SAC capital expands in Hong Kong

text is null
Parameter name: text

Hedge funds focus on New Jersey teachers

New Jersey-based hedge fund managers David Tepper and Alan Fournier has created a new non-profit organization that wading into the emotionally charged arena of the State's public education system.

Better education for children was launched (B4K), based in New Brunswick, earlier this month by Tepper, founder of 16 billion dollars the Appaloosa management and Fournier leading Pennant Capital Management, which has about 3 billion dollars in assets under management.

The objectives of B4K, however, has put it at odds with the New Jersey Education Association, the State's major teachers Union, according to an article in the Wall Street Journal.

B4K advocates for tying tenure to teacher evaluation and elimination of seniority in teacher-hiring decisions in the New Jersey public schools, among other things.

An estimated 112,000 teacher teaches over 1.3 million students in 2,480 public schools, NJ Department of education data.

B4K has already launched an ad campaign, the journal reported, in order to fight back against NJEA ads criticizing Governor Chris Christie for his attacks on the teacher's Union, as well as cuts in education in the State budget.

Tepper and Fournier has links with Christie due to both its hedge fund company in the wealthy enclave of Chatham, where Christie owns a home. Tepper is also a major aid donor to the community FoodBank of New Jersey, which is also supported by Christie's wife, Mary Pat.

Go to the Wall Street Journal article

Related articles
Appaloosa Head backs NJ Food Bank

$ 1.2b hedge fund investments for Pennsylvania schools

Pension plan for Pennsylvania retired public school employee has invested a further 1.2 billion dollars in single and multi-strategy hedge funds.

51 Billion dollars, Pennsylvania Public School employees ' Retirement System increased its hedge fund target of 10% of the assets to 12 percent, according to a pensions and investment report.

1.2 billion dollars will be released for new hedge fund managers under advice from hedge fund consultant Aksia. 550 million dollars has so far invested 300 million dollars to Boston-based Mariner investment group and 250 million dollars to the London-based Capula management.

31 March totaled's hedge fund assets 4.92 billion dollars.

Go to pensions & investments article

Obama's NEW collection with hedge fund Bigwigs

President Barack Obama will look for hedge fund money for his campaign for re-election when he comes to New York Thursday evening.

Obama will take a $ 35,800 a plate dinner at the posh Upper East Side restaurant Daniel, who according to press reports.

Reported that Obama will meet with top Wall Street businessman, also from the hedge fund industry both Newsweek and BusinessInsider.com. They include Orin Kramer of Kramer Spellman and Marc Lasry Avenue Capital Group.

The meet-and-greet is Obama's attempt to re-connect with donors, the notorious set, many of whom have defected from his camp, as money managers have taken the question Obama administration regulation policy against their industry.

A representative from the White House Press Office declined to confirm the President's dinner event to HedgeFund.net. A spokesperson for Chef Daniel Boulud could not be reached immediately for comment on the President come to the restaurant.

Go to Business Insider article

Related articles
Obama wooing hedge fund set for re-election

HFN industry report: May 2011

Click here to read the full report.

HFN industry overview: May 2011

On June 21, 2011 with 3,235 hedge fund products, reporting, HFN Hedge Fund aggregated Index was-1.06% in May and + 1.62% of the current year 2011 while S & P 500 Total Return Index (S & P) was-1.13% during the month and + 7.82% YTD.

Hedge fund industry highlights may:
• Total industry assets decreased approximately 0.79% to $ 2.586 trillion in May. Performance accounted for the majority of the reduction of the supply and net investors funds were positive for 11th month.
Sv?ltf?dda performance drivers in April reversed in May with losses manifest in CTA/managed futures strategies together with energy and technology focused equity funds.
• Credit strategies generally performed the rest of the industry, led again by mortgage funds, but gains were also some EM interest in markets and short European sovereign debt.
• Japan focused funds was down for the third straight month, and has lost nearly 5 percent on average since the earthquake in March.

The sharp turnaround of the US dollar and the slide in commodity prices were the most obvious indicators of a global reduction in exposure to risky assets during the month. Despite the overall capital market image were pockets of strong returns for hedge funds in the health sector and positive performance, albeit small, for small/micro cap related strategies. Mortgage funds continued to produce positive returns and, together with health funds is the only strategy/sector groups that have performed the S & P 2011.

HFN developed outliers ratio to determine which sectors producing returns outside of their normal ranges. In may, it was the tech sector, CTA/managed futures and global macro strategies produce abnormally negative total returns.

HFN regional benchmarks
Emerging market shares related returns, mainly Russia and India focused strategies, was the biggest drag over EM returns in May while all emerging market regional exposure produced negative average yield, was EM debt strategies positive for that month. Index HFN emerging markets are barely positive during the year, + 0.12%, the lowest level through the first five months of the year since 2008 and the second as the lowest since the Russian financial crisis in 1998.

Australia focused funds declined more than any other developed market in may, falling-2.28% during the month. The Group seemed to have ridden the wave of rising commodity prices by late 2010, but suffered during the sell off in may, the Group has performed ASX indexes, even in the months after the index has risen, but losses in may reflected ASX downturn.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of May 2011 was $ 2.586 trillion, a decrease of 0.79% or 20.5 billion dollars from April.
• Performance accounted for a decrease of 31.9 billion dollars and investors accounted for a net inflow of 11.4 billion dollars.
• The core (% access change due to investor funding/redemption), growth was 0.44%, a reduction from April and only slightly over the previous 12-month average.
• Overall, the notorious AUM is now 14% over the historic high in Q2 2008.

NET flow information investors continue to show interest to invest directly into hedge funds, a trend which has continued for several months. Despite decreasing core share growth showed may the 11th straight month inflows of net appropriation. Monthly total assets decline was only the fourth since April 2009, the last month of massive redemption inflows after the crisis.

Some sector specific feeds
• Investor appear to believe there is profits investing in Japanese markets. NET investment flows into Japan focused hedge funds has been above average in the industry over the past two months.
• Commodity focused funds led the inflow of investment market in may, followed by four classifications of debt. Flows into the mortgage, convertibles, sovereign and corporate bond funds gone equity fund flows.
• Funds investing primarily in European markets have experienced significant fluctuations in the investors ' interest. In April, but inflows jumped in may for more money left than was allocated, which had been the trend for several months until April.
• Money laundering continued to flow onto the technical sector funds, although the total outsized losses during the month. Health strategies also saw a blip of positive money flows.

Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was + 0.43% in May and + 3.63%-years.
• Mortgage funds done best in may, + 1.52% while distressed strategies posted moderate declines,-0.23%.
• Fixed Income Fund's assets increased 1.17% in may for an estimated 693.1 billion dollars. Investors to net 5.1 billion dollars during the month.

Equity capital (EQ) strategies
• The average return in all equity focused strategies was-0.84% in May and + 1.15% YTD.
• Funds investment in the health sector shares had the best results, + 1.54%, followed by those who invest in small/micro cap issues, + 0.29%. Energy sector funds had the most difficult month,-2.43%.
Assets of • Equity fell approximately 0.71% to 852.5 billion dollars in may, Investors allocated a net $ 1.9 billion, a decline from April and during the previous 12-month average.

Commodity and foreign exchange (FX) related strategies
• Broad natural resource commodity strategies was-3.28% in May and-0.16% YTD.
• Funds which invest in FX markets gave back most of April's profits, 2.45% and is now-1.01% for the year.
• Only agriculture funds had total profits in may, + 1.51% and funds investing in metals markets fell most,-3.53%.

Summary analysis
The influx of capital, money is flowing into hedge funds has continued in the above average pace, be a vote to the lack of confidence in direct investments in traditional markets. The vast majority of stock markets has negative territory in June, Greek debt crisis, the European credit markets are at a point in constant change and commodity prices are mixed with energy prices continue to decline. These factors point to another difficult month for total hedge fund returns, but it may be the second consecutive month when industry superior broad equity markets.

Click here to read the full report.

Conifer shrub reorganizes top staff

Hedge Fund Administrator conifer shrub group has promoted a number of its top executives around a staff reorganization.

The company named Peter O'Connell as its chief financial officer. He was Chairman of conifer shrub fund services, replacing Mark Friesen, who left the conifer shrub.

The takeover of O'Connell is Douglas Lang, who was head of the U.S. fund administration. Lang Joined conifer shrub last year from Butterfield fulcrum.

David Bateman has also been promoted to Director of conifer shrub fund services, BVI, said the company.

Shadow sows: will we or not we?

Recover, that is, from our collective economic hangover.

Economists debate about the great recession of 2008 is on the way to go for another round or if it is about to slip into history books.

You can see them lining up on both sides of the recession, closely followed by investors and, of course, politicians.

Nouriel Smirk, his gloomy prognostication and hard partying ways, is convinced that a double dip just around the corner. Oh, okay, he is 40% convinced, but it remains very high.

Then there are Ross DeVol, Milken Institute, which has made his case for a moderate and sustainable recovery.

Gold afiocionados and hedge fund managers, John Paulson, Eric Mindich, David Einhorn and George Soros have all loaded up on variations of the lovely element, if it is in the form of ETFs, mining company shares or bullion itself, although some of their effect on that particular play is murky. Is it because of inflation, or is it that when everything else is heck around you, you just want to hang on something that has a nice heft to it?

The latest figures are not doing too much for the crystal globe gazers after long hot summer: the number of long-term unemployed (those jobless for 27 weeks or more) reduced the 323,000 in August, although the overall unemployment rate remained much the same of 9,6%. Total business sales were up to $ 1.09 trillion (+ 0.7%) in August, while new orders for manufactured goods also increased 0.1 percent to 409.5 billion dollars. Retail trade and food services saw a small check-up (0.4%) to 363.7 billion dollars.

It is, of course, the housing market, which, after a slight increase on the back of a tax credit for first time home buyer, took a horrifying dip in July (tax credit expired at the end of June). Sales of new homes was down 12.4% to 276,000.

Then there are those markets that aims to bedevil all and sundry. In addition, the famous "flash crash" on May 6, the Dow Jones Industrial average is rather left around 10,000 as it climbed out of the stagnant in November 2009. But each time it fell below the magical six-figure numbers, there was a hue and cry about double-dip recession, every minute is now, just around the corner, can see it coming into focus in the near future ... Oh, not so much?

What Amuses The Shadow in all this are some of the whining from the hedge fund industry on how tough it is to monetize "those markets" and "in these economic times."

Whatever happened to "uncorrelated?" What happened to "alpha?"

Most important, whatever happened to "secured?"

Stanley Druckenmiller, one of the most famous managers, who worked with George Soros, when he made his winning bet on the British pound, closed his hedge fund Duquesne Capital Management. While the man is more than entitled to time with his family and his charity after 30 years in the industry, were his reasons for getting that he did not like the stress of trying to navigate today's markets.

There is no doubt that times are tough. But is it not what hedge fund industry was born to do--take on the risk of greater yield, but at the same time, to keep the hedges in place so that the risk would be handled correctly?

The great recession of 2008-2009 goes into the history books as just that, or if another year (or two) is added to its title, hedge funds should be out in choppy water, swim against the tide, earn money for their investors and hedge risk.

The views expressed in this column do not necessarily reflect the views of HedgeFund.net.

New rules for hedge funds, family offices

Hedge fund advisers will need to comply with new regulations that the Securities and Exchange Commission adopted new rules as part of the Government's desire for greater transparency from hedge fund industry in the Dodd-Frank financial reform bill.

Rules, approved by a 3-2 vote Wednesday, demanding that hedge fund companies as well as private investment advisors with assets under management of more than $ 150 million must register with the SEC.

They must also provide information on their activities including the amount of assets held by a special fund, types of investors in the Fund and Adviser services to the Fund.

But the rules comes with a caveat – they begin to not take effect until 30 March next year.

SEC Chairman Mary Schapiro hailed passage of the new regulations SEC after their passage.

"These rules fills an important gap in the regulatory landscape," Schapiro said in a statement.

The SEC also approved on Wednesday a new rule exempting "family Office" or entities established by wealthy investors to manage their personal portfolios from any regulation provided that they must be checked only by family members and advise clients only.

Related articles
SEC proposes rules for hedge funds

HFN focus strategy report: FX strategies

Click here to read the full report.

Overview: FX strategies

HFN active and inactive databases contains over 200 unique Fund products with a primary investment strategy which focused on foreign exchange markets. Commercial database contains 96 products, of whom 68% are unique with 6 unique products structured as UCITS. This report creates the HFN HFN FX Index to compare these funds.

• The HFN FX Index was + 2.37% in April and + 1.76% of the current year 2011. This compares to + 3.07% YTD for equity hedge fund strategies, + 3.59% for fixed income strategies and + 2.78% for the broad hedge fund industry.
• HFN estimates total hedge fund assets invested in FX strategies was 51.6 billion dollars at the end of the first quarter of 2011.
• April performance from FX strategies was best for more than five years, but early indications for can view group lost most, if not all April's profits.

Performance from FX strategies in April and may enter the aggregated positions from the Group were negative on the US dollar. Of the relationship between monthly FX strategies into one United States dollar vs. basket of currencies index over the past two years was-0.62. There are, however, in the FX universe a diversity of strategies that enable an aggregation of return flows a comprehensive picture of individual success and failure. The rest of the report breaks down FX Strategy ratings to give a better perspective on the returns generated by this sector hedge fund industry.

FX Fund properties
The aggregated qualitative details of FX strategies in HFN database gives an indication of the collective characteristics of FX strategies for the entire industry:

• London is the most common city where FX strategies base its operations; but the majority of FX funds exist in the United States with New York and Chicago's leading locations for Boston.
• The average FX entity has 228.5 million dollars in assets strategy, compared with the average equity strategy 196.5 million dollars and fixed average income strategy size of 443.5 million dollars.
• The majority of the current crop of FX and credit resources was initiated in 2008 while equity fund launches reached the end of 2006 and 2007.
• London and the rest of Europe has a higher concentration of quantitative based FX strategies in the United States, Boston and Chicago have more discretionary based strategies than New York.

Total asset levels and flows estimates
HFN has historically not broken out total asset levels and flows of funds investing primarily in FX strategies. For this report, estimates have been made from FX Fund in HFNS major asset flow test.

• HFN estimates total assets invested in FX strategies at the end of the first quarter of 2011 was 51.6 billion dollars. Total AUM has changed much over the last nine months (since the previous report).
• Performance has increased AUM an estimated $ 580 mm while net investor flows have been negative.
• Investor's represented a net outflow of over $ 700 mm from FX strategies over the last nine months until the first quarter of 2011. Broad hedge fund industry had a net inflow of 110 billion dollars in the same timeframe.
• Early estimates for April indicated meaninful inflow, but performance can lead to a further redemption.

Investors flow data end of 2010, indicated increased interest in FX strategies, but redemption 2011 has so far indicated investors have not been satisfied with the performance. Var asset weighted return for FX strategies + 1.13% in the nine months ending Q1 2011 compared with + 10.20% for the broad hedge fund industry in the same time frame.

Performance by product size and strategy Figure 5 shows the annualized returns for the past 24 months, ranked by percentile for FX strategies compared to several other primary market hedge fund ratings. Asset groups are defined by the Fund $ AUM at period early period to best quantify returns of actual fund size. Figure 6 shows the rolling yields for quantitative vs. discretionary funds.

Of the strategy assets varies a bit. FX devices seem to have a higher concentration of managed accounts, and so actual fund size may not be the best indication of the size of a FX operation.

• Smaller FX funds had a slightly higher median income than larger funds, but larger funds (> $ 100 mm) were meaningfully higher top percentile returns.
• Large FX strategies (or "assets in the strategy ') performed relatively well over the last twelve months (LTM) and current year 2011.
• The FX units, through the strategy AUM, with more than 1 billion dollars, an average of + until 4.45% in LTM and + 5.47.% in 2011. both of the broad hedge fund industry aggregated returns.
• Based on the sectors means that use FX strategies, primary or secondary, it appears that FX Strategy exposure in General has been a drag on performance.
• In recent terms, do not have a meaningful difference between quantitative and discretionary FX strategies, but in the longer term, resources that make it possible for a discretionary power has done better.

Forward
HFN has done studies on investor flow trends and the lining investors chase returns. The Data also show the tendency to get rewarded for chasing yield and rewarded for use from the resources crisis management, at least in the years since the financial crisis. For FX strategies shows the first part of the trend to hold true.

Medium reporting full access streams to HFN who had negative returns 2010 had an average of 19 million dollars cashed in the past nine months and on average 4 million dollars for the year 2011. Those who performed the hedge fund industry 2010 had average net inflows of $ 26.1 million in the last nine months and 10 million dollars for the year 2011. Investors seemed to take a decent decision and. The Group at the bottom is-0.12% in 2011, while the top group is + 3.73%

What this means for FX strategies as a whole, but are not necessarily positive. Given the relatively poor aggregated performance 2011 (only one third of FX funds have performed industry 2011 through April, a figure that is likely to be reduced in May) strategy is likely to reduce in size with money flowing to a select group.

Click here to read the full report.

Ex-Manager of plea negotiations FrontPoint

A FrontPoint Partners, Portfolio Manager for insider trading charges is reportedly in talks with federal prosecutors that contains negotiate a guilty plea.

Lawyers for Joseph "Chip" Skowron, Dr Jolanta is in talks with the Manhattan U.S. Attorney's Office, according to the Bloomberg report citing court documents.

The talks could not take place due to the Court in Skowrons cases grant the Government an extension of one month to get an indictment of Skowron, Dr Jolanta.

The Government intends to hedge fund manager avoids 30 million dollars in losses for his Fund by selling shares in biotechnology company Human Genome Sciences Inc., using inside information from Yves Benhamou, French physician.

Skowrons arrest resulted in FrontPoint investors seeking 3 billion dollars in redemption, and many of the company's hedge funds close.

FrontPoint paid also 33 million dollars to the Securities and Exchange Commission to settle a case seeking money the SEC claimed was made from Skowrons insider.

Skowrons lawyer, James Benjamin, could be accessed directly by HedgeFund.net for comment in the report on the negotiations.

Go to the Bloomberg article

Related articles
FrontPoint pays $ 33 M to settle SEC case
Ex-FrontPoint Manager charged with Insider trading

Icahn bags $ 1. 7 M from Gas companies selling

Activist investor Carl Icahn has reportedly received a 1.7 million dollar profit in his game in the natural gas company southern Union when it was sold to rival energy transfer equity for 4.2 billion dollars.

Icahn bought over 186,000 shares of Houston-based gas firm earlier this year at 24 DOLLARS per share, according to a Wall Street Journalarticle.

The share price, which peaked at $ 33 at the end of Thursday's trading, after the sale was announced, which pushed the value of the Icahns game to 6.1 million USD.

Icahn running hedge fund Icahn Capital Management and ranked by S Magazine as one of the top 25 hedge fund capital managers in 2010 serve an estimated 900 million dollars.

Icahn could be reached for comment by HedgeFund.Net on the report.

Icahn not only from the hedge fund world which have profited from southern Union sales, however, the journal reported.

Greenwich, Conn.-based hedge fund Kensico Capital Management has a 5% stake in southern Union, which is now valued at over $ 200 million maturing after the sale.

Go to the Wall Street Journal article

Related articles
Top 25 Hedge Fund managers earned $ 22B 2010

Rangers refute Einhorn's Rumored $ 1 games

Hedge fund manager David Einhorn potential 33% stake in the New York Mets were said to have been 60% over three years for just one dollar.

But the Mets say any story about such stealing is simply a scent.

Einhorn, the head of the 5 billion dollar company Greenlight capital, is currently finalizing a deal with the Mets for a third minority stake in the team against their investment of 200 million dollars, but could end up with 60% controlling stake for an additional $ 1 as part of the agreement, according to a report in Forbes on Wednesday.

Win 60% of the shares would only occur if Mets co-owners Fred Wilpon and Saul Katz does not pay back the $ 200 million to Einhorn. Any agreement between the parties is subject to approval from Major League Baseball before it is finalized.

The Mets, a statement rejected the report:

"Like many other reports in the media speculate about a potential, yesterday was simply false, too."

A spokesman for Einhorn declined to comment to HedgeFund.Net report.

Agreement between Einhorn and the Mets was announced last month.

Among other details of the agreement, Einhorn was given back its $ 200 million, he would end up with only 16% ownership.

But he stands a good chance to acquire majority ownership since the Wilpon and Saul Katz are offered a share in the group to cover liabilities, and expenses, due partly to a $ 1 billion lawsuit from Irving Picard, the trustee in bankruptcy of Bernard Madoff. Wilpon also said in an interview in Sports Illustrated last month that the team could see 70 million dollars in losses this year.

Go to the Forbes article

Related articles
Einhorn and the Mets: win or lose luck cause?

Wellington Management launches new Fund

Boston-based Wellington management has launched a new hedge fund.

The new Fund had $ 26.5 million from 31 investors to 1 June, according to the Securities and Exchange Commission filing made Wednesday.

The Fund was opened to outside investors with a minimum investment of $ 1 million, said archiving.

Wellington management has more than 630 billion dollars in assets under management, making it one of the largest investments in the world.

Wellington did not return a call for comment.

Ackman is considering public fund

Activist hedge fund manager Bill Ackman reportedly plans to raise billions of dollars for a closed-end fund that would be taken up in an Exchange pursuant to The New York Times.

Ackman of Pershing Square capital has reportedly are considering new ways to create a solid capital base, so that hedge funds do not always be sensitive to excessive quantities of withdrawals during times of financial unrest.

If a Fund run by public funds, Ackman argued, the need to keep capital overridden in excessive is redemption nixed, therefore create a wider range of money to invest.

The company itself would not go public, only the Fund.

The idea comes three years after the financial crisis that saw investors require back billions of dollars in redemption at once, the Times reported.

Attempts to port these redemption was met only with contempt by desperate investors who wanted their money back immediately.

Contracts that tie up investors ' money this year has also been met with recalcitrance.

Ackman is known as an activist investors buy shares in the hope of making changes to a particular company and then harvests the fruits of the changes.

Pershing Square did not return a call from HedgeFund.net immediately.

Pershing Square is currently about 10 billion dollars in assets under management.

Go to the New York Times article

Related articles
Ackman, the profits from the Jcpenney rent

The man Group Hires Chief Exec for the United States.

London-based Man Group announced it has hired two chief operating officers in an attempt to expand its business in the United States.

Lance Donen berg and Jordan Allen will be reporting to the COO Emmanuel Roman, Man Group said in a statement Thursday.

Donen berg was previously COO of GLG Partners, focusing on sales and business development in North America and Europe. The man Group acquired GLG last year.

Allen served as COO of ore Hill partners, subsidiaries, overseeing U.S. business.

Besides the two hires said the hiring Tim Gullickson group to assist the Manager their client Advisory Group.

Gullickson, who is based in the Chicago office, will promote human services Midwest-based institutions and funds nationally.

The man has approximately 78.5 billion USD of assets under management at 31 March, making it one of the world's largest hedge fund.

Related articles
The man group year-end profit better than expected

HFN strategy focus report: FX strategies

server temporarily unavailable
Klicka h?r f?r att l?sa den fullst?ndiga rapporten.

?versikt: FX strategier

HFN aktiv och inaktiv databaser inneh?ller ?ver 200 unika fonden produkter med en prim?r investeringsstrategi som fokuserade p? valutamarknaderna. Kommersiella databasen inneh?ller 96 produkter, 68% som ?r unikt med 6 unika produkter strukturerad som fondf?retag. F?r denna rapport skapas HFN HFN FX Index att j?mf?ra dessa medel.

•Den HFN FX Index var +2.36% i April och +1.76% innevarande ?r 2011. Detta kan j?mf?ras med +3.07% YTD f?r eget kapital Hedgefond strategier, +3.59% f?r fasta inkomster strategier och +2.78% f?r bred hedgefonder.
•HFN uppskattar totala Hedgefond tillg?ngar investeras i FX strategier var 51,6 miljarder dollar i slutet av f?rsta kvartalet 2011.
•April prestanda fr?n FX strategier var b?st i mer ?n fem ?r, men tidigt indikationer f?r kan visa gruppen f?rlorat de flesta, om inte alla Aprils vinster.

Prestanda fr?n FX strategier i April och maj visar de aggregerade st?ndpunkterna fr?n gruppen var negativa p? US-dollarn. Av sambandet mellan m?natliga resultat av FX strategier till amerikanska dollar vs. korg av valutor index under de senaste tv? ?ren var-0.62. Det finns dock inom FX universum en m?ngfald av strategier som g?r en aggregering av returnera str?mmar en helt?ckande bild av enskilda lyckade och misslyckade. Resten av bet?nkandet bryter ner FX strategi klassificeringar till ger ett b?ttre perspektiv p? returnerar skapas genom denna underavdelning av hedgefonder.

FX fondens egenskaper
Aggregerade kvalitativa Detaljer FX strategier i HFN databasen ge en indikation av de kollektiva egenskaperna av FX strategier f?r hela industrin:

•London ?r den vanligaste staden d?r FX strategier basera sin verksamhet. men majoriteten av FX medel finns i USA med New York och Chicago p? ledande platser i Boston.
•Den genomsnittliga FX entitet har 228.5 miljoner dollar i strategin tillg?ngar, j?mf?rt med den genomsnittligt eget kapital strategi 201.2 miljoner dollar och fasta medelinkomsten strategi storlek p? 443.5 miljoner dollar.
•Den majoriteten av den aktuella gr?dan av FX och kredit inleddes i 2008 medan eget kapital fond lanserar n?dde slutet 2006 och 2007.
•London och resten av Europa har en h?gre koncentration av kvantitativa baserat FX strategier i USA, Boston och Chicago har mer sk?nsm?ssiga baserade strategier ?n New York.

Totala tillg?ngar niv?er och fl?den uppskattningar
HFN har historiskt sett inte brutit ut totala tillg?ngar niv?er och fl?den f?r medel som fr?mst investerar i FX strategier. F?r detta bet?nkande, har uppskattningar gjorts fr?n FX fonderna inom HFNS stora tillg?ngar fl?de provet.

•HFN uppskattar totala tillg?ngar investeras i FX strategier i slutet av f?rsta kvartalet 2011 var 51,6 miljarder dollar. Totala AUM har f?r?ndrats mycket under de senaste nio m?naderna (sedan f?rra rapporten).
•Performance har ?kat AUM en uppskattad $580 mm medan fl?den som netto investerare har varit negativa.
•Investors utgjorde ett netto utfl?de av drygt $700 mm fr?n FX strategier under de senaste nio m?naderna fram till f?rsta kvartalet 2011. Bred Hedgefond industrin hade ett netto infl?de av 110 miljarder dollar i den samma tidsramen.
•Early uppskattar f?r April anges meaninful infl?de. men kan prestanda leda till ytterligare inl?sen.

Investerare fl?desdata slutet av 2010 anges ?kat intresse FX strategier, men inl?sen 2011 har hittills angivit investerare inte har varit n?jda med prestanda. Var tillg?ngen v?gd avkastning FX strategier f?r +1.13% i de nio m?nader som slutar f?rsta kvartalet 2011 j?mf?rt med +10.20% f?r den breda Hedgefond industrin inom samma tidsram.

Prestanda genom produktens storlek och strategi Figur 5 visar annualized avkastning under de senaste 24 m?naderna, rangordnade efter percentil f?r FX strategier j?mf?rt med flera andra prim?ra marknaden Hedgefond klassificeringar. Anl?ggningstillg?ngsgrupper definieras av fonden $AUM vid perioden b?rjan av perioden att kvantifiera b?st avkastning genom faktiska fondens storlek. Figur 6 visar rullande avkastning f?r kvantitativa vs. diskretion?ra medel.

Av strategin tillg?ngar skiljer sig n?got. FX enheter verkar ha en h?gre koncentration av hanterade konton och s? verklig fondens storlek kanske inte den b?sta uppgiften om storleken p? en FX operation.

•Smaller FX medel hade en n?got h?gre medianv?rde avkastning ?n st?rre fonder, men st?rre fonder (>$ 100 mm) hade ett meningsfullt s?tt h?gre ?versta percentil avkastning.
•Large FX strategier ("tillg?ngar i strategi") har utf?rt relativt v?l under de senaste tolv m?naderna (LTM) och innevarande ?r 2011.
•Den FX enheter, genom strategin AUM, med mer ?n 1 miljard dollar returneras ett genomsnitt p? +16.45 procent i LTM och +5.47% under 2011. b?de ?ver den breda Hedgefond industrin samlade returnerar.
•Based om de sektorer medel som anv?nder FX strategier prim?rt eller sekund?rt, visas det att FX strategi exponering i allm?nhet har varit en dra p? prestanda.
•In senaste termer, inte har en betydelsefull skillnad mellan kvantitativa och diskretion?ra FX strategier, men p? l?ngre sikt, medel som g?r det m?jligt f?r en sk?nsm?ssig inflytande har gjort b?ttre.

Fram?t
HFN har gjort unders?kningar av investerare fl?de trender och bevisen visar investerare chase returnerar. Data visar ocks? de tenderar att f? bel?nad f?r jagar avkastning och bel?nad f?r anv?nda fr?n medel som krishanteringen, ?tminstone under ?ren efter den finansiella krisen. FX strategier verkar den f?rsta delen av trenden h?ller.

Medel rapportering fullst?ndig tillg?ng str?mmar till HFN som hade negativa returnerar 2010 har haft ett genomsnitt p? 19 miljoner dollar l?ses in i de senaste nio m?naderna och i genomsnitt 4 miljoner dollar ?r 2011. De som visade b?ttre resultat ?n den Hedgefond industrin 2010 hade genomsnittliga netto infl?den av 26,1 miljoner dollar under de senaste nio m?naderna och 10 miljoner USD 2011. Investerare har dykt upp anst?ndigt beslut samt. Gruppen l?ngst ned ?r-0.12% 2011 medan den ?versta gruppen ?r +3.73%

Vad detta betyder f?r FX strategier som helhet, men ?r inte n?dv?ndigtvis positivt. Med tanke p? de relativt d?liga aggregerade prestandan 2011 (endast en tredjedel av FX medel har visade b?ttre industrin 2011 genom April, en siffra som sannolikt kommer att minska i maj om resultat ?n) strategin kommer sannolikt att minska i storlek med pengar till en utvald grupp.

Klicka h?r f?r att l?sa den fullst?ndiga rapporten.

The trader's option, the company has new model

Carrie McCabe, founder of the alternative investment management company Lasair capital, always knew that she wanted a career in finance, but trade was another matter.

As a student in the Harvard MBA program in McCabe a cubicle to interview for what she thought would be a corporate finance practice.

Instead, the man in the booth was smoking and definitely McCabe tells HedgeFund.net, "had corporate finance look."

"So you want to be a trader?" said the man that McCabe.

When McCabe politely told him that there must be some mistake, persuaded her to try trading venue, promising her a transfer if she does not like it.

It turned out that the interviewer was late famed Bear Stearns trader Vincent "vinny" Matone, who founded the fixed income trading team who contributed to the development of the company's activities.

Although she was one of the very few women trade in those days, she immediately says McCabe was hooked "because you can see the markets moving."

Bill Michael cheque, founder of Mariner capital, which was at the Bear Stearns when McCabe came, and for which she later worked at his company, Mariner investment group, says repo desk where she worked under Matone as perfect training ground.

"If you are financing your desktop, you can meet all traders, because they all have to get funding. Not only that, you meet all of the clients who is also the hedge funds, "he said.

What McCabe says she learned from Matone was somewhat contrary to many a wannabe financier impression to become a top trader.

"I learned that you can be aggressive in making a trade, but you can also do without decimating a person because it is not a zero sum game," says McCabe. "It meant that I developed a win-win attitude".

She went on to manage a trading floor in New York City Office in Hong Kong and Shanghai Banking Corp.

"I know one thing about trade and in the markets and manage groups of traders--it is important to take action every day and not freeze as a deer in the headlights," she says. "If you have something that doesn't work, you cut your losses, do something else, but do not you don't fight the market."

These attitudes, as well as her accrued experience at companies such as Blackstone Group and FRM capital advisors, led McCabe in a new hedge fund firm model, which is unusual for the industry. Her access management company, Lasair capital, which was launched in early 2008 and has as its strategic partner, a Fortune 10 pension fund.

McCabe cannot comment on the pension fund has partnered with her because of the restrictions, but News reports have said there are 122 billion dollar OFFER Asset Management.

453 billion dollars teachers pension fund TIAA-CREF, recently launched a subsidiary, covariance Capital Management, with $ 1 billion in sowing. Covariance, but tries to be a construction investment firm management of large machine donated. a different business model than Lasairs alternative investment activities.

Even with an impressive partner, was able to open the Mccabes time the doors to its new businesses have been more stressful.

"in 2007, it was clear that the liquidity begins to deteriorate," she says. "We launched in January 2008 and built out in early 2008. I signed the lease for our current office space on 1 October 2008 and the market went down 20 percent.

But to establish the new company may have been a blessing in disguise as it kept McCabe for busy to dwell on the difficult times around her.

"I thought it was either the smartest, or at least the smart decision I ever made," she said.

McCabe describes Lasairs first investment silo as "concentrated equity long-short, focused on equity."

The primary reason for the merger, she says, is that "traditional hedge funds-of-funds over-diversify and not deliver the upside of equity properties. sophisticated investors want not a bond return for hedge fund risk. "

All three Goffer trial guilty

The trial of Zvi Goffer, a former employee of the hedge fund firm Galleon Group ended Monday when a former trader and his two friends were all guilty of insider trading.

Manhattan U.S. Attorney's Office said that Goffer were sentenced by 14 points for conspiracy and securities fraud, while his brother Emanuel Goffer and Michael Kimelman, another trader, was convicted of conspiracy and two counts of securities fraud.

Federal Court jury came back with the verdict following five days of deliberations after only two weeks of trial.

The Government had accused his co-defendants Goffer and traded on inside information provided by the company's lawyers that made them 20 million dollars in illegal profits.

Prosecutors said Goffer paid almost $ 100,000 in exchange for the confidential information.

Manhattan U.S. Attorney Preet Bharara had harsh words for his co-defendants Goffer and after judgment.

"Zvi Goffer may have had a good reputation in the hedge fund world to be omnipresent, but today, along with his brother Emanuel and Michael Kimelman, he discovered they are not above the law," said Bharara in a statement.

It was the second major insider trading case in the spring, after the trial of former Chief, Goffers Raj Rajaratnam, Galeons founder, who was sentenced in May to 14 points for insider trading.

Zvi Goffer, 34, faces up to 25 years in prison. He is scheduled for sentencing on september 7.

His brother Emanuel and co-conspirator Kimelman each faces 45 years. Both have an Oct. 7 sentencing date.

Lawyers for the defendants could not be reached immediately for comment.

Related articles
Goffer trial ends soon: what happens now?

Carlyle Group to buy 55% stake in Tiger backed down

Private equity firm Carlyle Group has agreed to buy a 55% stake in hedge fund Tiger Management-supported fixed emerging sovereign group.

ESG, a New York-based company that focuses on emerging markets and macroeconomic strategies, agreed to the deal in exchange for cash, an ownership interest in the Carlyle and performance-based contingent payments.

The terms of the deal were not disclosed.

ESG was founded in 2002 by Kevin Kenny with an initial investment of Julian Robertson hedge fund firm Tiger management.

Tiger management will hold a significant investment in RESEARCH funds and an ownership interest in the RESEARCH NOTE after closure.

The deal comes as Carlyle is to add more liquid investments for a possible future public share sale within a year, according to Bloomberg.

Carlyle is the world's second largest venture capital company with 107 billion dollars under management 31 Dec 2010, according to the company's Web site.

Go to the Bloomberg article

Related articles
Tiger Management founder back in the Swing of things

New Castle Chiesi was Boss ' "virtual servant"

Danielle Chiesi, the hedge fund manager who pleaded guilty in Galleon insider trading investigation team, said his boss at New Castle partners transformed her into a "virtual servant".

In court papers, said Chiesis lawyers also Mark Kurland, her ex-Partner, head of New Castle and her former lover, exposed her to a "vicious cycle of abuse" and "psychological abuse".

Chiesi requests a Federal Court judge to her less than the federal sentencing guidelines, 37-46 months.

Prosecutors, however, to be known as Chiesi, "an elaborate Wall Street insider," in their newspapers asking the judge to adhere to the guidelines on her sentence.

"Chiesi is driven in large part on its own, and she was sufficiently experienced and sophisticated that she knew exactly what she did. In short, she was not only the Courland's minion, "prosecutors wrote.

Kurland pleaded guilty last year and is serving 27 months in prison.

At least, Chiesis lawyers argued, she gets less time than Courland.

After Courland was sentenced, prosecutors argued that it was he, not Chiesi, who decided how big a position New Castle should take in securities that are bought and sold based on inside information.

She raised eyebrows during the trial of Galleon founder Raj Rajaratnam when heard on the tape says in the hedge fund manager who played she employed Akamai "as a finely tuned piano." Rajaratnam was sentenced last month by 14 points for insider trading.

Chiesi is scheduled to be sentenced on June 30.

Related articles
Laced profanity band played at the Rajaratnam trial

Hedge funds buy Yankee Stadium parking bonds

Hedge funds buy is said to have municipal bonds backed by car parks and garages located in the new Yankee Stadium in New York.

New York-based debt of distressed companies monarch alternative capital and Davidson Kempner Capital Management buys bonds, according to a Bloomberg report.

Bonds, who represents 237.6 million dollars of tax-exempt debt, was issued by Bronx parking Development Co., of New York City industrial development in 2007 to build three garages, renovate two others and renovate six lots near the stadium.

Both the monarch and Davidson Kempner join an existing group of bondholders which contains Chicago-based Nuveen Investments.

Hedge funds along with fellow bondholders are also good opportunities to own properties in Bronx parking lot by default on debt payments in the future.

Yankees Stadium facilities will not be able to generate sufficient operating revenue to make an interest payment on 1 April 2012, reports Bloomberg.

Garage generated 2.4 million dollars in revenues in April this year, 28 percent less than originally calculated according to a May 25 economic report to the bondholders.

Donald Cutler, General Council for Davidson Kempner, declined to comment on the transaction to HedgeFund.Net. A spokesman for the monarch options did not return a call for comment.

Go to the Bloomberg article

Witness testifies about alleged accuracy Jiaus

Government witness testified Monday in the trial of former expert network consultant Winifred Jiau if calls from Jiau allegedly provide accurate insider tips.

Jason Pflaum, a former research analyst, hedge fund Barai Capital Management, said Jiau allegedly told his former boss, Samir Barai that estimated profits for Marvell Technology $ 804 million and gross margins 51,6% in a May 2008, according to Reuters.

It turned out was correct in its Jiau forecast that a day after the phone call, Marvell announced net income of $ 804 million and gross margin of 52%. That followed a previous call, where she allegedly gave gross margin of 53 percent.

Pflaum, said during testimony in Manhattan Federal Court, also he would forward messages to their hard-head Barai what Jiau talked about listening in conversation between Jiau and Barai.

These messages will appear in court, reports Reuters.

Jiau, used to work for the primary Global research, charged with allegedly obtaining inside information about public companies, mainly within technology, and sell them to hedge fund managers for more than 200 000 $.

Earlier witnesses had testified earlier in the trial of Jiaus accuracy is claimed to give insider tips.

Barai and Pflaum has already pleaded guilty as part of the Government's insider trading-the expert network probe. Both cooperate with the Government.

Go to the Reuters article

Related articles
Alleged Insider Info Peddler known as "properly"

Obama wooing hedge fund set for re-election

President Barack Obama is meeting with hedge fund managers to gain its financial support for his re-election.

Obama had a private meeting at the White House in March with a group of Wall Street figures including Paul Tudor Jones of Tudor Investment Corp., Highbridge Capital Management Glenn Dubin and York Capital Management James Dinan, according to an article in the New York Times.

Obama also plans to meet with several hedge funds managers this month on a New York restaurant.

Efforts to get more involved in the notorious come back into his election corner for 2012 is to stem the recent defections of some other great sponsors, reported the Times.

Among them are Sky bridge capital founder Anthony Scaramucci, a vocal Obama supporter in 2008 which has decided to fight for the Republican contender Mitt Romney.

Scaramucci became a critic of Obama, will start in September when he told his former law school classmate that he felt "like a game," referring to what many money managers think is Obama administration anti-business policy.

Also switching their donation alliances is Steve Cohen's SAC capital, third paragraph, Dan Loeb and AQR capital Director Cliff Asness.

Obama has recruited Orin Kramer of Kramer Spellman and Eton Park Capital Management Eric Mindich recover time donors from the hedge fund world, now sceptical about President. In addition, he also reach out to employees in its 2008 election opponent, Hillary Clinton, as Avenue Capital Group Marc Lasry.

During the 2008 election was over 70% of campaign donations from the hedge fund industry to democratic candidates.

Go to New York article

Related articles
Sky Bridge CEO goes Head to Head with Obama
Factor as a Hedge

Hedge fund managers raise $ 28 M Kids ' charity

Hedge fund managers, British royalty, elite backers and celebrities gathered at the international children's charity absolute return for Kids (ARK) Thursday for a charity dinner.

Representing the hedge fund industry was ARK President Ian Wace Marshall Wace and ARK Foundation President Arpad Busson EMI Group.

The Duke and Duchess of Cambridge was also present, speaking on behalf of Prince William and Prince Harry, the Foundation's behalf.

After a tough time for hedge funds and fundraising campaign 2009 participants came out in full force, putting down over 16 000 $ per plate.

ARK's gala dinner served to raise 28 million dollars for SHEET applications.

ARK has pledged 1.6 million dollars for the treatment of root avi rus, which causes serious diarrhoea and can be fatal for children and infants. U.K. Government committed match funds for SHEET treatment programme in Zambia.

ARK also raised funds for the health of mothers and newborn babies programme in Zimbabwe.

Arpad Busson began in 2002, the ARK.

Over the past nine years, more than 200,000 children benefited from ARK program, according to a release.

Portent offers LightSquared games for exercise

Hedge fund manager Phil Falcone, who invested a lot in the development of a next-generation wireless networks through his stake in startup LightSquared, hope his investors will agree with him as he Rides the bet.

Founder of 6 billion dollars, Harbinger Capital Partners says redeeming investors that a proportion of their claims will be paid in special vehicles which tracks the Lightsquareds value.

A spokesman for the Harbinger declined to comment.

Falcone is particularly keen to retain as much of his Fund's money as possible in their wireless companies invested as LightSquared reportedly is about to sign an agreement to pay Sprint Nextel 20 billion dollars over 15 years of Sprint's existing network.

While some investors might not pleased that their liquidity is further bound, where Falcone's gamble pays off, they were able to do very well.

At a recent New York Investor Conference said Falcone LightSquared "will be public for a day".

Related articles
Falcones: Not your typical hedge fund pair

HFN industry report: April 2011

Click here to read the full report.

HFN industry overview: April 2011

May 31, 2011 with 4,117 hedge fund products, reporting, HFN Hedge Fund aggregated Index was + 1.42% in April and + 2.79% the year 2011, while the S & P 500 Total Return Index (S & P) was + 2.96% during the month and + 9.06% YTD.

Hedge fund industry highlights April:
• Total industry assets increase estimated at 2.26% to $ 2607 trillion in April. Performance accounted for the majority of the asset increases and net investors funds were positive for the 10th month.
• A falling US dollar and higher energy and precious metals resulted in strong results from foreign currency and natural resource strategies in April.
• Healthcare funds presented best equity market sector-oriented performance in April followed by the technology funds. Despite rising energy prices, energy sector fund equity returns below average.
• Japan focused funds again was negative during the month, Japan Index was 0,74% in April and 0.66% YTD.

CTA/managed futures and global macro strategies were the primary beneficiaries of the US dollar plunge into other major currencies, together with the increase of gold and almost 30% collection in silver prices. However, bond falling yield on United States's 10-year note, wounded several funds focused on Government related strategies. The Group was-0.02% in April to a few strong return from funds focused on EM sovereign credits.

HFN developed outliers ratio to determine which sectors producing high or low earnings outside of their normal ranges. Surprisingly, in April, mortgage focused funds had the lowest average ratio despite HFN Mortgage Index increases + 1.49%. Health care, the CTA, macro, technology and fusion arbitrage funds all had over average conditions in April. Convertible and credit arbitrage, along with mortgage strategies all had low numbers.

HFN regional benchmarks
Emerging market strategies again outperformed developed market focused resources in April, led by those investing in Brazil and China returned an average of + 2.34% and + 2.13%, respectively. Russia focused funds fell in the month,-1.54%, but is still the best regional classification 2011, + 4.38%.

Japan funds continued to struggle in the aftermath of the March natural disaster covered by 0,74% in April, while the Nikkei dropped + 0.97%. Japan funds lost an average of-5.30% over the last two months, driving the HFN Japan Index to negative territory for 2011. April was a rare instance of Japan funds be negative on average when the Nikkei rises. This happened only three other times in the last five years. In every previous occasion Nikkei bouncing off of a huge loss.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of April 2011 was $ 2607 billion, an increase of 2.26%, or 57.6 billion dollars from March.
• Performance accounted for an increase of 41.2 billion dollars and investors accounted for a net inflow of 16.5 billion dollars.
• The merged core (% access change due to investor funding/redemption) growth 0,65%, an increase from March, and over the last 12 month average.
• Total the notorious AUM is now 13% over the historic high set in the second quarter of 2008.

Net flow information, investors continue to show interest to invest directly into hedge funds. April inflow showed the tenth straight month of net appropriation and the Central growth was the second largest in 2011. The average growth over the past 12 months is 0.40%

Some sector specific feeds
• Japan fund investors flow data has been mixed, but the majority of the data reported to the HFN specify more funds were net investor inflows in April than the outflows.
• Commodity, credit arbitrage and macro strategies had the highest proportion of allocations in April. Emerging markets, market neutral equity and multi-strategy Fund information net redemptions.
• Managers located in developed Europe had the highest proportion of allocations in April followed by Asia, then North America.
• Funds with Europe as an investment region had also positive investor flows in April while they focused on Latin America and emerging Europe had net outflows.
Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was + 0.93% in April and + 3.30% this year.
• Distressed credit funds performed best in April, + 1.77% and mortgage funds continued to post positive return, + 1.39%.
• Fixed Income Fund's assets increased 1.84% in April to an estimated 684.8 billion dollars. Investors to NET $ 5.7 billion during the month.

Equity capital (EQ) strategies
• The average return of all equity focused strategies was + 1.11% in April and + 2.60% YTD.
• Funds investment in the health sector shares had the best return, + 4.60%, followed by those who invest in technology stocks, + 1.61%. Financial sector medium-low, but were positive, + 0.66%
• Equity assets increased approximately 2.72% to 858.6 billion dollars in April. Investors allocated NET 8,4 billion dollars during the month. a sharp increase from March.

Commodity and foreign exchange (FX) related strategies
• Broad natural resource commodity strategies was + 3.08% in April and + 3.56% YTD.
• Funds that invest in FX markets had its best month in more than four years, + 2.67%, and is + 1.61% YTD
• Funds focusing on metals markets are carried out, + 2.82%, as well as energy commodity funds (not EQ energy sector), + 2.20%. AGRI-focused funds lagged, + 0.18%, with relatively volatile return of fund performance.

Summary analysis
Investors ' interest in April continued to be above the 2010 rates, which has been the case in each of the first four months of 2011, proof that the big investors continue to increase funding for industry despite the performance is equity markets. With can come to a close and equity markets as broadly lower, it turns out that at least one month of the year in industry will surpass. Long/short equity strategies have lagged the S & P of the monthly average of 156 points this year, an indication of general defence reaction. It is probably for the benefit of multiple strategies in may, but reverse the April the development of a declining US dollar will likely result in lost in the macro and CTA strategies.

Click here to read the full report.

Hedge Fund Exec. Leaving Univ. Board of donations

The highest executive of the Chicago hedge fund-of-funds company has resigned from a post as a trustee at her alma mater after revelations of donations she made to abortion choice groups.

Roxanne Martino, President and CEO of the 10 billion dollar Aurora Investment Trust Management, resigned Wednesday from the University of Notre Dame's Board, according to an article in the Chicago Tribune.

Her resignation came after the Cardinal Newman society, a conservative Catholic watchdog for colleges and universities, reported in May that Martino donated $ 16,150 pro-choice political group EMILY's list between 2005 and 2008.

The company also pointed out the Tribune reported, that she donated money from 2004 to 2011 to Chicago Foundation for women, which awards grants to various women groups including planned parenthood in Illnois.

Martino, 1977 Notre Dame graduate, a statement released by the University, which said in part "I dearly love my alma mater, and remains firmly committed to all aspects of Catholic teaching and the Mission of Notre Dame. I had looked forward to contributing in this new role, but the current controversy just doesn't allow me to be effective.

Go to Chicago Tribune article

NEW Retirement official advises new bosses

An official for the New York State retirement pension up offered some important advice for new managers at a Conference in New York City investment.

Tyson Pratcher, Deputy comptroller for the 140.6 billion dollars New York State common retirement fund, said during a Panel discussion on the Consortium on Wednesday as the new 2011 managers struggle to manage the pension money will motivate the payment fees that they are looking for.

"We will negotiate. It will be a negotiation, "said Pratcher. "We can end up on these numbers, but you must prove to us why you need these numbers.

All-day conference brought out over 300 participants at a midtown Manhattan hotel. The purpose of the Conference was to bring together institutional investors, with women and minority-owned companies, as well as other mid to small size, new bosses.

Topics discussed ranged from providing seed money for new hedge funds for investment in Africa. The participants were representatives from the California public employees retirement system, State treasurers of Delaware and Rhode Iceland and managers from various investment groups.

Craig Huff, co-CEO of New York-based investment firm reservoir Capital Group, said in another panel that container for the 27 companies have provided seed money for the past 19 years, four were headed by minorities and women. But he said while the reservoir would bring in more investments with these types of new managers, fast seeking the same things each institutional investors want from their managers.

"We are just looking for the best talent, the best performance, the best return," said Huff.

As it turns out, the minority and women-based companies positive awards for their investment returns. Hedge fund research in their annual diversity Index, published in February, found that hedge funds are operated mainly by women and minorities have done far better than their more established peers.

Darrell Williams, a broker-dealer with Chicago-based Loop capital, the largest minority-owned investment bank in the United States, saw the benefits of collecting.

Consortium is a great opportunity to gather information and to educate ourselves about the possibilities that exist, "says Williams.

Shadow sows: will we or not we?

Reset, from our collective economic hangover.

Economists debate about the great recession of 2008 is to go for another round or if it is delayed in the history books.

You can see them lining up on both sides of the recession, closely followed by investors and, of course, politicians.

Nouriel Smirk, his gloomy prognostication and hard partying ways, is convinced that a double dip just around the corner. Oh, okay, he is 40% convinced, but it remains very high.

Then there are Ross DeVol, the Milken Institute, which has made his case for a moderate and sustainable recovery.

Gold afiocionados and hedge fund managers, John Paulson, Eric Mindich, David Einhorn and George Soros have all loaded up on variants of beautiful element, if it is in the form of ETFs, mining company shares or bullion itself, even if some of their reasoning on that particular play is murky. Is it because of inflation, or is it that when everything else is heck around you, you just want to hang on to something that has a nice heft to it?

The latest figures are not doing too much for the crystal globe gazers after long hot summer: the number of long-term unemployed (those jobless for 27 weeks or more) reduced the 323,000 in August, although the overall unemployment rate remained much the same of 9,6%. Total business sales were up to $ 1.09 trillion (budget day goal%) in August, while new orders for manufactured goods also increased 0.1 percent to 409.5 billion dollars. Retail trade and food services saw a small check-up (0.4%) to 363.7 billion dollars.

There are, of course, the housing market, which, after a slight increase on the back of a tax credit for first time home buyer, took an alarming dip in July (tax credits expired at the end of June). Sales of new homes was down 12.4% to 276,000.

Then there are those markets that aims to bedevil all and sundry. In addition had the famous "flash crash" on May 6, the Dow Jones Industrial average, fairly constant around 10,000 as it climbed by stagnant in November 2009. But every time fell during the magical six-figure numbers, there was a hue and cry about that double-dip recession, every minute is now, just around the corner, can see that it comes into focus in the near future ... Oh, not so much?

What Amuses The Shadow in all this is some of the hedge fund industry going from whining about how tough it is to monetize "those markets" and "in these economic times."

What happened to the "uncorrelated?" What happened to "alpha?"

Most importantly, what happened to "secured"?

Stanley Druckenmiller, one of the most famous managers, who worked with George Soros, when he made his winning bet on the British pound, closed his hedge fund Duquesne Capital Management. While the man is only right that time with his family and his charity after 30 years in the industry, were his reasons for getting that he does not like the stress of trying to navigate today's markets.

There is no doubt that times are tough. But is it not what hedge fund industry was born to do--take the risk of greater yield, but at the same time, to keep the hedges in place so that the risk would be handled correctly?

The great recession of 2008-2009 goes into the history books as only the, or if another year (or two) is added to its title, hedge funds should be out in choppy water, swim against the flow, make money for their investors and hedging risk.

HedgeFund.net views do not necessarily reflect the views expressed in this column.

Eisman leaves FrontPoint

FrontPoint Partners Portfolio Manager Steve Eisman finally takes a step which was said to be in the works for months: he leaves the company.

Although representatives of the FrontPoint and Eisman declined comment, saying he knows his plans to start working on its own Fund.

His leave-taking is scheduled for late June, the source said.

The latest development came after ex-FrontPoint healthcare Portfolio Manager Chip Skowron, Dr Jolanta was prosecuted for allegedly trading on inside information. Skowron, Dr Jolanta has not pleaded guilty and are fighting the charges.

Although Skowron, Dr Jolanta FrontPoint let go and cooperated in the investigation, the Government finances health care investors asked for about $ 3 billion of their money back and funds have been liquidated.

While management hoped to keep the FrontPoint damage is limited to the health portfolio, redemption requests continued to roll, and the company closed down its flagship multi strategy Fund.

This meant, in turn, the transfer of other assets, which struck Eismans means, someone familiar with the company said.

Earlier this year, when rumours appeared that Eisman can leave, he told me he would manage the money HedgeFund.net to FrontPoint "for many years to come."

FrontPoint has still four funds, including his latest $ 1 billion Fund is headed by Steve Czech.

Related articles
FrontPoint closing means
FrontPoint raises $ 1B for direct lending Fund

HFN strategy focus report: Market neutral equity

Error in deserializing body of reply message for operation 'Translate'. The maximum string content length quota (8192) has been exceeded while reading XML data. This quota may be increased by changing the MaxStringContentLength property on the XmlDictionaryReaderQuotas object used when creating the XML reader. Line 2, position 8312.
Error in deserializing body of reply message for operation 'Translate'. The maximum string content length quota (8192) has been exceeded while reading XML data. This quota may be increased by changing the MaxStringContentLength property on the XmlDictionaryReaderQuotas object used when creating the XML reader. Line 1, position 9071.
Click here to read the full report.

Overview: Market Neutral Equity Funds

The HFN active and inactive databases contain nearly 400 unique fund products with a primary investment strategy of investing in equity securities while maintaining a neutral market bias. The active commercial database contains 224 products, 60% of which are unique with 7 of the unique products structured as UCITS.

•The HFN Market Neutral Equity Index was +0.58% in April and +1.71% YTD. Returns have trailed the HFN Hedge Fund Aggregate Index by nearly half and are well below the S&P 1200 Global in 2011.
•HFN estimates total market neutral equity (MNEq) fund AUM of $43.9 billion at the end of April 2011. Market neutral fund AUM has increased 2.6% YTD.
•UCITS compliant MNEq funds have underperformed in recent months. A benchmark created for these funds was +0.32% in April, but -1.19% in 2011.

Performance of MNEq benchmarks perhaps is an incomplete portrait of the funds’ performance in recent years. Typically, MNEq funds are not designed to generate large monthly returns, but rather generate stable returns over time regardless of market movements. When many of these products are put together to form a benchmark, the resulting return stream shows little variance and relatively mediocre returns. In the remainder of this report we look more closely at sources of returns and asset flows to gain a better picture of the varying performance and trends of MNEq hedge funds.

Total Asset Levels and Flows
Market neutral equity funds had above average rates of re-demptions during the financial crisis and Madoff scandal. Allocations rose in 2010, but mediocre performance has again left the group with below average investor interest in 2011.

•Total AUM in MNEq funds was $43.9 billion as of April 2011, an increase of 2.6% in 2011 compared to an increase of 5.5% for the hedge fund industry.
•Investors accounted for a net redemption in April of $100 million and AUM is little changed in 2011 due solely to net investor flows. Performance has accounted for $1.0 billion increase in AUM in 2011.
•Investors have added a net $90 million to MNEq strategies in 2011 for a core growth rate of 0.2% which is well below the industry average of 2.3%.

Investors allocated an estimated $4.8 billion into MNEq strategies in 2010 which translates into a core growth rate of nearly 13%. This trailed only fixed income arbitrage and event driven funds among the larger strategies for the year. It is surprising that in 2011, given the economic environment, MNEq funds have not had more investor interest.

Influence of Performance on Investor Flows
HFN has completed studies of the relationship between past returns and recent investor allocations and for this report we looked more closely at these trends for MNEq strategies.

•The ten fastest growing (highest core growth rates) MNEq funds in 2011 had average returns of +13.8% in 2010. Their combined core growth rate in 2011 through April is 42%. Their average performance in 2011 is +6.2%. All of these factors are above the broad industry averages.
•The ten fastest shrinking MNEq funds in 2011 had average returns in 2010 of +2.0% and a combined core decline of 13% in 2011. Their average performance in 2011 is +0.9%. All of these factors are below the broad industry averages.
•The average 2010 performance of MNEq funds with core growth in 2011 was slightly more than double that of funds with core decline in 2011.

It is evident that prior performance played a key role in investor allocations in 2011. This is encouraging because it implies there is not a general lack of interest in market neutral strategies that resulted in the below average 2011 core growth rates, instead investors were simply less willing to allocate to under-performers in the space.

UCITS Products
There has been greater investor interest in UCITS structured MNEq funds than in non-UCITS products. Not all of the 7 MNEq UCITS products report AUM to HFN, but those that do reported above strategy and industry average growth rates, despite negative average returns in 2011. One fund in this group reported above strategy average (slightly below industry average) performance in 2011 and has also raised the most new capital of the group.

Sub-Sector Performance Breakdowns
The table to the right and the charts on the following page show recent aggregated performance for several sub-classifications and sub-styles of MNEq funds.

•Funds with a market neutral approach to sector specific equity markets have outperformed non-sector specific market neutral strategies.
•Only financial sector market neutral funds have out-performed their directional long/short counterparts in the last twelve months (LTM).
•LTM average annualized standard deviations for each market neutral sector group was a minimum of half that of their directional counterparts. In the case of energy funds, annualized volatility was 1/5th of L/S directional energy.
•Technology sector market neutral funds are the only group to outperform the HFN Aggregate Index in 2011 and also trail their directional brethren by the narrowest margin.
•Funds stating a focus on maintaining beta neutrality have outperformed those which operate a dollar neutral strategy while average returns from dedicated pairs trading funds have lagged both. However, within the pairs classification larger funds have performed relatively well.
•Though the group is small, FoFs focusing on MNEq strategies have underperformed, while those focusing on relative value strategies intended to be market neutral (credit arbitrage, event driven, etc) have performed well.

Breakdown by Region/Country Investment Market
A large amount of MNEq funds choose to focus their strategy in one particular geographical market. The table below has the relative performance across regions compared with the respective regional or country specific hedge fund benchmarks.

Market neutral equity strategies focusing on U.S. and European markets display the similar lagging return characteristics with favorable volatility, but funds focusing outside these markets have had more universally positive results.

•Funds targeting Brazilian markets have been able to produce strong returns, relative to the broad industry, over longer time frames and have outperformed the the more directional oriented HFN Brazil Index in 2011.
•Japan focused market neutral funds appeared better positioned to handle market declines resulting from the natural disaster in March and have outperformed directional Japan funds in 2011.

Going Forward
It appears that investors’ tolerance to remain invested, or allocate to underperforming market neutral equity strategies is low, but the appetite for those able to perform well is healthy. This makes the landscape slightly more difficult for market neutral equity managers because it is essentially against the strategy’s ethos to benefit from any broadly positive market movements, meaning they are less likely to benefit from forces beyond their expertise. However, to the benefit of funds that specialize on specific sectors or smaller investment regions, the trends which may separate winners from losers create more decisive trades, unlike a mega-cap environment where correlations may be greater.

Regardless, there are managers who have been efficient at generating acceptable, relatively low volatility returns across most classifications and they tend to reap the rewards in terms of allocations. However, the line appears finer between success and failure compared to directional strategies where value can be realized over longer time frames.

Click here to read the full report.

HFSB appoints new Chairman

Hedge Fund Standards Board (HFSB), which is an international group which promulgates best practices for hedge fund managers, named its new Chairman.

Dame Amelia Fawcett will replace Sir Andrew Large on 1 July, HFSB said in a statement.

Major has been temporary Chairman since December when the Organization's former President, Antonio Borges, left to become The Director of the International Monetary Fund.

Fawcett was a former member of the Court of Directors of the Bank of England and worked for almost 20 years at Morgan Stanley International, becomes vice President and chief operating officer of European activities.

A total of 46 international investors, including sovereign wealth funds, pension funds, endowment funds and the Fund's resources belong to the HFSB investors chapter.

Nearly 60 hedge fund managers account for more than 215 billion dollars in assets under management have signed HFSB standards for the industry.

Related articles
Investors play a greater role in Hedge Fund Standards Board

Pershing Square UPS stake in Family Dollar

Pershing Square Capital Management has increased its share in one of the nation's largest discount retailer.

Bill Ackman hedge fund company now owns more than 10.8 million shares in the Family Dollar, or 8.9% stake, according to a Securities and Exchange Commission filing.

It makes the Pershing Square, the largest shareholder in Matthews, N.C.-based discount chain, overtaking Nelson Peltz Trian Fund Management 6.1 million shares.

Pershing Square relationship to Family Dollar is not new. A previous SEC filing in may indicated Pershing Square which owns 3.3 million shares on March 31.

Ackman also touted the benefits of investing in 7,000 store chain last month at the Ira Sohn investment conference last month, it is a successful company which "continues to include even in difficult economic environments," due to the geographical convenience and low overhead.

Nationwide chain produced 7.8 billion dollars in revenue in 2010, according to its annual economic report.

Type of economic success that attracts activist investor Ackman and Peltz, who made an unsolicited offer in March to buy the Family Dollar for $ 55 to $ 60 per share in cash. But the chain Peltzs offer rejected, and conducted a "poison pill" to discourage a takeover.

A Pershing Square spokeswoman declined to comment on whether increased effort.

Related articles
Investment ideas Galore at Sohn Conference
Peltz takes stake in Family Dollar

Hedge Fund

Most individuals bear in mind what a mutual fund is and think a hedge fund investment is the same thing. They are correct in that a hedge fund is a group of investors that pool their money, just like a mutual fund. Most of the later investors lost all in their money, nevertheless how did Soros fair? An exact number is tough to decide due to the fact hedge income aren't needed to divulge outcomes nevertheless a New York Times write-up in 2004 estimated that Soros was worth additional than $11 billion and that the majority of that cash was attributed principally to his management of the Quantum Fund. George Soros, founder of the Quantum Fund within the late 1960's, probably the most successful hedge income of all time, had a few good years and created some money for the unique investors in addition to for himself. Hedge income, then again, don't have the same type of regulation that the mutual fund has.

A hedge fund investment is not a public supplying, nevertheless steadily a private limited partnership with the fund manager as the general partner. In fact, you must have a certain amount of wealth to spend money on a hedge fund as well as a needed amount of investment savvy. Because a large number of hedge income spend money on conventional in addition to nontraditional sources, it would be best to bear in mind how the marketplace affects a lot of these conventional investment vehicles. Hedge income are for that reason able to develop additional complicated investment structures which can profit in times of marketplace volatility, and even in a falling marketplace. Regular investment income are frequently limited to 'going lengthy " and getting bonds, equities or money marketplace instruments.

Even if this is your 1st fund investment of this sort, you have no doubt invested in other types of income, stocks, and/or bonds. Understanding how these basic investment types function is crucial 1st step. Find out the kinds of investments upon which the hedge fund will focus, and use this data to decide regardless of whether or not there's a solid foundation for the fund's underlying recommendations. Hedge income are frivolously regulated private income which might be frequently characterized by unconventional investment recommendations. Another technique, which one may adopt even as investing in hedge income, is 'Leverage'.

One solution to spend money on hedge income would be to spend money on an organization just prior to a big merger, as shares go up significantly once the merger occurs. However one should have a prior knowledge of the merger prior to getting large amounts of shares in an organization, as this can be a very high-risk investment strategy since some mergers may not occur at all. 'Selling Short' may be a popular strategy where one invests in it seems that undervalued securities, trading commodities and FX contracts, and takes advantage of the difference between present marketplace price as well as the best acquire price in events including mergers. Hedge income also have the ability to "short" those instruments they consider will fall in price. These income are normally additional aggressively managed and use advanced investment recommendations including leverage, lengthy, short and derivative positions in both domestic and international markets with the objective of generating high returns.

This indicates using borrowed capital in to own capital for investment. This technique is called 'Risk Arbitrage'. Hedge income really only benefit the fund operator who charges a set annual fee of 2 to four percent plus a performance incentive of 20 to 40 percent of gains. Eventually the fund busted so poor that it needed to be shut down. Not poor function if you'll come across it