Monday, August 03, 2009
By Benedicte Gravrand, Opalesque London: A roundup of last week’s hedge fund launches, closures, index performance, trends, regulatory, legal and financial events pertaining to the alternative investments world.
Last week, we heard of fund launches from Goldman Sachs (UCITS L/S US equities); Natural Capital (green); RWC Partners (US L/S funds); Bookbinder Capital (green); Magister Ludi Capital (global macro); TrueBeta (rules-driven); ADM; ACG (Japan market neutral); and probably SRM Global. Polygon closed its Global Opportunities fund and is raising money for two new hedge funds.
Amber Capital Investment Management got back its assets from Lehman Brothers’ prime-brokerage unit and plans to return about $600m, or 60% of its hedge funds’s NAV to investors; UK hedge fund Lansdowne Partners stopped accepting investments in its flagship fund; RAB Capital reported H1 loss of $4.5m with AUM down $600m and said clients are returning to some hedge funds; Martin Currie Investment attained conformity with the Hedge Fund Standards Board’s (HFSB) best practices for hedge fund managers; and Nicola Horlick is rumoured to be seeking to regain influence at Bramdean Alternatives.
The following trends were noted: Hedged mutual funds (HMFs) may be a dominant trend in the next hedge fund industry cycle; 20 out of 22 hedge fund managers interviewed by Moonraker Fund Management in the U.S. are buying gold to protect their personal wealth against excessive inflation; and “position calibration” is becoming a source of alpha.
On the M&A scene, Japanese bank Sumitomo Trust is to buy Citigroup’s 64% stake in Nikko Asset Management in October for 75.6bn yen ($795m).
In the U.S., Treasury Secretary Geithner suggested that the Obama administration would agree to revise parts of its plan to overhaul financial-market regulation; pension funds must now report with Treasury on investments in offshore hedge funds; the government is to take a 34% stake in Citigroup following Sunday’s completion of a long-awaited $58bn share offering; high-frequency trading was challenged by Senator Schumer; and sales of new homes rose a bigger than-expected 11% in June from the previous month.