsed by all of their different characteristics…

Plus, the Potoma......................

Source:
Potomac Portfolios...


Recent Hedge Fund News:

1. Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...
2. Gibraltar hedge fund industry....
3. Timely examination of macro context at Russia and CIS hedge funds conference
4. Creststreet Global Energy Opportunities Fund -10.54% in August
5. Systematic macro hedge fund...

Systematic macro hedge fund.....

Kraus Partner Investment Solutions Ltd. (KIS) has successfully been managing a single hedge fund in form of a managed account. The systematic macro strategy has now been transferred to a Luxemburg SICAV-SIF structure. The strategy has achieved an excellent track record during the difficult period of these last quarters (10.4% YTD), most notably thanks to its emphasis on avoiding tails risks in all trading positions entered.

In order to establish the proof of concept, altea Global One was traded as a managed account seeded by a strategic partner since December 31, 2006. After more than 18 months of successful track record, it was transferr......................

Source:
Systematic macro hedge fund...

Hedge-Funds News:

1. Potomac Portfolios...
2. Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...
3. Gibraltar hedge fund industry....
4. Timely examination of macro context at Russia and CIS hedge funds conference
5. Creststreet Global Energy Opportunities Fund -10.54% in August

Creststreet Global Energy Opportunities Fund......

The fund continues to post return of 60% over the past year. The Creststreet Custom Index was down 2.76% for the month.

During the month, broad capital markets continued to experience significant volatility on continued concern that global economic conditions are deteriorating and low liquidity as investors increased cash positions.

While the fund is down this month, the fund continues to be up by over 35% year-to-date in 2008, demonstrating Creststreet’s ability to navigate these volatile markets in search of opportunities that will provide positive returns despite the difficult markets that have persisted for most of this year.

Creststreet Global Energy Opportunities Fund Inc. (“CGEOF”) seeks to provide shareholders with long-term capital growth by employing fundamental securities selection by taking both long and short investment positions in equity, debt and derivative securities and through strategic trading. CGEOF’s portfolio will consist primarily of securities of issuers engaged in the global energy sector....

Source:
Creststreet Global Energy Opportunities Fund -10.54% in August


Hedge Funds-News:

1. Systematic macro hedge fund...
2. Potomac Portfolios...
3. Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...
4. Gibraltar hedge fund industry....
5. Timely examination of macro context at Russia and CIS hedge funds conference

Timely examination of macro context at Russia and CIS hedge funds conference

Fund Hedge London: The Russian Stock Exchange slumped 11% in trading on Tuesday 15th September 2008, and Russia's Federal Service for Financial Markets halted trading after dramatic early falls in Wednesday trading.

Yesterday (Thursday), the country ordered its main stock exchanges closed for another day, according to CNN. President Medvedev pledged a 500bln rubble ($20m) injection into financial markets to restore confidence in the economy – but not all is bad as the government has a huge cash reserve. Russian banks are also tightening their liquidity (Source: CNN).

The Russian stock market is reopening today (Friday).

The whole experience has proved that Russia is not immune from the ills that afflict other markets, reported the BBC. Oil prices, which are now falling, have also taken their toll. "We have sufficient reserves and a strong economy, which guarantees the avoidance of any shocks," President Dmitry Medvedev told a televised meeting of top officials in the Kremlin on Thursday.

Analysts estimate that $36bln in foreign investment has left Russia since early August, the Reuters news agency said earlier this week. Aside from global problems, and falling oil prices, there is another factor: politics. Russia's military conflict with neighbouring Georgia, the battle over the oil company TNK-BP and Prime Minister Vladimir Putin's criticism of the mining company Mechel - which resulted in a massive fall in its share price - have all made some investors decide it is time to leave Russia (Source: BBC).

So at yesterday’s Jetfin conference on Russia and CIS hedge funds (details here), attendees were more interested in the macro-economics of the region than in particular funds. And the speakers obliged.

The keynote of the conference was that of a negative outlook in the short term and a positive one in the long term. Someone said that the dirty secret among managers at the conference was that they were all facing heavy withdrawals from investors; “lots of funds will blow up before the end of the crisis.” Another manager said his Russia fund had just lost 25%. He added resignedly, “this is part of the game.”

As a reminder, here is a list of the former soviet republics (Source: TIME):

- The Baltics (North-West border of Russia) include Estovia, Latvia and Lithuania.
- Eastern Europe (West border of Russia) includes Belarus, Ukraine, Moldovia.
- The Caucasus (South-West) includes Georgia, Armenia and Azerbaijan.
- Central Asia (South) includes Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan and Tajikistan.

The Commonwealth of Independent States (CIS), led by Russia, includes all of the above countries apart from the Baltic states, which are seeking strategic affiliation with the European Union.....

Source:
Timely examination of macro context at Russia and CIS hedge funds conference


News in Hedge Fund:

1. Creststreet Global Energy Opportunities Fund -10.54% in August
2. Systematic macro hedge fund...
3. Potomac Portfolios...
4. Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...
5. Gibraltar hedge fund industry....

Roubini says it is going to get uglier...

currently in Greenwich, Connecticut: We may not be through the current crisis, according to most keynote speakers at the Global Alpha Forum held this week in Greenwich, Connecticut. Before taking a look at these latest doomsday views, let's step back for a moment and applaud two nonconformists who already in 2007 had the brains and the courage to point to the problems which are still unfolding.

Hedge fund manager David Einhorn and economist Nouriel Roubini saw it coming...and Opalesque relayed their message to you...on time: On December 5th 2007, Opalesque reported that David Einhorn, founder of Greenlight Capital, presented his pessimistic analysis on Lehman Brothers at the Value Investing Congress the week before.

According to this Source, Einhorn explained at that conference that FAS 159 underpins his short thesis on Lehman. He went on to show that he believes the majority of Lehman’s earnings in 2007 have been derived from credit spreads widening and the effects of FAS 159. One perverse aspect of this is that as your company’s credit deteriorates, compensation bonus pools tied to earnings become fatter and you are essentially incented to report these fictitious earnings.

In his piece "The Rising Risk of a Systemic Financial Meltdown: The Twelve Steps to Financial Disaster", originally published on Feb. 5th 2008 (and carried on Opalesque a week later), Nouriel Roubini took an even more battering view.

More then five weeks before the Bear Stearns debacle, Roubini predicted - as Step 9 of the meltdown - that "one or two large and systemically important broker dealers" will "go belly up" and that other members of the "shadow financial system" - i.e. non-bank financial institutions that look like banks in terms of liquidity/rollover risk - will also go bankrupt....

Source:
Roubini says it is going to get uglier...

News in Hedge Funds:

1. Timely examination of macro context at Russia and CIS hedge funds conference
2. Creststreet Global Energy Opportunities Fund -10.54% in August
3. Systematic macro hedge fund...
4. Potomac Portfolios...
5. Diversus Investment Advisors opens Hong Kong office and appoints Vincent Pun...
6. Gibraltar hedge fund industry....

Currency risk manager Cambridge Strategy picks up Australian alpha mandate

The active currency risk manager, London-based Cambridge Strategy, has secured its first alpha mandate in the Australian market. But Cambridge Strategy's successful foray into the market is hardly surprising - three of the principals of this boutique firm are either Australian or have worked here.

Chief executive officer Peter Henricks and Director of Marketing Derek Doupe are Australian born and educated, while executive chairman Edward Baker has been a long-time visitor to these shores and is familiar with the corporate culture.

Henricks says it is Cambridge's speci......................

Source:
Currency risk manager Cambridge Strategy picks up Australian alpha mandate

Hedge Fund-News:

1. Hedge funds managers hunker down at Global Alpha Forum.....
2. Pangolin Asia Fund down 5.87% in August

Pangolin Asia Fund down 5.87% in August...

As of the 29th of August 2008, the NAV of the Class A shares of the Pangolin Asia Fund was US$124.8 net of all fees and expenses, down 5.87% from US$132.58 in July.

At the end of August the fund was almost fully invested, with the split being approximately as follows: Indonesia - 50%, Malaysia - 34%, Singapore - 16%.

Pangolin's James Hay commented: "Every time I check Indonesia seems to have dropped another 4%. The JCI has now fallen by about 20% in the past two weeks alone. Indonesia's stock market had been driven by the commodities boom and many resource based stocks had risen......................

Source:
Pangolin Asia Fund down 5.87% in August


Hedge Funds-News:

1. Currency risk manager Cambridge Strategy picks up Australian alpha mandate
2. Hedge funds managers hunker down at Global Alpha Forum.....

Hedge funds managers hunker down at Global Alpha Forum.....

Fund Hedge New York: "We're thrilled with such tremendous turnout," commented Bruce McGuire, Founder of the Connecticut Hedge Fund Association (CHFA) and Co-Chair of the Global Alpha Forum which was held September 16th and 17th. For the second day in a row, as the markets bandied up and down, with the Dow, Nasdaq, and S&P 500 finally finishing the day down between -4.06% and 4.94%, hedge fund managers and investors hunkered down together in Greenwich, Connecticut.

"Investors are jittery," was the remark from one manager, returning to the table during lunch, his blackberry gripped firmly in hand. A brief discussion amongst colleagues then covered news of the 2nd day of halted trading in the Russian markets and the drop of the Brazil Real.

Although the crowds around monitors at sponsor Bloomberg's booth made it clear that managers were itching to be in front of their "screens", much of the draw for opting instead to attend the two day conference in the midst of the financial market turmoil was the chance to gauge the reactions and outlooks of colleagues. Also deemed too timely to miss were the presciently scheduled panel discussion......................

Source:
Hedge funds managers hunker down at Global Alpha Forum.....


Hedge Fund-News:

1. Pangolin Asia Fund down 5.87% in August
2. Currency risk manager Cambridge Strategy picks up Australian alpha mandate

EIP relocates in Hong Kong.....

Enhanced Investment Products Ltd (EIP), a Hong Kong-based asset management firm, strengthens its operations as it relocates its head office to the heart of the business district - 8 Wyndham Street, Central, Hong Kong -and brings David Lau as Head of Finance, Administration & Operations on board.

British Chinese, Lau holds a wealth of experience in the banking sector. With previous posts in equities at Goldman Sachs, Credit Suisse and HSBC, Lau turns client side as he joins EIP as Head of Finance, Administration & Operations.

The EIP Overlay Fund is an Asia ex-Japan market neutral fund, which employs a variety of equity and derivative strategies. The EIP Overlay Fund is up 14.53% YTD, and has 10.95% annualized return since May 2002.

See last year’s Opalesque Exclusive on EIP: An ingenious model from Hong Kong; funds from different asset classed tied together to generate more returns and spread risks...

Source:
EIP relocates in Hong Kong


Funds of Hedge Funds News:

1. U.S. political nominees call for increased regulation of the financial industry
2. Henderson Japan Absolute Return Fund up 1.84% YTD...
3. Amsterdam`s Theta Multistar FoHFs lost 2.31% in August..
4. Gottex`s AUM at $15.6bln for H1-2008
5. Reech`s Iceberg Alternative Real Estate Fund returns +1.38% in August..
6. Laven`s Global Systematic Fund..