Thursday, April 23, 2009

Hedge funds down in first quareter

According to a recent article at Pensions and Investments, hedge funds fell 7.4% in the first quarter to $1.3 trillion. A large part of this was due to the $1.4 billion in redemptions.

Kenneth J. Heinz, HFR president, made the comment:
“Extreme investor risk aversion subsided into the end of the first quarter, but remained at elevated historical levels as industry consolidation continued through quarter end."

Monday, April 20, 2009

Hedge fund industry will have re-evaluate business model

According to a new article at CNN Money, the hedge fund industry has fallen to $1 trillion, this is down from $2 trillion last year, but is a result of the worst economic year for hedge funds. The article believes that hedge funds will continue to grow, and will receive plenty of investments between 2010 and 2013. This current economic downturn will force the industry to face its downfalls and readjust its business models. Read the full article here.

Wednesday, April 15, 2009

USB looses key hedge fund advisor

According to the Wall Street Journal Europe, Alexander Ineichen has left UBS after eight years. He was a key adviser for the their hedge funds.

Mr. Ineichen didn't manage money at the units, but did produce numerous reports on the state of the hedge-fund industry. Along with peer Huw van Steenis, head of European banks and financials research at Morgan Stanley, Mr. Ineichen has been one of the most well regarded and influential voices commenting on issues facing the industry.

For the full story, read here.

Monday, April 6, 2009

Terms for assets for fund managers eased

Bloomberg reports that a deadline to buy certain securities for fund managers has been extended to April 24. This new deadline will allow more time for public-private investment funds to buy legacy securities which are currently on the balance sheet.

When the program was first detailed last month, the Treasury said that for money managers to be selected to run one of about five public-private investment funds, firms had to prove an ability to raise $500 million in private capital, have a minimum of $10 billion in mortgage backed securities under management, a proven track record in these securities and headquarters in the United States.

Read the full story here.

Wednesday, April 1, 2009

Cayman Islands may protect hedge fund

According to Bloomberg, the Dynamic Decisions Corporate Management may be moved to the protection of an outside firm after the management was accused of gross mismanagement and misfeasance.

According to the filing, London-based Dynamic Decisions founder
Alberto Micalizzi had stated that the fund had “substantial” losses last year and that assets may have fallen to as low as $20 million, excluding illiquid investments. The fund had $550 million at the end of 2008, according to a March 13 conference call the fund’s board had with investors.

Read the full report here.