Vega Asset Management | Ravinder Mehra | Hedge Fund Notes

Vega Asset Management

Vega Asset Management | Hedge Fund Notes

Below please find the Hedge Fund Tracker Details for Vega Asset Management

Resource #1: Vega Asset Management holds a place as one of the largest hedge-fund firms all over the world. Its alliance with Spanish bank Banco Bilbao Vizcava (BBVA), which is second largest bank of Spain, resulted into joint venture i.e. Proxima, of worth $3 billion in the year 2006. This venture was meant to support to startup managers in alternative investment industry worth $1 trillion.

From the time of its foundation in 1996, Vega has established itself as one of the most substantial and renowned managers in the alternative investment industry. It has its offices in Madrid, London and New York. More than 500 institutions across the globe make investments in Vega. source

Resource #2: Ravinder Mehra laid the foundation of Vega Asset Management in the year 1996 with the initial investment of just $25 million. Thus it is evident that Vega Asset Management background is not very old. Their target was the middlemen of the hedge-fund world. These middlemen were recognized groups of professionals who had wealthy investors and they used to remain in search for the next hot hedge fund. Consequently, by the year 2004 Vega had established its offices in Madrid, London and New York and soon it had hold over more than $12 billion. Thus, it acquired the designation of the largest fund in Europe and began to be counted as one of the biggest funds in the world.

Mr. Mehra made sure that the investors were getting what they wished to have and thus rose to prominence. India is the birthplace of Mr. Mehra and he had shown his marvelous trading at Citigroup Inc. and HSBC Holdings PLC before he became a part of Spanish bank Banco Santander Central Hispano in the year 1990. It was in 1996 that he launched his first Vega fund with his coworker Robert Slutz. Within the time span of 2 years, Vega formed its roots with seed capital from Santander. source

Resource #3: It seems that all this talk of the Madrid-London-New York hedge fund Vega Asset Management possibly being down to their bottom billion has caught their attention. It certainly has caught the attention of Vega’s investors. After a few days of refusing to disclose how much they have left in their coffers, it seems that Vega has decided it needed to be a little less reticent in order to avoid investor panic. We’re told they’ve written a letter to investors reassuring them that they haven’t lost quite as much as the rumors had it. source

Resource #4: The Vega Select Opportunities hedge fund, known for making bets on bonds, received redemption requests for as much as $400 million after falling almost 11 percent last month, investors said.

Vega Select started September with $1 billion of assets, down from $2.2 billion at the end of 2004, said two investors, who declined to be identified because the information isn't public. The fund, the biggest managed by Madrid- and New York- based Vega Asset Management LLC, has dropped almost 17 percent this year, hurt by losing wagers that bond prices would decline, according to a letter sent to the company's clients. source

Resource #5: As the Dow Jones Industrial Average climbs to record heights, many hedge funds are stumbling and more than ever are closing shop.

The latest to falter: Vega Asset Management. One of the world's largest hedge funds a few years ago, Vega has suffered losses from a bad bet against U.S. bonds, and is now down roughly 75% from its peak two years ago to about $3 billion in assets. The firm says it has no plans to cease operations. source

Resource #6: Ravinder Mehra built a hedge-fund empire on smart trades and savvy marketing. But sudden losses are exposing deep cracks in that empire's foundation.
The 48-year-old Mr. Mehra, for many years considered among the top traders in global bond and currency markets, launched Vega Asset Management in 1996 with just $25 million. Mr. Mehra and his team wooed the middlemen of the hedge-fund world, a rising group of professionals who represent wealthy investors and search for the next hot hedge fund. source

Resource #7: Heard on the Street: Vega Asset Management's Mehra: "If you join Vega and dine with me you will enjoy a lot of fine wines, I have a hell of a cellar"

And lots of investors did join him. But they've lost so much money that they've been deserting in droves: Vega Asset Management got the WSJ 'Heard on the Street' treatment today. The article talks about investor withdrawals that have been much publicized over the past couple of weeks -- not much new ground broken in that department; the firm now manages roughly $5 billion down from its $12 billion peak. But there some noteworthy quotes that really leads one to question the firm's grasp on reality:

"You're only as good as your last trade in this business, and on that basis I am awful," Mr. Mehra says. "We deserve to be punished if we don't perform; we haven't met our objectives for two years." source

Resource #8: VEGA Asset Management, once the world’s largest hedge fund manager, is being sued by a former trader for breach of contract.

Michael Hall, who worked at Vega in Madrid for three years, claims in court documents that part of his earnings were withheld for a deferred compensation programme that never existed.

Deferred compensation is a tactic commonly used by banks and hedge funds to lock staff in for a set period.

Mr Hall, who earned $1.6 million (£872,000) last year, claims that the company owes him $790,000. He alleges that he joined Vega to manage part of its Relative Value fund, and was led to believe that the company would later set up a fund for him to manage.

According to documents filed at the High Court, Ravinder Mehra, Vega founder, allegedly promised at a dinner for the hedge fund’s traders to set up the fund for Mr Hall. source

Resource #9: Vega, run by Ravinder Mehra, was one of the world's fastest-growing hedge fund firms a few years ago. Sporting a record of consistent monthly gains, the firm pulled in $12 billion in assets. However, losses in 2004 and 2005 sparked big redemptions by some investors. This year, Vega's main Select Opportunities fund was down more than 15% through the end of November as trades based on the firm's interest-rate outlook went awry. Assets under management have more than halved from their peak. source

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