Pension plan will devote 100 million dollars to long/short credit hedge fund Saba Capital Management, while the remaining $ 100 million is dedicated to the Shaw as part of its global macro/CTA portfolio, by HFMWeek.
SDCERA currently allocates approximately 1.7 billion dollars to 17 global macro and relative value hedge funds.
Go to HFMWeek article
Crude market started on a bull run to $ 67 in May 2010. The price of crude oil over the next year is estimated at over $ 114. Prices have fallen since May of this year, and they are now trading in the range of $ 95. It's just a correction of the price or the beginning of something much bigger? We believe that this setback is temporary and that prices will recover to over $ 140 in the next 12 months. There are many reasons for this belief.
We are in the midst of a major bull commodity market that began in late 2001. Since then, the CRB index more than doubled, up to the 2008 financial crisis. This crisis was, in fact, prices are back to where they were in 2001 in about 6 months! This was a crash in the commodity markets caused by the financial meltdown, but how was this crash will play it will end with a bearish 1929-results or a 1987 bullish results? 1987 Outcome seems far more likely because just as it was in the late 1980s financial market background for raw materials, in particular energy, is very bullish.
It is well publicized that China, India and others that comes out of the dark ages, is growing fast and consumes raw materials with a tremendous speed. This is likely to continue for years to come.
The Federal Reserve led by Ben Bernanke is determined to keep rates low as possible for as long as possible. Bernanke is one of the world's experts on depression and deflation, and he will do everything in its power to ensure that this does not happen on his watch.
From the technical perspective painting energy markets is also a very bullish picture. One of the reports we analyse carefully is a commitment of traders report. This report, in fact, you can see which positions are held by the class of traders. From looking at this for many years certain movements of various categories of operators can be very enlightening.
When crude prices were collected until the summer of this year the small trader and money manager has the majority of purchases that swap dealers and commercial sale. This is one of the reasons that we were very cautious, calls for a correction. That the patch has been developed commercially and swap space traders bought aggressively while the guys who bought near the tops had to sale. This type of movement in the commitment profile is typical of a bull market correction.
But knowing the threats in the long term, do not trade or invest in the energy arena (a) sure thing ...2008 is a perfect example of this. If energy prices will continue higher what is the best way to participate with most loan with a limited risk. In our opinion it either trading futures energy market or holds a position in an emerging and extraction companies. At this time, we believe that there are better leveraged play with a defined risk in an emerging market exploration and production companies than in the future because of the available Outlook for economic growth in an otherwise cyclical sector.
Invest in small growth companies, with a solid management team in a sector that is beneficial is a theme in level III Trading Partners L.P. which has proven to be a steadfast investment thesis. After analyzing many businesses that fit our criteria, we would like to highlight one of these companies.
Treaty Energy Corporation (symbol TECO) are involved in the acquisition, development and production of oil and natural gas. Treaty acquires and develops oil and gas leases that has "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to the large exploration oriented oil and gas companies. This strategy can the Treaty to develop and produce oil and natural gas with extremely reduces risk, cost and time involved in traditional exploration. For more information, go to: www.treatyenergy.com.
The Treaty is a 22 million dollar market cap companies in the bud that holds a favorable risk reward opportunity and growth profile that cannot be ignored. The Treaty sold his first 550 barrels of oil last month on $ 3 contribution to WTI. They planned to sell another 850 BARRELS in July and 1,250 BARRELS in August. This growth equal to 32%, which has endorsed the Treaty, we believe that the Treaty may have to 1 000 barrels per day within 12 months. The Treaty is the operator in all its sites to keep their (f) and (d) the costs to an absolute minimum and respect their own wells. They own all their own equipment and loans of around 3,800 net acres in Louisiana, Kansas and Texas.
Current gross revenues estimated at $ 9.25 million to 22 million dollars next year and estimated 33.6 million dollars the following year. This means that an estimated net income of $2,356,932 in the current year, next year and $8,742,479 $15,751,024 out in 2013.
Earnings per share during the year is estimated at $; 00393 will $. 01475, will be $. 46 31 2013. With 600 million shares outstanding and a 25 multiple on earnings, we believe true value for this company is currently $. 09 will be $. 36 next year and $. 65 in 2013. All figures are estimated at $ 80 per barrel of oil, and laid down in this article, we believe that prices will nearly double over the next 12 months.
Treaty energy parts currently trading in the $ 5 range. We believe that the risk reward at current levels is very attractive with a 10-20 times the current share price with a limited handicap. Cash flow from continuing operations should also be sufficient to finance their sea applications.
Treaty energy currently has approximately $ 750,000 in net debt down from $ 1.8 million in the first quarter of this year. This reduction of debt is a trend that the Treaty has undertaken to continue. All these factors together make us believe that the Treaty is a major energy investment opportunity.
In addition to their North American sea program owns the Treaty power also a lease in partnership with Princess Petroleum which contains 1.8 million acres offshore and 200,000 acres on the beach in the country of Belize. This corresponds to one of the largest concessions in the country. Treaty energy has revenue from Belize built into one of their models.
Treaty energy has identified eight sea sites by geosensing, geochemistry and radio measurements. There is a private energy companies have drilled 14 sites in Belize, average total production of approximately 7,500 barrels per day. Treaty energy has 200,000 acres, with a similar geological formation located in the same area found commercial pay.
Through different techniques, proximity to a commercial producing area and two years of extensive work by the sea team at Treaty of energy, we believe that there can be a "game changer" for this emerging and production companies.
Level III trading L.P. have a status of the Treaty, the Energy Corporation.
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Guest article: Gold Top?
Bruce Gwyn
Managing Partner
Level III trade
Web: http://www.level3trading.com
e-mail: bgwyn@level3trading.com
The views expressed in the article guest do not necessarily reflect the views of HedgeFund.net.
London-based Apson capital, formed by Edouard Salet, opened the Fund with 10 million dollars on July 5, according to a Securities and Exchange Commission filing.
The Fund's launch confirmed for HedgeFund.net a Apson representative on Tuesday. The representative also said the Fund is opened by more than 10 million dollars but declined to offer a certain amount.
Apson is one of several hedge funds company started by former employees of the now-defunct Minnesota firm Deephaven, sold by its parent company Knight Capital 2009 to Strong investment after having received 32% of the losses in 2008.
Tony Chedraoui which drove Deephavens focused on European hedge fund, launched with a Tyre capital reported $ 800 million at the end of 2009. Sanjay Bhatia, that drove Asian investment in Deephaven also began, isometric Capital Management in autumn 2009.
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A meeting of potential donors established by Kenneth Langone, co-founder of Home Depot, took place at a Manhattan on Tuesday, a Politico.com-report.
Participants with billionaire hedge fund managers Stanley Druckenmiller, founder of the now closed Duquesne capital and Paul Tudor Jones of Tudor investments.
Politico reported that participants in the room complained that they voted for President Barack Obama but was now "greatly disappointed" with what they saw as him carrying on "class warfare."
Hedge fund managers have shrink from supports Obama's 2012 presidential run in opposition to his call for the regulation of the hedge fund industry. Obama has tried to bring them back into the fold while his choice requires an elimination of the tax break for hedge funds and private equity managers as part of the debt ceiling talks.
But Christie when entertaining offers to become a candidate, whether from Iowa businessmen or hedge fund bigwigs, keeps repeating the mantra that he did not run for any higher office. He did so again at Manhattan meeting when he said, "I do not run, but I came because Langone is so aggressive, he basically just physically shook me up."
Christie also is said to have told them at the meeting that he believed he could win if he ran but was forced to take into account the implications of serving in the White House on his family.
Jones and Druckenmiller is not the only two hedge funds bigwigs who would like to see a Christie Presidency. David Tepper Appaloosa management and Pennant Capital Management co-founder Alan Fournier has expressed his support of Christie's education policy in New Jersey as more Charter schools.
A representative of Gov. Christie would not be reached immediately for comment by HedgeFund.net on the report. A representative of Jones did not return a call before the deadline for this article. Druckenmiller could not be reached for comment.
Go to the Newsweek article
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The article on 61-year-old founder of Bridgewater Associates showing some other aspects of Dalio, described as "preposterously wealthy".
Among hilarious is his confrontational and unorthodox leadership style, his profitable investment strategies and his fondness for hunting game as he says, "it is always a question of controlling the risk."
In 1975 founded Bridgewater Dalio, one of the top hedge fund company in the world with more than 62 billion dollars in assets under management.
He ranked second in AR magazine's annual "Rich list" top 25 hedge fund managers in 2010, earn 3.1 billion dollars.
Go to the New Yorker article
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Chiesi, 45, who plead guilty in Galleon group insider trading, was sentenced to two years of supervised release with 250 hours of community service by federal judge Richard Holwell in Manhattan Court.
Chiesi, a former Executive with the New Castle hedge fund firm, pleaded guilty to three counts of conspiracy to commit securities fraud in January. Specifically, she admitted to passing along inside information about IBM, AMD and Sun Microsystems to her boss at New Castle, Mark Kurland, and to the Galleon Group founder Raj Rajaratnam.
Rajaratnam was convicted of 14 counts of insider trading in May and faces at least 20 years in prison at his sentencing on Sept. 27.
Chiesi received notoriety during Rajnaratnams trial when prosecutors played tapes of her conversations with profanity laced Rajnaratnam.
Sentencing guidelines called for her to serve a 37-46 month prison sentence, while her lawyers argued for a 27-month prison sentence.
Chiesi held a press conference outside the courthouse after her punishment where her lawyer, Alan Kaufman, said his client will serve his sentence and move on with her life.
Chiesi up media when asked what she expected from his prison time.
"I believe in order to survive," said Chiesi in a surprisingly positive mood.
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Richard Gerson, who worked for 15 years during John Griffin on Blue Ridge, are attracting investors is a fund that is estimated to open with $ 1 billion, according to HFAlert report.
The Fund's new Office is set to open in New York and begins to trade global shares vehicles as early as next year.
Gerson has also brought on board as Martin Byman chief operating officer for the new Fund. Byman was formerly group leader of Europe's leading brokerage at Morgan Stanley.
Go to the HFAlert.com article
Alternative Investment Management Association, which has 1,250 companies members even in the hedge fund industry, argued that hedge funds are not a "risk for financial stability" throughout the world.
The newly created United States-based financial stability Oversight Council views as non-bank financial firms should be regarded as "systemically important" and hence be subject to additional regulation of the Federal Reserve.
One of AIMAS argument is that hedge funds industry, with about 10,000 hedge funds manage a combined $ 2 trillion in assets, is still small compared with other financial sectors like investment banking.
AIMA also pointed out that more than 1,400 individual hedge funds in 2008, at the height of the financial crisis has closed or were dismantled without prejudice "the stability of the financial system at large."
AIMA President Todd Groome said, "2008 experience shows that hedge funds are ' safe to fail", even if they are not fail-safe. Furthermore, hedge fund activities not usually pro-cyclical market dynamics, they tend to be Luther or to seek market inefficiencies and through their investment activities tend to increase the effectiveness of the markets. "
Groome was recognised by hedge fund managers, register with the SEC as a means of the regulation.
The Securities and Exchange Commission adopted new rules in June, introduced under bill economic reform Dodd-Frank requires hedge fund companies as well as private investment advisors with assets under management of more than $ 150 million must register with the SEC. Rules take effect in March.
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Overview: hedge funds invest in MEA
HFN active and inactive databases have performance and asset information for 85 unique funds investing primarily in the region of the Middle East and Africa (MEA). Of these, 59 unique products of the active database. For this report, are resources grouped into one of three classifications for their regional investment focus, the Middle East/North Africa, Pan-Africa and South Africa only.
• South Africa focused funds performed well in 2011 after backlogged 2010 while MENA funds have lagged the rest of the hedge fund industry over the past three years.
• Pan-Africa funds directly the hedge fund industry since becoming a recognizably classification in 2006, but since the beginning of the uprising in Tunisia and Egypt, average performance is almost 6%.
• HFN estimates the total assets in funds that invest primarily in all three regions was 8.78 billion dollars at the end of May 2011 with AUM in MENA strategies narrowly higher than South Africa.
Months after the initiation of the revolutions in Tunisia and Egypt, MENA average fell almost 6% and Pan-African agents decreased more than 6% while South Africa focused funds increased 7%. Themes such as investment in regions vary, obviously, but each face serious headwinds shortly.
The following pages break down the qualitative composition, investors flow trends and performance of MEA focused resources to shed light on the source of their different yields and current investor sentiment against these products.
HFN database composition and its properties
The qualitative features of the Middle East and Africa focused resources in HFN database gives an indication of the dominant characteristics of these products:
• South Africa focused Fund launches was greatest in 2003 and continued in the above average by 2006, but has declined while the liquidations of cow's milk added in 2010.
• Mena Fund launches peaked in 2006 and 2007, followed by the above, average liquidation in 2009. New launches have not been near the pre-2008 prices.
• Pan-Africa funds is a relatively new group, with the launches were originally ursprungshalten 2007 and again reaches a high 2010.
• Compared to MENA focused resources, South Africa and the Pan-African agents had minimal shutdowns after the financial crisis.
• The majority of MENA funds operated by the arab States and South Africa running out in South Africa funds, but the majority of the Pan-Africa funds operated out of London.
Total assets levels
HFN has not historically tracked assets and routes for Pan-Africa and South Africa focused means of MENA. In addition, estimates the AUM below for funds which invest mainly in the regions and the total hedge fund AUM invested in the region. Total AUM hedge fund invested in the region is probably much higher because of the multi-regional emerging market funds, including investing:
• Mena focused funds AUM peaked in Q2 2008 nearly 10 billion dollars. The Summit was concurrent with high total hedge fund industry AUM, while supply decline after the financial crisis was more dramatic and recovery slower. MENA Fund AUM reached a low of less than 4 billion dollars in Q1 2009, and is now only slightly larger.
• Investor reactions to civilian uprising in the MENA region was net redemption 2011. Redemption from MENA focused strategies speeded up in March and April 2011 peaked.
• South Africa focused funds had approximately 3.27 billion dollars in AUM at end of May. Investor redemption passed appropriation during the first three quarters of 2010, but the trend seems to have reversed in 2011, but the growth has been slow.
• Pan-Africa focus Fund AUM reached estimated 977 million dollars at the end of May 2011. Despite good performance relative to industry in 2010, there were net redemption during the year. Core growth in 2011 is 2.8 per cent, which is slightly lower than average in the industry.
Correlation of returns
Figure 6 shows the relationship between monthly for MEA focused funds to other regional and country specific emerging market HFN indices and relevant equity benchmarks for three specified time frames. Information is useful to compare historical relationships and how they have changed.
• South Africa focused funds have historically had a low correlation to the country's stock markets. The ratio has been reversed in the last 12 months.
• Mena focused funds historically had low but positive correlations to other emerging markets and regional equity benchmarks, but these correlations increased and be high after the financial crisis.
• Pan-African Fund correlations have been added during the financial crisis, but has fallen back in recent months, but they still remain above historical levels.
• Mena fund performance resembles most closely that traditional emerging markets, while the Pan-Africa and South Africa funds tend to be less correlated. This illustrates the different growth stories in Africa and the larger emerging markets which are more closely related to the buy-out market influences.
Compared to other emerging markets
The table below, Figure 7 and 8 and the table at the bottom of the report, compare the returns from Mea funds to emerging market hedge fund HFN indices and regional equity indices.
• Since 2001, South Africa focused funds crisis management MSCI South Africa Index during the down months only once, the best against the record in the three groups.
• The average outperformance in the index, with South Africa funds down months since 2001 is more than 700 points. The average underperforming during positive index is slightly worse months than 450 bps.
• In the past two years, South Africa funds have seen their average outperformance in equity benchmark down months decreased and have also seen underperforming during index up months from worsening.
When comparing historical returns the last two years, only MENA resources has continued to produce returns with greater average outperformance in equity index benchmark down months than average underperforming under benchmark up-months.
Middle East and Africa UCITS products and funds of funds
HFN can create benchmarks for further subclassification of MEA products that meet the standards set out in the directive on UCITS funds of funds investing in the region.
Forward
Investors ' interest in funds focused on the markets of the Middle East and Africa have been below average for the year 2011, which is a clear indication investors aren't comfortable with the current social and political climates in the region. Outside of South Africa, has so far shown decision performance wise. In hedge fund space there is a history of the returns covered by investors who recognizes emerging opportunities sooner than the rest. The last known example is in based security after the financial crisis.
There are a number of reports from the Oakland Institute require attention for private investments, including hedge funds and other institutional investors, in soil in Africa with an eye on the development of agriculture. Reports that raises the questions of the extent to which government interests adapt to the local population and to long-term best use of land, but the existence of the research is evidence of potentially profitable opportunities in these markets. Still, there will always be political uncertainty and given the effectiveness of the insurgency in northern countries, there is still a high risk to invest in the region. In addition, it is important to remember that past performance has proven that the MENA and Pan-Africa focused funds showed high correlation to developed markets in times of global stress.
Click here to read the full report.
The financial industry regulatory authority ordered BofA Merrill pay Rosen capital advisors 68.9 million dollars on Tuesday, according to a FINRA documents.
Rosen was out for 90 million dollars when it filed an arbitration claim against Merrill Lynch Professional Clearing Corp. in 2009 argues that Merrill had carried out "an unexpectedly wide margin requirements which caused losses in two hedge funds", both operated by Rosen.
Hedge Fund firm had accused Merrill of fraud, negligence, breach of contract, and acting in bad faith ", as in the previous arbitration ruling.
BofA Merrill, plan, according to news reports, to overturn the award settlement.
Einhorn, the head of hedge fund firm Greenlight capital, has been in negotiations with the Mets since May to deal with him as a minority owner for an investment of $ 200 million.
Exclusive talks between Einhorn and team ownership would be completed by 30 June, according to an article in the New York Post. Discussions in progress rather than as a team spokesman told the newspaper.
Einhorn to begin with the agreement the Mets is interesting because he could end up with a controlling 60% of the shares, for an additional $ 1, unless the team has to pay back the $ 200 million to him within three years. But if the team pays back the money, he would end up with only 16% ownership.
Team owner Fred Wilpon and Saul Katz offered a share in the group to cover liabilities and costs, due in part to a $ 1 billion lawsuit between Irving Picard, the trustee in bankruptcy of Bernard Madoff case for their alleged involvement in Madoff's Ponzi scheme.
Go to the New York Post article
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The pension has doubled the allocation for Avenue Capital Management to 500 million dollars, and combined two existing commitments to the D.E. Shaw Group which amounted to 450 million dollars and added another $ 300 million, according to a report in pensions and investments.
Avenue capital, run by Marc Lasry, 13.7 billion dollars in assets under management.
D.E. Shaw, founded by David Shaw, has over 14 billion dollars of AUM.
Go to pensions and investments
The company realized sales of 9 billion dollars with a net inflow of $ 3.7 billion by 5.3 billion dollars in redemption, group Man said in a statement.
The international hedge fund is credited to its recently launched open ended Fund in Japan, which as of 30 June was USD 2.3 billion in assets under management, to help lift sales in 2Q 2011.
The Group was said, however, Japan Fund is 12% below its peak in order to enable the company to earn performance fees.
The man group has currently 71 billion dollars in assets under management from $ 69.1 billion AUM in the first quarter ended March 31.
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Azentus Capital Management, a hedge fund, as presented in April by former Goldman Sachs Group pharmaceutical trader Morgan Sze, has greater assets to more than 1.9 billion dollars, according to Bloomberg.
Azentus, which launched with over 1 billion dollars, plans to stop accepting new money when the Fund hits $ 2 billion.
Sze's hedge fund, which employs a variety of investment strategies, is considered one of the largest in Asia, home to a 152 billion dollar hedge fund industry.
Go to the Bloomberg article
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Einhorn, had instead a tone of resignation in a letter to shareholders, according to news reports.
GreenLight capital had owned 8.5 million shares of Yahoo! March 31, according to a Securities and Exchange Commission filing.
But in Einhorns letters, published by online blog zero Hedge, as he has some of the blame for the sell-off to an ongoing dispute between Yahoo! and China's Alibaba group over ownership Alibaba's online payments business, Alipay to a company owned separately by Alibaba's CEO.
Einhorn had bought Yahoo! shares earlier this year on the online company's stake in Alibaba.
But he expressed in the letter to Greenlight will not be involved in Yahoo! and Alibabas and back, if not in part, "that was what we signed up for. We ended with a modest loss. "
Einhorn has since again, have to worry about other things such as completed his purchase of a stake in the New York Mets.
Go to zero Hedge article
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