South Korea to allow hedge funds next year

Fri, 09 May 2008, 08:24

ChinaView

South Korea plans to allow hedge funds next year to provide more investment opportunities and promote the development of financial techniques, said a South Korean official on Friday. "We are now looking at introducing hedge funds in 2009 after drawing up details in the first half," Jun Kwang-woo, chairman of the Financial Services Commission, told a business conference here. South Korea's capital market is expected to face a shakeup next year as a new law on capital market deregulation goes into effect in February 2009.

GLG loses another executive

Fri, 09 May 2008, 06:31

Wall Street Journal

In the latest blow for one of Europe's largest hedge-fund groups, GLG Partners LP is losing its second prominent executive in about a month. Soraya Chabarek, who oversees marketing in the Middle East for London-based GLG, handed in her resignation a few days ago, according to people familiar with the matter. The Middle East is responsible for about 20% of the firm's fund inflows and is an area where GLG hopes to grow.

Sprott hedge fund may rise after raising CAD200 million in IPO

Fri, 09 May 2008, 05:31

Bloomberg

Sprott Inc may rise after the mining and energy hedge fund run by investor Eric Sprott raised CAD200 million (USD197 million) in the biggest Canadian initial public offering in five months. The 20 million shares were sold at CAD10 each, in the middle of the expected range of CAD9.50 to CAD10.50 a share, the Toronto- based money manager said in a Canada NewsWire statement late yesterday. The offer is scheduled to close on May 15.

Hedge fund SRM leads legal fight over Rock deal

Fri, 09 May 2008, 04:06

The Independent

SRM, the hedge fund that was Northern Rock's biggest shareholder, has joined forces with 150,000 small investors to mount a legal action against the Government over the nationalisation of the stricken bank. The Monaco-based fund and the UK Shareholders Association have requested a judicial review of the Government's compensation scheme for shareholders, which they argue has been rigged to leave investors with nothing.

Maverick hedge fund sees more US bank failures

Thu, 08 May 2008, 23:00

Reuters

Maverick Capital, the USD14 billion hedge fund group headed by industry veteran Lee Ainslee, expects a wave of failures among regional US banks slammed by mortgage defaults, a senior Maverick executive said. As a result, the firm is stepping up its "shorting" among regional lenders, said Maverick principal Steven Galbraith, told investors at a New York forum on Wednesday. His firm has provided financing to several of them, he noted, without naming the lenders.

Prime brokers will generate over USD11bn in revenues from hedge funds in 2008

Thu, 08 May 2008, 21:22

Centre Daily

Growing enthusiasm for hedge funds to the tune of USD1.8 trillion in the US alone, paired with a profitable fee structure and positive returns, has given the hedge fund industry the capital to extend its influence. As the snowball effect of assets and profits turns into an avalanche, competition for hedge funds' business continues to grow fiercer. According to TABB Group in its fourth annual benchmark industry research study published today, "Hedge Funds 2008: Perspectives on Prime Brokerage, Volatility and Expansion," prime brokerage units "will reel in more than USD11 billion revenues from hedge funds in 2008, a 15% increase over 2006."

Wary hedge funds opt for a conservative approach

Thu, 08 May 2008, 21:03

FT.com

US hedge funds are responding to the continuing uncertainty of the investment outlook by taking a cautious "wait and see" attitude, scaling back on big directional bets and sitting on large cash balances, according to investors. The impact on the wider market of this relative lack of activity and "flight from risk" by hedge funds is raising concerns in some quarters.

AdultVest, Inc. Nominated for 'Hedge Fund Launch of the Year'

Thu, 08 May 2008, 20:28

Earth Times

AdultVest, Inc, the Beverly Hills-based investment bank, which concentrates its practice exclusively on adult industry investments, mergers, and acquisitions, has been selected by Alternative Investment News as one of four funds nominated for the "Hedge Fund Launch of the Year" award. The 6th Annual Hedge Fund Industry Awards recognizes the hedge funds, fund of funds, endowments, foundations, and corporate and public pension funds that have stood out for their notable accomplishments in alternative investments during the past year.

Hedge funds bounce back

Thu, 08 May 2008, 20:13

Investment News

Hedge funds gained ground in April, bouncing back from a rough March, according to several hedge fund industry indicators. The Hedge Fund Research Inc. Fund Weighted Composite Index gained 1.64% in April, but is still down 1.78% on the year. The index had fallen 2.14% in March. The increase was led by HFR's Technology/Health Care, Emerging Market and Equity Hedge indexes, which increased 4.06%, 3.54% and 3.08% respectively.

Fortress posts surprise loss

Thu, 08 May 2008, 16:34

CNN Money/Fortune

Fortress Investment Group is paying the price for going public. The New York-based firm reported Thursday a sharp decline in earnings as its core hedge fund business felt the effects of Wall Street's market swoon. For the quarter ended March 31, Fortress (FIG) posted a loss of USD69 million, or 74 cents a share, compared to a profit of USD62.1 million in the year-ago quarter. Revenues fell by more than half, to USD200.9 million, from USD416.3 million in last year's first quarter.

London Mayor chooses former hedge fund chief McGrath for agency

Thu, 08 May 2008, 16:34

Bloomberg

Boris Johnson, London's new mayor, picked former hedge-fund manager Harvey McGrath to oversee the city's economic development agency and formed an audit panel to investigate financial management at City Hall. He also asked for the resignations of the London Development Agency's top two executives, Mary Reilly and Manny Lewis, who were appointed by Johnson's predecessor, Ken Livingstone.

Lyxor launches investable hedge fund indices

Thu, 08 May 2008, 16:34

Hedge Funds Review

Lyxor has launched Lyxor Hedge Fund Indices (LYXR), a range of 16 fully investable indices. Based on Lyxor's hedge funds platform, the range is made up of three main groups. Global index is a combination of strategy indices mirroring global hedge fund industry performance. The 14 strategy indices each correspond to a specific hedge fund strategy, which should help with diversification and fine tuning asset allocation. The thematic index is made up of a wide range of alternative strategies giving exposure to global emerging markets.

Eyeing alternatives

Thu, 08 May 2008, 15:09

Reuters/Deal Zone

When the times get tough, some people hedge their bets. Others buy hedge funds. Alternative investment firms have become attractive to buyers looking to navigate the challenges thrown their way by the worldwide credit crunch. Jefferies Putnam Lovell said sales of alternative investment firms account for a record 40 percent of deals in the global investment management business so far this year. Through April, 29 of the 73 deals announced involved alternative investment firms, it said. Hedge funds lead the way. The total includes 20 transactions of hedge fund and fund of hedge fund managers.

Thacher Proffitt publishes derivatives and structured products notes

Thu, 08 May 2008, 13:00

BusinessWire

Thacher Proffitt & Wood LLP announced today that its Derivatives and Structured Products Group has published "Hedge Funds and ISDA Master Agreements: Drafting Considerations in a Fluid Market." The publication explores key issues that hedge funds and derivatives dealers must consider when negotiating ISDA master agreements, including:

Phoenix restructure targets UK managers

Thu, 08 May 2008, 12:24

ICFA Online

Three specialist fund administration firms have been brought together as "Phoenix Fund Services" to service the increasing number of UK based managers running offshore traditional and hedge funds alongside their UK onshore platforms. Phoenix Administration Services Limited, Phoenix Financial Services Limited and Phoenix Fund Services (UK) Limited, with a combined total of USD12bn assets under administration, have been amalgamated under the one single brand, Phoenix Fund Services.

Tuckerbrrok fights Banerjee for funds

Thu, 08 May 2008, 11:56

Euromoney Institutional Investor

Tuckerbrook Alternative Investments and Sumanta Banerjee head to court on May 1 in a dispute for control of the Tuckerbrook-SB Global Special Situations Fund and Tuckerbrook-SB Global Distressed Fund. Tuckerbrook and Banerjee each hold 50% of the general partnership for the two strategies. The firm reassigned itself to a 100% position in the general partnership and sent a letter to its investors indicating the change. Part of the dispute is over whether the firm could unilaterally appoint itself to this position. The letter called for a vote to extend the investment period of the global distressed fund, which would enable Tuckerbrook to remove Banerjee as portfolio manager. Banerjee filed a counterclaim against Tuckerbrook in which he seeks to gain control of the funds.

Toscafund ups Aberdeen stake

Thu, 08 May 2008, 11:45

Euromoney Institutional Investor

Activist hedge fund Toscafund has upped its stake in Aberdeen Asset Management to 16.12%, Reuters reports. Toscafund, which is run by Martin Hughes, started investing in Aberdeen in March and is its biggest shareholder, ahead of Lansdowne Partners, which owns 10.46%. "It's taken the stake as a long-term investment. It's making a number of quite large investments because it believes the current market offers very good opportunities," a source familiar with the situation told Reuters. "We welcome them as shareholders," an Aberdeen spokesman told Reuters.

HSBC Absolute Return dumps commodities

Thu, 08 May 2008, 11:22

Reuters

One of HSBC's most actively managed fund divisions has been reducing its exposure to commodities, expecting a major correction in the high-flying sector. The USD2.7 billion Absolute Return Service, part of HSBC Investments, now holds only around 2 per cent of its portfolio in commodities, down from a high of around 17 per cent earlier this year. In an interview with Reuters on Wednesday, Charlie Morris, head of absolute return, said commodity prices had risen to unsustainable levels.

China's Bohong to launch fund

Thu, 08 May 2008, 11:12

Euromoney Institutional Investor

Shanghai-based boutique fund firm Bohong Fund Management is introducing its Bohong China Arbitrage Fund that is designed to trade across varying asset classes and earn returns by arbitraging prices between an inefficient China market and foreign China-related securities, Asian Investor reports. The Cayman-registered fund will be run from Shanghai and Hong Kong. Bohong aims to take advantage of the low-level of understanding for complex instruments among most Chinese investors and the speculative nature of market movements in China.

DDQ offers latest tranche of commodity products

Thu, 08 May 2008, 10:47

Investment Week

Dawnay Day quantum is offering further tranches of its commodity-based structured products, after taking almost double the capacity on the last issue. As with previous tranches, the products link to a basket of commodities, covering metals, energy and agricultural assets.
There are two return profiles, offering different levels of participation over the five and a half year term based on capital protection.

Cantor expands in Singapore, targets hedge funds

Thu, 08 May 2008, 10:37

Reuters

US broker Cantor Fitzgerald & Co is expanding its Asian equities and derivatives business to Singapore, targeting sales to institutional clients such as hedge funds, an executive said on Thursday. "We chose Singapore due to the fact that it has become one of the newest destinations in Asia for hedge funds," William Selig, a managing director at the firm who will head the local office, told Reuters.