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.

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.

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.

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.

Millennium Management growing

In a report from Bloomberg, they report that hedge fund Millennium Management has hired more than 15 people since November. They overlook $11.5 billion in assets. They're continuing to hire and secure top talent while many of the financial firms are facing significant layoffs. Click here to read the article.

Hedge-Fund Managers Help Raise $1.7 Million at Gala

In lighter news, Bloomberg reports that The annual Hedge Funds Care benefit - - backed by Kenneth Tropin and Michael Vranos -- will downsize from a black-tie dinner to a cocktail party tomorrow night in New York. The nonprofit, which aids child-abuse prevention programs, is hoping a laidback atmosphere will encourage some donors to write bigger checks -- and allow jobless hedge-fund managers to network while eating mini-hot dogs and shrimp instead of filet mignon.

Kathryn Conroy, director of the benefit said she expects Wednesday’s event at Manhattan’s Cipriani 42nd Street will raise about $1.7 million, down from $2.2 million last year. Hedge Funds Care branches in Atlanta, London, Toronto and other cities are scheduling separate fundraisers.

Shows that even in times of trouble, many Hedge Funders put kids first.

Latest updates from the Madoff scheme

Bloomberg recently recounted all of the events that have currently happened since the Madoff scheme was busted. Madoff Enablers Winked at Suspected Front-Running take an in-depth look at the events that have occurred up until this time.

Hedge fund investors removing money

According to Bloomberg, $152 billion was withdrawn from hedge funds in the fourth quarter of 2008. At the same time, hedge fund investors saw the lowest return on investments in two decades.

Kenneth Heinz, the president of Hedge Fund Research, said:
“Investor risk aversion remained at historically extreme levels through year end. Investor redemptions were widespread and indiscriminate across fund strategies, regions, asset sizes and performance.”

Bloomberg: Madoff ‘Big Lie’ Hits Fairfield Sentry, Kingate Funds

From Bloomberg.com:

The biggest hit on the "Ponzi" Madoff scheme is Fairfield Greenwich Group who invested over $7 billion dollars into the Madoff firm. This is the first report of enormous losses by the inept Madoff firm. Surely more big names are to come.


The biggest loser may be Walter Noel’s Fairfield Greenwich Group, whose $7.3 billion Fairfield Sentry Ltd. invested with Madoff’s eponymous firm, three people familiar with the matter said. Another was Kingate Management Ltd., whose $2.8 billion Kingate Global Fund Ltd. invested with Madoff, they said.

For more information, please click here.