institutional investor

Hedge fund foundations thrive

Jim Kim — Thu, 19 Jun 2008 07:20:40 -0400

According to an article on Institutional Investor's website, the hedge fund industry has opened up its wallet this year, despite some tough times. So far in 2008, total annual giving by the top 25 hedge fund foundations increased 61 percent over the last 12 months to $459 million, Absolute Return figures. The top 25 hedge fund foundations now have $4.6 billion, up 31 percent from last year. The top givers were the Open Society Institute, George Soros of Soros Fund Management with $1.3 billion; the Robertson Foundation, Julian Robertson of Tiger Management with $751 million; and the Simons Foundation, by Jim Simons of Renaissance Technologies with $477 million.

For more:
- here's the article

Related Article:
Hedge funds performance holding up

Some perspective on hedge funds

Thu, 03 Apr 2008 07:59:55 -0400

Are we getting to the point that the number of hedge funds will inevitably rise past the number of stocks out there? Seems likely. Some new data from Crédit Agricole Structured Asset Management finds there now are nearly 10,000 hedge funds. That's twice as many hedge funds as there were in 2002 and three times as many as in 2000. Nearly 40 percent of those hedge funds are no more than two years old. Not even a massive credit crisis has put much of a dent in those numbers. What we're seeing is the kind of maturation that characterized the early days of the mutual fund industry. A lot of back office-like infrastructure work still needs to be done, but the industry is here to stay.

For more:
- here's an item from the Institutional Investor Web site

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Shadow banking universe gets more complex

Fri, 07 Mar 2008 06:59:54 -0500

We've heard a lot of denunciations recently of the shadow banking system, which seems to be raining problems on the brightly lit banking system. But here's a thought; one Pimco official suggests that sovereign wealth funds stand to make the shadows even darker, according to Hedge Fund Daily. Hedge funds, of course, are not the most transparent of vehicles. But SWF make them seem downright chatty about their business. You have to think they represent a huge pool of potential customers for purveyors of structured finance products. If certain forms of CDOs, for example, are to survive, they will need new buyers that do not answer to the public.

For more:
- here's the item on the Institutional Investor website

Related Articles:
Shadow banking system any clearer? Article
More on the global worry over SWFs Article
Shareholders to cry foul over sovereign wealth? Article

Consolidation in the PE industry

Mon, 03 Mar 2008 06:59:55 -0500

We all know that the private equity industry has entered a down cycle. But is it so bad that we'll see a lot of consolidation? It doesn't seem like any major firm is anywhere close to that level of trouble. Institutional Investor's website notes that David Rubenstein, co-founder of The Carlyle Group, has said recently that he thinks the current pause will give rise to some historic consolidation, akin to what happened in investment banking in the 1950s. That seems a bit dramatic. But it maybe that the top firms continue to grab the lion's share of the really big deals. He expects six to eight "brands," not all of which will be American.

For more:
- here's the item

Read more on: consolidation | investment banking

Leveraged deals in perspective

Fri, 29 Feb 2008 06:59:57 -0500

The current slowdown in the leveraged deals environment is starting to take on historic proportions. The Financial Times notes data from Thomson Financial showing that the announced deal volume in February was $827.7 million; that's the first time the monthly total has failed to pierce the $1 billion level since June 1998. You've got to wonder if all the announced deals will ever make it into the completed deals column. So far, institutional investors seem willing to stay the course. It will be a long time before returns return to the rates we've seen in recent years.

For more:
- here's the item

Read more on: leverage | institutional investor

SPOTLIGHT: Hedge Fund Growth Moderates

Thu, 14 Feb 2008 06:59:52 -0500

Excluding performance gains, hedge funds collectively grew 17 percent in 2007, compared with 27 percent in 2006 (Hedgeco.net and Institutional Investor). Article

Renaissance Technologies feels quant fund pain

Tue, 15 Jan 2008 06:59:56 -0500

Quant funds have taken their lumps this year. Big macro-type quant funds were among the biggest hedge fund losers last year, and many think the whole idea of quant funds has been tarnished. Adding to the negativity: Renaissance Technologies. This once-mighty firm's Institutional Equities Fund has suffered recently, and it has apparently returned $4 billion to customers, according to an article on the Institutional Investor website. James Simons said last year that the fund could hit $100 billion. It is now about $20 billion. The firm is hardly alone: One estimate holds that investors have redeemed $20 billion from the $120 billion in quant funds.

For more:
- here's the Institutional Investor article

Are quant funds really dead?

Tue, 08 Jan 2008 06:59:54 -0500

The credit crisis in some ways amounted to a strong kick in the butt for quantitative funds. Many of them just coped with the herd to the doors and their returns suffered. But is the idea dead? A lot was made of the new Goldman Sachs hedge fund opting for more of a stock picking strategy, but not all are convinced the quant approach is tired. Consider Horton Point, which will launch its Gallery QMS Fund in January, according to an item on the Institutional Investor website. The new fund will feature 11 separate strategies--in equities, fixed income, credit arbitrage, volatility arbitrage and insurance-related strategies. That's well beyond the norm. CEO Dimitri Sogoloff is proud of the 10 PhDs he has hired, including a nuclear physicist and computer scientist. We'll likely see a lot of innovation this year from the quants. Of course, the numbers will tell the true story.

For more:
- here's the Institutional Investor article

Jury still out on Och-Ziff IPO

Mon, 19 Nov 2007 06:59:55 -0500

You have to give Och-Ziff and its bankers credit for managing to go public in a really awful environment. It is not surprising that its dipped a bit in the after-market. It will likely be seen as something of a pure play for hedge funds. Hopefully all publicly listed alternative investment firms will be judged according to their own fundamentals. An item on Institutional Investor's website notes that Och-Ziff's returns have not been stellar, a 13.4 percent return this year, which trails the S&P500. The firms also lags on a five year basis. However, "because of its stable, less risky investments" it may be more attractive to investors. That's the bet anyway. 'More fee income, less income for gains' is a driving principle in this arena.

For more:
- here's the item

Related article:
- Hedge funds still bent on going public?

And the top equity research sales force is...

Wed, 14 Nov 2007 06:59:56 -0500

Bear Stearns could use some good news. Here is a little bit: It has been named the top equity research sales team by Institutional Investor. This is according to a poll of big investors and portfolio managers. I'm not sure exactly what this means. They're nice guys? They've been able to keep the freebies coming despite reform? Still, it's an honor. It unseated Lehman Brothers from the top spot. Citigroup and Merrill Lynch came in third and fourth. JP Morgan Securities came in fifth.

For more:
- here's the list

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