Money managers under the microscope
News and views on the hedge fund sector from Reuters and elsewhere:
Ex-Centaurus HK chief starts new fund - Bloomberg
Reprieve for Cohen? – Reuters
Hedgies’ impact on energy trading – Commodities Now
Investors pour in billions – Reuters
Citi taps the UCITS rush – FINAlternatives
HedgeFund.net, which tracks industry performance and trends, in a report released this week estimated that total hedge fund assets rose more than 2.5 percent, or $47 billion, to reach $1.89 trillion at the end of last month. Nearly half that growth came from net inflows of $19.6 billion.
Hedge fund stories from the past 24 hours from Reuters and elsewhere:
Economies face hedge fund attacks - Telegraph
GLG Partners has confirmed positive client money flows are back on the agenda, reporting net sales of $2.2 billion in the second quarter in a trading statement which sparked a rise in the share price. The company also reckons strong performance among its funds has set the scene for more to come.
Barclays Capital last month predicted net inflows could reach as much as $50 billion in 2009, and GLG shows the numbers are starting to come through to support that theory. Of about 300 investors, BarCap found that some 80 percent were expecting to move back out of cash and into hedge funds this year.
Hedge fund firms are once again positioning their businesses for better times ahead — lending further weight to anecdotal evidence that investors are turning back to the industry.
A last-minute addition to the line-up in Monaco has been GLG’s senior managing director Pierre Lagrange, a relatively low profile figure even though the firm is listed on the New York stock exchange. Lagrange was not on the conference’s original programme and only agreed last week to speak on “the pros and cons of running an alternative asset management business as a public company” today.
GLG has had its share of troubles in the past, including the Philippe Jabre scandal, last year’s departure of star manager Greg Coffey and a hefty chunk of investor redemptions. Perhaps Lagrange is taking on a more public role as the firm now feels it has a more upbeat story to tell. Having pulled off a number of hirings and the acqusition of the UK fund management unit of Societe Generale, the firm said this month that its hedge funds had risen 11.2 percent in the five months to May 31. Meanwhile, expansion into the U.S., Asia and the Middle East is also planned.