It isn’t every day that Ray Dalio opens up to the world and speaks. Dalio is widely considered the most powerful hedge fund manager in the world. And from his secretive firm, Bridgewater, in Connecticut, he does what many money managers are unable to do — navigate the choppy waters of today’s market and produce alpha. So his appearance on CNBC’s Squawk Box this morning deserves your rapt attention.
Palmer Square Capital adds Geneva Arbitrage hedge fund to partnerships (BizJournals)
Leawood-based Palmer Square Capital Management LLC formed a new partnership on Sept. 17, agreeing to inject assets into Geneva Arbitrage Fund LP in exchange for a significant minority ownership stake. The partnership is Palmer Square’s fourth in the past 18 months, all part of its offerings in its Emerging Managers Fund. Geneva now joins offerings from Cypress Capital Management, Millstreet Capital Management and LNG Capital; all employ different hedge fund strategies.
AIMA appoints former SEC Commissioner Kathleen Casey as new Chairman (Opalesque)
The Alternative Investment Management Association (AIMA), the global hedge fund industry association, has announced the appointment of a new non-Executive Chairman, Kathleen Casey, the former Securities and Exchange Commissioner and SEC representative to the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB). Ms. Casey served as a United States Securities and Exchange Commissioner from 2006-2011. During her tenure, she acted as the SEC’s principal representative in various international regulatory dialogues and fora, including IOSCO and the FSB. In that role, she also served as Chair of the IOSCO Technical Committee and led various international regulatory workstreams.
Four hedge fund managers join Forbes rich list (eFinancialNews)
Four hedge fund managers are among the 20 newcomers to this year’s ranking of the 400 richest Americans by Forbes magazine. The four hedge fund newcomers are: 311 – Chase Coleman, $1.5bn, founder of Tiger Global Coleman is 37 years old and the sixth-youngest on the list. Forbes said: “Probably the hottest money manager on the planet, his Tiger Global racked up gains of 45% in 2011, outperforming just about every other hedge fund; it has continued its winning streak, up in excess of 20% during the first half of 2012.” 347 – Daniel Loeb, $1.3bn, founder of Third Point Forbes said: “Activist hedge fund trader led a successful effort to dislodge Scott Thompson from the CEO position at Yahoo and help get Marissa Mayer hired as its new chief.” Third Point also gained from taking positions in US health insurers during the second quarter of this year which rose after the US Supreme Court approved the Obama administration’s Affordable Care Act according to the Wall Street Journal.
Canadian fund ups stake in Argos Resources (ProactiveInvestors)
Canadian hedge fund Salida Capital has increased its stake in Falkland Islands explorer Argos Resources Ltd (LON:ARG) to 3.3%. Salida bought 6 mln shares at 22p from Argos Georgia, a company half-owned by Argos’s executive chairman Ian Thomson, to take its total holding to 7.2 mln shares. Argos Georgia now owns 9.24% of Argos Resources, with Thomson’s holding in the explorer now an aggregate 19.46%.
Hong Kong start-ups lift Asia hedge fund industry – survey (Reuters)
Asia-focused hedge funds slightly increased the value of the assets they manage to $144 billion in the first half of the year, helped by a few large start-ups in Hong Kong even as the industry in Singapore and Japan shrank. Assets rose 2.5 percent, or $3.5 billion, as of the end of June compared with six months ago, a survey by industry tracker AsiaHedge showed on Friday. That was in line with the 2.4 percent return seen in the Asian hedge funds measured by the fund tracker.
Swiss hedge fund manager joins the “buy gold” bandwagon (Examiner)
Voices of the financial world have been very positive in the media lately in their speculation regarding the price of gold, with many predicting huge gains. Famed Swiss hedge fund manager Felix Zuauf is joining those voices, encouraging those who choose gold bullion over stocks or bonds, saying that the bond market, according to his analysis, should be headed towards a bear market after 30 years of being bullish. In a statement released this week, Zuauf stated that those with a plan to buy gold when prices are starting to drop are on the right track and should see major growth in the value of their holdings in the years to come. Zulauf went so far as to say that not only does he foresee the Treasury bond market grinding down, but also the stock market and even currencies.
SEC files charges against failed hedge fund (BizJournals)
The Securities and Exchange Commission on Thursday filed civil lawsuits against several parties connected to the collapse of a Portland hedge fund. The SEC filed three individual lawsuits, targeting Yusaf Jawed and the failed hedge fund Griphon Asset Management LLC as well as former business partner Lyman Bruhn and his Sasquatch Capital LLC. The lawsuits, filed in federal court in Portland, allege Jawed masterminded a “long-running, multi-millon dollar Ponzi scheme.”
BlackRock earns double honours at hedge fund awards (FinancialStandard)
The BlackRock Australian Equity Market Neutral Fund received double honours at the annual Cure Our Kids Australian Hedge Fund Awards last night, winning awards for Australian hedge fund of the year, and best market neutral fund. The wholesale fund delivered 22.49% p.a. annualised gross of fees over two years to 30 June 2012. Judges said that market neutral and global macro strategies dominated performance in a year that has been unforgiving to stock pickers. Simon Ibbetson, 358 Pty Ltd, and Zenith’s Daniel Liptak, both on the judging panel, said good sector calls had separated the best from the rest, and that Australia’s market neutral funds had outperformed their global peers.
Bayside Capital Adds Two Managing Directors in London (PEHub)
H.I.G. Capital, a leading global investment firm, announced today that Ahmed Hamdani and Duncan Priston have joined the London team of Bayside Capital, the distressed debt and special situations affiliate of H.I.G. Ahmed has more than ten years of experience in the European distressed market. He was previously a Portfolio Manager at Trafalgar Asset Managers, a London based credit hedge fund where he managed its distressed credit fund. At Bayside, he will lead the firm’s non-corporate distressed investment team focusing on a number of asset classes including real estate, shipping and aircraft.
Financial Roundtable Brings Awareness to Charity (HedgeFund)
A symposium with experts from the hedge fund world also served as a platform for a charitable endeavor. The Capital Markets Roundtable hosted by investment bank Canaccord Genuity and nonprofit organization Youth, I.N.C. (Improving Nonprofits for Children) was held on Wednesday. The event was not only to hear the views of the brightest financial minds, but also to bring attention to Youth, I.N.C., which links those who work in the for-profit sector with nonprofits that assist disadvantaged youth in New York City, and especially its annual Trading Day for Kids benefit that takes place on October 25.
Rich hedge fund investors lose again (MarketWatch)
Picture a passive investing portfolio versus a selection of active, hot-and-heavy hedge funds. In such volatile times, the active funds should be trouncing the market, right? There must have been plenty of opportunities and special situations to jump on. Uncertainty and panic are a great environment for contrarian risk-takers. Think again. The year so far perfectly illustrates the dangers of active investing compared to simple passive investing portfolio strategies.
Corporate Resource Services Inc. Appoints James Altucher to the Company’s Board of Directors (Equities)
Corporate Resource Services (OTCBB: CRRS, the “Company”) is pleased to announce the appointment of James Altucher to the Company’s Board of Directors effective immediately. Mr. Altucher, 44, brings a wide range of investment experience to the Board. He was the founder of Stockpickr LLC and a managing partner at Formula Capital Management LLC, an alternative asset management firm that runs a fund of hedge funds. He also is a columnist for the Financial Times as well as other blogs and publications and the author of the books Trade Like a Hedge Fund, Trade Like Warren Buffett and SuperCa$h. Previously, Altucher was a managing partner at technology venture capital firm 212 Ventures and was the founder of Vaultus and Reset Inc. He holds a bachelor’s degree from Cornell and was a doctoral candidate at Carnegie Mellon University.
SEC Enforcement Roundup: Hedge Fund Manager’s $37 Million Ponzi Scheme Busted (AdvisorOne)
Recent actions taken by the SEC include charges against a hedge fund manager for running a $37 million Ponzi scheme; a former director in a compensation scheme that netted hundreds of thousands of dollars in undisclosed income; co-founders of a Chicago-area investment firm over misleading investors and supervisory failures that resulted in penalties of more than $1 million; and a private fund manager and his investment advisory firm over more than $17 million in losses in a Ponzi-like scheme. Hedge Fund Manager Charged for $37 Million Ponzi Scheme The SEC filed fraud charges against Jusaf Jawed, a Portland, Ore.-based investment adviser, who perpetrated a long-running Ponzi scheme that raised over $37 million from more than 100 investors in the Pacific Northwest and across the country.
Aberdeen Expects More Hedge Fund M&A: Reuters (Barrons)
While a number of hedge funds have already been caught up in the consolidation wave, expect more to come, according to Aberdeen Asset Management In a report from Reuters out today, Aberdeen said it expects managers who have less than $3 billion in assets under management to struggle to survive in the current environment of growing scrutiny, poor returns, rising costs and less capital. “What you have is a number of businesses over the years which have been quite successful, have very good revenues, and now they are finding their performance is being compromised and their high-water mark is out here,” Andrew McCaffery, Global Head of Hedge Funds at Aberdeen, told Reuters in an interview. Aberdeen has about $4.5 billion under management in its hedge fund business. McCaffery sees his funds’ future growth not coming from wealthy individuals but institutional investors looking for tailored investment products.
AOL Names Former Hedge Fund Exec as New CFO (InvestorPlace)
AOL, Inc. (NYSE:AOL) has found a new chief financial officer to replace Artie Minson, who became the Internet pioneer’s chief operating officer in June. Karen Dykstra has been tapped as AOL’s new financial chief. She was a partner at Plainfield Asset Management, a hedge fund from 2006 to 2010, Reuters noted. Dykstra has resigned from AOL’s board of directors to assume the CFO position. Regulatory filings indicate that Dykstra will received an annual salary of $700,000. She may also receive stock options and a yearly incentive bonus potentially equal to her entire salary.
Seven Years Of Smoke And Mirrors In $1 Million Hedge Fund Scam (Forbes)
From April 2005 through November 2006, Michael Katz, Christopher Fardella and two other individuals were partners in a pretty impressive sounding Florida-based hedge fund: KMFG International, LLC. Katz was the Portfolio Manager and Fardella the Treasure. For starters, just consider that august name: KMFG International, LLC. You got four initials making up the first name of this hedge fund. Any organization that goes by initials must be pretty big, right?
The Great Hedge Fund Myth (USNews)
Things are looking pretty bleak for the “masters of the universe”: hedge fund managers. According to a blog by Jeff Macke, host of Yahoo’s Breakout, the average hedge fund was up 3.8 percent through August. Those are pretty dismal returns considering the fact that the S&P 500 index was up 11.9 percent. It is not entirely clear what investors in these funds are getting for the $2 trillion or so they have invested. Macke predicts that 2012 may turn out to be the third year in a row of underperformance for hedge funds.
The wealthy behind U.S. presidential race (Reuters)
Individual donors to U.S. presidential candidates can contribute up to $2,500 for the state-by-state party nominating contests and another $2,500 for the general election. But independent groups called Super PACs have no limits on what they can raise from individuals, corporations or labor unions. …Julian Robertson – hedge fund industry legend at Tiger Management. Total donations: $1.3 million Crow Holdings – Dallas-based investment firm managing the wealth of the family of the late Dallas real estate mogul Trammell Crow, whose sons Harlan and Trammell S. Crow are also donors. Total Crow Holdings and Crow donations: $1.3 million
SEC Freezes Assets of Insider Trader in Burger King Stock (SEC)
The Securities and Exchange Commission today obtained an emergency court order to freeze the assets of a stockbroker who used nonpublic information from a customer and engaged in insider trading ahead of Burger King’s announcement that it was being acquired by a New York private equity firm. The SEC alleges that Waldyr Da Silva Prado Neto, a citizen of Brazil who was working for Wells Fargo in Miami, learned about the impending acquisition from a brokerage customer who invested at least $50 million in a fund managed by private equity firm 3G Capital Partners Ltd. and used to acquire Burger King in 2010. Prado misused the confidential information to illegally trade in Burger King stock for $175,000 in illicit profits, and he tipped others living in Brazil and elsewhere who also traded on the nonpublic information.
