Funds Hub

Money managers under the microscope

from Emily Chasan:

Fortress CEO: The black box is dead

     Famously secretive hedge funds may have to stop being so secretive if they are to continue attracting all that money from their wealthy clients.

Chief executive of Fortress Investment Group, the $41.7 billion hedge fund and private equity group, said investors are demanding a lot more transparency these days.

"The era of the black box has passed," Fortress chief executive Daniel Mudd said at the Barclays Capital Global Financial Services Conference in New York on Tuesday.

"Those investors I've talked to have made it pretty abundantly clear that there's no such thing as too much insight," Mudd added.

Changing the model

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Man Investments has invested another $50 mln into a start-up hedge fund, showing that, for those prepared to take the perceived risks, there may be good opportunities to back talented managers at the moment.

rtr25hd5The firm’s RMF Global Emerging Managers seeding fund has backed Hong Kong-based Minerva Macro fund, run by ex-Fortress manager Stanley Ku, having last month put $50 mln with 5:15 Capital Management’s flagship fund.

Madoff shadow looms over UBP

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MadoffWhile much of the hedge fund industry starts to draw breath and consider better times ahead, those firms tainted by the Bernard Madoff ponzi scheme continue to suffer.

UBP — which had exposure of about 1 billion Swiss francs to Madoff’s firm — on Wednesday said hedge fund assets had slumped by 20 billion Swiss francs in the first half and are now more than half the level achieved at the peak in June 2008. To be fair, the private bank isn’t giving up easily and has hired in new managers to liven up its offering.

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