New York (HedgeCo.net) - Hedge funds returned to positive territory in February 2010 according to a preliminary Eurekahedge report. There were approximately 90 hedge fund launches globally in 1Q2010. With arbitrage hedge funds delivering 15 consecutive months of positive returns, gaining 26.23% since November 2008.

Hedge fund returns across most regions were marginally positive for February; however, early reports showed that North American managers, who make up 65% of the hedge fund universe, posted impressive gains of 1.41%. Regional managers capitalised on the marked improvements in market sentiment on the back of some strong earnings reports, positive movements in the US dollar and commodities as well as improved manufacturing data and the Fed’s decision to maintain low interest rates

Latin American funds were also positive with a 0.48% returns in February while Asia ex-Japan and Japan funds returned nominally positive performances. Continued problems in the eurozone led to negative results by the region’s managers, who were down 0.66% in February as the euro weakened amid speculation of Greece’s sovereign debt default.

The composite Eurekahedge Hedge Fund Index gained 0.52% during the month as the underlying global markets posted a recovery from a disappointing January. The MSCI World Index was up 1.23% in February, bringing its YTD figure to -3.01%.

The Eurekahedge CTA/Managed Futures Hedge Fund Index was up a strong 1.27% during the month. Continued low interest rates in the US also helped managers in the bonds sector to deliver yet another month of positive results. Fixed income, arbitrage and relative value hedge funds were all up during the month while distressed debt managers were flat to slightly negative.

Date: Tue, 09 Mar 2010 13:49:00 +0000

HedgeCo News - U.S. prosecutors yesterday recommended a sentence of 335 years in prison for hedge fund founder Thomas Petters, more than twice the term given to Bernard Madoff, according to Bloomberg. Petters was charged with mail and wire fraud, money laundering and obstructing justice.

A federal judge in Minneapolis ordered Petters to be held without bail in October 2000, after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country.

Petters and his hedge fund, Petters Group Worldwide LLC was convicted in December 2000, of all 20 criminal counts, adding up to a $3.5 billion fraud.

“The defendant’s fraud is staggering and unprecedented in size and impact on victims and the community,” prosecutors said, according to Bloomberg.

The case is U.S. v. Thomas Joseph Petters, U.S. District Court, District of Minnesota. The final sentencing is set for April 8th.

Date: Tue, 09 Mar 2010 12:52:00 +0000

Via HedgeTracker
Name		Style	Estimated Assets at Launch $mm	Location
AE Capital Management		Global Macro	10	Singapore
Astenbeck Capital Management		Commodities Focused	1,400	Westport, CT
Black’s Link Capital Ltd		Event-Driven	NA	Central Hong Kong
Castle Hill Asset Management		Fixed Income	2,150	London
Doubloon Capital LLC		Distressed	NA	Norwalk, CT
Edward Hornstein LLC		Long/Short Equity	10	New York, NY
Munsun Asset Management		Asian Equities	NA	China
Nautical Capital Management		Commodities Focused	NA	Purchase, NY

Date: Mon, 08 Mar 2010 13:43:00 +0000

New York (HedgeCo.net) - Research and Markets has added John Wiley and Sons Ltd's new report "The Hedge Fund Fraud Casebook" to their offering. An in-depth look at the first 100 cases of proven fraud at hedge funds.

Some highlights:

* First comprehensive survey of hedge fund fraud including 100 chronological fraud cases
* Includes descriptions of each case, diagram of the player interaction, and tables detailing monies recovered, fines paid, prison terms, and professional sanctions
* Useful for both individual and professional investors, particularly given the last eighteen months of fraud and mismanagement among leading financial professionals and companies

Author Bruce Johnson spent more than a decade as a hedge fund practitioner, managing and advising funds. He was CEO of Albourne America LLC, the U.S. arm of Albourne Partners, a hedge fund advisory firm based in London. While at Albourne, Johnson researched new approaches to hedge fund due diligence including the quantitative analysis of "fund failure" and hedge fund credit.

After an earlier career as an architect and city planner in New York and London, Johnson has gained twenty-four years worth of experience in finance, including extended postings in Tokyo, Hong Kong, and London. While head of Global Research for Baring Securities, he published an important paper on the future of the Chinese and Indian economies, correctly predicting their current impact on global trade, and also created and managed the first investable global emerging markets equity index.

Date: Mon, 08 Mar 2010 13:11:00 +0000

Independent hedge fund services provider, Maples Finance, has expanded its European service offering in Luxembourg following the approval of its Registrar Agent license by Luxembourg’s financial supervisory authority, the Commission de Surveillance du Secteur Financier.

"We are delighted to broaden our capabilities in Luxembourg, where we have acted as a licensed Domiciliation Agent since 2007." Maxine Rawlins, CEO of Maples Finance, said," As we begin to see recovery in global markets, Maples Finance is well positioned to deliver seamless services to our clients both in Luxembourg and globally."

Maples Finance services $30 billion in investment fund net assets from its worldwide network of offices in financial centres including Canada, Dubai, Dublin, Luxembourg, Hong Kong, and the Cayman Islands.

Date: Wed, 03 Mar 2010 11:33:00 +0000

The Ireland-based Hedge Fund College has announced the launch of its Certificate in Hedge Fund Regulation, the first regulatory certification in the hedge fund industry.

“Never has it been more important for the hedge fund industry to demonstrate a greater regulatory awareness." Thomas Bullman, founder of the Hedge Fund College, said, "Both European and US regulatory proposals will have far-reaching effects. Everybody within the hedge fund industry has an obligation to ensure that they are sufficiently educated on how these new measures will impact them. The Hedge Fund College aims to provide a broad certification that a candidate has demonstrated an understanding of hedge fund regulation and current issues.”

The Certificate in Hedge Fund Regulation provides a broad-based curriculum in hedge fund regulation, delivered online by distance learning.

Sponsored by The Hedge Fund Society and its international advisory board of academics and commercial practitioners, the course provides an introduction to hedge funds, their history and the regulatory issues surrounding them. The course also provides a review of regulatory theory and analysis of the regulation of hedge funds, hedge fund managers, hedge fund service providers and hedge fund standards in the UK, EU and US.

Date: Wed, 03 Mar 2010 11:06:00 +0000

HedgeCo News - Former hedge fund manager Arthur G. Nadel has pled guilty to 15 counts of securities fraud, mail fraud, and wire fraud, the US attorney for the southern district of New York said.

The indictment claims that from 1999 through January 2009, Nadel perpetrated a Ponzi scheme to defraud investors in six different investment funds, consistently loosing money and using his investor money to fund his lifestyle and several businesses, including a real estate project in North Carolina, his wife's flower shop, and his purchase of several private planes.

From 1999 through January 2009, nearly 250 people invested more than $397 million with the Funds. NADEL received tens of millions of dollars in management fees and performance incentive fees. As a result of Nadels's Ponzi scheme, investors suffered losses of approximately $162 million.

The hedge fund manager pleaded guilty to six counts of securities fraud, one count of mail fraud, and eight counts of wire fraud, and faces a maximum penalty of 20 years in prison on each of the counts.

Nadel faces a maximum fine of the greater of $5 million or twice the gross gain or loss from the offense. For the mail fraud and wire fraud charges, he faces a maximum fine of the greater of $250,000, or twice the gross gain or less from the offense.

Date: Thu, 25 Feb 2010 14:08:00 +0000

HedgeCo News - Geneva based hedge fund advisory company, NARA Capital, announced plans to release its UCITS Alternative Index® to the public. A series of indices aims to track the performance UCITS hedge funds and funds of funds.

”NARA has been tracking the emergence of UCITS hedge funds for more than two years and has constructed and developed what is probably the most comprehensive database of that universe." Louis Zanolin, Partner at NARA Capital said, "The trend for more regulated and liquid alternative strategies will increase the demand for UCITS alternative funds over the coming year, so will the need for independent comparative tools. We have therefore decided to publicly release the index performance.”

The UCITS Alternative Index® series are equally weighted. The performance for any particular month will accessible on the UCITS Alternative Index® website www.ucits-alternative.com generally on the 5th business day of the following month. The inception date of the index is 1st January 2008.

As of February 2009 the UCITS Alternative Index® was tracking close to 400 UCITS hedge funds and funds of hedge funds totaling more than 63 billion EUR assets under management. Only funds pursuing hedge fund like strategies are taken into account for the index calculation. Absolute return funds with no shorting capabilities as well as 130/30 and passive hedge funds index UCITS funds are excluded from the
index.

In 2009, the UCITS Alternative Index® Global returned +9.27% while the UCITS Alternative Index® Fund of Funds returned + 1.64%.

With +34.68%, the UCITS Alternative Index® Emerging Markets was the best performing strategy in 2009.

It was followed by the UCITS Alternative Index® Fixed Income which returned +11.83%. The least performing index in 2009 was the UCITS Alternative Index® Equity Market Neutral with a -0.57%.

At the end of January 2010, Macro hedge funds represented the largest assets under management with 27.3 billion EUR ($ 36.9 billion). It was followed by Fixed Income and Long/Short Equity Funds with respectively 26.7 and 20.7 billion EUR ($36.1 and $28 billion). In term of jurisdiction, 48% of the funds were based in Luxemburg, 20% in Ireland 17% and in France.

Date: Wed, 24 Feb 2010 13:57:00 +0000

HedgeCo News - Hedge fund consultant, Hennessee Group LLC, conducted a study examining the correlation between the breadth of equity market moves and the performance of long/short equity hedge funds relative to traditional indices.

Through this study, the Hennessee Group confirmed that hedge funds generally lag their traditional counterparts when the equity markets experience strong advances and winners greatly outnumber losers as witnessed in 2009. Conversely, when the markets experience a more balanced move or a meaningful move to the downside, hedge funds generate significant alpha on a relative basis.

“Hennessee Group research indicates that in market advances where winners outnumber losers by more than 3 to 1 (breadth ratio of 3.0), hedge funds generally struggle to differentiate themselves as performance is strongly driven by momentum (beta) as opposed to strong stock selection (alpha),” stated Mr. Gradante, Managing Principal of Hennessee Group . “During such strong, broad based gains, hedge funds have a particularly difficult time identifying good shorting opportunities as there can be a disconnect between fundamentals and stock performance. Therefore, short positions generally serve as a drag on performance in these markets.”

Ratio of Winners to Losers Historically a Strong Indicator of Relative Performance

The Hennessee Group evaluated the performance of the Hennessee Long/Short Equity Index against the S&P 500 Index while also taking into consideration the breadth of the equity markets each calendar year period dating back to 1983. Over these twenty three calendar year periods, the Hennessee long/short equity index underperformed the S&P 500 Index ten times. During nine out of those ten calendar year periods, the Hennessee Group found that the S&P 500 Index experienced at least 3 times the number of winners than losers (the lone exception we observed was 1998 when Long-Term Capital Management meltdown which caused distress in the hedge fund industry). To illustrate, in 2009, 425 of the S&P 500 Index constituents experienced gains while 73 experienced losses. With over five stocks up for every one stock down for the year, hedge fund managers found it very difficult to successfully add value with strong selection, particularly on the short side. The most profitable portfolio strategy in such an environment was to increase net exposure and lever the portfolio to benefit from the beta driven market. That said, while hedge funds generally lagged in such beta driven environments, they still managed to perform well as the Hennessee Long/Short Equity Index generated positive returns each calendar year, with double digit gains in eight of the ten.

The remaining 13 calendar year periods when the Hennessee Long/Short Equity Index outperformed the S&P 500 Index, the market moves were more generally balanced with a breadth ratio consistently less then three; providing long/short equity managers with a greater opportunity set to generate alpha on both sides of their books. Of particular note is 1999 when the S&P 500 Index experienced a strong +20% gain. Despite the strong equity rally, hedge funds managed to outperform the traditional index as the breadth of the move was more evenly balanced relative to other equity market rallies (breadth ratio of 1.06) allowing managers to generate alpha through strong stock selection. During other calendar year periods with low breadth ratios, hedge funds generated double digit alpha relative to the index irrespective of market direction.

2010 Outlook

In January, the S&P 500 Index declined -3.7% with 133 issues up and 366 issues down. Consistent with the results over the last 23 years, the breadth ratio of 0.4 proved favorable to hedge funds on a relative basis as the Hennessee Long/Short equity Index outperformed the S&P 500 by 280 basis points. A distinguishing factor between hedge funds and traditional equity investing in January was the ability to generate alpha with short positions and market hedges. The greater the universe of shorting opportunities, the greater the likelihood hedge funds will outperform their traditional counterparts, particularly during market downturns.

“In 2009, hedge funds most willing to take on greater net long exposure and bought high beta stocks were most rewarded while those funds that remained defensively positioned, with low net long exposure and an emphasis on fundamentals, generally lagged” said Mr. Gradante. “We believe 2010 will be different. We anticipate greater dispersion among sectors and stocks and a more balanced advance/decline ratio as fundamentals come into main focus again.”

Date: Tue, 23 Feb 2010 11:42:00 +0000

HedgeCo News - The date has been set for hedge fund founder Raj Rajaratnam's criminal suit, New York Judge Richard Holwell has delayed it till Oct. 25, 2010. "Ensuring a full opportunity for both sides to litigate all the issues," the court document read.

Prosecutors said the hedge fund manager would have an unfair advantage if a civil trial by market regulators went ahead before a criminal trial, Reuters reported. However, the Galleon team won the right to postpone the trial. The civil lawsuit is scheduled for August 2, 2010.

Rajaratnam is being accused of insider trading and securities fraud, generating as much as $49 million in profit.

Reuters says the majority of the stocks are in technology, including, IBM, Intel, Akamai Technologies Inc, Polycom Inc, Hilton Hotels Corp, Google Inc, Sun Microsystems Inc SUNW.TI, Clearwire Corp, Advanced Micro Devices, ATI Technologies Inc and eBay Inc.

Rajaratnam could face a sentence of up to 185 years, if convicted.

Date: Thu, 18 Feb 2010 13:47:00 +0000

HedgeCo News - New York based institutional investment research company, Carbon 360, conducted a survey of third party marketers as well as capital introductions groups titled “Capital Introduction Trends in 2010”, to investigate the most sought after strategies, sourcing trends and due diligence concerns while asking how the industry might evolve over the next five years.

The survey showed that the investor base is now dominated overwhelmingly by institutions, family offices, and pension funds. Investors have also developed a taste for Global strategies in addition to traditional long/short funds, the survey found.

While performance remains a primary concern, transparency and risk management have grown to become critical concerns for investors.

“As hedge funds go, so goes the capital introduction industry.” Evan Rapoport, CEO of HedgeCo Securities LLC, said. “In that mode of thought, transparency and risk management are the popular trends. “If we can work with regulators to legitimize the industry and overcome the scandalous actions of a select few, I am all for it. This will be a major theme ongoing.”

“I expect institutional investors to be more receptive to newer managers, fee structures to remain stable, and foreign investors to invest more in the US and vice versa.” Rapoport said, “Europe should lose market share to Asia, and new markets will open up as countries move from developing markets to developed markets. Proprietary trading and hedge funds owned by large US banks will most likely weaken or disappear under the current administration and, more importantly, current US economy sentiment, leading to opportunities for independent investment management companies. Overall, I expect 2010 to build on the strength of the latter half of 2009.”

“When reviewing this year’s survey, the downward trend in assets does appear to be slowing, with some firms actually reporting slight increases in capital from the Q3 2009 forward.” Brian Shapiro, President of Simplify LLC, a portfolio management company, said, “Our hopes are that this data shows that the flight of capital and negative return trends of the past 24 months are now coming to an end, and the funds can utilize the lessons learned during these difficult times to continue supporting the process of hedge fund evolution from, opaque black-box, to transparent and liquid financial products.”

Date: Tue, 16 Feb 2010 12:33:00 +0000

HedgeCo News - Hedge fund founder Raj Rajaratnam won an emergency order relieving him from having to turn over wiretap recordings in the SEC v Galleon case, according to a Reuters report.

Because of legal hurdles in obtaining the 14,000 wiretap intercepts, the SEC was seeking it from Rajaratnam and his co-defendant, Danielle Chiesi.

Rajaratnam’s lawyer last month attacked the U.S. government’s wiretap evidence saying he would file a motion to suppress the telephone recordings which were used to arrest Rajaratnam and more than a dozen other people in the Galleon raid.

The temporary stay was granted late yesterday by U.S. Court of Appeals, Reuters said. The reprieve came just two days after a U.S. District Court Judge ordered the deadline of Feb. 15 for Rajaratnam and Chiesi to surrender the recordings to the SEC.

Rajaratnam and Chiesi are being accused of insider trading and securities fraud, enabling the pair to generate $49 million in profit.

Reuters says the majority of the stocks are in technology, including, IBM, Intel, Akamai Technologies Inc, Polycom Inc, Hilton Hotels Corp, Google Inc, Sun Microsystems Inc SUNW.TI, Clearwire Corp, Advanced Micro Devices, ATI Technologies Inc and eBay Inc.

A civil lawsuit is scheduled for August 2, 2010. The prosecution has also indicted Rajaratnam on criminal charges.

Date: Fri, 12 Feb 2010 13:23:00 +0000

HedgeCo News - The U.S. Bankruptcy Court in Los Angeles has agreed to uphold the hedge fund Pacificor's purchase of the 'Terminator' franchise rights from Halcyon Holding Group LLC, The Wall Street Journal reports.

Halcyon Holdings had accepted a deal from hedge fund Pacificor on Tuesday after a five-hour auction, according to a reports.

The Terminator rights were sold for $29.5 million, following a legal battle in which Halcyon Holding was forced to file for bankruptcy, the case was started by the hedge fund which won the bidding wars, Pacificor.

Columbia Pictures Industries Inc. and Lions Gate Films Inc.'s final offer was $28.5 million, plus $5 million for each of the first three sequels, but eventually the team lost out to the frenetic bidding of the hedge fund.

"We're very pleased," hedge fund attorney David B. Shemano said in an interview with The Wall Street Journal.

"Not only did Halcyon receive the green light to sell the "Terminator" rights to Pacificor but the production company was finally able to resolve a dispute it had with the hedge fund during the sale process," Shemano said.

Date: Fri, 12 Feb 2010 12:53:00 +0000

HedgeCo News - Raj Rajaratnam and Danielle Chiesi Federal have been accused with a 19-count superseding indictment by Federal prosecutors yesterday, Courthouse News Service reported.

A superseding indictment is an indictment that is filed subsequent to an original indictment. It is usually based upon supervening events that logically change the nature of the original indictment.

The superseding indictment is based on guilty pleas from Anil Kumar and Mark Kurland, the Courthouse reported.

The government is claiming Rajaratnam and Chiesi made millions of dollars for themselves and their hedge funds by trading on inside information about Intel, IBM, Akamai Technologies, Polycom, Hilton Hotels Google, Sun Microsystems, Clearwire Corp., Advanced Micro Devices, ATI Technologies, eBay, and PeopleSupport.

The investigation started with suspicions in the 1990s when chip maker Intel Corp alleged that Rajaratnam was receiving tips from an Intel insider. The investigation was based on a witness who had first entered into a plea agreement with the United States before she began to cooperate in an investigation into Rajaratnam’s practices.

Rajaratnam was taken into custody in New York on Oct. 16, 2009 in the USA’s largest hedge fund insider-trading scheme. His bail was set at $100 million.

Date: Wed, 10 Feb 2010 14:27:00 +0000

HedgeCo News - Halcyon Holdings has accepted a deal from hedge fund Pacificor yesterday after a five-hour auction, according to a report by IndieMoviesOnline.com.

The Terminator rights were sold for $29.5 million, following a legal battle in which Halcyon Holding was forced to file for bankruptcy, the case was started by the hedge fund which won the bidding wars, Pacificor.

Lionsgate and Sony were strong bidders, but lost to the frenetic will of the hedge fund, which has an interesting backstory in the case.

For the full story of hedge fund Pacificor vs. Halcyon, we turn to MTV News, which reports:

"When Halcyon purchased the "Terminator" rights in 2007, Pacificor lent them some amount of money to cover the $30 million price tag. Pacificor also pushed the former rights-holder into bankruptcy and was the target of a $30 million filed by Halcyon which included allegations of extortion, bribery and fraud." MTV reports.

"The word is that the hedge fund's winning bid comes with a tantalizing string attached to it for Halcyon: in addition to the $5 million they'll receive for future "Terminator" movies and any royalties from the third and fourth movies, they are also officially off the hook on debts to Pacificor and other creditors, pending the approval of a bankruptcy court." MTV said.

"Have Pacificor got a good deal? Have Terminator fans got a good deal? Are there any Terminator fans left out there after Salvation?" Paul Martin, writer for IndieMoviesOnline.com asked, "Personally, this writer thinks those hedge fund whizzes at Pacificor could have saved themselves a few quid and just come up with their own, completely original, relentless, robotic movie monster. Something like... the Exterminator. Or the Killinator. Or the Deadenator."

Date: Tue, 09 Feb 2010 16:57:00 +0000

A recent survey by TKS Solutions revealed that 10% of hedge funds have considered switching administrators during the past 12 months due to issues stemming from timeliness and accuracy of partner and shareholder accounting reports.

"Based on feedback from our hedge fund customers," Ronald Kashden, President of TKS, said, "We discovered that many administrators were still struggling under the weight of convoluted spreadsheets.”

One particular vexing aspect of automating fund processing is the reality that every client is different and has unique reporting needs.

"We are advancing our software to address this through the use of user-defined reporting fields." Kashden said, "Now the user can create custom reporting fields for their clients that extend the database and the application’s reporting capabilities, which can be associated with investors, funds, or even transactions. Once created, the application is instantly aware of any of new fields and the relevant screens and reports are automatically adjusted to reflect these fields. By combining these fields with the built-in report writer, administrators can easily tailor reports to the needs of each client."

Date: Thu, 04 Feb 2010 13:42:00 +0000

HedgeCo News - Seven hedge fund traders and lawyers pleaded not guilty to securities fraud charges in the USA v. Goffer et al. case, according to Reuters.

Zvi Goffer, dubbed "Octopussy", appeared before Manhattan federal court Judge Richard Sullivan to answer an indictment unsealed on January 21, charging them with securities fraud and conspiracy to commit securities fraud, Reuters reported today.

The others who pleaded not guilty were associated with Incremental, Reuters said; Zvi Goffer's brother Emanuel Goffer, Michael Kimelman and David Plate; Arthur Cutillo, who had been a lawyer at Ropes & Gray LLP; and another lawyer, Jason Goldfarb.

The Galleon insider trading case also involves the employees of some of America’s best-known companies, including International Business Machines Corp, McKinsey & Co and Intel Capital, an arm of Intel Corp.

Reuters also reports that a former Wall Street hedge fund manager, David Slaine, pleaded guilty last December to charges of insider trading that reaped profits of $3 million. The plea was unsealed yesterday.

Date: Wed, 03 Feb 2010 14:08:00 +0000

HedgeCo News - The London Nominees Football Fund launched on Feb 1, 2010, with approximately $40 million in assets under management.

The investment panel includes ex international players, coaches and leading industry experts offering investment in clubs, players, related brands and franchises, at a low minimum investment. Up until now, the football industry has been highly specialized and is difficult for the average investor to participate in. The Football Fund has recently signed 2 key football figures, namely Carlos Alberto Torres, now Chairman of the Football Fund, and Bryan Robson, who is the ex-captain of Manchester United and is currently managing the Thai national team.

“I am thrilled to contribute my experience with Football teams and clubs to The Football Fund. Our team, while focused on business, is as much driven by the love of the sport as the goal of well-earned profit.” Torres, said, “The Football Fund invests not only in hard assets that bear fruit, but also in new ideas, fresh endeavors, and in the next generation of Football’s growth and development.”

“Our Fund empowers clubs, academies, and businesses around the world to advance the sport, and to make the dreams of tomorrow’s players a reality. The Fund’s goal is to create value for your investment; its mission is to give each investor the opportunity to invest in the passion, the excitement, and the richness of the Beautiful Game.” Torres said.

Salaries for the top players are approaching $10 million while the transfer fees can touch $100 million and just the English Premier League 2010-2013 UK broadcasting rights are in the region of 1.9 billion Euros.

Date: Tue, 02 Feb 2010 15:45:00 +0000

Hedgco News - Assets raised by hedge fund startups in 2009 fell 36% from the previous year, marking the second year in a row that new fund assets declined significantly, according to the biannual AR New Funds Survey, published in the February issue of AR.

The largest new fund launches in the U.S. in 2009 amassed $14.89 billion, in contrast to $23.17 billion for the largest new funds in 2008 and $31.5 billion in 2007.

Although 53 funds with at least $50 million in assets launched by year-end, compared with 55 in 2008, the average size of the funds fell significantly. The number of new funds managing more than $1 billion also decreased. Only two new funds were able to end 2009 with $1 billion or more in assets, compared with 2008, which had five funds managing that amount.

Soros Fund Management alums Joshua Berkowitz and Marcel Kasumovich boasted the biggest new fund of the year with their Woodbine Capital Fund, a global macro strategy that launched at the end of 2008 but only started taking outside capital in 2009. The fund ended the year with $2.5 billion and is already nearing $3 billion thanks to additional in-flows at the start of 2010.

Arvind Raghunathan’s Roc Capital Partners Fund was the second-largest launch of the year—and the biggest that actually opened its doors in 2009. The firm’s global equity fund launched in August and ended the year managing $1 billion.

“There is still a reluctance of investors to part with their money. Moreover, the big issues of 2008 – transparency and liquidity – continue to be major challenges for new funds,” said Michelle Celarier, editor of AR. “The barriers to entry are also the highest they have ever been and the environment has been particularly challenging for capital raising.”

New strategies that are getting attention from investors include specialist and niche equity strategies such as those focused on health care, clean technology, climate change and alternative energy. Merger arbitrage is also attracting interest as the number of mergers and acquisitions increase.

TOP TEN HEDGE FUND LAUNCHES 2009

* Estimated

HedgeFund Intelligence is the world’s leading information source on hedge funds and those investing in hedge funds, including funds of funds. It publishes performance data on more than 10,000 hedge funds and funds of funds around the globe, and its titles cover the U.S., European and Asian markets.

Date: Tue, 02 Feb 2010 13:36:00 +0000

HedgeCo News - Galileo Capital Management has launched LGBT Capital, a specialist Corporate Advisory and Investment Management Unit focused on the lesbian, gay, bisexual and transgender (LGBT) consumer market.

LGBT Capital provides corporate advisory and business development services for companies that serve the LGBT consumer sector. In addition, LGBT Capital is preparing to launch a fund that will invest in companies worldwide that provide products and services to the LGBT community.

LGBT Capital’s principals Anders Jacobsen and Paul Thompson have over 40 years combined experience in the investment management sector with distinguished track records in global investment managers including Goldman Sachs, Prudential Financial, Inc., Bankers Trust and Chase Manhattan Bank as well as a unique knowledge of the LGBT sector. Between them they have advised numerous mutual, private equity, venture capital and hedge funds on their establishment and launch, as well as provided growth and development strategies for existing investment funds.

The power of the ‘pink dollar’ is now well understood by mainstream global marketers. LGBT Capital believes that as LGBT freedoms continue to develop, growing companies will increasingly look to raise capital, merge and acquire, which will require specialist advice and capital raising options.

LGBT Capital has met with a significant number of LGBT business owners and managers and found that many plans do not come to fruition due to the lack of professional business development advice available and the shortage of advice on how to access external investors. This is partly because many LGBT-oriented companies were originally established with a degree of secrecy and without the financial support otherwise available to start-up companies.

“LGBT-oriented business owners often have the desire to expand but also frequently lack the expertise, correct capital structure or know–how to access funding” said Paul Thompson, co-founder of LGBT Capital. “We believe there is a significant opportunity to provide the financial expertise typically found within an investment banking context to LGBT companies, which in turn would allow quality companies to secure funding”.

“A LGBT oriented resort was up for sale recently but despite many parties expressing interest, sufficient capital could not be raised by any one company or investor on their own” Paul Thompson said. “There is huge interest from investors to be part of the growth in the LGBT market but without concentrating risk in just one or two investments. The Fund we are preparing will provide a diversified portfolio of investments, both geographically and by business sector, in order to satisfy this investor demand”.

A survey commissioned by Galileo Capital Management in December 2009 and carried out by Iliad, the LGBT business networking organisation, among members of the London LGBT business community found that 80% of LGBT companies believe there is insufficient specialist advice on capital raising and structure as well as M&A.

The survey highlights significant suppressed and unmet demand for investment banking and business development advisory services to LGBT companies. Of the respondents, 80% of LGBT companies require capital for expansion, 100% of LGBT companies have expansion plans including expansion outside of their current scope/geography and 100% of LGBT companies would consider mergers, acquisition and third party investment.

The survey also found 100% of potential investors in LGBT companies did not proceed with their investments, with 80% citing inadequate funding and capital structure as the main reason.

“We expect there to be a significant increase in LGBT-oriented companies in the developing markets, coupled with greater openness within the developed markets. This will provide significant opportunities for corporate activity, including cross-border investment opportunities requiring industry specialists”, said Paul Thompson, the former first foreign CEO of a mainland China fund management business.

Anders Jacobsen observed that “there appear to be some very interesting combined investment and advisory opportunities, notably where relatively mature companies are looking to expand into developing markets such as China”.

LGBT Capital has operations in Europe and Greater China and a team of advisors with global coverage. LGBT Capital is committed to working with quality LGBT-oriented companies and to supporting the liberalization of LGBT freedoms, combining private sector investment approach and expertise with philanthropic support.

Date: Tue, 02 Feb 2010 12:35:00 +0000

A Silicon Valley hedge fund management and technology firm, Gazebo Financial Services, LLC, today announced the introduction of a new, free, web-based software tool for selecting and analyzing hedge funds.

The Gazebo Analytic Platform (GAP) simplifies searching large hedge fund databases by combining sophisticated data mining tools with a streamlined user interface. Investors and fund managers can now find funds based on a text search of an entire database, or using selection criteria including Market, Style, Geography, and Performance. The unique Funds Like This TM feature identifies similar funds based on strategy and return history.

Financial researchers can analyze funds from this database and from data they upload themselves privately and securely. The customizable Fund Report and multi-fund Comparison Report provide a large range of traditional and innovative analytic tools and charts. Funds can be combined to simulate and analyze portfolio performance.

Gazebo is providing this free tool because the current offerings of hedge fund analytics software are simply too cumbersome and expensive. “We don’t understand how you can charge $5000 a year for search tools and some math,” commented Roy McDonald, Chairman & CEO of Gazebo Financial Services. “GAP is a user-driven project that cuts out the bloatware in other software. It delivers simple, powerful solutions that managers can use anywhere, anytime to improve their investment and fund management strategies.”

Date: Tue, 02 Feb 2010 11:52:00 +0000

I just made a loan to someone in Bolivia using a revolutionary new website called Kiva (www.kiva.org).

You can go to Kiva's website and lend to someone across the globe who needs a loan for their business - like raising goats, selling vegetables at market or making bricks. Each loan has a picture of the entrepreneur, a description of their business and how they plan to use the loan so you know exactly how your money is being spent - and you get updates letting you know how the entrepreneur is going.

The best part is, when the entrepreneur pays back their loan you get your money back - and Kiva's loans are managed by microfinance institutions on the ground who have a lot of experience doing this, so you can trust that your money is being handled responsibly.

I just made a loan to an entrepreneur named Celestino in Bolivia. They still need another $750.00 to complete their loan request of $1,200.00 (you can loan as little as $25.00!). Help me get this entrepreneur off the ground by clicking on the link below to make a loan to Celestino too:

http://www.kiva.org/app.php?page=businesses&action=about&id=169377

It's finally easy to actually do something about poverty - using Kiva I know exactly who my money is loaned to and what they're using it for. And most of all, I know that I'm helping them build a
sustainable business that will provide income to feed, clothe, house and educate their family long after my loan is paid back.

Join me in changing the world - one loan at a time.

Date: Mon, 01 Feb 2010 21:36:00 +0000

My first gold purchase, 18k, 12g. I saw it while shopping for my nieces at Christmas and it got stuck in my mind.

I told the jeweller's wife I would plug the boutique, so here it is: B&S Gold and Antique, Linnégatan 3, Goteborg, Sweden. (website coming) +46(0)311 259 97

The custom made pieces from Russia are awesome, (I was only allowed to see them because of this plug) and the antique collection is marvellous. The prices range from affordable to exorbitant and the collectors (husband and wife) have a classic taste which is never out of style.

Their collection includes pieces with: hidden latches, clasps and secret repositories, quite like some quasi-modern Steampunk pieces I have seen recently.

My little Earth is meticulously cast in gold, with all coastlines intact and the name of each continent etched in place.

Date: Mon, 01 Feb 2010 18:38:00 +0000

New York - Hedge Funds Care is holding its 12th Annual New York "Open Your Heart to the Children" benefit on Thursday, February 25, 2010 at Cipriani 42nd Street.

A committee will award Michael E. Novogratz, President of Fortress Investment Group, with a Hedge Funds Care Award, among others. The first founder's award will be presented to Lee Daniels, director of Precious. Michelle Caruso-Cabrera of CNBC will serve as master of ceremonies for this year's event.

The New York benefit is one of the key charity events in the hedge fund industry, gathering over 1,000 industry leaders and raising over $1,000,000 for child abuse programs in New York, New Jersey, and Connecticut. This year's event will feature an elegant cocktail reception, in lieu of a seated dinner.

Event co-chairs include Dean C. Backer, managing director of Goldman Sachs and Richard H. Baker, president of the Managed Funds Association.

Date: Mon, 01 Feb 2010 13:41:00 +0000

HedgeCo News - Silk Invest's Luxembourg SICAV hedge fund, the Silk Road Income Fund, has been awarded the 2009 ‘golden bull’ prize for innovation at the ‘Finanzen Nacht’ ceremony in Munich. Hailed by the German press as the “Oscar of the financial world”, the award is sponsored by Euro, Germany’s leading finance publication. The gala evening was attended by over 500 delegates.

The Silk Road Income Fund was launched in October 2009. It gives investors exposure to a range of frontier fixed income markets, previously inaccessible to mainstream European investors in the shape of a UCITS compliant fund.

The award winning hedge fund was launched to compliment Silk Invest’s equity offerings, namely the African Lions and Arab Falcons funds. As its name implies, the geographic remit of the fund is Africa, the Middle East and the Central Asia, leveraging of Silk Invest’s position as a market leader in these geographies

Zin Bekkali, CEO of Silk Invest, said “we are proud to have been recognized in this way. We launched the fund so that our clients could capture the unrivalled risk-return profile that we see in these markets. To be called innovative is icing on the cake and is especially nice in view of all the effort we have put into structuring access to these markets.”

Silk Invest believes that the frontier fixed income markets are often mispriced and overlooked by the mainstream. Daniel Broby, the Chief Investment Officer of Silk Invest, notes that ”investment in frontier markets today is now feasible. Risk is mispriced and with appropriate diversification our portfolio managers have constructed a robust investment grade portfolio with substantial yield pick-up.”

The Silk Road Income Fund aims to manage 60-80 holdings across 25 countries. The target portfolio is to achieve annual returns of 16.5% with a duration of 3.4 years and an average rating of “BB+”.

Silk Invest is headquartered in London with staff in the UAE, South Africa, Morocco, Egypt and Cameroon. The Silk Invest team consists of highly experienced specialists from South Africa, Nigeria, Egypt, Pakistan, UK, Belgium, Netherlands, Ivory Coast, Cameroon, and Morocco.

Date: Mon, 01 Feb 2010 13:14:00 +0000