Money managers under the microscope
Islamic funds may well be ”the most dynamic part of the Sharia-compliant sector”, supported by with increasing interest from deep pocketed investors, but if you are a hedge fund manager, Banque Sarasin reckons you have no hope of getting a slice of this Sharia pie.
The Sarasin Islamic Wealth Management Report 2010 says many Islamic investors cannot be persuaded hedge funds are linked to the real economy (one of the tenets of Islamic finance), plus investors are discouraged by short selling which, strictly speaking, is also prohibited.
And before you hedgies say you know a Sharia scholar or two who is comfortable with signing off a fatwa, the necessary backing to any Islamic product, Sarasin says the “forbidden” label still sticks to hedge funds — “effectively stopping the development of this sector”.
“Despite efforts since 1997, the sector remains small. To date, there does not appear to be an Islamic hedge fund which has substantial assets under management.
Hedge fund stories from the past 24 hours from Reuters and elsewhere:
SAC invests in star trader’s fund – FT Alphavile
3A launches Ucits III fund of hedge funds – Opalesque
SilkInvest launches fixed income frontier fund - HedgeCo.Net
Bearish funds set for redemptions, Cramer predicts – NYT DealBook
BBVA and Newedge form Altura joint venture – Hedgefund Journal
Isabella of Castile was a controversial woman. A woman who made history for herself and her country. She has been called saint and a tyrant, but never before a hedge fund manager.
High-profile hedge fund manager Philippe Jabre has lent his voice to the view that equity investors have more to play for.
The former GLG trader, probably better known for a record FSA fine of 750,000 pounds for market abuse than for his strong track record, thinks there is “money to be made”in bombed-out stocks in sectors such as financials, energy and industrials.
from Global Investing:
In what it must hope will be seen as a carefully considered and constructed response to the European Commission's hastily drafted and ill-thought-out proposed directive, the European Private Equity and Venture Capital Association -- the voice for private equity in Europe -- calls for the threshold for reporting on its companies' activities to be lifted to 1 billion euros assets under management from 500 million.
U.S. hedge fund boss John Paulson had been sitting on a 300 million pound profit on his bet against British bank Barclays just three months ago, but by holding on for too long has seen most of that gain wiped out.
Sheltering from the credit crisis in so-called defensive stocks could prove a disappointment to investors and a great opportunity for short-sellers, according to Liontrust hedge fund manager James Inglis-Jones.
Inglis-Jones, who runs a hedge fund for Liontrust and who recently took on the First Income fund after the departure of star manager Jeremy Lang, has short positions in sectors such as tobacco and pharmaceuticals and has recently added more.
By Simon Falush
So you thought safe-haven pharmaceuticals and food producers were a safe place to shelter your assets?
Think again, says Crispin Odey, the well-known hedge fund manager who thrives on a contrarian approach to equity investing. He tells Reuters that defensives could be the next target for short sellers.
It may not have been a massive surprise, but ECB President Jean-Claude Trichet had an unwelcome message for hedge fund managers today.
The current crisis is, apparently, “a loud and clear call” to roll out regulation to all important market players, “notably hedge funds and credit rating agencies”.
And in his latest letter to investors, Hendry has smartly rebuffed any attempt to ‘save’ him from his bond investments.