Editor's note
PODCAST: Niche, Secured Loan, Real Estate Exposure
Arixa Capital's principals, Jan Brzeski and Greg Hebner, specialize in private lending secured by real estate.
Drawing from, and building on their past professional experience, they share how they set up an income-oriented, risk-controlled, capital preservation niche strategy across U.S. west coast real estate ...
They also host educational webinar series for investors seeking alternatives to mainstream investment options.
This podcast can be accessed for free here:
If you would like to participate in a podcast,
Sona Blessing
Here are the details for the next one on Wednesday 19th October 2016
You can sign up for it here.
www.opalesque.com/index.php?act=Radio&id=147
Previous features can be accessed for free here
and can also be downloaded as i-Tunes Podcasts
please e-mail me using Subject Ref: Podcast at:
blessing@opalesque.com
Research specialist and author of Alternative Alternatives
Moderator of Opalesque Radio/Podcasts
Today's Headlines
Dallas based emerging manager up 8.6% in Q3, bringing net return since inception (March 1st) to 15.3%
Matthias Knab, Opalesque: Portfolio manager Chris Colvin posted his recent investor letter to the popular Harvest Exchange (link below), reporting a return of 8.6%, net of fees and expenses, significantly outperforming its peers (HFRX Equity Hedge Index) and the large cap index (S&P 500). Colving pointed out that the net return was also nearly as high as its small cap benchmark (Russell 2000) des...more
↑ TopOpalesque Radio: California private lenders find sense in income-oriented funds
Benedicte Gravrand, Opalesque Geneva: Two private lending specialists share how they set up an income-oriented niche strategy across the US west coast’s real estate market. Jan Brzeski Jan Brzeski started his career in the real estate industry in 2002, focusing on income property acquisitions and operations. After the financial crisis, he and an older partner originated several private loans to...more
↑ TopOpalesque Exclusive: Dutch hedge fund Saemor gains in September on strong long positions
Komfie Manalo, Opalesque Asia: The Netherlands-based asset manager Saemor fund gained 1.4% in September. Performance was helped by a solid contribution from its long positions, while the short positions performed in line with the market. Saemor said in its monthly report to investors, "Most sectors contributed positively, of which consumer discretionary added the most. On the single stock level, ...more
↑ TopOpalesque Exclusive: Catana’s Big Data fund undergoes glitches, founder to take up CEO role
Benedicte Gravrand, Opalesque Geneva for New Managers: When German fund manager Catana Capital launched its Big Data fund on 30 June, it broke into unfamiliar territory - for the fund management industry at least. The fund invests exclusively on independent trading signals generated from Big Data analysis, combined with artificial intelligence algorithms. But it has had its birth pangs. The fund...more
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Chinese hedge funds recover from early losses
Komfie Manalo, Opalesque Asia: China-focused hedge funds, particularly the largest, are enjoying good returns as the recovery in the stock market has helped them reverse losses they posted early this year, Bloomberg reported. Greenwoods Golden China Fund, with $1.5bn in asset and the $728m Pinpoint China Fund both reported positive gains last month, extending their growth which started to trickle...more
↑ TopWhat asset managers think about the SEC Modernisation rules
Benedicte Gravrand, Opalesque Geneva: Following the Securities and Exchange Commission (SEC)’s final decision on Thursday to modernise investment companies’ reporting and liquidity risk management, State Street issued a survey it had conducted in August among 100 global asset and alternative asset managers about their readiness for these changes. The survey found that: 67% of asset managers e...more
↑ TopManulife A.M. recommends embracing the volatility
Benedicte Gravrand, Opalesque Geneva: The authors of a recent Manulife Asset Management report on global economic themes for 2016 and beyond, say they do not expect fiscal stimulus any time soon, and recommend investors embrace the markets’ volatility and uncertainty. Chief economist Megan Greene said that central bank action had pushed government borrowing costs down significantly; "In January ...more
↑ TopOpalesque Roundup: Hedge funds shrink posting second strongest decline since 2009: hedge fund news, week 41
In the week ending 14 October, 2016, data from HFR showed that hedge fund launches through the first half of 2016 numbered 406 while liquidations reached 530. The resulting net decline of 124 is the most since 2009 when the industry suffered a net decline of 239 funds. Bayshore Capital Advisors has launched its second private debt multi-manager fund; China’s biggest distressed investor, DCL Invest...more
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M&A - Man Group to buy property manager Aalto Invest, Front Street Capital agrees to sell Jemekk Capital Management to J2 Capital Management, Can M&A solve the active management conundrum?
Man Group to buy property manager Aalto Invest From FT.com: Man Group is to buy Aalto Invest, the property investment manager, as the world’s largest listed hedge fund continues to try and reduce its reliance on the performance fees of AHL, its flagship fund range. Man, which posted net inflows of $1.3bn in the three months to the end September to halt a year of declining assets, said the deal...more
↑ TopHedge funds terms take a hit, finds ECB
From Globalcustodian.com: Provisions of finance collateralized by euro-denominated securities and over the counter (OTC) derivatives become less favorable for hedge funds during a three-month reference period according to European Central Bank (ECB) research. The research, conducted as part of the ECB’s SESFOD survey, revealed that this applied to the period from June until August. Respondents ...more
↑ TopKentucky Retirement Systems plans to get out of hedge funds
From Kentucky.com: The $14.9 billion Kentucky Retirement Systems plans to end its controversial investments in hedge funds. The KRS board’s investment committee on Friday reached “a general agreement” on a three-year plan to withdraw about $1.5 billion that KRS has invested in hedge funds over the last six years. Formal votes must follow for the committee on Nov. 2 and the full board on Dec. 1. ...more
↑ TopManagers Profiles - Joel Greenblatt’s investing secrets revealed, Chamath Palihapitiya proves himself as a hedge fund manager, The Weatherstone approach to hedge fund investing
Joel Greenblatt’s investing secrets revealed From Barrons.com: The Columbia University professor and co-founder of Gotham Asset Management made the case for value investing in his best-selling The Little Book That Beats the Market, buying shares of businesses that were cheap relative to returns on invested capital and earnings yield. With Robert Goldstein, his longtime partner, Joel Greenblatt cr...more
↑ TopHedge funds using sophisticated computer algorithms are gaining an edge
From FT.com: Michael Botlo sits in his office in midtown New York, where whirring computers crank out investment returns of more than 20 per cent. He knows that his company’s algorithm-driven trading, a strategy which many hedge fund watchers fear is eliminating jobs, actually needs one ingredient: more of the right people. “The platform is robust enough to create scale, but we don’t have enoug...more
↑ TopComment - With assets in a funk, interest rates at zero and IPOs scarce, what’s capital to do?
From WSJ.com: Snapchat is not about to disappear—this newspaper reported earlier this month that the firm may go public next year with a $25 billion valuation. Don’t you wish you had invested at a $500 million value? Lots of investors underwater this year sure do. Last month Perry Capital, which peaked with $15 billion under management in 2007, closed its flagship fund. Richard Perry, a Robert Rub...more
↑ TopRegulatory - SEC sets liquidation risk management regulation, This proposed investing rule would be a ‘dangerous mistake’, European regulator publishes UCITS and AIFMD remuneration guidelines, Hedge funds in push to curb rules over shorting now that Britain is to leave the EU
SEC sets liquidation risk management regulation The Securities and Exchange Commission today voted to adopt changes to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end funds, including mutual funds and exchange-traded funds (ETFs). The new rules will enhance the quality of information availab...more
↑ TopLegal - Australian banks to use PLO precedent against U.S. hedge funds
From AFR.com: Australian banks being sued by American hedge funds for allegedly manipulating financial market interest rates will try to knock out the U.S. court case by advocating a legal precedent set by the Palestine Liberation Organisation. Legendary American commodity speculator Richard Dennis, and a hedge fund firm depicted in the The Big Short movie for earning billions betting against t...more
↑ TopPeople - UK buyout and hedge funds make progress in gender diversity
From FT.com: Women are taking more senior roles at UK private equity groups and hedge funds, with one in eight partners women last year, up from one in 10 the previous year, according to a study of gender diversity in the financial sector. The data, which was compiled from the Financial Conduct Authority via a Freedom of Information request by executive search firm DHR International, shows that co...more
↑ TopCommodities - Hedge funds cut bullish yen bets amid currency’s three-week drop, Hedge funds temper record bearish wheat wager as demand climbs, Hedge funds turn most bullish on U.S. crude in over two years, Rising rig count stifles crude oil price gains as hedge fund short-covering ends
Hedge funds cut bullish yen bets amid currency’s three-week drop From Bloomberg.com: The yen held a three-week decline against the dollar as hedge funds trimmed bullish bets on the Japanese currency by the most since May amid growing confidence the Federal Reserve will raise interest rates this year. Japan’s currency was little changed after depreciating by about 3 percent in the past three we...more
↑ TopInvesting - Appaloosa’s David Tepper stays defensive ahead of the elections, Why is this Indian hedge fund going short on Amazon?, Hedged fund-backed Biffa floats after slashing IPO price, NewAlpha and Aviva invest EUR 2.5m in ETF analysis platform
Appaloosa’s David Tepper stays defensive ahead of the elections From Institutionalinvestor.com: Appaloosa Management founder David Tepper, whose pronouncements are often market-moving, is telling investors he remains cautious on the stock market heading into the final weeks before the presidential election. Tepper is currently somewhat long the stock market and somewhat short bonds, according ...more
↑ TopActivist News - D.E. Shaw evaluating deal for controlling stake in Terraform Power, Activist shareholder threatens board fight at Pier 1 Imports
D.E. Shaw evaluating deal for controlling stake in Terraform Power From Reuters/STLToday.com: Hedge fund manager D.E. Shaw and Co. said it may make a non-binding proposal for Maryland Heights-based SunEdison Inc.'s stake in Terraform Power Inc., according to a regulatory filing on Friday. D.E. Shaw and Co. was evaluating various deals with the two companies which could result in a controlling ...more
↑ TopNews Briefs - Goldman Sachs vindicated but bruised in court battle with Libyan fund, Group linked to Soros opposes Phoenix prosecutor's campaign, Hedge fund pioneer and philanthropist Henry Swieca donates $1m to The National WWII Museum in New Orleans, Norway to withdraw $15 bln from its wealth fund, can put bitcoin in portfolio in future
Goldman Sachs vindicated but bruised in court battle with Libyan fund The outcome of a two-and-a-half-year legal battle between Goldman Sachs and Libya's $67 billion sovereign fund is a triumph for the Wall Street giant, which was vindicated despite embarrassing revelations about how some of its bankers conducted business. The London High Court found in favor of Goldman Sachs on Friday, with Judg...more
↑ Top…And Finally - Fun with pennies
From Newsoftheweird.com: Robert Napolitan, 34, was arrested in Taylor, Pennsylvania, in September and charged with theft of a drum containing 300,000 pennies from his employer, Pyne Freight Lines. That steel drum weighs several tons and, of course, netted Napolitan only $3,000. (By contrast, in New York City's Diamond District in September, a brazen thief made off with a 5-gallon drum containing 8...more
↑ TopYesterday's Top Stories
KKR raises $6.4bn for the largest pan-Asia infrastructure fund
Fugitive hedge fund founder captured in Singapore
Opalesque Exclusive: Citco records a positive first half for fund of funds
Opalesque Exclusive: K2 launches ESG certification
Bucking the trend, top hedge fund makes plans for a second SPAC