Hedge Fund Directory

Financial Times has reported that retail investors in UK are likely to get access to participate in hedge funds very soon. Here’s their report.

“Private investors are finally to be allowed access to hedge funds through UK retail products, under changes to the regulatory regime proposed by the Treasury and the Financial Services Authority. In a follow-up to its initial consultation exercise in March 2007, the FSA yesterday announced further progress towards introducing retail-oriented Funds of Alternative Investment Funds that can be authorised in the UK. Crucially, this included a Treasury clarification on how these funds will be taxed. Under current rules, offshore funds of hedge funds have to pay corporation tax and their investors also pay tax on gains. Now, the proposals move the point of taxation from the fund to the investor.

The FSA will be consulting on the new regulations until May 22. Hedge fund managers expect the new regulations to come into force by April 2009.”

The appetite for Hedge funds among private investors is there and this development should make the funds even more accessible. “ABN Amro’s latest analysis backs up this view(of demand from investors). It calculates that the average premium, weighted by assets, for a fund of hedge funds listed on the London Stock Exchange is now 3 per cent, indicating more demand than supply. And the last three fund- raisings in the London-listed fund of hedge funds sector were heavily oversubscribed.” So the demand is there.

Another debate is on the nature of the funds — whether they will be open ended or close ended. These hedge funds will most likely not be open ended because it allows flexibility to the managers to invest in high return assets even if such assets are not very liquid. However, industry sources feel that there would be place in the market for open ended as well as close ended funds.

So we wait for April 2009 and see what happens next in the London Hedge Funds market!

As if Hedge funds don’t have enough of their plate already, they are now being adversely commented up on by US presidential hopefuls — more for media mileage than for any meaningful discussion!

There an interesting article here:
Hillary ClintonTakes Aim at Hedge Funds and Mergers & Acquisitions

According to the Political Radar blog, Hillary Clinton commented on the tax breaks currently enjoyed by some in the industry: “We also have to reward work more, and by that, I mean, I have people in New York working on Wall Street as investment managers, as hedge fund executives.

Under the tax code, they can pay a lower percentage of their income in taxes on $50 million than a teacher or a nurse or a truck driver in Parma pays on $50,000. That’s very discouraging to people. You just feel like, “Wait a minute. I’m working as hard as I can.” All those people you see in your law office. They’re working as hard as they can and they feel like they’re just getting further and further behind.”

She is not alone in pointing out this discrepancy though as other democrats like Barack Obama and Edwards have also commented on the tax policy that sometimes does appear to be targeted incorrectly.

A really interesting fact to be noted here is that Hillary Clinton’s daughter, Chelsea Clinton works for a hedge fund, the Avenue Capital Group!

Continuing the recent spate of not so positive publicity focussed on Hedge funds, Wall Street Journal has published another article “Hedge Funds Feel New Heat” on some of the recent news from the hedge funds and some prediction on the trends(To read complete article, visit www.wsj.com).

The return for the hedge funds in general have taken huge hits in last two months and it is again reconfirmed by the news from the article that “Last month alone, so-called “quantitative” hedge funds (which make investments based on sophisticated mathematical formulas) fell 6% as a group, according to data-tracker Hedge Fund Research Inc.”

One of the main reasons for the investor flight from some of the hedge funds is the uncertainty felt by investors on the actual value of the investments held by the funds. “The most-successful fund managers enjoy celebrity-billionaire status, even as regular investors struggle to figure out what they are up to. This opacity, though, is now hurting hedge funds.

Investors are pulling back, worried as they watch assorted financial institutions suffer from bad trading bets.” This is especially true for those funds with significant exposure to credit markets. “Hurting funds like these is the fact that investors are increasingly fretting about how they value their holdings.

The risk is that funds may be overstating returns, or that they simply don’t know with certainty what their holdings may be worth, given the difficulties in the credit markets.

Lara Price, head of research for Octane, a firm that invests in hedge funds, says her firm has become more worried about whether the results of some debt-focused hedge funds reflect their true value, as more of their investments become difficult to trade.”

So if one side of the story is the tough times faced by a section of the industry, the other side is that some of the hedge funds with different strategies are proving to be quite solid and hence popular with the investors.

“A subset of funds that simply buy a portfolio of stocks while simultaneously betting on other stocks to fall — known as “long-short” funds — are currently in vogue. Funds like these gained 10.5% last year and are down just 1.7% in 2008, soundly beating the market in both periods, according to fund-tracker Hedge Fund Research.

One of the hottest variants is one of the simplest: so-called 130/30 funds. These generally invest $130 in stocks they think will rise in price, then bet against $30 of stocks the fund considers overpriced. In a rough market, this strategy can be appealing because if the market does fall, the fund still stands to make at least some money on the bearish bets.

Investment funds using this style, including mutual funds, could manage as much as $1 trillion in three years, according to Merrill Lynch, up from almost nothing just two years ago and $75 billion today.”

Brightpoint, H.I. G. Capital’s US-based Hedge Fund (over $800m AUM) is looking for a Miami-based Associate to focus on industrials and/or energy services. This long/short equities fund employs a private-equity-like approach to fundamental analysis with a substantial focus on primary research, in-depth company and industry knowledge, and detailed financial modeling. The fund’s investment strategy focuses on mid-term (12-24 months) and value-based investment opportunities, primarily among the mid- to small-cap stock universe.

The Associate will report to the fund’s PM and be responsible for generating and evaluating investment ideas while working in a team-oriented organization. (S)he must be able to think about stocks as companies and be passionate about understanding and analyzing businesses and industries. In building our team, we only seek applicants with a strong record of both academic achievement and work experience. The work experience that is most applicable to our investment approach includes strategic consulting, investment banking, private equity, and/or value-oriented investment management. An MBA and/or CFA are strongly preferred.

The successful candidate must meet the following criteria:
• Exceptional analytical and financial modeling skills (from both a quantitative and strategic perspective including background/experience in accounting and/or financial statement analysis)
• Resourceful at information gathering and have an ability to perform primary research
• Commercial instinct and solid business judgment
• Ability to advocate an investment judgment with imperfect information
• Strong interpersonal and communication skills
• Experience focusing on industrial/energy sector (e.g., transports, shippers, auto parts, chemicals, energy services, etc.) is preferred
• At least 5 years of professional experience.

Contact Info:   H.I.G. Capital, LLC, Miami, FL

About the Opportunity–

* Respected CPA firm specializing in the Securities Industry seeks a Hedge Fund Accounting Manager with 10 years of fund administration experience. Must also have an entrepreneurial spirit and a hands on approach to build an emerging department of a longstanding firm.

About the Company– S.D. Daniels & Company, P.C., New York, NY

* SDDCO is an esteemed CPA firm known for providing 25 years of expert support to the financial services industry. Our client base includes US institutional broker/dealers, investment firm entities of major foreign banks, asset management companies, FCMs, hedge funds, and private equity funds. SDDCO services include accounting, bookkeeping, brokerage startup and support, compliance consulting, and tax preparation. Visit us at http://www.sddco.com

About the Role–

* Calculate/oversee monthly NAVs for fund of funds and hedge funds
* Maintain/oversee accounting records needed to perform daily NAVs
* Reconcile/oversee brokerage/custodial accounts to underlying funds
* Prepare/oversee monthly account closings
* Calculate/oversee management and incentive fees
* Prepare/oversee financial statements, footnotes, partner capital statements
* Assist the external auditors for annual audit
* Act as liaison between clients and custodians/prime brokers

About the Requirements–

* Proficiency in hedge fund accounting software: Advent/Axys
* Proficiency in Microsoft Office: Outlook, Excel, Word
* Detailed knowledge of hedge fund investor accounting
* Experience with GAAP financial statement preparation with footnotes

About the Crew–

SDDCO people enjoy the:

* Work life balance
* Ultra low turnover
* Great growth potential
* High profile clients
* Respect from the industry
* Health and pension benefits

About You–

Send your resume, cover letter, and salary history.

Undertone Networks is a rapidly growing online advertising company working with blue-chip clients and top-tier publishers. We are seeking a VP Finance/Controller to directly manage all aspects of the company’s financial operations. The VP Finance/Controller will report to the Chief Operating Officer and will be responsible for overseeing monthly cycles including customer invoicing, vendor payments and payroll. Additional responsibilities will be financial reporting to management, budgeting and analysis, and management of auditor and banking relationships.

Qualifications:
The ideal candidate will have a minimum of 10 years experience in finance and accounting within the media, technology and/or publishing industries, plus recent experience managing a team of AR/AP administrators. Additional requirements include:
• 10-15 years of corporate finance experience with progressive growth in responsibilities
• Must have CPA certification
• Experience managing auditors and audit process
• Experience managing banking relationships
• Strong budgeting and financial analysis skills
• Strong management skills with demonstrated ability to meet deadlines
• Experience in high growth environment
• Media experience a plus

Compensation:
• Competitive base salary, commensurate with experience
• 100% Company-paid medical, dental benefits
• Optional vision benefits
• Life insurance
• Short and long term disability insurance
• 401K plan
• 3 weeks paid vacation
• Summer Fridays
• Transit Check participation
• A relaxed and fun atmosphere with casual dress environment

Interested and qualified candidates should submit their cover letter, resume and salary requirements to hrmanager@undertone-inc.com

Please list “VP Finance/Controller” in the subject line.

Undertone Networks is an Equal Opportunity Employer.

Hedge funds have an allure that attracts all financial experts who has belief in their ability and want to reach the top (while making a buck or two in the process). But then, the path to top of the tree and being a top hedge fund manager is not easy and the beginning is especially difficult for new comers. For every aspiring Hedge fund manager, one of the tougher assignments is to get the initial capital that can provide them with a stable platform. To get this capital is easier said then done but there are number of hedge fund seeders who are on lookout for the next big thing and willing to take risks on right managers.

These seeder firms have their own investment strategies as selection criteria. The article “Hedge fund Seeders: Looking for right fit” (http://www.finalternatives.com/node/3444) has detailed information. Some of the seeder funds go for specific strategies while others bet on the talent of the managers.

“Some seeding firms focus on plain-vanilla strategies, such as equity long/short. Simon Clowes, a partner at VCM Fund Management, said his firm specifically focuses on equity and derivatives strategies, including event-driven or special situations, statistical arbitrage and futures-based strategies. Last year, VCM entered into a joint venture with Robeco to launch an emerging manager platform and a fund of hedge funds, the Robeco VCM Emerging Managers Fund. The platform, which will allocate up to €20 million (US$29.5 million) per underlying manager, shares in a portion of the management and performance fees depending on how much seed capital, marketing or operational resources they’re looking for.”

“Other firms take a much more opportunistic approach to sourcing managers. For SkyBridge Capital, it’s all about talent. “In real estate, it’s location, location, location, and in the hedge fund industry it’s talent, talent, talent,” said co-founder Anthony Scaramucci, who added that the firm has been involved with cash-strapped managers as well as better-capitalized ones.”

Such kind of partnerships have positives for both the sides. The aspiring managers not only get the money but they also have the benefit of the experience and advice along with marketing expertise of the seeder funds. On the other hand, Seeder funds have opportunity to benefit from the fresh talent in the field and also possibility to get more returns for their investments.

It is being reported that the new hedge fund by Goldman Sachs has faced rough weather in January 2008. From the report on dealbreaker.com,

“The fund is down 6% for January, according to a source familiar with the results. Goldman Sachs Investment Partners fund recently raised $7 billion, according to a report in the Financial Times. The figure was substantially lower than the rumored $10 billion that had been whispered about in December but higher than the target of between $4 billion and $6 billion. Unlike Goldman’s quant driven offerings, GSIP is a stock-picking hedge fund—the first of its kind at Goldman. It is run by former global proprietary trading chief Raanan Agus and former U.S. prop trading head Kenneth Eberts.”

Equities markets everywhere have experienced a lean January so it is not surprising that the fund has taken a hit. But the more disappointing fact is that the fund has lost more then the broad based indices. The DJIA was down 4.7 per cent over the same period, the S&P 500 down 5.92 per cent and the Nasdaq down 10 per cent. This information about the indices is especially relevant in context of this fund as it is equity driven. This decline is not limited to Goldman though and has affected most of the equity driven hedge funds.

Bloomberg.com has some more insight into the numbers. “Hedge-fund managers who concentrate on picking stocks lost an average of 4.1 percent in January, the biggest monthly decline in more than seven years, as global equity markets tumbled, a Hedge Fund Research Inc. report shows.

Goldman Sachs Investment Partners (GSIP), which raised a record $7 billion for a new fund, dropped 6 percent in its first month, according to investors. Timothy Barakett’s Atticus Global Advisors fund, known for betting on only a dozen or so stocks, fell 12.5 percent. It was the worst month for stock hedge funds, which bet on rising and falling stocks, since a 4.3 percent loss in November 2000, when the collapse of technology shares was in full swing, according to a report yesterday by Chicago-based Hedge Fund Research, which tracks industry returns and money flows.”

This decline in the Goldman Sachs fund has insiders questioning on their strategy to go with first ever stock picking fund rather then a quantitative strategy based approach. We think though that it is too early to pass a judgment on the fund. It was only the first month and the markets have been tough so maybe after a few more months, we might see the true performance of this fund. Its too early to bet against Goldman’s capabilities…after all they managed to post record profits through the mortgage turmoil. So there is a strong process to measure risk and absolutely no shortage of capital to take on attractive risks.

Global Alternative Investment Firm is seeking a VP, Hedge Fund Group

The candidate will perform the following:

* Monthly NAV package preparation, which includes P&L allocations, income and expense accruals, performance calculations, Partner/Shareholder allocation calculations, including incentive and management fee calculations.
* Review/prepare annual financial statements and assist with the annual audits.
* Responsible for quarterly firm reporting which includes consolidation and exposure reports.
* Assist in providing supporting schedules for tax return preparations.
* Ad hoc reports/requests, as needed.

Compensation: $115K-$140K plus bonus

5-10 years of experience in an accounting or financial services firm

BA/BS required

Contact Info: Green Key Resources LLC, New York, NY

Since last year, there have been number of reports in the press on how the hedge fund industry has attracted a lot of attention from regulators. Hedge fund operators are learning that with greater exposure in press, there will come greater scrutiny from regulators. So it is no surprise that the industry decided to take matters in its own hand and set the course. A report in Wall Streat Journal (” European Hedge Funds Issue Disclosure Guides“) provides more information on this regard.

“A group of Europe’s largest hedge-fund managers issued voluntary best-practice standards that could prompt greater disclosure from the funds, ahead of a similar effort in the U.S.

The guidelines, announced yesterday and backed by industry leaders such as Marshall Wace LLP, GLG Partners LP and Man Group PLC, call for funds to disclose investment strategies and types of investments, including their use of derivatives. They also say funds should disclose more detail about — and follow best-practice guidelines concerning — operating practices such as their risk management and governance.

The standards include a provision for not borrowing stock solely to make use of its voting rights, for instance, and giving investors clear explanations of the total fees they collect. The report also clarifies some standards proposed in October regarding how hedge funds approach governance and valuation.”

This step seems sensible as it might allow the hedge funds to dictate the rules rather then take it lying down from regulators. Maybe the Hedge funds can get away with the disclosure system that they design instead of one imposed on them and it can be invaluable advantage in long run. But in reality, it seems that the regulators might have different ideas.

From the report, “Teresa La Thangue, a spokeswoman for the UK’s markets regulator, the Financial Services Authority (FSA), declined to comment on how the standards might affect future regulation. The U.S. initiative under the President’s Working Group on Financial Markets is expected to issue its proposals by the spring.”

The proposals from US and UK are expected soon and the hedge fund group that came with the directives will be hoping that the regulators take clue from their ideas.