bloomberg brief - caradoncapintro.com—compiled by nathaniel e. baker for this week’s performance...
TRANSCRIPT
1 2 3 4 5 6 7 8 9 10 11 12 13 14
News, aNalysis aNd CommeNtary
market calls, revisited How predictions by Jim Chanos, George Soros and others have turned out one year later. page 6
universa to start $1Bln macro fundMark Spitznagel’s firm will focus the new offering on convexity. page 3
short natural gas Bets hit recordHedge funds boosted bearish nautral gas bets to their highest level since the CFTC started reporting data in 2010. page 4
on the moveNewbrook Capital Advisors, Onex Credit Part-ners make hires. page 4-5
sandell expects m&a to returnThomas Sandell, the founder of Sandell Asset Management, said M&A activity should resume early next year. page 6
13f forensics: spdr gold trust etfHedge funds were net sellers of the ETF that tracks the price of gold bullion. page 7
s. korea approves revised rulesSouth Korea’s cabinet today approved a revised plan that will make it easier for domestic inves-tors to establish hedge funds. page 8
over the hedgeHedge fund managers attend ‘Ocean’s Kingdom’ premiere at Lincoln Center. page 9
calendarpages 12-13
spotlightArtemis Wealth Advisors CEO Peter Rup discusses his macro-based approach to hedge fund investing. page 14
By KELLy BiTpacific alternative asset management co., the irvine, California-based firm that
invests in hedge funds on behalf of clients, is searching for new “niche” managers for allocations, according to Chief Executive Officer Jane Buchan.
“What we’re looking for are really off-beat, relatively narrow, niche strategies where we think we can make a fair amount of alpha, not just returns,” Buchan said in a telephone interview. She cited areas where the firm sees opportunity, including equi-
ties of companies that have come out of bankruptcy or reorganization, Asian convertible bonds and correlation and options strategies.
PAAMCO prefers new managers and often allocates $100 million to emerging funds and work with the manager to support their operational needs. An initial investment will rarely be less than $50 million, Buchan said. The firm does not have a seeding business, she said.
“Smaller funds historically have significantly outper-formed larger firms,” she said. “Because we’re so large and have such a big infrastructure, it’s easy for us to help these managers get up to institutional quality standards.”
PAAMCO is searching for “experienced” managers who are starting their own funds, Buchan said. The firm will sometimes work with managers while they build a track record with theoretical money and make allocations depending on the results.
“We want people who are normally setting up their own business because they’ve gotten frustrated somewhere else that they can’t implement their strategy,” she said. “The hedge funds that we pass on very quickly is when people come in and you can tell it’s about building a great big business and it’s not about running the money.”
PAAMCO has $9.5 billion under management and an additional $5 or $6 billion under advisement, Buchan said. The firm tends to choose about 10 new funds for al-locations a year.
PAAMCO’s clients include large pensions and sovereign wealth funds. The firm cre-ates customized accounts for most, which it has been doing for a decade, she said. it also has a core product known as the Moderate Multi-Strategy, a fund of funds that has 50 underlying hedge-fund managers.
PAAMCO to Allocate to ‘Niche’ Strategies: Buchan
Jane Buchan
INStItutION AllOCAtION ($MlN) SeArCh SPeCIfICS StrAtegIeS SOught
Hartford Financial services Group inc. tBd Plans to increase hedge fund and private equity alloca-tion from 2 percent to 4 percent of $132 billion portfolio.
targeting discretionary macro funds, long/short credit and equity.
HdF Finance sa 5-40 per fund (euros)
Paris-based fund of funds adds on average one fund a month. Cautious about liquidity terms. opportunistic tactical.
ascent investment management 2 initially per fund toronto-based fund of funds. will not consider funds with lockups. relative value.
New MANdAteS
BRIEF Bloomberg Hedge Funds 09.27.11
1 2 3 4 5 6 7 8 9 10 11 12 13 14
8.18%
3.90%*
15.06%
2.47%2.84%3.50%
-1.77%
1.49%
Hedge Funds Funds of Funds S&P 500 2-Year Treasuries
2010 total returns
2011 YTD total returns
*from Feb. 26, 2010 (Merrill Lynch Total Return Index)
hedge fund returnsBloomberg BAiF indices, which represent all funds tracked by Bloomberg data, are the source of the below hedge fund and fund of funds data.
returNS IN BrIef
StrAtegy 2010 returN AuguSt 2011 2011 yeAr tO dAte
mortgage-Backed arbitrage 24.60 0.23 8.97
equity statistical arbitrage 3.44 -2.21 7.79
long/short equities 5.76 -0.18 5.97
market-Neutral 5.50 -1.30 5.22
merger-arbitrage 2.09 -1.04 4.74
Capital structure arbitrage 13.26 -0.77 4.20
multi-strategy 3.65 -1.12 3.66
Fixed-income arbitrage 3.65 -0.18 3.36
long/short Credit 5.31 -0.98 3.31
Covertible arbitrage 2.71 -0.42 3.29
distressed securities 4.03 -0.44 3.11
emerging market debt 11.98 -0.09 2.94
Global macro 4.41 -0.82 2.64
Cta/managed Futures 5.31 -2.16 1.98
long-Biased equities 7.15 -0.42 1.95
short-Biased equities 1.68 -0.86 -1.12
Source: Bloomberg Hedge Fund IndicesType HFND<GO> to view return statistics
returNS By StrAtegy
king street capital ltd ■ ’s $12.9 billion multi-strategy fund is in its worst drawdown in its 25-year history, losing 4.8 percent since May, according to HSBC Private Bank’s Hedge Weekly, a copy of which was obtained by Bloomberg. The fund, managed by o. francis Biondi Jr. and Brian J. higgins, was down 63 basis points for the month through Sept. 16, and is down 1.68 percent year-to-date. it launched in 1996 and has returned 11.3 percent on an annualized basis with 4.2 percent volatility, according to HSBC data.
duet asset management ltd. ■ ’s Duet Commodities Fund gained 1.7 percent in August and has returned 33 percent year-to-date through Aug. 31, according to a letter to investors. Energy themes were down 16 basis points during the month, with precious metals and base metals up 84 and 97 basis points, respectively. The fund is managed by tony hall and arno pilz.
monterosso investment management company llc ■ ’s Short-Term Managed Fu-tures Program was up 5.2 percent in August, its best monthly performance since March 2009 when it returned 9.1 percent, according to a letter to investors. ryan deming is the fund’s manager, based in Rolling Hills Estates, California.
—Compiled by Nathaniel E. Baker
For this week’s Performance Snapshot, featuring equity fundamental market neutral funds, see page 10.
09.27.11 hEdgE Funds | Bloomberg Brief 2
Bloomberg Brief hedge funds newsletter Ted Merz executive editor [email protected] 212-617-2309
Bloomberg news Rob Urban managing editor [email protected] 212-617-5192
hedge funds Nathaniel E. Baker editors [email protected] 212-617-2741 Melissa Karsh [email protected] 212-617-4557
reporter Kelly Bit [email protected] 212-617-1097
contributing Katherine Burton reporters [email protected] 212-617-2335
Saijel Kishan [email protected] 212-617-6662
contributing Matthew Kelly data editors [email protected] 609-279-5064
Anibal Arrascue [email protected] 609-279-5084
newsletter Nick Ferris Business manager [email protected] 212-617-6975
advertising [email protected] 212-617-6975
reprints & Lori Husted permissions [email protected] 717-505-9701
To subscribe via the Bloomberg Professional Terminal type BRIEF <GO> or on the web at www.bloomberg.com/brief/hedgefunds
© 2011 Bloomberg LP. All rights reserved.
This newsletter and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints and permissions group listed above for more information.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
By MiLES WEiSSuniversa investments lp, a hedge fund
that aims to protect clients against market cataclysms, is seeking $1 billion for a new macro fund that will try to capitalize on mispriced options, according to a person familiar with the matter.
Universa, which has about $6 billion un-der management, will market the fund as one that specializes in convexity, said the person. The Universa Convex Macro Fund will make bets primarily by purchasing op-tions on benchmarks, as well as individual commodities, currencies, stocks and other financial instruments, the person said.
The fund will seek to profit from macro-economic developments by combining the best ideas from investment partnerships that the Santa Monica, California-based firm has set up to protect clients against specific types of tail risks, such as inflation
and stock market declines, the person said. mark spitznagel, 40, Universa’s presi-
dent and chief investment officer, declined to comment when asked about the new fund. He said, in general, “the types of exposures where we find the greatest edge also work as very good hedges against ex-treme risks, such as stock market crashes.”
“Taken together, they offer an advanta-geous way to play many potentially large macro moves,” he said yesterday in a telephone interview.
The most recent example of Universa’s convexity-based strategy came earlier this month as gold prices tumbled as much as 20 percent. Universa’s inflation funds are up almost 20 percent in September -- and more than 35 percent for the year --after purchasing options betting that gold prices would decline, the person said.
Universa generally uses mathematical
formulas to find options that are bargain priced relative to the potential payout they would provide should markets shift.
“The prices of gold puts was ridiculously low,” Spitznagel said.
Before starting Universa, Spitznagel co-managed a black-swan hedge fund called empirica capital llc with nassim nicholas taleb, the author and New york University professor whose 2007 book, “The Black Swan: The impact of the Highly improbable,” has sold more than 3 million copies and helped spur the market for tail-risk funds.
Universa has typically started individual partnerships for specific clients, including sovereign-wealth funds, rather than pooling investor money in a single fund. Universa Convex Macro will probably gather money from existing clients as well as new inves-tors, the person familiar with the fund said.
fuNd fOCuS
Black-Swan Investor universa Said to Start $1 Billion Macro fund
09.27.11 hEdgE Funds | Bloomberg Brief 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14
MANdAteShdf finance Searches for tactical Managers
hdf finance sa, the Paris-based fund of funds that manages 1.1 billion euros ($1.5 billion), is searching for tactical managers that show an understanding of how macro events will affect the market, according to alex Bouy, analyst and portfolio manager at the firm.
“We want to find managers who have a key understanding of the macro now, being able to turn over their positions and be very opportunistic,” Buoy said in a telephone interview. “People who cover a wide spectrum of asset classes but also are specialists in their own asset class, so that they can find really discounted situations.”
Bouy said HDF Finance actively meets with emerging managers who have less than $1 billion in assets. it also makes allocations to larger firms.
HDF Finance usually allocates between 5 million and 35 to 40 million euros to funds initially, Bouy said. it chooses about one new hedge fund a month, on average, he said.
Bouy said the firm has been “pleased” with its fixed-income arbitrage managers, and that there is “strong upside” in structured credit, though it will be cautious about liquid-ity terms. The firm “can tolerate soft lock ups,” he said.
The firm is “really focused on transparency” and delivering information about its hedge fund investments to clients, Bouy said.
HDF Finance runs 14 funds of funds including multi strategy funds, equity and fixed income funds of funds and a UCiTS fund.
—Kelly Bit
Ascent Investment Management Seeks relative Value fundsascent investment management, the $50 million Toronto-based fund of funds af-
filiate of cidel Bank & trust inc., is searching for relative value strategies for alloca-tions, according to raj kohli, an investment analyst at the firm.
The fund of funds usually invests about $2 million initially, which may vary depend-ing on clients, Kohli said in a telephone interview.
Ascent investment Management has 20 underlying hedge funds. it invests in funds of varying sizes and prefers to see previous returns or a track record and quarterly or more frequent liquidity terms. it will not consider funds with lock-ups, Kohli said.
—Kelly Bit
ON the MOVeNewbrook Capital Makes two hires
New york-based newbrook capital advisors has made two hires, according to an email sent to clients last week, a copy of which was obtained by Bloomberg.
The fund hired tim schenk as analyst and vincent Buonono as controller, the email said.
Schenk was previously a managing director at White elm capital llc, a long/short equity fund based in Greenwich, Connecticut. Prior to joining White Elm at launch in 2007, he was an analyst at Blue ridge capital from 2001 to 2006. At Newbrook, he covers business services, industrials and aerospace.
Before joining Newbrook last month, Buonomo was a senior audit associate at alli-ance Bernstein lp.
—Nathaniel E. Baker
BrIef eXCluSIVeS
hedge funds raise Bearish gas Bets to recordBy MOMiNG ZHOU
Hedge funds boosted bearish natu-ral gas bets to a record on specula-tion falling temperatures and a falter-ing U.S. economy will sap demand for power-plant and industrial fuel.
The funds and other large specu-lators raised short positions 5.9 percent and reduced long positions 3.7 percent in the week ended Sept. 20, according to data from the Com-modity Futures Trading Commission’s Commitments of Traders report. The net-short positions were the biggest since the CFTC started reporting data on four gas contracts in January 2010.
“We still have plenty of production and demand is just not spectacu-lar,” said peter Beutel, president of trading advisory company cameron hanover inc. in New Canaan, Con-necticut.
Output at factories, mines and utili-ties climbed 0.2 percent in August after a 0.9 percent gain in July, figures from the Federal Reserve showed. Factory consumption accounts for 27 percent of total gas demand, Energy Department data show.
Short positions in natural gas held by managed money, including hedge funds, commodity pools and com-modity-trading advisers, in futures and options combined in four con-tracts gained 18,864 futures equiva-lents to 340,336 in the week ended Sept. 20, the CFTC data showed. Long positions fell 12,065 to 316,600.
Traders were net short 23,736 contracts compared with net-long holdings of 7,193 the previous week, the data showed.
in other markets, net-long positions in crude oil dropped 6.9 percent to 167,177, the CFTC data showed.
Net-long bets on heating oil rose 10 percent to 25,619 contracts. Long bets on gasoline declined 12 percent to 44,920 futures and options com-bined, the CFTC data showed.
treNd wAtCh
09.27.11 hEdgE Funds | Bloomberg Brief 4
1 2 3 4 5 6 7 8 9 10 11 12 13 14
cannizaro, investment science plan to start ctaBy BEi HU
cannizaro capital partners llp, a Hong Kong-based hedge fund that oversaw $750 million at its peak, is teaming up with Australia’s invest-ment science asset management pty to start a managed futures fund later this year.
Cannizaro plans to raise $100 million by next spring for the CTA, alastair altham, Cannizaro’s chief executive officer, said by phone from London. A pension fund is in talks to invest at least $25 million, he added.
investment Science, based in Adelaide, South Australia, has been managing an A$200 million ($195 million) managed futures for Australian individuals since November 2007. it is seeking to reach out to international institutions through the alliance.
Cannizaro, whose assets peaked in 2008, has been trying to revive its business after shutting down its Asia fund at the end of 2009. The fund, which returned an average of 11 percent annually in its nine years, was closed down after assets dropped below $100 million during the financial crisis, said Altham, 48.
The planned C2 SRA Fund allocates money based on the risk involved. To avoid the pitfall of CTAs, it will deploy about 70 percent of the risk in quanti-tative strategies derived from historical pricing data. The remaining 30 percent will involve a combination of computer models and forward-looking analyses allowing a small amount of human discretion, Altham said.
C2 SRA Fund is expected to return at least 10 percentage points a year above the U.S. Treasury bond yield across the market cycle, said Altham.
Cannizaro was formed in 2006 when its managers including Chief investment Officer richard howorth spun out of London- and Toronto-based hedge fund lionhart invest-ments ltd. investment Science was founded by david toohey, Kitson and chris howland.
Onex hires Clayton Creek to Manage Institutional Accountsclayton creek has joined Onex Credit Partners LLC, the $1.5 billion Englewood Cliffs,
New Jersey-based debt asset management unit of onex corp., as a managing director, the firm said in an e-mailed statement.
Cheek will be responsible for institutional investor relationship management and market-ing for pension funds, endowments, foundations and consultants.
He was previously head of U.S. hedge fund sales at Edinburgh, Scotland-based martin currie investment management ltd. Before that, he led business development, mar-keting and investor relationships at man group plc and ivy asset management llc, where his area of focus was the U.S. He also conducted manager research for Kidder peabody & co. inc. and is former head trader at chesapeake capital corp.
Onex Credit Partners manages credit-related investments, including event driven, long/short and long-only strategies. Asset classes include syndicated loans, high yield bonds and distressed debt, the statement said.
—Kelly Bit
lAuNCheSShelter harbor Capital to Start in October
Brian kelly and andrew albert are starting Greenwich, Connecticut-based global macro hedge fund shelter harbor capital llc on October 1.
Kelly, co-founder and managing member of the new firm, has been running money in managed accounts for 14 months at Brian Kelly Capital, an investment advisory firm he founded. He will merge the accounts with shelter harbor capital, he said in a telephone interview.
Albert, co-founder and managing member, was previously head of the merger arbitrage and special situations group at Weeden & co. Before that, he was a principal at crt capital group llc, where he specialized in merger arbitrage and convertible arbitrage sales and trading.
Shelter Harbor Capital will charge a 2 percent management fee and 20 percent perfor-mance fee.
—Kelly Bit
emirates NBd unit ties up with Man for Alternative fundemirates nBd asset management ltd., a unit of the United Arab Emirates’ biggest
bank by assets, has teamed up with London-based hedge fund manager man group plc to manage money of its islamic alternative assets fund.
The Dubai-based fund manager will allocate assets of its Emirates islamic Alternative Strategies Fund, set up in 2007, to the Man GLG Multi-Strategy Fund, deon vernooy, Emirates NBD Asset Management’s senior executive officer, said at a news conference in Dubai today. Man Group is the world’s biggest hedge fund manager.
The Emirates islamic Alternative Strategies Fund manages $20.9 million and “if we don’t raise $50 million to $100 million in a year we would be disappointed,” Vernooy said. The fund will seek annual returns of 3 percent to 5 percent over the London interbank offered rate, he said.
The Man GLG Multi-Strategy Fund index has grown at a compound annual rate of 4.75 percent since 2002 versus a 2.37 percent growth of the HFRX Global Hedge Fund index, according to a statement from Emirates NBD Asset Management. The Dubai-based fund company, a unit of Emirates NBD PJSC, manages about 4.5 billion dirhams ($1.23 billion) across 14 funds.
—Arif Sharif
brief exclusives
09.27.11 hEdgE Funds | Bloomberg Brief 5
1 2 3 4 5 6 7 8 9 10 11 12 13 14
MArKet CAllS
thomas Sandell expects uptick in M&A Activitythomas sandell, founder of sandell asset management corp., said he expects
mergers and acquisitions to pick up in 2012.“you’re probably going to see deals on hold for a few months,” before activity resumes in
the first or second quarter, Sandell said at the institutional investor AlphaHedge confer-ence in San Francisco yesterday.
international markets are particularly attractive for merger arbitrage strategies, with the best opportunities for returns in the middle markets, which Sandell defined as between $500 million and $3 billion in market capitalization.
—Nathaniel E. Baker
u.S. Stocks May drop ‘Another 20 Percent’: BiggsStock markets are telling policy makers that “they’ve got to change and act or we’re
going to go into a double-dip recession, and we’re going to go down another 20 percent,” according to traxis partners llc founder Barton Biggs.
Bets that stocks will gain make up 20 percent of Traxis Partners’ holdings, down from as much as 85 percent six months ago, he said.
“i wish i was minus 20,” Biggs said during an interview on Bloomberg Television’s “Street Smart” with Matt Miller and Carol Massar. “i wish i was zero. i don’t think any place is a place to invest.”
“if we’re going into a global double-dip, corporate earnings projections for the U.S. and Europe are way too high,” Biggs said. “So there are major revisions coming.”
—Nikolaj Gammeltoft and Carol Massar
BlueMountain’s Siderow likes Convatec Bondsstephen siderow, president and co-founder of Bluemountain
capital management lp, said bonds of convatec healthcare e sa present an opportunity for investors.
“it’s a very secure type of business, relying on stable cash flows from a chronic condition,” Siderow said of the company, which focuses in part on ostemy care technology. The bonds are trading at yields of 10 percent, he added.
“Single name credit paper is mispriced now more than we’ve seen in years,” Siderow said at the institutional investor Alpha-Hedge conference in San Francisco yesterday.
—Nathaniel E. Baker
tudor Jones Sees ‘decent’ Odds of u.S. Credit Crisispaul tudor Jones, chairman of $11 billion tudor investment
corp., said the U.S. could be headed for a European-style credit crisis, the Memphis Daily News reported.
Jones told the paper there is a “decent probability that at some point we will experience a sovereign credit crisis” similar to Europe.
The economic picture is “going to be bleak for some period of time, unfortunately,” the Daily News quoted Tudor Jones saying. While this “macro situation” won’t be fixed for several years, the U.S. has an innate ability to right itself via “the power of American ingenuity,” he said, according to the story.
—Arie Shapira, Clyde Eltzroth and Melissa Karsh
Stephen Siderow. Photographer: Chris Ratcliffe/Bloomberg
Paul Tudor Jones. Photographer: Amanda Gordon/Bloomberg
09.27.11 hEdgE Funds | Bloomberg Brief 6
kynikos associates ltd. president Jim chanos was short ford motor co. (Bloomberg Brief, sept. 28, 2010).– The automaker’s stock, which was trading around $12.50 per share at the time Chanos made his comments to CNBC, rose to a high of $18.97 per share on Jan. 27. it has since dropped to as little as $9.93 per share on Aug. 8, a low it tested last week.
george soros said gold was “the ulti-mate bubble” (Bloomberg Brief, sept. 21, 2010).– The precious metal was trading around $1285 per troy ounce at the time. it continued its upward trend to an all-time high of $1900 per ounce on Sept. 5, al-most 50 percent higher from when Soros made the statement.
again capital llc partner John kilduff told Bloomberg news that oil prices “are going to be higher next year” (Bloomberg Brief, sept. 14, 2010).– Generic one-month oil futures, which were trading around $77 when Kilduff made his prediction, rose as high as $113.93 on April 29 before dropping. They were trading around $82 last week.
Zac hirzel, founder of dallas hedge fund hirzel capital management llc, named apparel retailers hot topic inc., american eagle outfitters inc. and dsW inc. as acquisition targets, in a letter to investors (Bloomberg Brief, aug. 31, 2010).– While none of the companies have been subjects of acquisition bids, two of them have seen their stock prices rise significantly. DSW has performed best of the three, its stock price more than doubling from $23.77 on Aug. 26, 2010, to a high of $55.31 on July 22. Hot Topic, which was trading around $5 per share at the time of Hirzel’s letter, hit a high of $8.64 on Aug. 31 and was trading around $8 per share last week. American Eagle Outfitters rose initially, from $13.18 on Aug. 26, 2010 to $17.36 on Oct. 12. it dropped to a 52-week low of $10.17 per share on Aug. 25 and was trading around $11 last week. The company was listed among Morningstar’s top takeout candidates in a Sept. 14 report.
MArKet CAllS, reVISIted
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Hedge funds were net sellers of the SPDR Gold Trust ETF in the second quarter, divesting 3.3 million shares in aggregate.
eton park capital management sold the most shares of any hedge fund, disposing of an estimated $242 million worth during the quarter. Twenty funds exited positions in the ETF, including Qvt financial lp, ionic capital management llc and carlson capital lp.
The ETF, which tracks the price of gold bullion, hit an all-time
high of $184.59 per share on Aug. 22. it was the fifth-most popular stock hedge fund holding as of June 30.
John paulson’s paulson & co., which offers investors gold-denominated share classes for most funds, was the largest holder in SPDR Gold Trust as of June 30 among all investor types.
Gold futures fell last week, dropping 9.3 percent in two days for the biggest two-day plunge since 1983.
– Nathaniel E. Baker
13f fOreNSICS: SPdr gOld truSt etf
largest hedge fund shareholders as of June 30
fuNd ShAreS held VAlue ON JuNe 30*
VAlue ON Aug. 22*
VAlue ON SePt. 23*
lAteSt ChANge (ShAreS)
PerCeNtAge Of POrtfOlIO
Paulson & Co. 31,500,000 4,599 5,815 5,041 - 15.8
First eagle investment management 2,863,749 418 529 458 424,241 1.9
water street Capital 1,127,168 165 208 180 -260,600 6.8
Vinik asset management 850,000 124 157 136 -450,000 1.4
Vermillion asset management 830,000 121 153 133 -20,000 67.1
eton Park Capital management 813,000 119 150 130 -1,515,000 2.0
steadfast Capital management 727,450 106 134 116 190,690 3.9
Capstone investment advisors 726,447 106 134 116 472,713 13.4
scepter Holdings 700,000 102 129 112 200,000 5.6
aletheia research & management 678,639 99 125 109 -79,488 1.8
omega advisors 624,900 91 115 100 - 2.1
scout Capital management 600,000 88 111 96 -480,000 3.1
empyrean Capital Partners 600,000 88 111 96 -275,000 5.7
millenium management 571,118 83 105 91 171,118 0.7
* $millions
09.27.11 hEdgE Funds | Bloomberg Brief 7
1 2 3 4 5 6 7 8 9 10 11 12 13 14
regulAtOry/COMPlIANCe
South Korea Approves revised rules on hedge fundsSouth Korea’s cabinet today approved the financial regulator’s revised plan for capi-
tal market rules, which will make it easier for domestic investors to establish hedge funds, the Financial Services Commission said in an e-mailed statement.
The commission unveiled the plan to revise rules for hedge funds and other capital markets in July. The new rules will be effective from early October.
—Seonjin Cha
Merkel urges g-20 to tighten derivates regulationGerman Chancellor angela merkel said that derivates and hedge funds need tight-
er regulation as part of a package of financial market rules to help avoid any repeat of the financial crisis.
Merkel, in a speech to a German industry federation event in Berlin today, called on the Group of 20 to tighten derivates regulation.
—Tony Czuczka
Oasis Management Sues Morgan Stanley Over Sino-forest oasis management llc sued morgan stanley for C$9.5 million ($9.3 million) over
options in sino-forest corp. bought before the Toronto-listed timber company’s stock plunged 71 percent in two days in June.
Morgan Stanley failed to settle the options contracts in an effort to “limit its liability,” Oasis said in a lawsuit filed in London in July. Hong Kong-based Oasis bought options to sell Sino-Forest at C$19 on May 12, three weeks before shares fell to C$5.22 on allegations it had overstated forestry holdings.
Shares in Sino-Forest have fallen 74 percent since June 1, the day before short-seller carson Block’s muddy Waters llc research firm said the company had overstated its holdings.
The put options are valued at C$9.5 million, compared with C$2 million for the equivalent shares, it said in the lawsuit. Oasis paid Morgan Stanley a premium of C$770,000 for the options in May.
New york-based Morgan Stanley claimed the options were terminated because trad-ing in Sino-Forest’s shares was suspended, Oasis lawyers said in the filing. The bank offered Oasis C$3.8 million to cancel the deal, the hedge fund said in the lawsuit.
—Kit Chellel
Judge Approves Madoff trustee Settlement with tremont U.S. Bankruptcy Judge Burton lifland approved a $1 billion settlement of a lawsuit
by irving picard, a liquidator of Bernard madoff’s firm, and hedge-fund firm tremont group holdings inc.
in the deal approved Sept. 22, Picard will accept a cash payment of more than $1 billion from funds associated with Tremont. in exchange, the Tremont funds will be allowed to make claims on the Madoff estate of about $3 billion, according to court filings.
Among the parties settling were Oppenheimer Acquisition Corp., an affiliate of the Oppenheimer mutual funds that bought Tremont, and Oppenheimer’s parents, massmutual holding llc and massachusetts mutual life insurance co.
—Linda Sandler
galleon sentencing scorecardBy DAViD GLOViN, PATRiCiA HURTADO AND BOB VAN VORiS
Since galleon group llc co-founder raj rajaratnam’s arrest in October 2009, judges in Manhattan federal court have sentenced 12 defendants in cases linked to the firm. All but two pleaded guilty:
Zvi goffer ■ , a former Galleon trader, was sentenced to 10 years in prison.
Winifred Jiau ■ was a primary global research llc consultant. She was sen-tenced to four years and is jailed at New york’s Metropolitan Correctional Center.
danielle chiesi ■ , former analyst at new castle funds llc, was sentenced to 2 1/2 years. She begins her sentence Oct. 18.
ali hariri ■ , a former atheros communi-cations inc. vice president, was sentenced to 18 month. He served his time in the Met-ropolitan Correctional Center in San Diego.
robert moffat ■ , a former executive with international Business machines corp., was sentenced to six months in prison and has been released from the Metropolitan Detention Center in Brooklyn.
mark kurland ■ , the co-founder of New Castle Funds, was sentenced to 27 months. He is in a prison in Otisville, New york.
craig drimal ■ , a trader who worked at Galleon’s offices, was sentenced to 5 1/2 years. He hasn’t yet surrendered to prison.
arthur cutillo ■ , a former ropes & gray llp lawyer, was sentenced to 2 1/2 years. Cutillo hasn’t yet surrendered.
Jason goldfarb ■ , a lawyer in Brooklyn, New york, was sentenced to three years. Goldfarb hasn’t yet surrendered.
donald longueuil ■ , a former sac capital advisors lp portfolio manager, re-ceived a sentence of 2 1/2 years. Longueuil hasn’t yet surrendered.
don ching trang chu ■ , a former Primary Global Research consultant, was sentenced to probation.
manosha karunatilaka ■ , a former tai-wan semiconductor manufacturing co. manager, was sentenced to 18 months in prison. Karunatilaka hasn’t yet surrendered.
09.27.11 hEdgE Funds | Bloomberg Brief 8
1 2 3 4 5 6 7 8 9 10 11 12 13 14
John paulson ■ , stanley druckenmiller, philip falcone and paul arrouet were among attendees at last week’s world pre-miere of “Ocean’s Kingdom” at the David H. Koch Theater at New york’s Lincoln Center. Paul McCartney wrote the cinematic music and libretto, his first for a ballet. After the
Sept. 22 performance everyone headed into a tent behind the theater for a pasta supper to be worked off on the dance floor. “This is a very nice night,” said Paulson. The event raised $4 million for New york City Ballet.
—Amanda Gordon
moore europe capital management ■llc co-chief investment officer greg coffey is the second-wealthiest Australian person aged 40 years or less, according to Business Review Weekly, which estimates his fortune at A$743 million ($725 million). The wealthiest is coal-mining investor Nathan Tinkler, with A$1.13 billion.
—Sarah McDonald and Daniel Petrie
saB capital management lp ■ Presi-dent scott Bommer and his wife Donya, a former anchor of the “Good Day Philadel-phia” television show, bought an apartment at 927 Fifth Avenue in New york, the New
york Times reported on its website. William Lie Zeckendorf, co-chairman of real estate firm Terra Holdings LLC, sold the apart-ment for $34.6 million, getting $5.5 million more than he paid for it nine months ago. The 11th floor unit has five bedrooms, 5 1/2 bathrooms, a library, private elevator and a corner living room with direct views of Central Park, according to the listing on property website StreetEasy.com.
—Katie Spencer
elliott management corp. ■ ’s paul e. singer, appaloosa partners inc. Co-Founder david tepper, third point llc Founder daniel loeb and stanley druckenmiller are pushing New Jersey Governor Chris Christie to seek the Repub-lican presidential nomination, according to the New york Times. Singer is “among the most sought-after Republican donors in the country,” according to the Times report.
—Nathaniel E. Baker
OVer the hedge
To Register: Call 800-280-8440 orvisit us at www.frallc.com
Financial Research Associates Proudly Presents
Effective HedgeFund Tax Practices Effective HedgeFund Tax Practices
Everything you need to know to ensureabsolute tax efficiency and compliance
in these challenging times
November 7th and 8th, 2011The Princeton Club, New York City
Earn 14.5 CPE andCLE* Credits!
CLE credits pending board approvalThe 13th Annual
B798halfpagead:Layout 1 9/6/11 10:30 PM Page 1
Paul Arrouet and Dylan Lauren. Photographer: Amanda Gordon, Bloomberg LP
09.27.11 hEdgE Funds | Bloomberg Brief 9
1 2 3 4 5 6 7 8 9 10 11 12 13 14
fIrM fuNd MANAger INCePtION dAte ShArPe rAtIO returN %
dominice & Co - asset management the Cassiopeia Fund-a michel dominice 7/15/2003 1.96 11.75
sophrosyne Capital llC sophrosyne technology Partners lP Ben taylor 12/1/2005 3.24 8.6
saemor Capital BV saemor europe alpha Fund-B sven Bouman 6/25/2008 1.37 7.47
tradelink Global equity llC tradelink Global equity lP richard learner 10/29/2004 3.44 7
Zacks investment management inc Zacks lev U.s. eq mkt Neutral Fund ltd Ben Zacks 3/1/1994 1.17 6.33
PCe investors ltd the abaco Financials Fund ltd-eUr inigo lecubarri 6/10/2003 1.15 5.04
oceanic investment management oceanic Hedge Fund-a Cato Brahde 8/1/2002 2.08 4.8
Zadig asset management llP Zadig Fund-a eUr laurent saglio 12/5/2005 0.98 3.69
Big rock Capital management Peregrine Group-Big rock Capital Fd lars Piepke 1/1/1999 -1.33 3.53
empiric asset management llC empiric market Neutral Fund lP Jeff a Baehr 8/1/2008 1.78 2.73
for sharpe ratio calculation Methodology type flds sharpe <go> on blooMberg. “risk free rates” idoc 2047613 <go>
By Year-to-date returns
A look at some of the best-performing equity fundamental market neutral hedge funds that report to Bloomberg data. Only funds that have reported performance through at least Aug. 31 and have assets of $50 million or more are included. For questions please contact Anibal Arrascue at [email protected]
PerfOrMANCe SNAPShOt: equIty fuNdAMeNtAl MKt NeutrAl
By five-Year annualized returns
fIrM fuNd MANAger INCePtION dAte ShArPe rAtIO returN %
sophrosyne Capital llC sophrosyne technology Partners lP Ben taylor 12/1/2005 1.49 14.23
dominice & Co - asset management the Cassiopeia Fund-a michel dominice 7/15/2003 1.06 12.95
artorius management llC artorius Partners ii lP richard Furlaud Jr 5/1/2003 2.97 11.95
Zadig asset management llP Zadig Fund-a eUr laurent saglio 12/5/2005 0.71 10.62
Big rock Capital management Peregrine Group-the Big rock Capital Fd lars Piepke 1/1/1999 0.33 10.13
oceanic investment management oceanic Hedge Fund-a Cato Brahde 8/1/2002 1.05 9.64
tradelink Global equity llC tradelink Global equity lP richard learner 10/29/2004 0.89 8.77
Caymus Capital Partners lP Caymus energy Fund lP Gregg a Jacobson 6/1/2001 0.86 7.99
PCe investors ltd the abaco Financials Fund ltd-eUr inigo lecubarri 6/10/2003 0.86 7.95
Picton mahoney asset management Picton mahoney mkt Neutral equity Fd-a david Picton 12/30/2005 0.91 6.68
09.27.11 hEdgE Funds | Bloomberg Brief 10
1 2 3 4 5 6 7 8 9 10 11 12 13 14
hedge fuNdS Added tO BlOOMBerg thIS weeKThe following hedge funds were added to Bloomberg’s database this week. Access the Hedge Fund Database Portal by typing HFND
<GO> on your Bloomberg Terminal. To view U.S. hedge fund managers, users must fill out an Accredited investor Form (Option 13).
tICKer BlOOMBerg Id fuNd MANAger MANAgeMeNt COMPANy StrAtegy MANAger lOCAtION
INCePtION dAte PrIMe BrOKer
arCJVre Ky BBG00242F0w4 roBert maCrae arcus investment ltd long Bias eq U.K. 12/1/2003
asmHNw1 Ky BBG0023ZwQ29 team maNaGed argyle street management ltd distressed sec Hong Kong 8/31/2011
BelGlmC Us BBG002404NX9 PatriCK BeaUdaN Belvedere advisors llC Global macro United states 1/1/2011
BelmXoP Us BBG002404sC1 PatriCK BeaUdaN Belvedere advisors llC eq statistical arb United states 4/1/2011
eFGaale Ky BBG002455XP4 team maNaGed Cm advisors ltd Global macro Bermuda 9/12/2011
BoreUUt Ky BBG00242BFB8 oliVer sCHUPP Credit suisse asset management long/short eq United states 8/11/2011 Credit suisse securities Usa
GraBlsC Us BBG002404Nt4 m. KiyosHi oKada Highland Capital management lP Fi directional-Fi United states 10/1/2010
HldVFCd Us BBG002404Nd1 J.d. doNdero Highland Capital management lP directional-Fi United states 3/1/2000
itGmHsP Ky BBG002456ys8 team maNaGed itau Unibanco sa Global macro Brazil 10/25/2010
CyrsylX FP BBG002458KN1 FraNCois BoNNiN John locke investments sa Cta/mgd Futures France 8/29/2011
JorCaPP Us BBG002458Xw3 Vad yaZViNKsi Jordan Capital am llC long/short eq United states 6/1/2008 NorthPoint trading Partners
asialta Ky BBG0022FsXs6 team maNaGed Prudential asset mgmt singapore long/short eq singapore 1/12/2011
rBiCKod Us BBG002424dN8 sKiP taGUe rBi Capital management llC short Bias eq United states 5/1/2011 UBs securities llC
rBiCPtN Us BBG002424CK3 sKiP taGUe rBi Capital management llC long/short eq United states 1/1/2011 UBs securities llC
roCKCCr Us BBG0024253H6 K. sCHweitZer rockview management llC Capital struct arb United states 8/1/2004 Goldman sachs & Co
roCKCsa Us BBG002424s82 K. sCHweitZer rockview management llC Capital struct arb United states 5/1/2008
dooNltd Ky BBG002420XH5 s. waXmaN shannon river Global mgmt long/short eq United states 10/1/2007 Goldman sachs & Co
sHriilP Us BBG002420tw7 s. waXmaN shannon river Global mgmt long/short eq United states 1/1/2004 Goldman sachs & Co
sHrVPlP Us BBG0024209H8 s. waXmaN shannon river Global mgmt long/short eq United states 1/1/2003
tUrNoPP Us BBG002404NZ7 J.d. doNdero tunstall Capital management Capital struct arb United states 4/1/2010
ViVCmoP Ky BBG0024572H9 tHomas lam Viva asset management Cayman Global macro Hong Kong 7/5/2011
For Web News on Hedge Managers on Bloomberg click {STNI HEDGEMANAGERSWEB <go>}
09.27.11 hEdgE Funds | Bloomberg Brief 11
1 2 3 4 5 6 7 8 9 10 11 12 13 14
dAte eVeNt feAturINg lOCAtION CONtACt / regIStrAtION
oct. 2-5 iCBi's meNa investment management Forum
Haissam arabi, Gulfmena alternative investments; sameer sohl, amwal. Grand Hyatt doha informaglobalevents.com
oct. 3, 5pm
100 women in Hedge Funds' operating Hedge Funds in the New world order
"Practical insights on how hedge fund managers should adapt their business to the new regulatory regime."
Greenberg traurig, New york 100womeninhedgefunds.org
oct. 4, 4:30pm
Bloomberg Hedge Funds symposium: expand your reach
Panelists include mark Carhart, Kepos Capital; Joseph lodato, allianceBernstein; remy marino, deutsche Bank; susan soh, Perella weinberg.
Bloomberg headquar-ters, New york
By invitation only. For more information contact aaron Berman [email protected], 212-617-8786 or luigi Berardi [email protected], 212-617-1384
oct. 4-6 Hedge Funds world latam 2011 Barton Biggs; aldo lepori Cappelletti, oNP Pen-sion Fund; otavio Vieria, safdie Private Banking. New york terrapinn.com
oct. 5 aimse and Pensions & investments' 5th annual Hedge Fund Conference
Chris rae, saC Capital; michael Guido, Common-fund; Christopher Bittman, Perella weinberg.
Princeton Club, New york http://www.aimse.com/events/index.cfm
oct. 5, 6pm
Florida alternative investment associa-tion's opportunities in latin american Finance
Panel discussion, wine-tasting event. in partner-ship with alphametrix. the Conrad miami +1-312-267-8434,
oct. 5, 7pm Carnegie Hall opening Night Gala mariinsky orchestra; Bruce Kovner, donald suss-
man expected to attend. Carnegie Hall, New york carnegiehall.org
oct. 5 Hedge Funds Cares's annual New york Fall Fete Cocktail party. rob davis, Concept one inc. dream downtown, New
yorkContact sarah Blaker at [email protected]; hedgefundscare.org
oct. 6 standard & Poor's investor leadership series' 2011 investor leadership Forum
Jeremy Baskin, aXa rosenberg; aaron Brown, aQr Capital.
New york (exact location provided to attendees)
standardandpoorsinvestorleaderships-eries.com
oct. 6 HFa symposium: opportunity in latam Funds Keynote by anthony scaramucci. the Pierre Hotel, New
york https://thehfa.org/hedge_fund_events
oct. 6, 4pm
Bloomberg Hedge Fund seminar: Pre-pare to launch
Julian rogers-Coltman, FF&P; Pierre Crama, signet Capital; Fabien dersy, Newalpha; Jeroen tielman, imQubator.
Bloomberg london [email protected]
oct. 6, 6:30pm
UJa Federation of New york's young wall street Kickoff special guest speaker daniel s. och. UJa Federation of New
york office ujafedny.com
oct. 11-12 2011 Gaim Gma Hedge Fund Confer-ence
Jim Chanos, Peter thiel, investors, managers, economists, policy experts. New york. location tBd http://gaimgma.com
oct. 12-14 alternative asset summit "three days of hyper-networking and concen-trated open and insightful discussions ." the Palazzo, las Vegas http://alternativeassetsummit.com
oct. 13 2011 rock maple & wilmington trust Hedge Fund symposium
Jacob Gottlieb, Visium asset management; michael weinstock, monarch alternative Capital; John Fichthorn, dialectic Capital.
the University Club, New york
maribel alvarez, +1-212-813-2733, [email protected]
oct. 13, 7pm 8th annual Hedge Fund rocktoberfest to benefit a leg to stand on. 583 Park ave, New york altso.org
oct. 17Hedge Fund institutional Forum's roundtable for Consultants & institu-tional investors
"Closed-door roundtable designed exclusively for HFiF members and consultants."
Four seasons Hotel, Chicago http://iimemberships.com
oct. 17-18 Value investing Congress New york Bill ackman, leon Cooperman, Jim Chanos, whitney tilson.
marriott marquis, times square http://valueinvestingcongress.com
oct. 18 Hong Kong Hedge Funds Club Network-ing event Networking, drinks. By invitation only. China Club, Hong Kong [email protected]
oct. 18-20 iCBi's 4th annual FundForum latin america
Francois racicot, mercer; alexandre Pavan Povoa, modal asset management.
intercontinental sao Paulo informaglobalevents.com
oct. 18-20 european alternative & institutional investing summit
Peter Hajas, telluride asset management; rodrigo Gomes de oliveira, tocantis state development Bank.
Fairmont monte Carlo, monte Carlo, monaco [email protected], +1-212-532-9898 x262
oct. 20 second annual merlin manager symposium
Closed-door, day long event with 24 managers and 200 investors. Harvard Club, New york Patrick mcCurdy, +1 212-822-2009,
To submit an event email [email protected]
09.27.11 hEdgE Funds | Bloomberg Brief 12
1 2 3 4 5 6 7 8 9 10 11 12 13 14
dAte eVeNt feAturINg lOCAtION CONtACt / regIStrAtION
oct. 20, 6pm
6th annual Hedge Funds Care denver open your Heart to the Children Benefit Cocktails and networking. Jw marriott denver hedgefundscare.org
oct. 20, 7pm
2nd annual Hedge Funds Care london autumn affair
ticket includes complimentary cocktail and canapes.
whisky mist, mayfair, london hedgefundscare.org
oct. 20-21 mFa outlook 2011 eric mindich, eton Park; Paul singer, elliott man-agement; dinakar singh, tPG-axon; John Paulson.
the Pierre Hotel, New york managedfunds.org
oct. 25 Bloomberg China Conference 2011 "Hedge funds and China" panel. the Hong Kong Jockey Club, Hong Kong
tracy david, +1-646-834-5021, [email protected], bloomberglink.com
oct. 25-26 roundtable Forum Zurich and Geneva
"designed to provide qualified investors and alternative investment managers with a unique opportunity to meet in an intimate and relaxed setting."
Baur au lac, Zurich; mandarin oriental, Geneva
roundtableforum.com
oct. 26 alpha institutes' Hedge Fund Cio summit
anthony scaramucci; ed rogers; robert Picard, lyxor; robert discolo, Pinebridge.
the setai Fifth avenue, New york
Julia rhee, [email protected]; alpha-institutes.com
oct. 26 Hedgeworld's 2011 Fund services Conference & expo
emerging manager showcase with monsoon Capital, JlP Partners Fund, alpha one Capital Partners, Frontera management, sancus Capital management
the metropolitan Club, New york
Greg winterton,+1-646-223-6787, [email protected], hedgeworld.com
oct. 26-27 3Pm annual Conferencethird party marketers, placement agents, investment managers, financial intermediaries, investors.
Hilton Back Bay Hotel, Boston
Kristen Couch, +1 609-799-4900, [email protected]
To submit an event email [email protected]
Please join us for a Hedge Fund Symposium featuring two panels: Recent Launches- Success Stories and The New Face of Institutional Investing: The Hedge Fund Platform. Cocktail reception to follow.
Tuesday, October 4th, 2011 4:30PM-8PM Bloomberg L.P. 731 Lexington Avenue New York, NY 10022
RSVP: Please email: [email protected] or visit BU <GO> on the Bloomberg Professional® service.
EXPAND YOUR REACH
©2011 Bloomberg Finance L.P. All rights reserved. 45704638 0911
09.27.11 hEdgE Funds | Bloomberg Brief 13
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Q: how did you develop your alloca-tion strategy?a: First and foremost by formulating a macro top-down viewpoint of the world. The premise is that if you’ve correctly identified economic conditions, you’re within “trend” and should maximize performance and make mistakes that shouldn’t prove to be fa-tal. On the other hand, if you’re too contrar-ian and not in “trend,” you could suffer sub-stantial loss of capital. My experiences have taught me that hedge fund strategies are no different than any other asset class in that they are significantly affected by changes in economic conditions. The goal was to quan-tify a process by which one could automati-cally dictate an allocation plan that could ad-just with the “seasons”. What evolved out of all that was a proprietary quadrant system where we vary our asset/strategy exposures according to distinct changes in economic conditions. All economic cycles start out in a Quadrant i environment: low growth/low in-terest rate environments, steep yield curves, supportive monetary policy and anemic economic activity. There’s usually some fiscal stimulus that is provided at the same time. Then the typical cycle evolves into a Quadrant ii: higher growth, low interest rate environment, followed by a Quadrant iii scenario, which exhibits both high growth and normalized interest rates and which is typically the sweet spot in the cycle. The cycle then culminates in a very nasty stage, Quadrant iV, where you see high interest rates and declining to low growth environ-ments, typically with inverted yield curves, inflation scares and stock markets that are overvalued and declining.
Q: What quadrant are we in now?a: Despite the recent turmoil, most of the G7 countries are still in a Quadrant ii environ-ment. Because of the European debt crisis and the simultaneous slowdown in emerging markets, these countries might slip back into
a Quadrant i. We still believe that the major industrialized economies are still in the early stages of an economic expansion. Emerging markets, on the other hand, are clearly in a Quadrant iV and headed for recession.
Q: and how does that translate into hedge fund strategies?a: As you can imagine, in Quadrant i there’s a lot of downside risk. Hedge fund strate-gies that work best are credit long/short, distressed and relative value strategies such as market neutral, pairs trading, etc. As the economic cycle expands, directional strate-gies such as equity long/short are important. Also as volatility starts to decrease, you want to reduce your relative value exposures and increase your event-driven and macro exposures. in Quadrant iii you want to be overweight directional and equity-based strategies and minimize your credit-based strategies. in Quadrant iV there are not many strategies that can produce positive rates of return other than dedicated short-selling and relative value arbitrage.
Q: are there any strategies you hold for all four quadrants?a: We hold most strategies in all environ-ments but their weights will vary significantly. We can’t trade hedge funds. We manage our exposure to individual funds very actively. We have had as much as $40 million invested in an individual fund at one point in the cycle and as little as $5 million over the course of an entire cycle. Macro however is one strat-egy that we employ during all four quadrants.
Q: so how many hedge funds are you invested in at one time?a: The fund of funds we managed at its peak employed as many as 22. individual client portfolios probably have anywhere from 12 to 14 at the moment. But they’re all strategy “pure”. We don’t have to employ any multi-strategy funds because we believe we are capable of doing a better job of that than they are because of our asset allocation process.
Q: What causes you to redeem from a fund?a: Size has probably caused 90 percent of the turnover in our client’s portfolio. We have found that the larger hedge funds get, the less attractive the returns and the less predictable they become. i think it’s pretty intuitive. you can tell right away when interviewing a hedge fund manager as to what they’re focused on. if they’re focused on markets, have their own wealth along-side yours, love what they do, and are intent on return maximization, that’s all positive. if, on the other hand, you see them on foundation or endowment boards and/or racing cars, or entering poker tournaments, they’ve achieved wealth satiation and got-ten distracted from their original mandate. if you do the math, 2 percent of $10 billion is an enormous sum of money. This fee provides adequate compensation for just about everyone in an organization irrespec-tive of performance. Once that occurs, and they begin to focus on building an institution as opposed to generating superior returns, they are removed from our portfolios.
peter rup, CEO of multi-family office artemis Wealth advisors and CiO of fund of funds group omega capital manage-ment, spoke to Bloomberg’s Nathaniel E. Baker about his macro-based approach to investing in hedge funds.
SPOtlIght
Artemis wealth Advisors’ Peter rup’s Macro-Based Approach to hedge fund Investing
Age: 54
College/grad School: St. John’s University/University of Chicago
family: Married with three daughters.
Charitable work: Finance committee and former school board president, St.
Peters of Alcantra. Advisory board, Molloy College. Foundation and investment
committee member, Virginia Tech University.
Mentors: Dr. Henry Kaufman. Dr. Diethelm Hoener.
golf handicap: 15 and rising.
favorite NyC restaurant: Gotham Bar & Grill
09.27.11 hEdgE Funds | Bloomberg Brief 14