Funds Hub

Money managers under the microscope

Reuters reporters head for the engine room

Photo

Reuters will be holding a European funds summit in Luxembourg this week, piggy-backing on the ALFI spring conference. It’s a useful opportunity to take stock of a startling couple of years for the industry, as well as looking ahead to the shape of the sector for the years to come.

We’ll be speaking to a host of senior industry players from both sides of the fence, from the top performing fund managers to the people that make the industry tick; Luxembourg got a jump on the rest of the fund market by being the first to leap on the UCITS train back in 1988 and now houses much of the sector’s administrative machinery as it becomes truly cross-border.

RAB on the way back up

A positive trading update and finally a rise in assets from RAB Capital this morning shows that even hedge fund firms badly hit by the credit crisis are on the way back up.

RTXR8CZThe firm, whose assets stood at more than $7 bln two years ago - but later saw them slump due to outflows and performance losses -  saw a recovery in H2 of $100 mln to $1.37 bln.

Citadel stronger in ’09

Photo

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.

Morning line-up

Photo

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

rtxcg5sWill hedgies switch to Bahrain? – Seeking Alpha

Event driven revival – FT

EU assault on hedge fund pay – Reuters

Blochet quits Brevan – Telegraph

Madoff yard sale: Baseball Jackets, coolers and fishing tackle – Reuters

SFO probes Dynamic Decisions

Photo

Most investigations into hedge fund fraud or other wrongdoing during the credit crisis have been based in the U.S., but there are signs that, despite its well-regarded framework of hedge fund managers regulation, London is seeing some activity too.

rtr26mbdToday the Serious Fraud Office announced it had opened a criminal investigation into Dynamic Decisions’ Growth Premium Master fund after a referral by the FSA and a number of complaints about the fund management firm.

Looking ‘Bleak’ for Madoff investors

Photo

In Charles Dickens’ novel, Bleak House, a long-running dispute over a legacy only ends when the estate’s assets have been completely devoured to pay the army of lawyers involved in the litigation. Delighted, the lawyers move on to the next case, while one heir of the estate ends up a nervous wreck, his assets all gone.

Madoff investors may feel they are in a similar predicament, watching on helplessly as the scant assets so far recovered dwindle while liquidators and trustees wrangle over how to apportion them.

  •