Managers Face Tough Choice Over IRS Edict
There are early indications that at least some fund operators plan to take advantage of a recent IRS decree on deferred compensation, though it’s unclear to what extent managers will embrace the opportunity.Read more.
Deals Reshuffle Fund Administrator Ranks
The pending merger of Vastardis Capital and Conifer Group will create a fund-administration business that will leapfrog Credit Suisse and UBS among the largest administrators catering to SEC-registered managers.Read more.
More Funds Embracing Web-Based Products
Front-office technology vendors peddling cloud-based portfolio systems are rapidly gaining on rivals still focused on software products requiring on-site installation and maintenance.Read more.
Winton Versus Peers: The Same, Only Better
The chief investment officer of Winton Capital has pointed out to investors that the returns of the flagship Winton Futures Fund are increasingly correlated to those of other large managed-futures vehicles.Read more.
Hedge Funds Plodding Into Mutual Funds
Hedge fund companies haven’t rushed into the mutual fund business in the large numbers expected after the financial crisis, but expectations are that the trend will build over the long term.Read more.
New Management Teams Bolster Balyasny
Balyasny Asset Management has added two portfolio managers to its already growing staff — an expansion brought on at least partly by plans to resume accepting investor contributions for the firm’s flagship hedge fund.Read more.
Dyal, in Deal-Making Spree, Backs Halcyon
Dyal Capital, a Neuberger Berman vehicle that acquires minority interests in hedge fund firms, wrapped up a flurry of yearend deal making with the purchase of a stake in the $12 billion Halcyon Asset Management.Read more.
Arrowstreet Disclosure Prompts Resignation
A Harvard economist who sat on the board of $35 billion Arrowstreet Capital abruptly quit the post when a regulatory filing by the firm referenced a prominent civil-fraud case he had previously settled.Read more.
Lampert’s ESL Loses Staff in Florida Move
Eddie Lampert may have moved his ESL Investments to Miami, but virtually all of his staff remains in Greenwich, Conn., where they now work for former ESL chief financial officer Adrian Maizey.Read more.
Activist Funds on High Alert Over Rule 13D
Activist players including Jana Partners and Pershing Square are gearing up to counter tentative moves by the SEC to shorten the disclosure window for investors that buy large blocks of a company’s stock.Read more.
Increase in Hiring Driven by Operations Side
The industry’s weak showing last year may have put a dent in bonuses, but the overall job market for hedge fund professionals is stronger now than at any point since before the financial crisis, according to executive recruiters and outsourcing agents.Read more.
Mount Lucas Sues Rival Over Quant Model
Mount Lucas Management, well known for its quantitative approach to futures trading, has filed a patent-infringement lawsuit against rival quant manager Alpha Financial Technologies.Read more.
Partner Quits QFS Amid Management Shift
A senior executive at QFS Asset Management left the quantitative fund shop just months after founder Sandy Grossman orchestrated a merger and turned over the chief executive’s job to an outsider.Read more.
Good Timing for Scottwood’s Perlman
In his parting letter to investors, Scottwood Capital founder Edward Perlman said in July that he wasn’t just exiting the hedge fund business — he was getting out of the financial markets altogether.Read more.
Fortress Draws a Crowd for Death Benefits
Fortress Investment is planning to auction off $1.4 billion of life settlements that it seized from a failed hedge fund, in an offering that market players are viewing as a bellwether of sorts.Read more.
Reservoir Offers Fee Breaks to Key Clients
Pushing to raise $1.5 billion for its latest hedge fund-seeding vehicle, Reservoir Capital has agreed to cut management fees for large investors — a move apparently aimed at quelling complaints about its fee structure.Read more.
York Recruits Traders to Head Equity Desk
York Capital has nabbed investment staffers from Sigma Capital and Meru Capital to take over as co-heads of equity trading, filling a position vacated by one of York’s most senior executives.Read more.
Funds Bow to Pressure From Utah Pension
Utah Retirement, which became a vocal advocate of revamping hedge fund terms during the financial crisis, has convinced most of the 40-odd managers it works with to reduce their management fees.Read more.
Englander Brushes Aside Millennium Exits
Recent staff turnover at Millennium Management has led to speculation that Israel "Izzy" Englander is downsizing his firm amid shrinking assets, but insiders said the departures are more about performance than cost-cutting.Read more.
Prime Brokers Targeting UCITS Managers
Several prime brokers are looking to capitalize on growing interest among U.S. fund managers in so-called UCITS, a tightly regulated European vehicle that has become a big hit with investors.Read more.
Correlation Issues Plague Commodity Funds
Persistent correlation between commodity and equity markets has contributed to wild performance swings for some of the top operators of commodity hedge funds, including Aisling Analytics, BlueGold Capital and Clive Capital.Read more.
Shorting Sugar, Touradji Makes 1Q Killing
Commodities-fund operator Touradji Capital last month finished unwinding a home-run trade in the sugar market that netted a profit of around $46 million, more than tripling an investment that started as a loser.Read more.
Despite Losses, Clarium Founder Still Bullish
Although his firm has seen only a trickle of revenue during the past two years, Clarium Capital founder Peter Thiel is seeking to reassure investors that he remains committed to his $2 billion hedge fund and its global-macro strategy.Read more.
Agents Try Heading Off US Marketing Rules
Shaken by an SEC proposal that could severely damage their business, third-party hedge fund marketers will revise their code of ethics at an upcoming annual meeting later this month in Chicago.Read more.
Will SEC Ease Tough Surprise-Audit Plan?
The investment industry is hopeful the SEC will scale back its proposal that would require asset managers to undergo surprise reviews by private auditors in order to deter swindlers like Bernard Madoff.Read more.
Cautious UK Taking Months to Okay Funds
An article on Sept. 16, "Cautious UK Taking Months to Okay Funds," misspelled the last name of Julian Korek, a founding partner of Kinetic Partners.
Alumni of 3 Big-Name Firms Team Up
Three former staffers of different multi-billion-dollar fund-management firms are starting a hedge fund that would invest in stocks and bonds, having lined up more than $100 million of backing from at least two unidentified investors.Read more.
Administrators Look to Rebuild Amid Ruins
Hedge fund administrators, after experiencing a one-third drop in assets under administration amid last year's financial-market carnage, are drawing a measure of hope from an unlikely source: Bernard Madoff.Read more.
Pursuit Partners Sells Assets at Big Discount
Pursuit Partners liquidated asset-backed securities at a deep discount to their late-March values instead of complying with some redeeming investors who believed they could have recovered more by taking possession of the bonds.Read more.
Citadel Fund Carries Novel High-Water Mark
A June 10 article, "Citadel Fund Carries Novel High-Water Mark," incorrectly reported the liquidity terms for Citadel Investment's two main funds, Kensington Global Strategies and Wellington. Citadel offers two options. One permits investors to redeem any amount of capital once every two years with 90 days' notice, and to withdraw profits annually. The second option allows quarterly redemptions with 45 days' notice, so long as total redemptions from the fund don't exceed 3% of assets. If the 3% threshold is reached, investors can redeem no more than one-sixteenth of their money at a time. If they wish to withdraw more than one-sixteenth, then they face a 5-9% penalty. The liquidity terms will go back into effect once Citadel lifts its suspension on redemptions from the two funds.
Cayman Islands May Disclose Fund Details
Cayman Islands, home to more hedge funds than any other offshore jurisdiction, is eyeing a plan to improve the transparency of some 7,000 hedge funds that are domiciled in the British territory.Read more.
Goldman Cap-Intro Event Draws Big Names
A May 6 article, “Goldman Cap-Intro Event Draws Big Names,” incorrectly reported that a capital-introduction conference being hosted by Goldman Sachs tomorrow in New York was originally to be held in March at the Fairmont Turnberry Isle Resort in Miami. The Miami conference, which Goldman plans to hold at a later date, will focus on emerging hedge fund managers. This week’s conference in New York features established managers.
Goldman Sachs has lured some of the most prominent hedge fund managers to a capital-introduction event scheduled for next week, flexing its muscle at a time when many prime brokers are still struggling to find their footing.Read more.
Renaissance Lifts Its Veil, But Just a Crack
James Simons' notoriously secretive Renaissance Technologies is taking a small step toward transparency - a sign that even the most-successful fund operators are feeling pressure to provide more information to investors in the wake of Bernard Madoff's fraud.Read more.
Stark Restructures on Eve of Deephaven Deal
Stark Investments, which is scrambling to complete its acquisition of Deephaven Capital's main hedge fund, has told its own investors that it wants to restructure two big funds in the wake of sharp losses and heavy redemptions.Read more.
Funds of Funds Face New Markdown Rule
With the audit season just around the corner, new accounting rules are requiring funds of funds to consider secondary-market prices when valuing investments in hedge funds that have blocked or gated redemptions.Read more.
Passport's Exit From Fund Angers Investors
Passport Capital's flagship fund redeemed $37 million from a sister vehicle, Passport India Fund, angering some investors who have been waiting for withdrawals as the India-focused fund continues to lose money.Read more.
Moore Spin-Off Closes After Sponsor Exits
Fund-of-funds operator Alstra Capital is shutting down after its biggest client, Max Capital, decided to take direct control of its hedge fund investments after they suffered double-digit losses last year.Read more.
2003 Report Raised Red Flags About Nadel
A study six years ago found evidence of inadequate internal controls and compliance procedures at the fund shop run by Arthur Nadel, who was arrested and charged with fraud yesterday after disappearing for two weeks.Read more.
Plainfield Hosts Auction for Fund Stakes
After suspending redemptions two months ago, Plainfield Asset Management turned around and set up an auction to let investors in its $5 billion flagship fund sell their stakes on the secondary market.Read more.
Fairfield Peddled Madoff to the Bitter End
Fairfield Greenwich Group, which steered more investor capital to Bernard Madoff's con game than perhaps any other player, was pitching a new Madoff offering as late as Dec. 11, the day of his arrest.Read more.
Goldman Lets Investors Exit Battered Fund
After losing about half of its value since it started last year, a Goldman Sachs distressed-debt fund is allowing investors to redeem all of their shares ahead of schedule, an option that limited partners in other hedge funds are sure to envy.Read more.