Funds Hub

Money managers under the microscope

It’s not just the leverage

If private equity is anything to go by, there is plenty of hope for hedge funds operating in the new, post-Lehman world of lower leverage.

RTXQA97A study by the Center for Entrepreneurial and Financial Studies and Capital Dynamics, out today, finds that two-thirds of private equity’s value creation is down to improving companies it owns or rising market multiples.

Morning line-up

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Hedge fund stories from the past 24 hours from Reuters and elsewhere:

rtxcg5sSEC war on hedge’s derivatives – NY Post

Hedge funds could nab $11 bln from Lehman – Alphaville

Galleon brought down by beauty queen – Huffington Post

Hedgies pump up stock exposure – Reuters

Hedge fund giants get gold bug – WSJ

Citadel stronger in ’09

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2009 has proved so far to be a bumper year for hedge funds — not least due to a huge rebound in the price of most assets — helping eradicate at least some of the bad memories of last year.

rtxeg3fCitadel’s Kenneth Griffin has been a case in point.

An article in today’s Wall Street Journal (which dubs him a ‘titan’ and a ‘hedge fund king’), says Citadel made $5 billion in trading profits in the first nine months of this year as markets recovered.

Out for the count

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A bit delayed this, but drawing your attention to Parvathy Ullatil’s entertaining look at hedge fund managers going at each other with fists and gumshields, rather than outlandish claims of stratospheric bonuses. Photos from Reuters pictures.

Steve 'Dynamite' Davidson from JP Morgan is introduced before a boxing match during the Hedge Fund Fight Nite in Hong Kong October 29, 2009. Twelve financiers participated in six charity fights on Thursday, watched by 800 of their peers from the corporate and finance world of Hong Kong. REUTERS/Bobby Yip (CHINA)It was the kind of opportunity loss-stricken investors probably wished for in the worst months of the financial crisis: getting a bunch of hedge fund managers in a boxing ring and pummeling them. 

from Summit Notebook:

Private bankers chanting new mantra

Private bankers still getting their ears bashed from clients enraged about massive portfolio losses now are chanting a new mantra.

    Murmur along with me, those seeking inner peace and appeased clients: the word is “holistic".

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