allocators push for specifi ed risk control checks ... · one part of hedge fund management just...
TRANSCRIPT
www.hfmweek .com
SCHRODERS IS EYEING the launch of an AIFMD platform to sit alongside its Ucits GAIA platform offering, HFMWeek has learned.
Andrew Dreaneen, head of Schroders GAIA product & business development, said the asset manager sees huge oppor-tunities to distribute hedge fund products via an AIFMD plat-form following the introduc-tion of the EU regulation on 22 July, particularly as US managers assess their distribution options in the region. Any launch would join its $4.8bn GAIA division.
Schroders, which has no spe-cific timeline for a potential AIFMD launch, is also looking to further expand its Ucits plat-form. A new Ucits fund launch is scheduled for early next year and the asset manager is in talks with around 20 managers about a small number of future launches.
Dreaneen points to equity long/short, particularly US, and US high yield credit as are-as where the platform may look to launch new funds as well as a potential multi-strategy offer-ing and a further event-driven fund, especially if its Paulson merger arbitrage fund contin-ues its rapid asset growth. The fund launched in April and has over £370m ($596m) of assets.
Venture would complement firm’s booming alternative Ucits presenceBY ALEX CARDNO
03
COMMENT WE SHOULD BE PAYING GREATER ATTENTION TO EMIR 14
Schroders eyes new AIFMD fund manager platform
MYTHBUSTERSREGULATORY CHANGE CAN OFTEN LEAD TO UNHELPFUL GOSSIP. HFMWEEK TURNS SLEUTH AND SEPARATES FACT FROM FICTION
FEATURE 21
The long and the short of it ISSUE 353 11 September 2014
COMPLIANCE 09
LARGE MANAGERS BOW TO AUDIT DEMANDSAllocators push for specifi ed risk control checks
CLOSURE 03
JAE CREDIT CLOSURE SPARKED BY DEPRESSION DIAGNOSISLiquidation as ex-Moore manager Miller treated for illness
NEWS 05
HEDGE FUNDS BET ON “TOO CLOSE TO CALL” SCOTLAND VOTEManagers narrowly expect a Scottish ‘No’ as polls tighten
LONE STAR CIO
FEATURE 17
Texas ERS CIO Tom Tull tells HFMWeek what he looks for in an alternatives investment
One part of hedge fund management just got easier:Finding the right advice to fit your size.
Whether you’re building a hedge fund from the ground up or managing a large global fund platform, finding the right assistance—from launch to globalization—just got easier.
Combining the resources and experience of KPMG and Rothstein Kass means superior service, market-leading insights and global reach. All under one roof.
For more information, contact Chris Mears [email protected]
kpmg.com/us/alts
1 1 - 1 7 S E P 2 0 14
NEWS
H F M W E E K . CO M 3
If you have a news story for HFMWeek, please email: [email protected]
At present, around 75% of Schroders’ hedge fund busi-ness is in Europe, while the US and LatAm regions account for around 15% of its hedge fund offering.
Schroders’ GAIA platform currently includes US equity long/short Ucits manager Sirios, while other managers on the platform include Egerton and Avoca. It liquidated a CQS fund on the platform in April due to low asset growth.
Both the Sirios and Egerton funds have capacity constraints with the former sized at $2.7bn and the latter at $1.1bn, as of July. Avoca has €395.8m ($510.3m) AuM as of July.
It also offers three internally-managed funds: Schroder GAIA Cat Bond, Schroder GAIA QEP Global Absolute and Schroder GAIA Global Macro Bond.
CONTINUED FROM PAGE 1
ABD Investment Management 5Balyasny Asset Management 7BlueBay Asset Management 6Brevan Howard 6Cazenove Capital 10Cheyne Capital 7Cloverdale Capital 11Eclectica Asset Management 6East Lodge Capital Partners 5Fortress Investment Group 7JAE Credit 3Graham Capital 10Highside Capital 11Horseman Capital Management 10HSBC Asset Management 10Kames Capital 10Kite Lake Capital Management 7Marshall Wace 8Moore Capital Management 3, 6NuWave Investment Management 10Och-Ziff Capital Management 8OVS Capital 7Peak6 Advisors 11Pharo Management 6, 8Sanditon Asset Management 10Sciens Capital Management 5Schroders 1Silver Ridge Asset Management 5Spring Valley Asset Management 10Taconic Capital 8
FUND MANAGER INDEX
I N T H I S
I SSUE
JAE CREDIT MANAGEMENT has closed after CIO Robert Miller, who has managed money for Moore Management and James Caird Asset Management, was diagnosed with depression.
The New York-based firm, whose flagship JAE Credit Fund has returned around 8% since launch-ing in February 2012, took the decision in early July, according to a statement issued to HFMWeek.
“Mr Miller has been diagnosed with depression, for which he is being treated. We look forward to his continued recovery and eventu-al return to work,” said JAE director John Demaine.
“The decision to close the busi-ness was made in consultation with our investors and followed medical advice that Robert Miller should take a break from work for several
months. Acting on this advice was the sole reason that JAE and its investors agreed it made sense to close the business,” Demaine added.
The firm said its fund managed around $145m when the decision was made and has since returned almost all assets to investors.
JAE emerged in 2012 after the closure of James Caird Asset Management, a $1.6bn credit hedge fund led by Tim Leslie – itself a spinout from Louis Bacon’s Moore Capital, where Leslie and Miller previously worked.
British charity Mind launched the City Mental Health Alliance to promote awareness of mental health issues in the industry last year. Dr Lisa Wilson, a chartered psycholo-gist with London-based City Psychology Group, said depression was still considered “taboo” despite
increasing cases among financial services professionals.
“If you’re working in a high-pres-sure, money-related environment, you become accustomed to the life you’re living, and anything that threatens that potentially becomes taboo, particularly when it’s some-thing we can’t see.”
Chris Goodeve-Ballard, due dili-gence chief at investment consultant Aon Hewitt, told HFMWeek they “don’t specifically ask about health” but would consider any factors that arose in background checks.
“There would be concern about a manager’s stability, and that is something we’re not qualified to assess. We’re acting on behalf of our clients, who need us to make good decisions for them, so we have to take that into account.”
Diane Miller, principle at Mercer, said: “When we’re doing due dili-gence we want to speak to the key decision makers in a firm to see how they work, and also what support mechanisms they have in place.”
[email protected]@[email protected]
CLOSURE
JAE Credit closure sparked by depression diagnosisLiquidation as ex-Moore manager Miller treated for illness
T here appears to be no stopping the growth of liquid alterna-tive strategies. New investor research from Deutsche Bank
predicts a 44% increase in net inflows over the next 12 months to nearly $50bn.
The bank’s research of hedge fund managers suggests 42% currently offer a liquid product and a further 34% are considering such a launch (p.15).
This surge of interest was debated at last week’s HFMWeek breakfast briefing event in London where panellists predicted strong continued growth due to an almost insatiable hunger amongst European investors for alternatives Ucits vehicles (p.11).
Of course not all strategies will work in a Ucits format and managers need to ensure they do not cannibalise existing offerings, can handle launch costs and have achievable plans to grow funds to a viable size. But for managers that get their strategy right there could be huge rewards in com-plementing offshore vehicles with liquid funds.
Schroders is one firm to have ben-efited from growing investor demand for alternative Ucits with its GAIA
platform seeing large inflows into a number of hedge fund strategies, notably its $2.7bn Sirios US Equity fund. This week’s issue reveals the asset manager is eyeing an AIFMD platform launch to complement this Ucits platform (p.1). With its large distribution resources across Europe, such a move would receive keen inter-est from hedge funds looking to be involved, particularly non-US manag-ers assessing their European presence post-AIFMD.
Elsewhere, JAE Credit Management has closed its doors after CIO Robert Miller, who has run money for Moore Management and James Caird Asset Management, was diagnosed with depression (p.3).
As well as highlighting key man risk the move is also a timely reminder of the huge pressures managers can face.
The firm should be praised for its openness about the diagnosis. Mental health issues are far more prevalent than many realise and the more people are open about such illnesses the more likely we are to remove the unnecessary stigma that still exists in some quarters. We wish Robert all the best in his recovery.
EDITOR’S LETTERBY PAUL McMILLAN
@mcmillan_paul
P A G E
I N S I G H T
1 1- 1 7 S E P 2 0 144 H F M W E E K . CO M
MAR
KET
MON
ITOR
BEN
CHM
ARKS
HIG
HS&
LOW
SINDEX PERFORMANCE 8 Aug - 8 Sep 2014 (%)
FTSE 100 NASDAQ S&P500 HFR INDEX
YTD RETURNS SOURCE: HSBC ALTERNATIVE INVESTMENT GROUP
HEDGE FUNDS
Pershing Square Intl Ltd
26.11%Chenavari Toro Capital
19.21%CC Asia Absolute Return Fund
-18.89%Rubicon GlobalFund
-23.56%
HIGH
LOW-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
08/0904/0902/0929/0827/0825/0821/0819/0815/0813/0811/08
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
2013Analyst/Associate VP/Director Partner/MD
2012 2014 20132012 2014 20132012 2014
1,300
1,400
1,500
1,600
HEDGE FUND PAY SOURCE: EMOLUMENT.COM AVERAGE FIGURESLondon-based partners and managing directors have seen total compensation more than halve this year with bonus cuts meaning the average pay packet has shrunk from £1.6m ($2.7m) in 2013 to £660,000 ($1.1m). A big drop in bonuses hit pay packets for senior staff with the average bonus falling from around £1.2m ($2m) to £459,000 ($760,605), according to real-time salary data specialist emolument.com. However, despite a drop in total compensation levels for senior staff, more junior levels saw an increase. Employees at the analyst/associate level saw total compensation almost double from £90,000 ($149,139) to £175,000 ($290,037). At the vice president/director level total average pay rose from £196,000 ($324,842) in 2013 to £226,000 ($374,562) in 2014.
Salary £79,000Bonus £71,000Total £150,000
Salary £117,000Bonus £190,000Total £307,000
Salary £185,000Bonus £300,000Total £485,000
Salary £54,000Bonus £36,000Total £90,000
Salary £103,000Bonus £93,000Total £196,000
Salary £361,000Bonus £1,236,000Total £1,598,000
Salary £69,000Bonus £106,000Total £175,000
Salary £106,000Bonus £120,000Total £226,000
Salary £201,000Bonus £459,000Total £660,000
BASE SALARY
£ 00
0’S
BONUS
H F M W E E K . CO M 5
Former Citi duo plan Silver Ridge start-upA PAIR OF FORMER Citigroup executives, including the US bank’s former global head of FX, have named their new global macro hedge fund firm Silver Ridge Asset Management.
Anil Prasad, who left his FX & local markets role earlier this year, is CIO of the new venture, which is currently in talks with potential investors ahead of a planned launch in the first quarter of next year.
He has teamed up with Farhang Mehregani, who was chief invest-ment officer at Sciens Capital Management, where he spent almost two years until leaving in May. He had earlier spent 15 years at Citi.
Prasad reportedly joined Citi in 1986 and remained until earlier this year, apart from a three-year spell with UK bank NatWest between 1997 and 2000.
The pair, who are yet to receive regulatory approval for Silver Ridge, plan presences in London and New York but say likely headcount depends upon fundraising success. They have not yet hired other team members.
Silver Ridge’s service providers include Schulte Roth & Zabel, Ernst & Young, Throgmorton and ACA Compliance. It has yet to appoint its administrator, prime broker or risk systems and IT infrastructure pro-vider. The fund will trade in several different types of market including stocks, currencies and commodities.
1 1 - 1 7 S E P 2 0 14
THE VOTE ON SCOTTISH Independence is now “too close to call” as hedge fund managers reveal they have been shorting sterling against the dollar ahead of next week’s referendum.
Mark Bathgate, head of research at $350m hedge fund ABD Investment Management, told HFMWeek that ABD had been long on the dollar against sterling, partly because of their view that the mar-ket had not adequately “priced in” the risk of a Scottish exit from the UK.
A new opinion poll that took place over the weekend suggested for the first time that Scotland would vote to leave the UK, a development that experts say con-tributed to the pound dropping to a ten-month low against the dollar on Monday.
Betting on sterling’s fall was the most popular referendum-related trading idea among HFMWeek readers surveyed on Monday, more than half of whom viewed the vote as a trading opportunity.
East Lodge Capital Partners has also reportedly been trading the Scotland issue by insuring against possible UK currency and debt losses incurred in the event of a ‘Yes’ vote.
Almost half of HFMWeek readers said a vote for independence would not impact the hedge fund sector, with the remainder roughly split on whether its impact would be posi-tive or negative.
By a small margin, 48% to 43%, more readers expected Scotland to remain part of the UK and con-tinue the 307-year union.
Hedge funds bet on “too close to call” Scotland voteManagers narrowly expect a Scottish ‘No’ as polls tighten
SCOTL AND
SEPTEMBER 2014
HFRX HEDGE FUND INDEX(YTD 5 SEPTEMBER 2014)IN
DICE
S MERGER ARBITRAGE
0.88%EQUITY LONG/SHORT
1.79%GLOBAL MACRO
1.85%
HEDGE FUNDS
2.16% FUNDS OF HEDGE FUNDS*
2.64%
RELATIVE VALUE
0.65%EQUITY SHORT BIAS**
-4.49%EVENT DRIVEN
4.40%
EMERGING MARKETS**
1.40%EQUITYMKT NTRL
2.39%MULTI STRATEGY**
1.29%
HFRI composite
* As of 31 July ** As of 31 August
L AUNCH
HFMWeek conducted a poll of its own earlier this week, questioning read-ers on several aspects of the Scottish Independence debate. The hedge fund sector narrowly expects Scotland to vote against independence in the upcoming referendum. Of those who voted either way, 53% predicted Scotland would opt to remain part of the UK with 47% against. More than half of respondents worked at a hedge fund while the remainder worked for a hedge fund service provider or investor. Almost three-fifths viewed the referendum as a trading opportunity, with betting on Sterling’s fall the most popular bet among those who expressed a view. The industry over-whelmingly thinks Scotland would be less successful as an independent country. Less than a fifth think independence would prove a success. Almost half thought a ‘Yes’ vote for independence would not impact the hedge fund sector, while 27% thought its impact would be negative and just 24% positive. Some reader comments are given below:
READER SURVEY SCOTTISH INDEPENDENCE: HFMWEEK VOTES...
“Nationalistic pride threatens to undermine 300 years of good = uncer-tainty = less business for all.”
“Scottish investment talent will head south.”
“Possible negative impact on London as a financial services centre.”
DO YOU THINK SCOTLAND WILL VOTE FOR INDEPENDENCE FROM THE UK?
No48.6%
Don’t know 8.1%
Yes 43.2%
HOW WOULD A ‘YES’ VOTE FOR INDEPENDENCE IMPACT THE HEDGE FUND SECTOR?
No difference 48.6%
Positively 24.3%
Negatively 27%
WHAT IS THE BEST TRADING OPPORTUNITY ARISING FROM THE SCOTTISH REFERENDUM?
Sterling’s fall 44.4%
Sterling’s rise 22.2%
Trading UK debt 14.8%
Share price of Scotland-domiciled
companies 11.1%
Other7.4%
DO YOU THINK SCOTLAND WOULD BE MORE SUCCESSFUL AS AN INDEPENDENT COUNTRY?
No81.1%
Yes 18.9%
1 1 - 1 7 S E P 2 0 146 H F M W E E K . CO M
during which he launched its Latin American local markets trading group and its global credit derivatives group.
Prior to Merrill Lynch, Fonkenell was a vice president at Bankers Trust, where he was latterly head of interest rate trading activities.
361 Capital has hired former Innovest research director Clifford Stanton as director of portfolio solutions and product management. He joins from Envestnet where he was chief research officer. Saxo Capital Markets UK has appointed Anthony Belchambers, former founder and CEO of the Futures & Options Asso-ciation, now FIA Europe, as a non-executive director. Investcorp has hired former JP Morgan global strategist Rebecca Hellerstein as a managing director in its $5bn hedge fund business. She will be responsible for alternative risk factor research. Former deputy CEO at Paris-based Ofi Asset Management Thierry Callault has joined Argos Investment Managers as a partner and co-general manager. Lyxor Asset Manage-ment has hired Kunjal Shah as a senior invest-ment professional in its New York office. He joins from Arden Asset Man-agement, where he was a partner and managing director.
P EO P L E M O V E S
PEOPLE MOVES
BlueBay hires portfolio manager from Eclectica BLUEBAY ASSET MANAGEMENT has hired Kerry Hugh-Jones from Eclectica Asset Management as an institutional portfolio manager.
Hugh-Jones joins the London bou-tique manager after serving as head of business development for just eight months at Eclectica, Hugh Hendry’s London-based firm which has suffered losses and redemptions this year.
She joined Eclectica at the start of the year from Italian investment bank Mediobanca, where she spent more than three years. Previously, she spent a decade at JP Morgan in various roles within its credit & rates team.
Anthony Robertson, partner and head of global leveraged finance at BlueBay, said Hugh-Jones’ “invest-ment credentials, attained in both the US and European markets, will prove crucial and invaluable in our business”.
HFMWeek could not reach Eclectica at the time of writing.
PEOPLE MOVES S P O N S O R E D BY
GUILLAUME FONKENELL’S HEDGE fund group Pharo Management has appointed Cédric Pancrazi as head of marketing and investor relations.
Pancrazi joins the $4.7bn firm after more than five years at Brevan Howard, where he was a product specialist and option strategist. Alan Howard’s European giant closed down its emerging markets fund ear-lier this year.
Before joining Brevan Howard in 2009, Pancrazi was a portfolio man-ager at Moore Europe, the European arm of Louis Bacon’s hedge fund firm Moore Capital Management,
between 2006 and 2009. At Brevan Howard, Pancrazi specialised in G10 and emerging market FX options.
He also previously worked in the derivative sales team at AIF Financial Products Corporation in Paris between 1996 and 2006.
Marketing staff have been in high demand since the AIFMD was brought in earlier this year, with a number of London-based hedge funds bolstering their teams for the new regulatory environment.
Emerging markets specialist Pharo was founded by Fonkenell in 2000. He was previously managing director at Merrill Lynch for a four-year tenure,
PEOPLE MOVES
Pharo raids Brevan Howard for marketing headCédric Pancrazi joined Fonkenell’s hedge fund group this month
HIGHS AND LOWS
THE PHARO TRADING FUND IS ONE of the best performers of 2014, accord-ing to data from HSBC Alternative Investment Group, with a return of 24.23% for the year through 25 July. It rose by 19.65% in 2013. Its sister fund, the Pharo Macro Fund, was up by 11.21% in the year through 25 July after a gain of 18.51% last year. Recent per-formance has proved more difficult for Brevan Howard, whose $25.8bn flagship lost -3.77% in the first seven months of 2014 and only made slim gains of 3.93% and 2.68% in 2012 and 2013 respectively.
JULY 2014
ABSOLUTE RETURN INDICESSOURCE: Newedge Prime Brokerage Group
JULY2014 EST-0.07%YTD 2014 EST-1.57%
VOL AT I L I T Y TR AD ING INDEX
SUB-INDICES
EQUITY STRATEGIES
JULY 14 -2 . 31%
Y TD 2 . 27%
TRADING STRATEGIES
JULY 14 -0. 35%
Y TD 2 .82%
JULY2014 EST-0.65%YTD 2014 EST2.79%
COMMODIT Y TR AD ING INDEX QUANTITATIVE
JULY 14 -0.81%
Y TD 2 .47%
DISCRETIONARY
JULY 14 0.93%
Y TD -2 .62%
JULY2014 EST0.28%YTD 2014 EST-0.94%
MACRO TR AD ING INDEX
SUB-INDICESIN
DIC
ES
Some hedge funds face a challenge to find new sources of capital as new regulation forces banks to change how they interact with the sector, according to panellists at HFMWeek’s latest US Subscriber Breakfast. Stephen Casner, CEO of HazelTree, John Sergides, from event sponsor UBS Fund Services Americas and Tom Zucosky, CEO at Dis-covery Capital Management spoke at the briefing in New York’s Lambs Club venue (pictured).
THE WEEK
H F M W E E K . CO M 71 1 - 1 7 S E P 2 0 14
CTA titans have recorded their best month since the finan-cial crash, according to Newedge’s benchmark index. The Newedge CTA Index rose 3.89% in August, its strongest monthly return since October 2008, just after Lehman’s col-lapse, when it hit 4.98%. Standout performers include Lynx Asset Management, a $4.7bn manager based in Stock-holm, Sweden (pictured), whose managed futures flagship surged an estimated 9.18% in August.
KITE LAKE CAPITAL Management has hired Nick McEwen to head up business development following his departure from OVS Capital, which closed down earlier this year.
HFMWeek revealed last week that McEwen, who was partner and co-CEO at the London-based event-driven firm, has been named partner at Kite Lake, which was launched by ex-Cheyne Capital managers Massi Khadjenouri and Jan Lernout in 2011.
His new firm also deploys an event-driven strategy and currently man-ages $137m in its flagship KL Special Opportunities Fund, of which $55m is partner capital.
Kite Lake confirmed that McEwen will oversee all sales and marketing. His addition brings head count at Kite Lake to ten and follows the hire of Jake Turner, who spent six years at Citigroup’s Citi Principal Strategies unit before Kite Lake named him the sixth member of its investment team last October.
Lernout said the hires would enhance Kite Lake’s “investment, busi-ness and operational infrastructure”.
He added: “The opportunity for event-driven investing across the
capital structure continues to look attractive.”
Kite Lake makes event-driven investments across the capital struc-ture globally in merger arbitrage and event-driven equity. Its credit oppor-tunities and distressed bets are limited only to Europe.
Kite Lake names OVS’s McEwen as marketing chief Closed-down firm’s co-CEO becomes latest to land new role
PEOPLE MOVES
MYTHBUSTERS
FEATURE P21
WEE
K I
N N
UM
BER
S
Blackstone Group invests in Arkkan Capital Management
Predicted inflows into liquid alternatives in next 12 months,
claims Deutsche Bank
Approximate day-one assets expected by Cloverdale Capital
Man Group completes acquisition of Boston-based Numeric
Newedge CTA Index rises in August, its strongest monthly return since
the 2008 financial crash
$200m $49bn $494m 3.89% $100m
THE WEEK
1 1-1 7 S E P 2 0 14
H F M W E E K . CO M 21
E MYTHBUSTERS
With so much regulatory change taking place there will inevitably be gossip and interpretations of new rules circulating around the market that turn out to be inaccurate. HFMWeek examines three of the most prevalent rumours floating about the hedge fund stratosphere and looks to separate the fact from the fiction BY MAIYA KEIDAN
MYTH: French border guards are stopping well-dressed people in suits as they exit the Eurostar from London, asking if they are a fund manager and if they have a let-ter of reverse solicitation to prove they are not illegally marketing into the jurisdiction. SOURCES SAY: A spokesperson for the French Border Guard unequivocally denies the rumour, which has been circulating around the market in recent weeks and has been heard by several senior compliance professionals who had been told guards were following a set script of questions. Th e French Border Guard says it is not the fi rst time they have heard such a rumour. Last year it fi elded media calls asking if they were halting Swiss managers from en-tering the country. French regulator the AMF also denied any knowledge of such action taking place.So, it looks like France’s strict implementation of the AIFMD only extends as far as adding a requirement for managers to hire a local representative to process sub-scriptions and redemption requests, supply information
to investors and provide shareholders with special data. Th is requirement is being challenged by Aima as it ensures private placement is still next to impossible in the country. MYTH: AIFMD Annex IV reports will have to be translated into the local language of every country in which non-EU managers wish to privately place. SOURCES SAY: Some operations professionals at hedge fund fi rms in the US had heard that reporting under AIFMD would have to be translated into the local regu-lator’s language and with many targeting Germany and the Scandinavian countries, it was feared this would be a daunting task.While lawyers say the rumour is not true, it is not wholly unsubstantiated. Local regulators have a legal basis to ask for some fi elds of the reporting to be translated, but “abso-lutely not” the entire form. “Most of the form is numbers anyway,” says one lawyer.Devarshi Saksena, partner at Simmons & Simmons cau-tions that managers should keep a watchful eye on regula-tors adding any stipulations for translated fi elds in Annex IV.
Other regulation has required such translations in the past. Rules under Ucits, for example, stipulate that the Key Investor Information Document (KIID) must be translat-ed into the local language of the investor’s domicile.MYTH: Proposed SEC amendments tied to generally so-liciting a hedge fund under the JOBS Act are fi nal rules and should be treated as if they have already come into force.
SOURCES SAY: Th e scrapping of a ban on hedge funds generally soliciting in the US under the JOBS Act was passed on 10 July, 2013, but the SEC took this opportunity to propose a host of new caveats that would make it much harder for managers to take advantage of the new regime. Sources suggest these new proposals may never be en-acted and instead are simply a tactic by the SEC to intimi-date hedge fund managers into not availing of the market-ing freedom.“I think the SEC proposed the rules to create confusion and threaten those who wanted to generally solicit, but there may never even be fi nal rules,” says one lawyer who does not wish to be named.Th e proposed amendments ask the manager to fi le an advance notice for private placement 15 days prior and one 15 days aft er the fi rst sale as well as release informa-tion to the SEC on the off ered securities, issuer’s website, types of investors and use of proceeds from the off ering.Th ose who did not comply with the fi ling requirements will be disqualifi ed for one year from generally soliciting a fund.
Managers have repeatedly told HFMWeek and sister magazine HFMCompliance that since those rules were pro-posed, they have been reluctant to take advantage of the opportunities under the JOBS Act.
I THINK THE SEC PROPOSED THE RULES TO CREATE CONFUSION AND THREATEN THOSE WHO WANTED TO GENERALLY SOLICIT ” LAWYER, ANONYMOUS
021_HFM353_Mythbusters.indd 21
OVS EXODUS
MCEWEN IS THE LATEST ex-OVS professional to land a new role fol-lowing Sam Morland’s decision to close down the firm he founded in 2010. Manuel Blanco joined the London office of Chicago-based Balyasny Asset Management earlier this year while fellow portfolio man-ager Nitin Sharma was registered with Drawbridge (UK), a unit of US giant Fortress Investment Group, last month. Investment analyst Adam Lister, who spent three years at OVS, has been appointed partner at Primestone Capital, a new hedge fund firm launching in London helmed by a trio of ex-Carlyle execu-tives, Franck Falezan, Benoît Colas and Jean-Pierre Millet .
1 1 - 1 7 S E P 2 0 148 H F M W E E K . CO M
INVESTOR
SEA
RCH
ACT
IVIT
Y
INVESTOR IN BRIEF S P O N S O R E D BY
I N V E STO R I N B R I E F
Sentry Investment Group has appointed New York hedge fund ValueWorks to sub-advise on some of the family office’s assets. ValueWorks was founded by Charles Lemonides in 2001 and specialises in investing in mispriced securities across the entire capital structure. More than a quarter of hedge fund managers plan to launch a liquid alterna-tives offering in the next 12 months following dramatic growth in investor demand, according to Deutsche Bank, which revealed that liquid alternatives have become the fastest growing sector of the asset manage-ment industry. The $19.8bn New Mexico State Investment Council is reducing the opportunistic credit allocation of its $4.4bn fixed income portfolio from 21.2% to 15%, according to reports. Hedge funds made annual returns of 17.6% for the $5.4bn Municipal Employees’ Annuity and Benefit Fund of Chicago in 2013. The retirement system has investments in FoHFs K2 Advisors and the Rock Creek Group, totalling 11% of its investment portfolio.
TEXAS EMPLOYEES’ Retirement System is assessing macro and CTA strategies as it seeks two hedge funds to invest in before next August.
The $21bn pension fund currently has $1.05bn invested in hedge funds, with its absolute return pool weighted towards event-driven, relative value and long/short equity.
Despite mixed performance in both the macro and CTA spaces, CIO Tom Tull told HFMWeek the pension fund is eyeing the strategies because it looks to invest in a contrarian manner.
It has current CTA exposure through a $35m investment in Aspect Capital’s diversified fund made in 2012 but its value has since fallen to $28.1m, with performance losses of -6.24% since the initial investment.
“We have a tendency to invest the-matically and in a contrarian nature that often puts us ahead of the curve in strategies before we see the rest of the industry allocating,” Tull said.
“CTAs in particular are something we are now looking at actively, we con-tinue to look at credit more on the convertibles side as we like the volatil-ity sensitivities there.
“We also continue to look at equity long/short in ways they can comple-ment our internal and long only expo-sures.”
So far this year the pension plan has invested $470m in hedge funds, the highlight of which was a $250m ticket in Marshall Wace in April.
Texas ERS has also allocated $50m to Northwest, $60.9m in Pharo
Management and $101.7m in Taconic Capital during 2014.
Tull’s investment team presented its tactical plan in August, at which the board gave its blessing to the invest-ment committee raising the level of individual investments it can authorise at any one time from $150m to $250m.
Tull says the system is very unlikely to write a cheque of this size for one particular investment but says the increase allows the investment team to be more tactical and flexible when it spots investment opportunities.
Read the full interview on [email protected]
Texas ERS mulling move into macro and CTA space Pension fund seeking two hedge funds for allocations
SEARCH
If you would like to comment on any investor-related news story or development, contact Alex Cardno, HFMWeek investment editor, at [email protected]
SEARCH LOG CONTINUES ON P12
Investor drops Och-Ziff over fee fearsUNACCEPTABLE management fees and AuM growth concerns have prompted the $1.2bn University of Houston endowment to redeem from Och-Ziff Capital Management Group, HFMWeek has learned.
The Texas-based institution’s board approved a recommenda-tion by Cambridge Associates on 22 August to redeem its $11.1m invest-ment from the OZ Overseas Fund II.
Media reports have previously indicated the university took the decision to redeem due to a shift in endowment policy, but treasurer Raymond Bartlett told HFMWeek that was incorrect.
“The endowment management committee [decided] to redeem from the OZ Overseas Fund II due to con-cerns regarding the growth of assets
under management and a manage-ment fee that is currently not as com-petitive as some other funds,” he said.
The OZ Overseas Fund II, which features in a number of US pen-sion portfolios, manages $11.9bn according to a 15 July 2014 Form ADV filing.
The fee terms negotiated between Och-Ziff and the university are not known.
The University of Houston will re-allocate the funds to a new hedge fund manager, HFMWeek under-stands, but the time frame for re-allo-cation is unknown.
The university first invested in OZ Overseas Fund II in 2010 with an $8m ticket. The fund has a 45 day redemption notice, with the request expected to be effective as of 31 December 2014.
An Och-Ziff spokesperson declined to comment.
REDEMPT ION
FoHF looking at fixed income spaceSTOCKHOLM-BASED Merrant Fonder is adding to its relative value fixed income exposure.
The market-neutral FoHF manages just over $100m in AuM through the Merrant Alpha Select Fund, and is planning to add at least two managers before year-end, portfolio manager Rolf Hagekrans told HFMWeek.
Merrant is close to hiring one man-ager and is conducting due diligence on “a couple” of others, but the firm is still open to speaking with pros-pects for the roughly $12m ticket, Hagekrans explained.
The Merrant Alpha Select Fund has exposure to 11 managers with an aver-age AuM of around $2.5bn, although hedge funds managing between $500m and $1bn may be considered.
SEARCH
FINDING FORM
TEXAS ERS’S SENTIMENT ON MACRO and CTAs comes just as the Newedge CTA Index reported a 3.89% rise in August, its strongest monthly return since October 2008.
Gains were more modest in macro, with the latest HFRI Macro (Total) Index putting YTD gains at 0.58% for the strategy as of July this year.
CARNEGIE MELLON UNIVERSITY TOTAL AUM $1.07bn CONSULTANT n/aACTIVITY Looking to hire two or three HFs running relative value and market neutral strat-egies in the next six months
TEXAS ERS
TOTAL AUM $21bn CONSULTANT AlbourneACTIVITY Seeking two directional growth hedge fund managers to invest up to $250m each
ILLINOIS TEACHERS’ RETIREMENT SYSTEM TOTAL AUM $45.3bn CONSULTANT AlbourneACTIVITY Seeking two to three non-directional hedge funds for allocations of between $150m and $200m each
MERRANT FONDER
TOTAL AUM $100m ACTIVITY Seeking two manag-ers in relative value fixed income
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 9
INVESTOR
HEDGE FUND MANAGERS are increasingly bowing to inves-tor demands and undertaking expensive audits of their risk con-trols.
The audits are named ISAE 3402s in the UK and SSAE 16s in the US and require managers to list out risk controls and objec-tives, and have them checked by a third-party auditor.
“The question has always been asked of investment man-agers whether they have a con-trols report, but they now need to respond to that question in a more positive way,” said Deborah Weston, partner at Kinetic Partners.
“They can either say okay, we
will produce one, or they can explain how they verify their con-trols without one, maybe through internal audit.”
These audits take anywhere from two to four months and cost from £25,000 ($32,700) to £40,000 ($52,310) and upwards, depending on the size of the firm. Weston says they usually cost upward of the annual audit fee.
“The use of these has increased,” said Tim West, partner at Moore Stephens. “More inves-tors are asking for them.”
Simon Fludgate, head of opera-tional due diligence at Aksia, said: “We have seen a slight uptick in larger managers offering [SSAE 16s].”
Mercer principal Julian Mant said: “They can be costly for the manger both in terms of the fee and time taken to complete but I’m a big fan. They can really help a smaller firm get their house in order and evolve from a spotty adolescent into a mature grown-up.”
PEOPLE MOVES
FCA thematic review lead joins CordiumA LEAD ASSOCIATE AT THE FCA who oversaw the controver-sial dealing commissions thematic review has joined global compli-ance giant Cordium, HFMWeek has learned.
Will Morrell joined Cordium in August after working within the the-matic team in the asset management division at the FCA on several key reviews for hedge fund managers.
He is now a consultant and focus-es on helping the global firm under-stand the FCA’s current approach to supervising wholesale markets and asset management firms. He will also conduct ongoing monitoring for cli-ents.
During his four-year stint at the FCA, he led a review of absolute return funds, where it was ques-tioned whether such a label was mis-leading for investors.
He was also a member of the con-flicts of interest attestations review team that came out of the ‘Dear CEO’ letter in November 2012.
Morrell was a fund administra-tor at StateStreet, an associate at GlobeOP Financial Services and also worked at BlackRock as a port-folio manager’s assistant and then within the portfolio analytics group of BlackRock Solutions, providing risk and performance reporting.
Aima objects to French AIFMD add-onTRADE BODY AIMA HAS sub-mitted a letter to the European Commission, objecting to France adding a local correspondent require-ment when marketing into France under the AIFMD passport regime.
France requires managers to hire a local representative who process-es subscriptions and redemption requests and supplies information to investors and shareholders.
“The Commission will look at it, but is not obligated to do anything,” said Donnacha O’Connor at Dillon Eustace.
Leonard Ng at Sidley Austin said: “There is nothing wrong with Aima making the case. The Commission might not be inclined to act if no one objects to France’s posture on this.”
REGUL AT ION
10 OCT 14DEALING COMMISSIONS – UKManagers must respond to consultation paper
15 OCT 14MAD IIConsultation closes on draft regulation and implementing technical standards
REG
ULATIO
N IN
DEX
If you would like to comment on any compliance-related news story or development, contact Maiya Keidan, HFMCompliance editor, at [email protected]
9 OCT 14UK FATCAHMRC to hold town hall meeting on consultation paper
1 OCT 14NFAAssessment fees for futures and options contracts to be halved each side
30 SEP 14REGULATION – UKWritten evidence must be submitted to House of Lords on financial regulatory framework inquiry
Large managers bow to audit demandsAllocators push for specified risk control checks
INVESTOR
REGULATORY TALENT
CORDIUM IS NOT THE ONLY FIRM to tap up people with experience working at regulatory bodies. Bart Chilton, former CFTC commissioner and vocal opponent of “cheetah” high frequency trading (HFT), joined a pro-HFT lobby group in an about-face in August . And the FCA’s asset management supervision head Ed Harley resigned for a compli-ance role at Goldman Sachs Asset Management in November.
COMPLIANCE
OTHER OPTIONS
MANAGERS MAY BE BETTER advised offering investors an internal audit instead, as such checks allow auditors to ensure best practices.
Under ISAE 3402 and SSAE 16 a third party only confirms that the firms have controls to meet certain objectives.
“For many managers, inter-nal audit may well be a better answer both for the manager and the investors,” said Deborah Weston, partner at Kinetic Partners.
THE WEEK
Mathew Martoma (pictured), a former SAC Capital Advisors portfolio manager, has been sentenced to nine years in prison, fined $9.3m and forced to forfeit his home in Florida after being found guilty of insider trading charges. US District court judge Paul Gerdephe attributed the length of the sen-tence to the enormity of the gain – his then-employer, since re-named Point72 Asset Management, was found to have made $275m from betting on non-public information.
1 1 - 1 7 S E P 2 0 141 0 H F M W E E K . CO M
LAUNCHES&CLOSURES
LAU
NCH
ACT
IVIT
Y
SANDITON ASSET Ma n age m e n t , a London-based equities manager, has launched a Europe-focused long/short equity Ucits fund led by ex-Cazenove Capital manager Chris Rice, HFMWeek has learned.
TM Sanditon European Select is the first in a series of Ucits offerings planned by the $220m firm. TM Sanditon UK Select Fund, a UK-focused long/short equity fund, is lined up for next quarter while long-only funds focused on Europe and the UK are also planned.
The fund, which has 20 to 40 positions both on the long and short sides, is a follow-on strat-egy that portfolio manager Chris Rice managed at predecessor firm Cazenove Capital, where he spent nearly a decade, most recently as head of pan-European equities.
It rolled out with more than $100m and is said to have the capacity to manage assets of up to $1.5bn.
Sanditon AM’s Chris Rice starts Ucits fundKames Capital also considers additional Ucits offering
L AUNCH
Former NuWave CTO sets up own CTAVETERAN NUWAVE Investment Management technology chief John Ryan has launched his own man-aged futures firm, sister title CTA Intelligence has learned.
Ryan left Troy Buckner’s New Jersey-based quant firm in August and has set up Spring Valley Asset Management (SVAM). Its NFA membership and CFTC registration was confirmed last week.
SVAM’s maiden offering, the SVAM Tactical Trend Portfolio, is a diversified program trading 50 mar-kets with a blend of short, intermedi-ate and longer term systems.
Models look at each market indi-vidually and are dynamically bal-anced in the portfolio depending on the prevailing market regime with the aim of generating “rich” returns in both declining and expanding vola-tility environments, Ryan explained.
Ryan said the portfolio was designed to be an absolute return product that seeks to deliver alpha in all environments, targeting 15-18% annualised returns, net of fees, while tightly controlling downside risk.
The SVAM Portfolio is initially being offered through managed accounts and charges fees of 0/25%.
Ryan is currently managing $15m in client capital.
L AUNCH
If you would like to comment on any start-up-related news story or development, contact Elana Margulies, HFMWeek chief reporter, at [email protected]
LAUNCH ACTIVITY CONTINUES ON P13
Prior to Cazenove, Rice was head of European equities at HSBC Asset Manage-ment from 1997 until 2002.
He will also manage Sanditon’s upcoming European long-only Ucits fund which launches at the end of September, named TM European Sanditon, which is also expected to begin with more than $100m.
The TM Sanditon European Select fund has two share classes.
The A Share Class has 1.25/15 fees and a £20,000 ($32,900) investment minimum and the F Share Class has 0.95/15 fees and a £5m ($8.2m) investment minimum.
A Sanditon spokesperson declined to comment.
The development comes as Kames Capital, a £52bn ($85.6bn) investment house based in Edinburgh and London and owned by Dutch insurer Aegon, ponders the launch of a 2x levered version of its Ucits-compliant UK equity market neutral fund.
Adrian Cammidge, head of investment communications at Kames Capital, told HFMWeek its launch is contingent upon investor demand.
$1.5bnASSETS CAPACITY AT SANDITON’S UCITS
FUND
HORSEMAN CAPITAL MANAGEMENT IS aiming to launch its Ucits-compliant European long/short equity fund at the end of September.
The $1.6bn London-based firm’s offering will be named the Horseman European Select Ucits Fund, according to an investor docu-ment. It will be directional in nature, expressing a macro view through individual stocks with 75% of its portfolio focused on Europe.
Stephen Roberts is the portfolio manager. He joined the firm in 2003 managing part of the Horseman Global Strategy, and then launched the Horseman European Select Strategy in 2005.
Horseman’s European Select Ucits Fund will have two share classes. A shares have 2/20 fees and B shares have 2.5/20 fees. There is no lock-up for both share classes and investors can redeem weekly.
HORSEMAN PLANS SEPTEMBER UCITS LAUNCH
SANDITON ASSET MANAGEMENT
NAME TM Sanditon European Select STRATEGY Europe-focused long/short equity Ucits LAUNCH DATE Aug 2014
SOROBAN CAPITAL PARTNERS
NAME Soroban Opportunities Fund STRATEGY Concentrated, “best ideas” long/short equity LAUNCH DATE Aug 2014
CLOVERDALE CAPITAL
STRATEGY Long/short equity LAUNCH DATE Oct 2014
HORSEMAN CAPITAL MANAGEMENT
NAME Horseman European Select UCITS Fund STRATEGY Ucits-compliant European long/short equity LAUNCH DATE Sep 2014
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 11
FORMER HIGHSIDE CAPITAL manager Jonathan Gattman will launch new firm Cloverdale Capital with almost $100m next month.
Gattman was managing director at Highside, spending six years at the Texas-based firm until leaving last year when it returned investor capital.
His new Dallas-based start-up will run a long/short small and mid-cap strategy that has attracted just under $100m from several investors includ-ing a university endowment for its October start.
According to a source, the offering will invest in all sectors except finan-
cials and energy, and target $500m in overall assets. Before Highside, Gattman was an investment banking analyst at FTN Financial.
Cloverdale has also hired Scott Crowell as CFO and Jeffrey Bryant and Patrick O’Keefe as analysts. Crowell most recently worked at Dallas-based hedge fund KeyPoint Capital Management as director of operations from June 2012 until March this year.
Bryant was previously an equi-ty research associate at Janney Montgomery Scott and Autonomous Research while O’Keefe was formerly a research associate at Eagle Capital.
Cloverdale is also hiring a director of operations.
Cloverdale’s service providers include Morgan Stanley as prime bro-ker; SS&C GlobeOp as administrator; Haynes and Boone as legal counsel and KPMG as auditor. A Cloverdale spokesperson declined to comment.
Over 200 readers attended last week’s breakfast panel event in London on the growth of alternative Ucits. Panellists highlighted the huge opportunities on offer for managers due to the growing number of investors looking at alternative Ucits strategies, alongside challenges to overcome. Morgan Stanley executive director institutional equity division Stephane Berthet, ML Capital COO Richard Day and Lyxor deputy head of alternatives Cyrus Amaria all provided different perspectives on these opportunities while Nick D’Onofrio, CEO at North Asset Management, offered his experiences on launching an alternative Ucits vehicle.
THE WEEK
Ex-Highside pro’s start-up raises almost $100mJonathan Gattman’s Cloverdale Capital to launch in October
Peak6 Advisors flagship targets up to $3bnCHICAGO-BASED PEAK6 Ad- visors will target overall capacity on its flagship product of up to $3bn after the reopening of the Peak6 Achievement Fund later this year.
Overall capacity of between $2.5bn and $3bn has been targeted by the end of the year, according to an investment document.
The Peak6 Achievement Fund, which launched in September 2012 and closed to investors in Q4 2013 after passing $2bn, had $1.95bn under management as of April.
The fund’s strategy, the document revealed, “combines elements of fundamental long/short equity and credit trading”.
Peak6 returns to London for the first time in more than a decade after gaining authorisation from the UK FCA last month.
A Peak6 spokesperson could not be reached for comment.
Spectrum Asset Man-agement is considering launching a new program next year after closing its 12-year old flagship, sister title CTA Intelligence revealed. The firm, founded by Mike Songer, had seen assets in its Global Diversified Strategy drop from a peak of $265m at the start of 2012 to $10m after two years of performance losses. Rinehart Capital Partners, an emerging markets hedge fund based in Tennes-see, has closed down after seven years. Founder Andrew Cunagin, who was backed by industry veteran Lee Ainslie, blamed high-frequency traders for his firm’s closure. Soroban Capital Partners, a New York-based hedge fund firm, hopes to raise $1.5bn in the next three months for its new Soro-ban Opportunities Fund, which opened last month. Pennsylvania-based Hart-ford Funds has launched a long/short ’40 Act fund sub-advised by Wellington Management, named the Long/Short Global Equity Fund. Kenneth Abrams and Donald Tunnell of Wel-lington Management are portfolio managers.
LAUNCHES IN BRIEF S P O N S O R E D BY
L A U N C H E S & CLOSURES I N B R I E F
L AUNCH
REOPEN ING
CONTINUES ON P13
AMERICAN BEACON ADVISORS
NAME American Beacon AHL Managed Futures Strategy Fund STRATEGY Managed futures LAUNCH DATE Aug 2014
LONG ON GAINS Cloverdale is launching at a time of strength among long/short equity funds, as a VAMI chart comparing the growth of $1,000 invested in the core index in January 2013 compared to long/short equity shows. SOURCE: HFR
SILVER TIME PARTNERS
LAUNCH DATE Jun 2014
OAKTREE CAPITAL GROUP
NAME Oaktree Opportunities Fund X STRATEGY Distressed debt LAUNCH DATE Q3 2014
SPRING VALLEY ASSET MANAGEMENT
NAME SVAM Portfolio STRATEGY CTA LAUNCH DATE Sep 2014
BLACKROCK
NAME BlackRock Event Driven Equity Fund STRATEGY Event-driven LAUNCH DATE Q4 2014
SEARCH ACTIVITY
1 2 H F M W E E K . CO M 1 1 - 1 7 S E P 2 0 14
A WEEKLY COMPENDIUM OF RECENT HEDGE FUND SEARCHES AND INVESTMENT MANDATES
S E A R C H A C T I V I T Y
KAZAKHSTAN NATIONAL INVESTMENT CORPORATION TOTAL AUM $110bn (approx)ACTIVITY Issued RFP for hedge fund consultant to take on $300m mandate
MORGAN STANLEY WEALTH MANAGEMENT TOTAL AUM $1.9trnACTIVITY Seeking long/short, event-driven and relative value managers
ILLINOIS STATE UNIVERSITIES RETIREMENT SYSTEM TOTAL AUM $16.4bnCONSULTANT NEPCACTIVITY Planning to issue an RFP in its first search for hedge funds
PENNSYLVANIA TURNPIKE COMMISSION TOTAL AUM $6.8bnCONSULTANT Investment Perfor-mance Services ACTIVITY Searching for a FoHF
AURORA INVESTMENT MANAGEMENT TOTAL AUM $9.1bnACTIVITY Mulling increased exposure to “portfolio hedge” strategies. Also researching bank merger space
JUL 2014
SAN JOSE FEDERATED RETIREMENT SYSTEM TOTAL AUM $2.5bnCONSULTANT AlbourneACTIVITY Issuing mandate to hedge fund manager worth 5% of overall investment portfolio
manager for a mandate of around $13m
DEUTSCHE ASSET & WEALTH MANAGEMENT (DEAWM) TOTAL AUM $137.5bn ACTIVITY Could add emerging market managers to its panel
SANOSTRO TOTAL AUM n/aACTIVITY Partnering with systematic managers to offer single trading strategies to large asset managers
JUN 2014
DEUTSCHE ASSET & WEALTH MANAGEMENT (DEAWM) TOTAL AUM $137.5bn ACTIVITY Seeking single managers and Ucits funds to add to platforms
CORNWALL COUNTY COUNCIL TOTAL AUM $2.3bnACTIVITY Seeking a hedge fund adviser for a $170m mandate
Continued from page 8, compiled by HFMWeek
AUG 2014
CITY OF MOBILE POLICE & FIRE RETIREMENT PLAN TOTAL AUM Not disclosedCONSULTANT Gray & CompanyACTIVITY Considering up to four man-agers for possible investment
EL PASO COUNTY RETIREMENT PLAN TOTAL AUM $319mCONSULTANT Watershed Investment ConsultantsACTIVITY Heard recommendations on potential FoHF managers at August meeting
To comment, contact Alex Cardno at [email protected]
www.boostetp.com/Content/Disclaimer
BOOST FTSE 100 3X
SHORT DAILY ETP (3UKS)
BOOST FTSE 100 3X
LEVERAGE DAILY ETP (3UKL)
+44 (0)20 3207 9050 [email protected]/UKad
40 equity & commodity LSE listed ETPs
No margin calls
Trades on LSE
Can’t lose more than original investment
No complex documentation
Low cost, robust & transparent
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 13
LAUNCH ACTIVITY
A WEEKLY COMPENDIUM OF HEDGE FUND L AUNCH ACTIVIT Y
L A U N C H A C T I V I T Y
FAIRTREE CAPITAL NAME AssegaiSTRATEGY Long/short equity LAUNCH DATE September, 2014
FAIRTREE CAPITAL NAME Wild FigSTRATEGY Mid-volatility multi-strategy LAUNCH DATE Aug 2014
FAIRTREE CAPITAL NAME WoodlandSTRATEGY Low-volatility multi-strategy LAUNCH DATE Aug 2014
SAND GROVE CAPITAL PARTNERS STRATEGY European event-driven LAUNCH DATE TBD
LMR PARTNERS NAME LMR Alpha Rates FundSTRATEGY Fixed income LAUNCH DATE Jun 2014
EQUITYPRO CAPITAL NAME F2 Fund STRATEGY Market neutral LAUNCH DATE Sep 2014
CARBIDE CAPITAL NAME Carbide Absolute Return FundSTRATEGY Managed futures LAUNCH DATE Sep 2014
BIO-NARY CAPITALSTRATEGY HealthcareLAUNCH DATE TBD
GOTHAM CAPITAL NAME Gotham Absolute 500 Fund STRATEGY Long/short alternative mutual fund LAUNCH DATE Jul, 2014
POLAR STAR MANAGEMENT NAME Orion Commodity FundSTRATEGY Balanced commodityLAUNCH DATE Aug 2014
LINK CAPITAL NAME Link Capital Absolute Return Fund STRATEGY Lending: student loans LAUNCH DATE Sep or Oct 2014
LINK CAPITAL NAME Link Capital Strategic Opportu-nities FundSTRATEGY Lending: student loans LAUNCH DATE Sep or Oct 2014
BRIGHTVIEW CAPITAL NAME BrightView Adaptive Fund STRATEGY Trades large-cap US stocks and equity derivatives, employing trend-following, mean-reversion and other quantitative methodsLAUNCH DATE TBD
ORIGAMI CAPITAL NAME Origami Opportunity Fund 3STRATEGY Buys stakes in “side pockets” LAUNCH DATE Q1, 2015
FIREBIRD MANAGEMENT NAME Firebird US Value Fund STRATEGY Long-biased, fundamental valueLAUNCH DATE Jul 2014
ABLE CAPITAL MANAGEMENT NAME Able Capital Partners STRATEGY Market-neutral LAUNCH DATE Aug 2014
SML CAPITAL NAME SML Capital 50/57 FundSTRATEGY Absolute return LAUNCH DATE May 2014
Continued from pages 10&11, compiled by HFMWeek
REPORTED AUGUST 2014
WAKEFIELD FUNDS STRATEGY Activist long/short equity LAUNCH DATE Aug 2014
AQR CAPITAL MANAGEMENT STRATEGY Ucits-compliant trend-following fundLAUNCH DATE Sep 2014
EQUINOX FUNDS NAME Equinox Aspect Core Diversi-fied Strategy STRATEGY Managed futures mutual fund LAUNCH DATE Nov 2014
ARKKAN CAPITAL MANAGEMENT STRATEGY Asia-focused distressed debt LAUNCH DATE TBD
VIXPRICE PARTNERS STRATEGY Intraday futures LAUNCH DATE Sep 2014
JUBILEE CAPITAL MANAGEMENT NAME Jubilee Diversified Trend Fund STRATEGY Trend-following LAUNCH DATE Jul 2014
LEMELSON CAPITAL NAME Amvona Fund STRATEGY Long-bias LAUNCH DATE Jul 2014
NOKOMIS COMMODITIESNAME Nokomis CommoditiesSTRATEGY Managed futures LAUNCH DATE Aug 2014
To comment, contact Elana Margulies at [email protected]
COMMENT&ANALYSIS
Man Group CEO Manny Roman welcomes completion of his fi rm’s latest acquisition
THE LONGVIEW
Tom Tull, CIO at Texas Employees Retirement System, is always looking to negotiate downwards
“WE ARE NEVER HAPPY WITH THE FEES”
“NUMERIC IS VERY WELL POSITIONED TO BENEFIT SIGNIFICANTLY FROM OUR SCALE AND RESOURCES”
BlueCrest explains why it has reduced fees charged by an $8.2bn pair of CTA hedge funds
“(THE FEE) REDUCTION FOLLOWS AN ASSESSMENT OF THE CTA LANDSCAPE AND IN PARTICULAR THE RECENT MIGRATION TOWARD LOWER FEES”
THE WEEK IN QUOTES
P rior to 22 July, UK AIFMs that man-aged one or more AIFs with AuM above a minimum threshold were required to apply to the FCA for the
‘managing an AIF’ permission. Now that this deadline has passed, the industry may be forgiven for thinking the hard work is over, but in reality it’s just starting.
The focus to-date for the managers of offshore hedge funds has been on obtain-ing the requisite FCA permission to be authorised as a full scope AIFM and on making the changes necessary to continue to market in Europe. However, AIFMs should also now start paying attention to the impact of Emir on their offshore AIFs.
As of 22 July, non-EU AIFs managed by an EU AIFM are subject to Emir’s reporting obligations, risk mitigation obligations and, from implementation, the clearing obliga-tion. Reporting obligations under Emir began across Europe in February 2014, but at that time non-EU AIFs with EU AIFMs were not “in-scope” for reporting.
Non-EU AIFs that are managed by EU AIFMs and which execute exchange-traded and OTC derivative transactions will be expected to report the conclu-
sion, modification and early termination of each such transaction to a registered trade repository no later than the working day following the relevant lifecycle event. Since 11 August, there is also a require-ment to report collateral and mark-to-mar-ket, or mark-to-model values, daily.
Risk mitigation under Emir should also be on AIFMs’ radar. New rules came into effect from March 2013, covering portfolio reconciliation, portfolio compression and dispute resolution. Following the expiry of the 22 July deadline, a non-EU AIF man-aged by an EU AIFM will need to ensure it has appointed an agent (potentially the AIFM or a middle office services provider) to carry out these obligations on its behalf.
Entities under Emir are expected to comply with the risk mitigation rules irrespective of whether their counter-party is located inside the EU or not. For some requirements, compliance requires the cooperation of the counterparty. Consequently, non-EU counterparties are being asked to comply with certain aspects of the Emir rules even though they are not themselves directly subject to such rules.
When it comes to clearing obligations, it
is less certain as to when the regulation will come into force in Europe. The most recent guidance from Esma is that it is expected sometime between November 2014 and June 2015. There could also be a phased-in implementation of the provisions, but AIFMs should begin preparing now.
In addition to the requirement to clear certain OTC derivative transactions on a prospective basis, financial counterparties will also be made to clear certain existing transactions retrospectively. This has been termed “frontloading”.
European AIFMs will need to consider whether a central clearing party has been authorised to clear the class of derivative contracts being entered into; whether there are adequate records and processes to keep track of the contracts of the clearable class being entered into; and on the date the clear-ing requirement comes into force, whether there is the necessary documentation in place to meet the frontloading obligation.
For example, NASDAQ OMX was authorised to clear certain classes of deriv-ative contracts on 18 March 2014. So for unsettled derivative contracts of that type, the frontloading requirement potentially applies to contracts entered into after 18 March 2014 and still existing at the date of application of the clearing obligation.
There is uncertainty as to how front-loading will work in practice and this is causing concern, particularly in relation to the potential impact on pricing structures. Esma wrote to the European Commission on 8 May identifying this and proposing two potential solutions to this issue, but the response and the final form are awaited.
So while the AIFMD has been the big focus of AIFMs for the past few years, managers must not ignore new regulatory updates on the horizon. Emir will have a big impact and should be given attention sooner rather than later.
RICHARD FRASE is a partner of the financial ser-vices group at Dechert
1 1 - 1 7 S E P 2 0 141 4 H F M W E E K . CO M
ENTITIES UNDER EMIR ARE EXPECTED TO COMPLY WITH THE RISK MITIGATION RULES IRRESPECTIVE OF WHETHER THEIR COUNTERPARTY IS LOCATED INSIDE THE EU OR NOT”
RICHARD FRASEPaying greater attention to Emir
P redictions for the ongoing growth of assets in liquid alternative vehicles offer up some eye-watering figures.
Anita Nemes, Deutsche Bank’s global head of capital introduction, pro-claimed liquid alternatives “the fastest growing segment of the asset management industry”, as its research revealed more than three-quarters of hedge fund managers now offer liquid alternative vehicles or are consid-ering launching them in the coming year.
A quarter of managers plan to launch a new alternative Ucits product in the next 12 months, while 29% plan to launch alternative ’40 Act mutual funds. Meanwhile, investors predict net inflows into liquid alternatives will increase 44% to $49bn over the next 12 months, compared to $34bn over the last 12 months, according to the research.
These findings echo the sentiment of HFMWeek’s latest breakfast briefing, where speakers pointed to ongoing demand for liquid, onshore vehicles among US and European investors. But, as panellists pointed out, there are a number of challenges for managers to overcome. These include mak-ing sure the strategy can fit appropriately within the different fund structures and ensuring you are not just cannabalising an existing offshore product. The costs of launch must also be considered.
In the US, we await the results of the SEC’s investigation into the ’40 Act space and any new rules it may want to implement.
However, the significant levels of investor interest are hard to ignore. You need to have very good reasons to launch an alternative Ucits vehicle but you also need very good reasons to ignore what could be a huge opportunity.
LondonThird FloorThavies Inn House3-4 Holborn CircusLondon, EC1N 2HAT+44 (0)20 7832 6500 F +44 (0)20 7832 6501
New York 1441 BroadwaySuite 3024New York , NY 10018T +1 (212) 268 4919
EDITORIALHead of contentPaul McMillan+44 (0) 20 7832 6622p.mcmillan@hfmweek .com
News editorWill Wainewright+44 (0) 20 7832 6624w.wainewright@hfmweek .com
Data and online editorRob Langston +44 (0) 20 7832 6626r.langston@hfmweek .com
Chief reporterElana Margulies +1 (212) 268 4944e.margulies@hfmweek .com
Investment editorAlex Cardno +44 (0) 20 7832 6625a.cardno@hfmweek .com
Senior reportersMatt Smith +44 (0) 20 7832 6627m.smith@hfmweek .com
Maiya Keidan +44 (0) 20 7832 6621m.keidan@hfmweek .com
ReporterJasmin Leitner +44 (0) 20 7832 6657j.leitner@hfmweek .com
Technology correspondentChris Matthews+44 (0) 20 7832 6656c.matthews@hfmweek .com
Data managerIndira Peters-DiDio +1 (212) 268 4919i.peters@hfmweek .com
COMMERCIALAssociate publisherLucy Churchill +44 (0) 20 7832 6615l.churchill@hfmweek .com
Senior publishing account managerTara Nolan +44 (0) 20 7832 6612t .nolan@hfmweek .com
Publishing account managerJoakim (Joe) Nilsson+44 (0) 20 7832 6616j.nilsson@hfmweek .com
Publishing account managerJack Duddy+44 (0) 20 7832 6613j.duddy@hfmweek .com
THE MEMBERSHIP TEAM +44 (0) 20 7832 6511sales@hfmweek .com
PRODUCTIONHead of productionClaudia Honerjager Sub-editor Rachel KurzfieldDesigner Jack Dougherty
PAGEANT MEDIAGroup head of contentGwyn Roberts+44 (0) 20 7832 6623g.roberts@hfmweek .com
Chief executive Charlie Kerr
ISSN 1748-5894. Printed by The Manson Group. © 2014 all rights reserved. No part of this publication may be reproduced without written permission of the publishers. No statement in this magazine is to be construed as an invitation to invest in hedge funds.
CHICAGO-BASED SML CAPITAL NAMED its new hedge fund the SML 50/57 Fund because managing partner Scott Schneider said bull markets do not last forever and since 1950, the average bull market lasted 57 months.
He further stated that investors should keep that investment philosophy in mind as we approach the 66th month of the current bull market cycle.
“The 50/57 Fund simultaneously invests for market appre-ciation while actively investing to take advantage of cyclical market corrections,” he said.
The SML 50/57 Fund is a spinoff from the firm’s predeces-sor SML Capital Activist Fund, which traded a proprietary hedging model strategy designed to outperform the S&P 500 Index with a focus on risk management.
Schneider co-founded SML Capital in 2008. Previously he was a founding partner of private equity firm Comflix Part-ners, a position he held from 2004 until 2008. Danish Iqbal is SML’s risk management advisor. He was most recently an actuary at Genworth Financial from 2011 until this year.
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 15
#214SML CAPITAL’S 50/57 FUND
SHORT VIEW
Steffen Gruschka, founder and CIO of of SG Alpha (a Ukraine/Eastern EU-focused hedge fund)
60 S ECONDS
WITH...
WHAT’S IN A NAME?THE STORY BEHIND HEDGE FUND MONIKERS
HOW WOULD YOU DESCRIBE YOUR CURRENT ROLE? CPO (Chief Peace Officer) – waiting for peace in Ukraine.
IF YOU WERE DOWN TO YOUR LAST $1,000, HOW WOULD YOU INVEST IT?Invest into the Ukrainian stock market. It’s 10 times down as a result of what has happened in the past. There is real change in the country that will open it up to start converging with Europe and the market, which is now capitalised at 1/10 of its smaller neighbour Poland, will go up many times.
WHAT WOULD YOU DO IF YOU WERE IN PRESIDENT OBAMA’S SHOES?I would give them back to President Obama because they don’t fit me. I am focusing on increasing the value of our investments in emerging Europe, he is dealing with issues on behalf of the US. We both seem to perform rather well. Let’s keep it like this.
WHO WOULD PLAY YOU IF THEY MADE A MOVIE ABOUT YOUR FIRM?Warren Buffett. He is excellent at explaining the investment pro-cess and he could definitely help us check a few things out.
ALEX CARDNO
We don’t just tick boxes.
We don’t simply provide services.
We provide a bespoke response in a template world.
Our services are what you would expect from your Prime Broker and include:
lending and web based reporting. But how we deliver these services is what
on the needs of start up and emerging managers.
It’s why we’ve won the HFM Week Award for “Best Boutique Prime Broker“ for two years in a row.
www.GlobalPrimePartners.com
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 17
PROFILE TOM TULL
Texas ERS has gone from zero hedge fund exposure to investing more than $1bn in little more than two years. CIO Tom Tull tells HFMWeek what he looks for in an alternatives investment BY ALEX CARDNO
In April, the Texas Employees’ Retirement System (ERS) handed a $250m ticket to Marshall Wace, a signifi cant move that took the pension fund’s total hedge fund investment to more than $1bn.
Th e $21bn retirement system had no hedge fund exposure in its investment portfolio as re-
cently as June 2012. But since Tom Tull took the reigns as CIO of the fund in October 2012, allocations to hedge funds by Texas ERS have come thick and fast.
Today the retirement system has 15 hedge fund manag-ers sitt ing in its absolute return pool and is seeking to add two more before next September.
At the same time, Texas ERS also hopes to conclude searches outside the absolute return pool for a hedge fund manager in real estate and in global credit.
Not that Tull sees hedge funds as an asset class. “We
see hedge funds more as a business model than as an asset class. Hedge funds allow us to be more tactical,” he says.
“For example, we don’t have a hedge fund in real estate yet, but by going for a long/short fund in that area we can get a good part of the upside and minimise our downside, and do it in a more tactical manner than if we just bought and sold securities.”
Hedge funds are intended as a diversifying investment tool both within the absolute return pool and in other as-set classes. Of the latt er, Tull says having a hedge fund in real estate or even fi xed income can complement other alpha-generating investments in those spaces. Within the absolute return pool, hedge funds currently make up al-most 5% of the Texas ERS portfolio.
Although he takes responsibility for the overall invest-ment portfolio, Tull is assisted in looking at hedge fund opportunities by deputy CIO Sharmila Kassam, portfolio managers Robert Lee and Anthony Curtis, and analyst Nicholas Maff eo.
In a further sign of expansion, up to two additional hires have been requested for the hedge fund team to support the fund’s management of existing allocations.
Th e pension plan is advised by Albourne Partners and is an avid subscriber to the consultant’s risk management protocol. Tull says this complements a lot of the work the system’s hedge fund team does internally.
At present, the pension fund’s hedge fund exposure is heavily weighted towards event-driven and relative value, with some space left over for long/short equity.
Long/short equity is a space Texas ERS will continue to look at given the high number of managers operating in the strategy.
Th e retirement system is also actively looking at manag-ers in the macro and CTA sectors, two areas that have not performed strongly in recent years.
Tull explains: “We have a tendency to invest themati-cally and in a contrarian nature that oft en puts us ahead of the curve in strategies before we see the rest of the industry allocating.
“CTAs in particular is something we are now looking at actively, we continue to look at credit more on the con-vertibles side as we like the volatility sensitivities there. We also continue to look at equity long/short in ways they can complement our internal and long-only exposures.”
To that end, Tull’s team presented its annual tactical plan in August, at which the board gave its blessing to the investment committ ee raising the level of individual in-vestments it can authorise at any one time from $150m to $250m.
Tull says the plan is very unlikely to write a cheque of this size for one particular investment. But he adds the in-crease allows the investment team to be more tactical and
LONE STAR CIO
Tull served in the US Army during 1965-67, to pay for tuition at Ohio State University. The experience instilled in him a set of values he calls “PACT”, explained as professionalism and performance, accountability, communication and teamwork , credentials he demands of his team members.Following a stint heading up pension investment at LTV Corporation in the years after military service, Tull went on to become a founding partner of investment adviser Gulfstream Global Investors, Ltd, which was sold to German bank West LB in 2001.He then joined Texas ERS in 2009 as director of strategic research, taking on the CIO role in October 2012 following the retirement of Jaqueline Jones.
TOM TULL: CV
uk.marsh.com
PROVIDING EXPERT INSURANCE SOLUTIONS FOR HEDGE FUNDS
In the United Kingdom, Marsh Ltd is authorised and regulated by the Financial Conduct Authority. Copyright © 2014 Marsh Ltd All rights reserved
RAWDEN LEIGH
FINPRO Practice, UK +44 207 357 1209
NEILL HARMAN
FINPRO Practice, UK
+44 207 357 1281
PAUL FIGLIOZZI
FINPRO Practice, US +1 212 345 0082
JAMES S. OBRIEN
FINPRO Practice, US +1 212 345 6432
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 19
PROFILE TOM TULL
TOM TULL, TEXAS ERS
THE BIGGEST CHALLENGES I FACE AS CIO ARE IMPLEMENTING AN ASSET ALLOCATION WHEN TOO MANY DOLLARS ARE CHASING DEALS, AND SEEKING COMPETITIVE RISK-ADJUSTED PERFORMANCE AT A REASONABLE COST
”
flexible when it spots investment opportunities.So far, the hedge funds within the absolute return port-
folio have generally performed well, posting overall YTD returns of 5.34% as of May 2014.
Tull is clearly confident investing in the hedge fund space but there is one area that turns his demeanour from amiable to bristling.
“We are never happy with the fees,” he says bluntly.The average allocation per hedge fund invested in by
Texas ERS currently stands at about $71m. Even with most funds performing well, Tull places great emphasis on trying to reduce fees.
He explains: “We never take anything at face value, since the inception of the asset allocation programme in 2011 we have saved about $14.7m through negotiating lower management fees, lower carries and hurdle rates.”
Tull adds the importance of this is underlined by pres-sure from both the board of trustees and the pension hold-ers, as well as a far higher degree of public scrutiny around public pension funds than was the case when he ran his own investment business in the private sector.
“The biggest challenges I face as CIO are implement-ing an asset allocation when too many dollars are chasing deals, and seeking competitive risk-adjusted performance at a reasonable cost, as well as avoiding consensus and con-ventional wisdom,” he explains.
Hence the key due diligence considerations are the strategy of the fund, its processes, the fund’s investment team and their ability to demonstrate strong performance on a consistent basis.
“We don’t do these deals lightly,” he adds. “We spend a considerable amount of time analysing the various part-nerships because we view these as very long-term relation-ships.”
Due diligence, therefore, can take months. And even with an investment signed off, things don’t always go ac-cording to plan.
As a demonstration of the importance of alignment be-tween the system and the hedge fund, Texas ERS quietly pulled out of investing in event-driven hedge fund Senator
Investment Group at the last moment in 2013 following a disagreement over share classes and, it appears, a row over fees. Tull says the Blackstone-seeded fund had been identified as a “best in class” event-driven fund, and that the due diligence and board approval had both been done successfully.
However, he says the pension fund was then unable to open the share class with Senator, which had been the ba-sis of the original decision to invest.
“And that goes back to the point on the importance of the alignment we have with the manager and the long-term partnership prospects,” he says.
“Fees are obviously a big part of that and without that alignment, we decided not to invest and have removed them from our pool of managers.”
Any redemptions from incumbent hedge funds are un-likely as Tull says he is happy with the plan’s current ex-posure.
Tull’s reservations on fees and desire to constantly pres-sure managers to reduce charges will be a familiar one for firms managing relationships with institutional investors. But his confidence in the hedge fund sector and belief in its ability to offer diversified returns across different asset classes is positive news at a time when other big US pen-sion funds are set to reduce exposure.
MANAGER STRATEGY INITIAL ALLOCATION DATE CURRENT INVESTMENT VALUE TOTAL RETURN
Arrowgrass Multi-strategy July 2012 $112.6m 14.17%
Claren Road Relative value July 2012 $88.3m 10.42%
MKP Macro July 2012 $62.5m 4.32%
Southpaw Event-driven July 2012 $95.1m 18.91%
Aspect Macro November 2012 $28.1m -6.24%
Conatus Long/short equity February 2013 $65.6m 14.58%
Marshall Wace Euro TOPS Long/short equity February 2013 $64.1m 11.03%
Pentwater Event-driven May 2013 $53.3m 9.80%
Stone Lion Opportunistic May 2013 $68.1m 6.23%
Glazer Event-driven May 2013 $47.06m 5.51%
Iguazu (Wellington) Relative value November 2013 $104.7m 4.77%
Magnetar Relative value December 2013 $52.3m 4.62%
Taconic Event-driven March 2014 $101.7m 1.71%
Pharo Macro April 2014 $60.9m 1.52%
Northwest Relative value May 2014 $50m 0.00%
TEXAS ERS HEDGE FUND EXPOSURE, AS OF AUGUST 2014
Getting it Right
Malta’s financial services centre offers financial institutions a
combination of the essential ingredients for success: convenient
location, rapid access to market, effective regulation, rock-solid
legislation, accessible authorities and a pool of highly competent,
experienced professionals.
Many internationally recognised financial institutions have already
experienced the merits of operating out of Malta and their continued
growth and success stands as testament to Malta’s strengths and
potential
The jurisdiction already hosts hundreds of international finance
companies, credit and financial institutions, insurance companies,
fund managers, insurance managers, pensions, trusts and treasury
companies, all attracted by Malta’s unique and well-balanced recipe
for success.
Success depends on getting it right
- Malta is getting it right.
dependableeffectivesecure
E f f e c t i v e | S e c u r e | S k i l l e d
more information on:
www.financemalta.org
Scan QR Code
with your smartphone
FinanceMalta - Garrison Chapel, Castille Place, Valletta VLT1063 - Malta | [email protected] | tel. +356 2122 4525 | fax. +356 2144 9212
Find us on: @FinanceMalta FinanceMaltaYT FinanceMaltaFinanceMalta
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 21
FEATURE MYTHBUSTERS
With so much regulatory change taking place there will inevitably be gossip and interpretations of new rules circulating around the market that turn out to be inaccurate. HFMWeek examines three of the most prevalent rumours floating about the hedge fund stratosphere and looks to separate the fact from the fiction BY MAIYA KEIDAN
MYTH: French border guards are stopping well-dressed people in suits as they exit the Eurostar from London, asking if they are a fund manager and if they have a let-ter of reverse solicitation to prove they are not illegally marketing into the jurisdiction. SOURCES SAY: A spokesperson for the French Border Guard unequivocally denies the rumour, which has been circulating around the market in recent weeks and has been heard by several senior compliance professionals who had been told guards were following a set script of questions.
Th e French Border Guard says it is not the fi rst time they have heard such a rumour. Last year it fi elded media calls asking if they were halting Swiss managers from en-tering the country. French regulator the AMF also denied any knowledge of such action taking place.
So, it looks like France’s strict implementation of the AIFMD only extends as far as adding a requirement for managers to hire a local representative to process sub-scriptions and redemption requests, supply information
to investors and provide shareholders with special data. Th is requirement is being challenged by Aima as it ensures private placement is still next to impossible in the country.
MYTH: AIFMD Annex IV reports will have to be translated into the local language of every country in which non-EU managers wish to privately place. SOURCES SAY: Some operations professionals at hedge fund fi rms in the US had heard that reporting under AIFMD would have to be translated into the local regu-lator’s language and with many targeting Germany and the Scandinavian countries, it was feared this would be a daunting task.
While lawyers say the rumour is not true, it is not wholly unsubstantiated. Local regulators have a legal basis to ask for some fi elds of the reporting to be translated, but “abso-lutely not” the entire form. “Most of the form is numbers anyway,” says one lawyer.
Devarshi Saksena, partner at Simmons & Simmons cau-tions that managers should keep a watchful eye on regula-tors adding any stipulations for translated fi elds in Annex IV.
Other regulation has required such translations in the past. Rules under Ucits, for example, stipulate that the Key Investor Information Document (KIID) must be translat-ed into the local language of the investor’s domicile.
MYTH: Proposed SEC amendments tied to generally so-liciting a hedge fund under the JOBS Act are fi nal rules and should be treated as if they have already come into force.SOURCES SAY: Th e scrapping of a ban on hedge funds generally soliciting in the US under the JOBS Act was passed on 10 July, 2013, but the SEC took this opportunity to propose a host of new caveats that would make it much harder for managers to take advantage of the new regime.
Sources suggest these new proposals may never be en-acted and instead are simply a tactic by the SEC to intimi-date hedge fund managers into not availing of the market-ing freedom.
“I think the SEC proposed the rules to create confusion and threaten those who wanted to generally solicit, but there may never even be fi nal rules,” says one lawyer who does not wish to be named.
Th e proposed amendments ask the manager to fi le an advance notice for private placement 15 days prior and one 15 days aft er the fi rst sale as well as release informa-tion to the SEC on the off ered securities, issuer’s website, types of investors and use of proceeds from the off ering.
Th ose who did not comply with the fi ling requirements will be disqualifi ed for one year from generally soliciting a fund.
Managers have repeatedly told HFMWeek and sister magazine HFMCompliance that since those rules were pro-posed, they have been reluctant to take advantage of the opportunities under the JOBS Act.
I THINK THE SEC PROPOSED THE RULES TO CREATE CONFUSION AND THREATEN THOSE WHO WANTED TO GENERALLY SOLICIT
” LAWYER, ANONYMOUS
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 23
FEATURE LISTED HEDGE FUNDS
Closed-ended hedge funds are back in the spotlight following news that Bill Ackman’s Pershing Square Capital Management is to launch a new listed vehicle in Europe later this yearBY ROB LANGSTON
UK closed-ended hedge funds have had a tough time since the financial crisis with the sector around half as big as it was at the start of 2009. However, there are un-derstandable reasons why Pershing Square Capital Management founder Bill Ack-
man is set to launch a new European closed-ended vehicle, chiefly the permanence of capital that accompanies such structures.
The UK’s listed investment company sector has existed for more than 100 years and over this time attracted star managers from across the asset management industry.
Data from the Association of Investment Companies (AIC), a UK trade body for listed closed-ended invest-ment companies, shows its 12 hedge fund sector members had total assets of £4.3bn ($7bn) at the end of July. This has halved since reaching £8.6bn ($14bn) in August 2008, when it boasted more than 30 constituents.
“In general, hedge funds in the closed-ended sector have been out of favour for a number of years,” notes Kieran Drake, research analyst at Winterflood Investment Trusts. “Many funds struggled to rein in discounts following poor-er than expected performance during the financial crisis and have since delisted.”
Yet, some of the biggest hedge fund names maintain a presence in London’s listed market, such as Bluecrest, Bre-van Howard and Third Point.
The attraction of permanent capital is enough to tempt some managers to seek a listing for their strategies.
“You don’t have the vagaries of monthly flows in and out,” says Ian Morley, chairman of Wentworth Hall Con-sultancy and author of Morley’s Laws of Business and Fund Management. “From the manager's standpoint it gives them a fixed amount of capital.”
London is a popular choice with investment managers looking to launch closed-ended vehicles, although there are other European listing options, such as Euronext.
“A few years ago Euronext Amsterdam threatened the London market for listing funds but that threat has since subsided,” says William Yonge, partner at international law firm Morgan Lewis. “London is certainly one of the largest and most actively traded markets for listed closed-ended funds globally.”
One of the reasons London has become pre-eminent outside the US for closed-ended hedge fund launches is its listing regime, offering managers a number of options: the London Stock Exchange’s Main Market, the Specialist Funds Market and the Alternative Investment Market.
The three markets offer different benefits, with a listing on the Main Market often seen as the gold standard for funds with ambitions of a successful IPO.
However, a Euronext listing offers other advantages that could prove attractive, such as more flexible regulatory requirements.
Permanent capital and the liquidity offered through trad-ing on exchanges offers managers more freedom to invest without the constant threat of outflows. However, trading can often see shares in the listed vehicle move to significant discounts. Managers might be comforted by the fact that discounts to NAV seem to be narrowing. Listed hedge funds discounts range from single digit to low double-digits.
“The stock market, despite what is going on in the world, has risen more robustly. With discounts coming in, it is a sign of health [for the sector],” says Morley, the founding chairman of Aima.
But Winterflood’s Drake points out that managers have had to work hard to control discounts through share buy-back schemes. “The sector is now dominated by a handful of single manager funds, with BH Macro, BH Global and BlueCrest AllBlue representing more than half of the assets in the sector,” he explains. “However, even these large funds managed by well-known managers have had to undertake large share buy-backs to keep discounts from widening.”
So far this year, there has been £121m ($197.5m) in capital redemptions and a further £89m ($145.3m) was returned through a share tender, according to AIC data. In comparison, last year there were capital redemptions of £390m ($636.6m).
Despite a more attractive mainstream IPO market in re-cent years the number of new launches has not picked up.
“There have only been a handful of listed hedge fund launches since the financial crisis, with the last being BlueCrest BlueTrend in 2012,” adds Drake. “This is despite a fairly buoyant IPO market in the broader closed-ended fund sector over the last couple of years.”
It’s also an expensive process, says Yonge, with many man-agers unlikely to make the move because of the resources and costs involved. “For a Main Market listing on the Lon-don Stock Exchange the resourcing of the launch is much heavier,” he adds. “The company will require a sponsor and a minimum market cap requirement of £700,000 ($1.1m).
“The offering must comply with stringent disclosure re-quirements under the EU prospectus directive. It’s a much more expensive process.”
Ackman’s entry to the space could be a boon for the Eu-ropean closed-ended sector but given the costs and hurdles required to be jumped it is far from clear it would trigger a rush of other new entrants.
LISTED HEDGE FUND SECTOR JAN 2007 TO JUL 2014 SOURCE: AIC
E U RO P E
Number of com
panies
Tota
l ass
ets
/ M
arke
t cap
(£m
)
CALLING
BOOK YOUR PLACE TODAYTABLE BOOKINGS
Harriet Spence+44 (0) 20 7832 6577
SPONSORSHIP ENQUIRIESLucy Churchill
+44 (0) 20 7832 [email protected]
REWARDINGEXCELLENCEIN FUND SERVICES
2014U S H E D G E F U N D
S E R V I C E SAWA R D S
October 23, Cipriani 42nd St, New York
www.HFMUSServicesAwards.com
S P O N S O R E D F E AT U R E
1 1 - 1 7 S E P 2 0 14 2 5 H F M W E E K . CO M
HFM DOMICILE FOCUS MALTA
Malta has a long and proud history as a trading nation. A country primed to benefit from import and export to maintain its growing economy. In more recent times this has resulted in an on-going political policy of encour-
aging foreign investment through competitive business tax rates and the development of a highly skilled finan-cial services centre.
Conveniently placed in the centre of the Mediterra-nean, Malta has forged a hard-earned reputation as one of the most competitive domiciles in the EU for hedge fund services. It now looks well placed to enjoy an in-crease of licensed funds as managers seek solutions to some of the operational and distribution challenges thrown up by new AIFMD regulation.
With managers liable to find marketing non-EU funds to EU investors increasingly challenging, the jurisdiction has made itself a hub from which funds li-censed in Malta can seek to sell into the EU.
The local regulator, the Malta Financial Services Au-thority (MFSA), has sought to aid this potential influx of new business by issuing clear guidelines and revising the investment services rules for investment services providers, in order to introduce a new and AIFMD-compliant Depositary Lite regime.
By virtue of this new regime, Maltese-based funds would not be required to appoint a licenced deposi-tary but could seek approval for the appointment of an entity which carries out depositary functions as part
of its professional or business activities. The jurisdic-tion has clearly set itself up as a one of the handful of post-AIFMD EU jurisdictions capable of providing a base for managers who are keen to register their various fund vehicles as AIFs. With a strong financial backbone Malta is also ideally equipped to deal with the expected influx of business, boasting a competent financial sec-tor combined with a developed, robust and expanding financial infrastructure.
More generally, Malta’s financial institutions ended 2013 strongly, a fact highlighted in the 2013-14 Global Competitiveness report published by the World Eco-nomic Forum, which ranked Malta-registered banks highly for stability.
Malta has adapted naturally to the changing land-scape of EU hedge fund regulation and will continue to grow and reinforce its standing as a world-class finan-cial jurisdiction as more managers choose the jurisdic-tion as a home for fund establishment.
Bruno L’ecuyer is responsible for the delivery of projects and programmes and the lead management of the busi-ness analysis work stream activity for the Malta Financial Centre; public relations and strategic marketing guidance in respect of areas impacting the financial services industry also fall under his responsibility.
MALTA
Regulator: Malta Finance Service Authority Number of Hedge Funds: 578Professional Investor Funds: 460Ucits: 64Net Asset Value: €10.3bnFunds listed on Malta stock exchange: 32Fund administrators: 26
DATA BOX
SPONSORED BY
THE
P I N N AC L E OF PERFORMANCEBOOK YOUR PLACE TODAY
TABLE BOOKINGSIndira Peters
(212) [email protected]
SPONSORSHIP ENQUIRIESLucy Churchill
+44 (0) 20 7832 [email protected]
2014U S H E D G E F U N D
P E R F O R M A N C EAWA R D S
October 23, Cipriani 42nd St, New York
www.hfmweek.com/events
SERVICES DIRECTORY
1 1 - 1 7 S E P 2 0 142 8 H F M W E E K . CO M
FUN
D AD
MIN
ISTR
ATO
RS
Rod White, Director, Bermuda and North America // [email protected], Alan McKenna, Director, Europe // [email protected], Irfaan Hossany, Director, Mauritius and Africa// [email protected], Liam McHugh, Director, Asia // [email protected]
Equinoxe is a premium boutique service provider founded in 2007 by experienced hedge fund administration professionals. Headquartered in Bermuda, with operational offices in Bermuda, Ireland, US, Mauritius, Malta and Singapore, we are a full service alternative investment fund administration organization offer-ing both traditional hedge fund administration and middle office outsource products. With institutional technology, institutional procedures, including a SOC 1 report across all offices, the 150+ funds under administration experience ultimate client service via a bespoke operating model tailored to each clients needs.
Thalius Hecksher, Global Managing Director of Business Development // T:+1 (786) 8771923 // [email protected] Hughes, CEO and Founder / T:+44 (0) 778 0997609 // [email protected] Fund Services was established in 2003, and is now one of the world’s largest independent fund administration companies with 34 offices and $26bn AUA. The Apex Global Network is at the heart of the Company’s strategy of being located alongside its clients providing the highest levels of personalized fund services based on four core pillars: Fund Administration, Fund Launch Solutions, Financial Outsourcing and Technologies, providing a full suite of services for our clients. Apex is unique in its ability to Reach Globally, Service Locally and provide best practice cross-jurisdictional solutions enabling a straight through process with complete integration.
Canover Watson, Managing Director – Admiral based in Cayman // T: +1 345 949 0704 // [email protected], Ted Jasinski, General Manager – Admiral based in Virginia // T: +1 804 578 4540 // [email protected] // www.admiraladmin.com
Admiral Administration is a specialist hedge fund administrator founded in 1996. Admiral is part of the Maitland Group, a global institutional provider of fund administration and multi-jurisdictional legal, tax, fiduciary and investment advisory services. The group has US$200 billion under administration and 700+ employees servicing clients from 13 offices across 12 countries. Whether your fund trades equities, options, futures, bonds, bank debt, or complex derivatives, Admiral has an efficient solution to account for the security and customized reporting to match your needs.
Mark Catalano, Head of Business Development // 17310 Red Hill Ave, Suite 135, Irvine, CA 92614 // T: +1 760 889 1225 // [email protected] // April Spencer, Vice President // 3440 Torringdon Way, Suite 205, Chartlotte, NC 28277 // T: +1 980 265 2367 // [email protected] // Danique Sprock, Managing Director // Ara Hill Buildiing, Pletterijweg Oost 1, Willemstad, Curacao // T: (599-9) 845-3286 // [email protected] Fund Services (“ATLAS”) provides complete fund service solutions. Atlas is a privately held, fully licensed, recognised global fund services provider, de-livering tailored hedge fund administration solutions to alternative investment funds including private equity, real estate funds, venture capital funds, hedge funds, and managed accounts. ATLAS is the synergistic partner and preferred incubator of one the world’s largest fund administrators, delivering premium fund service solutions to investment managers located in the United States, Latin America, Brazil, Europe, and Asia, and servicing US onshore funds, and funds in offshore jurisdictions such as the Cayman Islands, the BVI, and Bermuda. The firm has regional offices in Charlotte, North Carolina, Curacao, and soon Malta.
Gerben Oldekamp // T: +31 (0)334673898 // [email protected] // www.circlepartners.com // Circle Partners, Utrechtseweg 31D, 3811 NA Amersfoort, The Netherlands.
Circle Partners is a financial services organisation specialised in rendering accounting and administration, shareholder and organisational services to investment funds established in a different number of jurisdictions and with diverse investment strategies. Our goal is to assist asset managers in building their invest-ment fund and enabling them to concentrate on the asset management business through a process of outsourcing virtually all back-office functions to Circle Partners. Special care and attention is given to accurate and swift communication with the fund manager and shareholders to enhance client satisfaction and confidence and to assist in creating a sound reputation for the fund.
Andrew Dougherty, Managing Director and Head of Alternative and Institutional Solutions - Securities Services North America // T: +1 212 841 2843 BNP Paribas is a leading global provider of securities services that delivers integrated solutions for all participants in the investment cycle: sell side, buy side and issuers. With a local presence in 32 countries across 5 continents and a global coverage of over 100 markets, we work by our clients' side around the world, offering a one-stop shop for all asset classes, both onshore and offshore. In the alternative investment industry, BNP Paribas is well-regarded for the level of thought leadership and service excellence expected from one of the world’s largest and strongest banking groups*. Thanks to our continual investment in technology, people, and product development, we deliver innovative, operationally efficient solutions that operate across the entire value chain for single hedge funds, funds of hedge funds, and separately managed accounts. *Rated AA- by Standard and Poor's.
CACEIS // Paddy Walsh, Business Development Director – UK & Ireland // UK Tel: + 44 20 7214 5053 // email: [email protected] //www.caceis.com CACEIS is an asset servicing banking group dedicated to institutional and corporate clients. Through offices across Europe, North America and Asia, CACEIS offers a broad range of services covering depositary and custody, fund administration, alternative investment servicing, middle-office outsourcing, derivatives clearing, forex, securities lending, and fund distribution support. CACEIS is a leading player in the alternative investment servicing market, and with assets under custody of €2.3 trillion and assets under administration of €1.3 trillion, CACEIS is one of the leading global asset servicing providers and the largest depositary and premier fund administrator in Europe (figures to 31 December 2013).
Marina Lewin, Head of Global Business Development, Asset Servicing // T: +1 212 815 6973 // [email protected] Mannion, Head of EMEA Business Development, Alternative Investment Services // T: +353 1 900 4547 // [email protected] Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and invest-ment services in 35 countries and more than 100 markets. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
Michael Keyrouz // T: +356 2258 9502 // [email protected] Ian Hamiltion // T: +27 21 402 1600 // [email protected] // 276 Fleur-de-Lys Road, Birkirkara, BKR 9067 Malta
IDS Fund Services Malta is part of the IDS Group, the leading African Alternative Investment Administration Group. IDS Malta is regulated by the Malta Financial Services Authority, having opened on the island in April 2010. The company serves funds domiciled in Malta as well as other international domiciles. The company is also affiliated with a number of platforms, providing tailored and inexpensive hosting facilities for start-up and smaller Malta and Cayman-based funds. IDS Group has become a leading fund administrator through listening to its clients and providing tailored solutions and services.
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 29
To promote your company, email: directory@hfmweek .com or call UK +44 (0)20 7832 6615 // US +1 (212) 268 4919
Tony Fischer, President // Tel: +1 267-349-8065 // www.umbfs.com
The Alternative Investment Services division of UMB Fund Services offers a complete back-offi ce solution for hedge funds, funds of funds, registered hedge funds and private equity funds. Our full-service lineup includes product formation assistance, fund administration and accounting, investor accounting and reporting, tax preparation and reporting, and custody (through our affi liate, UMB Bank, n.a.). We are known for high-touch service, leading-edge technology, and the stability of a highly capitalized parent that’s been around for 100+ years. Ask us about Registered Fund Solutions, the industry’s fi rst turnkey solution for launching and servicing a registered hedge fund.
Concetta Mastrangelo, Fund Services Business Development, USA // T: +1 212 719 2178 // [email protected] James Gilbert, Fund Services Business Development & CRM, Cayman Islands // T: +1 345 914 6150 // [email protected]
UBS's Fund Services business is a global fund administrator providing professional services for traditional investment funds, managed accounts, hedge funds, private equity funds and other alternative structures. With service centers located in Canada, Cayman Islands, Ireland, Jersey, Luxembourg, Singapore, Switzerland and the United States together with business development and client service offi ces located in Hong Kong and the United Kingdom, Fund Services is dedicated to providing a comprehensive range of asset services to clients around the globe.For more information, visit www.ubs.com/fundservices
Karine Seguin, Head of Business Development – Europe // T: + 44 (0)207 935 1503 // [email protected] Smith, Head of Business Development – North America // Tel: +1 (404) 364 2068
Trident Fund Services, a division of the Trident Trust Group, provides cost-effective fund representation and administration services across ten jurisdictions in the Caribbean, North America, Europe and Asia. Serving more than 325 funds with AuM exceeding $30bn, managers select us for our independence, pricing based on services performed and not AuM, global footprint, experienced personnel, reliability and responsiveness. We offer clients a more than 30-year track record as a leading provider of administration services to the fi nancial services sector worldwide. Visit us at www.tridentfundservices.com
Punit Satsangi, EMEA Managing Director // [email protected] // T: +44 (0)20 3310 33041 St. Martins Le Grand, London, EC1A 4AS // www.sscglobeop.comSS&C GlobeOp, a division of SS&C Technologies, is an independent top-10 fund administrator for both onshore and offshore hedge funds. Key differentia-tors for our business include our cutting-edge cloud-based services which allow unparalleled transparency and access for investors, regulators and clients alike; our high quality custom service model; our signifi cant staff expertise and propriety ownership of state of the art technology. Our growth and success is driven by high quality service, satisfi ed customers and referrals. SS&C GlobeOp serve over 6,700 funds representing $430bn in AUA ranging from start-up funds to some of the biggest names in the industry.
Ken Somerville // Head of Business Development // [email protected] // T: +353 1 523 8003 // www.quintillion.comJoan Kehoe // Chief Executive Offi cer // [email protected] // T: +353 1 523 8001 // www.quintillion.com
Quintillion is a specialist Dublin based provider of fund administration to alternative investment funds. We provide back and middle offi ce services to a diverse range of fund structures, strategies and domiciles supported by class leading technologies and our expert operations group. Following our start-up or conversion process, funds are serviced by client-centric investor services and accounting teams delivering an accurate, timely and transparent administration solution all within strict deadlines.
FUND
ADM
INIS
TRAT
ORS
Robin Bedford, CEO // [email protected] // (441) 234-0004 // Stephen Giannone, President & Head of Sales // [email protected] // (312) 374-1614 // Greg Knapp, Business Development // [email protected] // (415) 762-8749 // Jorge Hendrickson, Business Development // [email protected] // (646) 439-7004
Opus Fund Services is an award winning independent fund administration fi rm. Within a SSAE16 approved process, Opus uses unique technology and fl at fee pricing to provide automated, integrated middle & back offi ce administration services to domestic and offshore hedge fund and alternative investment vehicles. The ONE platform has received widespread industry recognition including “Best Overall Fund Administrator with AuA < $30bn” by HFMWeek, and Top-Ranked Fund Administra-tor by Global Custodian for an unprecedented fi ve consecutive years. For more information on Opus Fund Services, please visit www.opusfundservices.com.
Steve Slessor, Managing Director, Global Head of Sales // T: +1 519 748 6028 x140 // [email protected] Blair Henderson, Managing Director, Business Development // T: +44 0 203 195 0336 // [email protected]
Mitsubishi UFJ Fund Services is part of the fi fth largest bank in the world with $2.4tn in assets and over 140,000 employees worldwide. Mitsubishi UFJ Fund Services provides a multi product offering that suits clients’ specifi c needs – leveraging the fi nancial and intellectual capital of Mitsubishi UFJ Financial Group. From fund administration, custody, FX hedging, trust, depositary to securities lending and other banking services, Mitsubishi UFJ Fund Services partners with clients throughout the trade lifecycle. Mitsubishi UFJ Fund Services has $165bn in AuA, servicing 1000 funds globally.
Asia: Gillian Chan // T: +852 2295 2968 // gillian.chan@orangefi eld.comEurope: Sean Murray // T: +352 (49) 6767 4417 // sean.murray@orangefi eld.com www.orangefi eld.com
For 40 years across our 25 global locations, Orangefi eld has been providing exceptional alternative investment fund services. Our full suite of services includes administration, set-ups and back / middle offi ce outsourcing as well as corporate, director and trust services along with regulatory compliance. Orangefi eld employs an expert consultative approach to create solutions unique to the client and believes that investing in exceptional technology to meet higher stan-dards allows our clients to succeed. We follow this principle of mutual growth throughout the entire fund life cycle.
Bob Kern T:+1 800 300 3863 // [email protected] // 615 East Michigan St. Milwaukee, WI 53202 // www.usbfs.comSince 1969, clients have come to rely on US Bancorp Fund Services for innovative service solutions and industry expertise. US Bancorp Fund Services has built its reputation on offering the broadest range of top-quality mutual fund and alternative investment product services. The expertise of US Bancorp Fund Services extends from mutual funds to a wide variety of alternative investment product services, including hedge funds, funds of funds, limited partnerships, offshore funds, private equity funds and separately managed accounts. With specialist expertise in both single manager and fund of hedge fund administra-tion, services can be provided for both onshore and offshore funds. Through our comprehensive range of services and products, leading edge technology platforms and superior client service, we work in partnership to offer the solutions you need.
SERVICES DIRECTORY
1 1 - 1 7 S E P 2 0 143 0 H F M W E E K . CO M
EXEC
UTIO
N VE
NUE
ACCO
UNTIN
G, TA
X &
ADM
INIST
RATIO
N
LMAX Exchange LMAX Exchange, Yellow Building, 1A Nicholas Road, London, W11 4AN, Institutional Sales // T: +44 20 3192 2682 // F: +44 20 3192 2572 // [email protected]
The award-winning LMAX Exchange is the fi rst MTF for FX authorised and regulated by the FCA – delivering the benefi ts of limit-order driven, exchange quality execution, pre and post-trade transparency, 4ms trade execution speeds in 66 FX pairs and no ‘last look’ to the institutional FX market – all via multiple connectivity options: FIX 4.4, Java and .Net APIs, MT4/5 bridges. LMAX Exchange – a unique vision for global FX.LMAX Limited operates a multilateral trading facility. Authorised and regulated by the FCA – registered no. 509778
International Management Services Ltd. Geoff Ruddick, Head of Funds // T: +1 (345) 814 2872 // Gary Butler, Managing Director // T: +1 (345) 814 2874 // [email protected] // www.ims.ky
International Management Services Ltd was one of the fi rst in Cayman to specialise in providing professional independent directors to the fund industry. Today, we are a leading provider of corporate governance and associated services to the fund industry. All of our fi duciaries are registered with the Cayman Islands Monetary Authority as ‘Professional Directors’. Our team has over 200 years of collective experience in the fund industry and provides services to some of the largest global hedge fund organizations. We are one of the largest and longest standing truly independent providers of such services.
ACCO
UNTA
NTS David Jarman, Partner //T: +44 (0)20 7556 1262 // [email protected] // Peter Chapman, Partner // T: +44 (0)20 7556 1415 //
[email protected] Buzzacott LLP // 130 Wood Street, London, EC2V 6DL // [email protected] // www.buzzacott.co.uk
Buzzacott is a London based accountancy fi rm with a specialist team offering audit, accounting and taxation services to the hedge fund sector. Buzzacott is a market leader for the provision of start-up, HR, FCA reporting and business support services to UK and US managers and their stakeholders. Buzzacott's Expatriate Tax Team has over 60 tax advisers with UK and US tax qualifi cations and can provide the added compliance and advisory tax services to clients with US shareholders or employees.
Michelle Carroll, partner, Asset Management & Funds // T: +44 (0)20 7893 2711 // [email protected] // Neil Griggs, partner, Hedge Funds // T: +44 (0)20 7893 3775 // [email protected] // BDO LLP // 55 Baker Street, London // T: +44 (0)20 7486 5888 // www.bdo.uk.com
BDO is the world’s fi fth largest accountancy and professional services fi rm, with nearly 49,000 partners and staff across 119 countries, including all major fi nancial centres. We have a strong reputation as a leading advisor to fi nancial services fi rms with a particular emphasis on the asset management sector. We have a dedicated global team and a multidisciplinary approach combining strategy, regulation, risk, tax, corporate fi nance and IT specialists.
Christian Bekmessian // T: +1 212 891 4062 // [email protected]; Peter Cogan // T: +1 212 891 4047 // [email protected]
EisnerAmper LLP is a premier full-service accounting, tax and administration fi rm with global capabilities. EisnerAmper has led the way in establishing and building a highly trained and dedicated Hedge Fund Group. Our professionals have experience and expertise in the intricacies of the regulatory and tax environment, the valuation of complex fi nancial instruments and the challenges of maintaining strong accounting and investment controls. The professionals of EisnerAmper have a decades-long service record to the fi nancial services industry, giving us an understanding of the problems you face on a daily basis, as well as the ability to provide practical solutions. www.eisneramper.com
Alan D. Alzfan, Partner, Financial Services Practice - North America // T: +1 212-372-1380 // [email protected] Lesser, Financial Services Practice - North America // T: +1 312 634 4604 // [email protected] more than 50 years of experience serving the fi nancial services community in key fi nancial hubs, McGladrey professionals help organizations navigate complex reporting, governance and regulatory issues to achieve their business objectives. Based on the knowledge that comes from serving alterna-tive investment companies, investment advisors, investment partnerships/hedge funds, private equity funds, business development companies, mutual funds, broker-dealers and futures commission merchants, we understand the complex operational, fi nancial reporting and compliance issues facing the industry. We provide industry insight, advice and solutions to fi nancial services organizations across the country and around the world. That’s what you can
CUST
ODIA
N BA
NKIN
G
Paul Mifsud, Managing Director // [email protected] // 101 TOWNSQUARE, Ix-Xatt ta’Qui-si-Sana, Sliema SLM 3112T: (+356) 21 33 57 05 // www.sparkasse-bank-malta.com
Sparkasse Bank Malta plc forms part of the Austrian Savings Banks and the Erste Group Bank AG forming part of Austria’s largest banks. From Malta the bank provides private banking and fund custody solutions. As trained private bankers, the bank strives to deliver private, personal and tailored solutions to its fund customers by offering a seamless banking, execution, settlement and custody solution from one account. Fund custody is considered a core service at Sparkasse Bank Malta plc and the bank avoids all potential confl icts by focusing entirely on what it is they are truly hired to do i.e. – safekeeping, record keeping, monitoring and reporting.
Rosie Guest, Brand Development Manager // [email protected] // Robert Kelly, Senior Partner // [email protected] //T: +44 (0)207 529 2305 // 3rd fl oor, 4 Maddox Street, London, W1S 1QPHeadquartered in London, Baronsmead is an independent, specialist risk consultant and broker providing fi nancial risks insurance, guidance and advice to the alternative investment management industry. Baronsmead provides managers and their funds with risk transfer protection from the legal, regulatory, operational and employment risks they face. We have a tried and tested product, and in recent years, have managed and settled around $20m of manager and fund claims in the UK, New York, Cayman Islands and BVI. Hands-on claims management is key, and for this reason we have our own insurance litiga-tion solicitor in-house. At Baronsmead we believe in doing what is right for our clients and maintaining those relationships through a quality service.
INSU
RANC
E BR
OKER
S
Lockton Financial Risks, The St Botolph Building, 138 Houndsditch, London EC3A 7AGHenry Keville, T: +44 (0)20 7933 2157 // [email protected] is the world’s largest privately owned, independent insurance broker, which means our focus is on our clients and our people rather than external analysts and institutional shareholders. Lockton truly has a global footprint with over 60 offi ces around the world and more than 4500 employees with more than 15,000 clients. Our award winning specialist division focus exclusively on the asset management industry and our clients range from the largest asset management fi rms in the world right down to numerous start up operations with each and every client receiving the very best service; our clients have a combined AUM of US$10trn. Call us to fi nd out why the team have the highest client retention rate of any other broker.
INDE
PEND
ENT
DIRE
CTOR
S IMS
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 31
To promote your company, email: directory@hfmweek .com or call UK +44 (0)20 7832 6615 // US +1 (212) 268 4919
E Phillip Chapple, Executive Director // [email protected] // T: +44 (0) 203 170 8815
KB Associates is a boutique operational consulting fi rm with offi ces in Dublin, London, Luxembourg, Cayman and New York. KB Associates advises managers on operational issues relevant to the establishment and ongoing management of offshore investment funds. Services include tailored hedge fund and investment manager start-up services, preparation for investor due diligence (full review to identify potential issues combined with advice on meeting grow-ing investor due diligence standards) and re-domiciliation advisory services.
ADVI
SORY
PRIM
E BR
OKER
AGE
Kevin M. LoPrimo, Managing Director – Head of Hedge Fund Services and Equity Finance // T: +44 (0)20 7399 9461Julian Parker, CEO // T: +44 (0)20 7399 9450
Global Prime Partners Ltd is a prime broker providing a highly personalised specialist service to start up and emerging hedge funds, family offi ces, asset managers and professional traders, often overlooked and underserviced by large fi rms. Our integrated, proprietary technology platform, allows us to provide the right level of integration and reporting to meet each of our client’s needs. We provide start up consulting, trade execution, clearing, custody, margin fi nancing, stock lending and potentially introduction to capital.
Jack D. Seibald, Managing Member, 1010 Franklin Avenue, Suite 303, Garden City, NY 11530 // Tel: +1 (516) 746 5718 // Mob: +1 516 359 7503 // email: [email protected] Capital Markets, LLC offers comprehensive brokerage and related services that provide traditional and alternative investment managers with cus-tomisable and scalable solutions. We were built by former investment managers to serve hedge fund managers, managed account platforms, institutional investors, family offi ces, and registered investment advisers with turnkey solutions designed to free clients to focus on their core competencies. Our offering features world-class custody and clearing options, multi-asset class capabilities, leading execution and order management systems, a seasoned execution desk, a range of fi nancing options, a highly professional operations and customer support team, comprehensive portfolio reporting capabilities, and capital introduction.
Jerry Lees, Chairman, Linear Investments // T:+44 (0) 203 603 9801 // jleeslinearinvestment.com // Sales +44 (0) 203 603 9844 [email protected] // US offi ce: T: +1 (212) 293 1836 // 800 Third Avenue, 39th Floor, New York, NY 10022 // www.linearinvestment.com
Linear Investments provides Mini-Prime brokerage, regulatory incubation and capital introduction services geared towards smaller/mid-size funds. With Linears’ aggregated PB relationships, we can provide attractive pricing for our clients. For Capital introduction, Linear provides investment via its B&L Seeder fund for seed/acceleration capital. In addition, Linear provides outsourced trading through its experienced trading team, encompassing a comprehensive Electronic Execution platform.
Kate Wormald // 103 Wigmore Street, London W1U 1QS // T: +44 (0)20 3693 6085
We are a highly respected specialist consultancy providing legal and regulatory services to hedge funds and investment managers.We provide dynamic and proactive assistance in negotiations of all trading documentation.As specialists we do not have the distractions of a wider portfolio and therefore offer, what we believe is, an unrivalled level of service and understanding in the hedge fund arena. As active participants in the hedge fund industry we are closely involved in key industry developments.We pride ourselves on working in the most commercial and effective ways that best fi t with our client’s strategies and objectives.
Josée Weydert, Managing Partner & Banking and Finance Partner // [email protected] // 2, rue Jean Bertholet, L-1233 Luxem-bourg, Grand Duchy of Luxembourg // T: +352 26 12 29 1 // F: +352 26 68 43 31 // www.nautadutilh.comNautaDutilh is an international law fi rm with offi ces in Amsterdam, Brussels, London, Luxembourg, New York and Rotterdam. With more than 400 lawyers, notaries and tax advisers, NautaDutilh is one of the largest law fi rms in the Benelux region. NautaDutilh Avocats Luxembourg is a full service business law fi rm. It provides high quality legal advice and services in banking & fi nance, corporate, capital markets & securitization, insolvency, tax, investment funds as well as intellectual property and ICT. NautaDutilh Avocats Luxembourg is a recognised player in the Luxembourg legal market. With its 35 lawyers, it serves a wide range of institutional clients, mainly fi nancial institutions, asset managers, large and mid-sized corporates, private equity fi rms, funds sponsors and IT companies.
Henry Bregstein, Global Co-Chair of Financial Services Practice // P: (212) 940-6615 // F: (212) 940-3808 // [email protected] Zinman, Head of Chicago Financial Services Practice // P: (312) 902-5212 // F: (312) 577-4587 // [email protected] advises many of the world’s premier domestic and offshore hedge funds, commodity pools, and other collective investment vehicles. Both fi rst-time and well-established sponsors come to Katten for guidance on the structuring, formation and documentation of hedge funds. We also advise private fund clients in corporate and fi nancing transactions, including leveraged buyouts, minority investments, public and private exit transactions, recapitalizations, restructurings, and fund formation. Katten attorneys help our investor clients optimize the terms of each investment and prioritize their goals within each fund’s unique framework. Our depth of experience representing both sponsors and investors positions us to respond quickly with practical solutions that move deals forward.
LAW
Craig Aronoff // T: +1 (646) 545 3859 // email: [email protected] Robert Morse // T: +1 (646) 545 3860 // email: [email protected]
Victor Securities provides technology-driven brokerage solutions to professional investors including hedge funds, RIAs, CTAs and proprietary trading fi rms. Our clients benefi t from real-time risk management tools, customizable reporting, choice of trading platforms, and a capital introduction team that focuses on facilitating mutually benefi cial relationships between managers and investors.
Rawden Leigh, Marsh FINPRO UK // [email protected] // T: +44 207 357 1209 James S. Obrien, Marsh FINPRO // [email protected] // T: +1 212 345 6432
Marsh is a global leader in insurance broking and risk management. We help clients succeed by defi ning, designing, and delivering innovative industry-specifi c solutions that help them effectively manage risk. We have approximately 27,000 colleagues working together to serve clients in more than 100 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies, a global professional services fi rm offering clients advice and solutions in the areas of risk, strategy, and human capital. Marsh & McLennan Companies has more than 54,000 employees worldwide and approximately $12bn in annual revenue.
INSU
RAN
CE
BRO
KERS
SERVICES DIRECTORY
1 1 - 1 7 S E P 2 0 143 2 H F M W E E K . CO M
Ras Sipko, COO // T: +1 201 291 7747Koger Inc, 12 Route 17 North Suite 111 Paramus, NJ 07652 // www.kogerusa.com // [email protected] Established in 1994, KOGER® is a leading provider of technology solutions to the fund administration and asset management industries. With offices in the United States, Ireland, Slovakia and Australia, KOGER® provides comprehensive technical support 24 hours a day during business days. KOGER® products include: NTAS®, a shareholder register and transfer agency system, ETASTM, a three-tier web application connecting authorized third-parties with NTAS®, GRID®, a middleware application that facilitates the STP of data in and out of NTAS®, IKAS®, a fund accounting platform, PTAS®, a share-registration system that meets the needs of conventional and alternative pension funds, and PENTAS®, a Private Equity fund administration application.
Capital Support Ltd, 3 Harbour Exchange Square, Docklands, London, E14 9GE // Nigel Brooks, Managing Partner // T:+44 (0)20 7458 1290// [email protected] // Carrie Saunderson, Head of Business Development // T:+44 (0)20 7458 1290 // [email protected] Capital Support is an award winning managed IT services and support provider. The Company specialises in implementing and supporting end-to-end solutions for a large portfolio of global finance sector customers. Based in London, Capital Support has grown steadily since forming in 2002. This successful growth has been fuelled by Capital Support’s commitment to innovation and exceptional customer service. The company ethos is to make IT simple for its customers, replac-ing the burden of high contact IT services with intelligently designed packaged solutions that span from consultancy, design and deployment all the way through to live support. Capital Support’s number one objective is to become the most trusted and respected managed IT services provider in the UK.
Backstop Solutions // US: Patrick Rodgers, VP, Regional Sales Manager & Sales Development // T: +1 312-277-7701 // 233 S. Wacker Dr., Suite 3960, Chicago, IL 60606, USA // EU: Simon Johnson, Managing Director, EMEA // T: +44 (0) 203 764 7090 // 25 Berkeley Square, Berkeley Square, London, W1J 6HN, United KingdomBackstop Solutions Group, LLC is an award-winning provider of innovative software solutions to hedge funds, funds of hedge funds, endowments, foundations, pensions, fund administrators, private equity firms and family offices throughout the United States, Europe and Asia. BSG was founded in 2003 with the goal of creating the industry’s first Software-as-a-Service platform designed to help firms in the alternative investment management industry operate efficiently, invest intelligently and communicate effectively. For more information about Backstop’s product offerings, contact us at: [email protected]
TECH
NOLO
GY
CYMBA Technologies Ltd, Holland House, 4 Bury Street, London EC3A 5AW // www.cymba-tech.comKarim Ali, partner & co-founder // [email protected] // T: +44 207 220 6561
CYMBA Technologies is a supplier of front office software solutions for the asset management, multi manager and hedge fund sectors across fund manage-ment trading, compliance and operations functions inclusive of 3rd party connectivity with prime brokers, custodians & administrators. The CYMBA Athena IMS provides multi-asset class asset allocation, portfolio management, decision support, order generation, algorithmic trading, real time profit and loss analysis, execution management and pre & post trade compliance functions to some of the largest investment organisations in the world.
Gravitas, 475 Park Avenue South, 32nd Floor, New York, NY 10016 Derek Huyser, Business Development // T: +1 312 509 4079 // [email protected]
Gravitas is a leading provider of co-sourcing solutions for technology, investment operations, risk and research support to the alternative investment and financial services industry. Founded in 1996, the company provides hedge funds, private equity funds and other alternative asset managers with unique and flexible co-sourced offerings for systems integration, technical support, software development, investment operations, risk analytics, investment research support and more. From co-sourcing and advisory through implementation, Gravitas designs creative solutions that give clients the operational freedom to
HedgeGuard Financial Software // Shona Lynch // T: +(44) 2037007320 Established in London and Paris, HedgeGuard Financial Software is the specialist software provider for hedge funds, family offices, asset managers and startups. HedgeGuard®, their front-to-back portfolio management software, is designed to provide accurate performance monitoring of all funds, from one single platform. It smoothes out the whole management chain, from order management, position keeping, risk management, compliance and reporting. Their clients have the possibility to add other components to HedgeGuard®: the middle-office outsourcing service, working as a natural extension of the fund management team, and the mobile office option, offering full database hosting on private cloud and secured remote access. Not just another software provider. Discover more here www.hedgeguard.com
Eze Castle Integration, Dean Hill, Executive Director // +44 (0)207 071 6802 Simon Eyre, Director of Service // +44 (0)207 071 6835Interpark House, 7 Down Street, London, W1J 7AJ, email: www.eci.com Eze Castle Integration is the leading provider of IT solutions and private cloud services to more than 650 alternative investment firms worldwide, including more than 100 firms with $1 billion or more in assets under management. Since 1995, Eze Castle Integration has developed financial vertical-specific IT solutions including infrastructure design and management (both in our Eze Private Cloud and on premise), telecommunications, business continuity planning and disas-ter recovery, archiving, storage, and internet services. These solutions are complemented by a broad service organisation that delivers outsourced IT support, including a 24x7x365 help desk, project and technology management services, consulting services and more. Eze Castle has presence in major financial centres including 8 US offices, a Singapore office, and a Hong Kong office in addition to its London office.
Intralinks, Inc, www.intralinks.com/hedgefund // T: 1-866-INTRALINKS, +44 (0) 20 7549 5200
Intralinks Fundspace™ for hedge fund managers provides best-in-class tools to distribute information to investors securely, efficiently and confidently. From capital-raising to investor reporting, Fundspace provides a single, end-to-end solution to effectively engage with and meet the increasing demands of institutional investors. With over 25,000 endowments, foundations, pensions, consultants, and advisors accessing information from over 500 fund managers, Fundspace is the world’s leading communication platform for alternative investment. For more information, visit www.intralinks.com/hedgefund.
DEPO
SITA
RY
SERV
ICES
Bill Prew, CEO // T: 44 (0) 203 691 6327 // [email protected] // www.indosgroup.comPaul Whelan, Head of Depositary Services // T: 353 (53) 924 3861 // [email protected] // www.indosgroup.comINDOS Financial specialises in providing AIFMD Depositary-Lite services to offshore hedge funds. Under the AIFMD EU hedge fund managers marketing offshore HFs to European investors, as well as non-EU managers marketing to certain EU countries, need to comply with new depositary requirements. Managers need to appoint a firm such as INDOS to perform oversight over fund valuation, subscriptions and redemptions, compliance with laws, regulations and investment guidelines as well as cash flow monitoring and record keeping of other assets. INDOS is 100% independent and will work with most leading hedge fund administrators to perform arms-length oversight. INDOS is authorised by the Financial Conduct Authority as an Article 36 Custodian.
1 1 - 1 7 S E P 2 0 14 H F M W E E K . CO M 33
To promote your company, email: directory@hfmweek .com or call UK +44 (0)20 7832 6615 // US +1 (212) 268 4919
netConsult Ltd, Level 3, 75 Wells Street, London W1T 3QH // www.netconsult.co.uk Richard McDonald, Director // T:+44 (0)20 71003310 // [email protected] // David Mansfield, Director // T:+44 (0)20 71003310 // [email protected] in 2002, netConsult is an award winning provider of managed IT Services to the global alternative investment industry. We aim to provide a high level of technical expertise to our clients combined with a dedication to customer service. Our ethos is based upon designing secure IT platforms which are manageable over the long term. We are a trusted technology provider to a large portfolio of clients ranging from small start ups to large global funds. netConsult provides a bespoke service to its clients and provides a full suite of IT services including Cloud Services, Outsourced IT, BCP, Virtual CTO and IT Security.
Nirvana Solutions, Mark Donovick, Vice President - Marketing // 80 Broad Street, Suite 1808, New York, NY 10004 // Tel: +1 212 768 3410 // email: [email protected] // London: Tony Premi // [email protected] // +44 (0) 203 174 2342 Nirvana Solutions is a cloud-based financial technology company that provides outsourced portfolio management solutions to hedge funds, prime brokers, and fund administrators. Nirvana is headquartered in New York City, with offices in San Francisco, London, and Dehli.Investment managers need a reasonably priced, entry-level yet scalable system which enables them to minimize upfront capital outlay and concentrate on alpha generation instead of systems and data management. Nirvana consolidates and manages data across multiple asset classes, funds, accounts, traders, prime brokers and custodians in a single integrated platform to provide our clients with cloud-based OMS, PMS, risk management and reporting solutions.
Netage Solutions, Inc., 400 Talcott Avenue, 3rd Floor, Watertown, MA 02472 // www.netagesolutions.com Andrew Nelson, Head of Hedge Fund Sales // Tel: 617 393 2368 // email: [email protected] Netage Solutions has been a premier provider of industry-specific CRM software and online reporting systems for the alternative assets industry since 1998, building a client base that includes hedge funds, funds of funds, private equity and venture capital firms, real estate investment firms, prime brokers, family offices, and institutional investors. Intuitive and highly configurable, Netage's flagship Dynamo™ Suite has improved the productivity of investor relations, marketing, and research teams worldwide. Deep industry experience, dedicated client service and a culture of continuous innovation has made Netage Solutions the vendor of choice for more than 275 of the world’s premier alternative investment firms. Collectively, our clients manage over $650 billion in assets. To learn more about Dynamo™, or to request a product demo, please contact us at [email protected].
Solidfire, Grant Stephens // +44 (0) 7538 440722 // [email protected], Martin Cooper // +44 (0) 7943 211 979 // [email protected]
SolidFire is the market leader in all-SSD storage systems designed for next generation data centers. Leveraging SolidFire’s all-flash architecture, with volume-level Quality-of-Service (QoS) controls, customers now can guarantee storage performance to thousands of applications within a shared infrastructure. Coupling this functionality with in-line data reduction techniques and system-wide automation results in substantial capital and operating cost savings relative to traditional storage systems.
Watson Wheatley Financial Systems, Duncan Wheatley, managing director // T:+44 (0)1608 649640 // [email protected] // www.watsonwheatley.com // Marston House, Cromwell Business Park, Chipping Norton, Oxfordshire, OX7 5SR
Watson Wheatley is a reconciliation software specialist with extensive knowledge of hedge fund operations. Its flagship product i-Recs was specifically de-signed for the hedge fund market having been originally developed for one of the largest alternatives managers in Europe. i-Recs has a unique accounting engine underpinning the product which enables fully integrated trade and cash reconciliations and has the ability to calculate total equity on margin traded instruments. Packaged with i-Recs is a powerful data aggregation tool allowing interface on-boarding in a fraction of the time of traditional solutions. WWFS offers a user-based pricing model with no up-front licence costs.
Sentronex, Joe Sluys, CEO // +44 (0) 207 397 7400 // [email protected], 42 Southwark Street, London, SE1 1UN, www.sentronex.com
Delivering expert, outsourced IT services bespoke to London’s financial community, Sentronex is committed to providing the best of the following services: IT Support, Disaster Recovery, Financial IT Consultancy, Cloud Computing, Hosting and Connectivity. Sentronex’s rapid growth since launching in 2005 is down to a winning combination of specialist technical knowledge and the extensive, fully-managed facilities we offer including multiple Disaster Recovery sites and a state-of-the-art Data Centre. Sentronex looks after an impressive range of FCA regulated clients spanning both the buy and sell-side. With Sentronex, there is no such thing as a one-size-fits-all approach; every solution is tailored to meet the individual needs and requirements of each financial firm.
James Pinnington, Head of Hedge Fund Sales // T: +44 (0)20 3320 5750 // [email protected] For more information about Misys Sophis products, please contact: [email protected] // www.misys.com
Misys Sophis has more than 25 years experience in providing fully integrated cross-asset portfolio and risk management solutions to the world's leading financial institutions. Sophis VALUE is Misys’ flagship system for alternative investment and provides a single solution for portfolio management, performance measurement, investment accounting, risk management, reporting, compliance and data management together with the required connectivity to third par-ties such as prime brokers, custodians and administrators, as well as trading (EMS/OMS), clearing and matching systems.
USA: Branden Jones, 800 Third Avenue, 39th Floor, New York, NY 10022 // T: +1 (212) 293-1836// [email protected]
Liquid Holdings Group is a cloud-based technology and managed services provider to the global hedge fund and active trading markets. We provide hedge funds and other asset managers with the best way to de-risk their business, enhance decision-making, improve transparency and ultimately put more money into their investors’ pockets. While our business is new, our technology has been used for over six years by the most demanding institutional portfolio managers and traders, and its adoption rate is strong with over 45 clients and growing. We are headquartered in New York with offices in Hoboken, Aventura and London.
Jim Serpi – London // T: +44 (0) 20 7821 4950 // [email protected], Andre Fundora – New York // +1 646 385 7554 // Suite 26, 2 Station Court, Imperial Wharf, London SW6 2PY // www.matscosolutions.com Matsco Solutions Group, established in 2002, is the trusted IT support partner for hundreds of hedge funds and alternative investment firms across Europe, the United States and Asia. Specialising in hedge fund technology, Matsco Solutions provide best-of-breed industry solutions to its clients including private cloud services, business continuity planning, specialist start-up services, technology design, support and monitoring, virtual CTO services and a 24/7 engi-neer staffed helpdesk. The company was co-founded by Patrick Ferrall and Jim Serpi, who bring a wealth of industry experience, and has offices in London, New York, Stamford, San Francisco Bay, Hong Kong, Singapore and Beijing.
TECH
NOLO
GY
SERVICES DIRECTORY
1 1 - 1 7 S E P 2 0 143 4 H F M W E E K . CO M
To promote your company, email: directory@hfmweek .com or call UK +44 (0)20 7832 6615 // US +1 (212) 268 4919
Orb Employee Benefi ts // Contact: Geraint Williams, Director // T: 0845 0138709 // [email protected] // www.orb-eb.co.uk
Orb is a highly experienced team of workplace pension and employee benefi ts consultants, specialising in helping hedge funds and their service providers develop effective employee reward programmes.workplace pensions & auto-enrolment - healthcare & dental - life assurance & income protection - keyman & partnership protection - travel insuranceCombining the knowledge you would expect from a large business with the personal approach of a smaller fi rm, we are committed to providing excellent client service. Don’t just take our word for it - 97% of our clients say we are extremely or very responsive.
One Ten Associates 1 Berkeley Street, London, W1J 8DJContact: Mush Ali (ACA), Director // T: +44 (0)20 7016 9910 // [email protected]
One Ten Associates is a specialist recruitment fi rm that services the permanent and temporary needs of the alternative/fund management sector. Our consultants have been in this sector for over ten years and have the network to cover your strategic senior hires as well the junior to mid-senior needs.
EMPL
OYEE
BENE
FITS
SHAD
OW-
ACCO
UNTI
NG
David Ross, Global Head of Marketing // +1 732-318-7109 // [email protected] // Jonathan White, Business Development USA // +1 646-861-3409 // [email protected] // Ranjan Mishra, Business Development UK +44 (0)20 7016 9170 // [email protected] // Bangalore +91 80 30982200 // Mumbai +91 022 30952200We support a full range of administration, middle offi ce and accounting services for investment managers. Tailored for each manager’s specifi c requirements, our Best Thinking and Best Practices help managers grow. We offer customized Straight Through Processing and integrate post-trade operations across virtually every asset class, currency, border, or structure you can imagine. Our deep operational and accounting expertise backed by state of art technology enables a high degree of control via automation in a 24 hour, 6 days a week global delivery model. The result is a new level of scalability and fl exibility to help you grow.
ACA Compliance Group (Europe) Ltd // 11 Berkeley Street, Mayfair, London, W1J 8DS // www.acacomplianceeurope.comRon G Weekes, Chief Executive // T: +44 (0)20 7042 0500 // [email protected] Zappacosta // 589 Eighth Avenue, 7th Floor New York, NY 10018, USA // T: +1 212 868 5940ACA is the world’s largest independent compliance consultancy. Operating from 12 offi ces in America and Europe with a team of 140 – a third of which are former FSA, SEC or NFA (CFTC) regulators – ACA support over 700 clients including a third of the 100 largest hedge fund managers, four of the top fi ve PE fi rms, large retail and long-only managers, asset management institutions, Trusts, brokers and smaller boutiques. ACA in London includes ex-FSA and ex-SEC examiners – a unique offering in Europe.
Cordium // London (headquarters), NY, Boston, SF, HK // UK: Sarah Donnelly // T: +44 (0) 203 141 9658 // [email protected] // USA: Hannah Weinstock Gallagher // T: + 1 212 515 2800 // [email protected] www.cordium.comCordium is the leading global provider of regulatory compliance consulting, accounting and tax services and software to the asset management and securi-ties industry. Today, Cordium has offi ces in London, New York, Boston, San Francisco and Hong Kong and employs more than 170 experienced professionals who support more than 1,500 investment businesses. Our clients range from start-ups to large fi rms with well-established track records. Our asset manage-ment and securities sector focus means we always bring direct, relevant experience to advising our clients, helping them to meet their compliance and regulatory challenges and turning regulatory compliance into a must-have business advantage.
COM
PLIA
NCE
CONS
ULTA
NTS
GOVE
RNAN
CE
Robert Quinn // Managing Director // [email protected] // 42 Brook Street, London W1K 5DB // www.robertquinn.co.ukT: +44 (0)207 958 9127 Robert Quinn Consulting is a London-based premier fi nancial compliance consultancy. We specialise in integrated FCA and SEC compliance programmes and both UK and US fi nancial regulatory compliance to institutional and asset management clients worldwide. Robert Quinn Consulting was founded in 2007 with the goal of providing pragmatic guidance and responsive customer service to our clients. Our dedicated team allows us to be a focused resource contributing to your success.
ManagementPlus // Kavita Thomas, Manager // email: [email protected] // Tel: + 352 2747 4724
Operating from our strategic locations in Luxembourg, the Cayman Islands, Singapore, New York and London, we are a leading independent provider of fi duciary and oversight services to the international funds industry, well recognised by the institutional investor community. Core services include indepen-dent directors, UCITS and AIFM management company solutions and Luxembourg conducting persons. The independent directors are a panel of carefully selected, highly skilled directors from diverse and relevant backgrounds, available around the globe to suit clients' needs.
RECR
UITM
ENT
Darren Gordois & Peter Peacock // +44 (0) 20 3137 8140 // [email protected] or [email protected] // www.mondrian-alpha.com // 5 London Wall Buildings, London, EC2M 5NS
Mondrian Alpha Recruitment Solutions provides innovative human capital solutions & research, market intelligence and competitor analysis to our clients. Our hedge fund coverage includes: sales & marketing, trading & structuring and infrastructure (operations, fi nance, legal & compliance). We pride ourselves on delivering complete, targeted and fast execution across our product suite.Please call in or email us to discuss your requirements.
Chris Apostolou, Director // +44 203 371 0889 // [email protected] // www.arbitrage-search.comArbitrage Search specialises in macro for hedge funds and banks, please call to discuss
Providing the complete DNA infrastructure for funds
Peter HughesGroup Managing DirectorTel: +44 7780 [email protected]
Thalius HecksherGlobal Head of Business Development Tel: +1 305 646 [email protected]
apexfundservices.com
© UBS 2014. All rights reserved.
Whether you have your own European management company or need the services of one.
If you want a full depositary solution or just a ‘lite’ solution.
Regardless of how many EU countries you do business in or how many prime brokers you use.
developing your customized AIFMD reporting and passporting solutions.
We look forward to partnering with you.
Contact us at [email protected] or go to www.ubs.com/fundservices
Does your fund services partner have the AIFMD solution you need?
Global Custodian Hedge Fund Administration Survey 2014
ROLL OF HONOR