Funds Hub

Money managers under the microscope

A mixed picture

Results from fund firms GAM and Jupiter this morning provide some interesting insights into the different drivers of the hedge fund industry.

GAM, which saw profits tumble last year as clients pulled out of its hedge funds, recorded net inflows into these portfolios for the first time in two years, showing that, despite market volatility and investor caution, there is money out there looking for a home and that a firm can still reverse its fortunes in this climate.

Jupiter, on the other hand, saw net inflows across its mutual funds but suffered a net 36 mln stg outflow in the first half from its hedge funds, showing that some funds are still losing hedge fund assets despite overall industry inflows.

There are plenty of drivers of flows in the industry at present – money has been coming in slowly, but generally to the bigger, better-performing firms, helped by the industry’s increasingly institutional client base. Meanwhile, Ucits funds provide a potential boost to the industry, but are they simply cannibalising offshore hedge funds’ assets?

Can Ucits help the struggling fund of hedge funds industry?

Funds of hedge funds have had a hard time since the onset of the credit crisis, what with the Madoff scandal, widespread gating and sidepockets and underperformance versus single-manager hedge funds in 2008 and 2009.

However, Ucits — onshore funds viewed as more transparent and more liquid — have been widely seen as a fresh injection of capital into the hedge fund industry and could prove a much-needed boost for funds of funds looking for a new client base to tap.

Morning line-up: Retreats, pressure and Everbright

News and views on the fund industry from Reuters and elsewhere:

RTR1SGF8Wild trading – WSJ

Druckenmiller ripples will be small – FT

The retreat from EM – Reuters

Everbright wants out of fund jv – Reuters

Oh.. the pressure! – CNN

Morning line-up: Oil!, Gartmore and the SEC

News and views on the fund industry from Reuters and elsewhere:

RTR1SGF8There will be blood… – Reuters

Gartmore deflects attention – WSJ

F&C finds a taker – Reuters

U.S. funds regulator skidaddles - WSJ

Paulson’s Goldman defense


As stock bets go it is no way the biggest and not particularly dramatic.

But the decision by Paulson & Co. to pick-up some 1 million shares of Goldman Sachs Group in the second-quarter may be some of the most fitting piece of Wall Street poetry to come out of this latest round of 13-F filings.

Of course Paulson’s fund will forever be linked with Goldman because it was the hedge fund at the heart of the Securities and Exchange Commission’s civil fraud case against the Wall Street bank. The SEC, in April, charged Goldman with failing to disclose that Paulson’s hedge fund had a hand in picking securities for a complex mortgage-related deal that the hedge fund was betting against.

from DealZone:

Schwarzman gaffe exposes DC-Wall Street rift

Blackstone founder and CEO Steve Schwarzman has long expressed concern that Washington was deaf to the concerns of Wall Street.

Now he's making headlines for a little tone deafness of his own after Newsweek reported that he recently told an audience that the government's private taxation proposals reminded him of  "when Hitler invaded Poland in 1939".