February 25th, 2014
In collaboration with Latham & Watkins, the Managed Funds Association, trade group for the hedge fund and alternative assets industry, is out with a new hedge fund glossary. The MFA is offering the law firm’s Book of Jargon – Hedge Funds on its website. With some 900 terms, the glossary is a complete set of key terms, phrases, and definitions specific to all aspects of the global hedge fund industry. The Book of Jargon – Hedge Funds is also available as a free app that allows users to access the information on Apple’s iPhone and iPad devices.
February 21st, 2014
Hedge funds badly underperformed the broader markets last year — and aren’t expected to do much better this year — but investors are undaunted. They’re expected to add another $171 billion.
With this year’s estimated $193 billion in earning, hedge fund assets should top $3 trillion by year end, says Deutsche Bank, which this week released its 12th annual Alternative Investor Survey.
“The hedge fund industry is predicted to reach a record $3 trillion by 2014 year-end, driven by significant inflows, most notably from institutional investors,” said Barry Bausano, co-head of Global Prime Finance at Deutsche Bank. Read the rest of this entry »
January 7th, 2014
Bitcoin, the leading virtual currency that may be best known for its use by the online drug black market site SilkRoad, is garnering at least a veneer of respectability. Every day more businesses are deciding to accept bitcoins in payment for products and services. While most are small, niche e-commerce sites, bigger and more established business, including coffee shops in Silicon Valley and the Jeep dealership in Overland Park, Kan. are opting to allow customers to pay with bitcoins. Read the rest of this entry »
December 1st, 2013
In a world where buy and sell orders can be executed in milliseconds and billions of dollars can be moved around the globe in less time than it takes to read this article, one type of transaction remains true to the world of pen and ink. Prospective investors in hedge funds almost universally must complete printed application forms that often can be 50 or more pages.
And that’s only part of it. Hard copies of bank statements, investment reports, tax returns, passports, and more had to be submitted with the application. All this, then, is reviewed by fund administrators and manually entered into the fund’s electronic system before a dime can be transferred. Read the rest of this entry »
October 18th, 2013
Financial professionals may be wizards at analyzing complex transactions, but explaining them in words plain enough for the rest of us to understand is a rare skill. Whether bankers, accountants or asset managers, too many insist on taking the long road to get to the point. It’s almost as if they believe the more words they use, the more impressive the analysis. Nothing could be further from the truth, says Susan Weiner, a chartered financial analyst and author of Financial Blogging: How to Write Powerful Posts That Attract Clients. She offers seven tips for improving the writing of financial professionals, beginning with examples from the most revered of investors, Warren Buffet. His “plainspoken style instills trust in investors,” she says, suggesting that writers read their “clunky sections” out loud. And while they’re at it, trim down too long sentences and too wordy paragraphs. MarketingProfs.com
October 6th, 2013
“An investment approach that combines rigorous risk management with a stock selection process can be a valuable addition to a hedge fund portfolio,” writes Dr. Vinay Nair, managing partner and CEO of Ada Investment.
He says a “Portfolio Fit Strategy” is emerging as an attractive approach to market seasonality.
“Much like the global weather patterns, our financial markets are prone to unpredictable bouts of various seasons – now more than in past cyclical upturns. So, even as there may be an ideal strategy for each season, there is another increasingly important question – what season should the hedge fund allocator design their portfolio for? Read the rest of this entry »
September 20th, 2013
Like so many other companies, financial services firms are embracing the Internet cloud for its convenience, versatility and, not just coincidentally, its ability to provide quick recovery in the event of a disaster. When Superstorm Sandy struck New York and New Jersey, financial firms that had backed up their digital data to the cloud were able to resume business as soon as workers had their own Internet access restored. A survey of investment managers, hedge funds and others by Eze Castle Integration probed the whys and benefits of using the cloud. These findings will be detailed in a webinar for fund managers on Sept. 24th at 11 a.m. eastern.
September 4th, 2013
Private equity investment funds can be held liable for the unfunded pension liabilities of their portfolio companies under a decision by a federal appeals court in Boston.
Ruling that equity funds are engaged in a “trade or business” under the Employee Retirement Income Security Act (ERISA), the court overturned a district court decision to the contrary. Read the rest of this entry »
August 6th, 2013
The 100 largest alternative investment managers controlled more than $3.1 trillion at the end of 2012, with real estate managers handling the largest share.
The Global Alternatives Survey, compiled by Towers Watson, found real estate funds had 34% of the total global investment, followed by direct private equity fund managers with 23% ($717 billion). Hedge funds and funds of hedge funds had $612 billion and $176 billion respectively.
Pension funds, by far, comprise the largest share of the total, accounting for 36% of the total assets managed by the 100 largest managers. The next largest share, at 19%, comes from wealth managers; insurance companies, at 9%, rank third. Fifteen years ago, pension fund assets amounted to just 5%. Read the rest of this entry »
July 29th, 2013
The SEC’s long expected decision lifting the 80 year ban on advertising for private placements — think private equity and hedge funds — now opens the door for managers to appeal directly to consumers for the first time. It’s a “sea change of communication opportunities and challenges for hedge fund managers, says Holly Singer, founder and president of HS Marketing, which serves the alternative investment community. Warning that the new found marketing freedom also carries increased responsibilities, Singer offers five tips for fund managers as they enter the new arena of public communication. Among them: plan holistically, be selecting, and leverage multiple channels. Notes Singer, “The open floodgates resulting from a less restricted marketing environment are likely to increase the challenge of getting heard above the noise.” FINalternatives