Money managers under the microscope
It is not often that Reuters journalists carefully take down the words of an investor who regularly consults an astrologer, but then not every investor recorded a 32 percent increase in his portfolio in 2008.
As head of Eclectica Asset Management, Hugh Hendry cuts a figure not often seen in modern-day financial investing: a besuited Malcolm McLaren-esque counter-culture figure rather than a pointy-headed quant analyst.
But some executives in the private equity and hedge funds industries feel they are getting beaten with the same stick by politicians and the public, despite feeling relatively blameless in this crisis.
BC Partners managing partner Andrew Newington, speaking at the Reuters Hedge Fund & Private Equity Summit in London today, explained.
The once-booming hedge fund industry has shrunk rapidly over the past 9 months to roughly $1-$1.4 trillion, as investors have pulled out their cash following some pretty lacklustre returns.
However, according to Mark Kary, chief executive of Polar Capital, the industry never really deserved to have grown to the best part of $3 trillion in the first place.
Hedge fund managers may get a lot of stick in these troubled times, but there are some that more traditional investors may want to listen to.
The 53 year-old American, no relation of Hank, is having a good financial crisis. In 2007 he pulled off one of the most lucrative gambles in investment history — amassing a personal fortune of nearly $4 billion betting against the sub-prime mortgage sector.
Crosby Asset Management’s high-profile deal to buy up funds from collapsed asset manager Forsyth Partners in 2007 just looks worse and worse.
For all the political noise about hedge fund regulation, today’s Turner review looks like a relatively easy set of rules for the industry to stomach.
In his 126-page document, mostly about the banking sector, FSA chairman Adair Turner says the watchdog will demand more information from hedge funds and says regulators should be able make rules in areas such as capital and liquidity if hedge funds start to pose systemic risks or become “bank-like” in their activities.
from Global Investing:
Even though the former Nasdaq chairman is under arrest thousands of miles away from this discreet financial centre nestled between Belgium, France and Germany, his presence was omnipresent. Fund managers just can't stop mentioning him.
By Huw Jones
Hedge funds are nothing if not optimistic – they have to be in the current climate.
While holed up in an English country resort last weekend, finance ministers and central bankers from the G20 group of countries agreed that the $1.4 trillion hedge funds sector should be made to register, be directly supervised and provide information about their holdings to regulators who track risk in markets.
from Global Investing:
Another in our series of one-minute managers. This time it is Ken Kinsey-Quick, who heads up multi manager investing at Thames River Capital. He reckons the old days of buying and holding equities over the long term are gone for good. Is he right?