Hedge Funds Do Not Always Suffer in Volatile Markets

The business times online recently ran an article which is of the variety that keeps me motivated to keep writing in this hedge fund blog. Here is what they wrote with my insert comments:

Hedge funds suffer in volatile markets

Hedge funds worldwide are heading for their worst monthly performance in almost ten years amid signs that the credit crunch is claiming fresh victims across the investment markets.

Industry experts (which experts? There are none mentioned here) predict that there will be a shakeout of the hedge fund industry this year, with a rash of collapses among funds with less than $10 billion under management (There are only 50 hedge funds with over $10B in assets representing just .5% of the total hedge fund industry. There will always be some hedge funds collapsing within this 99.5% section of the industry).

Sources (un-named) said that last week's stock market volatility would have hit some managers hard, raising question marks about their reliance on equity strategies. Other managers would have made substantial profits despite the market storm, they said.

“The next few months will sort the men from the boys. January has asked some big questions, as no one was predicting the market movements of last week,” one prime broker said. “But plenty of hedge funds are making money in the current environment, even as there are those making losses."

Maybe I'm just being nit-picky here and have spent too much time reading hedge fund news and articles but it seems un-justified to say that hedge funds do poor through periods of volatility when as a group they crushed many benchmarks last year riding through the late summer and early fall volatility. I will admit I haven't looked at industry-wide #'s this past week but I think it is important to keep in mind just how many hedge funds are out there with less then $10B in assets under management, that is pretty much the whole industry. Most mainstream news focuses on the top 50-200 hedge funds out of a sea of 10,000-12,000.

- Richard

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Related Terms: Hedge Fund Volatility, Hedge Funds in Volatile Markets, Volatile Hedge Funds, Hedge Fund Mangers and Volatility, Hedge Fund Investment Volatility, Hedge Fund Investing Volatility

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Middle East Sovereign Wealth Funds

Middleast Sovereign Wealth Funds

Resource thanks to Forbes and the business development consultant Kim Chinn - Mcchin.biz

- Richard

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Related Terms: Middleeast sovereign wealth funds, Middle East Sovereign Wealth Funds, Sovereign Wealth in the Middle East, Sovereign Wealth Groups in Dubai, Dubai Sovereign Wealth Funds, Abu Dubai Investment Authority, Dubai International Capital, State General Stabilization Fund, Kuwait Investment Authority, Qatar investment authority

Link to This Resource: Middle East Sovereign Wealth Funds

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Hedge Funds Seeking to Stop Countrywide Merger

Hedge Funds and Countrywide Merger

SRM Global Hedge Fund, founded by Jonathon Wood, is seeking to stop the merger between Bank of America (BAC) and Countrywide Financial (CFC). In a statement released by SRM, a company spokesperson said: "We strongly believe that the terms of the proposed merger with Bank of America are contrary to the interests of the Company's shareholders."

SRM Global filed a Schedule 13-D with the SEC today. The company claims that the book value of the shares of CFC are $20.00 a share as of December 31, 2007. SRM owns 5.19% of Countrywide. They would receive 0.1822 shares of B of A for every share of CFC they own. The SEC filing indicates that the company may engage the boards of directors of the companies in discussions regarding the proposed merger.

As soon as I saw this story, I was reminded of Bob Barnard 's Post on Hedge Funds Using Litigation to Exert Influence over Companies. By filing this SEC 13D, SRM is indicating its intent to stop the deal with Bank of America. Will SRM resort to litigation?

If SRM is not satisfied by its talks with management, it may choose to resort to the courts for reprieve (this is pure speculation on my part based on Bob's earlier post). If they decide to resort to litigation, they will likely file a shareholder's derivative suit against countrywide and seek a preliminary injunction and temporary restraining order to stop the deal.It is clearly too early to tell, but this might be a foreshadowing of a few of the hurdles B of A will have to overcome in order to complete the merger.

- Amir Shaikh (Guest Contributor and blogger at OverHedged)

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Link to This Resource: Hedge Funds Seeking to Stop Countrywide Merger

http://richard-wilson.blogspot.com/2008/01/hedge-funds-seeking-to-stop-countrywide.html

Hedge Funds and Web 2.0

Hedge Funds 2.0

Social Media and Web 2.0 trends are affecting all industries, including hedge funds...

Web 2.0 is the term coined to describe websites that contain user interaction or user content contribution abilities. These websites include blogs or weblogs, forums, online communities and interactive "wiki-like" pages. The hedge fund industry is starting to embrace these changes at a rapid pace. Sites like the Albourne Village, Linkedin.com, Hedgeco and investment blogs such as this hedge fund blog are seeing rapid increases in traffic.

If they are not familiar with them already forget all of the technical terms used above, the important reason to get why these websites are successful are the relationships fostered through them. Being able to participate within a community online create more of a sense of ownership and trust than one gets from viewing a stale corporate advertisement-like website. This trend is just now getting off of the ground and becoming mainsteam within relatively sophisticated areas of business such as alternative investments.

Thanks to Blogburst here are some interesting stats on blogs:

+ Over 57 million Americans read blogs

+ 89% of companies surveyed say they think blogs will be more important in the next five years

+ 22 of the 100 most popular websites in the world are blogs

If you are looking for more online community-like experienes you might want to visit my Hedge Fund Message Board, join the Hedge Fund Group (HFG), visit Hedge Funds Career.com or register with Hedgeco. HedgeCo offers community profiles, hedge fund manager blogs and social bookmarking features. HedgeCo is light years ahead of others in creating a more interactive business online, they are a model of what is to come and others will be emulating them as they become even more popular with investors and consultants.

Over the next quarter I am launching two new hedge fund social media websites. If you would like to inter-connect our projects please shoot me an email. Also, If you are looking to start your own investment or hedge fund blog and need some help let me know and I will help you start off on the right foot.

- Richard

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Related Terms: hedge fund blog, hedge fund blogs, hedgefund blog, investment blog, alternative investment blog, hedge fund web 2.0 trends, hedge funds and social media

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http://richard-wilson.blogspot.com/2008/01/hedge-funds-and-web-20.html

Hedge Fund Taxation

With all of the tax issues flying around regarding hedge funds and carried interest, etc. I thought I would post this note which 30% of you have probably already seen at one point or another. It is very relevant to hedge funds, and thousands of hedge fund managers will leave America if taxes increase by too much.
_________________________________________________

Why should we give tax cuts to the hedge funds?

Let’s put tax cuts in terms everyone can understand. Suppose that every day, ten men go out to dinner. The bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So that’s what they decided to do.

The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement, until one day the owner threw them a curve.“Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily meal by $20.”

So now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes. The first four men were unaffected; they would still eat for free. But what about the other six? How could they divide up the $20 windfall so that everyone would get his fair share?

The six men realized that $20 divided by 6 is $3.33. But if they subtracted that from everybody’s bill, then the fifth and sixth man would each end up being paid to eat their meal.The restaurant owner suggested it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid $0 (100% savings).
The sixth now paid $2 instead of $3 (33% savings).
The seventh now paid $5 instead of $7 (28% savings).
The eighth now paid $9 instead of $12 ( 25% savings).
The ninth now paid $15 instead of $18 (17% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to eat for free. But once outside the restaurant, the men began to compare their savings.

“I only got a dollar out of the $20,” declared the sixth man. He pointed to the tenth man, “but he got $10.” “Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more than me.” “That’s true!” shouted the seventh man. “Why should he get $10 back when I only got $2? The wealthy get all the breaks!” “Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor.”

The nine men surrounded the tenth man and beat him up.

The next night the tenth man didn’t show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money among them to pay even half the bill.

The people and firms which pay the highest taxes get the most benefit from a tax reduction. Tax hedge funds too much, attack them for being wealthy, and they just may not show up at the table anymore

- Richard

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http://richard-wilson.blogspot.com/2008/01/hedge-fund-taxation.html

Warrant Arbitrage

Warrant Arbitrage Strategy

Warrant arbitrage strategies originated within the European markets and it combines a blend of more traditional option pricing calculators together with practical fine tuning to identify warrant price anomalies on a volatility basis, or warrant prices have broken through their relative historic relationships with the underlying stock price.

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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http://richard-wilson.blogspot.com/2008/01/warrant-arbitrage.html

Retail Hedge Funds

Interesting article here by the Financial News on hedge funds being offered to broader retail channels in Europe. The European Commission has been relaxing trading restrictions on open-ended funds in the EU to increase the fund options available to the general public. These products have no daily liquidity, can use leverage and are allowed to have large cash positions. They are not technically classified as retail products but they are being used within traditional retail distribution channels.

I don't see a high percentage of hedge funds jumping on this bandwagon unless they are already running a long only portfolio or have a lot of current assets coming from a retail channel. The US hedge fund managers who now offer funds that meet these new European requirements include:

- Richard

Permanent Link: Retail Hedge Funds
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Related Terms: Hedge Fund Products, Retail Hedge Funds, Hedge Fund Retail Channel, Hedge Fund Retail Products, HedgeFund Products, Hedge Funds in Europe, EU Hedge Funds, Retail Hedge Fund, American Hedge Funds, US Hedge Fund Managers, Hedge Fund, Retail Hedge Funds, Retail Hedge Fund

Link to This Resource: Retail Hedge Funds

http://richard-wilson.blogspot.com/2008/01/retail-hedge-funds.html

Zero Coupon Bonds

A Zero coupon bond (also known as a discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or so-called "coupons," hence the term zero-coupon bond. Investors earn interest via the difference between the discounted price of the bond and its par (or redemption) value. Examples of zero-coupon bonds include U.S. Treasury bills, U.S. savings bonds, and long-term zero-coupon bonds.In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures.

Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond. Zero coupon bonds may be long or short term investments. Long-term zero coupon maturity dates typically start at ten to fifteen years. The bonds can be held until maturity or sold on secondary bond markets. Short-term zero coupon bonds generally have maturities of less than one year and are called bills. The U.S. Treasury bill market is the most active and liquid debt market in the world.

Definition Source: Wikipedia

I get several emails a week from individuals looking for definitions or strategy explanations. To answer these questions I will try to post a definition of a word that is used often in the hedge fund industry.

Read dozens of additional articles like this within the guide to Hedge Fund Terms.

- Richard

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Link to This Resource: Zero Coupon Bonds

http://richard-wilson.blogspot.com/2008/01/zero-coupon-bonds.html

Hedge Fund Databases | Database Products Review

Hedge Fund Databases

Hedge Fund Database Tips

Quick Links: Hedge Fund Marketing Tools

Anyone who has the ability to successfully navigate the many channels of capital within the hedge fund industry is worth their weight in gold (and that’s rising every day). There are two major components of marketing and selling a hedge fund which each take constant attention and refining.

Understand the DNA of the many distinct distribution channels open to hedge funds for raising capital and
Having an electronic hedge fund of fund of hedge fund database of the right people to call on within those channels.

While some people develop their own databases from scratch this is often a long painful road with many days spent leaving voicemails with firms that have gone out of business, merged, switched investment focus or charge too high of fees to work with. This has led to many hedge funds investing in fund hedge fund databases that are automatically updated with half a dozen pages of information on fees, structure, management information, etc. This trend with hedge fund databases goes along with the “outsource everything that is not our core competence” model that many both emerging managers and $1B+ players have taken.

9 Fund of Hedge Fund Database Tips

If you need a list of hedge fund of funds or are thinking of purchasing a fund of hedge fund directory or database here are my top 9 tips:

Take the time to call or at least email the firm who offers a fund of hedge fund database, these will sometimes be referred to as fund of hedge fund or fof directories.
Only work with well known, reputable firms that specialize in providing hedge fund databases or hedge fund of fund databases. Avoid small shop fly-by-nighters at all costs
Take the time to really get familiar with the information provided within the database, ask for a sample of what the information will look like. It really is an investment that could save you literally thousands of hours IF you pick the right hedge fund database for your business model. See a Hedge Fund of Fund of Hedge Fund Database Sample.
Ensure that the database is updated at least once a quarter, contact details and firm information gets old very quickly.
Expect to pay $750-$8,000 for a high quality hedge fund database, many cost around $2,800 while others can cost up to $30,000/year. Be sure and know the trade-offs of buying a physical database versus subscribing to one online. If you don't have a hard copy of the data in Excel or Access format you may not be able to use it once a time-based subscription expires. For some firms this is fine, for others it would be a costly mistake.
Make sure the hedge fund database you use is compatible with your systems. Do you use SalesForce? Act? Goldmine? Excel? Word?(lord help you)
While you are kicking the tires of your potential new hedge fund database make sure it has complete information on a firm. You don’t want to call a firm asking if you can send over your PowerPoint presentation only to find out they are really a competitor or a division within another firm you called that same day.
Don’t steal a database. This may sound obvious, but it is common for employees to copy parts of a database for later use or use some other un-ethical means of obtaining database details. Don’t, it is not worth it. Always take the high road and you can stand behind every action you have ever taken.
This list only contains 9 tips instead of 10 because this one is worth more than the rest combined. Ask hard questions when you are buying fund of hedge fund database. Ask how often your database details will be updated. Ask exactly how many hedge funds are updating their information. Some databases will say that they have details on 9,000 hedge funds while the reality is that some of them haven't updated their information in 4 years...make sure all of the data is being updated at least once a year.

Let me know if you have any extra tips you think I should add to this list. You may comment below, append this list within your own blog or email me at Richard@RichardCWilson.com. If you are interested in buying a fund of hedge fund database they are offered by Preqin, Capital Hedge and Barclays.

Interested in hedge fund marketing? Read dozens of more hedge fund marketing & sales articles along with details on third party marketing within the Hedge Fund Marketing Guide.

Related Pages:

1. Preqin Hedge Fund Investor Databases
2. Barclays Comprehensive Global Hedge Fund Database
3. CTA Database
4. Capital Hedge Investor Databases
5. Fund of Fund Database
6. Hedge Fund Database

7. Master Hedge Fund Contact Database

Related Terms: hedge fund databases, fund of hedge fund databases, fof databases, hedge fund of fund database, Database of Hedge Funds, CTA Database, hedge funds database, hedge funds databases, hedgefund database, hedge fund investor database, fund of hedge funds, hedge fund investors, hedge fund investor, hedge fund investor list, list of hedge fund investors, list of hedge fund of funds, fof manager list, hedge fund of fund managers, hedge fund fund of funds, fund of funds hedge funds
Disclaimer: While these tips are my original ideas based on my experience in raising assets for money managers I have an ongoing business relationship with Barclays. This was created because 1) their database can be downloaded to your computer in many formats 2) their database is reasonably priced and I would buy it for my own work 3) their database is updated much more often than some of their competitors. Learn more about their products here

Link to This Resource: Hedge Fund Databases | Database Products Review

http://richard-wilson.blogspot.com/2008/01/fund-of-hedge-funds-database.html

Alpha

Measures the value that an investment manager produces, by comparing the manager's performance to that of a risk-free investment (usually a Treasury bill). For example, if a hedge fund had an alpha of 1.0 during a given month, it would have produced a return during that month that was one percentage point higher than the benchmark Treasury. Alpha can also be used as a measure of residual risk, relative to the market in which a fund participates.

Definition Source: Hedgeco

Want to learn more?

+ Alpha Misconceptions & Trends
+ Whiite paper on Alpha and Portable Alpha

Read dozens of additional articles like this within the guide to Hedge Fund Terms.

- Richard

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http://richard-wilson.blogspot.com/2008/01/alpha.html

Arbitrage Investment Strategy

Arbitrage Investment Strategy Definition

Arbitrage is a investment approach that aims at exploiting price differentials that exist as a result of market inefficiencies. Arbitrage plays typically involve purchasing a security in one market, while selling an instrument with similar performance characteristics in another market -- earning returns that far exceed the risk incurred.

Arbitrage is a pretty broad term that is tossed around often and technically could describe a wide swath of strategies in the hedge fund industry. You may have heard of convertible arbitrage, index arbitrage, dividend arbitrage or bond arbitrage before. Convertible arbitrage is one of the most popular forms, it is where a hedge fund manager or trader purchases convertible securities, which are usually bonds. They then short a usually preset portion of the equity risk by shorting the underlying equity security. Leverage is often applied within these types of arbitrage portfolios.

Term Source: HedgeCo

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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Related Terms: Arbitrage, Risk Arbitrage, Convertible Arbitrage, arbitrage opportunity, what is arbitrage, merger arbitrage, arbitrage pricing strategy, index arbitrage, volatility arbitrage, arbitrage rebate, bond arbitrage, interest arbitrage, tax arbitrage, arbitrage strategy, arbitrage strategies, options arbitrage, dividends arbitrage, equity arbitrage, arbitrage funds

Picture courtesy of The Stock Group

Link to This Resource: Arbitrage Investment Strategy

http://richard-wilson.blogspot.com/2008/01/arbitrage-investment-strategy.html

Hedge Fund Standards Board (HFSB)

You might have already heard of the Hedge Fund Standards Board (HFSB). They are an organization built from the pocket change of 14 leading hedge funds which are mostly based in London. The trustess for the Hedge Fund Standards Board include:

Sir Andrew Large - Interim Chairman
Michael Alen-Buckley - RAB
Michael Cohen - Och Ziff
Christopher Fawcett - Chairman, AIMA
Stuart Fiertz - Cheyne Capital
Stanley Fink - Man Group plc
Michael Hintze - CQS
Klaus Jäntti - Brummer
Nagi Kawkabani - Brevan Howard
Paul Marshall - Marshall Wace
Jeffrey Meyer - Gartmore
Bernard Oppetit - Centaurus-Capital
George Robinson - Sloane Robinson
Manny Roman - GLG
Paul Ruddock - Lansdowne Partners
Rob Standing - LDFM

This group attempts to outline best practices that would increase the financial stability and reduce systematic risk within the hedge fund industry by suggesting best practices for all hedge funds to follow. The HFSB has just recently released its 144 page final report.

- Richard

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Related Posts: Hedge Fund Book, Hedge Fund, Top 100 Hedge Funds to Watch,
Related Terms: Hedge Fund Code of Ethics, Hedge Fund Best Practices, Hedge Fund Standards Board, HFSB, Hedge Fund Standards Board Final Report, Hedge Fund Standards Board Best Practices Report
Picture courtesy of World Atlis

Link to This Resource: Hedge Fund Standards Board (HFSB)

http://richard-wilson.blogspot.com/2008/01/hedge-fund-standards-board-hfsb.html

Sovereign Wealth Fund Code of Conduct

Sovereign Wealth Funds Code of Conduct

The Chairman of Standard Chartered warned yesterday that state-backed sovereign wealth funds should have to adhere to a code of conduct allowing more transparency and governance.

“Because sovereign wealth funds have become such important players, they have to behave impeccably,” he told the Financial Times. “Otherwise they’re irresponsible participants in the world economy.”

While this topic is soon to be discussed at the World Economic Forum some see the road of enforcing any type of code over sovereign wealth funds to be a long if not never-ending road to go down. The powers at be who want a code of conduct have no real power of these state governments and capital is in high demand by the very nations that are typically the most vocal in expressing their negative views of these foreign investments.

- Richard

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Related Posts: Sovereign Wealth Fund Debate Video, Sovereign Wealth Funds in the Middle East & Asia, Sovereign Wealth Funds,

Additional Resources:

Related Terms: Hedge Fund SWF, Sovereign Wealth Fund, Sovereign Wealth Funds, SWF, SWFS, Sovereign Wealth Fund Code of Conduct, Code of Conduct for Sovereign Wealth Funds
Full Article: FT
Picture courtesy of Standard Chartered

Link to This Resource: Sovereign Wealth Fund Code of Conduct

http://richard-wilson.blogspot.com/2008/01/sovereign-wealth-fund-code-of-conduct.html

Top 10 Hedge Fund Myths

There was an interesting article posted over the weekend by the Business Times Online this week entitled "Hedge Fund Managers, Lords of Lucre." The article discusses the general public's view of hedge funds and how they make money. The journalist who wrote the article uses several extreme examples while depicting the hedge fund industry, this is part of why I write in this blog. There are a lot of aspects about the hedge fund industry that would be hard or nearly impossible to learn by reading mainstream media sources on the subject. To help answer the question about who hedge fund managers are here is a list of what is not true.

Top 10 Hedge Fund Myths

Most hedge fund managers are billionaires
Hedge Funds are risky investment vehicles
The hedge fund industry in general is struggling and investors are taking their money out of these types of investments
The United States has the same access to hedge funds as other developed countries
Hedge Funds aren't performing as well as mutual funds or stock market indicies
It is very hard to get any job within the hedge fund industry
Hedge fund managers generally drive Ferrari's and live in extreme excess
It is hard to learn anything about what hedge funds do or even what strategies they use
Hedge funds blow up all the time
Most hedge funds manage billions of dollars of capital

Are you a hedge fund manager or consultant in the industry? Want to share a couple more myths that you often run into with clients or investors? Please comment below or email me at Richard@RichardCWilson.com and I'll post your ideas as well.

1.23.08 Post Update: A blog reader has contributed the following additional myths to this list:

11. Hedge fund managers are cowboys who enjoy hurting the markets
12. Hedge fund managers have some "secret" to trading the markets

13. Hedge fund managers have it easy and really don't have to work to hard (my favorite new addition to the list)

14. Hedge funds cause market volatility. and the obvious corollary – they prosper at the expense of the common investor.

- Richard

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Related Terms: Hedge Fund Myths, Hedge Fund Facts, Hedge Fund Industry Information, Hedge Fund Investment, Hedge Fund Terms, Hedge Fund Questions
Picture courtesy of firstrung

Link to This Resource: Top 10 Hedge Fund Myths

http://richard-wilson.blogspot.com/2008/01/top-10-hedge-fund-myths.html

List Directory of Hedge Fund Managers in Chicago IL Illinois

Hedge Funds in IL

List of Hedge Funds in Chicago IL

We have created this post in reply to the many emails we get requesting hedge fund lists for specific states or regions.

Below please find a link to a resources which provides you with a list of hedge fund manager contact details for the state of Illinois. Hedge fund managers within this list are based in Chicago and other areas within the state of Illinois.

Click Here: List of Hedge Funds in Chicago and State of Illinois

For additional regions which are covered by this same resource please see these links:

Tags: Hedge Fund Managers Illinois, IL Hedge Fund Contact List, IL Hedge Fund list, Lists of Hedge Funds in Chicago IL, Chicago Hedge Fund List, Directory of IL hedge fund managers

Link to This Resource: List Directory of Hedge Fund Managers in Chicago IL Illinois

http://richard-wilson.blogspot.com/2009/02/list-directory-of-hedge-fund-managers.html

List Directory of Hedge Funds in Massachusetts | MA Hedge Fund Lists

Hedge Funds in MA

List of Hedge Funds in Massachusetts

We have created this post in reply to the many emails we get requesting hedge fund lists for specific states or regions.

Below please find a link to a resources which provides you with a list of hedge fund manager contact details for the state of Massachusetts. Hedge fund managers within this list are based in Boston and other areas within the state of Massachusetts .

Click Here: List of Hedge Funds in Massachusetts

For additional regions which are covered by this same resource please see these links:

Tags: Hedge Fund Managers Massachusetts, MA Hedge Fund Contact List, MA Hedge Fund list, Lists of Hedge Funds in Boston MA, Boston Hedge Fund List, Directory of MA hedge fund managers

Link to This Resource: List Directory of Hedge Funds in Massachusetts | MA Hedge Fund Lists

http://richard-wilson.blogspot.com/2009/02/list-directory-of-hedge-funds-in.html

List Directory of Hedge Funds in New York | NYC Hedge Fund Managers

Hedge Funds in NYC

List of Hedge Funds in New York City

List Directory of Hedge Funds in New York | NYC Hedge Fund Managers

We have created this post in reply to the many emails we get requesting hedge fund lists for specific states or regions.

Below please find a link to a resources which provides you with a list of hedge fund manager contact details for the state of New York. Hedge fund managers within this list are based in Manhattan / New York City and other areas within the state of New York.

Click Here: ist of Hedge Funds in New York

For additional regions which are covered by this same resource please see these links:

Tags: Hedge Fund Managers New York, NYC Hedge Fund Contact List, NY Hedge Fund list, Lists of Hedge Funds in New York New York , Manhattan Hedge Fund List, Directory of NY hedge fund managers

Link to This Resource: List Directory of Hedge Funds in New York | NYC Hedge Fund Managers

http://richard-wilson.blogspot.com/2009/02/list-directory-of-hedge-funds-in-new.html

Directory List of Hedge Funds in Connecticut | CT

Hedge Funds in CT

List of Hedge Funds in Connecticut

We have created this post in reply to the many emails we get requesting hedge fund lists for specific states or regions.

Below please find a link to a resources which provides you with a list of hedge fund manager contact details for the state of Connecticut. Hedge fund managers within this list are based in Greenwich and other areas within the state of Connecticut.

Click Here: List of Hedge Funds In Connecticut

For additional regions which are covered by this same resource please see these links:

Tags: Hedge Fund Managers Connecticut , Hedge Fund Contact List, CT Hedge Fund list, Lists of Hedge Funds in Dallas Connecticut , Greenwich Hedge Fund List, Directory of Connecticut hedge fund managers

Link to This Resource: Directory List of Hedge Funds in Connecticut | CT

http://richard-wilson.blogspot.com/2009/02/directory-list-of-hedge-funds-in.html

List of Hedge Fund Managers in California CA San Francisco Los Angeles

Hedge Funds in CA

List of Hedge Funds in California

We have created this post in reply to the many emails we get requesting hedge fund lists for specific states or regions.

Below please find a link to a resources which provides you with a list of hedge fund manager contact details for the state of California. Hedge fund managers within this list are based in San Francisco, San Diego, Lost Angeles, Palo Alto, Northern California and Southern California.

List of Hedge Funds in California

For additional regions which are covered by this same resource please see these links:

Tags: Hedge Fund Managers in California, Hedge Fund Contact List, CA Hedge Fund list, Lists of Hedge Funds in CA, San Fransico Hedge Fund List, Directory of California hedge funds, hedge funds list

Link to This Resource: List of Hedge Fund Managers in California CA San Francisco Los Angeles

http://richard-wilson.blogspot.com/2009/02/list-of-hedge-fund-managers-in.html

Hedge Fund Group (HFG) Seeing Rapid Growth

Hedge Fund Group (HFG)

Hedge Fund Group Sees Rapid Growth

Some of you are members of and already know that this blog is connected to the Hedge Fund Group (HFG), a Linkedin.com networking group that shares advice, business leads and resources. The Hedge Fund Group (HFG) now has over 10,500 members. This group was just started 10 months ago now and is currently gaining 75 new members each day. Many members work within hedge funds and other are consultants, academics, students and investors. If you haven't already please join the Hedge Fund Group Group (HFG) by clicking here. Once you have joined please introduce yourself within the "New Member Introductions Thread" on HedgeFundMessageBoard.com.

Other threads you may be interested in keeping an eye on include:

Join The Hedge Fund Group (HFG)

The goal was to reach 15,000 members by the end of 2008 and it looks like we are well on track to do so. Once we reach 15,000 members the group will become much more organized and official with the launch of HedgeFundGroup.org.

We will continue to build our Board of Advisors which consists mainly of hedge funds and fund of hedge funds. We currently have 22 funds on the Board.
We will join forces with other hedge fund associations and law groups to hold networking events in 5 major cities where there is a high concentration of hedge funds.
We will select a couple of breakfast and lunch designations in New York where members can always mingle and meet others in a easy casual fashion.
A monthly newsletter will begin going out announcing industry-wide networking events regardless of whether they are organized directly through our group or not.
We will continue to develop the Chartered Hedge Fund Associate (CHA) Designation Program.
We are looking for additional ways that we could expand this group and make it more valuable for everyone involved. If you have some ideas please email them to Richard Wilson at Richard@RichardCWilson.com.
Regardless of where it goes I would like to always stress that the group is a place where everyone is welcome and advice is freely given for the benefit of the group or a group member. If you are looking to be close vested or spamy please keep moving along.

As always please feel free to reprint or forward this post along to anyone who might be interested in learning more about networking in the hedge fund industry.

- Richard

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http://richard-wilson.blogspot.com/2008/01/hedge-fund-group-seeing-rapid-growth.html

GAIM Conference

GAIM USA 2008 is just around the corner on January 21-24, 2008 at the Boca Raton Resort & Club, Florida. With over 900 industry leaders confirming their attendance so far, GAIM USA will once again be the largest gathering of hedge funds and their investors in the US and an event you won’t want to miss.

This year we have more asset allocators than ever before and more networking opportunities to provide you with the chance to mix and mingle with your colleagues. This means you will be attending The Event of the Year and you will have the opportunity to meet More Influential Asset Allocators and Top Performing Managers than at any other event in North America!

To market your event on this blog please email Richard@HedgeFundGroup.org. See the Hedge Fund Events & Seminars for upcoming events in the hedge fund industry.

- Richard

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http://richard-wilson.blogspot.com/2008/01/gaim-conference.html

African Hedge Funds

Articles on African Hedge Funds

The hedge fund industry in Africa is relatively small, there are only a few dozen funds located on the whole continent. One of my first jobs in the hedge fund industry was actually working on finding institutional investors for a South African based hedge fund of fund.

Nowdays institutions, sophisticated family offices and local high net worth individuals are taking the lead on investing in African based hedge funds. Many are looking to Africa more often as PEs in Asia expand and rumors of a "China bubble" have emerged. Many investors have settled on investing in African based hedge fund of funds as the nature of it usually provides a less volatile exposure to these frontier economies.

8 African Hedge Fund Articles

The Regulatory Environment for South African Hedge Funds
South African Hedge Fund Survey
Top Performing Hedge Funds in South Africa
South African Hedge Fund Index Launched
Africa/Asia Hedge Fund Report
Hedge Funds in Africa Conference Brochure (Good for finding names)
South Africa Hedge Fund Report
South Africa Hedge Fund Regulation Report

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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Related Posts: Family Offices, South African Hedge Funds

Related Terms: South African Hedge Funds, Africa Hedge Fund, Hedge Fund in Africa, South Africa Hedge Funds, South African Hedge Fund, Hedge Fund of Fund in Africa, Africa Hedge Fund of Fund

Link to This Resource: African Hedge Funds

http://richard-wilson.blogspot.com/2008/01/african-hedge-funds.html

Hedge Funds - Kings of the Jungle

Kings of the Jungle

Hedge funds set another record for 2007 growing assets by over 54% in 2007. Hedge funds now manage $1.87 trillion and they gained $194.5 billion in new assets in 2007 as compared to 2006 when $126.5 billion was raised. Hedge Fund Research also reports that Hedge Fund of Funds added $59.2 billion in assets this last year brining their total to $798.6 billion in assets under management.

“It was another record year for hedge fund when it came to attracting new assets in spite of the slower pace in the fourth quarter,” Kenneth Heinz, HFR president, said. “The trend in strategy allocations suggests investors are not chasing the best performers, and are anticipating continued opportunities in arbitrage and event-driven.”

Why does any of this matter? 80% of the stories you read about in the paper talk about who hedge funds are collapsing, committing fraud or losing money hand over fist. The reality is that this thriving industry brought in over 11% average returns in 2007 and it is growing by leaps and bounds above most of those same media companies predicting their demise. The hedge fund industry has a PR problem with only 3-4 public relations consultants in the industry and well over 12,000 hedge funds in existence who largely are not allowed to do any mass marketing.

Special thanks to Fintag for finding this article and for his comment in response to this large inflow of assets, "Would you expect it to be the other way round? Of course not. We are the kings of the jungle."

Read more articles like this within the Hedge Fund Performance Category of this hedge fund blog.

- Richard

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Related Terms: Hedge Fund Boom, Hedge Fund Asset Growth, Hedge Funds 2007, Hedge Fund Report 2007, Hedge Fund PR, Hedge Fund Fragmented Industry, Hedge Fund Article, Hedge Fund Inflow of Assets, Hedge Fund Marketing, Hedge Fund New Assets, Hedge Fund Growth Figures

Data Source: HFR

Picture Source: DreamsTime

Link to This Resource: Hedge Funds - Kings of the Jungle

http://richard-wilson.blogspot.com/2008/01/hedge-funds-kings-of-jungle.html

130/30 Hedge Funds See Rapid Growth

130/30 Hedge Fund Growth

Fina nci al News reports that the amount institutional assets allocated to 130/30 hedge fund strategi e s could grow 7 fold over the next 3 years to over $350 Billion. Another survey by Merill Lynch also took a stab at 130/30 growth figures and guessed that over $1 Trillion of both international and domestic institutional and retail assets will flow into these types of funds over the next 5 years. Finally, a third report from the well respected TABB Group predicts that 130/30 strategies will have up to $2 Trillion in international assets within two years. A high percentegage of these assets are expected to come from US pension plans, half of which are expected to invest in these more heavily in the years to come.

Dozens of small shops have created 130/30 strategies alongside large players such as UBS, Bear Stearns and ING. Is it too late to start a 130/30 hedge fund and take advantage of this growth? Experience would tell me no. There are lessons to be learned about how current 130/30 portfolio management teams are being constructed and how they have positioned themselves in the market.

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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Related Terms: 130/30 Fund Growth, active extension funds, active extension hedge funds, 130/30 Hedge Fund Growth, 130 30 Hedge Fund Growth Rate, 130 30 hedge fund manager, 130 30 funds, 130 30 fund information, 130 30 hedge fund investment

Link to This Resource: 130/30 Hedge Funds See Rapid Growth

http://richard-wilson.blogspot.com/2008/01/13030-hedge-funds-see-rapid-growth.html

Green Hedge Funds

Green & Socially Responsible Funds

Green and socially responsible investing has been growing steady and many predict the total market for green and socially responsible mandates just on the institutional level will be 3-4x where it is at right now. Many green hedge funds have been seeing strong returns and it is an area that is not yet over-crowded or dominated by large players. New York used to be the sole center for green hedge fund management but Europe, specifcally London is now gaining ground in this area of the industry.

Green hedge funds can range in strategies from screen for equities that only invest in "green businesses" to carbon trading, renewable energy credit trading, ethanol trading and emissions trading. Similar to many other hedge fund strategies green hedge funds are playing risk arbitrage and variations of long-term value and short term momentum growth plays to earn returns for their investors.

See what other hedge fund strategies made the top 5 hedge fund strategies list.

Want to read more on green hedge funds? Here is a good article on the subject.

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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Related Posts: Top 5 Hedge Fund Strategies, Litigation Hedge Fund Strategy, 130/30 Hedge Fund Strategy Definition, Hedge Fund Domain Names, Socially Responsible Investing

Related Terms: Green Investing, Green Hedge Fund Manager, Green Investment Manager, Green Hedge Funds, Socially Responsible Investing, Socially Responsible Hedge Fund, Socially Responsible Hedge Fund Manager, Hedge Funds that are Socially Responsible, Green Funds, Green Fund, Environmental Hedge Fund, Energy Hedge Fund, Carbon Trading Hedge Fund, Emissions Hedge Fund, Carbon Credit Hedge Fund Managers

Link to This Resource: Green Hedge Funds

http://richard-wilson.blogspot.com/2008/01/green-hedge-funds.html

130/30 Hedge Fund Resources

130/30 hedge funds are one of the fast growing strategies within the hedge fund industry. 130/30 hedge funds are like normal 100% long managers except they are allowed to short 30% of the value of the portfolio and then use those shorting proceeds to go an additional 30% long in the portfolio. The end results is a overall portfolio position of 130% long and 30% short.

The strategy has just recently been gaining more attention and if you are an investor, consultant or on the board of a investment group I thought you might be interested in reading more on 130/30 funds.

Let me know if you have found any other great resources.

Read more articles like this within my Hedge Fund Strategy Guide list of articles.

Additional Resources:

- Richard

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Link to This Resource: 130/30 Hedge Fund Resources

http://richard-wilson.blogspot.com/2008/01/13030-hedge-fund-resources.html

Hedge Fund Fees

You might guess that with new hedge funds being started each week that this type of competition would bring down their fees right? Not yet. The first hedge fund was said to be started in the 1960s and ever since they have gained more popularity through the 70s, 80s and 90s the “2 and 20” fee structure has virtually remained the same. Now that there are officially at least 10,000 hedge funds and in reality probably closer to 20,000 in existence, why hasn’t this fee structure become more competitive?

One reason is It is considered by most accredited investors that a hedge fund’s services are a high quality service. As a result, you can bet that the fees will not drop because this service is in such high demand (net inflows for the first 9 months of 2007 totaled $101.1 billion, up 9% year-over-year). The largest most successful hedge funds are not desperate for assets so they can afford to hold their ground at higher fee levels sometimes charging a 3% management fee and 35% performance fee. Some financial advisers and institutional consultants see hedge funds on the same level as star attorneys or expert open heart surgeons, not many people are going to haggle over price with them. Many who are on board with the reason to use hedge funds or alternative investments in a portfolio make investment decisions bases on the people, price, process and philosophy much more than a difference of 50-100 basis points in fees. One last reason why fees haven't moved much is when hedge funds lower their fees, this can sometimes be interpreted as a sign that the group is having problems, such as raising capital.

The one place where fees are starting to creep down is hedge fund of funds. There are so many of them in the market that all claim to provide that hard to get access to "closed managers" that some have reduced their overlay fees to attract new family office and retail channel clients. While I believe this trend will continue the large players probably won't come down much in 2008/2009.

- Richard Wilson & John Lee

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Link to This Resource: Hedge Fund Fees

http://richard-wilson.blogspot.com/2008/01/hedge-fund-fees.html

Hedge Fund Investors

Hedge Fund Investor Types

Interested in hedge fund marketing? Read dozens of more hedge fund marketing & sales articles along with details on third party marketing within the Hedge Fund Marketing Guide.

Sometimes I get to speak with other third party marketers and hedge fund marketing professionals about their experiences in working with hedge fund investors. What I find is that overall most marketers experiences are very similar while each investor is different just as each due diligence process within different firms vary. Hedge fund investors typically fall into one of these four categories:

The “Follow Me” Hedge Fund Investor

Most of these investors make up your pool of family, friends, co-workers, and people you interact with regularly. Usually, these people don’t understand how to perform the necessary due diligence in making a decision to invest. This group also tends to make assumptions. For example, if a manager holds a degree from Harvard or has experience from a top financial firm, this aspect alone would persuade investors to follow suit ignoring the probability of fraud. In addition, they heavily rely on personal acquaintance and recommendations from either you or someone you may know. If you ask for a check, and they trust you, this group will most likely give one to you.

The “Send Me a Prospectus” Hedge Fund Investor

This group is a bit more sophisticated by conducting a minimum amount of due diligence into the manager’s performance. Once they are satisfied with the performance on paper, they will meet with and usually shower the manager with questions regarding every aspect of the fund, including returns, performance, strategies, and risks. What is written and spoken by the manager is taken into faith and the information is not properly verified by the investor.

The “Investigating” Hedge Fund Investor

This type of investor is sometimes considered a nuisance by busy professionals who might caught off-guard by their questions. Not only will the investor keep the manager’s number on speed dial, the investor will perform the due diligence above and beyond the type mentioned above and also go far as to understanding the entire operation of the fund as if he or she were the manager. This type would also interview members of the manager’s staff. The investor would also look into the balance sheet, cash controls, reporting, and other functions, not directly related to performance. Nuisance?

The “Independent” Hedge Fund Investor

The due diligence collected by this investor is thoroughly reviewed independently. Investors in this category know that independent opinions are extremely important. They will contact the auditor, custodian and administrator in addition to the SEC and/or state securities agency. They won’t sign on the dotted line until they are satisfied independently verifying everything that matters, including, assets under management, returns, and even a year end audit. They fully understand the risks that are involved.

Nobody likes to be put in a box, but it is important to realize that the types of investors can vary widely so the array of marketing materials you have should include brief one pagers to very detailed institutional-quality PowerPoint presentations and third party analysis for those most scrutinizing parties. My experience has been that marketing material first built to the highest standard and then summarized into smaller "dumbed down" pieces later can be very effective and versatile.

Read dozens of additional articles like this within the guide to Hedge Fund Terms and Definitions.

- John Lee & Richard Wilson

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Related Terms: Hedge Fund Investors, Hedge Fund Investor, Hedge Fund of Fund Investor, Hedge Fund Group Investor, Investors in Hedge Fund, Hedge Fund Investor Restrictions, Hedge Fund Investor Types, Hedge Funds Investors, Hedge Fund Investor Details, Investors of Hedge Funds, Find Hedge Fund Investors, Hedge Fund Marketing, Hedge Fund Sales, Hedge Fund Third Party Marketing

Link to This Resource: Hedge Fund Investors

http://richard-wilson.blogspot.com/2008/01/hedge-fund-investors.html

Sovereign Wealth Fund Debate Video

Sovereign Wealth Funds Debate

Here is a great video discussion of sovereign wealth funds. It is about 6 minutes long and discusses the whether sovereign wealth funds and their investments in US banks, hedge funds and private equity groups are good or bad for Wall Street and America. The video is not of premium quality but the interview is only 5 days old and gives a good introduction to the issues being discussed around sovereign wealth funds.

Direct Hyperlink to this video: http://www.youtube.com/watch?v=uxKpg--Rxjg

I tend to agree with Eli Lehrer in this interview, if foreign governments want to spend their tax money on propping up our economy that is great for us. More intertwined economies gives other countries incentives to build more positive foreign relations and if by some chance we do ever go to war with them their ownership risk is hedged by our ability to seize their assets on these investments.

What is your opinion on Sovereign Wealth Funds? You can always share your opinion on this post or any other by using the comment form below.

- Richard

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Link to This Resource: Sovereign Wealth Fund Debate Video

http://richard-wilson.blogspot.com/2008/01/sovereign-wealth-fund-debate-video.html

Top 10 Hedge Fund Trades of 2007

Top 10 Hedge Fund Trades

The top 10 Hedge Fund Trades of 2007 as written up by Dow Jones.

Hedge Fund Trade #1: Freeport McMoran Copper & Gold
Hedge Fund Manager: Atticus ManagementProfit: $800 million

The New York-based hedge fund hit the mother lode for the second year in the row, scoring paper gains of at least $800 million through its holding in the mining giant.

Hedge Fund Trade #2: MBIA Inc., Ambac Financial
Hedge Fund Manager: Pershing Square Capital ManagementProfit: $500+ million

William Ackman’s longtime gamble that bond insurance companies would run into trouble finally paid off this year as mortgage loans to high-risk borrowers started going bad and credit markets stumbled.

Hedge Fund Trade #3: Foster Wheeler
Hedge Fund Manager: Tontine PartnersProfit: $426 million

Sage investments in engineering and construction companies helped cushion the Greenwich, Conn.-based firm’s losses in finance and housing.

Hedge Fund Trade #4: Union Pacific, Other U.S. Railroads

Hedge Fund Manager: Atticus ManagementProfit: $387 million

A counterintuitive bet in a sector that typically slows down as aneconomic cycle peaks paid off handsomely for Timothy Barakett’s shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.

Hedge Fund Trade#5: First Solar

Hedge Fund Manager: Maverick CapitalProfit: $350+ million

After a stormy 2006, Maverick rebounded in 2007 thanks to its investments in solar and alternative energy. First Solar was one of the sector’s hottest performers.

Hedge Fund Trade #6: Crown Castle International, American Tower

Hedge Fund Manager: Glenview Capital ManagementProfit: $319 million

Larry Robbins’ New York-based hedge fund got all the right signals when it targeted the wireless towers sector. The trades crowned a successful year that saw the firm up 24%.

Hedge Fund Trade #7: CF Industries

Hedge Fund Manager: Dawson-Herman Capital ManagementProfit: $160 million

Ethanol companies suffered this year, but taking a long view of the biofuels sector helped the New York-based firm cultivate a neat return from the fertilizer company.

Hedge Fund Trade #8: Onyx Pharmaceuticals

Hedge Fund Manager: Meditor Capital ManagementProfit: $155 million

Having booked some profits in Onyx at the beginning of the year, the UK-based firm held on to the company’s shares to benefit from a further jump when its cancer drug beat analysts’ estimates.

Hedge Fund Trade #9: Chipotle Mexican Grill

Hedge Fund Manager: Tremblant Capital GroupProfit: $95 million

When other firms were asking for the check, Brett Barakett went back for seconds in this fast-food chain that promises healthy fare and delivered a healthy profit for the $4 billion-plus firm.

Hedge Fund Trade #10: United Therapeutics Corp.

Hedge Fund Manager: Shunway Capital PartnersProfit: $73 million

The New York-based firm gradually increased its stake in United Therapuetics during the year, gaining big-time on good news about the company's pulmonary hypertension drug.

Read more articles like this within the Hedge Fund Performance Category of this hedge fund blog.

- Richard

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Article Source: Dow Jones & FT

Link to This Resource: Top 10 Hedge Fund Trades of 2007

http://richard-wilson.blogspot.com/2008/01/top-10-hedge-fund-trades-of-2007.html

Hedge Fund Strategies

Top 5 Hedge Fund Strategies

There are some hedge fundstrategies with over $50 or $100 billion dollars already being put to work while others are only employed by a small handful of firms. In 5-7 years there will be some new hedge fund strategies that will take hold and propel small emerging hedge fund managers into the world of $1B + hedge funds.

Here is a list of what I see as the top 5 hedge fund strategies that will explode in popularity over the next 5-7 years:

130/30
Carbon Credit Trading
Socially Responsible & Green Hedge Funds
Litigation Funding
Intellectual Property (Patents, Domains and Licensing Rights)

Read dozens of more articles like this within my Hedge Fund Strategy Guide.

- Richard

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Related Terms: Hedge Fund Strategies, Top Hedge Fund Strategies, Top Hedge Fund Strategy, Top Hedge Fund Manager Strategies, hedge fund strategy details, hedge fund strategy examples, top 10 hedge fund strategies, hedge fund strategies list, hedge fund strategies descriptions, hedge fund strategies explanations

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http://richard-wilson.blogspot.com/2008/01/top-5-hedge-fund-strategies.html

Distressed Debt Securities

Hedge Funds investing in distressed securities, typically purchase debt, equity or trade claims (claims held by suppliers owed for goods or services they’ve provided) of companies facing financial distress or already in default. Due to the markets inability to truly value these securities and the inability of many institutional investors to own below grade investment securities, they can often be purchased at deep discounts. Another reason for the deep discounts is the desire of banks to remove bad loans from their books and use the cash for other interest paying investments. Banks, along with holders of trade claims, are not in the business of restructuring companies and the sooner that they are able to rid themselves of non performing assets, the sooner they can get back to concentrating on their core businesses.

Forms of distressed securities include high yield bonds, bank loans, busted convertible bonds, public and private senior and junior debt, distressed equity securities, distressed real estate and non-performing loans.

The general strategy for investing in distressed securities that many hedge funds use is to purchase the securities, hold them through the restructuring process and then sell them once they have appreciated. The success of the strategy is dependent on the ability to assess the probability that specific restructuring techniques will be successful in order to turn an under performing company around.

- Colin Moses (Guest Contributor & Hedge Fund Group Member)

Read dozens of additional articles like this within the guide to Hedge Fund Terms and Definitions.

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Article Sources: Ehec Risk, Magnum, HedgeFund Index
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Link to This Resource: Distressed Debt Securities

http://richard-wilson.blogspot.com/2008/01/distressed-debt-securities.html

Hedge Fund Widget / Blidget

Hedge Fund Widget

I ha

ve just recently created a hedge fund widget that includes all of my blog content. For those of you who do not know what a widget is, it is simply a small dynamic package of code that can be installed or pasted into almost any website. To see what the hedge fund widget looks like please visit my hedge fund forum that was created for the Linkedin.com Hedge Funds Group. Scroll to the very bottom of the forum and you will see my blog content within a widget box.

Business widgets and more specifically investment widgets have really exploded in popularity over the past 3 years with several hundred now available for use on any numbers of websites. Widgets can be installed on:

Blogs
Websites
Facebook Profile Pages or Group Pages
Myspace Profile Pages or Comments
Message Board Forum Threads/Posts

For example if you took my hedge fund widget nd put it on your personal website or facebook page it would update itself automatically each time I write a new blog post giving your site visitors new hedge fund articles to read every day. If you want to know more about widgets you should visit Widgetbox.

Note: Widgets used in blogs are sometimes called Blidgets. In general widgets and blidgets sound more complicated than they really are, whether you keep it or not feel free to try out the code above just to see how it works on your site.

Read dozens of additional articles like this within the guide to Hedge Fund Terms and Definitions.

Hedge Fund Foundations

Hedge Fund Foundations List

Many hedge funds have setup foundations to help manage their money and make sure their donations are put to use as they see fit. There over 50 of these hedge fund foundations up and running with over $4B in total assets under management. Their numbers and influence will continue to grow as the hedge fund industry surpasses the $3 trillion in total assets under management mark. My Paulson and company will start a foundation in 2008...

The Top 5 US Hedge Fund Foundations Include:

Open Society Institute ran by George Soros
Robertson Financial ran by Julian Robertson
The Simons Foundation ran by Jim Simons
Robert W. Wilson Charitable Trust ran by Robert Wilson
T. Boone Pickens Foundation ran by Boone Pickens

Another noteworthy hedge fund foundation is the Robin Hood Foundation which has received a lot of recent press attention and was started by Paul Tudor Jones of Tudor Fund Management.

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- Richard

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Story Source: HedgeFundIntelligence

Link to This Resource: Hedge Fund Foundations

http://richard-wilson.blogspot.com/2008/01/hedge-fund-foundations.html

Hedge Funds and Media Exposure

Hedge Fund Media Exposure & PR

Hedge funds are bared from advertising or marketing themselves to the
general public but they are often turning up in news stories. A report by Walek & Associates claimed that hedge funds are mentioned in news articles over 100 times day, and over 39,000 times/year. This analysis was using data from 2005 and it does not include electronic newsletters or blogs. With 2008 numbers and the inclusion of blogs I would guess that hedge funds are mentioned in close to 1,200 articles each day.

Armel Leslie from Walek & Associates recommends that hedge funds heed the following advice when it comes to manging their PR exposure:

- Understand what the press wants and how they operate
- Have your own agenda and message every time you talk to a reporter
- Build and maintain relationships with key media
- Try to avoid “no comment”
- Assume everything is “on the record”

Most of that seems pretty Mickey Mouse but it is good advice as most hedge fund professionals have no PR training or experience and it can be an introduction to new investors or employees if managed right. Some people think that hedge funds are now choosing strategies in part which have a natural ability to gain a lot of attention from the media, it helps them build a brand and find new investors. Who hasn't heard of Citadel?

Third party marketing firms, hedge fund sales professionals and PR consultants who have real proven expertise in hedge fund media relations are worth more than they are usually paid. I would like to start a discussion around hedge fund pr strategies, trends and research. Do you have a few great or painful experiences that others can learn from? If anyone has a comment or question please share it by emailing me.

Thanks in advance.

Interested in hedge fund marketing? Read dozens of more hedge fund marketing & sales articles along with details on third party marketing within the Hedge Fund Marketing Guide.

- Richard

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Related Terms: Hedge Fund PR, Hedge Fund Media Exposure, Hedge Fund Public Relations, Public Relations for Hedge Funds, PR for hedge funds, Hedge Fund Media/PR, Hedge Fund PR Management, Hedge Fund Media Management, Hedge Fund Media Contacts, Hedge Fund PR Contacts, Hedge Fund PR Strategy, Hedge Fund Media Strategy, Hedge Fund Newspaper Contacts, Hedge Fund Magazine Contacts, Hedge Fund Radio Contacts
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Master-Feeder Fund Structure

What is a Master-Feeder Fund?

The Master-Feeder fund structure is a common way that hedge funds are set up to accept assets from both foreign and domestic investors in the most tax and trading efficient manner possible. It helps route assets from investors who may be from say the EU along with US tax exempt and taxable investors all into one central fund. The "master" or central fund is usually located somewhere offshore in somewhere like Bermuda.

While setting up a master-feeder fund may appear complex the first time a hedge fund works through the process the result is a more efficient method of raising assets internationally in a manner that allows flexibility to adapt to country-specific regulations.

Read dozens of additional articles like this within the guide to Hedge Fund Terms and Definitions.

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- Richard

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High Water Mark Definition

If you look at many hedge fund memorandums or marketing materials you have probably seen that many hedge funds offer high water mark protections for the investor. These are the status quo within the industry now and they assure investors that profit sharing will be calculated based on a fair valuation of returns earned. Many hedge funds collect a 2% fee on all assets and then a 20% performance fee, meaning that if the fund gains 100% in one year the hedge fund gets to keep 20% of those profits and the investor keeps the other 80%. A high water mark is the highest net asset value previously seen at the end of the fiscal year.

High Water Mark Example: An investor gives a hedge fund $500k in 2006 and that investment's value falls to $300k. In 2007 the hedge fund produces 100% returns and that investment is now worth $600k. This individual would only have to pay performance fees on that gain between the $500k and $600k, not the full 100% gain ($300k) for that year.

Read dozens of additional articles like this within the guide to Hedge Fund Terms and Definitions.

- Richard

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Hedge Funds Failing or Thriving?

Thriving, yet the answer you will get varies widely based on who you ask.

One of the best performers of 2007 has been Paulson Capital who raised a $1B fund to bet early on the subprime meltdown. He made out with a handsome 587.5% return for 2007 as of 10.30.07. “There’s never been a trade of this size of profit in the history of financial markets,” says Arki Busson, chairman of EIM Group, which has $13bn invested in hedge funds.

While 2007 was a rough year for some equity managers while others excelled in showing their stock-picking opportunities despite the overall volatility. Even with all of the market-based turmoil hedge funds produced strong returns through 2007. Credit Suisse/Tremond hedge fund data shows that hedge funds are out pacing the S&P 500 and MSCI World Index by several hundred basis points. Many hedge funds are in hiring mode with growth outstripping the number of professionals they have on board to manage it.

This outperformance by hedge funds is contrary to what you might have guessed if you frequent the NY Times or WSJ on a regular basis, both have been focusing on hedge fund meltdowns, quantitative models failing to perform, and a few frauds within the industry. It might sell more newspapers but it is also misleading, it is always safer to check the true pulse of the industry by speaking to professionals working within it, looking at data produced directly from groups like the Hedge Fund Research Group and reading articles written on niche sites such as the Albourne Village, Financial Times, Fierce Finance, All About Alpha or HedgeFundBlogger.com.

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Top 5 New Years Hedge Fund Resolutions

Top 5 Hedge Fund Resolutions

Every month I try to add something unique to my blog. For example last month I got the kinks worked out of HedgeFundBlogger.com and you can now visit that site instead of http://richard-wilson.blogspot.com in case you would like a web address that is easier to remember.

Here are the top 5 goals I have for this hedge fund blog in 2008.

5. Write 365 articles on hedge funds
4. Start video blogging and podcasting on a regular basis
3. Get over 1 Million hits to my blog
2. Meet and add value to as many hedge fund professionals as possible
1. Build the Linkedin.com Hedge Funds Group to over 5,000 members (currently at 585)

- Richard

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Resources

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Hedge Funds and Media Exposure

Hedge Fund Media Exposure & PR

Master-Feeder Fund Structure

What is a Master-Feeder Fund?

High Water Mark Definition

Hedge Funds Failing or Thriving?

Top 5 Hedge Fund Resolutions

Service Provider Directory

Hedge Fund Careers

1/1/08