{literal} {/literal}

 

News

Service

Citi`s Tribeca hires UK FSA`s capital market sector leader to head London operation
Hedge fund Tribeca Global Management LLC is hiring Gay Huey Evans from the Financial Services Authority, the UK market regulator which is investigating Citigroup, the fund's parent. Huey Evans' hiring marks the beginning of a build-up of a London-based European hedge fund platform by Tribeca, a unit of Citigroup Alternative Investments, the fund said. The 50-year-old will start in September as president of Tribeca Global Management (Europe) Ltd. At the Financial Services Authority (FSA) she was capital markets sector leader. Huey Evans will bring experience in risk management, capital flows, electronic exchanges, hedge funds and market infrastructure, said Tanya Styblo Beder, chief executive officer of Tribeca.

The FSA has been looking into a massive government bond sale made by Citigroup traders last August that caused wild swings in the market. The bank has always denied market manipulation but expressed regret over the trade. Sources told Reuters late last week that the FSA has all but concluded its investigation and will fine Citigroup for control failures but not market manipulation. Citigroup denied any conflicts of interest on its new employees' part....Full article: {literal}Source{/literal}

The charm of side letters: Hedge funds offer more and more specialized deals for large investors
Walkers, the global offshore law firm of choice for investment managers, financial organizations, prime brokers and international law firms, said today that the continued popularity of hedge funds as an investment option for pension funds and other large pools of institutional capital has accelerated the trend toward the use of special arrangements, such as side letters, for select fund contributors.

"An increasing number of U.S. pension funds are allocating additional capital to hedge funds," said Mark Lewis, a partner at Walkers and joint head of the firm's investment funds team, "and the parallel development is the increased demand for more favorable investment terms, often by the use of side letters."

For example, a side letter can implement a change to the terms of a hedge fund's offering and is usually drawn up to accommodate the wishes of large institutional investors who want more immediate access to funds or to pay a lower management or performance fee.

"A side letter may also be needed to allow a pension fund to invest in a hedge fund without violating the terms of the pension fund's charter documents or the provisions of ERISA," Mr. Lewis added. "Driving this trend is a significant increase in the funds allocated to the alternative investment sector, even though institutional investors have lost some of the influence and buying power that they had a few years ago."

A recent State Street Corp. survey estimates that public and government pension funds will account for the largest increase in hedge fund investing by institutional investors in the coming years. The majority of institutional investors polled said that they intend to increase their hedge fund holdings over the next three years in hopes of maximizing profits and mitigating risks. Leading funds including California Public Employees' Retirement System (CalPERS) are already using hedge funds to improve returns for their investors.

"As hedge funds become a more accepted component of the investment strategies employed by the pension funds and institutional investors, we expect to see more capital allocated by pension funds and traditional institutional investors to hedge funds," Mr. Lewis added. "The unique investment requirements that these types of organizations have and the amount of capital invested by them will continue to drive the need for side letters."

Indeed, this trend is evident on both sides of the Atlantic. United Kingdom pension funds are also increasing their allocations to alternative investments such as hedge funds, according to Watson Wyatt Investment Consulting. {literal}Source{/literal}

AIMA releases Offshore Alternative Fund Director`s Guide
The Alternative Investment Management Association (AIMA), the leading global hedge fund and alternative investment industry association, today announced the launch of its Offshore Alternative Fund Directors’ Guide. Created by a Working Group of leading industry professionals within AIMA’s global membership, the guide considers the fundamental practical, legal and tax considerations when selecting and appointing Directors of offshore alternative funds. It explains the basic tasks which Fund Directors should carry out and suggests how they should manage their relationships with the Fund’s service providers. The Guide is aimed at: “The Guide contains some detail as to requirements and general advice on several important issues such as the review of annual audited accounts and issues relating to liability insurance”, stated Steven Whittaker, Chair of the Working Group and Member of the AIMA Sound Practices Committee. “It should be noted that the Guide is produced by volunteers who have worked extremely hard and they have our thanks for creating this valuable tool.”

The Guide is being sent at no charge to every AIMA member company in 46 countries as well as to all financial regulators (70 institutions) and institutional investors (over 750 institutions) on its confidential database. The Guide is available to purchase by non-members, at GBP50 per copy, info@aima.org No online Source

100 Women in Hedge Funds appoints second president
At its Annual Meeting today, the 100 Women in Hedge Funds Board of Directors approved the appointment of Amanda J. Pullinger, to President of the Association. Amanda has been a member of the Board of Directors of the Association for two years, was formerly the Chair of the Governance Committee and was the 100 Women in Hedge Funds Gala Committee Chair in 2003 and 2004. Dana B. Hall, CFA, one of the three founders of the organization, steps down after her three year term as President, but will continue to be on the Board of Directors.

“Amanda had the unanimous vote of the Board of Directors” observed outgoing President, Dana Hall. “She made an enormous personal and professional commitment to 100 Women in Hedge Funds over the last four years; she has demonstrated proficiency in leadership by stewarding the organization through fundraising and governance challenges and, most importantly, Amanda shares the Board of Directors vision for expanding the breadth and reach of the organization to serve more of our peers.”

Carol Kim, Co-Founder of 100 Women in Hedge Funds, said, “The Board of 100 Women in Hedge Funds is very grateful to Dana Hall for her inspiration and dedication as our first President. Her ongoing service and support of the organization as a Board member is vital to our continued success as we expand our education, mentoring and philanthropy programs.”

100 Women in Hedge Funds is a global membership association of more than 2700 professional women who are in financial services careers in and around the hedge fund industry. The group’s mission includes advancing a positive image of the alternative investment industry, providing unique, high quality educational opportunities for members, promoting personal and professional advancement, and providing a productive, efficient way for members to make a difference through philanthropy or volunteerism. Amanda Pullinger is Vice President of Aquamarine LLC. She is responsible for managing the administration, marketing, and investor relations for Aquamarine Fund Inc. (an offshore private investment fund) and Aquamarine Value Fund L.P. (a US-based private investment fund.) She joined Aquamarine LLC as a partner in January, 2001. No online Source

Chicago panel discusses Opportunities in New Exotic Financial Instruments - Closed-end Funds, Hedge Funds and Structured Products
A panel of financial experts will meet on Tuesday, June 21 to discuss the topic “Opportunities in New Exotic Financial Instruments - Closed-end Funds, Hedge Funds and Structured Products.” This is a topic of growing interest in that individuals and portfolio managers recently have invested tens of billions of dollars in such instruments in order to boost their risk-adjusted returns or diversify their portfolios.

The panelists for the meeting will be (1) Mr. Keith A. Styrcula, Chairman of the Structured Products Association, and VP, JPMorgan Chase Equity Derivatives; (2) Mr. John Larkin, Managing Director, HFR (Hedge Fund Research) Asset Management, and (3) Mr. Paul C. Williams, Managing Director. Nuveen Investments. The moderator for the evening will be Mr. Matt Moran, VP, CBOE, and a member of the Chicago QWAFAFEW steering committee.

The meeting will occur from 5:00 p.m. to 6:30 p.m. on Tuesday, June 21, 2005 at the Chicago Board Options Exchange, 400 South LaSalle Street, Chicago.

The meeting is co-sponsored by Chicago QWAFAFEW (Quantitative Work Alliance for Applied Finance, Education & Wisdom) www.qwafafew.org and the Structured Products Association www.structuredproducts.org.

Admission is $10 with light snacks and drinks provided. Please RSVP via www.qwafafew.org/chicago by Wednesday, June 15th. No online Source

Cox expected to introduce less legislation, but can regulations also swing too far back... and why the Valley smiles at Cox
From the FT: The Securities and Exchange Commission is likely to introduce fewer new regulations under Christopher Cox's chairmanship compared to his predecessor, and may strike a new tone on enforcement, people familiar with the chief US financial watchdog said yesterday. SEC insiders also said Mr Cox, the congressman nominated by President George W. Bush to replace William Donaldson, was expected to forge a new unity among the Republican commissioners at the SEC if he is confirmed by the Senate.

Rod Hills, a former Republican chairman of the SEC who knows Mr Cox and Mr Donaldson, said: "Chris is a solid, conscientious business lawyer who will tend to appreciate the difficulties that regulation has for business and perhaps will be cautious in terms of new regulation, whereas Bill came from a world where regulation was more respected...Full article: Source

Is there a risk the regulatory pendulum swings too far back under Cox? From the FT: The changing of the guard, announced this week, at the US Securities and Exchange Commission may be apt, even if William Donaldson's decision to step down as SEC chairman by the end of this month is a surprise. He has had to cope with what has arguably been the worst crisis of confidence in American capitalism since the commission's founding in 1934, and put new safeguards in place. But some in the business community complain that he has been too heavy-handed a regulator. It may indeed be time for a lighter touch in implementing post-Enron regulations. If so, Christopher Cox, whom the White House yesterday nominated to take Mr Donaldson's place, may be the man for the moment.

However, there may be a risk of the regulatory pendulum swinging too far back under the chairmanship of Mr Cox, a conservative Republican congressman. Source

Why Cox has the Valley smiling
BusinessWeek.com writes Bush's new choice to head the SEC is a darling of the high-tech industry, which is hoping he'll scuttle expensing of stock options: Business reps, especially the tech set, are almost giddy at the prospect of Cox, a Harvard-trained lawyer and MBA, taking the helm of the chief federal agency for markets regulation. Cox practiced securities law before his election to Congress in 1988 from a well-heeled Orange County (Calif.) district and is widely regarded as one of the smartest lawmakers around. {literal}Source{/literal}

Jim Cramer invites an essential question: Should investing be entertaining?
From Investors.com: As with most things in life, there are two ways to look at CNBC's show "Mad Money with Jim Cramer." The pro-Cramer view is that the former hedge fund manager is a good influence on Main Street because he provides unique stock-market insights. The anti-Cramer camp would drolly counter that he presents a very shrill voice of experience, and his stomping, preening, yelling and buzzer-pounding schtick threatens to make a mockery of investing (among the show's 16 available buzzers are TRAINWRECK! HALLELUJAH! KA-CHING!).

Cramer, 50, invites an essential question: Should investing be entertaining? Aware of his responsibilities, he's (still) an investor at heart and not a television personality (yet). "If the takeaway for people is that this is a fun game, that's wrong," Cramer says. Still, the issue has resonance...Full article: {literal}Source{/literal}

UBPAM Hires Napoli, Former Executive at Wilshire Associates
Union Bancaire Privee Asset Management LLC. (UBPAM) has hired Wilshire Associates executive Michael Napoli as a Senior Managing Director and member of its Management Committee. Mr. Napoli, formerly a Senior Managing Director and member of the Board of Directors at Wilshire Associates, will augment the firm's existing senior management line up. His primary focus will be advising the firm's institutional clients and will additionally take part in the firm's investment management process. Previously, Mr. Napoli was in charge of Wilshire's Hedge Funds Group and Funds Management Division where he oversaw all of the firm's investment manager research and asset management functions.

UBPAM, founded in 1998, is a New York City-based, SEC-registered Investment Advisor with more than $6 billion in hedge fund assets under management. UBPAM is solely dedicated to managing fund of hedge fund products and providing customized absolute return solutions for institutional investors. UBPAM is affiliated with Union Bancaire Privee (UBP), which is headquartered in Geneva, Switzerland. Through this relationship, UBPAM is supported by UBP's global hedge fund research teams located in NY, Geneva and London. In addition to UBPAM's $6 billion in U.S. assets, UBP's European hedge fund businesses encompass an additional $13 billion, ranking UBP's total $19 billion in hedge fund assets among the largest allocators of capital to the industry. {literal}Source{/literal}

Convivo Capital Management appoints Peter Botoucharov as Investment Strategist
Peter, a Bulgarian national, worked at the International Monetary Fund between 1994 and 1998, when he was an assistant to the Dutch Executive Director. In that capacity, he advised the IMF Board on the content of IMF-sponsored programmes and had a role in evaluating IMF policies in numerous emerging market economies. Peter joins Convivo from Commerzbank, where he was head of global emerging markets strategy. Prior to that, Peter worked at Deutsche Bank as an emerging markets strategist.

Convivo Capital Management was founded by Julian Adams (CEO) and Paul Luke when they bought out the Guernsey-based emerging market fixed income business of Aberdeen Asset Management. Convivo’s flagship Absolute Sovereign High Yield Fund has generated an average annual return of 24.5% since its original launch in July 1999. No online Source

Fimat adds Shooter Multi-Strategy Master Fund to Fimat Volatility Arbitrage Median
Fimat Group announced that as of April 2005, the Shooter Multi Strategy Fund was added to the Fimat Volatility Arbitrage Median (FVAM™). FVAM™ is a performance measure for the Volatility Arbitrage hedge fund strategy and is, in part, designed to raise the profile of this strategy. FVAM™ is maintained by Fimat Alternative Investment Solutions.

The addition of the Shooter Multi Strategy Fund brings the total funds in FVAM™ to seven. FVAM™ is an equally weighted portfolio of funds where performance is collected from the independent administrators in the funds’ base currency and supplied as a percentage (net) return or as Net Asset Value per share.

FVAM™ was launched in December 2003 and contains back-tracked data from January 2003 onwards. Current market conditions have proved difficult for Volatility Arbitrage managers but interest in this strategy, which fundamentally aims to treat volatility as an asset class of its own, continues to grow rapidly.

The Shooter Multi Strategy Fund is managed out of London, by options trader Mark Shooter, who heads his own team of traders and quantitative analysts. The fund focuses on exchange– traded, front month derivatives to reduce risk, while increasing transparency and liquidity in its investment universe. The fund uses a multi strategy approach to volatility trading. Relative value strategies are producing returns in low volatility environments and put protection positions can provide high returns when volatility spikes. The fund has an excellent track record in both low and high volatility environments and has not had a negative month since launch (Past performance, however, is not necessarily indicative of future performance.) {literal}Source{/literal}

Faith in CDO values lost after Ford/GM cuts
Reuters reports investors have lost faith in the valuation of complex credit derivatives such as collateralised debt obligations following the sell-off prompted by the downgrade of U.S. automakers in the past month, Michael Ridley, a managing director at JP Morgan, said.

"There has been a degree of loss of trust in the valuation of correlation trades," Ridley told Reuters on the fringes of an International Securities Market Association meeting in Budapest on Thursday. "People are questioning whether they are getting paid for the risk they are taking." The leveraged nature of trading in CDOs means their price movements are much more volatile than in the normal bond markets. The downgrades prompted a sell-off in the so-called equity tranches of CDOs, which bear all of the losses on the first defaults in a portfolio of credits. {literal}Source{/literal}

Citigroup-Legg Mason asset swap would shake industry, Merrill and Morgan Stanley to follow?
From Dow Jones/Morningstar: According to published reports Thursday, Baltimore-based Legg Mason (LM) is negotiating with Citigroup Inc. to acquire the New York-based financial- services giant's asset-management business. The transaction reportedly would involve Legg Mason swapping its brokerage unit, along with cash and company stock, for Citigroup Asset Management.

...An asset swap or sale, if successful, would likely lead to copycat deals among brokerages and fund companies."The industry has been looking to see who's going to go first," said Ben Phillips, a managing director at financial-services consultant Cerulli Associates. "If this happens, you can expect Merrill and Morgan Stanley to do something similar...Full article: {literal}Source{/literal}

CyberTrader takes traders beyond back-testing with intuitive strategy center
CyberTrader, Inc. today unveiled Strategy Center, a comprehensive suite of technical analysis tools available for active traders that give them the power to both back-test customized trading strategies and simultaneously scan the market for stocks that are meeting those strategies. {literal}Source{/literal}

Kissinger gives serious warning on energy conflict in Central Asia
From the FT: Henry Kissinger, former US secretary of state, on Wednesday warned that the global battle for control of energy resources could become the modern equivalent of the 19th century “great game” the conflict between the UK and Tsarist Russia for supremacy in central Asia. “The great game is developing again,” he told a meeting of the US-India Business Council. “The amount of energy is finite, up to now in relation to demand, and competition for access to energy can become the life and death for many societies. It would be ironic if the direction of pipelines and locations become the modern equivalent of the colonial disputes of the 19th century.” His comments come amid tensions over the building of a $4.5bn gas pipeline from Iran to India through Pakistan, which has become a critical part of the two-year India-Pakistan peace process. {literal}Source{/literal}

Schwarzenegger plans to reduce greenhouse gases by 25%, Groups recommend to factor climate risk in investments
Speaking to hundreds of international leaders gathered here for the United Nations World Environment Day, Gov. Arnold Schwarzenegger announced a plan to reduce California's contribution to gases that many scientists believe cause global warming. Gov.Schwarzenegger said yesterday California should take steps to reduce its greenhouse gas emissions 25 percent by 2020, a move that would put his state in the forefront of international efforts to combat climate change. The targets are more stringent than the Bush administration's policy but less aggressive in the next few years than those in the Kyoto Protocol, the international global-warming treaty. Source

Related news: Groups recommend to factor climate risk in investments
From PIOnline.com: The World Resources Institute and Coalition for Environmentally Responsible Economics recommend investors “assess climate risk posed to their investments and include climate-risk adjustments when valuing companies due to climate-change policies,” according to a report released today by the groups.

The report, "Framing Climate Risk in Portfolio Management," is designed “to help investors analyze business risks and regulatory uncertainties associated with global climate change” and their impact on corporate value, the report said. Full article: {literal}Source{/literal}

RSM Richter to monitor affairs of Norshield hedge fund, protect client assets
Form CBC.ca: Norshield Asset Management (Canada) Ltd. has appointed RSM Richter to monitor its affairs and ensure client funds are protected, in accordance with a regulatory order issued two weeks ago.

The regulators' concerns were raised after Norshield decided earlier in May to suspend redemptions of client money. Norshield and Olympus couldn't or wouldn't adequately explain their investment structure, according to the OSC. The commission said Thursday that a hearing scheduled for Friday has been adjourned to July 8...Full article: {literal}Source{/literal}

Hedge fund demand for European IPOs falls
Reuters reports hedge funds are taking less interest in Europe's initial public offerings as they cut back on risk, a factor which is hitting the prospects of some new listings. Bankers and sales staff say that in recent months hedge fund orders for stock in some IPOs has fallen by as much as a quarter, making it harder for them to price their offerings within marketed ranges. Hedge funds had been among the biggest buyers of new share issues but recent market turmoil has hit their performance and desire to take on risk. Bankers said that though it varies over different deals, the last few months has seen average hedge fund involvement fall to below 30 percent from 40 percent. "Hedge funds are having the worst time ever and the risk profile of their investments has definitely become more cautious...Full article: {literal}Source{/literal}

Almost $1bln hedge fund assets moved to Jersey, senior delegation to woo managers at conference
Hedge fund managers with funds valued at more than US dollars 900m have opted to move to Jersey already this year, attracted by the streamlined regulatory environment; an easing of the Government policy toward new business entrants; and the quality of life the Island jurisdiction has to offer.

A large senior delegation representing Jersey’s funds industry is at the GAIM Conference next month to build on the recent growth in the sector. More fund managers are actively enquiring about a move to the Island and the Jersey Funds Association, who will be exhibiting at the conference, is keen to build on the initial momentum. {literal}Source{/literal}

Dow Jones Indexes to launch index for Kuwait
From IFIOnline.com: Dow Jones Indexes, a leading global index provider, has announced the launch of Dow Jones Kuwait Index, a composite equity index that tracks the performance of the Kuwait stock market.The index has been licensed to Industrial & Financial Investments Co. (IFIC)—one of the leading investment firms in Kuwait—to be used as the basis for index funds and index-related products.The index is a full-market, capitalization-weighted index that will include 118 components. All companies included in the index are domiciled and headquartered in Kuwait—with a primary listing at the Kuwait Stock Exchange—and are available for trading...Full article: {literal}Source{/literal}

Pangaea Capital targets $1.5bln for Asian distressed fund, partners with Pequot, John Mack and leading Asian financial institutions
From FinanceAsia.com: Newly established Pangaea Capital is in the process of raising a targeted $1.5 billion for an Asian distressed investment fund. A unique feature of the new fund is that it will source 80% of its capital from leading Asian financial institutions in an innovate structure that allows its Asian institutional investors the right to co-invest alongside the fund in its transactions. According to Pangaea's founder Robert Zulkoski, the fund's high caliber Asian investor base serves as a key strength in a market place that increasingly favors local over foreign investors...Full article: {literal}Source{/literal}

Background: Japan`s Shinsei midsize bank, supersize ambitions
Form BusinessWeek.com: The returns bring the word "supersize" to mind. Shinsei Bank Ltd., the lender sold at a government auction to Western investors for $1.2 billion in 2000, has delivered $3.7 billion in profits to its buyers. But while the bank's primary backers -- Ripplewood Holdings, GE Capital, and Mellon Bank -- have been doing high-fives over their windfall from two separate share offerings, those who have since bought into Shinsei are more likely to be shaking their fists. Since hitting a post-IPO high of $8.20 per share a year ago, the stock has fallen by 38%. It's Thierry Porté's job to make sure all shareholders -- not just the gaijin giants who rescued the bank -- profit from Shinsei. Full article: {literal}Source{/literal}

New Briefs: Merrill funds Sesame St to boost money know-how, Email going blind caused NYSE shutdown, Morgan Stanley to return downtown, Soros involved with bid for US baseball team, Strategic Compliance Solutions Opens U.S. Office, 97 Million Contracts Traded on Eurex in May, Korean Borse wants to tap more Chinese money (JP33)
Merrill funds Sesame St to boost money know-how
U.S. investment bank Merrill Lynch is expanding its ties with "Sesame Street" to help boost children's financial literacy and improve their awareness of global cultures. (Yahoo.com)

Email going blind caused NYSE shutdown
The New York Stock Exchange halted trading four minutes before the closing bell Wednesday because of an error message that circulated millions of times throughout the exchange's communication system, NYSE Chief Executive John Thain said Thursday. (Yahoo.com)

Morgan Stanley to return downtown
Morgan Stanley has agreed to lease three floors of an office building in lower Manhattan and will move 2,300 of its workers there from midtown, Mayor Michael Bloomberg's office said early Thursday. (newsday.com)

Soros involved with bid for US baseball team
Jonathan Ledecky, a Washington entrepreneur who opened a bid to buy the fledgling Nationals back in April, said this week that Soros was on his team. The process is only in the early innings. US baseball teams do not change hands every day, and several groups hope to buy the Nats. (FT.com)

Strategic Compliance Solutions Opens U.S. Office
Strategic Compliance Solutions, LLC (SCS), a regulatory compliance and operations consulting firm headquartered in the U.S. Virgin Islands, today announced the opening of its new office in Essex, Connecticut. Kate Dressel, founder and president of SCS, said that the new office allows the firm to better accommodate the needs of its clients on the mainland United States, and, in particular, in the northeastern states.

SCS was formed in 2003 to address the growing needs of hedge funds, funds-of-funds and futures funds for regulatory compliance and operations assistance. The firm provides efficient, cost-effective solutions that are tailored to the individual business plans and long-term goals of its clients.

97 Million Contracts Traded on Eurex in May
Turnover up 16 percent year-on-year/European equity options trading further increases. (Eurexchange.com)

Korean Borse wants to tap more Chinese money (JP33)
Korea Exchange, which operates Asia's sixth-largest stock market, plans to list its first Chinese company this year in an effort to bolster investor interest. The exchange is "focusing its efforts on China," the chief executive, Lee Young Tak, said Wednesday in Beijing. "One of my main strategies is to globalize." The bourse has a shortlist of fewer than 10 companies traded in Shanghai and Shenzhen, he said.

Lee is competing with counterparts in Singapore and Hong Kong to tap investor interest in China, South Korea's biggest trading partner. This quarter, an average of $1.9 billion in shares traded each day on the Kospi, the South Korean benchmark index, down from $2.8 billion in the first three months of the year. (IHT.com) No online Source

LHABITANT Seminar: Quantitative Insights for Hedge Fund Investment
London June 23 Dorchester Hotel – Limited enrolment course
Upgrade to state-of-the-art tools for hedge fund investment with expert practitioner and internationally acclaimed author François-Serge Lhabitant.

Attend this exclusive seminar and gain insight into the latest tools for implementing hedge fund programmes, controlling hedge fund risk, and measuring and reporting performance. Topics covered in the course include:

  • New sources of value for Fund of Hedge Funds (FoHF) and Hedge Funds (HF) programmes
  • Reconciling alpha picking and style timing with a low-liquidity environment
  • Advanced techniques for the optimal design of FoHF and HF programmes
  • Using Value at Risk to measure risk and manage hedge fund portfolios
  • Building a representative benchmark
  • Applying state of the art tools for HF performance and risk attribution
Presented in a practical and highly accessible manner, this course will help you to incorporate the latest results of alternative investment research into your management processes and keep abreast of the best industry practices.

François-Serge Lhabitant is head of investment research at Kedge Capital (London) and professor of finance at EDHEC Business School and the University of Lausanne. He is the author of the best-selling Hedge Funds: Myths and Limits and the recent Hedge Funds: Quantitative Insights.

For further information and registration, email: AIeducation@edhec.edu or call Mélanie Ruiz on +33 493.187.819. Download brochure and registration form

Exclusively for managers: hot products from Eurex and Eurex US
A lot of motion but no action? Get infinite liquidity: Futures and Options on the Dow Jones EURO STOXX 50SM Index.
Make your move NOW with Eurex, the world’s leading derivatives exchange: www.eurexchange.com

We’ve added something Xtra: Eurex US now offers Russell 1000® index futures and Russell 2000® index futures – with no trading fees! www.EurexUS.com

HFOptimizer platform for fund of funds construction - 30 days free trial
AlternativeSoft AG has enhanced, for the third time in 2005, its platform for fund of hedge funds construction. For the first time on the financial market, a software is able to give quantitative and qualitative ratings to hedge funds and to deliver a final rating. The platform now includes:

Portfolio Construction

  • Construct the fund of funds by minimizing the extreme negative returns and out-perform the peers.
  • Stress test your fund of funds during the major financial crisis.
  • Simulate all your hedge funds or fund of funds during LTCM 1998 or Tequila 1994 crisis.

Hedge Fund Rating

  • Style Analysis.
  • Select the best hedge funds according the analysts qualitative ratings.
  • Select the best hedge funds according to the software quantitative ratings.

Return Forecasting

  • Forecast the hedge fund index returns for the next 3 months and out-perform your competitors.
Download the software for free, for 30 days from our website. Visit our website: www.alternativesoft.com, Email: information@alternativesoft.com, Phone: London +44 (0)207 510 2003, Zurich +41 (0)76 331 15 38.

Endowment & Foundation Master Class and Hedge Fund Capital Introduction Roundtable NYC June 16
Thursday, June 16, 2005 8:00 AM - 5:45 PM
InterContinental The Barclay (East 48th Street & Park Ave.), New York City

Master Class Sessions will feature:
Frank Fabozzi, Ph.D. CFA, Adjunct Professor of Finance at Yale University
Robert A. Jaeger, Ph.D., Vice Chairman and Chief Investment Officer, EACM Advisors LLC
Clifford Asness, Managing Principal, AQR Capital Management
Maurice Maertens, Chief Investment Officer, New York University
Beth Snyder, CFA, Director, University of Virginia Endowment
Guy Wyser-Pratte, President, Wyser-Pratte & Co.
Charles Clarvit, Principal, Quellos Group, LLC
Sassan Alizadeh, Ph.D, Portfolio Manager, Highbridge Capital Management

Capital Introduction Roundtables featuring an eclectic mix of Funds:
Algert Coldiron Investors, LLC
Ampere Capital Management, LP
CastleRock Management
FORT LP
Henderson Global Investors
Mallet Capital Management, LLC
Narragansett Management, LP
Old Hill Partners, Inc.
Patagonia Argentine Recovery Fund
Pirate Capital, LLC
TUSK Capital Management

To Register, please contact: Jonathan Mistofsky, jmistofsky@imn.org, 12.901.0509 Event Director: Eliot Jacobowitz, ejacobowitz@imn.org, 212.901.0550
Attendance is strictly limited to those hedge fund investors invited and approved by IMN; there is no charge for Qualified Investor participation.

11th GAIM 2005 in Lausanne: finest program, distinguished speakers
11th Annual Global Alternative Investment Management Forum
6-10 June 2005, Beaulieu, Lausanne, Switzerland

Meet Over 1500 of The Most Influential Global Asset Allocators, Newest Launches & Innovative Players In Commodities, Hedge Funds & Esoteric Strategies

GAIM 2005: Your Winning Shortcut!
Not only is GAIM 2005 the world’s premier and most comprehensive global alternative investment event – it is simply the largest annual meeting place for the most influential and successful industry players.

Over 250 Speakers!
Independently researched and produced, GAIM is as ever committed to delivering you not only the newest funds, the freshest ideas & most innovative strategies but insights from some of the most experienced and serially successful players in the business. Just some of these include:

  • Mark Anson, CalPERS
  • Stanley Fink, MAN Group
  • J. Morgan Rutman, Harvest
  • Paul Gorman, Mayo Foundation
  • Stephan Zimmerman, New Smith Capital Partners
  • Dr Robert Shiller, Yale University
  • Gavyn Davies, Prisma Capital Partners
  • Art Samberg, Pequot
  • Don Philips, Morningstar
  • Sean Simon, Ivy Asset Management
  • Avinash Persaud, GAM
  • Jamil Baz, Deutsche Bank and many many more....

You will find the full programme and registration details on: http://www.icbi-uk.com/r.asp?uID=287

MARHedge and Pensions & Investments conference 27-29 June San Francisco
MARHedge Institutional Investment Conference
In partnership with Pensions & Investments
June 27-29, 2005 The Palace Hotel San Francisco, CA

MARHedge's Mid-Year Institutional Investment Conference June 27-29 in San Francisco, presented in partnership with Pensions & Investments, will focus squarely on the opportunities and challenges stemming from the influx of institutional investors. How can funds and investors better communicate with their constituents, and with each other? Who are the market leaders of tomorrow? What strategies and markets are poised to explode?

Our investor-dominated speaker line-up includes Greg Kulka of the New Mexico State Investment Council, Donald Pierce of the San Bernardino County Employees' Retirement Association and Albert Hsu of Atlantic Philanthropies.alongside keynote speakers Barry Rosenstein of JANA Partners, John Chalsty of Muirfield Capital and Billy Beane of the Oakland Athletics.

Pension funds and non-profits attend FREE. All Opalesque clients receive 15% off the normal delegate rate. Simply register today www.marhedge.com/conferences/sanfran/sanfran_reg.htm and please use "Opalesque" for your promo code. For more information, please contact Jeannie Lee (jlee@marhedge.com) at 646 274 6213.

This event is a must-attend for fund managers looking to better attract and service institutional clients, as well as institutional investors seeking to learn more about alternatives.

Alternative Investment News: 3rd Annual Hedge Fund Industry Awards Dinner 29 June
Alternative Investment News is delighted to present The 3rd Annual Hedge Fund Industry Awards Dinner to be held at the Capitale Restaurant in New York City, on June 29th, 2005.

This gala - held in conjunction with Institutional Investor's Spring Hedge Fund Investment Roundtable, June 28-29, 2005 - 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. To secure your sponsorship or table reservation, please contact:
Kendra Bahneman, 212-224-3239, kbahneman@institutionalinvestor.com
OR Nazneen Kanga, 212-224-3005, nkanga@iiconferences.com
Click here for more information and program

2005 Blue Ribbon Hedge Fund Symposium New York 12-14 July
2005 Hedge Fund Symposium
July 12-14, 2005
Waldorf Astoria, New York, NY

Each July several hundred institutional investors, hedge fund managers, pension plan sponsors, fund of hedge fund managers, advisors and other leading decision makers convene in New York to take stock of the burgeoning hedge fund industry and discuss the opportunities and challenges that lie ahead. This year’s theme will be finding new alpha-producing niche strategies in an overcrowded landscape.

Our unmatched speaking faculty includes today’s most active investors and industry leaders, including:

Robert D. Arnott, Research Affiliates
A.R. Thane Ritchie, Ritchie Capital Management, L.C.C.
James S. Chanos, Kynikos Associates
Paul Isaac, Cadogan Management, LLC
Brian S. O’Neil, The Robert Johnson Wood Foundation
Jane Buchan, Pacific Alternative Asset Management Company
Thomas R. Hudson, Pirate Capital LLC
Jeffrey A. Geller, Russell Investment Group
Donald Lindsey, George Washington University Endowment
Gordon Yeager, Stanfield Capital Partners
Michael Lewis, Bestselling author of Liar’s Poker, Moneyball and The New New Thing

Complimentary Attendance for Plan Sponsors!

For more information, please visit www.srinstitute.com/cx545 .

Contact/Disclaimer
ISSN Number: 1450-1953
Alternative Market Briefing has been called the best news service 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 publicly available online news sources. The concept that we follow is that of a "clipping service" - the added value for you is that we screen, intelligently select and efficiently present each day the most important hedge fund news. The majority of the news sources used do not require a subscription, 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!

Opalesque Ltd.
8 Samou Street
St. Omologites
Nicosia 1640
Cyprus

+49-89-512668-68
info@opalesque.com
www.opalesque.com

This newsletter is edited by Matthias Knab (MK) for Opalesque Ltd. For more information about me and Opalesque Ltd. please use this link.

Did you know? Opalesque has a great newsletter archive - use this link.

Disclaimer: The information contained in this newsletter does not constitute an offer or solicitation to sell any security or fund to or by anyone in any jurisdictions, nor should it be regarded as a contractual document. Under no circumstances should the information provided on this newsletter be considered as investment advice, or as a sufficient basis on which to make investment decisions. The information contained herein has been gathered by Opalesque Ltd. from sources deemed reliable as of the date of publication, but no warranty of accuracy or completeness is given. Opalesque Ltd. is not responsible for and provides no guarantee with respect to any of the information provided herein or through the use of any hypertext link. Past results are no indication of future performance. All information in this newsletter is for educational and informational purposes and does not constitute investment, legal, tax or accounting advice.