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Alternative Market Briefing

Opalesque Exclusive: UCITS III, the European travelling funds - part 2 – Instruments used (except for shorting), Argos are launching another UCITS III alternative equity fund later this month, Challenges and opportunities in the European investment market, AFG `confident` UCITS will include passport

Opalesque Exclusive: Canada`s new funds part 7 – Newly launched Beechwood`s catalyst approach to value investing

Fund Launch: John Paulson plans fund to provide capital to financial firms by December

Performance: Nedgroup niche FoF outperforms peers (up 3.04% since Feb. launch), attracts investments, Castlestone`s Porcupine Global Macro Plus has strong first half (9.5%), Man AHL strategy could double in size, Wong says

Survey: Hedge fund chiefs look to global macro funds in difficult market

AbCap Update: Absolute Capital faces 500m Euros in redemptions as lock-ups removed in November, AbCap closes Mallorca office in bid to stabilise group, reports loss of Eur32.9m

BlackRock amends agreements with Merrill, now easier for Merrill to start or buy hedge funds

Threadneedle in for the long haul: Gasparro sees opportunities in Europe, pushes for hedge fund distribution in U.S.

Nat Rothschild`s Atticus one of investments in last set of RIT Capital accounts

Institutions: Two fund of hedge funds win Newsquest mandates, UK Home Shopping pension scheme makes GBP40m hedge fund order, Irish pension reserve fund makes over Eur17m by lending shares to short sellers

People: Hall Capital Partners appoints investment industry veteran Phil Oelze as Head of Investor Relations, Former Midas managers McGrath and Brann resurface at Crosby, New Star fund manager Ravi Anand to leave to do his own thing, Citi hires 3 senior prime finance roles, new heads of finance sales, product development and client technology

Opalesque Exclusive: An in depth discussion of private placement memorandums – the tax and accounting perspectives

Legal: Hedge fund sues RBS for Eur250m withdrawal, claims $35m penalty fee, Well-known lawyer Sullivan joins ex-Bear manager`s defense, MFA files response to opinion of CSX vs. TCI case with brief to US Court of Appeals for clarity on rules relating to total return swaps, Cuomo readies UBS civil suit, could file charges against other entities in coming weeks

Hank Paulson eyes sickly hedge funds for additional regulation in cases of insolvency, Anti-shorting crusaders not happy with small concession

Fannie and Freddie Update: Fannie, Freddie plan could cost government $25bln, CBO says, Regulators check Fannie, Freddie books, Shorting of Fannie Mae and Freddie Mac dropped 90%, with a 70% decline at the other firms targeted

Credit Crunch Update: Bush on Economy: `Wall Street got drunk`, Banks post losses, stocks rally, Wachovia and Washington Mutual lead with combined quarterly losses of over $11bln, HSBC Private Bank ditches broking service and clients, Swiss Banks seen dented by credit crunch, Julius Baer scraps chief executive position, reports first half results, Bond insurers face further downgrade, shares in Dexia and Assured Guaranty fall sharply

European family office market ripe for growth, collective wealth at $3.3tln – Celent report

Middle East: ING IM Dubai builds investment team

Asia: Trump Jr. plans $1bln Indian real estate fund, Tokyo bourse halts futures, options trading on technical glitch, US to back India in securing nuclear deal, US-India nuclear deal will spur hedge funds towards subcontinent, Asia-Pacific region`s economies continue to grow at around 10%, fuel SWFs` coffers, attract PE

LatAm: Latin America managers go defensive as inflation bites

SWFs: Opalesque Exclusive: State Street assesses the impact of Sovereign Wealth Funds, questions transparency requests, Attacked for political investing, could sovereign wealth funds actually be the most important future trend in Environmental/Social/Governance finance

Environmental Investing: Pickens urges Congress to replace oil with wind, Soaring gas prices drive U.S. scooter sales skyward

Commodities: Interagency Task Force on Commodity Markets releases interim report on crude oil, Oil prices fall below $131 a barrel in Asia, Highlander Fund Management: commodity bubble is not deflating, Fund managers are wrong on inflation, best commodity days behind us, says Comgest star Strauss, Troubles worsen for big energy trader SemGroup as hedge funds seize public subsidiary and Moody`s cuts debt rating

Energy Regulation: Coalition launches campaign to lobby against unnecessary regulations in commodity markets, Oil speculation bill clears U.S. Senate hurdle, Oil bill pits Wall Street vs. airlines, An energy Sarbox

Eurex Clearing plans to build European central counterparty platform for clearing services in OTC derivatives, Overseas Clearing Corporation launches new hedge fund software solution, NexorFund

Activist News: NYC HF Seneca urges TransAlta to consider options

News Briefs: Report shows Bernanke biggest Fed market mover, Northern Trust wins $1bln asset servicing mandate from Auda Hedge LLC, TPG mulls bid for UK`s Paragon, General Electric and Abu Dhabi investment company form venture, Macquarie soars on CEO reassurance, CBA eyes ABN Amro`s Australian and New Zealand unit as NAB walks

...And finally: Two Miami-Dade police officers were arrested for operating a cocaine ring in Miami's Liberty City. Also suspected of driving on sidewalks, random attacks, grand theft auto

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UCITS III, the European travelling funds - part 2 – Instruments used (except for shorting), Argos are launching another UCITS III alternative equity fund later this month, Challenges and opportunities in the European investment market, AFG `confident` UCITS will include passport

Opalesque Exclusive: UCITS III, the European travelling funds - part 2 – Instruments used (except for shorting), Argos are launching another UCITS III alternative equity funds later this month
Benedicte Gravrand, Opalesque London: Europe’s very own travelling fund structure is further explored here with Michael Hugues, head of business development and product management at Argos Investment Managers. See yesterday’s part 1 here.

Argos Investment Managers, a specialist fund management group based in Geneva, currently manages €180 million (US$ 285.6m) through five separate investment strategies.

» Full Story

Canada`s new funds part 7 – Newly launched Beechwood`s catalyst approach to value investing

Kirsten Bischoff, Opalesque New York: Opalesque reports on a small selection of the 300 hedge funds located in Canada. The hedge fund industry in this northernmost part of the Americas is young and agile and looking to use these very advantages to become a force in global asset management (see part 6 here).

Ottowa-based Beechwood Asset Management launched its Canada long/short fund on April 1, 2008.

» Full Story

An in depth discussion of private placement memorandums – the tax and accounting perspectives

Kirsten Bischoff, Opalesque New York: On Tuesday, hedge fund professionals met in New York for the first of four Opalesque Hedge Fund Workshops covering tax and legal issues. The first workshop, which focused on “Dissecting the Private Placement Memorandum” was led by panelists Jeffrey B.

» Full Story

SWFs: State Street assesses the impact of Sovereign Wealth Funds, questions transparency requests, Attacked for political investing, could sovereign wealth funds actually be the most important future trend in Environmental/Social/Governance finance

Opalesque Exclusive: State Street assesses the impact of Sovereign Wealth Funds, questions transparency requests
Benedicte Gravrand, Opalesque London: State Street gave a briefing on sovereign wealth funds (SWFs) at the London Stock Exchange last night and talked about their growing roles, their liability based approaches and their potential impact on global asset prices.

What exactly is a SWF?
The definition of a SWF is not easy as indeed it encompasses a great variety of investment styles and objectives.

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Hard Assets Update
Getting Into Coal

From HardAssetsInvestor.com: In running the numbers for Monday's energy year in review, it was hard not to get stoked about coal. As I mentioned in Monday's energy review, domestic coal prices have increased 140% this year so far,...

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Congress Blames Index Speculators

From HardAssetsInvestor.com:   It's never been easy for index investors. For one thing, there are financial advisors decrying investors' settling for "average" returns. As if it's not bad enough having money managers nattering them,...

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Following In JFK's Footsteps

From HardAssetsInvestor.com: Al Gore has thrown down the gauntlet. It's certainly not the first piece of hand wear he's tossed around, but this time he's actually invoked Kennedy. He has made his "we will go to the moon" challenge,...

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What's Up/Down With Corn?

From HardAssetsInvestor.com: September corn's in a dramatic retreat this morning, off another quarter to break below the $6-a-bushel level. That's nearly a $1 tumble from its pre-holiday peak.   CBOT Corn (September 2008)   The price...

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Energy: The Year in (P)review

From HardAssetsInvestor.com:   Editor's Note: It's the middle of 2008, and the first half of the year has been a wild ride for the commodities market. To capture where we are so far this year - and where we are going - we've asked...

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ETFs and Commodities: Why Most Are Up But Some Are Down

From HardAssetsInvestor.com:

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Gold Vs. Oil

From HardAssetsInvestor.com: However, this week's oil sell-off begs for a little attention to the gold/oil ratio. This week, the ratio rallied in gold's favor from its month-long base.   Gold/Oil Ratio On The Move     The ratio measures...

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An Interview With Malcolm Wall Morris

From HardAssetsInvestor.com:   Early in June, just after it launched its new crude oil contracts, HardAssetsInvestor.com reporter Tom Vulcan had the opportunity to talk with the CEO of the Dubai Gold & Commodities Exchange (DGCX),...

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Ashland Could Be A Play

From HardAssetsInvestor.com: You didn't think this batch of financial reports was going to contain much good news, did you? Now that the oil sector's got the jitters, attention is naturally focused on petroleum companies. We recently...

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Asset Based Investing: A pure asset based lending fund on funds

Portfolio of pure asset-based lending and insurance linked hedge funds

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Insurance: New risks being considered for securitisation & more ...

Faculty Some players in the industry are also exploring the potential securitisation of casualty risks – specific classes of liability exposure.

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Carbon Credits: A fund that deploys capital to develop portfolio environmental and renewable energy assets

One of the largest buyers of carbon compliance instruments created by projects

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Litigation Led Investing: A new paradigm for law firm capital that enables law firms to spread risk, smooth cash flows

Faculty Over the next five years, we believe investment in claims will become relatively commonplace.

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A SQUARE Faculty
Osiris Equities EMU Behavioural Value

Faculty Jan Longeval The fund is unique because it has managed to apply and convert behavioural finance concepts into behavioural investing

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The Future of Hedge Funds

Opalesque Round Table

Remember a couple of years ago various reports claimed funds of hedge funds were doomed because of the multi-strategy managers? The fund of funds didn't look to good back then. In this Opalesque UK Roundtable held June 5th 2008 in London, we are offering you some important updates on this discussion.

Also covered:

  • Which strategies work and are in demand since the credit crunch?
  • Why this is not the time to go into passive investments
  • For what strategies is the credit crunch actually a good environment, who is striving?
  • You hear a lot about that difficulty of valuing collateral - why this complaint is often without merit
  • Vital points investors often overlook in discussing fees with hedge funds
  • What UK based managers say about the FSA principles-based regulation
  • What US investors often don't understand about UK regulations

Event Calendar
The 4th Annual Investors' Summit on the Secondary Life Market, New York City » Mon, 28 Jul 2008

Are you positioned to act on the latest investment opportunities in the secondary life market? With changing regulations and policies, new players joining the market and new products and developments like insurance loans and synthetic structures, the secondary life market is truly in a state of motion...

An Exploration of Key Tax and Accounting Issues for Hedge Funds, New York City » Tue, 29 Jul 2008

This workshop will explore the intricacies of the Unrelated Business tax and when it applies, not only in straight-forward debt financings but in areas such as structured products; New York Tax developments affecting the alternative investment industry, including discussion on the State's extremely successful residency audit program and new sales and use tax developments applicable to hedge funds and their managers; Valuing Illiquid Assets--more and more managers are investing in assets other than marketable securities, and valuing these assets is more of an art than a science, listen to some of the issues and possible solutions; and Form 1065 Tricks and Traps--the IRS is demanding more transparency and disclosure from hedge funds...

Alternative Investment Summit Australia 2008, Sydney » Mon, 4 Aug 2008

The 3rd Annual Alternative Investment Summit brings together domestic superannuation funds, international pension funds, endowments, insurance companies, asset consultants and other end-investors to discuss the merits of alternative investment products and strategies...

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