Friday, May 22, 2009

Insurance increases for hedge funds

According to a recent article at Bloomberg, the cost to insure hedge funds has risen 20% in the past six months. This is largely due to the bankruptcy of the Lehman Brothers and the Bernie Madoff scandal. Read the full article here.

Wednesday, May 20, 2009

Strong April for hedge funds

According to the Wall Street Journal, hedge funds are coming off their strongest month in more than three years in April 2009. The Morning Star Hedge Fund Index rose 3.4%.

Nadia Papagiannis, Morningstar hedge fund analyst,
"Over the last two months, the bulls have dominated the markets, and stories of green shoots in the economy colored the financial media. Many hedge fund managers weren't confident in the sustainability of the rally, and invested with a more conservative market exposure."

Read the full article here.

Tuesday, May 19, 2009

Mergers and acquisitions headed for hedge fund industry

With the current turmoil in the hedge fund industry, it is bracing for a wave of mergers and acquisitions. These will result in bolstering depleted assets and increase the different sources for revenue. A third reason for these impending mergers is the fact that big firms will be looking to round out their assets, by going global and acquiring funds that will be located in different regions. Read the full article here.

Thursday, May 14, 2009

Big plans for FRM Capital Advisors

According to Bloomberg, FRM Capital Advisers will contribute $300 million in strategic investments to hedge funds. They may also be hiring six more managers to aid their investments. The company makes investments in hedge funds for two to four years then takes a share of their fees from the incomes for up to ten years. Read the full story here.

Wednesday, May 6, 2009

More details in the Madoff case

According to the Reuters, Bernie Madoff's personal fortune and business fortune were inseparable. Documents were released Tuesday giving more detail to the situation.

"Madoff used BLMIS to siphon funds which were, in reality, other people's money, for his personal use and the benefit of his inner circle. Plain and simple, he stole it," stated Trustee Irving Picard.