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Perry Mehrling: Fischer Black and the Revolutionary Idea of Finance

ISBN: 0-471-45732-9
Hardcover
374 pages
August 2005

The story of a giant in the world of finance
Besides revolutionizing finance by providing the methodology to price a new instrument-through the Black-Scholes option pricing model-Fischer Black revolutionized Wall Street by effectively developing what is now known as quantitative finance. Black deciphered the universe of modern finance in ways that went underappreciated for many years-and would have won the Nobel Prize in Economics, if not for his untimely death in 1995.

Wiley is offering a 20% savings for Opalesque subscribers – price is only only GBP15.99/EUR20.88/USD$23.96plus P&P. Quote promotion code CWD when prompted, or contact cs-books@wiley.co.uk for further details. Access order page here: If you get this newsletter in the text version please paste the following link into your browser to access the links to Wiley: http://www.opalesque.com/main.php?act=recread. Remember to quote CWD for the reduced price.

To the Recommended Reading archive

Julius Baer to buy 3 UBS private banks, GAM unit for $4.6bln
Bloomberg writes Julius Baer Holding AG, Switzerland's largest publicly traded bank for the wealthy, agreed to buy three private banks and a fund management unit from UBS AG for 5.6 billion Swiss francs ($4.6 billion). The price includes 3.8 billion francs in cash and a 21.5 percent stake in the enlarged Julius Baer, with a value of 1.8 billion francs, the Zurich-based companies said in e-mailed statements today. Julius Baer will carry out a 2.5 billion-franc share sale to help finance the purchase. The purchase of Ehinger & Armand von Ernst, Ferrier Lullin and Banco di Lugano, as well as the GAM fund business, brings managed assets at Baer to about 270 billion francs….Full article: {literal}Source{/literal}

Bank records suggest Bayou have had only $160m, with at least $60m unaccounted
From the WSJ: Bayou told investors it was managing more than $400 million last year, but bank records suggest it may have had only $160 million, and that at least $60 million of that is unaccounted for. "All of the assets of Bayou ... constitute proceeds of criminal activity," federal prosecutors said in their suit. "Bayou perpetrated a fraud on its investors." The lawsuit demands that all Bayou's funds, including those held by Arizona, be turned over to the federal government so they can be returned to the firm's investors.

The prosecutor said that at the end of 2003 the Bayou Superfund -- one of its four hedge funds -- reported $192 million in assets, including $27 million in trading gains. In reality, the fund had less than $54 million in assets and trading losses of $35 million...Full article (WSJ subscription required): {literal}Source{/literal}

Legal battles just beginning for Bayou, overview on initiatives, Judge appoints Kroll to liquidate some Bayou funds
HedgeWorld.com writes two lawsuits related to the Bayou hedge funds have been filed in New York state, while another court motion in Arizona is asking for a court-appointed receiver to take possession of assets claimed by Bayou as lawyers swoop in on behalf of investors. Estimates of the number of investors in Bayou Management LLC's four hedge funds vary but generally range from 100 to 200 individuals and organizations. Attorneys seeking to work with bedraggled investors are keeping watch on initial lawsuits filed in New York State Supreme Court.

South Cherry Street LLC and Steven Starker have filed lawsuits against Bayou Management Co., Bayou Accredited Fund, and Bayou founder Samuel Israel...Ross Intelisano, partner with the New York law firm Rich Intelisano, said that he's been contacted by 30 investors, with a handful saying they had invested in the fund on the recommendation of the Hennessee Group...Full article (free HedgeWorld membership required): Source

Judge appoints Kroll to liquidate some Bayou funds (Reuters story): {literal}Source{/literal}

Scandal puts spotlight on Hennessee Group, Hennessee denies reports
Scandal puts spotlight on Hennessee Group
Hennessee and other consultants say their fee arrangements are free of conflicts, but there are some arrangements that critics say could skew consultants' judgment. Some consultants receive payments, fee discounts or brokerage commissions from hedge funds for steering clients their way. (WSJ subscription required): Source

Consultant Hennessee defends work with Bayou hedge funds, denies earlier press reports
Reuters writes a prominent consulting firm that sent hundreds of millions of dollars to the collapsed Bayou hedge funds denied reports on Friday that it earned millions in kickbacks by steering clients into these investment pools.

In a strongly worded letter to clients, the New York-based Hennessee Group lashed out at journalists for having distorted how the group earns money and suggesting it may be biased by selecting only funds that offer the consultants rebates.

"We do not raise money for hedge funds; do not receive compensation from hedge funds for raising money for them; do not receive secret fees; and do not believe that we have a conflict of interest when we evaluate hedge funds for you…Full article: {literal}Source{/literal}

Interview: Some early signs of trouble
Hans Hufschmid, a former Long Term Capital Management principal, started GlobeOp in 2000 to help fund managers and their investors independently verify prices for the securities in their funds and gauge the risk they are taking on with their trades. Its services help alert investors of potential problems before hedge funds become insolvent. He recently spoke with BusinessWeek Banking & Finance Editor Mara Der Hovanesian:

It seems remarkable that sophisticated institutional investors, not just average investors, get duped in this (Bayou`s) way.
Unfortunately, if someone is absolutely set on defrauding their investors, it's going to be hard to catch. Institutional investors invested in Enron, smart investors bought WorldCom. In general, thousands of hedge funds are invested in without any problems. Hedge funds all fully understand that it's important that investors maintain confidence in the industry, so most tend to have good rules in place.

What are some of the early signs of trouble?
There's no one set of rules, but there are warning signals. Most of the reputable funds have independent auditors and outside administrators that produce performance information for their investors...Full article: {literal}Source{/literal}

Bayou scandal could be great for hybrid mutual funds
InstitutionalInvestor.com writes the Bayou Management scandal may be bad for the hedge fund industry but it could be great for hybrid mutual funds, as headline-wary investors seek more regulated alternative vehicles. Demand for these funds, also called absolute return funds and hedged mutual funds, has been increasing lately among 401(k) plans that lack the resources or expertise to invest in more expensive alternative vehicles, and private pensions looking for stable returns via more tightly regulated investments. Roughly 200 funds now occupy this category, up from 120 a year ago…Full article: {literal}Source{/literal}

Andrew Lo thinks hedge fund shakeout coming soon, link to Lo`s research paper
From the NY Times: Andrew W. Lo, a finance professor at the Sloan School of Management at the Massachusetts Institute of Technology, has been studying hedge fund failures and risks, and he says that another hedge fund industry shakeout is likely in the near future. Mr. Lo runs a company, AlphaSimplex, that manages a $400 million hedge fund - so he is not looking for a reason to say hedge funds are in trouble. But that is exactly what he's saying, backing it up with powerful data and a couple of unexpected theories.

Now, in a paper to be published by the University of Chicago, Mr. Lo, working with his graduate students, has come to a disturbing conclusion: that smooth returns, far from proving that hedge funds are safe, may be a warning sign for the industry. Full article: Source

Opalesque Note: The draft called Systemic Risk and Hedge Funds was published Feb. 22nd 2005, access here: {literal}Source{/literal}

Azura Capital Partners folds after failing to grow initial $25m capital commitment
Iialternatives.com writes Azura Capital Partners, the Sagamore Hill Capital Management/EagleRock Capital Management spin-off, has folded after failing to grow its initial $25 million capital commitment. Run by Sagamore's Mark May and EagleRock's Peter Lupoff, the firm planned to launch four separate strategies with $250 million in total assets (AIN, 1/24). This launch was first delayed until Aug. 1, then called off altogether after none of the local incubators the firm was pitching were able to commit…Full article: {literal}Source{/literal}

New allegations filed against Portus co-founder, transfer of $8.6m discovered
Theglobeandmail.com writes the saga surrounding embattled hedge fund company Portus Alternative Asset Management Inc. has taken another bizarre twist with allegations company co-founder Boaz Manor used nearly $12-million (U.S.) of investor money to buy precious stones or metals. Mr. Manor also allegedly directed the transfer of $8.6-million of client money into several Hong Kong bank accounts just a few weeks ago despite court orders requiring him to return all investor money to the receiver....Full article: {literal}Source{/literal}

Sharpe says Sharpe ratio commonly `misused` by hedge funds
From the Post-gazette.com/WSJ: The ratio is commonly used -- "misused," Dr. Sharpe says -- for promotional purposes by hedge funds. Bayou Management LLC, the Connecticut hedge-fund firm under investigation for what authorities suspect may have been a massive fraud, touted its Sharpe Ratio in marketing material. Investment consultants and companies that compile hedge-fund data also use it, as does a new annual contest for the best hedge funds in Asia, by a newsletter called AsiaHedge.

"That is very disturbing," says the 71-year-old Dr. Sharpe. Hedge funds, loosely regulated private investment pools, often use complex strategies that are vulnerable to surprise events and elude any simple formula for measuring risk. "Past average experience may be a terrible predictor of future performance," Dr. Sharpe says. Full article: {literal}Source{/literal}

Global assets under management up 6%, statistics by type (pension, insurance, mutual fund) in 2004
Worldwide conventional fund management assets (pension, insurance and mutual funds), reached $45.9 trillion at the end of 2004, up 6% on the previous year and 40% on 2002. Pension assets totalled $15.3 trillion, with a further $16.2 trillion invested in mutual funds and $14.5 trillion in insurance funds (see Table below). There was also an additional $30.8 trillion in private wealth, of which around two thirds cannot be accounted for by other forms of conventional investment management. Part of the increase in global funds under management in dollar terms over the past two years is explained by a 19% fall in the value of the dollar during this period. The UK is the third largest market for fund management after the US and Japan. It is by far the biggest centre in Europe.

Sources of global assets under management by type, 2004

* these figures only show domestically sourced funds for each country without regard to where the funds are managed

** No reliable international comparions are available for total funds under management in each country

$ billion

Pensions

Insurance

Mutual funds

Total

% of total

US

7,665

4,968

8,107

20,740

45.2

Japan

3,108

2,058

400

5,566

12.1

UK

1,464

1,797

493

3,754

8.2

France

164

984

1,371

2,519

5.5

Germany

268

1055

296

1,619

3.5

Others

2,631

3,614

5,485

11,730

25.5

Total

15,300

14,476

16,152

45,928

100

Source: IFSL estimates based on Watson Wyatt, Bridgewell, Merrill Lynch, ICI, SwissRe, Hennessee Group and Hedge Fund Research data

{literal}Source{/literal}

196 hedge fund firms in the U.S. now run $1bn or more, manage $743bn
Adds details, names top 10 funds) The Absolute Return mid-year survey of the leading U.S. hedge fund firms, with over $1 billion in assets, reveals that 196 firms now qualify for this select group. Managing over $743 billion in assets, they account for almost three-quarters of the global hedge fund industry.

Bridgewater Associates has leaped into top position as the biggest hedge fund group in the world with $17.7 billion in assets, pushing Farallon Capital Management – which had topped the list in January – down into fourth place. After a year of outstanding asset growth, D.E. Shaw and Goldman Sachs Asset Management now hold the second and third slots, respectively.

Despite a tougher investment environment during the first half of 2005, overall assets expanded by 9.3% since our previous survey at the start of the year. Strong performance on the part of many firms, such as Glenview Capital Management, Cantillon Capital Management and Atticus Capital, boosted them to higher places in the rankings.

Corporate activist managers also enjoyed robust growth. Assets at Third Point Management leaped by 52% while Icahn Partners gained 31%.

Managers pursuing event-driven and technology strategies largely generated substantial increases in assets. Tremblant Partners saw its assets shoot up by 122%, making it the biggest gainer in our survey. However, some of the biggest falls in overall assets were registered by convertible arbitrage and CTA funds that experienced difficult market conditions.

Finding it hard to make headway, dozens of firms only managed to tread water – including brand names such as Amaranth, Pequot Capital Management and Fairfield Greenwich. Others suffered redemptions of investor capital and struggled to make money such as Angelo, Gordon whose assets fell by 30% to $8 billion.

Although the big firms continue to dominate the industry, a number of new firms entered the rankings due to exceptionally dramatic growth. Wexford Capital’s assets leaped by 89% while Ore Hill Partners advanced 63%. As a sign of robust health in the hedge fund industry, new entries far outweighed the small number of dropouts from the previous survey.

TOP TEN US HEDGE FUND FIRMS – JULY 2005
Bridgewater Associates $17.7 billion
D.E. Shaw $17.1 billion
Goldman Sachs Asset Management $15.3 billion
Farallon Capital Management $13.8 billion
Caxton Associates $12.3 billion
Barclays Global Investors $12.2 billion
Citadel Investment Group $12.0 billion
Och-Ziff Capital Management $12.0 billion
Maverick Capital $11.5 billion
Perry Corp $11.5 billion

Absolute Return is published by HedgeFund Intelligence, the specialist news and data provider for the global hedge fund industry. No online Source

Fall is approaching, and with the new season comes some notable hedge fund launches:
From TheStreet.com: …The highest-profile debuts continue to be in strategies that employ shareholder activism. Bob Chapman, the well-known activist who took a sabbatical last year, is readying a fund for launch in January. Another is the soon-to-be launch is RLR Partners, a new activist vehicle based in New York, headed by Robert Rosen, according to industry officials.

…Two ex-Perry Capital managers leave the firm to create their own shop. William Feil and Richard Crosby, two former equity managers at multibillion-dollar hedge fund Perry, are prepping HomeField Capital, an event-driven fund…Full article: {literal}Source{/literal}

US mutual fund body ICI in conflict of interest after changing role to represent fund business and no more fund investors
From FierceFinance/Forbes: It began with a quote to a reporter, in which an ICI executive said the lobby no longer claims to represent fund investors but only the fund business. In a subsequent letter to members, he basically confirmed the point. Forbes, among others, raises the issue of whether it is fair then for fund shareholders to pay for the lobbying expenses of the industry, which has been the long-standing practice. The SEC told Forbes that mutual fund directors should "take a hard look at whether the longtime dues-paying split is fair." {literal}Source{/literal}

United States has oil reserve at least three times that of Saudi Arabia locked in oil-shale deposits
The SeattleTimes writes the United States has an oil reserve at least three times that of Saudi Arabia locked in oil-shale deposits beneath federal land in Colorado, Utah and Wyoming, according to a study released yesterday. But the researchers at the RAND think tank caution the federal government to go carefully, balancing the environmental and economic impacts with development pressure to prevent an oil-shale bust later. "We've got more oil in this very compact area than the entire Middle East…Full article: {literal}Source{/literal}

US investors seek $208-million from Canadian fund manager
From Theglobeandmail.com: An Ontario hedge fund manager who faces fraud allegations in the United States has been sent a $208-million (U.S.) claim on behalf of a group of investors. Paul Eustace, who lives with his family in Oakville, Ont., ran Philadelphia Alternative Asset Management Co., or PAAM. The $230-million hedge fund was based in Philadelphia and specialized in complicated commodity trading. {literal}Source{/literal}

UK $450m global macro Olea Capital folds, surprised at speed of investor withdrawals
From the London Times: A global macro fund worth $450 million is being closed, the latest in a string of failures to hit the hedge fund world, The Times has learnt. Olea Capital, based in Mayfair, Central London, will shut later this month after a number of large redemptions. Tim Yetman, the fund manager running Olea, expressed surprise at the speed with which investors withdrew their money…Full article: {literal}Source{/literal}

Schroders` attempts to snatch one of the City`s best known hedge fund managers
From the FT: Schroders, the UK-based fund manager, has made an audacious attempt to poach one of the City's best-known hedge fund managers as part of a wider attempt to break into the asset class. In May, Schroders approached Roger Guy, the lead manager on Gartmore's $1.5bn AlphaGen Capella hedge fund. (Subscription required) {literal}Source{/literal}

PIPEs getting popular in the UK, hedge funds line up
From the Telegraph: Record amounts of cash that need investing are being held by private equity funds across Europe - more than GBP100bn of buying power if debt is taken into account. It is understandable why: this still represents less than 5 per cent of overall institutional assets, yet private equity returns have beaten all others. For example, over the past 10 years the annual return from UK private equity has been 14.8 per cent, as against 8.1 per cent for the FTSE All-Share index and 8.3 per cent for hedge funds. Money flows to the asset classes that perform the best.

…An interesting deal announced last month involving a sort of Pipe…In the UK this fledgling market is at a very early stage, but I suspect it will grow. I have even heard talk of specialist funds being launched. Full article: {literal}Source{/literal}

CME hosts global FX Summit Series in Paris, London and Frankfurt in October
CME will hold a series of CME Global FX Summits in Paris, London and Frankfurt, scheduled for 04 - 06 October 2005. Former president of the Deutsche Bundesbank, Dr. Hans Tietmeyer, will serve as the keynote speaker at each event. In addition, other currency experts and CME officials will share their opinions and lead discussions about current and future opportunities in the global FX market. {literal}Source{/literal}

Fortis Investment Advisors Limited changed name to Collingham Capital Management
Effective immediately, Fortis Investment Advisors Limited has changed its name to Collingham Capital Management LLP (CCM). The Fortis Investment Fund will also change its name to the Collingham Investment Fund.

Mayfair-based Collingham Capital Management was founded in January 1999 by Mo Zayan, who has over 20 years of experience as a trader and hedge fund manager. The Collingham Investment Fund is a multistrategy Fund of Hedge Funds whose objective is to achieve excellent risk-adjusted returns with low correlation to the major market indices. The Fund employs a multi-advisor approach to diversify the trading styles and markets in the portfolio and actively manages its strategy allocation to fit the managers’ views of market conditions. Since inception in January 1999, the Fund has achieved an annualized ROR of 10.06% with a standard deviation of 4.28%.

The Portfolio Management team consists of Mo Zayan, Stuart Ratcliff and Mark Walker who, between them, have over 50 years experience in International Financial Markets. {literal}Source{/literal}

UK funds under management up 9% in 2004 but still 3% lower than at peak in 1999
According to a new IFSL report, assets under management of the UK fund management industry increased for the second year running in 2004 to GBP2,966bn. This was up 9% on 2003 and 11% on 2002. Funds are, however, still 3% lower than at the peak in 1999. The recovery over the past two years was primarily due to rising equity markets and a flow of new investments. London continues to be the leading international centre for fund management.

Insurance companies managed a third of UK funds in 2004, followed by investment banks (18%), retail banks (18%), independent fund managers (17%) and pension funds (6%). Most of the remainder was managed by custodians and hedge funds. UK institutional funds (pension funds, insurance companies, unit and investment trusts) were the source of two-thirds of funds under management. Overseas clients generated a quarter of funds and UK private clients the remaining 8%.

Fund management makes a significant contribution to the UK economy, accounting for 0.5% of GDP, employing over 40,000 people and generating net exports of GDP1.42bn in 2004. Revenue of UK fund management activities totalled GBP7.7bn in 2004 as fund managers' margins increased slightly to around 26% in 2004. {literal}Source{/literal}

With hedge fund acquisition prices ballooning out of reach, BNP Paribas looks to expand from within
From the FT: Alain Papiasse is frustrated. The new head of Paris-based BNP Paribas's asset management and services wants to expand through acquisitions. But he keeps finding prices ballooning out of reach, particularly in the fast-growing area of alternative investments in hedge funds.

If anything frustrates Mr Papiasse more than sky-high acquisition prices, it is when analysts dare to question the cost of his internal investment programme, designed to expand the business through organic growth rather than costly takeovers. Full article (subscription required) {literal}Source{/literal}

China update: 14 banks approved for FOREX, NASDAQ gets most Chinese IPOs, 1697 punished for bank fraud in H1
China approves 14 banks for foreign exchange forwards
China 's foreign exchange regulator has approved five Chinese and nine foreign banks to participate in the interbank foreign-exchange forwards market. This announcement follows rules issued by the central bank earlier this month launching foreign-exchange forwards trading on the interbank market. This bodes well for investment risk in China. (RiskCenter.com)

NASDAQ outpaces major rivals in lining up Chinese IPOs
When Chinese wireless-services provider Hurray! Holding Co. (HRAY ) decided it wanted to raise $70.5 million in the equity markets earlier this year, it went right to NASDAQ. Why? Key reasons were NASDAQ's global reputation as the market for the tech world and its fondness for smaller, less-tested companies. "NASDAQ is a key exit [vehicle] for the entrepreneurs and investors that finance these companies.” (BusinessWeek.com)

China continues battle on bank fraud, punishes 1,697 in H1
China punished 1,697 employees at financial institutions for bank frauds and other crimes in the first half of the year, the China Banking Regulatory Commission said. Bloomberg writes that among them, 570 managers and heads of branches were fired or sent to prison, the regulator said Saturday in a statement on its Web site, citing a speech by Liu Mingkang, the commission's chairman, at an internal meeting. "Credit risk is still the biggest risk with financial institutions.” (IHT.com) No online Source

News Briefs: $500m Hubris Capital next hedge fund scandal?, Legg Mason to divide Citigroup Asset business, Claymore prepares fund to replicate S&P investable long/short equity index, AIG names Robert Thompson to head Alternatives, Gazprom plans $300bn NYSE listing, Eurex turnover just keeps climbing, French Caisse d`Epargne brings forward float schedule, `Cranes eat locusts`: Lufthansa ready to handle any hedge fund attack, SGX aims to be offshore investment center to attract hedge fund trades
$500m Hubris Capital next hedge fund scandal?
Another week, another hedge fund scandal. Speculation is growing that the little known Hubris Capital Management LLC, a secretive $500m fund based in Grand Cayman that launched five years ago, could be next. Subscription required: (efnmail.co.uk)

Legg Mason to divide Citigroup Asset business
An active U.S. equity investment management firm will be formed out of Citigroup Asset’s “core” New York- and San Francisco-based active equity teams, while a separate international equity affiliate will be created out of Citigroup Asset’s non-U.S. equity business. Each affiliate will have its own dedicated institutional marketing and client services operations. (PIOnline.com)

Claymore prepares fund to replicate S&P investable long/short equity index
A new fund that seeks to replicate the performance of Standard & Poor's investable long/short equity index is in the works. (HedgeWorld.com)

AIG names Robert Thompson to head Alternatives
AIG Global Investment Group hired Robert T. Thompson as senior managing director and head of its alternative investments operation. (HedgeWorld.com)

Gazprom plans $300bn NYSE listing
Gazprom plans a flotation on the New York Stock Exchange that would value the Russian gas giant at $300bn and challenge Exxon Mobil’s title as the world’s largest international oil and gas company (thebusinessonline.com)

Eurex turnover just keeps climbing
In August, Eurex, the world’s largest derivatives exchange saw turnover increase by around 19 percent to 90 million contracts against the same period last year (August 2004: 75.7 million contracts). At 821 million contracts, the turnover volume achieved in the first eight months of this year has eclipsed the same period last year by around 17 percent (January – August 2004: 704 million contracts).

French Caisse d`Epargne brings forward float schedule
Les Caisses d'Epargne, France's second-largest mutual banking group and parent of investment bank Ixis, is preparing to go public by the end of 2006. The bank is a strategic partner of Lazard and was an anchor shareholder for its flotation in May. (e-financialnews.com)

`Cranes eat locusts`: Lufthansa ready to handle any hedge fund attack
Germany's Deutsche Lufthansa is ready to avert any possible attack by hedge funds which have bought into the airline, its chief executive was quoted on Saturday as saying.

"We don't lie down on the couch and sleep. Of course, you need strategies to meet any possible attack. But I won't reveal these to the Spiegel (magazine)," Wolfgang Mayrhuber told the weekly magazine in an interview. …"Cranes eat locusts," he said, referring to Lufthansa's blue crane logo. (Reuters)

SGX aims to be offshore investment center to attract hedge fund trades
The Singapore Exchange Ltd. is targeting retail investors to combat declining trading volumes at Southeast Asia's biggest bourse, Chief Executive Hsieh Fu Hua said in a recent interview. The exchange, the region's largest by market capitalization, will also continue to seek more and bigger foreign listings and expects foreign companies to outnumber local ones in a few years.

To attract the bigger funds, including hedge funds, SGX offers itself as an offshore investment center. "We make it attractive by giving them the products they trade. We are having commodities soon and launching an Indian contract," Hsieh said. Last month, SGX signed a Memorandum of Understanding with the Chicago Board of Trade to establish an Asian commodities derivative exchange in the city state. (sg.biz.yahoo.com) No online Source

GAIM USA Fund of Funds September 19-21 New York
GAIM USA Fund of Funds
September 19-21, 2005 • Pier Sixty • New York, NY

The largest gathering of Hedge Fund of Funds & their investors in the USA in 2005

This year GAIM USA Fund of Funds builds on the tremendous success of the inaugural 2004 event which attracted over 450 institutional investors, leading Hedge Fund of Funds, hedge fund managers and other industry experts. A brand new fully re-researched program brings you a speaker faculty with more industry thought leaders, key decision makers and influential allocators than at any other event this year.

The largest, most senior gathering of hedge fund of fund leaders in the US, including:

  • 20 of the world’s largest global hedge fund of funds, representing well in excess of $100 billion of capital, discussing their allocation strategies
  • Over 25 hand picked, out-performing niche hedge fund of funds discussing how they are pushing the innovation curve to generate alpha and differentiate themselves in a crowded space
  • Well in excess of 600 senior decision making investors and leading managers expected to attend
  • International representation from over 14 different countries at the global meeting place
    for the hedge fund of funds industry in the heart of New York City
  • One GAIM USA Fund of Funds – the only “Must attend” event for the hedge fund of funds industry and its investors in 2005.

Al Samper, Chairman of the Board, VIRGINIA RETIREMENT SYSTEMS
Ron Mock, Director, Alternative Investments, ONTARIO TEACHERS' PENSION PLAN BOARD
Salim A. Shariff, President, WEYERHAEUSER COMPANY RETIREMENT PLAN
Luis Bendaña, CFA, Manager Alternative Investments, THE BOEING COMPANY PENSION PLAN
Sheila Healy Berube, CFA, Manager Benefit Funds Investment, 3M COMPANY
Kevin E. Lynch, Head of Absolute Return Strategies, VERIZON INVESTMENT MANAGEMENT CORP.
Byron R. Wien, Senior Investment Strategist for the United States, MORGAN STANLEY
Alexander M. Ineichen, Head of AIS Research, UBS
Todd E. Petzel, Chief Investment Officer, AZIMUTH TRUST

Limited Complimentary Registrations available for Institutional Investors. For more information or to register visit: www.gaimusafof.com or call +1. 888.670.8200
**Please mention discount code XUAMB

Eurex FX futures: ¥ € $! Coming September 23rd to 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

Eurex FX futures: ¥ € $! Coming September 23rd to Eurex US!
www.eurexus.com/products/fx.html

1 Day Seminars: Technical Analysis in Commodity & FX Markets: Dubai, London - 10% rebate
Dubai, United Arab Emirates - September 27th, 2005
London, United Kingdom - October 25th, 2005

A one day seminar designed to equip traders, analysts, hedge funds, and fund managers with the most effective and up-to-date charting techniques for enhancing returns in the commodity and FX markets.

Attend this event to hear leading analysts on:
Trading Base Metals
Jeremy Goldwyn, Global Head of Industrial Commodities, Sucden
Using Fibonacci
David Sneddon, Technical Strategist, CSFB
Applying Behavioural Finance Techniques to the Oil Market
Thomas Anthonj, Head of Technical Analysis & Behavioural Finance, ABN Amro
Maximising the value of technical indicators in the commodity markets
Shaun Downey, Head of Technical Analysis, CQG
Commodity Currencies
John Noyce, FX Technical Analyst, Citigroup
Mapping the Market: Gaining an edge in the currency markets with intermarket analysis
Robin Griffiths, Head of Asset Allocation, Rathbones Investment Management

Opalesque members can get 10% discount, please type "OPAL" in the field "Your Ref". Early booking discounts available. For more information or to register visit: The Technical Analyst: www.ta-conferences.com or call +44 (0)20 7833 1441

London Hedge Fund Capital Introduction and Reception at Royal Automobile Club, 12. Sept.
Global Capital Acquisition is hosting a Hedge Fund Capital Introduction and Reception at the exclusive Royal Automobile Club in London on September 12th. The distinguished member’s only club will serve as the backdrop for both an afternoon of round table discussions with prominent hedge funds and investors, and an evening of topical speakers. A cocktail party with hors d’oeurves will follow the presentations.

Please contact Lisa Harvey on +1-646 270 7819 or lisa.harvey@globalcapitalacquisition for more information regarding the event.

Currencies & Commodities Conference 15-16, Sept, Chicago
Inflation Hedging For Real Returns – Currencies, Commodities, Hard Assets, Energies, & TIPS: Investing in Alternatives to Alternatives

September 15 – 16, 2005
University of Chicago Gleacher Center
Chicago, Illinois

Areas of Focus Include:

  • Currencies: Profiting in the Foreign Exchange (FX) Market
  • Tapping into the Energy Pipeline: Oil, Gas, and other Natural Resources
  • Gold: Is it the Ultimate Inflationary Hedge?
  • TIPS: Enhance Returns While Managing Risk
  • Choosing between Long-Only Commodity Indexes vs. Active Management
  • Global Opportunities: China, India and Beyond…
  • Institutional Investing in the Timber Market

COMPLIMENTARY REGISTRATION IS AVAILABLE FOR QUALIFIED PLAN SPONSORS

For more information, please visit www.srinstitute.com/cf538

MARHedge World Wealth Summit Bermuda 18.-20. September
MARHedge World Wealth Summit
Southampton Princess, Bermuda, September 18-20, 2005

The world’s best-known annual hedge fund conference this year focuses on a critical global issue: wealth. Specifically, what role should alternative investments play in increasing and extending wealth throughout the world?

For many, a trip to Bermuda represents the pinnacle of wealth. For MARHedge and its World Wealth Summit attendees, Bermuda is the starting point for a new discussion of wealth management. Please contact Rich Robinson at 646 274 6234 or rrobinson@marhedge.com

Premiere European Distressed Debt Sep 21-22 Frankfurt
Le Meridien Parkhotel
Frankfurt, Germany

Distressed Debt Investors from around the world have been targeting the European high-yield market in a frenzy reminiscent of the US Junk Bond Explosion of the 1980’s. Both supply and demand side dynamics have converged to create a booming market in Europe for high yield, NPL, and distressed debt instruments. For more information, please visit www.srinstitute.com/cx572

Hedge Funds Programme at London Business School 30-31 March
This intensive two-day programme provides you with the knowledge and frameworks needed to understand the key issues concerning hedge funds. It offers:
  • Compelling, thought-provoking and indispensable analysis
  • An enhanced understanding of hedge funds through analysis of real-life cases.
  • A thorough investigation of the economic intuition underlying various market practices.
  • Practical tools and insights needed to avoid common pitfalls
  • > transformation in the way you deal with or manage hedge funds
The programme draws on the research work carried out by Professors Narayan Naik and William Fung at the School’s Centre for Hedge Fund Research and Education.

To learn more, visit www.london.edu/finance/hf/

10% Rebate: 8th Hedge Funds World Asia 26-29 Sept. Hong Kong
26 - 29 September 2005
Hong Kong Convention and Exhibition Centre

Not only is the event Asia's premier and most comprehensive global alternative investment event, with over 600 delegates in 2004 (over 700 expected for this year) it is simply the largest annual meeting place in Asia for the most influential and successful industry players across the most cutting-edge alpha strategies hedge funds.

A stellar line up of over 80 speakers:

  • Donald Sussman, Chairman and CEO, Paloma Partners Management Co., USA
  • Mark W. Yusko, President & Chief Investment Officer, Morgan Creek Capital Management
  • Noboru Terada, Executive Investment Officer, Government Pension Investment Fund, Japan
  • Yvonne Chan, Assistant Director, Investments, Hospital Authority Provident Fund, HK
  • Bob Boldt, CEO, University of Texas Investment Management and Endowment
  • Francis Tjia, Managing Director, Income Partners Asset Management, Hong Kong
Click here www.hedgefundsworld.com/2005/hfw%5Fhk/confprog.stm to view full programme details and speakers. For more information and to claim your reduces price please contact Rani Kuppusamy at Tel: +65 63222 721 or rani.kuppusamy@terrapinn.com

10% rebate: 10th anniversary Symposium on High Performance Investing, 26-28 Sept Monte-Carlo
Special Commemorative Programming Featuring A “Ten Years Back, Ten Years Forward” Perspective On High-Performance Investing. Keynote Speakers include James H. Simons, Ph.D., President RENAISSANCE TECHNOLOGIES CORP. and Tanya Styblo Beder, CEO TRIBECA GLOBAL MANAGEMENT LLC CITIGROUP ALTERNATIVE INVESTMENTS.

  • Exclusive Workshops For High-Net-Worth And Institutional Investors As Well As Hedge Fund Managers
  • The “Investor Master Class” Provides An Exciting And Interactive Forum For Planning And Evaluating Your Alternative Investment Programme.
  • New this year is a Manager’s Workshop. Symposium Chairpersons are Jean Karoubi, The LongChamp Group and Joel Press, Ernst & Young.

FOR MORE INFORMATION PLEASE CONTACT: Lori Jacobs, Program Director, Information Management Network (IMN), 25 West 45th Street (6th Floor), New York, NY 10036 USA
Phone: +1-212-901-0503, Fax: +1-212-764-2149
Email: LJacobs@imn.org Website: www.imn.org

4th Forum Alternative Investments, 27-28 Sept Frankfurt
The 4th Forum Alternative Investments is a must-attend-event for everybody who is active in the Alternative Investment industry in Germany. This annual event which drew more than 250 attendees to Frankfurt last year will tackle the most pertinent challenges which have arisen over the past 12 months. This two-day conference, which is organised by the German Federal Association for Alternative Investments e.V. (BAI) in co-operation with Deutsche Börse AG and Eurex, brings together leading German and European investors, managers, and intermediaries who will meet, network, and gain valuable investment insights.

For further information and registration, please visit the event website: www.forum-ai.com or contact Peter Alex (email: alex@bvai.de) on +49-(0)228-969870

10% rebate: 3rd Annual Italian Hedge Fund Investor`s Summit, 29-30 Sept, Milan
This Exceptional Event Will Be Held During "Milan Fashion Week" Immediately Following The Monaco Symposium.

  • Discussions Will Focus On The Nuances Of Italian Hedge Fund Investing.
  • Additional Sessions Designed To Educate New Entrants To The Italian Market.
  • Summit Chairpersons are Stefan Meloni, HedgeInvest and Sandra Manzke, Maxam Capital.

Closed-door invitation-only hedge fund capital introduction roundtables will immediately follow the conclusion of each of these two events.

FOR MORE INFORMATION PLEASE CONTACT: Lori Jacobs, Program Director, Information Management Network (IMN), 25 West 45th Street (6th Floor), New York, NY 10036 USA
Phone: +1-212-901-0503, Fax: +1-212-764-2149
Email: LJacobs@imn.org Website: www.imn.org

3rd Annual Global Absolute Return Congress, 24-26 Oct Boston
Now in its third year, Global ARC is the only hedge fund congress where over half the speakers are pension funds or endowments. New speakers for 2005 include:
  • Mark Anson, CIO of CalPERS, the United States largest pension fund
  • Noboru Terada, Executive Investment Officer of Government Pension Investment Fund, Japan's largest pension fund
  • Arthur Levitt, longest serving Chairman in the SEC's history
Plus: AP7 Pension Fund (Sweden), CDP (Canada), City of Philadelphia PERS, Cornell University Endowment, CSS/PSS (Australia), Danish Lawyers & Economist Pension Plan, Illmarinen Mutual (Finland), General Electric Asset Management, Georgetown University Endowment, MIT Endowment, Pfizer Pension Plan, QIC (Australia), Sumitomo Life, Insurance (Japan), Telstra Superannuation Scheme (Australia), Texas Treasury, University of Toronto Asset Management, UTIMCO, VFMC (Australia), Virginia Retirement System, Wellesley College Endowment, World Bank Pension Plan

For more information please go to www.global-arc.net or contact David Stewart at david@global-arc.net +61 412 290 023 (Sydney Australia)

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!

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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.