DragonBack Assets Under Management

DragonBack AUM

Hong Kong Hedge Fund, DragonBack, Sees AUM Fall 85%

A Hong Kong hedge fund has been hit hard after investors completed mass withdrawals cutting assets dramatically.  DragonBack's two hedge funds now manage just $45 million after a peak of $600 million--an 85% drop!  Interestingly, only one of the funds has had negative performance YTD with the VolAsia fund returning 0.5%.  This suggests that investors may not be satisfied with even small gains and are turning to other funds that are generating more impressive returns, or simply a dissatisfaction with the manager.  The hedge fund's manager, Robert Lance, said of the drop, "The AUM gods giveth and they taketh away."


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Philadelphia Newspapers Hedge Fund

Philadelphia Newspapers Hedge Fund

Hedge Fund, Buyout Firm Buy Philly's Two Daily Papers

A hedge fund and a private equity firm have collaborated to purchase Philadelphia's two daily newspapers.  Angelo Gordon & Co. and Credit Suisse Group won a thirty hour long auction with a bid of $139 million to win control of the Philadelphia Inquirer and Philadelphia Daily News.  The deal was financed by Alden Global Capital, a hedge fund.   Acquisitions of print newspapers are likely to become more common as sinking readership brings down revenue and papers fall into bankruptcy.

The lenders, which include private equity firm Angelo Gordon & Co. and Credit Suisse Group, won the 30 hour auction with a $139 million bid. The offer was financed by hedge fund Alden Global Capital.

The winning bid topped offers from a group led by billionaire Ronald Perelman and another from Canadian investment firm Stern Partners. It must still be approved by a federal bankruptcy judge, with a  hearing scheduled for May 25.

The Angelo Gordon-Alden Global group have pledged not to make wholesale job cuts at Philadelphia Newspapers, which owns the Philadelphia Inquirer, Philadelphia Daily News and Philly.com Web site. But what exactly that means is unclear: PNI’s new bosses say the company will continue to employ 2,500, but the company’s former CEO says it currently employs 4,500.  Source


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Tags: hedge fund, philadelphia inquirer, daily news, print media, ownership, purchase, bankruptcy auction, owners

Hedge Fund Training & Networking in New York City & Boston

NYC & Boston Training & Events

3 Quick Hedge Fund Training News Updates:

1) The Hedge Fund Group is hosting a 1/2 day seminar on hedge fund marketing in New York City on Tuesday May 4th from 8AM until 1PM EST. Full details on this event may be found here: http://HedgeFundGroup.org/Hedge-Fund-Marketing-Training.html

2) The Hedge Fund Group and Hedge Fund Premium are also hosting a free to attend seminar networking event in Boston on Thursday May 6th from 5:30-7:30PM at the Harvard Club in downtown Boston. This networking event includes two short educational speeches, appetizers, and a cash bar. For full details on this event please see this page of our blog: http://richard-wilson.blogspot.com/2010/04/boston-hedge-fund-event-thursday-may.html

3) The Certified Hedge Fund Professional (CHP) Designation Program is now full and closed to new registrants. Registration will open again for this program on July 1st, 2010.  Learn more here.

We hope to see you within one of these hedge fund training programs and events, please let us know if you have any questions by sending your inquiries to Events@HedgeFundGroup.org. 

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Tags: hedge fund training programs, online hedge fund training, training for hedge fund professionals, internet hedge fund training

Phillippe Jabre Interview

Phillippe Jabre Interview

Phillipe Jabre Speaks of Buying Opportunities in Europe

Philippe Jabre, a veteran hedge fund manager, sees many opportunities in Europe's debt crisis for buying underpriced assets.  Jabre, the former manager of GLG, said in a recent interview that people are too concerned with the risk of buying failing European banks and slumping stocks.  According to him, "It is a dream market for a stock picker."  
The controversial former manger of GLG (GLG.N) -- one of London's biggest listed hedge funds -- said he thought investors remained overly risk-averse in a market with plenty of momentum in technology, autos, energy and industrial sectors.
"People are putting too high a probability on risk. They are too scared," he said in his office in Geneva, in one of the few interviews the famed arbitrager has given since he left London. "It is a dream market for a stock picker. It's great."
The hedge fund manager, whose Jabre Capital Partners runs around $5.5 billion in assets, said that governments around the world would eventually have to tackle their debt, which swelled after the 2008 credit crisis spurred costly state bail-outs of financial institutions.
While describing Greece's crisis as "a very bad problem," Jabre said he was confident "a consensual solution on how to address the debt" would be reached before long.  Source


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Alternative Investment Management Association Rules

Singapore Hedge Fund Proposal

Singapore Proposes Rules that Raise Hedge Funds' Costs

Singapore's central bank has proposed new rules that would raise the operating costs of Singapore hedge funds.  According to the country's Alternative Investment Management Association, 5-7% of Singapore's 140 hedge funds only have one fund manager and would be required to add at least another manager. Hedge funds would also have to maintain a minimum of $182,000 in capital.  Hedge funds would have 18 months to comply with these and other rules in the regulation.
Responding to a Reuters query, AIMA said 5-7 percent of about 140 Singapore-based hedge funds have only one fund manager and will need to find a second to comply with new regulations proposed by the Monetary Authority of Singapore (MAS).

This week, MAS proposed to replace its "exempt fund manager" regulatory regime for smaller funds with a new set of rules requiring all firms to have at least two full-time staff in Singapore. They are required to have a minimum of five years experience in fund management.
The new rules also require firms maintain a base capital of least S$250,000 ($182,200) at all times, which "should not be considered onerous for a serious player in the fund management business", according to AIMA.
Firms with assets under management exceeding S$250 million or that manage funds for retail investors must comply with additional rules such as employing a full-time compliance officer in Singapore and setting aside risk-based capital.  Source

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Tags: Singapore Hedge Fund Rules, hedge funds, Singapore, Singapore hedge funds, Alternative Investment Management Association Rules, AIMA

Hedge Funds Side Pockets

Hedge Funds Side Pockets

SEC Investigating Hedge Funds' Use of Side Pockets

The Securities and Exchange Commission is investigating hedge funds' use of "side pockets."  The SEC suspects that during the financial crisis some hedge funds may have inappropriately used side pockets to prevent investors from withdrawing money.  This is one of many concerns that the SEC's new enforcement unit will be looking into in private equity and hedge funds.
Side-pockets are just one of several top priorities set by a newly created SEC enforcement unit focused on private equity, hedge fund and other asset managers, the paper said, citing people familiar with the matter.
The unit also is looking into whether investment funds assign fair values to assets and accurately disclose information about their investment strategies, assets and performance, the paper said.
The group had its first full staff meeting this week, the paper said, and has 60 attorneys across nine offices, the Journal said.
Side pockets were widely used in 2008, when hedge funds faced a flood of withdrawal requests amid freefalling markets. Fund managers, not wishing to sell their assets at fire-sale prices, barred clients from redeeming investments.
Many funds stashed illiquid securities into side pockets until markets improved, a move that reduced losses.
Yet many investors complained that fund managers abused the practice, did not disclose reasons for creating side pockets or disclose which assets were set aside.  Source


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Colorado Mueller Capital Management

Colorado Mueller Capital 

Colorado Seizes Assets of Hedge Fund Running Ponzi Scheme

The state of Colorado has seized the assets of a hedge fund which the state accuses of running a Ponzi scheme.  Mueller Capital Management, a south-Denver hedge fund, has had all its assets seized by Colorado after claims surfaced that the manager, Sean Mueller, had created a Ponzi scheme involving as much as $122 million.  
The state said that Sean Mueller raised more than $20 million from three investors and that at least 30 more also may have made "substantial investments." 
Mueller threatened to kill himself Thursday and was found by Greenwood Village police, who took him to a hospital. He could not be reached Tuesday. Colorado Securities Commissioner Fred Joseph on Friday moved to freeze Mueller's assets and, on Tuesday, obtained a court order to appoint a receiver.
Mueller, 41, a strong golfer who belonged to the Cherry Hills Country Club, is believed to have attracted prominent Colorado residents to invest with his Mueller Capital Management firm based in Greenwood Village. 
He hired former Janus Fund manager Blaine Rollins to be his director of research. Rollins was listed as a staff member on Mueller Capital's phone message Tuesday. The University of Colorado Leeds School of Business, where Rollins is a board member, described him as Mueller Capital's director of research.   Source



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Morningstar Hedge Fund Index

Morningstar Hedge Fund Index 

Morningstar 1000 Hedge Fund Index Returns 2.7% in March

Morningstar reports that its 1000 Hedge Fund Index returned 2.77% in March and 1.63% for the quarter.  The firm also said that hedge funds put a significant dent in year-to-date outflows by adding $2.59 billion in inflows during February.  Although it has been a somewhat slow month for hedge funds, Morningstar's VP predicts that funds will be more active as the stock market rallies.
The Chicago-based research giant said its Morningstar 1000 Hedge Fund Index retunred 2.77% last month and 1.63% in the first quarter. The firm also said that hedge funds enjoyed some $2.59 billion in inflows in February, cutting the industry’s year-to-date outflow to just over $1 billion.

“Hedge funds remain cautious, but they are peeking their heads out at the stock market rally,” John Rekenthaler, vice president of research, said. “They are assumer greater market risk while equity markets rebound.”

All but one hedge fund strategy tracked by Morningstar managed a positive return during that market rebound last month. Distressed securities funds did best, adding 5.81%% (7.42% year-to-date), followed by U.S. small-cap funds (4.53%, 2.49% YTD), emerging market equity funds (4.3% in March, 1.75% YTD) and global trend funds (4.08%, 0.04% YTD).

Only short equity funds lost ground in March, falling 0.48% (down 2.36% YTD). Funds of hedge funds rose 1.6% in March and are essentially flat—up 0.05%—on the year.  Source



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IOSCO Risk Check

IOSCO Risk Check

International Regulator Requiring Data from Hedge Funds

Hedge funds are facing their first global risk test from an international monitor.  The International Organisation of Securities Commissions is requiring that hedge funds operating within its sphere submit eleven sets of data by the end of September.  Hedge funds will have to show how much leverage they are using and the value of their long and short bets among other details.  
"The next step for us is going to be is coordinating a survey of hedge funds using this template so we can try to get a global picture for the first time on the state of the hedge funds industry and then analyse that data from a systemic perspective," IOSCO Secretary General Greg Tanzer told the Reuters Regulation Summit.
Policymakers say the sector is too opaque and not regulated enough though many regulators agree the sector was not a fundamental cause of the crisis and no fund needed a public bailout like many banks.
The G20 group of leading countries agreed last year that hedge funds should be made to register, be supervised directly and submit data regularly to the authorities.
The hope is to learn from the crisis so that excessive risks building up in the financial system are spotted early enough for regulators, central banks and governments to take speedy action.  Source




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Neil Pegrum Soros Capital Management

Neil Pegrum to Soros 

Cazenove's Neil Pegrum Leaves to Soros Capital Management

Cazenove Capital Management has lost one its top hedge fund manager to George Soros' firm.  Neil Pegrum left the hedge fund firm, where he managed close to $463 million, to go to Soros Capital Management.  Paul Marriage, who co-managed with Pegrum, will continue to manage their funds.

A top Cazenove Capital Management hedge fund manager is joining Soros Fund Management.
Neil Pegrum, who managed more than £300 million in mid- and small-cap stocks for Cazenove, quit last week. It is unclear what his role will be at New York-based Soros, which manages some US$27 billion.
Pegrum’s former co-manager, Paul Marriage, will continue to manage their funds, which have posted consistently high returns since Pegrum arrived six years ago. Pegrum and Marriage’s UK Dynamic Fund is up 69% over the past year.
Marriage will go it alone on the Absolute UK Dynamic Fund and UK Dynamic Absolute Return Fund. Julie Dean has been added to the Dynamic Fund’s team, and will manage its long-only portfolio.
Cazenove also plans to add a British small- and mid-cap fund manager, it said.  Source



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Gottex Assets Under Management

Gottex Assets Under Management

Hedge Fund Gottex's Assets Slip in First Quarter of 2010

There is at least one sign that raising assets for hedge funds won't be as easy as simply having a great year of returns.  Although 2009 surely boosted investor interest, if hedge fund managers want to keep adding assets they will have to prove that they can improve on that already strong performance.  Gottex revealed last week that its fee-earning assets slipped 2.6% in the first quarter of 2010 despite positive performance in Q1.

Alternative asset manager Gottex (GFMN.S) said on Friday fee-earning assets fell 2.6 percent in the first quarter of 2010 as client withdrawals outweighed market gains and inflows from an acquisition.
Total assets slipped to $7.9 billion at the end of the quarter from $8.1 billion at year-end as Gottex continued to wind down its asset-based strategies, where assets fell by 8 percent.
Despite the fall in assets, Gottex chairman and CEO Joachim Gottschalk said the company was on track in its efforts to focus on its core business of generating absolute returns, or positive performance in its funds regardless of market direction.
He also said the company, which has a strong balance sheet and is debt-free, is in the market for acquisitions.
"I believe Gottex, as a larger well-resourced firm, is well positioned for the next wave of growth that the hedge fund industry will undoubtedly see," Gottschalk said in a statement.  Source



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Tags: Gottex Assets Under Management, AUM, Assets, Quarter 1 2010, Hedge Fund Assets, Gottex Fund Management, AUM Gottex

Hedge Fund Marketing Seminar in New York City Tuesday May 4th, 2010

NYC Hedge Fund Marketing Seminar


The Hedge Fund Group is hosting a NYC Hedge Fund Marketing Seminar and Boston Hedge Fund Networking Event on Tuesday May 4th and Thursday 6th, 2010. To learn more about the Boston event please click here. To learn more about the NYC event please read below:

The Hedge Fund Group and TradeStation Prime Services are teaming up to offer a half day Hedge Fund Marketing Seminar on Tuesday May 4th, 2010 from 8AM to 1PM EST.  This seminar will include breakfast, four introductory speeches lasting for 15-30 minutes each, a coffee break, and then a two hour hedge fund marketing training session taught by Richard Wilson.  

What You Will Get At This Hedge Fund Marketing Seminar:
  • How to create Hedge Fund Marketing Feedback Systems so you are not "flying blind" while raising capital and reporting results to fund principals and stakeholders
  • Persuasive email and marketing material writing for capital raising
  • Direct advice from multiple capital introduction professionals who have raised over $200M in capital for their clients
  • Leveraging scientifically backed methods of influence and persuasion into every day hedge fund marketer and third party marketing activities

What:  Half Day Hedge Fund Marketing Training Seminar including 5 speakers.

Where:  Crosby Hotel (Address Below)

79 Crosby Street
New York, NY 10012

When: Tuesday May 4th.  The event will run from 8AM until 1PM EST

Cost: $175 (Includes breakfast + 5 Speakers)

This event location has 100 seats and to date 40 of these seats have already been filled. As of today on April 23rd, 2010 we have 60 seats left available for this seminar.  To register for one of these 60 spaces left available at the event please pay via credit card online by clicking here or complete our Fax Registration Form and submit this form to our team. 

If you don't believe that you get over $175 worth of value at this event we will give you 100% of your money back.  We are sure you will benefit from the practical tips and strategies that you can take away from this event and immediately implement to raise more capital.  

If you have any questions please email me directly at Richard@HedgeFundGroup.org.


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Boston Hedge Fund Event Thursday May 6th Harvard Club

Boston Hedge Fund Event On May 6th


We are now offering events in both New York City on Tuesday May 4th and Boston on Thursday May 6th. For the NYC event please click here. For details on the Boston event please see below.

The Hedge Fund Group is offering a hedge fund networking event at the Harvard Club in downtown Boston on Thursday May 6th, 2010.  The event will have a $0 entry fee and last from 5:30-7:30PM.  Appetizers will be included at the event along with a cash bar.  This event is being sponsored by Armor Compliance, Armor Law Group, and TradeStation Prime Services.

At the beginning of the event we will have 2 short 20 minutes talks on Hedge Fund Marketing Feedback Systems by Richard Wilson Founder of the Hedge Fund Group, and the growing role of Chief Compliance Officers within the current regulatory environment by Douglas MacLean, CEO of Armor Compliance.  After these two talks we will have open networking for the remaining 1 hour and 20 minutes.  After the event interested participants may all go across the street to a restaurant or bar for further networking if there is interest.


What: Free to attend networking event for hedge fund principals, employees, marketers and investors.

Where:  Harvard Club (see address below)

One Federal Street
Boston, MA 02110

When: Thursday May 6th, 2010 from 5:30-7:30PM EST

If you would like to attend this event please make sure and RSVP below. There are only 60 spaces available for this event and traditionally we have 80-100 professionals attending these types of networking events.  


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Richest UK Hedge Fund Manager

Richest UK Hedge Fund Manager

Louis Bacon Listed as UK's Richest Hedge Fund Manager

An American hedge fund manager has claimed the top spot on the London's Sunday Times August "rich list."  Moore Capital Management manager Louis Bacon’s is the UK's richest hedge fund manager with an estimated $1.6 billion fortune.

Moore Capital Management chief Louis Bacon’s £1.1 billion fortune placed him atop the list of the U.K.’s richest hedgies, edging out Sail Advisors’ Robert Miller, who took the top spot last year. Bacon’s wealth increased by 69% last year from £650 million; Miller’s horde rose 27% to £950 million from £750 million.

Bacon ranked 49th on the overall Times list, which included “the most” hedge fund managers “in recent years,” according Sunday Times editor Ian Coxton. In March, Forbes ranked Bacon as the 655th-richest man in the world, tied for 36th among alternative investments billionaires.

The head of the largest hedge fund in Europe enjoyed the largest percentage increase in his fortune last year: Alan Howard, founder of Brevan Howard Asset Management, saw his wealth more than double to £875 million, up from £375 million, good enough for 66th place on the overall Times list.  Source


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Hedge Funds Openness

Hedge Funds Openness

Hedge Fund Managers More Transparent Since 2008

Here is an interesting story about a hedge fund manager who used to be among the most secretive and least open to investors and now has completed a full turnaround.  Israel Englander of Millennium Management now sends his clients biannual financial statements and reports showing the firm's trading exposure and meets more frequently with investors.  After a rough 2008, many hedge fund managers are becoming more open and embracing investor demands even though there is less pressure to do so after an impressive 2009.

In different ways, other big name hedge fund managers are also seeking to reinvent themselves by taking previously unheard-of steps both to sell themselves to new investors and hang on to existing ones.

Often that means attending breakfast meetings with wealthy customers of Wall Street's brokerage houses, going on golf outings with prospective clients and holding more frequent client conference calls.

For some managers like Englander, taking these steps is a response to the worst financial crisis in decades. That crisis decimated industry assets and left many investors with a dim view of the $1.4 trillion hedge fund industry.

Others like industry heavyweights John Paulson and Steven Cohen are putting on a more investor-friendly face in response to the whiff of scandal and bad publicity.

Managers' efforts to polish their images also come as government officials and average investors around the world are blaming hedge funds for kicking some stock prices lower, crushing currencies and manipulating commodity prices.  Source



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London and Paris Hedge Funds

London and Paris Hedge Funds

London and Paris Square Off Over Hedge Fund Regulation

The UK, particularly its capital city, has been a staunch ally of hedge funds in the push back against regulation while other European Union countries such as France have been pushing for tough regulations on the industry.  Now, the two countries are set to face off over the regulations--all within weeks of UK elections--and neither side looks willing to compromise.

Such a move is likely to escalate a long-running spat between Britain and France over how to treat foreign funds under the new regime.
Privately, Paris has threatened to use European Union voting rules to push through the law over the objections of Britain, said diplomats.
With London largely isolated on the issue, it would be easy for France to win the backing of a majority of European countries to sign off the law. 
But this would break with European diplomatic practice where large countries like Britain are rarely bullied into accepting something they do not want.
Michel Barnier, the French commissioner in charge of an overhaul of financial services across the European Union, has intervened to head off a full-scale row between the two countries.
But at a meeting last week in Madrid, French economy minister Christine Lagarde told Barnier France was standing firm and would not concede to British demands that foreign funds be entitled to a license to do business across all 27 EU countries.  Source

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Tags: London and Paris Hedge Funds, London Paris funds, Paris hedge funds, regulation, financial overhaul, reform, London hedge funds, UK, France

Singapore Hedge Fund Rules

Singapore Hedge Fund Rules

Singapore Begins First Review of Its Hedge Fund Rules

Singapore is reviewing its rules for hedge fund and private equity investment since it began attracting alternative asset fund managers eight years ago with various incentives.  The Monetary Authority of Singapore has decided to review its policies toward hedge funds and private equity firms in order to be "responsive to the changing needs of the various stakeholders in the fund management industry," according to a recent statement.  This comes at a time when hedge funds are under intense scrutiny worldwide.

Hedge funds and private-equity firms are under scrutiny from regulators and lawmakers worldwide, who say they are partly to blame for the worst financial crisis in a generation. Singapore’s hedge-fund industry has grown into Asia’s second biggest behind Hong Kong as the government lured investment management professionals with tax incentives and grants.
“They’re aware of the need to find the right balance,” said Melvyn Teo, a director at the BNP Paribas Hedge Fund Centre at Singapore Management University. “It will make Singapore less appealing to really small, young hedge funds, but the industry is maturing at the moment. We might still be quite attractive to more established larger ones.”
Hedge funds worldwide posted net outflows of $285 billion last year, leaving assets at $1.6 trillion, according to Hedge Fund Research Inc., a Chicago-based research firm.  Source


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IMF Hedge Funds Tax

IMF Hedge Funds Tax

IMF Proposes Two New Taxes on Hedge Funds and Banks

The International Monetary Fund has proposed two new taxes on hedge funds, banks and other financial institutions to finance future bailouts.  Hedge funds would have to pay a bank levy and also taxes on profits and compensation.  This is the latest in an international effort to reform the financial system and impose stricter rules and penalties primarily on hedge funds and investment banks.
All institutions would pay a bank levy - initially at a flat-rate - and also face a further tax on profits and pay.
The measures are designed to make banks pay for the costs of future financial and economic rescue packages.
The IMF documents were made available to governments of the G20 group of nations on Tuesday afternoon and seen by the BBC soon afterwards. The plans will be discussed by finance ministers this weekend.
"The proposals are likely to horrify banks, especially the proposed tax on pay," our business editor said.
"They will also be politically explosive both domestically and internationally."
Insurers, hedge funds and other financial institutions must also pay the taxes, the IMF argues, despite them being less implicated in the recent crisis.
Source

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Paulson Goldman Sachs Fraud Case

Paulson Goldman Sachs Fraud Case

John Paulson Reassures Investors On Goldman Sachs Case

Paulson & Co. worked to allay investors' concerns over the hedge fund's involvement in the Goldman Sachs fraud case.  Although Paulson & Co. is not being charged with fraud, the SEC has charged that Goldman Sachs defrauded investors by not telling them that Paulson was betting against a subprime debt product.  The hedge fund is trying to reassure investors that the lawsuit does not directly involve Paulson & Co. and that it did not act unlawfully. 
Paulson, in a conference call on Monday and followed up with a letter to investors late on Tuesday, says neither he nor anyone else at the firm had received a so-called Wells notice indicating that charges might be filed against the fund, several investors who listened to the call said.
No one had yet notified the $32 billion fund of their intentions to pull money out, they said.
"We are interested in buying out people who want to get out of Paulson, but so far no one has stepped forward," one of the investors, who asked not to be named because of the sensitivity of the matter, said late on Tuesday.
A spokesman at Paulson & Co, which earned $15 billion by correctly betting in 2007 that the U.S. housing market would collapse, declined to comment.  Source

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Hedge Funds Regain Power

Hedge Funds Regain Power

Hedge Funds Regain Power in Negotiating with Investors

Continuing with the debate over hedge fund fees and negotiating terms with investors, hedge funds now appear to be "flexing their muscles" with investors.  Hedge funds are riding solid returns and a big rise in interest from investors, so managers are less likely to compromise.  A larger investor pool means that managers can turn away clients that demand greater transparency, lower fees and better terms.
Investors got used to holding the whip hand during the credit crisis as hedge funds had to hand back hundreds of billions of dollars to clients, leaving managers desperate for assets and in a weaker position to haggle on fees.

However, investors are now finding many funds have both healthier-looking client lists after last year's 20-percent returns and long memories when it comes to which investors deserted them during the tough times.

Downward pressure on hedge funds' lucrative fees has evaporated, executives say, and they look unlikely to fall further now that demand and performance have picked up.

The well-known structure of 2 percent annual management fees and 20 percent performance fees, commonplace before the financial crisis, has come under pressure as investors pulled out $330 billion in the year to June 2009, according to Hedge Fund Research HFR.L.

This has helped force down management fees to 1.5 percent, although performance fees are still around 20 percent, according to hedge fund executives and median figures from data group Preqin.  Source

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Tags: Hedge Funds Regain Power, hedge funds investors negotiations, hedge funds managers and investors, fees, terms, fee structure

Australian Gaming Hedge Fund

Australian Gaming Hedge Fund

Australian Hedge Fund Begins Betting on Gaming Industry

An Australian hedge fund has entered a niche trading area, the gaming industry.  Cheung Capital Management's maiden hedge fund, the Global Gaming Opportunities Fund, will invest in casino and gaming stocks around the globe.
The new vehicle, the Global Gaming Opportunities Fund, is being marketed to Australian investors. 
“The global gaming industry includes casinos, poker machine manufacturers, lotteries and bookmakers and has a total market capitalization in excess of $100 billion. In spite of its size, many traditional fund managers and brokerage houses still shy away from the sector,” said Timothy Cheung, portfolio manager of the new fund. “This presents an opportunity for the fund to generate strong returns for its clients through the application of bespoke research.”

Cheung added that Asia’s burgeoning middle class is contributing to the growth of the gaming industry in that region.
“One market the fund will focus on is Macau, the world’s largest casino destination. In spite of the global financial crisis, casino revenues in Macau have grown every year since it welcomed overseas operators in 2004,” said Cheung. Source

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Hedge Funds Goldman Sachs Gold

Hedge Funds Goldman Sachs Gold

Hedge Funds Unlikely to Sell Gold Over Goldman Case

The high-profile SEC lawsuit against Goldman Sachs will likely have broad consequences in the financial industry but it seems that the sale of gold by hedge funds is not one of them.  The investment banking firm was accused of fraud tied to collateralized debt obligations after it failed to disclose to investors that Paulson & Co was influencing the selections in the portfolio--Paulson was not charged in the case.

At the end of 2009, Paulson was the biggest stakeholder in the SPDR Gold Trust--the largest exchange-traded fund backed by gold--while Goldman Sachs was the eleventh.  For now, it seems that hedge funds are not going to sell gold positions as a result of the Goldman Sachs case and even if they do central banks will likely step in to up their gold holdings at a lower price. 
Hedge-fund managers and other large speculators increased their net-long positions in New York gold futures in the week ended April 13, according to U.S. Commodity Futures Trading Commission data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 220,742 contracts on the Comex division of the New York Mercantile Exchange, the Washington- based commission said in its Commitments of Traders report. Net- long positions rose by 17,296 contracts, or 9 percent, from a week earlier.
“In the short term, there’s a possibility of a pullback and we would recommend to any investor that’s a good opportunity” to enter the market, Smith said. “In the long run, the hard assets will have sustainable value and sustainable purchasing power.”
Gold rallied 24 percent last year as central banks and governments maintained low interest rates and spent trillions of dollars to stimulate economies, sending the dollar 4.2 percent lower against six major currencies. Bullion has gained 3.6 percent this year.  Source

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Tags: Hedge Funds Goldman Sachs Gold, price of gold, goldman sachs, goldman sachs price of gold, gold, goldman sachs trial, hedge funds, John Paulson, Hedge Funds Holding Gold
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