16/06/2010
Early June numbers reflect a return to a more stable market environment, particularly for the CTAs, which were among the heaviest losers in May.
Man AHL was up 2.24% through to 7 June, as were Winton’s Evolution and Futures fund, both up around 1.9% through to 9 June. Emerging markets managers, who, like the CTAs, gave back substantial early year gains in May, are still on the wrong end of the return spectrum. Vontobel Easter European fund is down a further 4.5% through 8 June and the $1.2bn Templeton Emerging Markets fund has lost a further 2.66%
16/06/2010
Glazer Capital, the New York-based $350m merger arbitrage manager, will launch a two-times levered version of its flagship fund next month, in light of an increased number of corporate tie-ups.
The offering, called the Glazer Enhanced Fund, will roll out with $10m of both internal capital and money from high-net-worth individuals and family offices in the US.
Stéphane Azra, director of business development, said the firm has decided to introduce the levered offering due to investor interest.
“There are one to two deals announced almost everyday,” he said. “M&A activity appears to have
16/06/2010
Tranen Capital, a British Virgin Island-based $80m life settlements hedge fund manager, is gearing up to launch a longevity fund later this year, HFMWeek has learned.
The Tranen Capital Life Fund, which is anticipated to roll out within the next few months, will buy and sell life policies held for an average of five-to-six years, compared to the firm’s flagship vehicle, which purchases contestables – policies two-years-old or less.
Arthur Bowen, director, said Tranen has decided to pursue a longevity strategy due to increased demand from investors.
“Demand for longevity risk has increased
16/06/2010
Permal Group and Strategic Investments Group are launching a $250m Ucits III absolute return multi-manager fund called the Active Trading Fund.
London-based investment boutique Alternative Advisors is also set to launch a new Ucits-regulated fund of hedge funds this week.
The moves come as a growing number of hedge funds look to Ucits as a way of providing investor protection while still offering attractive returns.
According to Hedge Fund Research, there are now 400 Ucits-compliant funds launched by hedge fund managers, with total assets of $35bn.
15/06/2010
The European Commission has published a draft consultation paper outlining possible rules which would allow temporary bans on the naked short selling of shares and credit default swaps (CDSs) during periods of market volatility.
Among the proposed rules outlined in the paper are restrictions on short selling in an emergency, a provision which would give national supervisors the power to prohibit or restrict short selling in situation where the stability of the financial markets is at risk.
The draft paper, which proposes that the European Securities Market Authority (ESMA) should take on the role of
15/06/2010
The global hedge fund industry has benefitted from positive inflows so far this year despite widespread poor performance in May, as institutional investors begin to allocate back into the absolute return space.
According the Fitch Ratings’ latest Hedge Funds Quarterly Report, the sector has continued to show resilience in the face of difficult market conditions, although the May crisis, which affected strategies across the board, did highlight many funds’ exposure to systemic risk.
"A period of price normalisation and dispersion based on fundamental factors and arbitrage usually follows a general and positive asset revaluation cycle,"
15/06/2010
NEWSPAPERS AND WIRES
The European Commission has launched a consultation on short-selling, the final step before the body makes legislative proposals in September, reports Financial News. This comes against a backdrop of fragmented approaches to short selling by member states. In a consultation paper sent out today, the Commission, led by Michel Barnier, is seeking to consult market participants, regulators and other stakeholders on possible provisions for legislation. It intends to focus the consultation on five key areas: scope, transparency, uncovered short sales, exemptions and emergency powers of competent authorities.
Hedge fund managers may be off their
14/06/2010
Hedge fund administration fund BNY Mellon Alternative Investment Services (AIS) has introduced a new automated enhanced reporting service for side pocket accounts and special purpose vehicles (SPVs).
The service, called Praeeo, provide hedge fund managers with greater flexibility in structuring their funds, enabling them to segregate illiquid investments with ease, as well as moving capital and/or earned income from the side pocket to the main portfolio.
Flexible investor statements also offer investors greater transparency across both liquid and side-pocketed holdings.
Over 50 funds with SPVs and side pockets are currently using the service, which
14/06/2010
Regulation has overtaken reputation as the biggest risk concern for asset management chief risk officers (CROs), according to Ernst & Young’s second annual industry risk management study.
The research, which surveyed 29 heads of risks and CROs, further identified the desire to optimise capital and liquidity as the third most pressing concern.
The asset management industry is in a very different place to this time last year,” said Roy Stockell, leader of Ernst & Young’s Europe, Middle East, India and Africa asset management business.
He continued: “It has wrestled with a number of
14/06/2010
HSBC Private Bank has maintained an overweight position in hedge funds in 2010, following its decision to reduce its exposure to risk in global equities in April.
The bank, which is in the top three global hedge fund providers, believes that hedge funds are well-positioned to benefit from the current market volatility and is optimistic about the outlook for the industry over the coming 12 months.
“In contrast to the majority of 2009 in which investors were rewarded for taking on risk, we believe 2010 will be a rather different environment – a year of
