Hedge Fund Alert

MARCH 7, 2012
2 BTG Pactual Capping Flagship Fund
3 Autonomy Hiring Amid Growth Spurt
3 Stat-Arb Vehicle Gaining Traction
3 Lombard Preps Sector-Specific Fund
4 Macquarie Traders Seek New Shop
4 Ascalon Scouting More Deals in Asia
4 Ex-Iridian Managers Eye Launches
4 Web Product ‘Simplifies’ Job for LPs
6 Hong Kong Seeder Shutting Down
Bayview Pitching Mortgage-Related Vehicles
Mortgage specialist Bayview Asset Management has raised $700 million for the
hedge fund component of its latest whole-loan vehicle.
The vehicle, Bayview Opportunity Fund 3, primarily targets nonperforming and
rehabilitated home loans, but also will pursue performing loans, commercial mortgages and agency mortgage-backed securities on an opportunistic basis. As it has
in the past, the Coral Gables, Fla., firm split the offering into a hedge fund, dubbed
Fund 3a, and a private equity vehicle, Fund 3b.
The unit of Bayview Financial launched another hedge fund last month with
$140 million. That vehicle, Bayview Mortgage Securities Master Fund, is focused on
buying mortgage bonds.
The hedge fund version of Bayview Opportunity Fund 3 held an initial close last
month and is still raising capital. The private equity version has yet to hold a first
close. The expectation is that Bayview could raise $1.5 billion overall for both the
See BAYVIEW on Page 10
6 Missouri Zeroes In on Strategies
Quant Firm Shaken by Berlekamp’s Departure
6 Foundation Targeting Fresh Talent
Investors in Berkeley Quantitative bolted for the exits last week after firm founder
and quantitative-investing pioneer Elwyn Berlekamp told them he no longer would
be involved in day-to-day operations.
Berlekamp, best known for his role in launching Renaissance Technologies’
Medallion Fund in the 1980s, told clients of his Fairfield, Conn., firm that he was
stepping down for personal reasons. That prompted three of Berkeley’s four anchor
investors to submit redemption requests for the full amounts of their investments.
The firm, which had less than $300 million under management at the time of Berlekamp’s announcement, immediately began returning investor capital.
Berlekamp now plans to serve as an advisor to Berkeley. Meanwhile, his partners, including Edward Raha, are scrambling to keep the business afloat.
Berlekamp, 72, spent much of his career as a mathematics professor at the
8 Aspect Anticipates Bump from US
11 LATEST LAUNCHES
THE GRAPEVINE
Portfolio manager Takashi Hashimoto
left Lyster Watson last week, destination
unknown. Hashimoto was part of a sixperson team running the New York firm’s
funds of funds. His duties have been
absorbed by Charles McNally, who heads
risk management for the unit. Prior to
joining Lyster Watson, Hashimoto was
chief executive of Chase Investment
Trust Management, a Japan-based unit of
Chase Manhattan that he ran from New
York. Before that, he spent 27 years at
See QUANT on Page 2
AQR Finding Demand for 130/30 Strategy
Details are falling into place for former Goldman Sachs executive Richard
Ruzika’s planned fund. Working via his
Dublin Hill Capital in Greenwich, Conn.,
Ruzika plans to launch Dublin Hill
Global Macro Fund with $40 million. The
AQR Capital has seen a surge of investor interest in an equity fund running an
out-of-favor strategy that could be due for a comeback.
The Greenwich, Conn., firm recently collected more than $100 million for its
AQR Equity Plus Fund. The vehicle, which launched in 2009, follows a so-called
130/30 strategy, meaning it places long bets representing 130% of its equity and
short positions equal to 30%. Proceeds from the short sales fund the added exposure on the long side. Like other funds employing the approach, the entity’s actual
long positions can total 120-140% of net assets while short positions can be 20-40%.
On top of the fund inflows, AQR has landed an additional commitment of $300
million for the strategy — presumably to be managed in a separate account.
130/30 funds, also known as short-extension vehicles, experienced rapid growth
in the mid-2000s. But the trend had run its course by 2008, when tumbling markets
left managers with disappointing performance numbers for their first few years —
See GRAPEVINE on Back Page
See AQR on Page 8
Mitsui Trust.
March 7, 2012
Hedge Fund ALERT
BTG Pactual Capping Flagship Fund
BTG Pactual is closing off new investments in its $2.2 billion
flagship fund, but is re-opening a smaller vehicle that trades
distressed mortgage bonds.
The Sao Paulo investment bank tentatively capped BTG
Global Emerging Markets and Macro Fund at $3 billion. For
now, it is accepting fresh capital only from existing limited
partners and from new investors who already have commenced
due-diligence reviews. The fund gained 3.4% last year — compared to a 4% loss for the HFRI Macro (Total) Index — and was
up another 3.4% in January. It returned 57.7% in 2009, the year
it launched, and 22.4% in 2010.
The $180 million BTG Pactual Distressed Mortgage Master
Fund launched in March 2010, but stopped accepting new investments a year later. Now, the firm has begun marketing the
vehicle again as it seeks to pursue buying opportunities ahead
of an expected improvement in the U.S. housing market. BTG
wants to raise an additional $100 million to $200 million for
the strategy, though the target could change depending on
bond-market conditions.
The mortgage fund returned 17.6% in 2010, then lost 4.6%
last year. It bounced back with a one-month gain of 8% in January. The vehicle is managed in New York by David Martin and
Gary Mendelsohn.
2
Martin and Mendelsohn also work on the flagship fund,
which currently focuses on four main areas: global treasury
rates, corporate debt, U.S. mortgage-backed securities and Latin America. The investments are managed by teams in Hong
Kong, London, New York, Rio de Janeiro and Sao Paulo.
In April, BTG plans to add a fifth component: a global nondirectional equity book run by David Herzberg in London. For
the past year or so, he’s been pursuing such investments with
about $500 million of the firm’s own money. The strategy also
is available through a dedicated vehicle, BTG Pactual Global
Equity Opportunities Fund, that launched on March 1 with
about $100 million of partner capital.
BTG is led by Andre Esteves. The firm manages $4.2 billion
overall. 
Quant ... From Page 1
University of California, Berkeley, where he developed several
algorithms that bear his name. He first tried his hand at asset
management when Renaissance founder James Simons,
himself a former math professor, hired Berlekamp in the
late 1980s to work on a fund called Axcom that Simons had
launched with fellow mathematician James Ax. After several
years of strong returns, Simons and Ax renamed the vehicle
Medallion Fund, after prestigious math awards they had won.
But almost immediately performance started to slip.
In 1989, Berlekamp bought out Ax’s stake in the vehicle. He
then moved the fund’s headquarters to Berkeley, Calif., and
helped tweak the strategy to emphasize high-frequency trades
— on the theory that it’s easier to predict near-term outcomes
than longer-term trends. The next year, Medallion Fund delivered a 55% net return, beginning a streak that made legends
out of Simons and Renaissance. Berlekamp’s role in Medallion’s
turnaround is detailed in Scott Patterson’s 2010 book, “The
Quants: How a New Breed of Math Whizzes Conquered Wall
Street and Nearly Destroyed It.”
Berlekamp soon returned to Berkeley, where he remains
on the faculty today. But around 2007, he was persuaded by
some of his students to start his own hedge fund. Berkeley
Quantitative began accepting outside capital in August 2009,
and since then has delivered a gross cumulative return of 18%.
Berlekamp has managed the portfolio from his home in the San
Francisco Bay Area.
The middling returns may be part of the reason why Berkeley hasn’t raised more capital. But another was a decree by Berlekamp that the firm not grow too quickly, according to Raha.
“It’s been truly a gift to work with him,” Raha said. 
Correction
A Feb. 29 article, “Firm Targets Pre-IPO Social Media,” incorrectly said that TangleTrade Advisors of Cedar Park, Texas, was
founded as Collins Capital Advisors. Both firms were founded
by Timothy Collins, but he operated them as separate businesses. Collins Capital is no longer in operation. 
March 7, 2012
Hedge Fund ALERT
Autonomy Hiring Amid Growth Spurt
Autonomy Capital continues to expand its investment staff in
response to steady growth in assets under management.
With inflows recently averaging $100 million a month,
the New York global-macro shop has hired three investment
professionals since the start of the year. Most recently, execution
trader Amit Sharma joined the firm’s London office last month
from global-macro giant Brevan Howard Asset Management.
Sharma is Autonomy’s second execution trader — the other
being Ian Epstein, who works in New York. The firm’s investment staff, led by founder and chief investment officer Robert
Gibbins, now numbers 10 professionals. Autonomy also employs nine people on the operations side.
In January, the firm brought on two more researchers:
Roberto Benelli, who previously was a senior economist at
the International Monetary Fund, and Robert Beange, a former
RBC Capital managing director who focused on quantitative
currency trading and other global-macro investments.
Fresh capital has been flowing to Autonomy on the strength
of recent returns. The $1.2 billion Autonomy Global Macro
Fund gained 13.6% last year, versus a 4% loss for the HFRI
Macro (Total) Index. The vehicle rose another 4.8% in January.
Since launching in 2003, the main version of the fund has delivered a 14.8% average annual return. Autonomy believes the
vehicle’s capacity is about $4 billion.
The firm manages $2.2 billion overall. Before starting the
business, Gibbins was head of emerging-markets proprietary
trading at Lehman Brothers. 
Stat-Arb Vehicle Gaining Traction
After a rough start, a statistical-arbitrage fund managed by
Ellen Wang’s Academy Investment is now in positive territory.
Academy Quantitative Global Fund began trading in September as global markets were reeling from the dual impact of
Europe’s deepening sovereign-debt crisis and S&P’s downgrade
of U.S. debt the month before. To complicate matters, the vehicle’s initial investments have been limited to European stocks,
which have been particularly volatile.
By Oct. 31, the fund was down 4.9% — and was still in the
red following gains in November, December and January. But
the fund tacked on another 4% in February, resulting in a 4.6%
year-to-date return and a 2.9% gain since inception.
Wang, a mathematics professor who formerly produced
impressive returns as head of quantitative investing at Clinton
Group, is one of the few hedge fund managers running a dedicated stat-arb fund these days. Well-known quant firms such
as D.E. Shaw and Renaissance Technologies manage statisticalarbitrage investments, but as part of broader multi-strategy
vehicles. Stat arb involves rapid-fire trading across large portfolios of securities based on mean-reversion analysis and other
quantitative measures.
Starting next month, Academy hopes to expand its investment focus from Europe to the U.S. It eventually will invest in
3
Asia as well, once assets under management reach $500 million. Ultimately, the fund will pursue thousands of trades a day,
picking from a universe of 1,500 U.S. stocks, 1,000 European
issues and 300 companies in Asia.
The fund began trading Sept. 8 with $6.8 million of partner
money. Academy now is in talks with a number of prospective investors capable of committing $25 million to $50 million
apiece. The firm is offering early backers discounted fees of 1%
of assets and 10% of gains, compared to the industry-standard
2-and-20 fee structure that will apply to later investors.
Academy hopes the fee discount will allow it to close on
$100 million of commitments in the next few months. The firm
is getting marketing help from North Creek Advisors of Stamford, Conn.
Although quant funds can be a tough sell due to the complexity of their strategies, Academy enjoys several advantages on the
marketing front — starting with Wang’s track record at Clinton.
From 2005 to 2010, the portfolio she oversaw generated a 21.2%
average annual return. In 2008, when the average hedge fund lost
19%, Clinton’s quant book gained 22%. At its peak, Clinton managed some $1.8 billion of quantitative investments.
Another plus: Many statistical-arbitrage vehicles were
wiped out during the financial crisis, and banks have pulled
back from the strategy. Thus Academy offers investors a rare
opportunity to get in on a pure stat-arb play. 
Lombard Preps Sector-Specific Fund
Lombard Odier Investment expects to raise at least $100
million for the launch of a consumer-stock fund on or about
April 1.
Consumer stocks represent one of the larger and more successful components of the firm’s multi-strategy vehicle, 1798
Fundamental Strategies Fund. Indeed, the sector accounts for
nearly a third of the fund’s $910 million of assets.
Sector head Bryan Mattson will serve as portfolio manager
of the new vehicle, 1798 Consumer Equity Long/Short Fund,
even as he continues to run a $300 million book for the flagship fund. Lombard Odier is setting up the dedicated vehicle
for investors who want to increase their exposure to Mattson’s
performance.
Three other components of the multi-strategy vehicle —
European stocks, international credit and special situations —
also are available via dedicated funds.
Mattson joined Lombard Odier in 2007 from Catapult Partners, an arm of Izzy Englander’s Millennium Management. In
marketing the consumer-stock fund, Lombard Odier is telling
investors that Mattson is among the firm’s top performers. He
is assisted by analyst Samir Jain, who joined the firm in 2010
from Gryphon International of Toronto.
The multi-strategy fund and related vehicles are run from
the New York office of Lombard Odier Investment, the assetmanagement arm of Swiss private bank Lombard Odier. The
investment unit manages some $2.6 billion of alternative investments. 
March 7, 2012
Hedge Fund ALERT
Macquarie Traders Seek New Shop
Five traders cut loose from Macquarie Group are looking to
stay together as a team at a hedge fund or other investment
shop.
The Sydney bank closed its proprietary equity-trading desk
in New York two weeks ago after just 18 months of operation.
Let go were traders Brian Clifford, Craig Engwert, Jaime Gualy,
Robert McHugh and Rennie Scinto. Macquarie pulled the plug
as part of a 10% staff cutback in its equity-trading division that
was prompted by declining profitability. The global head of
Macquarie Securities, Stevan Vrcelj, said last month that the
bank also plans to exit other business lines around the world.
The shutdown came as a surprise to the prop team members.
“They’re just shell-shocked,” said a source with knowledge of
their termination. “Performance was good. The numbers were
very good. They made money.” The group is seeking another
firm to join — together, if possible.
At least two of the traders have worked in the hedge
fund industry before. Scinto was a portfolio manager for Art
Samberg’s Pequot Capital, leaving before it shut down in 2009
amid an insider-trading probe. Before that, Scinto ran his
own shop with backing from New York hedge fund operator
JLF Asset Management. He started Scinto Capital in 2001 after
two years as a managing director at JLF, which was founded by
Jeffrey Feinberg, a former Soros Fund Management executive.
Gualy co-founded 1859 Partners in 2009. That hedge fund
firm had a focus on energy-company stocks, which Gualy
replicated when he joined the Macquarie desk last April.
Earlier, he worked for the now-defunct Carlyle-Blue Wave
Partners. 
Ascalon Scouting More Deals in Asia
With the ink still drying on its first two deals in Asia, Ascalon Capital is looking to invest in perhaps five more hedge
fund managers in the region.
The next deals might involve a long/short equity manager
focused on China or a multi-strategy operation. Strategies
out of the running include Asia-focused long/short and event
driven. That’s because Ascalon has a policy of backing no more
than one manager for any given strategy.
The Sydney firm, a unit of Westpac Bank, initially invested
only in Australia-based fund operators but began targeting
Asia last year. In December, it bought a 35% stake in Athos
Capital, a Hong Kong firm that plans to launch an event-driven
vehicle by midyear. A month later, Ascalon took a 30% stake
in Singapore-based Canning Park Capital, a long/short equity
manager founded in 2010.
Ascalon currently backs nine managers with a combined
A$4 billion ($4.3 billion) of assets. The firm acquires 25-45%
stakes by investing $50 million to $150 million with each firm.
Ascalon invests in both startup fund shops and more established businesses.
The firm is headed by Andrew Landman. Hong Kong-based
Chuak Chan oversees deal sourcing in Asia. 
4
Ex-Iridian Managers Eye Launches
Two portfolio managers who formerly worked together at
Iridian Asset Management are laying the groundwork for sepa-
rate hedge fund operations.
Ben Hunt and Jeff Silver had been co-managers of Iridian
Opportunity Fund before the Westport, Conn., firm shuttered
the vehicle late last year amid sharp losses and declining assets.
Word has it that Hunt and Silver increasingly disagreed over
how to manage the vehicle. They left the firm around yearend.
Hunt is now setting up an equity-focused fund that also will
pursue some macro-style investments. One source said the vehicle could launch in a matter of weeks.
Silver’s efforts apparently aren’t as far along. “He’s taking it
easier,” the source said. “He’s not as excited as [Hunt].”
The assets of Iridian Opportunity Fund peaked above $800
million, but were down to $466 million in the first quarter of
2011. As of October, the fund’s performance was down about
9% year to date.
Iridian was founded in 1996 by David Cohen and Harold Levy.
The firm had $6.7 billion under management as of Dec. 31,
mostly in long-only stock investments. 
Web Product ‘Simplifies’ Job for LPs
Technology boutique Simplify is offering investors a webbased service designed to automate all aspects of screening,
selecting and tracking hedge funds.
The product, dubbed PortfolioCentriX, is aimed at institutions, family offices and funds of funds that want to create
or expand a hedge fund portfolio but lack the know-how or
resources to do so without using an advisor. The technology
helps investors manage everything from due-diligence reviews
to tracking subscriptions and redemptions to calculating net
asset values and profits and losses.
“Investing in fund managers has always been a practice of
knowledge arbitrage,” said Simplify chief executive Brian Shapiro, who founded the New York firm in 2009.
Simplify, which originally developed PortfolioCentriX for
fund administrator DPM Mellon, began pitching it to a wider
audience this week. The firm is offering the service free of
charge, with the idea that customers will be willing to pay for
related products and services down the road.
Shapiro previously was president of Carbon360 Research
of New York, where he published an annual fact book for the
fund-administration industry. Simplify also markets a product
to fund managers and administrators called Penny, which automates certain back-office functions. 
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March 7, 2012
6
Hedge Fund ALERT
Hong Kong Seeder Shutting Down
Triple A Partners is going out of business after failing to gain
traction as a seed investor in hedge funds.
Sometime in April, the Hong Kong firm expects to sell what’s
left of its $20 million stake in Hong Kong-based Enhanced Investment Products and return the proceeds to its investors. The
firm is also winding down its marketing business, which introduced Asian funds to potential backers and helped U.S. and
European fund managers raise capital from Asian investors. It
shuttered its London outpost in 2009, but still has a U.S. presence.
One partner in the firm, Paul Smith, has teamed up with
Asia hedge fund specialist Simon Cox to start investment consultant AGS Capital. The firm advises family offices on investing
in funds managed by independent operators in Asia.
Smith formed Triple A, formally called Asia Alternative
Asset Partners, in January 2007 with Asia asset-management
veteran Roger Pyrke and U.S. hedge fund specialist Hans Tiedemann. The trio raised an initial $100 million, which included
$90 million from CLSA Capital of Hong Kong and Iveagh, a London multi-family office.
The plan was to seed 30 funds over five years. But Triple A
managed to seed only three managers before Iveagh and CLSA
pulled their backing in April 2009, in the wake of the global
financial meltdown. In addition to its $20 million investment
in Enhanced Investment, Triple A invested $25 million in
Jadeite Capital of New York and $10 million in London shop
360 Asset Management. Jadeite and 360 became inactive when
their funding was pulled.
Triple A put its seeding business on hold until 2010, when
it teamed up with fellow seeder Penjing Asset Management and
set out to raise another $100 million. But the effort foundered
and the joint venture was dissolved last year. 
Missouri Zeroes In on Strategies
MoDOT and Highway Patrol Employees wants to increase its
exposure to event-driven and long/short equity managers this
year.
The pension for Missouri’s Department of Transportation
and State Highway Patrol staffers wants to plow some $60
million into such funds. The $1.5 billion system sees the
investments as a way to keep more money in strategies that
are uncorrelated to broader financial markets. It’s likely the
process also will entail redemptions from market-driven
vehicles.
Summit Strategies is advising the Jefferson City, Mo., pension on the manager search. The pension also expects to connect with fund operators via banks’ capital-introduction teams
and placement agents.
The current hedge fund portfolio, which includes both
single-manager vehicles and funds of funds, gained 10% last
year. The pension maintains a target allocation of 15% for such
products, but currently has only 11.1% of its capital in the asset
class — and it intends to remain below its ceiling. “The underweight to hedge funds is offset by overweights to real assets and
private equity,” chief investment officer Larry Krummen said. He
added that his organization is “in the process of recruiting additional staff to dedicate more attention to all our alternative
asset classes.”
The pension’s hedge fund book typically encompasses 10-25
funds in the U.S. and Europe, with each getting commitments
of $10 million to $25 million. The managers currently running
its money include AQR Capital, BlackRock Alternative Advisors,
Bridgewater Associates, Deephaven Capital, Ospraie Management, Paulson & Co., Stark Investments and Taconic Capital, according to Preqin. 
Foundation Targeting Fresh Talent
Colorado Health Foundation is reshuffling its hedge fund
portfolio.
The $2.2 billion private institution has spent the past year
reviewing its investments with advisor Towers Watson. Part of
the impetus for the study was the foundation’s $1.5 billion sale
of a 40% stake in the HealthOne hospital system to HCA — a deal
that closed last October.
On the basis of the review, the foundation has decided to
unwind several existing positions and form new relationships
with nine managers.
Colorado Health’s investment staff, led by Stan Willie, expects to invest an average of $40 million apiece in the new
funds — all single-manager vehicles. The total would slightly
exceed the foundation’s 15% target allocation for hedge funds,
or $330 million. It’s unclear if Colorado Health is ending all or
just some of its existing manager relationships.
In any case, Willie and his team appear to have decided
which funds they want to invest in. The plan is to be invested
in the new funds by yearend. “We’ve improved diversification
within the portfolio and focused on areas where we think we
have the greatest chance to achieve alpha,” Willie said.
Colorado Health makes grants to organizations that support
the health of state residents. The Denver operation has been
investing in hedge funds since 2005. 
Track Past and Present
Fund Start-Ups
You can keep tabs on Wall Streeters who are
setting out on their own by monitoring “Latest
Launches,” which you can find in The Marketplace
section of HFAlert.com. The listing is chock full of
details about recent launches of hedge funds and
funds of funds, as well as information on vehicles
established in the last several years.
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March 7, 2012
8
Hedge Fund ALERT
Aspect Anticipates Bump from US
Commodities trader Aspect Capital is projecting a big increase in the amount of money it runs for clients in the U.S.
Investors in the States have told the London firm that it can
expect $1 billion of commitments from them by this time next
year, with about half of the money coming from institutional
players and the rest from individuals.
Aspect has been running money for U.S. clients for about
five years, thanks to the efforts of a marketing team in Stamford, Conn. In fact, backers in the States already account for
about a third of the shop’s $6.7 billion asset pool. But the expected commitments reflect a sizeable jump in their presence.
“In terms of the U.S., it’s the best pipeline we have had in years,”
an insider at the firm said.
Aspect’s Stamford office is led by North American sales chief
Eduardo Deschampelles, who typically oversees three other
marketing staffers. The group is currently down a man, as J.T.
Fucinga left this month for an unknown destination. Aspect expects to hire a replacement soon. Another member of the team,
Jason Sunderland, joined in the past few months from fund-offunds operator GAM.
Aspect’s flagship Aspect Diversified Fund gained 4.5% in
2011. That just topped a 4.3% gain for the BTOP 50 index, a
BarclayHedge product that tracks the largest commodities
funds open to new investors.
Aspect was founded in 1997 by Michael Adam and Martin
Lueck. Adam left in 2008.
In 1987, the two teamed up with David Harding to launch
AHL — a commodities shop that sold a majority stake to Man
Group two years later. Harding now leads the $29 billion Winton
Group. 
AQR ... From Page 1
leading many investors to dismiss the strategy as a fad.
Now, with the market recovering, there’s a growing sentiment that the product could catch on again. “Demand is there
for alpha-enhanced strategies and shorting to reduce volatility,
and AQR is a flagship name,” one asset manager said.
The AQR fund, as is typical for 130/30 vehicles, is registered
as a mutual fund. Part of their appeal to investors is that unlike
hedge funds, the vehicles don’t charge a 20% performance fee.
But despite the mutual fund structure, institutional investors
tend to view such vehicles more like hedge funds.
AQR has set a minimum investment requirement of $5
million for the vehicle. The offering is one of a number of
hedge funds and mutual funds the firm has been tailoring to its
institutional clients in recent years. AQR has $43 billion under
management. 
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March 7, 2012
9
Hedge Fund ALERT
CALENDAR
Main Events
Dates
March 13-16
April 15-17
April 24-26
May 8-11
June 12-14
June 19-21
June 25-28
Sept. 9-11
Oct. 10-12
Event
Boca 2012
Global Hedge Fund Summit
EuroHedge Summit 2012
SALT Conference 2012
Forum 2012
GAIM International 2012
Fund Forum International
Institutional Investment Conference
Fund Forum USA 2012
Location
Boca Raton, Fla.
Southampton, Bermuda
Paris
Las Vegas
Chicago
Monaco
Monaco
San Francisco
Boston
Sponsor
FIA
Institutional Investor
Hedge Fund Intel.
SkyBridge Capital
MFA
ICBI
ICBI
Institutional Investor
ICBI
Information
www.futuresindustry.org
www.marhedge.com
www.hedgefundintelligence.com
www.saltconference.com
www.managedfunds.org
www.informaglobalevents.com
www.informaglobalevents.com
www.marhedge.com
www.informaglobalevents.com
Event
Risk Management Conference
Derivatives 201: Trading Strategies & Valuation
AgReturn San Francisco
Investor Seminar
Wealth Management & Trust Conference
Breakfast Meeting
Inside Indexing Conference
Meeting of the Americas 2012
Demystifying Private Equity
CLO & Leveraged Loan Conference
Life Settlements Roundtable
Foundations & Endowments Summit
Alternative Investments Summit
Public Funds Summit
Real Asset Investing Forum
Institutional Investor Forum 2012
Emerging Markets Forum
Battle of the Quants
Location
Bonita Springs, Fla.
New York
San Francisco
New York
Scottsdale, Ariz.
Tarrytown, N.Y.
Philadelphia
Miami
Farmingdale, N.Y.
New York
Miami
San Diego
San Diego
San Diego
San Francisco
New York
New York
New York
Sponsor
CBOE
FMW
IIR
Infovest 21
ABA
ACG New York
Index Universe
FLAIA
ACG New York
IMN
IQPC
IMN
IMN
IMN
Opal
PLI
II Conferences
Global Capital Acq.
Information
www.cboermc.com
www.fmwonline.com
www.iirusa.com
www.infovest21.com
www.aba.com
www.acg.org/nyc
www.indexuniverse.com
www.flaia.org
www.acg.org/nyc
www.imn.org
www.iqpc.com
www.imn.org
www.imn.org
www.imn.org
www.opalgroup.net
www.pli.edu
www.iiconferences.com
www.battleofthequants.com
Sponsor
Terrapinn
Euromoney
Terrapinn
IQPC
Terrapinn
WRG
Opal
ICBI
IIR
ICBI
Infoline
WBR
Terrapinn
Information
www.terrapinn.com
www.euromoneyconferences.com
www.terrapinn.com
www.iqpc.com
www.terrapinn.com
www.worldrg.com
www.opalgroup.net
www.informaglobalevents.com
www.iirusa.com
www.informaglobalevents.com
www.informaglobalevents.com
www.wbresearch.com
www.terrapinn.com
Events in US
Dates
March 11-13
March 13
March 13-15
March 14
March 14-16
March 16
March 19-20
March 19-20
March 22
March 26
March 26
March 26-27
March 26-27
March 26-27
March 26-27
March 27
March 27-28
March 27-28
Events Outside US
Dates
Event
Location
March 12
Asian Family Office Forum 2012
Singapore
March 15
Wealth Management Conference
Luxembourg
March 19-21
Africa Investment Summit 2012
London
March 20-21
Custody, Clearing & Settlement Asia 2012
Hong Kong
March 27-29
CTA World Congress Europe 2012
London
March 29-30
Algo & High Frequency Trading Latin America Summit
Sao Paulo
March 29-30
South African Investment Forum 2012
Cape Town
April 16-20
Global Derivatives Trading & Risk Management 2012
Barcelona
April 22-25
GAIM Ops Cayman 2012
Grand Cayman
April 23-27
Fund Forum Asia 2012
Hong Kong
April 24
Managing the Consequences of the AIFM Directive
London
April 24-26
TradeTech Europe
London
April 24-27
Brasil Investment Summit 2012
Sao Paulo
To view the complete conference calendar, visit The Marketplace section of HFAlert.com
March 7, 2012
Hedge Fund ALERT
Bayview ... From Page 1
hedge fund and private equity components.
The two earlier vehicles in the fund series, which launched
in 2007 and 2010, collected a total of $3.1 billion. Fund 2 was
the first in the series to offer both a private equity and a hedge
version. The original vehicle was set up as a hedge fund.
The hedge fund component of Fund 2 had delivered a net
annual return of 12.8% as of July 31, 2011, while the private
equity version produced a 9.5% return. Fund 1 generated an
average annual return of 11.8%.
Despite the firm’s pitch, Bayview Opportunity Fund 3a is
much less liquid than a typical hedge fund. It has a two-year
investment period and a total life of 10 years, with a two-year
extension option. But the manager plans to return 25% of investor capital by the end of the third year, 50% by the end of the
fourth year and the rest by the end of the fifth year. After that,
limited partners may withdraw any remaining capital with notice of six months — so long as total redemptions don’t exceed
15% of the fund’s assets per quarter.
The private equity version, which invests in the same types
of assets as the hedge fund but with a longer time horizon, has
a three-year investment period and locks up investor capital for
10 years, also with a two-year extension option.
In exchange for better liquidity, investors in the hedge fund
version face higher expenses. Both components charge a 2%
management fee and standard 20% performance fee, but hedge
fund investors will have to pay 30% of annual gains in excess of
25%. And while the private equity structure comes with an 8%
preferred return, the hurdle rate for the hedge fund is threemonth Libor plus 150 bp — for an effective rate that’s currently
just under 2%.
Bayview Financial is led by David Ertel. Since 1995, the firm
has bought $20 billion of residential mortgages. In addition
to the asset-management unit, Bayview Financial has a loanservicing arm that employs 650 people.
In 2008, Blackstone acquired a minority stake in Bayview
Asset Management. 
From £499
Quote xxx
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America Square Conference Centre
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01/03/2012 11:1
March 7, 2012
11
Hedge Fund ALERT
LATEST LAUNCHES
Portfolio managers,
Management
company
Fund
Dublin Hill Global Macro Fund
 See Page 1
Strategy
Service providers
Richard Ruzika, Lance Global macro
Bakrow and Joe Howley
Dublin Hill Capital
Greenwich, Conn.
Waratah One Offshore Fund
Waratah Advisors,
Waratah Performance Offshore Fund Toronto
Domicile: Cayman Islands
416-687-6598
Market neutral
Equity at
Launch
Launch
(Mil.)
Prime brokers: Credit Suisse,
Goldman Sachs
Law firm: Sidley Austin
Auditor: Rothstein Kass
Administrator: SEI
April
$40
Prime brokers: TD Securities, Scotia
Capital, Morgan Stanley
Auditor: KPMG
Administrators: Commonwealth Fund
Services, Harmonic Fund Services
Feb.
$50
To view all past Latest Launches entries, visit The Subscribers section of HFAlert.com
APRIL 15-17, 2012 • THE FAIRMONT SOUTHAMPTON
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www.ii-alphahedge.com or www.marhedge.com
tuesday & wednesday,
march 27-28th, 2012
www.battleofthequants.com
March 7, 2012
12
Hedge Fund ALERT
on MKP’s plans for its current general
counsel, Patricia Alcamo.
THE GRAPEVINE
... From Page 1
money will come entirely from Ruzika
and partners Lance Bakro and Joe
Howley. Ruzika left Goldman a year ago
after 29 years at the bank, most recently
as head of a lending group.
Event-driven fund operator Owl Creek
Asset Management has hired a new
general counsel. Reuben Kopel starts at
the New York firm on March 12, following a stint at law firm Baker Botts. He
also has worked at Oppenheimer Asset
Management. He replaces Jane Korach,
who left the general counsel post at Owl
Creek last month to join private equity
shop Atalaya Capital.
Meanwhile, Chalkstream Capital and
MKP Capital are on the hunt for new
general counsels. Chalkstream is in the
advanced stages of a search for someone
to replace Ben Berkowitz, who stepped
down in January but will continue
working as a consultant to the New
York firm until June. There’s no word
Vice president Dominique Ramirez
Ahumada is leaving the marketing
department at TPG-Axon Capital. It appears her next move will be to join New
York technology-stock specialist Coatue
Management as director of investor
relations.
Executive recruiter Paul Sassa has left
Avonwick Group to join rival Bay Street
Advisors, where he started March 5.
His mission: to build up the New York
shop’s asset-management recruiting
practice, which works mainly on behalf
of alternative-investment shops.
Strategic Value Partners has hired
a marketing specialist to focus on
investors on the West Coast. The recruit,
Meaghan Mahoney, absorbed the duties
from other staffers at Strategic Value.
She arrived at the firm’s Greenwich,
Conn., headquarters in February. She
previously worked at Avenue Capital,
and before that spent time at Protege
Partners. Strategic Value, led by Victor
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Khosla, runs $4 billion via funds
employing distressed-asset, eventdriven and turnaround strategies.
WS Capital hired Jena Bjornson in
February as its chief compliance officer.
Bjornson previously worked at Blue
River Partners, which she had just
joined last year from Carlson Capital.
The compliance-officer position at WS
used to belong to Joseph Worsham, who
continues to serve as the Dallas firm’s
general counsel and chief operating
officer. WS runs about $700 million.
Debt specialist Trilogy Capital has added
a professional to its staff. Noah Charney
joined the Greenwich, Conn., firm from
a position as a credit analyst at Och-Ziff
Capital.
Macquarie Bank has lost a derivatives
salesman with a focus on hedge funds.
Working from the bank’s New York
office, Andrew Dawkins sold so-called
delta-one derivatives whose prices
change in exact proportion to those of
their underlying assets. He left last week
for a similar position at BNP Paribas.
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