Author: David Beattie

Does loyalty lie with the lawyer or the law firm?

Big changes were afoot in the London hedge fund legal scene last week, after New York-based Akim Gump swooped on Simmons & Simmons and secured the service of two of its hedge fund partners, Tim Pierce and Ian Meade.

While Simmons will be keen to play down the departures, London sources say the impact is already being felt, with three of the firm’s big names said to have been out on a charm offensive to reassure funds and prime brokers of the firm's continued ability to provide top-rated services.

Akim Gump meanwhile says it is looking forward to an increased presence in London when the new arrivals join some time later in the year. A six-month non-compete provision alongside gardening leave of sorts can be expected before the pair get their teeth into the new roles, HFMWeek was told. In the meantime, all eyes will be on which, if any, of the pair’s clients choose to move across with them.

Both lawyers are believed to have a number of significant funds in their Simmons portfolios that the firm is unlikely to want to lose.

“These days loyalty tends to lie with…

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Author: David Beattie

Editor's view: 8 February 2012

Speculative moves, a perceived landgrab and a potential bidding war in the hedge fund sector have all opened up in recent weeks and may well herald the beginning of a recovery after the well-documented disappointments in 2011.

This first quarter, if replicated, would show the industry has picked itself up and dusted itself down, and the winners are likely to be those at the coalface – with London finding renewed favour.

Earlier this year, we saw US macro hedge fund manager Graham Capital announce plans to boost its presence in the UK capital by up to 25 people, while late last week US law firm Akim Gump scooped up two key hedge fund partners from industry major Simmons & Simmons, citing enormous opportunities for its clients in the UK and international markets.

Then there was TPG’s bid for GlobeOp, followed closely by declared interest from SS&C. The latter, albeit without an offer, was welcomed by shareholders and helped bump up the London-listed firm’s share price.

So what can we deduce? I, for one, would wager that the shackles are loosening and where previously hesitancy endured, it is gradually being replaced by…

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Author: Julian Korek

Comment: Julian Korek

As US regulators continue to cast their net beyond US borders, advisers around the world are becoming acutely aware of its effect on their business. So what is 2012 likely to bring?

Dodd-Frank Act
The most significant change is, quite simply, SEC registration. Although by now the Dodd-Frank Act should be relatively old news, as the 14 February and 30 March deadlines loom there is still a lot of attention, discussion and surprisingly some confusion around whether an investment adviser must fully register with the SEC or whether it can qualify for either the Private Fund Adviser Exemption or the Foreign Private Adviser Exemption. Despite the onslaught of information on the topic, it is still unclear to many non-US advisers how relevant considerations (for example, office in the US, separately managed account clients deemed US persons, adviser to ‘solely private funds’, $150m threshold) affect them and what these terms actually mean.

To that end, advisers need to be analysing the key considerations and determining where they fall in the spectrum of SEC registration; no easy task given the scope of the legislation. Now is the time to analyse the relevant facts and circumstances and determine…

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Author: Tony Griffiths

Regulatory load mounts for European managers

Late last week in London, the current state of hedge fund industry regulation, with a notable focus on Europe, was ably summarised by panellists at The IMS Group Regulatory Forum. Delegates in attendance may have felt uncertain about developments upon arrival, but they likely left with more questions and concerns than when they arrived.

An update on the EU’s Alternative Investment Fund Managers Directive (AIFMD) from Aima’s head of asset management regulation, Anna Larris, gave a flavour of the general uncertainty and the ground left to cover.  
 
Working on the technical draft of the AIFMD, the European Commission appears to be again shunning consultation in favour of a clandestine approach. The resultant text “could be worse” than earlier drafts, Larris warned.  

It’s not just the AIFMD that warrants attention. The sequel to Mifid is on its way and the first draft is teeming with “scary” new concepts, said Sidley Austin’s Leonard Ng. High-frequency traders in particular, take note.

Pushed back until April, the EU’s short-selling regulation also requires an eye, as does its Markets Abuse Directive, on which Aima continues to lobby. Throw in the admittedly less-imposing derivatives legislation and the…

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