Fund Managers to Make ‘Plain English’ Disclosures (WSJ)
Money managers are gearing up for a public and plainly stated confessional. Disclosure questions from the Securities and Exchange Commission on fees, investment strategies and disciplinary histories that were once asked in a check-the-box format now must be answered in plain, long-form English. Thus, the world will be able to read what managers have to say about their funds and their pasts all in their own—or their lawyers’—words. The aim is to make managers more accountable in their disclosures and provide investors and prospective clients with more information about managers, their operations and personnel.
Asia hedge funds add $20 bln in 2010, manage $152 bln (Reuters)
Asian hedge funds added $20 billion to their assets in 2010, backed by positive returns and accelerated flows in the second half of the year as investors returned to bet on the fast growing region. Assets under hedge funds focused on the region rose to $152.3 billion in 2010, up from $132.2 billion a year earlier, a survey by fund tracker AsiaHedge released on Tuesday showed. About half of the asset growth was due to net inflows with 95 new hedge fund launches contributing $3.84 billion to the asset growth in 2010, an increase of 50 percent from a year earlier.
Gov’t witness: Galleon paid for tips (AP)
A wealthy hedge fund manager got “red hot” information about a pending technology industry merger in 2006 and warned another wayward manager not to reveal inside securities secrets with her “little boyfriends,” according to testimony and wiretaps presented Monday at an insider trading trial. Former financial consultant Anil Kumar testified that he and the defendant, Raj Rajaratnam, broke the law by speaking regularly about the negotiations over the acquisition of ATI Technologies Inc. by Kumar’s client, Advanced Micro Devices Inc., before the deal was made public. “I told him that this was ‘red hot’ and shouldn’t be discussed,” Kumar said. Later, he said he cautioned the defendant, “This is going to be a complete shock to the industry … so treat this with the strictest of confidence.”
Hedge Fund Firm 36 South Moves To London, Preps New Fund (FinAlternatives)
36 South Investment Managers’ Black Swan Fund gained 234% in 2008. The fund, which capitalized on the unexpected, high-impact events known as black swans, was shuttered in 2010 after losses. Now the firm, relocated from New Zealand to London, is preparing to launch another tail risk vehicle, the Black Eyrar Fund. FINalternatives’ Senior Reporter Mary Campbell spoke to 36 South co-founder Jerry Haworth recently about the new fund, the decision to move to London and just what is an ‘eyrar,’ among other subjects.