Money managers under the microscope
News and views on the asset management industry from Reuters and elsewhere:
French funds of hedge funds struggle to recover from the crisis – Financial News
Hintze fund snaps up farm – The Land
Hedge funds ready for takeover surge – Financial News
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.
News and views on the hedge fund industry from Reuters and elsewhere:
Big league hedgies buy banks – Reuters
Saving the world, one trade at a time – Economist
Message to FoHFs: Work harder; cut fees – Reuters
Gulf cash set to flow? – Bloomberg
The firm, whose assets stood at more than $7 bln two years ago - but later saw them slump due to outflows and performance losses - saw a recovery in H2 of $100 mln to $1.37 bln.
The fund of hedge funds concept took a serious knock last year with Bernard Madoff’s $65 billion fraud, leading high net worth investors to pull out money over concerns that the due diligence hadn’t been quite as diligent as one would hope.
Even managers who weren’t exposed to Madoff had to calm client fears. This has prompted the bigger, more institutional groups to seek ways of gaining more control over assets that the underlying managers are running.
Today’s update by S&P Fund Services on its ratings for seven funds with exposure to Bernard Madoff’s fraud shows just what a blow to the fund of hedge funds industry the scandal has been.
S&P said that five funds of hedge funds that invested in Madoff and whose ratings it placed under review in December when the scandal broke have now been downgraded to “not rated” — Bonhote Alternative Multi-Arbitrage, DGC Pendulum, Dinvest Concentrated Opportunities, Dinvest Total Return and RMF Four Seasons.
Crosby Asset Management’s high-profile deal to buy up funds from collapsed asset manager Forsyth Partners in 2007 just looks worse and worse.
Another day and another report of a company looking to exit its hedge fund operation.
According to a report in today’s FT, Germany’s Commerzbank has put its $900 million fund of hedge fund manager Comas up for sale, although it may close it down if no buyer is found.