A handful of hedge fund launches each year grab headlines - usually those expected to raise billions, like one from billionaire Steve Cohen and another from Millennium's ex- bond chief, Michael Gelband. But there are many more fund launches that attract much less attention, with some of those failing to get off the ground at all. What does it take to launch a fund these days? We asked Wall Streeters who work in the space - namely those that work in capital introductions, introducing potential investors to fledgling start-ups. Here's what they had to say.
Goldman Sachs Group Inc. may not be the first name people think of when it comes to values-oriented investing. But the Wall Street titan is hoping to change that with its latest exchange-traded fund--and a little help from billionaire Paul Tudor Jones. The lender's asset management arm is starting an ETF that only invests in U.S. companies that engage in "just business behavior," as defined by the JUST Capital Foundation, a non-profit organization co-founded by Jones, according to a regulatory filing.
The former hedge-fund manager says the billionaires who lobbied to keep the loophole ought to "be ashamed. ": The GOP's proposed tax plan keeps the so-called carried-interest loophole that benefits managers of hedge funds and private equity funds. Druckenmiller, who retired from managing money for outsiders seven years ago but still invests his own money, told CNBC in a taped interview aired on Tuesday that he finds this to be "outrageous." Carried interest is the money manager's cut of the fund's profit.
Here's a paradox for financial advisers to consider: As it relates to traditional indexing, we would never invest in an active manager in long-only equity without benchmarking them to the relative index. But in the hedge fund world, we've accepted that returns are all the result of idiosyncratic manager skill. As more and more hedge fund data has become available and academics started to analyze hedge fund returns, that long-held belief has been tested.
OpenDoor Securities ("OpenDoor"), the first all-to-all marketplace for off the run Treasuries and TIPS, has appointed Hicham Hajhamou, formerly Head of Rates and FX Trading at quantitative hedge fund AQR Capital Management, as Managing Director, responsible for overseeing OpenDoor's Treasury Inflation Protected Securities (TIPS) business. In his new role, Hicham will report directly to President & CEO, Susan Estes. Hajhamou started his career at Lehman Brothers where he spent over six years as the VP of Rates and Mortgage Trading. He then traded rates at BNP Paribas and Pierpont Securities for six years, before joining AQR.
Hedge fund liquidations worldwide outpaced starts for seven consecutive quarters through June. : New York: John Burbank's Passport Capital, which shot to fame for its lucrative bet against sub-prime housing ahead of the global financial crisis, will shutter its flagship hedge fund after returns slumped.The fund's "returns over the past two years are unacceptable and cause me to rethink how to manage money in this environment," Burbank wrote in a December 11 letter to investors, the contents of which were first reported in the Wall Street Journal.
LONDON, Dec 11 (Reuters) - Hedge fund managers have started to take profits from the big rise in crude oil and refined products prices since June now the rally has lost momentum and inventories are showing signs of stabilising.
Hedge fund manager Michael Novogratz said a rally in futures prices helps justify interest in bitcoin from large-scale investors, and that they'll be expecting substantial gains. "The market trades like it wants to go up, not down," Novogratz, founder of Galaxy Investment Partners, said Monday in an email. "We are in a speculative mania and my sense is we are still fairly early." He compared the market capitalization of bitcoin, at less than $300 billion, to that of gold at $7.7 trillion.