steeple shuts down after redemptions uk firm debuts life insurance

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CREDIT SUISSE HIRES BEAR STEARNS EXECS
JULY 28, 2008
VOL. IX, NO. 30
The Internal Revenue Service’s
decision to class management fees as
investment expenses will affect
investors’ tax payments for 2007, as well
as 2008 and beyond.
See story, page 2
Several Bear Stearns executives have joined Credit Suisse. Christopher Alaimo, a senior
managing director, now runs research sales in the multi-asset group, a joint-venture
between equities and fixed income on the institutional equity floor, and former Bear
Stearns colleague David Alfred is working in a similar capacity with him. Eric Laumann
has also joined from Bear Stearns as a director and is working on the special situations
desk. In addition, several of their colleagues have made the move with them.
“[Credit Suisse] has the world’s most cutting edge hedge fund coverage platform,”
Alaimo told AIN on joining the firm. “A single desk with the ability to trade stocks, equity
Americas
Pronounced Dead
FoF Tax Rule Spells
Headache For Investors
Creststreet Adds Oil, Gas Exposure
White House Economist
Meets Hedgies
Noonday PM Exits
ARCIM Seeks Assets
BroadStreet Delays Brazil Launch
Chimay Preps Credit Fund
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STEEPLE SHUTS DOWN AFTER REDEMPTIONS
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Steeple Capital, the San Francisco healthcare hedge fund firm founded by Andor Capital
Management veteran John Regan, has closed down following redemptions that saw assets
plummet to $100 million from $500 million. The firm returned all money to investors
on July 5, according to a firm official.
Despite being down 10.1% this year through June 30, reasons for shutting down the
Steeple Capital Offshore Fund and its onshore version are not performance-related, the official
said. Redemptions took place in late 2007, in spite of the fund returning 21% last year.
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(continued on page 16)
Europe
Credit Suisse Moving
Zurich Analysts
SAR Seeks Agri Managers
Paris Shop Sets Up
Managed Account
Russian Firm Rebounds
Blackfish Readies L/S Strat
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Asia Pacific
Triple A Gets Sales Pro
10
Departments
Data Zone
Mandate Scoreboard
Alternatives Manager
Search Directory
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U.K. FIRM DEBUTS LIFE INSURANCE PLAY
Opus Investment Funds Management is launching the first offering
of its kind—a hedge fund-like strategy in the form of a Financial
Services Authority-registered corporation that invests in life
insurance policies held by individuals over the age of 65. Opus Life
Assets is expected to raise £500 million this year and has no
capacity limit, said Managing Director Paul Bruton.
Registering with the FSA allows the firm to offer the strategy
to any resident of the European Union. Being U.K.-domiciled, it is
(continued on page 16)
WARD FERRY ASIA STRATS GIVE UP GROUND
Three of Ward Ferry Management’s funds are down for the year due to eroding market
conditions in Asia. According to Ward Ferry documents, its flagship Asia Fund was down
-3.88% in June and -8.92% on the year, its Japan Fund dropped -7.06% in June and is
down -14.86% on the year, and its Asian Smaller Companies Fund was flat in the second
quarter at 0.97%, seeing its gains in April and May erased in June.
The $1.1 billion flagship fund fell due to stagflation fears and sharp rises in food and
energy prices. The firm is optimistic that oil will decline, but expects U.S. consumption
(continued on page 15)
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Alternative Investment News
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July 28, 2008
Victory Rolls Out Credit Fund
Victory Capital Management has launched an absolute return credit strategy,
which will take long and short positions on credit, including credit default
swaps, and will use some municipal bond arbitrage. The fund has been seeded
with $30 million by a corporate pension plan, which is already a Victory client
for fixed-income, said Chris Ohmacht, head of institutional sales and client
service. He declined to name the pension fund. The timing for the strategy was
right because of activity in the credit markets and rising demand from
investors for absolute return strategies.
The fund’s strategy will target 10-13% net returns annually with 2-3% volatility.
It offers full transparency, monthly liquidity and an attractive fee structure,
Ohmacht said. The fees include a 75 basis-point management fee and a 20%
performance fee. There is increasing demand in the marketplace for absolute return
strategies, as investors look for alternatives to fixed-income for lowering volatility,
Ohmacht said. “Given the inflationary fears in the market and the low level of
interest rates, I don’t believe that fixed-income is a good instrument for low volatility
right now,” said Craig Ruch, cio of fixed-income, who is managing the strategy.
The fund will use a bottom-up approach. “We see a lot of idiosyncratic risk
in the credit markets right now and bottom-up research will be extremely
important to generating alpha,” Ruch said. “This allows us to run a lowvolatility, high-quality fund and produce positive returns in any market
environment,” he added. Ruch is planning to close the fund at $500 million.
IRS FoF Ruling To Impact 2007 Tax Returns
The new ruling by the Internal Revenue Service that funds of hedge funds’
management fees are investment expenses, not tax-deductible business costs,
will not only affect 2008 tax payments for investors, but also those from 2007.
The first U.S. tax deadline is three-and-a-half months after the end of a
firm’s fiscal year, but many funds of funds opt to file extensions, giving them
an additional six months to complete the tax forms.
These extensions carry over to investors, since they must wait to file until
after they receive their K-1 forms, the source document for monies earned
from hedge funds. Funds of hedge funds that have not yet sent out their K-1
forms may now need to refer to management fees as investment expenses for
2007 taxes, which would affect investors, said Michael Serota, co-leader of the
global hedge funds practice at Ernst & Young. Serota said in theory this could
affect K-1 forms that were previously submitted.
Michael Laveman, a partner at Eisner LLP who works with alternative
investment firms, said he has received a number of phone calls about the IRS
ruling, many from clients seeking clarification. “It’s sort of an ugly situation right
now,” Laveman said. “Funds of funds’ tax returns don’t go out until the summer.”
Laveman said he anticipates most funds of hedge funds will apply the ruling
to their extended 2007 tax return filings. If they do not, they may be required
to amend their returns later this year, causing headaches for their investors as
well as the firms themselves, he said.
Still, Laveman said that when it comes to tax rulings, most fund managers
he talks to are not nearly as worried about these deductions as they are about
who will be in the White House come January 20, 2009, and whether or
not—and by how much—the next president will change capital gains tax.
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The Americas
HDF To Add Analyst In New York
Paris-based fund of hedge funds firm HDF Financial plans to
add an analyst to its staff of two in New York. The firm opened
an office in the U.S. in February in order to better source U.S.based single-manager hedge funds, noted Christophe Chouard,
head of sales. HDF has not increased or decreased its exposure
to U.S.-based managers, but the New York office better prepares
the firm to do so in the future, Chouard said.
The $5 billion firm has offices in Brussels, Geneva and
Singapore. Chouard said the firm may expand elsewhere but as
of now it has no concrete plans.
Creststreet Slowly Re-Ups
Oil, Gas Exposure
Toronto-based Creststreet Asset Management reduced
exposure to the crude oil and natural gas sectors in its global
energy hedge fund in mid-June, but now has begun buying
back some oil and natural gas equities at reduced prices. The
equities it has been buying include oil and gas exploration
companies Open Range Energy and Twin Butte Energy.
Global Energy Opportunities Fund is up nearly 52% year-todate with about 14% returns in June.
Portfolio Manager Aaron Maybin and Founder Robert
Toole said the fund is maintaining long exposure to
Canadian oil sands developers. The fund has about $25
million, with the firm’s total assets under management
topping $215 million.
horseman, Research in Motion.
Although Sprott has been shorting Amazon for a while, he said
he’s become more aggressive lately because of the company’s model,
shipping small numbers of books to far-off locations. “Shipping
three books to Poughkeepsie cannot be economically efficient,”
Sprott noted, pointing to the high costs of transportation.
Sprott has more than $2.5 billion in its hedge funds. In its Sprott
Hedge LP fund it is about 55-60% short and about 95% long.
Emerging Capital Hires Analyst
In Nigeria
Emerging Capital Partners, the Washington,
D.C.-based private equity firm that invests
solely in Africa, has hired an analyst for its
newly-opened Nigerian office. Hurley
Doddy, chief operating officer, declined to
name the person but said ECP is seeing an
increase in the number of resumes it receives
Hurley Doddy
given all of the turmoil on Wall Street.
The office in Nigeria is the sixth in Africa for the firm. It is
almost completely committed with its fifth fund, ECP Africa
Fund II, the second major Pan-African fund for the firm with
$523 million. Last August, CEO Thomas Gibian told AIN that
the firm was preparing its sixth fund but that plans wouldn’t be
developed until early 2008. Doddy declined to comment on this
given fundraising constraints.
Sprott Profits From Bearish View
White House Advisor Treks
To Greenwich
Canadian firm Sprott Asset Management has returned about
25% year-to-date in its Sprott Hedge LP, returns that CEO
Eric Sprott attributes to the firm’s belief in the peak oil
thesis—that world energy production will go down and prices
will go up from here on out—and its overall view of stock
market slowdown.
Sprott said much of the firm’s performance on the long side
came out from coal, as well as from its holding of Timminco
Ltd., a lightweight metal producer. The fund also owns silver
and gold bullion.
The firm has what Sprott calls a dire fear of the financial
market, and has been short the banking system, the brokerage
system, the mortgage insurers, such as Fannie and Freddie, and
the bond insurers. It has taken short positions on three of what
are sometimes referred to as the “Four Horsemen of Tech”:
Amazon, Apple and Google. Sprott is not short the fourth
White House economist Korok Ray traveled to Greenwich on July
18 to meet about 15-20 hedge fund managers, including Jonathan
Feniak and K Daniel Libby of Sands Brothers. It marked the first
such trip and broke the mold of White House reps getting most of
their Wall Street information from the big banks.
Libby said one key point he and Feniak emphasized was the
role hedge funds play in the economy, especially in the current
market. Banks and insurers have been blowing up, Libby
explained, and they’re no longer able to provide financing because
they lack the necessary capital. There is a real need for hedge
funds to fill capital voids through ABL funds that provide new
capital or distressed funds that can buy assets that are getting too
far away from actual value, he said.
Feniak and Libby said with the president leaving office in the
next five months they received no indication there would be any
policy changes.
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July 28, 2008
The Americas (cont’d)
Noonday PM Departs
Ryan Alexander, portfolio manager at Noonday Global
Management, has left the firm. He worked in Noonday’s
Charlotte, N.C., office. An official confirmed his departure but
declined to comment. COO John Short did not return calls by
press time. Reasons for Alexander’s departure could not be
learned, nor could his future plans.
Noonday manages several credit, merger arbitrage and real
estate hedge funds, and invests in public and private debt and
equities, as well as in private companies. In addition to
Charlotte, it has offices in London, Singapore and Hong Kong.
LRG, Signature Fund Contracts
Bank Deals
The joint fund created by San Francisco-based LRG Capital and
Dubai financial house Signature Group is in the contract process of
taking a controlling stake in two small, regional banks in Singapore
and Indonesia. LRG Founder and President Larry Goldfarb
declined to name the banks because they are publicly held.
The LRG Capital Signature Momentum fund launched early
this month and invests in local charter banks in emerging
markets such as India, Africa, China and Southeast Asia
(totalalternatives, April 23). Since its launch, the fund has grown
to $150 million from $50 million on account of additional
funds from Singapore and Dubai. Goldfarb declined to state the
amount of capital LRG puts into each deal, but he did say LRG
would invest no more than one-third of its assets in any one
deal. The fund uses 3:1 debt to equity leverage.
The Signature Momentum fund is one of four LRG strategies.
The firm has about $1 billion in assets under management.
N.Y. Firm To Launch L/S Equity Fund
Clear Asset Management plans to launch its first hedge fund in
August, a long/short equity strategy using quantitative models.
The fund, based on the firm’s long-only Large Cap Growth and
Large Cap Value strategies, will be beta neutral.
Co-founder Andrew Corn said the firm decided to launch
the fund after seeing many institutions seeking less correlation
and less volatility. The fund will use multi-factor models to
rank large capital and highly liquid stocks daily, after which
the firm’s investment team will review the results before
making final investment decisions. The long book of the firm’s
new fund has near-identical holdings as Clear Asset
Management’s long-only fund.
The firm seeded the fund with $2 million to run internally for
4
the past five months. Now the firm is beginning to market the
strategy, and Corn said he hopes to launch with $25-50 million.
Corn and Co-Founder Lisa Goldenberg have computer
software backgrounds at MasterApproach, a software developer
focused on asset managers that was sold in 2001 to Citigate.
They founded Clear Asset Management about four years ago.
The firm has $100 million assets under management with a sales
office in Wayne, Penn., Corn said,
ARCIM To Raise Capital
ARCIM Advisors is looking to grow assets for its ARCIM
Commodities Fund by the end of the year. The firm manages more
than $600 million and will begin actively marketing the fund after
not doing so last year. ARCIM hit the two-year mark in June and
has a greater number of ideas for investing. The bulk of the inflows
will likely come from existing investors or investors that ARCIM
has had a relationship with since its launch in July 2006 who
weren’t ready to invest until a track record had been established.
ARCIM Commodities is up 9.5% year-to-date. The fund has
a minimum investment of $5 million and fees of 2/20. The
firm’s investor base is made up primarily of funds of funds and
institutional clients, including pensions and endowments. The
firm has added a portfolio manager and an analyst in the last
two months, bringing the staff to 20.
ARCIM was founded by Harry Arora and won Emerging
Manager of the Year at AIN’s 5th Annual Hedge Fund Industry
Awards. Nisha Arora, director in charge of business and investor
relations, declined to comment.
Sogoloff Ramps Up Quant Portfolio
Horton Point, the quantitative firm set up by Alexandra
Investment Management Co-Founder Dimitri Sogoloff, has rolled
out new strategies within its Gallery Master Fund. The fund, which
was launched May 1, has now allocated all target capital to its
equity strategy, which Sogoloff said has performed well compared
to the market, and over 75% to each of the interest rate arbitrage,
credit arbitrage and re-insurance strategies. The volatility arbitrage
strategy, due to begin trading in June, was delayed because models
indicated unstable conditions for volatility. Sogoloff said that this
particular model fares well under stable conditions.
Gallery is run alongside a simulated model that acts as a
control for the quant strategy. The fund’s fixed-income strategy
shut itself down after encountering unfamiliar territory with the
euro/dollar futures drop on June 9-10. The model is equipped
with risk management elements that cause the strategy to shut
down if it detects something it doesn’t recognize. The simulated
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July 28, 2008
The Americas (cont’d)
strategy continued to operate without interruption, resulting in a
negative return for the month. The actual return posted positive
due to the risk management trigger but Sogoloff would not
specify a number. The fixed-income strategy is expected to
resume trading sometime this month.
BroadStreet Postpones Brazil
Fund Launch
New York-based BroadStreet Capital Partners has postponed the
launch of its Brazil-focused hedge fund. The BCP Brazil Middle
Market Fund was slated to launch in February (totalalternatives.com,
Feb. 1) but the firm has postponed the launch until August due to
difficulties raising assets. An official at the firm confirmed the
fund’s delayed launch but declined to elaborate.
The strategy was originally supposed to focus on asset-backed
lending in the middle market and consumer finance growth in
Brazil, but the firm has now changed the fund’s strategy. The
official declined to comment on the new strategy. Further details
could not be learned by press time.
Big Apple Shop Readies
Credit Fund
Chimay Capital Management is preparing to launch a credit
fund to capitalize on the availability of discounted bank debt
and excess unsyndicated deals at investment banks. The fund is
expected to roll out at the start of the fourth quarter with several
hundred million dollars, Founder Guy Albert de Chimay told
AIN. Jason Colodne and Jason Beckman have recently joined
the New York firm as partners to co-manage the fund.
The strategy, which has not yet been named, will invest in
discounted senior secured debt, direct originations and classical
distressed situations, said Colodne. The $200 million firm’s
only other strategy is the long/short U.S. equity Spartan
Mullen Chimay, which the new fund is designed to
complement. Spartan is a directional trading strategy with
monthly liquidity, whereas the new fund uses fundamental
analysis and has a two-year hard lockup, noted Colodne.
Spartan is up 3.77% this year.
The firm is targeting existing investors in the Spartan funds
who want to stabilize assets in a less-liquid offering, as well as
institutional investors and high-net-worth friends and family,
said Chimay. The fund will be available in an onshore Delawareregistered offering and an offshore, Cayman-domiciled version.
The investment minimum will be $1 million. Fees will be 2/20.
Colodne and Beckman worked together for seven years at
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Goldman Sachs. Colodne was also a managing director at
Morgan Stanley and, most recently, was at Patriarch Partners,
a $6 billion turnaround private equity fund. Beckman worked
at Deutsche Bank in the distressed group.
Millennium To Target
Pre-IPO Companies
New York-based Millennium Technology Ventures is taking
advantage of the illiquid market by planning to launch a fifth
fund to buy out holdings from venture capital investors. The
deals will provide liquidity for these investors, and Millennium
makes money when the company whose equity it purchased
goes public. The fund is capitalizing on the increased number
of equity holders seeking liquidity.
Millennium was founded by former Blackstone Group pros
Daniel Burstein and Samuel Schwerin. The firm has made
about 100 transactions since setting up in 2002, and in the
current economy Schwerin said he expects the firm will be
making four-to-five times as many investments in 2008 as it
did in 2007. Transactions range from less than $1 million to
more than $15 million.
Today’s economy is in a “venture capital crisis,” stemming
from the lock-up of assets, Schwerin explained, adding that a
successful company is typically in existence for an average of
eight-and-a-half years before its IPO. Millennium is buying
equity that has already been held for about five years, thus
shortening its own holding time.
Venrock Associates alum Jonathan Glass recently joined the
firm as its chief financial officer. In addition to his hiring,
Schwerin said he expects to double Millennium’s team of 10 in
the coming months in anticipation of the new fund’s launch.
Schwerin declined to specify when the fund will launch.
Prisma To Cross The Hudson
The $5 billion fund of hedge funds firm
Prisma Capital Partners will move its main
office from Jersey City to Manhattan in
November. The firm is also seeking to hire in
total seven portfolio managers, risk managers,
and operations professionals in its New York
office in upcoming months, said an official at
Girish Reddy
the firm. The firm opened a London office in
February headed by Paul Roberts, and will staff its London
space with more research analysts.
The hiring spree is due to the overall expansion of the
business, which will launch a new fund of funds by the end of
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Alternative Investment News
The Americas (cont’d)
this year or early next year. The official declined to offer any
information on the latest fund, as the firm is still in the
planning stages.
Prisma’s flagship fund of funds has 40 underlying managers in
its portfolio, and the firm will add up to four managers by year’s
end. Prisma is eyeing managers focused on residential mortgages,
bank debt, distressed, and corporate debt, given opportunities
available in this space. Last year, the fund invested primarily in
managers focused on fixed income and credit. The official
declined to cite returns.
The firm is also fundraising and is approaching mostly large
institutions in the U.S., Europe and Asia. Several pensions and
insurance companies in Japan, Australia, Denmark, Switzerland
and Germany have recently invested in the fund. In the first half
of this year, Prisma has raised $650 million.
Girish Reddy, Gavyn Davies and Thomas Healey cofounded Prisma as a joint venture with AEGON USA
Investment Management in January 2005
(totalalternatives.com, Jan. 19, 2005). Previously they all
worked at Goldman Sachs.
BroadStreet manages two U.S.-and Europe-focused multistrategy hedge funds.
Europe
Credit Suisse To Move Zurich
Analysts To London
Credit Suisse plans to move its Zurich-based funds of funds
analysts to London by September. It is believed that there are fewer
than 10 analysts in the group. It is not clear if all present analysts
have been asked to move or whether analysts who choose not to
move will be reassigned in Zurich. The firm’s human resources
department in Zurich was due to meet with the analysts last Friday.
Further details could not be learned by press time. Suzanne
Fleming, spokeswoman for Credit Suisse, declined to comment.
Environmental FoF Seeks Managers
Zurich-based Systematic Absolute Return SAR plans to add up to
four managers to its flagship fund of hedge
funds. The firm is approaching primarily
agriculture managers, as it views these as
largely untapped, said Andrew Perry,
head of business development. “[The
developing world] is eating up the food
chain,” Perry said. And as people in
developing countries eat more beef, chicken, and eggs,
more grain and water will be needed to produce the food, leading to
“a huge driver in agriculture investments.”
The SAR Environmental Fund currently has seven managers in
its portfolio, including long/short equity, market neutral, assetbased lending and agriculture commodities. While many
environmental funds are down 20-30%, SAR’s fund dipped just
71 basis points this year through June 30. SAR managed to
avoid the rocky markets by investing in hedge funds that trade
carbon certificates—when a company successfully captures
methane or Co2 from drilling, it then creates a certificate
deeming it to be socially responsible. “Trading […] the carbon
emissions markets have been good hedges,” Perry said. “We’re
one of the few out there who’s doing it.”
SAR Environmental is open to new investors and Perry is
approaching pensions, endowments, family offices, funds of
funds and high-net-worth individuals. Its capacity is $500
million. He declined to cite current assets under management.
Arne Schmidt and Michael Ahrndt co-manage the fund.
The firm will roll out what it believes to be the first
environmentally responsible private equity fund later this year
(totalalternatives.com, April 18).
French Firm Opens
Managed Account
Paris-based Varenne Capital Partners has opened its first
managed account for U.K. firm Witan Investment Trust.
Witan, with €2 billion in assets, allocated €40 million to the
French hedge fund last month. Founder Giuseppe Perrone told
AIN that while Varenne has no immediate plans to open
additional managed accounts, the firm may consider doing so
for other long-term investors, he added.
In addition to the managed account, the $160 million
Varenne manages three hedge funds—the Varenne Selection
Fund, the Varenne Value Active Fund and the offshore Varenne
Value Active Fund. The funds invest in pan-European mid-to
large-cap companies across all sectors. The Selection fund is
currently invested in Group Norbert Dentressangle, France’s
largest road transportation provider and trucking company,
which brings goods between the U.K. and Europe. Varenne is
also invested in Inditex Group, a Spanish clothing retailer, and
Dutch food service company Sligro Food Group.
Varenne avoids financial, real estate, and technology sectors.
“We’ve always had that [approach],” Perrone said. “People in 2005
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7
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6/20/08
11:07 AM
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Page 9
July 28, 2008
www.totalalternatives.com
Alternative Investment News
Europe (cont’d)
asked us ‘Why don’t you invest [in financials]?’” These are risky
investments, given the amount of debt investors have to take on,
he pointed out. “[We like] companies with predictable cash
flows.” The firm also avoids investing in commodities. “We’re not
interested because commodity prices vary on the balance of supply
and demand,” he said. This year through June, the fund is down
4%, compared against the MSCI Europe Index, which is down
12% in the same time frame. Last year, it was up 10.35%.
Blackfish Preps New L/S Strat
London firm Blackfish Capital Management will unveil its
latest strategy later in the summer, a long/short fund to invest
in both equity and debt. Co-Managers Peter Lynch and
Harley Rowland will oversee the Blackfish Capital Talisman
Fund. Lynch confirmed the launch but declined to comment
and Rowland did not return calls. Further details about the
fund could not be learned by press time.
Lynch joined Blackfish in 2005. Previously he was a senior
analyst at Citigroup from 2002-2005, and before that, an oil
and gas equity analyst at Baker Steel Capital Managers.
Rowland joined the firm last November from Millennium
Global Investments, where he was a distressed and special
situations analyst for five years.
Most recently, Blackfish launched a global macro strategy in
May (totalalternatives.com, May 12) and a long/short European
equity fund last July (totalalternatives.com, Sept. 7, 2007).
Russian Firm Bounces Back
Halcyon Advisors, the Moscow-based firm that invests solely in
the Russian power sector, is up 3.31% for June after being down
nearly 6% in May with its $110 million HH Generation fund.
The returns are due primarily to the end of the first phase of the
Russian power sector reform which began with the break-up of
Unified Energy Systems, the government held monopoly that
combined all aspects of generation, distribution, transmission,
sales and service companies. According to its June newsletter,
HH Generation made gains on the spinoffs of UES.
Arminé Guledjian, v.p., said that the reform is putting
Halcyon in a great position for the coming months and that there
are a number of companies trading way below their fundamental
value. She added that currently the fund has investments in
Federal Grid Company, which is responsible for power
transmission and that this is a significant area of interest for the
firm. When UES broke up and disbanded, it was removed from
utilities indices. The formation of Federal Grid Company and
several other billion dollar power companies in its place will create
significant change in the market when these companies are added
to the indices and index funds begin investing in them.
Halcyon’s flagship fund, Halcyon Power Investment Company,
closed in May with $250 million and no redemptions until 2011.
There is still over-the-counter trading on shares in the fund.
Horseman Rolls Out U.S. Fund
Horseman Capital Management has launched a version of the
Horseman Emerging Market Opportunities fund for U.S. taxable
investors. The Delaware-registered strategy launched on July 1
in response to demand from investors who can’t allocate to an
offshore fund, said Alain Zakeossian, client relationship
manager. It mirrors the strategy of the existing fund, managed
by Russell Clark.
The emerging markets fund returned 6.91% in June, mainly
through some successful shorts. Those targeting Indian
financials were particularly profitable, according to an investor
letter. The fund remains net-short, as Clark is expecting large
selloffs in the bond and currency markets due to rising interest
rates, which will have a negative effect on equities. The fund is
up 3.58% this year through June.
The London firm launched a similar version of the Horseman
Europe Select Fund in January (totalalternatives.com, Feb. 15). A
U.S. version of the Horseman Global Fund was launched in 2002.
Merrill HF Sales Pro Seen Heading
To Morgan Stanley
Matt Renirie, Merrill Lynch London’s head of equity derivative
sales to hedge funds, has resigned and is expected to join
Morgan Stanley, where he will head the European equity
derivatives flow sales team. He resigned last week and is expected
to join Morgan Stanley’s London office in early September.
Renirie declined to comment when contacted on his mobile.
Morgan Stanley spokesman Sebastian Howell also declined to
comment and the Merrill Lynch press office did not return calls.
Renirie’s appointment comes after the departures of Nick
Tranter, Morgan Stanley’s former head of equity derivative flow
and structured sales, and Jamie Kermisch, head of European hedge
fund coverage. Tranter left for BNP Paribas late last year, and
Kermisch joined Fauchier Partners last month (AIN, July 21).
Earlier this year Morgan Stanley reshuffled its team, with
Giuseppe di Stani taking on sales responsibilities and being
named head of equity derivatives distribution in Europe.
Reporting lines once Renirie is in place were not immediately
clear, but market officials say he is strong in exotics sales.
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9
AIN072808
24/7/08
19:04
Page 10
Alternative Investment News
www.totalalternatives.com
July 28, 2008
Asia Pacific
Triple A Hires Sales Pro; MENA
Fund Coming In Autumn
Hong Kong’s Triple A Partners has hired a sales and marketing
professional for Asia to aid an expansion plan that will see it seed a
MENA fund in the fall and enter a partnership with an Asia market-neutral hedge fund at the end of October. The firm also
intends to hire an additional Hong Kong-based salesperson to
focus on Japan. Roger Pyke, deputy chief executive and head of
sales for Asia Pacific, said Joanne Murphy will join the firm next
month as marketing director for Asia Pacific. Murphy, who has had
stints at HSBC, Deutsche Bank and Fortis, will focus on institutions, funds of funds, family offices and insurers as Triple A seeks to
add $200 million to the $100 million it has already raised.
Murphy is likely to spend the bulk of her time on funds of
funds and family offices, said Pyke, in addition to established
relationships. “It would be foolish not to exploit her existing
contacts,” he added. She joins a growing sales and marketing
team; Triple A recently hired Win Ghriskey in New York and
Kristi Berge, in London, joined about four months ago.
Murphy was on vacation and unavailable for comment.
Pyke said it was too early to comment on details of the
MENA fund and the Asian market-neutral partnership. Triple A
will seed each fund with about $20 million.
The firm, also known as Asia Alternative Asset Partners, has
seeded two funds so far. And in May it announced plans to back
KS Asset Management’s KS Asia Long/Short Fund. The fund,
which will be 80% biased to South Korea and will be managed
by former Kingdon Capital Asia team member Kyle Shin,
should launch by the end of October.
Data Zone
PERFORMANCE SNAPSHOT: GLOBAL MACRO HEDGE FUNDS
The table below displays some of this year’s top performing global macro hedge funds, according to data
provided by Eurekahedge.
Fund
Eurekahedge Macro Hedge Fund Index**
Global Macro
Clarium
Crescat Global Macro Fund
Bearing Fund
Vegasoul Fund
Pivot Global Value Fund
Quantedge Global Fund
The Claritas G4 Fund
Harmonic Global Fund
QFS Global Macro Fund
Credit Suisse GTAA Global Macro Fund
CCP Quantitative Fund - Babbage Class
Balestra Capital Partners
Finch Africa
Excalibur Absolute Return Fund
Porcupine Global Macro Plus
Japan Macro Fund
BIA Pacific Macro Fund
MLM Macro - Peak Partners Offshore Fund
QFS Fixed Income Fund
Danix Fund
Manager
Clarium Capital Management
Crescat Partners
Bearing Asset
Vegasoul Capital Management
Pivot Capital Management
Quantedge Capital
Claritas Investimentos e Participações
Harmonic Capital Partners
QFS Asset Management
Credit Suisse Asset Management
Cantab Capital Partners
Balestra Capital
Finch International Advisors
Excalibur Funds Management Pty
Castlestone Management
Asia Genesis Asset Management
BIA Management
Mount Lucas Management
QFS Asset Management
Danix Capital Investments
Region
June ‘08
Return
-0.23
2008 YTD
return
1.84
2007
return
12.14
Annualised
Std Deviation
4.37
Sharpe
Ratio
1.57
AuM
(US$ Mln)
Global
Global
North America
Global
Global
Global
Latin America
Global
Global
Global
Global
Global
Middle East & Africa
Global
Global
Asia inc Japan
Asia inc Japan
Global
Global
Global
16.00
-0.16
19.24
4.60
2.27
5.39
1.68
4.21
1.33
4.75
-0.95
4.38
-0.98
-0.36
0.98
0.05
1.06
-3.73
-0.36
3.75
57.84
40.10
34.78
33.23
19.70
15.01
14.48
14.14
13.66
13.43
11.57
10.98
10.65
9.89
9.54
8.70
8.35
7.80
7.62
7.58
40.38
77.71
70.62
38.35
48.47
18.85
2.12
2.87
36.38
20.34
7.97
199.15
43.15
21.39
8.07
11.95
18.65
22.51
12.26
9.22
24.22
25.24
25.11
17.25
10.31
32.43
16.71
10.80
14.55
20.81
8.07
40.58
9.88
10.74
8.82
37.41
10.35
19.74
6.65
5.44
1.53
2.29
0.32
3.16
1.39
1.18
0.89
0.36
0.53
1.41
1.36
0.67
3.52
2.19
0.99
0.38
1.12
0.58
-0.21
0.40
6384
66
18
98
496
25
113
Not Disclosed
193
401
56
590
47
19
110
724
Not Disclosed
359
109
8
-0.71
0.74
15.12
6.06
2.26
Other Macro Indices
Eurekahedge Emerging Markets Macro Hedge Fund Index
Notes:
* Ranked by 2008 YTD Returns
** Based on 75% of the funds reporting their Jun-08 returns as at 22-July-2008
Eurekahedge Commentary
Macro managers had a flat month (-0.2%) this June, against a backdrop of wide swings across the underlying markets. Equities had a rough month, as the MSCI World Index plunged 8.1%, on
the back of heightened inflationary concerns, and renewed uncertainties about the financial sector. The commodity markets rallied strongly, with the Reuters CRB Index up a solid 10.1% on the
month; crude oil prices breached the USD 140/barrel mark, during the month, amid tensions across the Middle-East, among other things. The bond markets remained more-or-less unchanged
on a monthly basis, while the currency markets saw the US dollar slip further against the Euro, as the Fed gave no indication of a rate increase in June.
Global allocations for the strategy finished the month flat to positive, as losses from long equity exposure were more-than-offset by commodity-, and to some extent, currency-trades.
Emerging market managers, however, were down 0.7% on the month, as unusually sharp downturns in emerging market equities (India, China and Brazil were down 18, 20 and 10 percentage
points respectively) negatively impacted regional allocations.
10
©Institutional Investor News 2008. Reproduction requires publisher’s prior permission.
AIN072808
24/7/08
19:04
Page 11
July 28, 2008
www.totalalternatives.com
Alternative Investment News
Mandate Scoreboard
Powered by:
i i s e a r c h e s . c o m
The table below shows new allocation commitments gained by alternative managers year-to-date through July 23. The 2007 column denotes
last year’s ranking. Wins represent the number of new mandates the firm has won this year.
2008 Tally
Rank
1
2007
4
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
24
25
26
28
29
30
31
32
33
34
34
131
99
15
63
110
5
3
6
23
165
80
332
111
57
13
57
261
44
22
211
38
39
40
42
43
45
46
47
48
49
50
51
52
54
55
56
57
49
142
148
80
36
89
26
125
97
61
50
66
67
68
69
8
77
208
Firms Hired
Wins
J.C. Flowers & Co.
1
Kohlberg Kravis Roberts & Co.
1
GLG Partners
2
TPG Capital
7
PIMCO
8
BridgePoint Capital
6
Credit Suisse
7
Bridgewater Associates
2
Advent International
9
Barclays Global Investors
6
The Blackstone Group
8
CVC Capital Partners
7
Stone Harbor Investment Partners
1
Carlyle Group
6
FountainVest
2
Texas Pacific Group
3
Alinda Capital Partners
4
Lone Star Funds
2
JPMorgan Asset Management
3
Riverstone/Carlyle
2
Capital Guardian Trust Company
1
Deutsche Asset Management
1
Mellon Capital Management
1
Baring Asset Management
4
Madison Dearborn Partners
7
Jennison Associates
1
T. Rowe Price
1
Avenue Capital Management
3
First Reserve Corporation
2
Grove Street Advisors
1
Lazard Asset Management
2
Franklin Templeton Investments
1
Smith Breeden Associates
1
Fortress Investment Group
1
FrontPoint Partners
1
Oak Hill Capital Partners
1
Industry Fund Services
1
Lindsay Goldberg & Bessemer
3
Wayzata Investment Partners
3
CDH Investments
1
Hony Capital
1
Babcock & Brown
4
Sankaty Advisors
3
Schroder Investment Management
3
Summit Partners
4
Partners Group
3
Onex Corp.
3
JPMorgan Private Equity Fund Services
2
Tenaska Capital Management
4
Macquarie Infrastructure Group
4
Gresham Investment Management
2
Actis
2
Selene Investment Partners
2
WL Ross & Co.
1
Apollo Investment Corporation
4
Nordic Capital
2
The Banc Funds Company
2
The Jordan Company
2
State Street Global Advisors
2
TCW/Crescent Mezzanine
2
Barlow Partners
1
HSBC Private Equity
1
Invesco Private Capital
1
Mariner Partners
1
Noble Environmental Power
1
ABN AMRO Asset Management
1
Lehman Brothers
4
AXA Rosenberg Investment Management
1
Quantum Energy Partners
3
Week of July 21 Wins
Total*
4000
3000
2974
2150
1325
1075
1025
900
897
827
801
776
650
636
600
580
560
550
547
530
500
500
500
496
480
450
450
449
440
400
354
350
311
300
300
300
300
295
295
291
291
271
270
270
260
260
250
250
240
235
235
230
230
225
215
210
200
200
200
200
200
200
200
200
200
196
190
190
180
Client
Asset Type
Amount*
New Jersey Division of Investment
Private equity
200
New Jersey Division of Investment
Private equity
100
New Jersey Division of Investment
Private equity
100
For a complete listing of the Mandate Scoreboard, please visit www.totalalternatives.com
To receive email alerts or online access, call 800-715-9195.
11
AIN072808
24/7/08
19:04
Page 12
Alternative Investment News
www.totalalternatives.com
July 28, 2008
Hedge Fund Strategy Performance - June 2008
MONDAY, JUNE 30, 2008
RATE OF RETURN (%)
STRATEGY/FUND
2007
2006
2005
INCEPT.
DATE
ANNUALIZED
ASSETS
VOL.*
($ MILLION)
MTD%
YTD%
-0.44%
3.58%
3.25%
2.19%
1.32%
0.72%
-4.97%
-3.46%
-3.15%
-1.74%
-1.45%
-1.08%
2.70%
-1.45%
-24.43%
6.15%
6.45%
-7.82%
-7.08%
-3.95%
-3.57%
-7.77%
3.96%
18.37%
5.76%
-24.98%
N/A
13.62%
4.31%
N/A
-0.18%
9.44%
3.84%
12.31%
10.42%
6.87%
30.20%
N/A
17.10%
10.80%
N/A
15.40%
11.65%
18.76%
-1.14%
-0.95%
3.02%
-16.37%
N/A
-0.74%
2.49%
N/A
5.06%
2.88%
-8.15%
31-Dec-91
31-Oct-01
31-Mar-98
31-Oct-96
30-Apr-08
31-Jan-04
31-Dec-00
31-Mar-08
31-May-05
31-Oct-02
30-Apr-02
3.50%
5.62%
6.34%
20.35%
2.07%
4.00%
5.94%
7.76%
5.38%
5.99%
7.07%
582.91
95.00
1.71
486.02
164.71
55.80
64.60
0.27%
12.95%
5.40%
3.14%
3.04%
2.19%
-16.80%
-7.78%
-4.47%
-3.25%
-2.85%
-1.91%
17.57%
7.47%
2.06%
6.94%
4.92%
-33.91%
-19.20%
-4.88%
-4.52%
-2.81%
5.28%
24.99%
N/A
7.09%
8.74%
6.83%
-21.31%
15.39%
-3.50%
10.35%
4.14%
15.88%
13.46%
N/A
-3.07%
12.42%
16.58%
6.54%
5.66%
14.78%
11.25%
17.51%
7.44%
8.13%
N/A
-5.94%
11.54%
6.91%
18.48%
5.48%
2.65%
6.41%
17.22%
31-Dec-89
30-Jun-02
31-Jan-08
31-Jul-96
31-Mar-01
31-Jul-04
31-Dec-03
30-Jun-05
30-Apr-02
31-Jan-97
30-Apr-93
3.75%
11.63%
20.59%
7.28%
3.73%
3.37%
17.74%
11.90%
8.20%
6.77%
4.76%
185.00
33.80
404.00
166.00
13.00
13.75
200.00
142.52
-1.19%
10.19%
3.00%
1.60%
0.05%
38.13%
9.09%
10.10%
5.68%
33.35%
15.54%
3.42%
7.35%
12.75%
6.36%
5.62%
6.64%
N/A
6.61%
17.50%
31-Dec-97
31-Jan-06
31-Dec-04
29-Feb-04
2.71%
19.91%
8.62%
17.24%
10.88
379.00
125.00
1.24%
1.00%
-5.24%
-2.52%
-2.40%
-2.21%
7.44%
6.17%
-7.10%
6.78%
-0.72%
-6.45%
9.30%
10.61%
-4.26%
-3.46%
43.15%
-2.97%
6.82%
13.54%
N/A
2.60%
3.35%
5.62%
8.51%
8.25%
N/A
24.21%
3.35%
4.58%
31-May-98
31-Jan-05
31-Jan-07
30-Nov-01
31-Aug-01
31-Jul-04
1.09%
2.31%
9.91%
21.73%
7.16%
5.82%
105.00
86.30
583.36
337.69
494.40
110.20
-1.98%
0.93%
-0.83%
7.39%
6.46%
31-Mar-04
9.38%
52.52
-2.99%
9.50%
6.84%
4.27%
3.44%
2.80%
-22.72%
-18.09%
-15.47%
-15.38%
-14.68%
-6.42%
19.73%
21.57%
8.71%
-2.67%
5.50%
-49.56%
-19.38%
-29.72%
-27.38%
-26.38%
17.10%
79.81%
85.29%
6.11%
12.02%
7.71%
68.77%
31.57%
36.70%
133.48%
49.16%
17.60%
0.25%
79.65%
4.01%
10.98%
39.37%
13.70%
-11.02%
24.41%
105.08%
27.37%
14.25%
7.25%
N/A
12.84%
2.11%
3.66%
10.60%
61.21%
23.88%
-3.17%
24.63%
31-Dec-89
31-Aug-05
30-Apr-06
30-Nov-04
31-May-05
31-Dec-05
31-Oct-03
30-Apr-99
30-Nov-04
30-Sep-04
31-Mar-02
8.45%
21.34%
16.27%
7.38%
7.86%
17.72%
27.93%
32.36%
17.70%
27.76%
22.07%
17.00
77.00
20.64
27.00
16.00
37.43
19.93
2.00
79.77
0.25%
8.09%
5.54%
4.82%
4.71%
4.70%
-9.20%
-9.09%
-6.92%
-5.30%
-4.02%
2.21%
13.58%
-0.25%
11.40%
20.72%
4.92%
-16.89%
-6.94%
-11.86%
-12.06%
-11.64%
6.49%
38.21%
87.04%
2.29%
5.97%
8.54%
-6.14%
1.60%
-0.04%
1.22%
10.73%
7.64%
9.87%
22.19%
0.47%
21.86%
3.49%
12.76%
N/A
16.69%
20.82%
8.22%
7.11%
5.60%
6.95%
N/A
11.95%
10.49%
12.40%
N/A
5.19%
5.78%
6.17%
31-Dec-89
30-Apr-94
31-Dec-97
31-Oct-06
31-Jul-00
31-Jul-95
31-Jan-05
31-Jul-07
31-Jul-00
31-Oct-91
31-Jan-95
1.65%
11.11%
11.85%
7.52%
7.85%
5.58%
12.19%
11.12%
10.47%
10.35%
8.85%
117.00
14.59
210.22
9.68
3.20
106.00
27.05
-1.15%
13.60%
5.92%
3.57%
-1.74%
21.81%
2.01%
8.96%
6.56%
38.85%
-9.51%
32.43%
13.98%
23.66%
121.73%
21.34%
6.63%
N/A
30.83%
3.32%
31-Dec-89
31-Oct-06
31-Jan-99
28-Feb-02
4.71%
30.08%
26.93%
9.48%
150.00
3,862.00
Convertible Arbitrage
Top
Bottom
CASAM CISDM Convertible Arbitrage Index
Inflective Convertible Arbitrage Composite
Concordia Capital Class B Volatility Arbitrage
Argent Classic Convertible Arbitrage Fund II LP (B)
Radcliffe Volatility Fund
Castle Creek Arbitrage, LLC
Kallista CB Arbitrage (Euro)
JB Convertible Bond Hedge Fund (EUR 2)
Advent Enhanced Phoenix Fund
Rock Hill Investment Partners, L.P.
Zazove Convertible Arbitrage Fund, LP
Distressed Securities
Top
Bottom
CASAM CISDM Distressed Securities Index
Concordia Distressed Debt Fund (Class H)
Schultze Apex Offshore Fund Ltd.
Manley Investment Partners, LP
Restoration Offshore Fund Ltd
Brownstone Partners Catalyst Fund, Ltd (Offshore)
Platinum Turnberry Fund EUR
Armory Offshore Fund Ltd
PENN Distressed Fund, L.P.
Ahab Opportunities Ltd.
American Durham
Fixed Income Arbitrage
Top
Bottom
CASAM CISDM Fixed Income Arbitrage Index
Glacier Peak T-Bill Arbitrage Offshore Fund, Ltd.
Cura Fixed Income Arbitrage Fund, Ltd
Concordia Capital Class N G-10 Fixed Income Arbitrage
(2x Leverage)
KWK Partners LP
UFG Russia Debt Fund
Dexia Bonds Euro High Yield N
EMF Fixed Income Fund, Ltd.
MKP Opportunity, Ltd.
Newgate Alternative Investment Funds Pall Mall Absolute Return Fund
MD Sass Municipal Arbitrage Fund, LLC
Emerging Markets
Top
Bottom
CASAM CISDM Emerging Markets Index
Forum Global Opportunities Fund Ltd
Hudson River Russia Fund, Ltd.
JB Emerging Markets Hedge Fund (EUR)
Wegelin (GUE) Equity Active Indexing EM Dynamic Long/Short
Pharos Small Cap Fund
Boyer Allan India Fund
Access Turkey Opportunities Fund, LLC
Red Cobra Fund
MPM Pure China Fund
Polunin Emerging Markets Active Fund
Equity Market Neutral
Top
Bottom
CASAM CISDM Equity Market Neutral Index
Zacks Market Neutral Leveraged
Fox Run Alpha Fund, LP
Ten Asset Management US Market Neutral
Aletheia Insider Index, LP
AXA Rosenberg Market Neutral Fund
Platinum Global Dividend Fund Limited USD
red-stars.com statistical arbitrage fund Ltd.
Alpha Equity Market Plus Fund, LP
Salus Market Neutral Equitized Strategy Composite
Pegasus Investment Partners, LP
Event Driven Multi Strategy
Top
12
CASAM CISDM Event Driven Multi Strategy Index
Maiden Capital Opportunity Fund, LP
Rosseau Limited Partnership
Owl Creek Overseas Fund Ltd
©Institutional Investor News 2008. Reproduction requires publisher’s prior permission.
AIN072808
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July 28, 2008
www.totalalternatives.com
Alternative Investment News
Hedge Fund Strategy Performance - June 2008 (cont’d)
MONDAY, JUNE 30, 2008
Bottom
RATE OF RETURN (%)
INCEPT.
DATE
ANNUALIZED
ASSETS
VOL.*
($ MILLION)
STRATEGY/FUND
MTD%
YTD%
2007
2006
2005
RAB Cross Europe Fund- Class E (EUR)
Vision Opportunity Capital Partners, Ltd
Gamco Performance Partners, L.P.
Diamond A Partners
MM&E Capital Takeover Target Fund
Metropolitan Capital Advisors LP
Venus Special Situations Fund
2.70%
2.65%
-14.46%
-12.55%
-9.82%
-8.59%
-6.99%
11.09%
1.90%
-24.75%
-19.24%
-11.75%
-5.01%
-22.25%
0.87%
39.33%
-1.83%
-5.28%
20.48%
4.29%
35.34%
14.15%
180.71%
23.11%
10.44%
29.60%
13.00%
14.39%
7.18%
124.96%
-4.73%
-4.01%
5.49%
10.83%
N/A
30-Apr-01
30-Jun-05
31-Aug-02
28-Feb-93
31-Aug-05
31-Jul-92
31-May-06
6.74%
27.17%
12.74%
10.64%
12.61%
8.41%
13.66%
270.00
369.64
2.12
36.50
4.94
-0.03%
16.68%
15.89%
10.46%
9.50%
6.18%
-16.74%
-16.56%
-15.97%
-13.37%
-13.00%
2.44%
6.88%
19.31%
47.92%
10.19%
45.58%
-20.96%
-24.20%
-30.12%
-17.95%
-28.58%
7.48%
34.87%
13.18%
-20.80%
9.72%
17.99%
-3.87%
-24.92%
-39.16%
15.87%
26.55%
12.87%
-15.92%
7.98%
-14.40%
6.37%
12.48%
12.35%
12.94%
6.36%
32.36%
-3.40%
7.49%
0.70%
N/A
N/A
10.27%
N/A
2.98%
0.04%
-0.58%
23.89%
34.18%
28-Feb-99
31-Jul-93
28-Feb-06
28-Feb-06
31-Dec-03
31-Oct-06
28-Feb-97
31-Dec-89
30-Apr-00
31-Jul-95
31-Jan-97
5.79%
24.24%
14.56%
20.70%
9.72%
19.91%
10.26%
14.77%
13.36%
14.91%
26.50%
52.58
41.02
83.50
69.34
56.07
7.53
6.14
-
-0.16%
16.00%
8.58%
7.08%
6.69%
5.52%
-9.40%
-8.30%
-7.21%
-7.14%
-5.41%
2.45%
57.99%
23.34%
31.80%
14.73%
5.81%
-17.11%
-15.01%
-9.56%
-10.06%
-5.16%
11.99%
40.38%
26.26%
18.97%
19.72%
21.49%
54.61%
29.78%
6.73%
32.76%
10.20%
4.94%
-7.72%
11.63%
6.89%
-3.18%
12.18%
28.04%
21.49%
N/A
18.70%
15.44%
6.65%
57.01%
13.42%
15.42%
7.80%
2.50%
21.25%
N/A
N/A
25.97%
N/A
31-Dec-89
31-Oct-02
31-Dec-01
31-Jul-05
31-Dec-03
31-Oct-05
31-May-99
31-Jul-06
30-Apr-07
29-Feb-96
31-Jul-06
3.58%
25.29%
11.67%
19.51%
18.86%
14.49%
19.61%
17.55%
14.35%
14.23%
18.76%
6,384.00
466.04
21.00
737.11
18.17
3.92
351.40
136.15
3,384.00
55.56
-1.58%
25.13%
19.50%
18.35%
17.91%
15.90%
-22.92%
-20.94%
-18.24%
-15.87%
-15.76%
-2.98%
55.59%
52.33%
93.41%
60.25%
19.30%
-44.29%
-22.04%
-22.80%
-29.89%
-34.66%
8.48%
86.38%
-8.03%
169.55%
10.52%
14.82%
63.80%
-0.19%
-4.69%
29.02%
37.15%
9.99%
N/A
N/A
21.63%
12.68%
23.38%
36.38%
100.87%
10.31%
32.39%
22.07%
8.86%
N/A
N/A
N/A
37.39%
12.36%
0.30%
38.23%
2.29%
10.81%
N/A
31-Dec-89
28-Feb-07
30-Jun-07
30-Sep-06
31-Aug-98
31-Mar-00
31-Dec-05
31-Dec-00
28-Feb-98
28-Feb-01
30-Sep-06
5.63%
36.72%
37.58%
37.03%
24.13%
15.24%
28.96%
35.49%
10.99%
19.57%
26.40%
0.73
1.40
38.70
95.00
135.91
21.28
5.57
1,640.06
400.00
-0.23%
6.80%
6.35%
4.83%
3.94%
3.92%
-16.93%
-12.22%
-10.84%
-10.71%
-10.69%
-1.36%
27.47%
23.82%
21.57%
14.82%
10.11%
-50.32%
-24.48%
-23.69%
-16.93%
-21.05%
8.68%
3.73%
5.94%
9.99%
-1.12%
75.89%
79.54%
-8.55%
N/A
-10.31%
-3.27%
9.11%
N/A
26.85%
2.17%
0.30%
9.27%
40.22%
4.37%
N/A
N/A
15.62%
6.47%
N/A
17.92%
N/A
N/A
30.67%
-3.69%
6.56%
N/A
N/A
1.18%
31-Dec-89
31-Jul-07
31-Oct-03
31-Jan-06
31-Dec-06
31-Jan-99
31-Aug-05
31-Jul-98
31-Jan-08
31-Jul-07
31-Aug-04
4.42%
15.57%
9.43%
9.50%
8.69%
15.71%
32.41%
12.03%
25.61%
12.34%
9.48%
73.00
2,550.00
15.90
29.00
79.00
6.93
7.63
3.29%
31.60%
23.00%
22.40%
20.63%
19.28%
-11.20%
-10.60%
-10.53%
-10.49%
-9.70%
15.71%
31.74%
-29.49%
69.83%
41.45%
17.52%
-8.14%
-10.01%
-23.01%
-27.08%
-6.21%
11.57%
59.09%
70.99%
11.69%
30.68%
26.20%
19.43%
3.06%
3.72%
53.25%
N/A
5.66%
25.15%
139.66%
40.04%
3.42%
4.50%
-14.42%
-3.49%
20.86%
-19.01%
N/A
2.44%
N/A
79.87%
24.96%
-1.63%
31.56%
14.24%
N/A
22.16%
N/A
N/A
31-Dec-79
28-Feb-06
31-Aug-05
31-Oct-05
31-Jan-85
31-Jan-04
31-Aug-01
28-Feb-06
30-Sep-94
31-Jan-06
29-Feb-08
8.10%
47.75%
96.42%
49.98%
40.86%
30.13%
22.78%
21.05%
14.54%
36.93%
25.37%
12.30
27.88
80.54
4.66
4.61
14.51
0.08
0.12
Sector
Top
Bottom
CASAM CISDM Sector Index
Oracle Partners, L.P.
Jupiter Hyde Park Hedge Fund Limited (EUR class)
Consulta Canadian Oil & Gas Fund BV
McOmber Energy Fund
Mayer Partners LP
Acadia Fund I, LP
Berkshire Partnership
Foundation Financial Partners, LLC
Global Beverage Fund A
Marathon Resource Partners I, LP
Global Macro
Top
Bottom
CASAM CISDM Global Macro Index
Clarium LP
Friedberg Global Macro-Hedge Fund Ltd.
BTR Global Macro Fund
RG Niederhoffer Negative Correlation Fund, Ltd.
The Capital Trading Fund, Ltd.
Foyil Focused Strategy Fund (Individual)
BWII, LP
Pharo Alpha Fund, Ltd
Global Undervalued Securities Fund
Multi Asset Platform Plus Fund
Equity Long/Short
Top
Bottom
CASAM CISDM Equity Long/Short Index
Bomgaars Investments Fund
Hyerdale Capital
SYW LP
ChinaFund Cayman Ltd.
Jupiter Hyde Park Hedge Fund Limited (USD class)
Atlantis India Opportunities Fund
Loyola Capital Fund, Ltd
Cerulean Partners, LTD
Kinetics Fund, Inc.
Polestar Fund, LP
Fund of Funds
Top
Bottom
CASAM CISDM Fund of Funds Index
Eddington Macro Opportunities Fund - E1 Class (USD)
Pinnacle Natural Resources, L.P.
Ivy Trading Strategies Fund, LLC (Class B)
Tiberius Multi-Strategy Commodity Fund
Balestra Spectrum Partners, LLC
FMG India Opportunity Fund A USD
Hamton Fund of Funds
Gottex Portable Alpha Fund DJ Euro Stoxx 50
Rasmala Islamic Global Real Estate Opportunity Fund Class A
Amarillo Multi-Strategy
4.06
Commodity Trading Advisors (CTAs)
Top
Bottom
CASAM CISDM CTA Equal Weighted Index
Vision Capital Management, LLC
Ascendant Asset Strategic2 Options Program
Superfund Gold C (SPC)
District Capital Diversified
Tamarkin Managed Futures LLC
James Jones Seasonal Trading Program
Baryon Momentum Global Fund Limited
Keppler Asset Management Omega Fund
Technical
Pukula Oblique Options
Top and bottom funds presented above are ranked based on performance for the past month.
* Annualized volatility presented is from the latter of January 2005 or the inception date of the fund through the current month.
For inclusion in the CASAM CISDM Database or for more information, please email [email protected], or call (212) 603-5036
To receive email alerts or online access, call 800-715-9195.
Source: CASAM CISDM Database (www.casamhedge.com)
13
AIN072808
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Page 14
Alternative Investment News
www.totalalternatives.com
July 28, 2008
Alternatives Manager Search Directory
Powered by:
i i s e a r c h e s . c o m
The following directory includes search activity for the week. The accuracy of the information, which is derived from many sources, is deemed
reliable but cannot be guaranteed. All amounts are in US$ millions unless otherwise stated.
Total
Assets
Mandate
Size
Mandate
Region
Asset
Type
CBC Banque Fonds de Pension,
Brussels
60
-
Global
Infrastructure,
commodities
None
The scheme is planning first allocations to infrastructure and
commodities by the third quarter of 2009 and may hire asset
managers. It plans to allocate EUR6 million or 1% of total assets for
each mandate.
DSK Rodina Pension Insurance
Company, Sofia
92
-
Europe
Infrastructure,
commodities
None
The fund plans to invest for the first time in European ad U.S.
infrastructure and commodities by mid-2009. No specifics for the
size of the mandates have been set yet.
Franklin College, Franklin, Ind.
88
-
US
Hedge funds, other
Oxford Financial Group
The fund is looking to increase its allocations to hedge funds and
alternatives, presently at 15% and 6% respectively. It is awaiting
board approval to make the investments.
Gustavus Adolphus College,
Saint Peter, Minn.
110
-
US
Not specified
LCG Associates
2,200
44
US
Hedge funds,
real estate
Watson Wyatt Investment
Consulting
775
-
Global
Infrastructure, hedge funds,
private equity
Unknown
The scheme plans to make a 10% maiden foray into alternatives
across infrastructure, funds of hedge funds and private equity funds
of funds. It expects to make investments in mid-2009.
National Pensions Reserve Fund,
Dublin
21,000
-
Global
Hedge funds
Unknown
The scheme is analysing hedge funds with plans to invest for
diversification and higher returns. It may make the allocation this year.
New York Times Pension Trust
1,240
37.2
US
Not specified
Evaluation Associates
Raiffeisen Pensionskasse, Switzerland
1,100
-
Global
Infrastructure
None
200
-
US
Natural resources
Unknown
Fund & Location
Kellogg Company, Battle Creek, Mich.
London Borough of Camden
Pension Fund
St. Mary’s College, Notre Dame, Ind.
Consultant
Comments
The fund is reviewing its 10% alternatives portfolio. It may increase
the allocation for higher returns and will make final decisions at its
board meeting on Nov. 20. It may hire external managers pending
board approval.
The fund plans to invest $44 million in alternative investments,
including hedge funds and real estate, after its 2009 asset study.
The scheme has no immediate plans to hire external managers.
The fund plans to invest in alternatives for the first time and is
eyeing a 3% allocation.
The scheme is in the early stages of analysing infrastructure for the
first time. It has not set specifics on the timeframe, the funding or
the size for the allocation.
The endowment may increase its exposure to natural resources to
4% from 3%, as it believes the asset class serves as an inflation
hedge. It has not yet determined whether it will seek an additional
manager as part of the increase.
The G.E.C. 1972 Plan, Stafford, UK
2,400
-
Global
Private equity
Watson Wyatt
The scheme plans to hire an external manager for the first time for
global private equity, possibly by September. It has not yet set
specifics on the investment size or funding for the investment.
750
US
Infrastructure
Unknown
The fund will invest up to $750 million in infrastructure by
committing capital to a mixture of co-mingled funds, which will be
either U.S.- or internationally-focused.
15,148
-
US
Funds of hedge funds
Pension Consulting
Alliance
San Joaquin County Employees
2,230
Retirement Association, Stockton, Calif.
-
US
Infrastructure
Strategic Investment
Solutions
Florida State Board of Administration, 187,500
Tallahassee, Fla.
Los Angeles Fire & Police
Pension System
The fund has issued a request for proposals as it makes a maiden
foray into emerging fund of hedge funds strategies. All proposals are
due by Aug. 15. Email Derek Niu at [email protected] for a copy
of the RFP instructions.
The fund is looking to invest in infrastructure and is actively
educating its board of trustees on the investments.
For further information on iisearches’ daily search leads and searchable database of mandates awarded and lost since 1995, please visit iisearches.com or contact Keith Arends at 212 224 3533 or [email protected].
AIN072808
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Page 15
July 28, 2008
www.totalalternatives.com
WARD FERRY
(continued from page 1)
to slow, further affecting earnings. In June, its biggest losses
were from India’s Reliance Communications, HDFC and Tata
Steel, while Australian resources were flat due to the declining
price of steel. As a result, the firm took short positions and
purchased out-of-the money put options on both individual
stocks and indices, which showed some gains in July.
Among the shorts are Australian property company GPT
Group, which it closed out of in early July, and Taiwan’s High
Tech Computer (HTC) and Korea’s LG Electronics. Flagging
demand and distribution and pricing competition from the
iPhone led to the HTC short, and handset competition,
macro concerns in the U.S. and Europe and a possible
acquisition by the company led to the LG short. On the
positive side, Ward Ferry thinks crude palm oil is attractive as
a substitute for pricey soy and corn. It is long producers in
Malaysia and Indonesia.
For the $163 million Japan Fund, Ward Ferry expects
weaker global growth to take its toll—especially in trade to
North America. But with a strengthening labor market and
sound credit, Japan should avoid a severe slowdown. In
Alternative Investment News
response to weaker global growth, the firm is taking positions
in domestic-oriented sectors and has cut exposure to cyclical
exporters such as machinery and technology concerns. An
overweight to cyclical exporting sectors can be blamed for the
underperformance. The fund lags the Nikkei 225 Index, which
retuRned -6.51% in June and -5.67% YTD.
The Asian Smaller Companies Fund, with about $460
million, benefited from stakes in commodities producers; of
the fund’s top five performers, four are resource companies.
The fund, which invests in listed stocks but can take stakes in
pre-IPO companies, will stay invested in resources because it
continues to find companies trading at a discount to net
present value.
Due to rising resource costs as well as flagging demand, Ward
Ferry has revised forecasts downward for Universal Robina
Corp., the Philippines’ largest snack food concern, and for
United Spirits, the largest liquor company in India. But it has
revised up earnings estimates for Chinese internet company
Tencent, software concern Kingdee and Indian pharma
company Glenmark. They are seeing rising demand and have
limited exposure to rising commodity prices. The fund bolstered
its stake in industrial caterer Fu Ji Food to 3.8% from less than
1% of NAV. The long-biased fund’s most significant exposures
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Michelin North America, Inc.
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Alternative Investment News
www.totalalternatives.com
are to Australian, Indian and Hong Kong companies.
The fund beat the MSCI Asia Free Ex-Japan Index and the
Nomura Asia Small Cap Index, which registered -7.90% and 12.24% in the quarter, respectively. Year-to-date, the fund has
returned -19.58%, beating the MSCI (-21.19%) and the
Nomura (-29.34%). Since inception in 2003, the strategy is up
503.92%. CEO and CIO Scobie Ward declined to comment.
—Doug Cubberley
STEEPLE SHUTS
(continued from page 1)
Most investors are allocating to larger hedge funds, rather
than smaller sector-focused funds, making running a specialist
healthcare strategy nearly impossible, explained the official.
“People are scared to death. [They’re] more worried about
getting money out of funds than in funds,” he said. “[It shows]
how assets are being allocated now, in the overall market. Last
year [Steeple] was at the top of the pack. [We figured] if we
can’t grow the business, let’s just sit this one out.”
Regan and Partner Howard Altman will continue to work
together and plan on joining a large hedge fund firm, where
they could again co-manage a healthcare portfolio. It could not
be learned how far along in the job search the pair are, or what
the plans are for the six other Steeple employees.
Previously, Regan managed the Andor Healthcare fund at
the $3 billion firm. He left in July 2004, when his fund was
due to be liquidated as a result of Co-Founders Dan Benton
and Chris James deciding to go their separate ways
(totalalternatives.com, Aug. 27, 2004). Regan launched
Steeple later that year.
—Suzy Kenly
U.K. FIRM
(continued from page 1)
exempt from withholding tax in countries with double tax
treaties. Bruton said that withholding tax is another liability
that investors typically take on and his aim is to provide
investors with as little risk as possible.
Bruton said the secondary market is surprisingly
competitive. Policyholders can get a much better price there
than by surrendering back to the insurer for cash value. The
firm uses actuaries to determine risk and assess which policies
are the good investments given the initial purchase price,
premiums paid out until death and final death benefit. The
firm mitigates risk by re-assessing mortality rates as they
change. Bruton said the fund will use hedging to take out the
structural changes in interest-rate exposure.
Opus Life is offered in euro, Swiss franc, sterling and U.S.
dollar share classes. The investment minimum is £5,000 and
16
July 28, 2008
Bruton said the fund is aimed at a wide pool of investors,
including the retail community as well as pensions and other
institutions. Shares are listed on the Dublin Stock Exchange
in five-, seven- and 10-year terms with target return rates of
6%, 7% and 8%, respectively.
—Sarah Ilene Klein
CREDIT SUISSE
(continued from page 1)
derivatives, fixed-income products, including cash bonds, fixedincome derivatives, […] and interest rate products […] nothing
like this exists at any other firm on Wall Street.”
Alaimo and Alfred founded the capital structure desk at
Bear Stearns.
Meanwhile, Scott Schefrin, former senior managing
director at Bear Stearns, has reportedly joined a hedge fund.
He oversaw the capital structure desk and risk arbitrage
department with Laumann, who was his deputy. Alaimo and
Alfred reported to Schefrin. It could not be learned if Schefrin
has joined an existing fund or is starting his own venture. He
could not be reached by press time and a JPMorgan
spokesman did not return calls.
—Suzy Kenly
Quote Of The Week
“[The developing world] is eating up the food chain.”—Andrew
Perry, head of business development at Systematic Absolute Return
SAR, on the benefits of investing in agriculture funds (see story, page 7).
One Year Ago In Alternative Investment News
AdultVest, the hedge fund solely invested in the adult
entertainment industry, was staffing up—hiring two fund
managers, two directors of business development, a business
development associate and a director of information technology.
[The firm has since acquired iPorn.com and hired Mike Weiss,
creator of music downloading site Morpheus, to oversee the
Web site’s development (totalalternatives.com, April 14). Last
month, AdultVest won AIN’s Hedge Fund Launch of the Year
award (totalalternatives.com, June 27).]
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