| Book Review: Investment Philosophies by Aswath Damodaran | ||
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Choosing an investment philosophy is the heart of successful investing. To make the choice, though, you need to look within before you look outside. In Investment Philosophies: Successful Strategies and the Investors Who Made Them Work, Aswath Damodaran will help you do this by going beyond the simple explanations of traditional and alternative investment strategies, to discuss the individual underlying philosophies that support these techniques. Special offer to Opalesque readers. Order Investment Philosophies with us now and save 20%. £30.00/EUR48.72/ (US customers US$55.95) plus P&P. Quote promotion code CWD when prompted, or contact cs-books@wiley.co.uk for further details. Link for EU customers here. US customers, please follow this link. Remember to quote CWD for your discount! |
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| Hedge Funds lose to naive Dummy Portfolios | ||
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From Forbes.com: Warning to hedge fund investors: You would do better giving your money to a monkey. That, at least, is the conclusion of a recent report from Bridgewater Associates that has drawn surprisingly little notice. The money management firm compared returns last year at funds specializing in seven popular fund strategies to those of "naive" portfolios crudely mimicking those strategies. The result: The dumb fake funds did better in all but one case.
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| Hedge funds start to lose their allure | ||
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From the FT: Recent volatility in global markets is threatening to overturn the belief of investors that hedge funds are certain to outperform in weak markets. Despite the uncertainty, money is still going into the hedge fund sector, say industry experts. "Many people are still taking in too much money," said David Smith, head of GAM's $18bn (£10.23bn) funds of hedge funds business. Some of Man Group's AHL funds, which total about $9bn, have had a tough time. AHL Diversified, its benchmark $1.8bn fund, lost 4.4 per cent last month, bringing year-to-date losses to 2 per cent. Its $90m currency fund lost 10.7 per cent last month, with year-to-date losses to 15.5 per cent. More: Source
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| Clinton ready to recapture $4 billion | ||
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Daniel Strachman reports for the NY Post: After seeing more than $4 billion (from $5.9 billion to now $1.3 billion) in capital walk out the door, Clinton Group hedge fund founder George Hall has put two government investigations behind him and ready to attract some fresh money. According to the article, Hall believes that a number of investors, who were forced to redeem their positions in the firm's funds because of the investigations, will now return. More: Source
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| Wall Street stalwart takes on the hedge fund young guns | ||
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Not many hedge fund managers find themselves with $2bn under management less than a year after their launch, but then not many hedge fund managers start at the age of 71 with 30 years as a big-name Wall Street strategist under their belt. "I ran $10bn at Morgan Stanley so $2bn is not that much," says Barton Biggs… More: Source
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| Mutual funds to undergo major industry changes; furious lobbying `not seen in recent memory`continues | ||
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The Miami Herald reports the overhaul of the mutual fund industry is imminent. In charge is the Securities and Exchange Commission, whose staff since last fall has proposed 13 major industry rules, most of which are now the subject of a furious lobbying effort. “We have not seen anything like this in recent memory,” said Barry Barbash, the former SEC top mutual fund cop and now a partner at the Washington office of Shearman & Sterling. “It may be the summer of their discontent for some people in the mutual fund business.” Source
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| US wealth advisors recommend to put 20% into Alternatives | ||
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STOCKS are still awfully pricey, at least by historical standards. And with interest rates rising, bonds may be primed for a fall. That could add up to a nasty one-two punch for the average portfolio. So, many financial advisers say it may be time to start looking into alternatives like hedge funds as well as mutual funds that invest in real estate and commodities. This NY Times article describes a couple adding a hedge fund to their investments, and they are now considering commodities. That would raise their commitment to alternatives to RegentAtlantic's, their wealth management firm, recommended 20 percent. Source
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| Hedge Fund Tech survey – extended until May 21st | ||
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A new survey launched by PA Consulting Group (PA) will investigate how alternative investment managers are using technology to support the investment process. The goal of the survey is to provide senior hedge fund managers with industry benchmarks on spending for technology that supports pre-trade, execution and post-trade processes. The report will also include a review of risk management, position keeping and portfolio management features of leading technology vendors.
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| BNY, CSAM Officials Warn Against Outsourced Compliance Officers | ||
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From Compliance Reporter (InstitutionalInvestor.com): Officials at Bank of New York and Credit Suisse Asset Management say it is not a good idea to use privately outsourced compliance officers because the duties of chief compliance officers are unique to each firm and should not be supplied by an outside vendor. More: Source
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| Deutsche Bank Provides Brokerage To Banking Clients | ||
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From Private Asset Management (InstitutionalInvestor.com): Deutsche Bank Private Wealth Management recently formalized a private banking model that gives its high-net-worth clients access to brokerage services from within the private bank. The focus exclusively on PWM client relationships. More: Source
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| ABN Amro picks hedge fund chief | ||
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ABN Amro has appointed Andrew Sinclair, previously with UBS, as global co-head of hedge fund coverage, in a move aimed at boosting the bank's provision of execution and credit-related services to the hedge fund market. Source
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| Smaller Hedge Funds Look to Prime Brokers to Capitalize on Investor Demands | ||
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From HedgeWorld.com: Smaller hedge funds also are in need of providing transparency to investors, although they may not be able to purchase special software or hire an investor relations guru to get it all done. Giving the concept of transparency another look are smaller prime brokerage operations such as TNI Securities, which wants to keep its emerging hedge fund clients one step ahead of the competition. Source
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| UK: Demand grows for absolute returns | ||
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From FT Money: Increasingly, say financial advisers and private client stockbrokers, minimizing losses is not good enough for high net worth individuals. The demand now is for absolute returns, which generally means investing in hedge funds. This month it was reported that there are now more than 8,000 hedge funds with assets of $1,160bn (£653bn), up from $745bn in mid-2003. The reason for the rapid increase in the number and value of funds is simple: the CSFB/Tremont Hedge Fund Index, which measures hedge fund performance, is up by 29.3 per cent for the four years to March, compared with a 25 per cent fall in the MSCI World Index. Source
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| UK websites rate fund managers across their careers | ||
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If you insist on putting your faith in a fund manager, websites set up by Bestinvest and Citywire both attempt to assess fund managers' records across their careers. Citywire gives a small number of managers a star rating based on returns they've earned for all the funds they've managed. The returns are assessed over 36 discrete months. These returns are set against the fund's benchmark index and the amount of risk taken by the manager. Source
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| System to compare fixed income funds in Europe launched (JP) | ||
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The Financial Times reports that a powerful group of fund managers has launched a classification system for fixed income products that will allow investors to compare fund performance across Europe. The European Fund Categorisation Forum - which includes companies such as Schroders, Fidelity and Goldman Sachs Asset Management - has teamed up with Fefsi, the pan-European trade body, to promote the new classification system.
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| Copenhagen Lawyers Pension Funds To Discuss Hedge Fund Investment | ||
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From Globalmoneymanagement.com: Hedge funds have hit the radar screen of yet another large European pension fund--Juristernes og Økonomernes Pensionskasse (JØP), the DKK22 billion (EUR3 billion) scheme for lawyers and economists in Copenhagen. The fund wants to clarify its position on whether it will invest in hedge funds. More: Source
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| BaFin To Clarify Prime Broker Liabilities this week | ||
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From Compliancereporter.com: The German regulator is writing to firms this week to clarify a gray area of regulation regarding the legal liability of prime brokers. Source
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| UK Pension funds cut exposure to equities, alternatives expected to increase significantly | ||
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From The Herald: Mercer's study found that the number of pension schemes that invest in alternative asset classes was expected to increase significantly in the next year. The survey, covering 360 UK pension schemes with assets of more than £112bn, found that the average benchmark allocation to equities was 64%, a reduction of four percentage points since last year. Just 2% are invested in alternative asset classes such as property, hedge funds and private equity. More: Source
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| UK: Women are outstripping men in portfolio size | ||
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From the FT: In the UK, Women are outstripping men in portfolio size, according to a recent report by Datamonitor, the market research company. How much are women ahead by? Some 299,300 women had more than £200,000 in cash, bonds and shares, compared with just 271,700 men. More: Source
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| Aviva chief warns of pensioner poverty in the UK | ||
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From the FT: The chairman of the UK's biggest life assurer has warned that a generation of British pensioners faces life below the poverty line due to a collapse in confidence in the life and pensions industry and inadequate savings. Pehr Gyllenhammar, chairman of Aviva, which operates as Norwich Union, said the "bashing" of the UK industry had to stop if people were to be encouraged to save. Source
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| Hedge funds now at 20 – 30% of a private wealth management client portfolio | ||
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Hedge funds now at 20 – 30% of a private wealth management client portfolio From the FT: Datamonitor, the market research firm says capital-protected products are becoming more popular as people look for more stable returns. Alternative investments have also become a mainstay for wealth managers, particularly hedge funds, which typically account for 20 to 30 per cent of a private client's portfolio now, according to Scorpio, a wealth management consultancy. Warwick Newbury, group chief executive at SG Hambro, confirms this trend: "What the bear market has done is focus clients' minds on hedge funds. We have slanted our offering much more heavily towards hedge funds and structured products." More: Source
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| Asia: Hedge funds spark Manic Monday last week but drop restores sanity of buoyant bourses | ||
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From the FT.com: …after years as the playground of long-term institutional investors, the region's markets are for the first time experiencing the flipside of a rally that was driven by hedge funds - a messy stampede for the nearest exit. The hedge funds' unceremonious departure may not look pretty but it is perfectly rational. Even without the need to repay loans taken out to short the dollar, the temptation to take some profits in Asia is hard to resist. Moreover, Asia is more exposed to macroeconomic worries than markets in the west as it would be hit harder by a slowdown in both the US and Chinese economies. The question now is whether the markets will continue on their downhill path, or will other buyers step in to fill the hole left by the fleeing hedge funds? More: Source
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| Indian Markets Tumble, Trade Halted | ||
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From Reuters.com: Indian stocks were in virtual free-fall Monday, wiping out $40 billion in market value, amid frenzied selling on fears a new Congress-led government will slow the pace of reform in Asia's fastest-growing economy. The Bombay Stock Exchange and National Stock Exchange suspended trading after their benchmark indices fell 15.5 percent and 17.5 percent, respectively. Source
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| 11th Annual Hedge Fund Forum New York City - Save up to $500 | ||
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June 21-24, 2004 * Roosevelt Hotel * New York City From the team that brought you GAIM USA, the only must-attend event of the summer on key regulatory and investment issues in the heart of New York City. **Register Today and Save up to $500**
For more information, visit: www.iirhedge.com or contact Marc Weitzman at the Institute for International Research p: 212.661.3500 ext.3092
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| Alternative Investment Roundup: three concurrent conferences on Hedge Funds, Private Equity & Real Estate | ||
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July 13 - 15, 2004 Waldorf Astoria - New York, NY The Alternative Investment Roundup is three concurrent conferences at the same location covering the most important alternative asset classes-Private Equity, Hedge Funds, & Institutional Real Estate. The programs share networking events, offering you unmatched opportunities to meet a wide array of alternative investment professionals and investors. Over 750 decision makers attended last year's event.
10% discount for Alternative Market Briefing Readers for the Alternative Investment Roundup. Register by May 17, 2004 for additional Early Bird Discount. For more information, please visit www.srinstitute.com/air or contact Chris Petersen at CPetersen@srinstitute.com |
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| 7th Annual Portfolio Management Conference Frankfurt/Germany | ||
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7th Annual Portfolio Management Conference June 15 – 16, 2004, Hilton Hotel, Frankfurt/M. The Conference for Institutional Investors
Key speakers: Prof. Harry Kat, City University, London Topics include:
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| Asset Allocation Summit London - 10% discount for subscribers | ||
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LONDON, JUNE 21-22, MILLENNIUM GLOUCESTER HOTEL At this critical juncture for the development of the world's equity and bond markets, this conference will be examining strategic and tactical asset allocation, current strategy and alternative investing. Our conference in October 2003 attracted over 300 participants to the Inter-Continental Hotel. "THE BIG EVENT FOR THE BIG PICTURE" The theory and practice of asset allocation is undergoing dramatic change. The dominant position of equities in pension schemes is under question and investment consultants are putting forward new ideas regarding the structure of asset allocation benchmarks. Multi-asset mandates are coming back into fashion. Asset allocators are grappling with uncertain economic and market conditions, and the correlation between equity and bond markets has reversed. Alternative Investments are seeing record new money flows. The Asset Allocation Summit features speakers at the very heart of these key developments. For anyone involved in asset allocation, this could be the most significant investment conference of 2004. OVER 300 DELEGATES IN 2003 ASSET ALLOCATION SUMMIT 2004 features presentations on:
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| Institutional Investor invites for second annual Hedge Fund Awards Dinner in NY on June 24, 2004 | ||
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Institutional Investor News and Alternative Investment News are delighted to present the second annual Hedge Fund Awards Dinner, to be held at the Capitale Restaurant in New York City, on June 24, 2004. The evening will start with a cocktail reception, followed by dinner and the awards ceremony. This gala, black tie affair – held in conjunction with Institutional Investor’s Spring Hedge Fund Investment Roundtable, June 23-24, 2004 – will bring together the hedge fund industry to recognize and applaud the achievements of their peers. The awards dinner will include key industry players – hedge fund managers, funds of funds, endowments, foundations, and corporate and public pension funds. Nominees for the awards are selected by the editorial team of Alternative Investment News. Subscribers, readers and other industry members are encouraged to visit our website to offer their input and comments on the nominations. Winners will be selected by the editorial team of Alternative Investment News. Winners will be announced at the event.
2004 Alternative Investment News’ Editorial Advisory Board: Award Categories: Hedge Fund Leader of the Year, Fund of Funds Leader of the Year, Institutional Manager of the Year, Emerging Manager of the Year, Institutional Investor of the Year
To find out who is nominated and to register for the event contact: Nazneen Kanga nkanga@iinews.com
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| gaim 2004 - ICBI`s 10th Annual Global Alternative Investment Forum | ||
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8-10 June 2004, Lausanne,
Switzerland - only 35 minutes from Geneva
With 1200 attendees in 2003, Gaim 2004 is the largest global hedge funds event around. Gaim is also known for its extensive and objectively researched programme to find the very latest and most successful talent in the industry. Over 200 speakers are on the 2004 programme - including Cutting-Edge Academics & Leading Thinkers, The Most Significant & Groundbreaking Institutional Investors, The Most Successful FOF And Multi-Manager Houses, Leading Economic Strategists, and Over 100 Of The World's Top Performing Open, Emerging & Established Hedge Fund Managers, some of which you will never have seen anywhere else! To enhance your learning & networking opportunities there are several new features for 2004 including:
Contact ICBI: +44 20 7915 5103, or email info@icbi.co.uk, website: www.icbi-gaim.com 
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Alternative Market Briefing has been called the best free newsletter on hedge funds. Our mission is to intelligently select and timely provide the most important daily news for professionals dealing with hedge funds. Alternative Market Briefing offers both a quick overview and indepth coverage of all subjects through the "Source" link that leads you to the news sources. Most news sources used do not require a subcription, however some may ask you to register. Once registered, you can access these news sources freely. Please mail us your feedback and suggestions to feedback@opalesque.com - we love to hear from you!
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+49-89-512668-68 This newsletter is edited by Matthias Knab (MK) for Opalesque Ltd. For more information about me and Opalesque Ltd. please use this link. Jeff Posner (JP), a Chicago based PR specialist and free lance writer focussing on the financial industry, is a contributing editor of this newsletter. He can be reached at Geoffp7@juno.com. Did you know? Opalesque is giving you free access to the newsletter archive - use this link. Disclaimer: The information contained in this newsletter
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