Fitch Gives Olympia Capital A 'B'

April 4, 2006

From FINalternatives:
Fitch Ratings, the agency that is beginning to grade funds of hedge funds, has given its first rating to Olympia Capital Management. And Mr. and Mrs. Olympia Capital can be pretty proud of their child.

Olympia received the second highest rating possible: FoHF M2 (Strong), based on “considerable experience the firm has acquired in FoHF management since its debut in 1989, the high profile of its senior management and the strong processes in place for hedge fund selection, portfolio construction and risk management.” Fitch will continue to monitor Olympia Capital Management on an on-going basis.

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Russell To Close Two Funds Of Hedge Funds

April 3, 2006

From FINalternatives:
Russell Investments is shuttering a pair of funds of hedge funds battered by poor returns and an avalanche of investor redemptions.

Russell, which also runs its famed eponymous indices, had already restricted investor withdrawals in its Alternative Strategies Fund and Alternatives Strategies Fund 2.

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GAM Beefs Up Multi-Manager Team

March 19, 2006

From FINalternatives:
Asset management firm GAM has tapped Richard Silver to serve as head of GAM Multi-Manager (New York) and Jeffrey Rose as investment manager.

The pair will be based in New York and will join GAM from US-based fund of hedge funds boutique Condor Capital.

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Hedge fund 4Q launches up, liquidations down

March 19, 2006

From InvestmentNews:
The pace of hedge fund launches and liquidations slowed during the fourth quarter of 2007, with 288 new funds launched and 154 funds liquidated, according Hedge Fund Research Inc. of Chicago.

For all of 2007, 1,152 new funds were started, while 563 fund were liquidated and returned the remaining capital to investors.

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S&P: Funds-of-hedge-funds sift the market for opportunities

March 5, 2006

From MENAFN.com:
Last year's upheaval in the financial markets has created some significant opportunities in relative value strategies - perhaps the best for over three years, according to fund-of-hedge fund managers interviewed for a sector update by Standard & Poor's Fund Services.

"The S&P rated fund-of-hedge-fund managers are selectively optimistic on the outlook for 2008," said S&P Fund Services lead analyst Randal Goldsmith. He explained that the volatility in financial markets, increased credit spreads and the prospect of rising default rates had led fund managers such as RMF, Deka and Sail to increase allocations to convertible and volatility arbitrage funds. These give a long volatility bias, providing useful portfolio protection in difficult market conditions.

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Triple A Seeds Japan Long/Short Hedge Fund

March 4, 2006

From FINalternatives:
Hong Kong-based hedge fund seeder Asia Alternative Asset Partners has made its first investment, seeding the 360 Japan Long Short Fund with an initial US$10 million.

360 is a Japanese equity hedge fund run by John Aylott of 360 Asset Management. The fund, which Aylott will manage from London, launched today.

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La Fayette launches fund to back activists

January 9, 2006

From eFinancialNews.com:
UK fund of hedge funds manager La Fayette Investment Management has launched a fund to invest exclusively in activist managers, whose fortunes it expects to rise as the credit squeeze dampens private equity activity.

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Singapore Firm Launches Korea-Focused Fund of Hedge Funds

January 9, 2006

From FINalternatives:
HFG Investments, a Singapore-based joint venture established last year by Hana Daetoo Securities and Opvs Investment Holdings, launched its inaugural fund of hedge funds last month.

The HFG Korea Fund will invest in a range of actively managed Korea-focused hedge funds, targeting a 12% annual return. 3A Asia, the Hong Kong-based arm of alternative asset management firm 3A SA, has been appointed as the fund’s investment advisor.

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Man capitalizes on climate change with carbon trading

November 29, 2006

From FinancialNews-US.com:
Hedge fund specialist Man Group, one of the first FTSE 100-listed companies to claim carbon-neutral status, wants to launch a series of products that deal with the climate change threat.

Chief executive Peter Clarke also believes that carbon trading will be a big opportunity for managed futures funds, such as Man’s AHL. He reckons the price of carbon futures could quintuple to €100 ($143), assuming a second-round European emissions trading initiative starts to bite and the US follows suit. Voluntary trading schemes under the Kyoto agreement have gained acceptance.

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New Mexico Ramps Up Fund of Hedge Funds Allocation

November 29, 2006

From FINalternatives:
The New Mexico State Investment Council has increased its allocation to funds of hedge funds in two funds it manages to 15% of assets from 10%.

To accommodate the bump up, the $10.85 billion Land Grant Permanent Fund will decrease its allocation to domestic equities from 53% to 51% and domestic fixed income from 18% to 15%, according to a spokesman. The $4.73 billion Severance Tax Fund will also decrease its domestic equities allocation, from 53% to 48%.

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South Carolina Invests $750 Million With GAM

November 15, 2006

From FINalternatives:
GAM, the $26.8 billion fund of hedge fund manager, has been hired by South Carolina Retirement System to manage a $750 million allocation in its GAM Diversity strategy.

Diversity is a $10 billion globally diversified, multi-strategy fund of hedge funds that includes between 60 to 80 underlying managers. The portfolio is split between equity and arbitrage strategies.a

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Stillwater, Matrix Debuts Domestic ABL Fund Of Hedge Funds

November 15, 2006

From FINalternatives:
U.K.-based Matrix Group and Stillwater Capital in New York recently launched an onshore version of their new Stillwater Matrix Fund, a fund of hedge funds that will invest in about 50 underlying asset-backed lending strategies.

The offshore fund launched in August and has already raised $60 million in partner capital. The domestic fund debuted Nov. 1 and the firms aim to raise a total of $300 million between both funds by early 2008.

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Fund of funds manager expands in Japan and Brazil

November 5, 2006

From FinancialNews-US.com:
Fund of hedge funds manager Parker Global Strategies has opened offices in Brazil and Japan to establish a footprint in countries where hedge fund performance has been robust.

Akira Adachi will be the fund’s chief representative in the new Tokyo office. He will report to Michael Parker, who became president of Parker Global in September. Adachi previously worked as a representative director at Belgian-Dutch bank Fortis’ prime brokerage division, Fortis Prime Fund Solutions.

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IAM Hires New Client Relations Head

November 5, 2006

From FINalternatives:
Fund of hedge funds shop International Asset Management Limited has appointed Alexander von Mühlen as head of client relations and products. Mühlen joins IAM from ABN AMRO Asset Management, where he has been responsible for structuring and introducing alternative products.

“We are all very pleased that Alexander has chosen to join IAM in this new senior position,” said Morten Spenner, IAM’s chief executive. “Alexander’s experience will be valuable as IAM responds to a growing, international demand in new markets for our expertise.”

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Permal Thinks Ancient For Newest Fund Of Funds

October 30, 2006

From FINalternatives:
For its newest fund of hedge funds, Permal Group is looking at one of the oldest trade routes in the world. The New York-based firm is gearing up to launch the Permal Silk Road Fund at the end of November.

As its name suggests, the fund will concentrate on managers focused all along the ancient commercial highway, including the Middle East and North Africa, Asia ex-Japan, the former Soviet Union and Turkey.

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Investors ready to pay more for safer hedge funds

October 29, 2006

From Reuters:
Funds of hedge funds, which promise to spread the risk of investing in these loosely regulated portfolios, may soon find new customers as investors are again ready to pay more for peace of mind.

"Blow-up risks are the biggest worries for investors and you need people on the ground to do the research," said Bryan Schneider, who helps select hedge funds at New England Pension Consultants.

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Matrix Launches Asset-Backed Hedge Fund, Adds To Team

October 10, 2006

From FINalternatives:
The U.K.-based Matrix Group has launched a closed-ended version of its open-ended Asset Based 2 Fund, a fund of hedge funds that invests in 28 underlying managers.

The new closed end fund will invest all of its assets in the retail sterling shares of the Matrix Open Ended Asset Based 2 Fund.

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EIM, Daiwa To Create Hedge Funds For Japanese Market

October 9, 2006

From FINalternatives:
Hedge fund shop EIM Management USA has formed a strategic partnership with fund research group Daiwa Fund Consulting.

Under the partnership agreement, EIM USA and Daiwa will develop a series of diversified fund of hedge funds products to be introduced later this year to the Japanese marketplace. Terms of the partnership agreement were not disclosed.

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Our survey says: Don't bother following fund of funds managers

August 8, 2006

From Citywire:
Citywire Funds Insider has been out and about surveying advisers on their views on fund of funds managers.

In the coming months two fund of funds teams will try to establish themselves at new bases. Fidelity's multimanager team, led by Chris Ralph, has jumped ship to start a new boutique with Resolution Asset Management, while Credit Suisse's former team of Gary Potter and Robert Burdett are setting up shop at Thames River.

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Texas Issues $2.6B Multi-Strat Fund Of Funds RFP

August 8, 2006

From FINalternatives:
The $25.9 billion Texas Permanent School Fund is looking for a few good multi-strategy fund of funds managers to create and manage an absolute return FoF portfolio in a separate account vehicle.

The system’s two-year, $2.6 billion mandate will start on Jan. 1 and run through Aug. 31, 2010, with renewal options through August 2012. Firms interested should be registered with the Securities & Exchange Commission, as well as have at least $5 billion of assets under management and a five-year track record.

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Lehman Brothers raises $500m in fund of funds IPO

July 18, 2006

From AltAssets:
Lehman Brothers Private Equity Partners has announced the successful IPO of its shares on Euronext Amsterdam. The company has achieved its target of raising $500m through a placing of 50 million shares at $10 per share.

In addition, LBPE has granted the Sole Global Coordinator an over-allotment option of up to $50 million, or 5 million shares.

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Fund of funds managers turn against UK All Companies

July 17, 2006

From Reuters UK:
The industry's top fund of funds managers went on the defensive in June, increasing their cash weightings and pulling out of the UK equities sector. The threat of further interest rate rises was their main concern.

UK blue-chips were on the decline, with 60 percent of managers surveyed believing this trend will continue as the summer presses on.

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SEC eyes VA fund of funds

June 25, 2006

From InvestmentNews:
The Securities and Exchange Commission is looking at possible problems involving revenue sharing payments made by funds of funds.

“Recently the commission has received inquiries about some arrangements that raise questions about the nature of the services being provided in return for revenue sharing payments,” said Andrew J. "Buddy" Donohue, director of the Division of Investment Management at the SEC.

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It’s full steam ahead for funds of hedge funds

June 23, 2006

From Times Online:
The Financial Services Authority (FSA) is toying with the idea of authorising funds of hedge funds. This would effectively give the watchdog’s seal of approval for hedge funds to be sold to UK retail investors for the first time. But the fee-hungry City is beating the FSA to the punch.

A total of 21 funds of hedge funds have already raised £1.8 billion on the London Stock Exchange over the past 18 months, according to ABN AMRO, the Dutch investment bank. Though often registered in Guernsey, these funds, akin to investment trusts, are freely available to retail buyers, allowing them to gain access to a portfolio of hedge funds.

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Fund of Funds survey: Risk aversion is the name of the game

June 11, 2006

From Citywire:
Tensions in the market have caused leading fund of funds managers to sell out of riskier sectors

Citywire’s latest fund of funds survey reveals a marked increase in risk aversion occurred in April.

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'Excellent first quarter' for funds of hedge funds

June 8, 2006

From MyFinances.co.uk:
It was an excellent first three months of the year for investors in fund-of-hedge-fund products.

That is according to ratings agency Standard & Poor's (S&P), which adds that the best performing funds in the last quarter strongly featured equity-related strategies including special situations funds, merger arbitrage and long/short equity hedge.

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HSBC adds third fund of funds to OpenFunds range

June 1, 2006

From Investment Week:
HSBC Investments has lined up a third fund of funds to launch in its OpenFunds range on 30 November.

The vehicle will be the first single-asset fund in the range, with a global focus on a single asset class, according to the firm’s director of wholesale Andy Clark.

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Lehman fund-of-funds IPO around $500 mln - source

June 1, 2006

From Reuters:
The planned listing of Lehman Brothers Holdings Inc's (LEH.N: Quote, Profile, Research) private equity fund-of-funds will be around $500 million, a source close the matter said on Friday.

Lehman Brothers considers an initial public offering of its private equity fund-of-funds during 2007 on the Euronext Amsterdam exchange, Lehman said on Thursday, without disclosing the size of the IPO.

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Too Many Fofs at the Trough

May 24, 2006

From Investment Week:
Investors who want decent returns for their cash have been increasingly turning to the slew of fund of funds offerings on the market.

But speaking to fund of funds managers, I’m left wondering just how different most of the vehicles are.

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Thames River Launches Currency FoF

May 24, 2006

From FINalternatives:
Thames River Capital last month launched the Thames River 2X Currency Alpha, a Cayman Islands-based currency fund of funds, with US$15.2 million. The firm said it will follow up this latest offering with another launch, that of the Thames River 1x Currency Alpha Fund, on June 29.

Thames River’s new vehicle will invest in 10 to 20 managers employing a broad array of styles, including fundamental and technical analysis, quantitative and discretionary trading, short-term and long-term, with a focus on both developed and emerging markets, according to fund documents.

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Record Hedge Fund Growth Continues, FoFs Decline

May 17, 2006

From FINalternatives:
Hedge fund assets, by most measures, shattered record growth numbers last year, and the pace continued in the first quarter of 2007, according to HedgeFund.net.

Hedge funds manage more than $2.4 trillion, adding an estimated $250 billion—11.5%—in the first three months of the year, the largest quarterly increase on record. Most of the inflow, $168.6 billion, is new money, with the remaining $78.9 billion coming from fund performance.

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Global Investment House launches 'global Islamic fund of funds'

May 16, 2006

From AME Info:
Mr. Sameer Al-Gharaballi - Executive Vice President at Global said, 'The fund's objective is to provide long term capital appreciation with reduced risk by investing in a diverse basket of Shari'a compliant funds and instruments.'

He added that the fund's strategy is to invest the majority of its assets in a core of 'carefully selected Islamic funds that complement each other in risk and return.'

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Aviva property arm eyes fund for $2bn Japan venture

May 10, 2006

From The Wall Street Journal:
The property investment arm of British insurer, Aviva Plc plans to ask investors to join a venture in Japan to buy $2 billion (Rs8211 crore) worth of buildings, an executive said today.

Morley Fund Management Ltd., one of Europe’s biggest property fund managers, has invested $500 million into a joint venture with Japan’s Mitsubishi UFJ Trust and Banking Corp.

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Ivy Funds unveils two international funds of funds

May 7, 2006

From InvestmentNews:
The battle to help investors globalize their portfolios has received two more weapons.

Ivy Funds of Overland Park, Kan., created two international funds of funds last month that give investors a piece of many overseas plays in one stop.

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GSAM announces fund-of-funds

May 1, 2006

From InvestmentNews:
Goldman Sachs Asset Management has announced the introduction of two new fund-of-funds, the Goldman Sachs Income Strategies Portfolio (GXIAX) and the Goldman Sachs Satellite Strategies Portfolio (GXSAX), both of which will be managed by its by GSAM's Quantitative Strategies Group.

The Goldman Sachs Income Strategies Portfolio seeks current income and capital appreciation, seeking incom -producing potential by investing in a combination of 10 income-oriented Goldman Sachs funds.

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Tremont Snags Ivy Capital Exec.

April 30, 2006

From FINalternatives:
Tremont Capital Management has named Mark Santero as senior vice president and chief operating officer of the firm’s investment management group.

Santero joins from Ivy Capital Management, where other recent departures from the Bank of New York-owned hedge fund include Adam Geiger, who served as CIO, and Francis Chu, the head of relative value strategies

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Former ABN Vets Launching Fund Of Hedge Funds

April 24, 2006

From FINalternatives:
Newly-formed fund of funds shop SilverStreet Capital is kicking off its fund management business in style. The London-based firm, which received FSA approval this month, has already been awarded a mandate of over $500 million from a European institution. It is also looking to launch its own fund of funds sometime this summer.

ABN AMRO’s Asset Management alumni Gary Vaughan-Smith and Alex Da Costa founded SilverStreet to manage institutional hedge fund assets. The pair played a key role in developing ABN AMRO’s alternatives business—Vaughan-Smith headed the team and grew the group’s assets under management from under $50 million when he joined in 2001 to a multi-billion business when the duo left in the summer of 2006, while Da Costa served as the group’s head of portfolio construction.

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VanthedgePoint, G Squared Launch Emerging Hedge Fund Manager FoFs

April 24, 2006

From FINalternatives:
Financial services firm VanthedgePoint Group has teamed up with money management boutique G Squared Group Asset Management to launch a fund of hedge funds that will invest solely in emerging managers.

The new vehicle, White Hill Fund, will invest exclusively in early-stage emerging hedge fund clients of VanthedgePoint Securities, the broker/dealer arm of VanthedgePoint Group. The fund will commence operations on May 1.

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Aussie funds eye new strategies

April 20, 2006

From MSN:
Cash-rich Australian mutual funds are exploring a broader range of strategies, and hedge funds are eyeing overseas markets, driving growth in the country's increasingly competitive prime brokerage market.

Australia's mandatory superannuation pension scheme now holds roughly $600 billion and a good chunk of new inflows before a tax exemption cut off date on June 30 is expected to trickle into more aggressive investment vehicles.

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Fortune To List Managed Account Fund Of Funds

April 19, 2006

From FINalternatives:
London-based Fortune Asset Management hopes to almost triple the size of its Market Wizards Fund with a London listing that could raise as much as £200 million (US$401 million).

The fund of funds—run by high-profile manager Jack Schwager—gives itself and its investors a greater measure of flexibility by opening managed accounts with hedge funds, rather than investing in hedge funds themselves. The scheme is designed to allow for daily performance tracking, and offers investors weekly net asset values and 15-day notice for withdrawals.

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Mithras Capital Fund holds first closing on £120m

April 16, 2006

From AltAssets:
Newly formed private equity fund of funds management company Mithras Capital has held a first closing of the Mithras Capital Fund having secured £120m of commitments from Mithras Investment Trust and Legal & General Assurance Society.

Mithras Capital expects to raise up to £250m for the Mithras Capital Fund by the end of this year. The firm plans to invest in no more than ten underlying funds with a focus on Europe and the US. These are likely to encompass both funds run by established managers and funds run by second-generation managers. 

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Multistrategy hedge funds dazzle investors

April 16, 2006

From InvestmentNews:
Despite being associated with one of the largest hedge fund implosions in recent memory, the multistrategy hedge fund model continues to represent the gold standard for much of the $1.2 trillion industry.

It was just six months ago that Greenwich, Conn.-based multistrategy fund Amaranth Advisors LLC, worth $9.2 billion at its peak, lost $6.6 billion due to a lopsided weighting in natural-gas investments.

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Joining the Star funds

April 11, 2006

From ThisIsMoney.co.uk:
A sunny afternoon in west London's affluent Knightsbridge area and most people are heading for Harrods or for a bit of window shopping along Sloane Street.

But one smartly dressed man is on an altogether different mission. He wants to convince a rival that the investment fund he runs is worth putting money into.

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FIM Launches Event-Driven Fund

April 10, 2006

From FINalternatives:
U.K.-based fund of hedge funds adviser FIM Advisers is adding to its family of funds with the launch of the FIM Event Driven Fund. The new Cayman Islands-domiciled offering, which brings FIM’s total lineup to nine, will launch on May 1 with assets of around US$50 million provided by the firm’s existing long-term clients.

The new vehicle will invest in 15 to18 underlying managers and seeks to outperform the HFR Event Driven Index on a gross basis, which has historically generated annualized returns almost 12% over the last five years, according to the firm.

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Calpers to mull new fund-of-funds manager program

February 14, 2006

From Reuters:
Investment staff at Calpers next week will urge the $230 billion pension fund's board to approve a program to identify emerging managers of fund-of-funds, according to a memorandum posted on the pension fund's Web site on Wednesday.

The biggest U.S. pension fund's program would target emerging investment firms with a primary focus on long-only public equity investments and with assets under management of less than $2 billion at the time of selection.

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New Star’s funds of funds reach £1bn of assets under management

February 14, 2006

From Easier.com:
New Star’s fund of funds portfolios have accumulated more than £1 billion of assets under management.

Assets under management have grown from £408 million when the New Star fund of funds range was acquired from Edinburgh Fund Managers on 31 October 2003.

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AFM launches UK fund-of-funds product

January 31, 2006

From MoneyManagement.com.au:
Australian Funds Marketing is to launch UK hedge fund manager Fortune Group’s fund-of-funds product in Australia.

The Fortune Market Wizard Fund invests in a portfolio of between 35 and 40 funds from around the globe, which are offered through a managed account structure.

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SciVest Launches Cayman-Based Offshore Hedge Fund

January 30, 2006

From InvestorsOffshore.com:
The SciVest Group of Companies has announced the launch of the Cayman Islands based SciVest Global Net Short Equity Fund.

SciVest, a leading quantitative global investment manager that specializes in developing unique and innovative hedge fund portfolios, has created an offshore version of its top performing Canadian-based SciVest Net Short Equity Fund. This Offshore Fund is the sister fund to the Onshore Fund, which was launched in July 2004 and has consistently been ranked as one of the top performing equity short biased funds in the world.

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Arlington Securities launches UK fund of funds

January 23, 2006

From InvestmentWeek:
Arlington Securities has launched a UK fund of funds to be followed later in the year by a more aggressive portfolio.

The Arlington UK Fund of Funds allows investors to access a portfolio of UK balanced and specialist funds. The product will invest in funds with a low to medium risk profile. The aim of the product is to outperform the HSBC/AREF All Balanced Fund Index by 50 basis points a year on a three-year rolling basis.

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Fidelity 'all terrain' multi-asset fund of funds launches with bonds bias

January 22, 2006

From Citywire:
Fidelity International has launched an 'all terrain' multi-asset fund of funds today that invests in equities, bonds, property, commodities and cash, but will initially be tilted towards bonds.

This is due to the fact that the manager of the Fidelity Multi-Asset Strategic fund, Trevor Greetham, the company’s director of asset allocation, believes that the global market will slow in 2007 to the benefit of global bonds.

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Dighton Launches ‘Dynamite’ Fund

January 8, 2006

From FINalternatives:
Zug, Switzerland-based Dighton World Wide Investments is readying its DynamiteF3, a Cayman Islands-domiciled fund of fund of funds, for launch in February, according to HedgeWorld. The new fund is a joint venture of Dighton and Steve Butlin, founder of Hope Analytics, a London-based consultancy.

DynamiteF3 will invest in both diversified funds of funds and single-manager hedge funds. The new vehicle will allocate a maximum of 40% of assets to individual hedge funds, with a maximum investment of 5% of assets to any multi-strategy fund and 3% to any single-strategy fund. There will be a minimum allocation of 60% to funds of funds, a maximum of 20% to any one hedge fund firm or fund of funds manager, and the maximum investment in any one fund of funds is limited to 15% of assets.

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Polar Capital applies to list on AIM

January 8, 2006

From Reuters Italia:
Polar Capital Holdings, which runs hedge funds and other funds, said on Monday it was applying to float its shares in London, adding to a recent trend of investment company listings.

Polar, which was founded in 2000 and runs 15 funds with combined assets of more than $3 billion (1.5 billion pounds) as at December 31 last year, expects to be admitted to the Alternative Investment Market in February, Polar said in a statement to the London Stock Exchange.

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New fees rule may jolt owners of `funds of funds'

December 28, 2006

From Citywire:
Mutual funds that invest in other funds can bring diversity to a portfolio, but they can also add layers of expenses. A new rule requiring "funds of funds" to tabulate costs from underlying funds could result in surprises for some investors.

Previously, funds were required to list only the expenses added at the top--the funds of funds level. Under the new rule, which takes effect with the new year, investors could see expense ratios of their funds of funds jump.

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M&G to broaden remit on three fettered funds of funds

December 13, 2006

From Citywire:
M&G is planning to alter the objectives of three of its leading fettered fund of funds to allow investment in a broader range of assets.

Under the plans the three funds – the M&G Managed Fund, M&G Managed Growth Fund and M&G Global Managed Bond Fund – will be able to invest in other financial instruments, including derivatives. There will also be an option for the latter two funds to invest in property.

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Investing in Funds of Funds

December 1, 2006

From SmartMoney.com:
FUNDS OF FUNDS HAVE given investors an accessible way to move into investments that promise returns that aren't pegged to the performance of traditional equity and bond investments, such as hedge funds, private equity and venture capital.

But while getting in is easier, there is a trick to getting the most out of your investments.

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Nomura launches global property fund of funds

November 30, 2006

From Reuters UK:
Nomura International on Thursday said it hoped to raise more than $100 million (51 million pounds) for a new open-ended global fund of funds invested in property securities which offered investors considerable downside protection.

Nomura said its Global Property 80 percent Protected Fund would initially be spread across six funds run by Morgan Stanley, Henderson, and Credit Suisse, with each focusing on European, U.S. or Asian securities such as property company shares and real estate investment trusts (REITs).

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Gottex test markets fund of hedge funds

November 24, 2006

From Citywire:
US hedge fund giant Gottex Fund Management is test marketing its flagship fund of hedge funds (FoHF) in the UK.

Citywire understands that Gottex hopes to launch its Market Neutral (MN) FoHF in the UK during the first quarter of 2007. The fund is expected to consist of at least 50 hedge fund positions and have a global focus. Each invested hedge fund must be independently market neutral.

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Pioneer China fund of funds targets Gulf cash

November 21, 2006

From Gulf Times:
The first ever Chinese fund of private equity funds has found fertile ground for raising cash in the Arabian Gulf, which is keen to diversify investment of its petrodollars away from the US.

Jade Alternative Investment Advisors is targeting $150mn in commitments from investors for its maiden fund and plans to open offices in the Middle East and Europe in 2007, in addition to its current offices in Shanghai and Beijing.

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AIM files to launch new fund-of-funds using ETFs

November 17, 2006

From MarketWatch:
AIM Investments of Houston, Texas, a unit of Anglo-American asset manager Amvescap PLC , has filed to launch six new mutual-funds. Each will be organized as a fund-of-funds using existing AIM mutual-funds and exchange-traded funds from its new sister PowerShares Capital Management unit, which was purchased in September. The funds will start with set allocations to different asset classes and be adjusted as investors get closer to retirement age.

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Fortis, Cadogan combine fund-of-hedge-funds operations

November 10, 2006

From MarketWatch:
Fortis NV's (FORSY) asset-management arm and Cadogan Management LLC said Friday that they agreed to combine their funds-of-hedge-funds businesses into a standalone company.

Fortis Investment Management Inc. will own 70% of the combined venture, which will operate under the Cadogan name and will have $3.7 billion in assets under management.

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$100m Jade China fund of funds

November 9, 2006

From AME Info:
Jade Alternative Investment Advisors says it is introducing a fund of funds that will invest in China. The $150m Jade China Value Partners L.P. fund is being sponsored by the Kuwait China Investment Company, a subsidiary of Kuwait Investment Authority and the National Investment Company. It will invest in top-tier private equity funds operating in mainland China.

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KD Investments launches first fund of funds

November 2, 2006

From Ziarul Financiar:
Slovenian company KD Investments Romania will launch KD Multifond, a fund of funds, a financial instrument that has never been seen on the Romanian market before. The National Securities Commission (CNVM) authorised the fund at the end of last week. Funds of funds invest primarily in other investment funds' shares, and allow investors to diversify their portfolio with ease. The representatives of KD Investments expect the fund to become operational within the month; it will focus on equity and diversified funds. "The fund will invest in equity and diversified funds at first, which are generally high-yield funds. In time, we hope our portfolio will include other funds of the KD Investments group, funds from Luxembourg and Slovenia," says Cosmin Paunescu (photo), general manager of SAI KD Investments Romania.

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Fund of Hedge Funds Selects TwoFour to Optimize Cash and FX Activities

October 30, 2006

From Bob's Guide:
TwoFour Systems, www.TwoFour.com a leading provider of global financial transaction processing systems, today announced that one of the world’s largest fund of hedge funds and investment management firms has selected TwoFour to manage its global cash and foreign exchange (FX) activities. TwoFour will be deployed in operational centers across North America, Europe and Asia.

Our client required a flexible, workflow-based solution that would enhance cash portfolio management and provide FX risk exposure management for their own internal operations as well as their clients. “We evaluated a number of leading solution providers and selected TwoFour because it provides the most flexible, robust solution. With minimal effort, they can quickly and easily configure the system to support our specific needs,” said their Global Head of Technology and Operations. “Our meetings with TwoFour have made us confident that they understand our business and will work with us to ensure a successful global implementation.”

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ABN AMRO to launch a close-ended Fund of Funds scheme

October 27, 2006

From Moneycontrol.com:
ABN AMRO Mutual Fund plans to launch ABN AMRO Multi Manager - Series 3 that seeks to take care of the asset allocation requirement of investors.

Its a three-year close-ended fund, but exit would be available on a monthly basis at applicable NAV. There will be no entry load as the fund is close-ended. The New Fund Offer Period is from October 30 to November 28, 2006 at an offer price of Rs 10 per unit. The minimum investment required is Rs 5000.

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Hedge funds for the masses

October 27, 2006

From The National Post:
In its campaign to take hedge funds to the common man, the industry often invokes the fact that well-known pension funds use their product to diversify risks. In this context, a global evaluation of hedge fund-of-fund use by institutional investors released by Mercer Investment Consulting is of interest.

The vast majority of those investors are pension funds, but they also include foundations and endowments, charitable organizations, insurance companies and government funds.

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AAAM and AllianzHFP combine for hedge fund of funds

October 18, 2006

From Investment Week:
AGF Alternative Asset Management (AAAM) and Allianz Hedge Fund Partners (AllianzHFP) are joining forces in a hedge fund of funds operation.

The hedge fund of funds will be managed by Jean-François Vert, chief executive officer of AAAM.

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Schroders launches European fund of property funds

October 16, 2006

From Reuters UK:
Schroders has launched two European funds of property funds, enabling investors to diversify property holdings beyond their domestic national markets, the firm said on Monday.

Schroders has rolled out European Fund 1, which invests in property across Europe, and Continental European Fund 1, which excludes British real estate.

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Funds of funds disappoint investors

October 9, 2006

From FinancialNews-US.com:
More than a quarter of pension schemes globally are dissatisfied with their investments in funds of hedge funds, according to a survey just published by Mercer Investment Consulting.

The consultant found only 23% of the 180 large pension schemes it surveyed worldwide were satisfied with funds of hedge funds, while 28% expressed dissatisfaction.

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Spain: retail fund of funds gain access to hedge funds

October 3, 2006

From Citywire:
Spaniards will now be able to invest in hedge funds through fund of funds under new regulations passed by the regulator, the CNMV (Comisión Nacional del Mercado de Valores).

The new legal framework allows fund of funds registered for sale in Spain to invest a maximum 10% in hedge funds.

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Fund of funds: A big price for a bit of safety

September 27, 2006

From The Globe and Mail:
A $10-billion (U.S.) hedge fund nearly collapses, and the story dominates the financial news for a solid week. A cloud hangs over the hedge industry. You'd think that would be an unhappy turn of events for Canada's chief hedge fund cheerleader.

Not at all, Jim McGovern says. On the contrary, he's enjoying the Amaranth Advisors saga. The only problem is the fund's meltdown hasn't created enough turmoil -- the financial markets brushed it off. "We'd like our clients to be a little bit more scared and the market to be a little bit more scared," says Mr. McGovern, chief executive officer of Arrow Hedge Partners of Toronto.

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Funds of hedge funds protect capital and outperform the market

September 19, 2006

From Citywire:
Funds of hedge funds appear to have done what most investors buy them for, which is to preserve capital and even produce positive returns during a market downturn.

The sector has had a bumper fund-raising year but ABN Amro analysis suggests that many of the funds are performing well.

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Fidelity to launch 12 multi-manager funds

September 18, 2006

From Reuters Italia:
Fund firm Fidelity International said on Monday it would launch 12 portfolios for European investors as part of a plan to build up a global fund of funds business.

Fidelity, which managed 10 billion pounds in multi-manager funds as at the end of June, said the new Luxembourg-listed funds would include three multi-asset portfolios and nine single-strategy funds.

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Hong Kong: A Real Estate Fund of Funds? Part 1

September 15, 2006

From Asia Property Report:
In the USA and elsewhere, and in the arenas of equities or direct investments, it is not uncommon to have funds of funds, i.e. a fund which invests in other funds that are deemed promising or well established in investment performance. Hong Kong has, at the point of composing this article, 3 REIT (real estate investment trusts) with several more being reported in the pipeline. Thus, As such, there may eventually be opportunities for setting up a (real estate investment) fund of real estate funds / REIT.

Several questions may be popping up in the readers’ minds right now.

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Funds of Hedge Funds Driving Alternative Asset Growth

September 13, 2006

From InvestorsOffshore.com:
Global alternative assets managed by leading fund managers grew to US$1.26 trillion during 2005, up around 20% from the previous year, according to research by Watson Wyatt, the consultancy firm.

The 'Global Alternatives 99' ranking, conducted in conjunction with Global Alternatives magazine, shows that fund of hedge funds (FoHFs) attracted the most new money in 2005, accounting for 44% (around US$85 billion) of net new inflows, although this was lower than in 2004, when FOHFs accounted for 50% of new money.

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Funds of hedge funds popular asset choice

September 12, 2006

From Reuters UK:
Funds of hedge funds took the biggest slice of new money pouring into alternative investments globally last year, though their popularity faded slightly from 2004, according to consultants Watson Wyatt on Monday.

These funds accounted for 44 percent of new money in 2005, down from 50 percent a year before, Watson Wyatt said. Property attracted 30 percent of inflows, while private equity funds of funds took 21 percent, and commodities 5 percent.

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FOHF giving way to single manager multi-strategy funds

September 5, 2006

From FinancialStandard.com.au:
Retreating hedge fund returns are putting hedge fund fees under increased scrutiny, especially the double fees in funds of hedge funds (FOHF), and this is seeing more attention shift to single manager multi-strategy funds which are more likely to add value.

Jane Tisdale, senior managing director of absolute return strategies at State Street Global Advisors, said, “As hedge fund returns have retreated from their peak over the last decade, the double fees funds of funds charge for their services have come under greater scrutiny.”

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'Funds of funds' offer yield and diversification, but watch fees and holdings

September 4, 2006

From MarketWatch:
Mutual funds billed as one-stop shops for yield-hungry investors searching stock and bond markets for income are on the rise. Called "funds of funds," they don't hold individual securities but instead own several other strategically selected funds.

These income-focused funds of funds invest in diverse sectors such as high-yield bonds, U.S. government-backed mortgage securities, U.S. Treasury bonds, real estate investment trusts, dividend-rich U.S. large-cap stocks and even emerging-markets bonds. Some also make "tactical" changes to their holdings, varying the percentage of the fund's assets to specific investments as the fund managers see fit.

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MSIM launches another fund of hedge funds

August 7, 2006

From InvestmentNews.com:
Morgan Stanley Investment Management said today that it launched the Absolute Return Fund STS, an institutional quality portfolio of hedge funds for special tax status investors.

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Man opens up fund of hedge funds

August 2, 2006

From InvestmentNews.com:
Man Investments Inc., the U.S. subsidiary of London-based Man Group PLC, said yesterday that it is making available its Class I units of Man-Glenwood Lexington TEI LLC, a closed end investment company that utilizes a fund of hedge funds strategy.

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United States: SEC Adopts New Fund of Funds Rules

July 28, 2006

From mondaq:
On June 20, 2006, the U.S. Securities and Exchange Commission (the “SEC”) promulgated three rules that expand the ability of an investment company to acquire securities issued by other funds.1 In general, new rules 12d1-1, 12d1-2 and 12d1-3 under the Investment Company Act of 1940 (the “1940 Act”) codify and expand prior SEC orders exempting funds from certain prohibitions under Section 12(d)(1) of the 1940 Act, but the SEC also imposed specific disclosure requirements relating to fund of funds expenses. The new rules are effective as of July 31, 2006 but compliance with the new disclosure requirements is not required until after January 1, 2007.

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Fund of funds seek safety in cash and bonds

July 26, 2006

From Citywire:
May’s dramatic correction in global markets has seen some Fund of Funds managers reducing their exposure to Asia and other vulnerable sectors.

Global markets have taken a pounding recently and the latest Citywire fund of funds (FoF) survey indicates that several leading multi-managers have shifted their portfolios into more defensive areas in anticipation of more volatility.

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Mercantile Opens Registered FOF

July 22, 2006

From Black Enterprise:
Mercantile Bankshares Corp. has officially opened the doors to outside investors in its latest registered fund of hedge funds.

The registered fund, the Mercantile Alternative Investment Funds, will be managed by the bank's investment advisory subsidiary, Mercantile Capital Advisors. The fund is based on three years of prior experience in managing the investment platform internally with steady annual returns and low volatility, officials said.

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Investcorp Receives 2006 Hedge Fund of Funds Leader of the Year Award

July 13, 2006

From PR Newswire:
Investcorp, a leading global asset manager specializing in alternative investments, today announced that it received the 2006 Hedge Fund of Funds Leader of the Year award at Institutional Investor magazine's Alternative Investment News hedge fund industry awards. Investcorp's hedge fund team was chosen from a short list of five highly regarded fund of funds in recognition of its penetration of the U.S. institutional market, its growth in assets under management and its development of a new emerging-manager platform.

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IMA survey reveals phenomenal fund of funds growth

July 11, 2006

From Citywire:
The stunning growth in popularity of funds of funds has been confirmed by the Investment Management Association’s (IMA) annual asset management survey.

Figures from the fund management trade body show that funds of funds grew to £56 billion in 2005, an increase of 56% year-on-year.

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Merrill European fund of funds to use property derivatives

June 29, 2006

From Reuters Italia:
Merrill Lynch Investment Managers will launch a European property fund of funds next month with a clear mandate to invest in commercial property derivatives, a spokesman for the group said on Thursday.

Speaking on the sidelines of the 2006 Property Derivatives World conference, Matthew Ryall, who will manage the planned Luxembourg-registered fund, declined to say how much MLIM was hoping to raise.

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Funds of Hedge Funds Withstand Downturn

June 12, 2006

From Bank Net 360:
Losses by hedge funds last month may be the catalyst for an investment spike in funds of hedge funds, given their ability to turn profits during bear markets.

"Meltdown May" wiped out profits at many hedge funds, with nearly half of all firms reporting losses last month. Funds of hedge funds are generally better than their peers at preserving gains during market downturns.

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Funds of hedge funds could benefit from market moves

June 12, 2006

From MarketWatch:
Funds that invest in diversified pools of hedge funds for institutions and wealthy individuals may see more money coming their way after recent wobbles in financial markets.

An estimated 50% of hedge funds posted losses in May due to drops in equities, emerging markets and other investments popular with portfolio managers. But people in the hedge-fund industry on Friday said the bull-market reversal could lead investors to funds of hedge funds, which historically have generated positive returns even through market downturns. For example, the HFRI Fund of Funds Composite Index, compiled by Chicago-based Hedge Fund Research Inc., returned 1% in 2002, when the S&P 500 fell 22%.

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Funds of hedge funds see returns improving

June 9, 2006

From Reuters Italia:
Fund of hedge fund managers expect returns to pick up in the final quarter of the year after a burst of volatility in global markets that drove many to seek more risk-averse strategies, according to a Reuters poll.

The quarterly survey of 12 funds of hedge fund managers, which together manage $80.6 billion (43.7 million pounds), showed average returns would be made over the second half of the year, with improving returns from global macro, long/short Japan, and emerging market strategies in the final quarter.

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Hedge Fund of Funds in the Mutual Space

June 7, 2006

From 123Jump:
A pioneer in the area, Alpha Hedged Strategies (ALPHX) defies easy comparisons. The fund employs real hedge fund managers with various strategies to create a risk-return profile suitable for mass affluent mutual fund investors. Through tight control over sub- managers and compliance with mutual fund requirements, Alpha eliminates many of the hurdles between these two worlds. Financial intermediaries are crucial to educating investors on this complex product.

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New Release For Fund of Funds Construction Software

May 18, 2006

From eMediaWire:
AlternativeSoft is pleased to announce the newest version of HFOptimizer software. The three main enhancements are 1) views on hedge funds volatility, 2) hedge fund alpha decomposition and 3) improvement in the hedge fund index return forecasting with global index outperformance of 1-3% per annum.

"This newest release of HFOptimizer software is inline with what we deliver to our clients: a new release with the latest academic finance models each 4 months" noted Laurent Favre, CEO. "We will continue to deliver a software easy to use, able to diminish the probability of extreme negative returns, selecting the best hedge funds and delivering allocation able to outperform the fund of funds peers."

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Spur Capital Partners closes $200m fund of funds

May 18, 2006

From AltAssets:
Spur Capital Partners has closed its second fund of funds on $200m. The firm initially targeted a fund size of between $175m and $200m. The first closing was held on $148m in October 2005.

Spur Capital managing director Bradford Kelly told AltAssets that a total of 35 investors have committed to the new fund, comprising existing and new investors. About two thirds of the limited partners are US foundations and endowments. Other investors are European institutions and high-net-worth individuals.

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Fund of funds make up 20 percent of fund sales

May 4, 2006

From Reuters Italia:
Net retail sales of fund of funds (FoFs) hit a record high in the first quarter according to the latest figures released by the Investment Management Association (IMA).

Sales of FoFs rose from 627 million pounds in the previous quarter to 900 million pounds, representing a fifth of total net retail sales across the industry of 4.6 billion pounds, which were up 3.3 billion pounds year-on-year and 1.4 billion pounds on the fourth quarter.

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Schroder Private Equity Fund of Funds III closes on €422m

April 26, 2006

From AltAssets:
Schroder Private Equity Fund of Funds III has held a final closing on €422m. The original target of the fund was around €285m. A first closing was held in October 2005, on €167m. SPEFOFIII is advised by SVG Advisers, the fund management business of SVG Capital.

Investors include pension schemes, family offices, charities and high-net-worth individuals. Investors in the first and second funds of funds have continued their support by committing in excess of €180m to the third fund, according to a statement.

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Gref Touts “Fund of Funds”

April 21, 2006

From The St. Petersburg Times:
The Economic Development and Trade Ministry is expected this week to unveil the companies selected to manage Russia’s new private-public venture funds, a ministry official said Wednesday.

The regional venture capital funds are being set up by the government to encourage innovation and help diversify the economy away from oil and gas.

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Asset Managers Cope With Outflows

April 17, 2006

From Barron's Online:
FOR BEHEMOTH ASSET MANAGERS LIKE American Funds, business is hot. The firm had an eye-popping inflow of $77 billion in the 12 months ended Feb. 28, according to Financial Research Corp. But some asset managers find themselves on the other side of the ledger, swamped by very big outflows.

Topping the list is Putnam Investments, a unit of Marsh & McLennan (ticker: MMC). whose net outflow over that stretch ...

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Waiting to fly

April 17, 2006

From Business Standard:
The fund of funds could have been the answer to many an investor's problems but the current tax treatment is unfriendly.

For small investors who cannot track the stock market on a regular basis, the best option is to follow the mutual fund route. With the strong performance of the stock market, equity funds have also done very well in the last three years with the average fund providing over 70 per cent annualised returns.

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