18/06/2010
The investment board for the $7bn San Diego County Retirement Association (SDCERA) yesterday approved investments in two of BlackRock’s global macro strategies as it refreshes its hedge fund portfolio.
SDCERA’s outsourced chief investment officer (CIO) provider, Integrity Capital, headed by Lee Partridge, along with the pension’s internal assistant-CIO Lisa Needle recommended a total commitment of $150m to Blackrock’s funds.
Partridge stated during the meeting that the new investments will be part of the ‘asset allocator’ strategy bucket which includes global macro and CTA strategies. The allocation will be split $115m to the BlackRock Global Ascent
18/06/2010
NEWSPAPERS AND WIRES
Citigroup is reportedly planning to raise more than $3bn for its private-equity and hedge funds, even as US lawmakers consider banning banks from owning and investing in so-called alternative funds, reports Bloomberg. Citi Capital Advisors, which oversees about $14bn, may seek $1.5bn for private equity this year and $750m for hedge funds, said people who declined to be identified because the plans aren’t public. An additional $1bn is targeted next year for hedge funds, the people said. “Regardless of the ultimate outcome of financial reform, our priority will always be protecting the interests of our clients,
17/06/2010
NEWSPAPER AND WIRES
Hedge funds receive nearly three-quarters of their capital from institutional investors, according to a survey released on Wednesday that shows how these portfolios are no longer reserved for the rich but are investing nest eggs for teachers, firefighters and janitors, Reuters reports. It takes pension funds and endowments roughly three months to select a hedge fund, the survey shows, and they are very choosy, with 56% selecting only about 10 hedge fund investments a year. "The institutional sector of the hedge fund market has become more important in the wake of the market tumult, as these
17/06/2010
UK Chancellor George Osborne has announced the abolition of the Financial Services Authority (FSA), giving most of its power to the Bank of England, transforming the central bank into one of the most powerful regulatory bodies in the world.
In his first speech at the annual Mansion House dinner, Obsorne confirmed that the FSA will continue in its role as the UK’s financial advisory body until 2012 when it will be broken up, with the part that monitors financial institutions continuing as the “Prudential Regulatory Authority” but operating as a full subsidiary of the Bank of England.
16/06/2010
NEWSPAPERS AND WIRES
The Credit Suisse/Tremont hedge fund index shed 2.76% in May in the biggest drop since November 2008, with dedicated short bias funds being the only strategy that recorded positive returns, reports the Wall Street Journal. Dedicated short bias funds gained 5.84% for the month, benefiting from a negative equity market performance and overall higher volatility, while emerging markets funds lost 4.28% and long/short equity funds dropped by 4.13%. "Although the industry was negatively impacted by the market sell-offs, hedge funds outperformed equity market indices such as the S&P 500 and MSCI World which fell 7.99% and
16/06/2010
Zais Group, the New Jersey-based $8bn distressed and illiquid credit manager, is moving around $500m of assets held across three separate fund structures in the Cayman Islands to the European jurisdiction of Luxembourg, HFMWeek has discovered.
The fund manager will move all its funds with European investors away from the offshore Cayman Islands because of the encroaching regulation that will place restrictions on funds marketing to European investors. Zais’s $8bn is managed through around 20 different fund structures.
Luxembourg is becoming an increasingly popular destination with fund managers. Last week, HFMWeek reported that SkyBridge Capital
16/06/2010
A Dublin-based managed accounts business targeting US managers constrained by draft EU regulation is gearing up for launch, HFMWeek can reveal, and is hoping to host assets close to $1bn by the end of its first year.
GTD Partners, backed by industry entrepreneur John Lowry, will open at the beginning of September as only the second platform to offer EU-regulated managed account structures. Currently, Innocap, a joint venture between BNP Paribas and the National Bank of Canada, provides EU-licensing for managed accounts via its Maltese hub.
As fears regarding European marketing restrictions, contained within the
16/06/2010
Cowen Group, the investment banking firm that merged with alternatives fund manager Ramius in November last year, will liquidate its two multi-strategy hedge funds, the Ramius Multi-Strategy and Ramius Enterprise funds, due to ongoing and future redemptions in the two funds.
Redemptions in the multi-strategy fund had triggered rights held by major investor Unicredit and its affiliates, which would have allowed the Italian banking conglomerate to withdraw all its assets with only 30 days’ notice. In total, Unicredit will redeem $668m from a variety of Ramius funds but has offered to extend the time period that Ramius
16/06/2010
JP Morgan has appointed Brian Besisi to its prime brokerage business as a managing director as it continues to expand its prime brokerage sales and marketing team for the Europe, Middle East and Africa (EMEA) region.
Bisesi, who joins from Barclays Capital where he was head of EMEA sales for prime services, will lead the EMEA sales and marketing team and will report to Paul Brannan, head of prime brokerage for EMEA, and Neil Sherman, global head of prime brokerage sales.
According to JP Morgan, the growth of its prime brokerage business forms a key
16/06/2010
The EU Parliament is at loggerheads with its legislative counterpart, the Council of Member States, over plans to allow third-country investment funds access to Europe, as AIFM Directive negotiations becomes deadlocked with the finishing line in sight.
Jean-Paul Gauzés, the Directive’s parliamentary representative, remains determined to push through his hard-line stance, which would see a marketing passport introduced but with the potential for an EU-wide ban on funds based in non-EU jurisdictions. The Council text ignores the passport, instead leaving marketing decisions to each individual member state – a stance favoured by the funds industry.
