Money managers under the microscope
There has been plenty of bad news surrounding Man Group in recent months.
Assets at end-June were $43.3 bln, compared with $79.5 bln a year before. Flagship managed futures strategy AHL, which not so long ago was boasting some superb-looking performance figures in spite of the credit crisis, is down 5.1 percent over the past year after a poor first half of 2009.
And Man Group’s shares have underperformed the market by 44 percent over the past year, though they have outperformed during 2009.
However, according to Neptune fund manager Jeremy Smith, who has recently bought shares in Man Group, equity investors are being too downbeat about the industry’s prospects.
“A lot of fund managers have written off the hedge fund industry, but from anecdotal evidence it seems a lot of money is being raised. Valuations (in the sector) are extremely low.”
Further signs that, for those with cash to invest, there could be some great opportunities to invest in hedge funds.
Man Group’s RMF Global Emerging Managers portfolio has invested $50 million in 5:15 Capital Management’s* flagship fund and says the opportunity set has never been better.
David Malamed, partner at international law firm Gide Loyrette Nouel, talks to Hedge Hub about the positives, as well as the negatives, of the EU’s draft law on Alternative Investment Fund Managers.
Funds of hedge funds have had a tough time recently.
Losses of 21.37 percent last year helped persuade clients to withdraw a net $50 bln in the fourth quarter and a further $85 billion in the first quarter of this year, according to HFR.
Funds of funds weren’t helped either by the speed with which private clients — who often hold these portfolios rather than the underlying fund – pulled out of the asset class.
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.
Growing up can be a painful experience for teeangers with many battles and excesses along the way.
Convertible arbitrage is the hedge fund trade of the moment, with top-ranking returns of 12.58 percent so far this year, but there could be more to come.
The strategy, in which managers usually buy a convertible bond and short the underlying stock, is proving particularly profitable because the bonds are rebounding from the battering they took last year. The strategy lost 31.59 percent, the second-worst performing strategy, in 2008 as funds scrambled to sell their positions in what had become a crowded trade.
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.