Funds Hub

Money managers under the microscope

Morning line-up

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

rtxcg5sHedge fund investor goal: An exit plan -WSJ

Hedge fund compensation; New funds, new tricks – Seeking Alpha

Hedge funds gain in August – Reuters

Alpha advertising - FT Alphaville

From the ashes: Can listed hedge funds rise again? – CityWire

Morning Line-Up

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

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Some hedgies still feel effects of 2008 redemptions – Dow Jones

HSBC seeks to fill Lehman void as hedge fund broker – Bloomberg

What investors want from hedge funds now- Business Week

Guard dog shows teeth

You’ve got to hand it to Cerberus.

While we dutifully write stories about a new beginning for the hedge fund industry, marked by transparency at levels never seen before and fund structures designed to satisfy those burned by the credit crisis, the firm named after the guard dog at the gates of Hades comes up with its own tactic — lock up investor money for three years.

You might think that this is the last thing investors want, but it has a curious logic.

GLG pulls in punters

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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.

rtrql1xBarclays 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.

Brighter times ahead?

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Funds of hedge funds have had a tough time recently.

rtr257enLosses 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.

GAIM 2009: Troublesome teens

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Growing up can be a painful experience for teeangers with many battles and excesses along the way.

 

'Adolescent' industry faces hurdlesThe once young and spritely hedge fund industry is now entering its problematic adolescent years and starting to face up to issues that once seemed fairly unimportant.

Investors won’t forget

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It seems that investors will have long memories of how hedge funds behaved in the bad times when it finally comes to putting money back into the industry again.

rtxbbinThe wipeout of 50, 60 or 70 percent of the industry that was predicted by some commentators last year hasn’t quite happened, partly because redemptions have slowed dramatically of late, partly because some smaller firms are still limping along in the hope that conditions will improve soon, and partly because many funds imposed gates last year, limiting investors’ ability to get their money out.

No tragic ending at Toscafund

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Puccini’s tragic opera Tosca ends with the heroine, realising she has been tricked by the evil Baron Scarpia and that her lover has been executed, hurling herself to her death from a castle parapet in despair.

rtr20bsmHowever, despite last year’s tragic performance — an approximately 60 percent plunge in the flagship fund after holdings such as Redrow and Taylor Wimpey fell sharply — it would seem Martin Hughes has sidestepped such an unhappy ending at Toscafund, where redemptions have tailed off and fund performance is strong once again.

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