09/12/2011 Author: Will Wainewright

HFMWeek Daily Snapshot - 9 December

NEWSPAPERS AND WIRES
Hedge funds are set to rack up their second-worst year in two decades after taking a beating from the eurozone crisis and an unexpected slowing in global economic growth, writes the FT. The average hedge fund manager has lost 4.37% in the year to the end of November, according to data just released by Hedge Fund Research – losing money in six of the past seven months. Only in 2008, following the collapse of Lehman Brothers, did the industry fare worse.

Accused hedge fund fraudster Andrey Hicks was formally indicted yesterday for ripping investors off to the tune of more than $2.5m, according to FINAlternatives. A federal grand jury returned a five-count wire fraud indictment against the 27-year-old head of Locust Offshore Management. Hicks is accused of lying to investors both about his own education and work history and Locust's assets under management. Once he had received the $2.5m from about 10 investors, Hicks used it on himself, rather than investing it, prosecutors allege.

Hedge fund performance declined in November, leaving funds trailing the broader market for the month, according to industry adviser Hennessee Group, writes MarketWatch. A mostly down month for markets in November due to continued eurozone worries was capped by a massive month-end rally that erased losses and helped the Dow Jones Industrial Average to end the month in positive territory. "This environment has proven extremely challenging, and hedge funds were whipsawed again," said Charles Gradante, co-founder of Hennessee.

Private equity firm CVC has asked its creditors to respond to a new plan on refinancing A$2.6bn ($2.7bn) of debt in Nine Entertainment by Christmas, a source said on Friday, after shelving a debt extension plan earlier this week, reports Reuters. Hedge funds, which have been buying up chunks of debt from the bank lenders in the past two weeks, are gaining a stronger hand in a battle to take control of the Australian media network. CVC has asked banks to come back with approvals for the plan to refinance Nine before Christmas, the source told Reuters Basis Point.

PEOPLE MOVES
RBC Dexia Investor Services has appointed Guy d’Albrand as head of lending securities, the company announced this week. D’Albrand who is set to join the firm in January 2012 and will be based in London, previously held senior positions at Societe Generale and Newedge in their investment management, investment banking, and brokerage units. At RBC Dexia his responsibilities will include product management and development for both securities lending and stock borrowing, said a company statement.

Hamburg-based alternative investment company Aquila Capital has appointed Oldrik Verloop, formerly of Swiss bank Wegelin & Co, as its new head of business development for the Benelux and Scandinavia regions, the company said this week. Verloop’s previous role at Wegelin saw him develop and implement a market entry strategy for the two regions he will cover at Aquila.