Tuesday, June 12, 2007

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“The life of man is like a game with dice; if you don’t get the throw you want, you must show your skill in making the best of the throw you get.” - Terence

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 Top Stories


Hedge Fund Agrees to Acquire James River
Source: The New York Times
The James River Group, a property and casualty insurer, said yesterday that it had agreed to be acquired by the hedge fund D. E. Shaw Group for $575 million in cash. More...

ESL Investments to raise new hedge fund
Source: FinancialNews-US.com
Edward Lampert, the billionaire founder of hedge fund ESL Investments, is reportedly raising money for a new investment fund.

Lampert, who started his hedge fund in 1988, is raising up to $5bn (€3.7bn), according to the television news channel CNBC. The new fund will have a minimum investment of $25m and investors will not be able to retrieve their money for five years.  More...


Greenwich: Hedge Funds Having Best Year In Four
Source: FINalternatives
Hedge funds are on pace for their best year since 2003, as the Greenwich Global Hedge Fund Index rose 2.18% last month to reach 6.84% year-to-date. More...

Hedge-Fund Manager Sender's Curator Faults Art Basel (Update2)
Source: Bloomberg
Todd Levin, hedge-fund manager Adam Sender's art curator, did most of his shopping before going to Art Basel, which previews today. More...

More of Today's Stories continued below...  or  Today's Stories unabridged on the web

  Term of the Day & Related News

Fund of Hedge Funds

A fund of hedge funds is an investment company that invests in hedge funds -- rather than investing in individual securities. Some funds of hedge funds register their securities with the SEC. These funds of hedge funds must provide investors with a prospectus and must file certain reports quarterly with the SEC. Many registered funds of hedge funds have much lower investment minimums (e.g., $25,000) than individual hedge funds. Thus, some investors that would be unable to invest in a hedge fund directly may be able to purchase shares of registered funds of hedge funds. More...
 
Related News:

Fund of Funds survey: Risk aversion is the name of the game
Source: 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.
More...

'Excellent first quarter' for funds of hedge funds
Source: 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.
More...

  Scholarly Article & Related News

Diversifying Market Risk through Market-Neutral Strategies
by Marco A. Navone
Usually hedge funds are linked to concepts such "superior selection ability" and "abnormal returns" (subject to abnormal risks). Recent literature has pointed out that seldom hedge funds achieve performances significantly higher than broad capitalization market indices or mutual funds, and that basically hedge funds are just a different way to rule the agency relation between investors and the investment manager. From this consideration follows that one of the most important features of hedge funds is the manager's ability to take both long and short positions on the markets...
More...

 
Related News:

JPM soft-closes Highbridge fund
Source
: Citywire
JP Morgan has closed the JPM Highbridge Statistical Market Neutral fund to new investors after assets under management surged to $8.7 billion (£4.36 billion) within six months of launch.
More...

The Do-It-Yourself Market-Neutral Portfolio
Source
: SeekingAlpha
The hedge fund business has been growing rapidly in recent years—with no end in sight. Wealthy investors are seeking alternative investments to meet their needs and hedge fund managers have an array of tools and strategies at their disposal. One of the core strategies employed by hedge funds is what is called market-neutral investing. A market-neutral portfolio is designed to deliver returns that are not impacted by the movements of the broader market. This does not mean that a market-neutral approach is low risk, however. Goldman Sachs' (GS) largest hedge fund employs market-neutral strategies and has attributed their very poor recent performance partly to this approach. More...

  Top Stories by Category
  Book of the Day & Related News

   
Hedge Fund Risk Fundamentals
by Richard Horwitz
Average Customer Review: 3.5 
out of 5 stars
Price: $40.95
 
Book Description
In the constantly evolving hedge fund marketplace, nothing is more central—but in many ways, more amorphous and elusive—than risk. Yet there remains no standard for analyzing and measuring risk within this highly secretive, largely unregulated field, leaving the thousands of hedge funds—and the tens of thousands of hedge fund investors—in dangerously dim light. The industry has not solved the "transparency" challenge—communicating risk to investors without disclosing proprietary information.

Related News:

Brace For Volatility With Top Foreign Stocks
Source: Investors.com
One of the big drivers of the current bull market has been emerging markets, home to some of Wall Street's biggest winners this decade.
More...

Spread the risk
Source
: NEWS.com.au
THERE are three simple rules to remember when it comes to investments.

Don't put all your eggs in one basket, if it's too good to be true it usually is, and the higher the return, the higher the risk. More...

 

  Personal Interest


Astronauts Deploy Solar Panels on International Space Station
Source: Voice of America
Astronauts on the U.S. space shuttle Atlantis have begun deploying solar panels on the newest component of the International Space Station, in a measure to increase electrical power to the station. More...


$54 Million Pants Suit Begins
Source: ABC News
This morning in the nation's capital, a local judge will go to civil court to claim that he is owed $54 million from a local dry cleaner who he says lost his pants. More...

 

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   Top Stories (Continued)


Cool regulator won't stop Indian hedge funds
Source: NDTV Profit
Indian hedge funds will grow rapidly despite a hesitant attitude from the country's regulators, industry participants said on Tuesday, as investors keep piling money into the nascent industry. More...

DE Shaw ups stake in ITG, urges it to consider sale
Source: Reuters
Hedge fund D.E. Shaw has increased its stake in Investment Technology Group (ITG.N: Quote, Profile, Research to 6.2 percent and asked the electronic broker to consider a sale, according to a regulatory filing. More...


Germany hopes for more hedge fund talks
Source: Reuters UK
Germany's finance ministry said on Monday it hoped for further discussions on improving the transparency of hedge funds after last week's G8 summit yielded no concrete plan for doing so. More...

Hedge fund market opens to Islamic investors
Source: ArabianBusiness.com
Dubai Islamic Bank has teamed up with two of the biggest names in world finance to open up the lucrative hedge fund market to Islamic investors. More...

Omni’s Multi-Strat Hedge Fund Closes In On $350M Target
Source: FINalternatives
Omni Partners has rebranded its highly successful Hartford Growth Fund and opened it to outside investors. The newly-dubbed multi-strategy Omni Global Fund began trading in February with some $60 million in assets. More...

On Hedge Funds, Batting Averages and Fat Tails
Source: The New York Times
Hedge funds and those who do business with them were warned Monday by a Treasury official not to operate “under the false illusion” that systemic risk from their activities was not a “real possibility.” More...

SGAM offers Alternative Investments Equity fund to UK
Source: Investment Week
SGAM is offering the SGAM AI Equity fund to the UK market after receiving distributor status.

The Ucits III product offers institutional and retail clients exposure to hedge fund specialists managing long-only or long-biased equity investment strategies. More...

Hedge fund seeks out deals for Freeport
Source: CNN Money
U.S. hedge fund Atticus Capital LP said it has met with third parties to encourage strategic deals with Freeport-McMoRan Copper and Gold Inc., less than three months after the miner became the world's largest publicly traded copper producer.
More...


Today's Stories unabridged on the web
 

 
   Today's Humor
Pete and Gladys were looking at a new living room suite in the furniture store.

Pete said to the salesman, "We really like it, but I don't think we can afford it."

The salesman said, "You just make a small down payment, and then you don't make another payment for six months."

Gladys wheeled around with her hands on her hips and said, "Who told you about us?"
 

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