Protections in hedge-fund proposal axed: Aguilar (MarketWatch)
A series of investor-protection provisions were removed from a hedge-fund advertising proposal on the eve of a vote on it, a top commissioner on the Securities and Exchange Commission told reporters Monday. “I was very disappointed that the rule as proposed did not include any of the pro-investor initiatives many commenters had written in about,” Democratic Commissioner Luis Aguilar told reporters after speaking at an accounting conference.
ATA RiskStation launches risk reporting solution for hedge funds and family offices (HedgeWeek)
“Our proprietary risk system fills a clear market gap for cost-effective but comprehensive risk modelling,” says Aladin Abughazaleh, ATA RiskStation’s founder. “Our core premise is that no single measure of risk is perfect or reliably models downside exposure in all market conditions and for all portfolio types.” The service offers clients the ability to set up highly customised risk scenarios that use a variety of Value at Risk and stress testing models. In addition, for each model, clients can define a broad range of associated inputs or parameter sets. The analytics included in the system’s risk reports are powered by RiskAPI, PortfolioScience’s on-demand API-based risk analysis service.
TCW adding direct lending, hedge fund strategies (PIOnline)
TCW Group is adding hedge fund and direct lending strategies with the acquisition of the special situation business of credit investment manager Regiment Capital Advisors and a joint venture with hedge fund manager Scoggin Capital Management, confirmed Peter Viles, TCW spokesman. Terms on either deal were not disclosed. When the deal closes, the Regiment group within TCW will focus on direct lending to middle-market companies. Regiment’s special situation business currently has $2 billion in committed and invested assets. Its last fund was the $1.7 billion Regiment Capital Special Situations Fund V, which closed on July 1, 2011.
Hedge Funds Prioritize Technical Compliance Over a Culture of Governance, According to Corgentum Consulting’s Investor Survey (TimesUnion)
Corgentum Consulting, the leading provider of the industry’s most comprehensive hedge fund operational due diligence reviews, today announced the results of a survey that shows the majority of investors (72%) feel hedge funds are focused on achieving only the technical compliance, versus pursuing a culture of governance, when it comes to regulatory preparedness. “The post Dodd-Frank environment has brought increasingly complex technical requirements for hedge funds, such as the recent SEC registration requirements and Form PF filings,” said Jason Scharfman, Managing Partner of Corgentum Consulting. “Investors are increasingly observing that fund managers have become strapped for resources by complying with these new technical rules and have moved away from instilling best practices.”
Hedge Funds: Victims of the Financial Crisis, or Not? (ai-CIO)
How has the financial crisis impacted hedge funds and the existence of fire sales, which occurs when these investors experience outflows and sell stocks that are common across their portfolios? One newly released academic paper by Nicole Boyson of Northeastern University, Jean Helwege of University of South Carolina, and Jan Jindra of Ohio State University investigates hedge fund stock trading from 1998 and 2010 to test for fire sales. The paper argues against a commonly held view of hedge funds in the subprime crisis, which describes them as victims of severe outflows and margin calls that forced them to sell assets into a declining market. “While many of the stylized facts suggest that the financial crisis was exacerbated by forced sales of stocks by hedge funds, our analysis suggests otherwise,” the report concludes.
‘Soft’ increase seen for base money manager salaries in 2012 (PIOnline)
Base salaries for money management professionals are projected to increase 3.5% in 2012 with incentive pay projected to rise up to 10%, according to a new study from Greenwich Associates and Johnson Associates. …Hedge fund professionals are projected to earn about 1.8 times that of people at traditional money management firms in both buy-side equity and fixed income, in line with the previous year, and are projected to remain fairly stable in the short and medium term. However, traditional fixed-income professionals are making headway; in 2010, hedge fund professionals were making about 2.4 times that of traditional firms in the fixed-income asset class. Equity hedge fund professionals are projected to make about 1.85 times that of traditional buy-side equity professionals in 2012, nearly identical to 2011 numbers; traditional equity professionals actually made about 1.05 times more than hedge funds in 2010.
San Francisco HF Manager Retires (HedgeFund)
The co-founder of a San Francisco-based hedge fund firm is stepping down from his post at the end of the year. Reuters reported that David Scially, who oversees a large portion of Kingsford Capital Management’s AuM, is retiring to spend more time with his family. The article also said that the firm has had some time to prepare for Scially’s departure.
Vision Opportunity Fund Limited Partnership recognized at the 2012 Morningstar Canadian Investment Awards (NewsWire)
Vision Capital Corporation (“Vision”) is pleased to announce that the Vision Opportunity Fund Limited Partnership (the “Vision LP”) was recognized with an award as one of the Top 3 Best Opportunistic Hedge Funds in Canada at the 2012 Morningstar Canadian Investment Awards. This is the second consecutive year that Vision has received this recognition. Vision’s unique and differentiated strategy, in conjunction with the experience of the Vision team, has generated strong absolute and risk-adjusted total returns for the Vision LP. Since its inception on July 2, 2008, through October 31, 2012, the Vision LP has delivered a 25% compounded annual return, net of fees and expenses, representing a cumulative total return of 164%.
