Funds Hub

Money managers under the microscope

In Stamford, the Diamondback Special is still on the menu


The hedge fund community is still shaken up over the FBI raids in Stamford, New York and Boston last week — but now that the excitement has died down, and hedge funds Level Global Investors and Diamondback Capital Mangement have said they are not “targets” of the investigation, will life ever be the same?

Some say the hedge funds have a long road ahead of them as they will have to fight against the reputation damage from the raids as they try to return to business as usual. But it appears they will have the support of their friends nearby:

Highbridge loves JPMorgan, but doesn’t want to move in


Glenn Dubin, co-founder of $27 billion hedge fund Highbridge Capital Management, says he feels lucky that when he chose to partner with a bank it happened to be JPMorgan Chase & Co. The bank emerged from the crisis as the strongest bank in the world, while hedge funds that had been connected to Lehman Brothers were left struggling.

Speaking at the Bloomberg Hedge Funds 2010 conference in New York on Thursday, Dubin said that he thinks JPMorgan is a great partner, but that Highbridge still values its independence and would never move from its offices on West 57th Street into the bank’s glitzy Park Avenue headquarters.

from Reuters Investigates:

BP – Tough to price in the consequences

Two graphs tell an apparently conflicting story: analysts forecast a steady recovery in BP's dividends, but its valuation remains weak. Tom Bergin's close look at the potential costs facing BP as a result of its Gulf of Mexico oil spill helps explain the latter, but less so the former.

dividendsrange  pricebook

from Reuters Money:

Coming soon: the loud thud of a gold bust

VIETNAMSome time in the future the price of gold will crash and it won't have a fairy-tale ending for the millions of investors who piled on in recent months.

If I could tell you when gold was going to bust, I'd likely be wrong or bigger than Warren Buffett, so I won't even try. Just be incredibly cautious now. There are too many signs that gold is frothier than a Starbucks cappuccino.

What it takes to build a hedge fund


Fledgling hedge fund managers should expect sleepless nights, less time with their families, and intense competition for capital, as the industry has grown even more competitive after the financial crisis,  according to Lars Kroijer, a former hedge fund manager who says he doesn’t think he would run a fund again.

Kroijer, who writes about his six years at the helm of the $1 billion London-based hedge fund Holte Capital in the recently published  ”Money Mavericks: Confessions of a Hedge Fund Manager” told Reuters in an interview on Wednesday that new hedge fund managers are fighting an uphill battle to get enough capital to start their businesses, and you couldn’t start a hedge fund today with just three guys as he did in 2002.

Man and Lion


Man Group shares were down this morning after last night’s news that AHL dropped 1.76 pct last week, taking losses since Nov 1 to nearly 4 percent. Broker Oriel estimates this leaves AHL 8 percent off its high-water mark.

“November’s performance will disappoint those who expected AHL to string together a good run of investment returns. The company have blamed central bank interventions since the credit crisis for AHL’s poor returns,” Oriel said.