Wed, 23 Jul 2008, 06:00

Hedgeweek

Eurex Clearing, part of the international derivatives exchange Eurex, is examining various formats for the introduction a central counterparty solution for products that are currently handled bilaterally on an over-the-counter basis, complementing current US initiatives with a European solution.

Wed, 23 Jul 2008, 00:01

Hedgeweek

Due to scheduled maintenance work across all of our websites, we will not be publishing daily newsletters either tomorrow, Thusrday 24 July or Friday 25 July. Normal service will resume on Monday 28 July.

Wed, 23 Jul 2008, 00:01

Hedgeweek

With markets worldwide suffering from the impact of the credit crunch over the past year and amid a drop in overall fund investment in Spain, stemming from market conditions but also tax changes, hedge funds and funds of funds were the only sector of the asset management industry to enjoy growth last year, albeit from a low base, given that the country's first domestic hedge funds were approved only in December 2006.

Tue, 22 Jul 2008, 21:44

Reuters

Veteran US lawyer Brendan Sullivan is joining the defense team of indicted former Bear Stearns hedge fund manager Ralph Cioffi, a person close to the matter said on Tuesday. Sullivan, a trial attorney who has represented high-profile clients including Iran-Contra figure Oliver North, will be an addition to Cioffi's existing defense team, said the person, who spoke on condition of anonymity.

Tue, 22 Jul 2008, 21:39

FT.com

Royal Bank of Scotland is embroiled in a multi-million pound lawsuit after reversing a EUR250m (USD394m) investment by ABN Amro in a London hedge fund shortly after its takeover of the Dutch bank. Merebis Capital Management has filed a case in London's High Court, claiming it is owed a penalty fee of GBP17.8m (USD35m) for the early withdrawal by ABN, which was repaid most of its investment earlier this month, prompting the closure of the hedge fund.

Tue, 22 Jul 2008, 20:45

Forbes.com

The US government can't really regulate living hedge funds, but it's looking at a way to oversee dying ones. On Tuesday, Treasury Secretary Hank Paulson said that in cases of insolvency, he wanted "additional powers to manage the resolution, or wind-down, of large nondepository financial institutions, such as larger hedge funds, so as to limit the impact of a failure on the broader financial system."

Tue, 22 Jul 2008, 20:02

Hedgeweek

Citi has announced the appointments of Christopher Greer, Sean McGinty and Norman Escoffery to senior roles in its Americas prime finance business, hires that the group says underscore its commitment to the continued development and strengthening of the business.

Tue, 22 Jul 2008, 20:00

Hedgeweek

The Managed Funds Association and the Coalition of Private Investment Companies have written to Securities and Exchange Commission chairman Christopher Cox, urging the SEC not to extend its emergency order on short selling beyond its expiration date on July 29, or beyond the current list of designated securities.

Tue, 22 Jul 2008, 19:51

Hedgeweek

Fund of hedge funds manager Nedgroup Investments has won a USD9m mandate from Dutch wealth management firm Attica Vermogensbeheer for its Premium Portfolio Fund, which has now raised around USD35m from institutional investors since its launch in February.

Tue, 22 Jul 2008, 19:27

Financial News

Citigroup has tapped Lehman Brothers for two of three new appointments to its prime brokerage unit in an expansion of the business, as banks compete for a slice of the USD1.9 trillion (GBP1.2 trillion) hedge fund industry. Christopher Greer will serve as head of prime finance sales and will be responsible for business development and capital introductions. Sean McGinty will be head of product development where he will focus on developing services. Norman Escoffery will be head of technology to improve trading, reporting, stock borrowing and related functions.

Tue, 22 Jul 2008, 19:17

The Times

Absolute Capital Management, the embattled USD2.3 billion hedge fund, has plunged into a loss for the full year and suffered a sharp slide in investment performance in the wake of the shock exit of its star trader, Florian Homm. Jonathan Treacher, the chairman, also blamed "the worst credit crisis in history" for the disastrous annual performance of some of AbCap's funds. Its Octane and European Catalyst funds, both the ultimate responsibility of Mr Homm, posted heavy losses of 25.8 per cent and 24.3 per cent respectively for the year to the end of December, AbCap said today.

Tue, 22 Jul 2008, 17:35

FinAlternatives

Donald Trump Jr is planning a real estate hedge fund focusing on luxury properties in India. The son of famed real estate developer and media personality Donald Trump will raise as much as USD1 billion for the privately-held fund, Bloomberg News report. Analysts expect property prices in the subcontinent to drop by about 20%, creating opportunities for the hedge fund.

Tue, 22 Jul 2008, 16:56

Hedge Funds Review

Fund of hedge funds Nedgroup Investments has won a USD9 million mandate for its Premium Portfolio Fund from asset management company Attica Vermogensbeheer. The fund, which launched in February 2008, has now raised around USD35 million from institutional investors. The Premium Portfolio Fund is made up of asset backed lending, specialised distressed debt, structured finance, multi strategy, insurance and other niche strategies. The fund targets a return of Libor+ 8% to 12% net of fees a year over the medium to long term, with a volatility of less than 3%.

Tue, 22 Jul 2008, 16:55

Professional Pensions

Nedgroup Investments has announced its premium portfolio fund has raised around USD35m (GBP17.5m) from institutional investors since its launch in February. The fund has returned 3.04pc since launch - compared with a fall in the Barclays and EurekaHedge indices of between 2pc and 2.5pc for the year. This comes after the firm announced it had won a USD9m mandate from asset management firm Attica Vermogensbeheer.

Tue, 22 Jul 2008, 15:48

The Guardian

Funds of hedge fund managers are looking to global macro funds to try and steer clear of the mess thrown up by the credit crisis while cautiously dipping their toes in a small pool of more risky assets, a Reuters poll found. Stormy markets have torn through the hedge fund market this year, forcing many to shut up shop and others to tumble, but most have still managed to keep well ahead of the severe double digit losses suffered by global stock markets in the first half of the year.

Tue, 22 Jul 2008, 15:20

IPE.com

Newsquest Pension Scheme has awarded two fund of hedge fund mandates, valued at GBP40m (EUR50m), which is equivalent to 10% of scheme assets. Scheme trustees have agreed to invest GBP25m in a diversified multi-strategy fund of hedge fund managed by Stenham Universal Fund, while a further GBP15m has been awarded to Liongate Capital Management's multi-strategy fund.

Tue, 22 Jul 2008, 15:05

IPE.com

The Association Française de la Gestion Financière (AFG), the French asset management association, today said it is confident the European Commission will include full fund passports as an element of the fourth Undertakings in Collective Investments and Securities (UCITS) directive. A spokeswoman for AFG told IPE today since only Luxembourg and Ireland oppose the implementation of so-called management company passports in the draft directive, AFG does not see why this element should be omitted when, for instance, a proper product passport is not.

Tue, 22 Jul 2008, 14:30

IFA Online

Octopus Invstments has today launched a VCT portfolio services for UK investors aimed at generating average returns of 10% per annum over the medium-term. The portfolio service will invest in a diverse range of between 10 and 15 mature generalist AIM VCTs, including Octopus's own trusts. VCTs with quality underlying investments will be chosen, according to Octopus , and track-record coupled with consistent dividend delivery will also be important considerations.

Tue, 22 Jul 2008, 14:15

CNNMoney

Advent Software, Inc, a leading provider of software and services for the global investment management industry, today announced that it has formed a consulting alliance with Softagon Corporation, a leading provider of custom integration and data management consulting services to hedge funds. Softagon will provide customized software and integration platforms to Advent clients using Geneva®, Advent's award-winning global investment management and accounting platform. Softagon has a proven track record of working with hedge funds and prime brokers that have deployed Geneva® and other Advent technologies.

Tue, 22 Jul 2008, 14:09

MarketWatch

Two hedge funds on Tuesday released a letter to CSX Corp. (CSX: 62.59, +0.68, +1.1%) demanding that the railroad operator go forward with seating four nominees to its board of directors or it would take action. The Children's Investment Fund Management LLP and 3G Capital Partners took issue with CSX's insistence that it locate 122,229 "lost votes" that it says would not affect the outcome of the recent shareholder vote that put the four prospective directors on the board. CSX is threatening to delay enacting the election results until September, the groups say. The two funds were victorious earlier this month in getting four of their nominees elected to the board after a controversial proxy battle.

Tue, 22 Jul 2008, 13:29

New York Times

Despite tough market conditions and a new rules aimed a curbing certain short-selling practices, some of last year's hedge fund winners are coming out smelling like roses, The Wall Street Journal reported. John Paulson's Paulson & Company is up as much as 20 per cent in some of his hedge funds through June 30, according to The Journal. Much of his success, the newspaper said, can be credited to continued bets on the woes of financial companies.

Tue, 22 Jul 2008, 12:18

Euromoney Institutional Investor

Bahrain-based Family Office Company has wrapped up a USD31.55 million private placement for its Family Sharia Fund, Gulf Daily News reports. The multi-asset class investment fund provides exposure to a variety of Sharia- compliant investments. Family Office has now nominated adviser in London, Blomfield Corporate Finance, to proceed with an application to have the entire stock of the fund listed on the Alternative Investment Market on the London Stock Exchange, a total of 31,550,000 ordinary shares at a placing price of $1 per share.

Tue, 22 Jul 2008, 12:18

Euromoney Institutional Investor

In a bid to hold back rising food prices, sugar refining group Tate & Lyle's ceo Iain Ferguson is calling for hedge funds and other commodity speculators to face greater regulation, the Telegraph reports. Hedge funds have been blamed for contributing to the rocketing price of commodities including oil, wheat and corn by speculating in the futures market with highly leveraged bets on forward prices. Tate & Lyle boss Iain Ferguson called for limits to be placed on speculators' involvement in the futures market and the way hedge funds and others finance their activity.

Tue, 22 Jul 2008, 12:06

Euromoney Institutional Investor

Dubai-based Millennium Finance Corp is preparing its first Shariah-compliance hedge fund for launch with UK-based hedge fund manager Man Group, Arabian Business reports. The fund, which will be compliant with Islamic law, is in the fundraising stages, said Millennium Managing Director Ahmad Atwan, who declined to give AB more details. "It is something that is going to sit very well in the marketplace...we plan to do a few more sharia-compliant hedge funds after that," Atwan said.

Tue, 22 Jul 2008, 11:46

Euromoney Institutional Investor

Allocations into hedge funds slowed to their lowest quarterly level since Q4 2005 as volatile financial markets prompted investors to adjust strategy exposures, according to information released by Hedge Fund Research, a hedge fund industry data provider. Investors allocated USD12.5 billion of new capital to the industry for the quarter, bringing the total capital flows for 2008 to approximately USD29 billion. In comparison, the first six months of 2007 saw an inflow of approximately USD118 billion, in a year that ended with a record total inflow of USD194.5 billion. Flows for Q2 2007 were USD58.7 billion.

Tue, 22 Jul 2008, 00:00

Structured Products Online

Vito Schiro has been appointed head of global structured products by UBS while continuing as head of European Equity Derivative Sales. Schiro will report to Jason Barron in equities and Fabian Shey in FICC, a group that was formed by integrating the fixed-income and money markets, currencies and commodities businesses. The appointment marks an adjustment to an integration of UBS' structured products team which was initiated in November 2007, when André Esteves was named global head of fixed income appointed global head of the FICC, following which Steve Dugdale and Andy Felce were named co-heads of Structured Products within the FICC group.

Sun, 22 Jun 2008, 09:30

CityWire

Investment research firm Allenbridge Group has launched its first fund, the EFA Allenbridge Strategic Alpha fund, structured as a fund of funds aimed at generating returns from global equity markets and alternative asset classes. Managed by Allenbridge's director of private client services, Jason Day, as well as the head of fund research, Jonathan Wallis, the fund is a response to demand from the firm's retail clients, seeking access to a portfolio of Allenbridge's best fund ideas.