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Alternative Market Briefing

Review of hedge fund launches, closures, trends, and regulatory and legal events - week 48

Monday, December 01, 2008

By Benedicte Gravrand, Opalesque London: A roundup of last week’s hedge fund launches, closures, index performance, trends, regulatory, legal and financial events pertaining to the alternative investments world.

Last week, we heard of fund launches from Value Partners, Craigmillar, Paskewitz, Armada Capital, Cogo Wolf, Putnam, Ferox and Brian Pinsker.

And we heard of fund closures from RiverSource, Derivative Consulting, Lyxor, Artemis, Parkcentral and Bluebay. Polygon said it would reactivate its shut funds next year.

Empirical Research Partners said that redemptions from hedge funds and mutual funds would total $1tln in 2008; a Sanford C. Bernstein survey found that hedge funds might sell $200bln more of assets; and a HFM survey reported a hedge fund assets drop of 5% in six months.

More hedge funds faced negative circumstances: Millennium, Ciano, Jana, New Star, Dexion, Polygon, Man Group, Ramius, Sparx, Gottex, Allianz, Satellite A.M., and several Australian FoHFs. Also risk arbitrage funds which had BCE positions, and merger arbitrage funds which had bet on BHP Billion’s possible takeover of Rio Tinto, were said to be negatively affected.

It was reported that HFs had reduced net equity holdings from 47% last year to 17% (Goldman Sachs); hedge funds had slashed leverage in early 2008 (FSA); the credit crisis had hit listed hedge funds as they were trading at less than ......................

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