Video: Why hedge fund managers like the reinsurance business (Artemis.bm)
Multi-Strat Re is an interesting strategy which could help both smaller hedge funds, or hedge funds who do not want to devote the time to establishing their own reinsurance vehicle and building experienced teams, to get into the reinsurance business and begin to profit from the investment capital it provides via the reinsurance float. Recently, Opalesque TV interviewed Joe Taussig, the CEO of Multi-Strat Holdings Ltd., which owns Bermuda domiciled reinsurer Multi-Strat Re. Taussig explains in the video why hedge fund managers like to get into the reinsurance business, how the strategy works and how Multi-Strat aims to make the venture simpler for fund managers.
HFR: Net inflows to Asian hedge funds exceed flows to both U.S. and European-focused hedge funds in Q2 (Opalesque)
Building on strong recent performance gains, global investors increased allocations to Asian hedge funds in the second quarter with net inflows to Asian hedge funds exceeding the flows to both U.S. and European-focused hedge funds, according to the latest HFR Asian Hedge Fund Industry Report, released today by HFR, the established global leader in indexation, analysis and research for the global hedge fund industry. Investors allocated over $3 billion of new capital to Asian hedge funds, with new inflows concentrated in Equity Hedge strategies and Japan-focused funds. As of 2Q, total capital invested in the Asian hedge fund industry increased to over $98.4 billion (¥9.6 Trillion Japanese Yen, 602 Billion RMB), the highest level since 2007.
Billionaire Bill Ackman Takes On The World (Forbes)
William Ackman, the billionaire hedge fund manager, is having an eventful summer battling iconic Wall Street titans and corporate leaders as he tries to turn around his most problematic investments. In recent days, Ackman has launched a fierce showdown with the board of directors of J.C. Penney Company, Inc. (NYSE:JCP), the struggling retailer in which Ackman’s Pershing Square hedge fund is the biggest shareholder. He reportedly threatened the board, on which he himself sits, that he would sell Pershing Square’s 18% stake in the company if it did not quickly replace CEO Myron “Mike” Ullman. Ackman made his campaign against Ullman public as a letter he sent to the board demanding that Ullman be replaced soon found its way to CNBC.
Hedge Funds Flock To Curacao (Curacao Chronicle)
Citco is once again the most popular administrator for hedge funds, topping the annual Absolute Return ranking for the fifth consecutive year. The international firm, which has led the survey every year since its inception, further increased its market share to 23.03%, approximately 1.2 percentage points more than last year. Citco has kept its lead by investing aggressively in new products such as Treasury and collateral functions, and news standalone risk management software in the Americas and Europe, said global head of sales Jay Peller. Even among startups, the breadth of what funds are demanding from their administrators is increasing, he said.
Kinetic Partners helps Piquant Technologies become first UK hedge fund authorised according to AIFMD (HedgeWeek)
The directive, which came into force on the 22 July 2013, will change the way EU fund managers manage their alternative investments. Andrew Shrimpton, global head of regulatory compliance at Kinetic Partners, says: “It’s extremely rewarding for us to know that we have helped Piquant Technologies become the first hedge fund to be authorised by the FCA according to the EU AIFMD. To this end, we worked closely with a number of different parties to put in place the right structure and documentation needed to make sure that all of the regulatory and tax requirements were met. We were able to execute this quickly, with the transition from the original application to the new authorisation according to the AIFMD taking just three weeks.”
