Hedge fund maestro Hintze voices concern over regulation (Financial Standard)
Tighter regulation poses the greatest challenge to the hedge fund industry, according to Australian industry legend Sir Michael Hintze. Speaking at the Alternative Investment Management Association’s Hedge Fund Forum in Sydney this week, Hintze said the alternative investment industry has had to adapt to sweeping policy interventions in the wake of the GFC such as Dodd Frank in the US and Basel III globally. “Normally we say ‘don’t waste a good crisis’ but every regulator around the world is beating their chest,” he said.
Narula’s Metacapital Said to Win $130 Million in Fund (Bloomberg)
Metacapital Management LP, the top-ranked hedge-fund manager in 2012 whose flagship vehicle this year suffered its worst quarter ever, has attracted about $130 million for a fund designed to profit from rising interest rates, a person with knowledge of the matter said. The Rising Rate Fund returned 2.7 percent in August, bringing gains since it opened in May to 13.5 percent, according to a notice this week to investors from Deepak Narula’s Metacapital. That compares with a 2 percent gain last month for the New York-based firm’s Mortgage Opportunities Fund, which has about $1.3 billion of assets, said the person, who asked not to be identified because the information isn’t public.
Macro hedge fund manager joins Swedish state fund (Financial News)
Kerim Kaskal was announced as the Tredje AP-Fonden’s new investments chief earlier this month, and will take up the position on October 1. He was previously deputy chief investment officer at Nektar Asset Management, Brummer’s €3.5 billion macro and fixed-income unit. It will be Kaskal’s second stint at the state pension fund – he was previously head of asset management there between 2005 and 2008. He was also at Brummer & Partners before that, working at Nektar between 1998 and 2004 – meaning he has spent the past 15 years alternating between the hedge fund and the pension fund.
Mixed August For Major Hedge Funds (FINalternatives)
As usual, August proved a tough month for hedge funds. “Since 2000, if I had taken £100 each time a fund manager moaned about August and exclaimed, ‘I should have just stayed on the beach,’ I could almost have afforded to stay on the beach, too,” Clareville Capital’s David Yarrow said. Yarrow can joke: While his Pegasus Fund lost 4.9% last month, it is still up 4.1% on the year. Others are not so lucky. Take Tudor Investment Corp.‘s Tensor Fund: It lost 2.2% in August to extend its year-to-date decline to 6.2%, DealBreaker reports. And that loss is positively modest compared to some others.
SEC Rewards Three Whistleblowers Who Helped Stop Sham Hedge Fund (SmartPros Accounting)
This is the first installment of anticipated payments to the whistleblowers as additional assets are collected from the purported hedge fund manager. The whistleblowers are expected to ultimately receive approximately $125,000 in total. The SEC issued an order earlier this summer rewarding each of the three whistleblowers with 5 percent of the money that the SEC ultimately collects from its enforcement action against Locust Offshore Management and its CEO Andrey C. Hicks.
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