Some Quick Thoughts On What It Takes To Start A Hedge Fund These Days (BusinessInsider)
The Bloomberg Hedge Fund Summit just wrapped up a panel on hedge fund start-ups, and they made a few points that we had to share right away. The panelists were Jason Ader, CEO and CIO of Ader Investment Management, Gregory Hall, Senior Managing Director from Blackstone Alternative Asset Management (BAAM) and Ted Seides, President and Co-CIO of Protégé Partners, LLC.
Investors Pressure SAC, but Performance Rises (CNBC)
Citigroup’s private bank has put the embattled hedge-fund company SAC Capital Advisors on watch, say people familiar with the matter, making it the latest big investor to either part ways with SAC or say it’s considering doing so. Putting a hedge-fund on watch is a standard step for the Citigroup private bank when a fund is subject to some sort of news event, adds one of the people familiar with the matter. Nonetheless, it’s a signal that, while no final decision has yet been made, SAC Capital may be fired from the bank’s hedge-fund platform, removing its clients’ ability to invest through Citigroup Inc. (NYSE:C) in the Stamford, Conn. fund.
Hedge Funds And The New Risk Management Paradigm (Finalternatives)
As alternative investment strategies become significant and substantial parts of institutional investors’ portfolios, the risk management practices that they have traditionally employed are no longer adequate. Generic, static risk measurement templates can create a false sense of comfort. Supposed enhancements such as position-level transparency are often useless without methods for effectively distilling and utilizing such information. A flexible definition of risk has become essential in an era of unprecedented sophistication in investment strategies and enhanced governance practices. Furthermore, the ability to not just measure risk, but foster ongoing risk awareness and dialogue with a broad audience—particularly including fund fiduciaries—should be the new objective.
Hedge Fund Manager Describes The Biggest Problem With Carson Block’s Newest Short (BusinessInsider)
When Muddy Waters’ founder Carson Block announces that he’s shorting a company, the Street listens. That’s why everyone is talking about Olam, a commodities trading firm based in Singapore. Anybody can be wrong though, so it’s important to get other arguments in the mix as well Dwight Anderson is a Managing Partner of Ospraie Management, LLC, a hedge fund with a history of working in the commodities space. Anderson sat down with Bloomberg’s Stephanie Ruhle for an interview, and she asked him what he thought of Block’s short.
It’s All In The Name – Building A Successful Brand (MetroCorpCounsel)
When a hedge fund or private equity fund is initially formed, its reputation is inextricably linked to that of its founders. As with any successful business, however, the value of hedge and private equity fund names over time will evolve from the goodwill and reputation that they have developed, distinct from the founder’s individual reputation. To maximize this value, hedge and private equity funds would be best served to plan and execute a tailored trademark strategy to successfully brand their company and fund names. A well-developed trademark strategy begins by selecting a name that is protectable, differentiates you from your competitors, communicates your core message, and avoids violating the rights of others…
New pay structure created by MassPRIM hoped to help staff retention (PIOnline)
Massachusetts Pension Reserves Investment Management Board, Boston, approved a new compensation structure for geared toward helping recruit and retain investment professionals, said Michael Trotsky, executive director and chief investment officer. Asset class heads — public markets, hedge funds, private equity, real estate and risk management — will now be eligible for a bonus of up to 40% of compensation, from 30%. Currently, only the executive director, chief investment officer, chief financial officer and general counsel are eligible for bonuses that high.
Camulos Co-Founder Returns With Europe-Focused Hedge Fund (Finalternatives)
Camulos Capital co-founder William Seibold is back, three years after he was forced to shutter his last hedge fund. Seibold has founded Recipero Capital and plans to launch its maiden hedge fund in the second half of next year, Bloomberg News reports. He said he hopes to raise €800 million for the fund, which, unlike Seibold’s previous ventures, will be based in Europe. Recipero will provide capital to middle-market business in Europe, primarily in France, Germany, Italy and the U.K., Seibold told Bloomberg.