Professional Documents
Culture Documents
King Street Capital is on the verge of closing its flagship fund to new investments
6 HEDGE FUND PERFORMANCE after taking in more than $3 billion of fresh capital over the past 12 months.
2 Boyer Allen Boosts Japan Exposure At a time when most hedge fund managers were struggling with a mountain of
redemption requests, King Street’s overall assets under management jumped from
3 Citadel Sets Up Offshore Macro Fund $15.8 billion in January 2009 to $19.2 billion last month. Perhaps it’s no wonder,
considering that the King Street Capital fund has never had a down year since
3 Dawson Hires Consultant for Key Job
launching in 1995. In 2008, when hedge funds lost an average of 18%, the King
3 Shumway Alum Tees Up Vehicle Street vehicle gained 2.5%. Last year, it returned 20.1%.
In a Feb. 5 letter to investors, the New York firm said it wants to “moderate the
3 Liongate Rewarded for Good Behavior future growth of the fund’s capital subject to developing market conditions.” One
4 A Resurgent Contrarian Adds Staff investor said he was told that King Street doesn’t want to see overall assets under man-
agement exceed about $20 billion — suggesting the flagship fund could close to new
4 Hayground Spins Off a New Fund See KING on Page 8
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February 17, 2010 Hedge Fund ALERT 2
To find out more about how Goldman Sachs Electronic Trading can connect Need to find the newest
you to people, technology and liquidity across the globe, visit gset.gs.com funds? Go to The
Marketplace section of
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“Latest Launches.”
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February 17, 2010 Hedge Fund ALERT 3
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February 17, 2010 Hedge Fund ALERT 4
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“In my world,
I need a broker that understands why performance
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Your investment process begins long before trade execution. So we’ve built a robust suite of advisory
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February 17, 2010 Hedge Fund ALERT 6
quarter.
Tech-Stock Specialists Launch Fund The funds’ offering memoranda permit the firm to erect
Two veteran technology-stock analysts are marketing a gates. It exercised that option in late 2008 in order to retain a
long/short equity fund they began trading this month from a war chest large enough to exploit an anticipated rebound in
newly established firm in San Francisco. the market.
San Francisco Investment Management launched SFIM Founded in 1988 by David Shaw, the firm’s overall assets
Opportunities Fund with about $5 million of friends-and-fam- under management fell to about $27 billion in January from
ily money. Partners Dane Lewis and Andrew DeSomma are now a peak of $36 billion in 2008.
trying to raise outside capital. Despite investor nervousness, the Oculus fund finished
Both Lewis and DeSomma hail from large San Francisco 2008 with a 7% gain, compared to an industry-average loss of
hedge fund shops. Before launching SFIM last year, Lewis was 18%. Last year, Oculus gained 9%. It is about flat for 2010. ❖
an analyst at the $1.5 billion Crosslink Capital. DeSomma pre-
viously worked at the $1.3 billion Artis Capital.
The two met while working at boutique investment bank
Robertson Stevens, which raised capital for technology start-
ups during the late 1990s. After the tech bubble burst, the Hedge Fund Performance
San Francisco firm was shuttered in 2002 by parent Jan. 2009
FleetBoston. ❖ Return Return
(%) (%)
BENCHMARK INDICES
Millennium Alum Markets First Fund S&P 500 -3.60 26.46
Event-driven manager Ironsides Partners is marketing its Russell 2000 -3.73 25.21
MSCI EAFE (Europe, Australia, Far East: net) -4.44 27.75
debut hedge fund after running money for Israel “Izzy” Barclays Aggregate Bond 1.53 5.63
Englander’s Millennium Management for the past three years.
The Boston firm, founded in 2007 by ex-Millennium port- Barclay/Global HedgeSource -0.28 24.12
1,900+ funds (unweighted)
folio manager Robert Knapp, started trading Ironsides
Opportunity Fund last month with less than $50 million. The CogentHedge -0.88 16.48
fund will be showcased by Goldman Sachs’ capital-introduc- 3,100+ funds (unweighted)
Arbitrage -0.01 26.94
tion team at an emerging-managers conference Goldman is Event-driven 1.06 26.66
hosting on Feb. 24 in New York. Fixed income 0.76 20.77
Knapp ran an event-driven book for Millennium from 1996 Long/short -0.90 21.83
to 2006. At Ironsides, he has focused on four main strategies: Global macro -0.83 7.17
closed-end fund arbitrage, emerging markets, natural Multi-fund -0.66 9.99
Sector -0.86 33.98
resources and distressed debt. Between Millennium’s account Trading -2.44 0.88
and the new hedge fund, Ironsides has $50 million to $100 Regional -0.68 27.14
million under management. ❖
Credit Suisse/Tremont Hedge Fund Index 0.17 18.57
400+ funds (unweighted)
Shaw ... From Page 1 Dow Jones
withdrawals even though it invests largely in liquid securi- Hedge fund strategy benchmarks
Equity long/short -0.28 4.88
ties, including futures and options, and had enough cash on Event driven 0.70 15.54
hand at yearend 2008 to support most of the redemption Merger arbitrage -0.06 8.31
requests.
Hennessee Hedge Fund Advisory -0.50 24.85
Oculus had $8.8 billion of assets at yearend 2009. D.E. 1,000+ funds (unweighted)
Shaw Composite, which targets more illiquid investments,
continues to gate investors, paying them a percentage each HFN Hedge Fund Aggregate Average -0.78 19.44
4,900+ funds (unweighted)
HFRI Fund Weighted Composite -0.71 20.03
2,000+ funds (weighted)
Unless your company holds a multi-user license, it is a
violation of U.S. copyright law to photocopy or reproduce Morningstar 1000 Hedge Fund Index -1.28 19.67
any part of this publication, or forward it electronically, 1,000+ funds (unweighted)
without first obtaining permission from Hedge Fund Alert.
RBC Hedge 250 -0.07 19.24
For details about licenses, contact JoAnn Tassie at 201-
250 funds (weighted)
659-1700 or jtassie@hspnews.com.
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Or call 201-659-1700. You can also complete the Order Form on the last page of this newsletter and fax it to 201-659-4141.
February 17, 2010 Hedge Fund ALERT 7
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February 17, 2010 Hedge Fund ALERT 8
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February 17, 2010 Hedge Fund ALERT 9
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February 17, 2010 Hedge Fund ALERT 10
CALENDAR
Main Events
Dates Event Location Sponsor Information
March 10-13 Boca 2010 Boca Raton, Fla. FIA www.futuresindustry.org
April 19-23 Fund Forum Asia 2010 Hong Kong ICBI www.icbi-events.com
May 2-4 Global Hedge Fund Summit Southampton, Bermuda Institutional Investor www.marhedge.com
May 12-14 Emerging Managers Summit Chicago Opal www.opalgroup.net
June 14-17 GAIM International 2010 Monaco ICBI www.icbi-events.com
June 28-July 1 Fund Forum International 2010 Monaco ICBI www.icbi-events.com
Sept. 26-28 Alpha Hedge Institutional Investment Conference San Francisco Institutional Investor www.marhedge.com
Events in US
Dates Event Location Sponsor Information
Feb. 21-23 Alternative Investments North America Summit Amelia Island, Fla. Marcus Evans www.marcusevans.com
Feb. 22 Active-Passive Investor Summit New York IMN www.imn.org
Feb. 22-24 TradeTech New York WBR www.wbresearch.com
Feb. 23 Evolving Concepts in Risk Management/Measurement New York Infovest 21 www.infovest21.com
Feb. 25 Surviving a Hedge Fund Operational Due Diligence New York FTF www.ftfnews.com
Feb. 25 P.E. Fundraising From Family Off. & Wealthy Individuals New York Capital Roundtable www.capitalroundtable.com
Feb. 25-26 Emerging Markets Investor Forum New York Private Equity Intl. www.peimedia.com
Feb. 26 Distressed Investing Leaders Forum 2010 New York Golden Networking www.goldennetworking.com
March 1 Trading Regulation & Compliance Forum New York FRA www.frallc.com
March 1-3 Distressed Investment Summit Huntington Beach, Calif. IMN www.imn.org
March 2-3 Global Real Assets Investment Forum New York Institutional Investor www.iiconferences.com
March 3 Anti-Money Laundering & Financial Crimes Conference New York SIFMA www.sifma.org
March 3 Derivatives & Hedge Accounting Boston FTF www.ftfnews.com
March 3 Surviving a Hedge Fund Operational Due Diligence Boston FTF www.ftfnews.com
March 4 How to Launch a Hedge Fund Boston FTF www.ftfnews.com
March 7-10 Family Office Forum Palm Beach, Fla. NMS Management www.nmsmanagement.com
March 10 Exchange Traded Funds Investing Summit 2010 New York iGlobal Forum www.iglobalforum.com
Events Outside US
Dates Event Location Sponsor Information
Feb. 22-23 Institutional Investors’ Congress Vienna Opal www.opalgroup.net
Feb. 22-25 Asset Allocation Summit Australia 2010 Sydney Terrapinn www.terrapinn.com
Feb. 25 HIFREQ TRADE London In Vantage Group www.invantage-group.com
Feb. 26 Hedge Fund Regulation, Reporting & Controls London Infoline www.infoline.org.uk
Feb. 28-March 3 GAIM Ops Cayman Grand Cayman IIR www.iirusa.com
March 1-4 Hedge Funds World Middle East 2010 Dubai Terrapinn www.terrapinn.com
March 3-4 Distressed Debt & Restructurings Frankfurt C5 www.c5-online.com
March 10-11 Microfinance Investment Summit Geneva C5 www.c5-online.com
March 11 Rights & Responsibilities of Institutional Investors Amsterdam Institutional Investor www.iiconferences.com
March 15-17 Asset Allocation Summit Asia 2010 Hong Kong Terrapinn www.terrapinn.com
March 16-18 Alternative Asset Allocation Seminar London EDHEC www.edhec-risk.com
March 17-18 AsiaHedge Forum 2010 Hong Kong Hedge Fund Intel. www.hedgefundintelligence.com
March 19 Institutional Property Investor London AI Conferences www.aiconferences.com
March 22-23 International Life Settlements Conference 2010 London Deal Flow Media www.dealflowmedia.com
March 23-26 Asset Allocation Summit Africa 2010 Cape Town Terrapinn www.terrapinn.com
March 29-31 Real Estate Investment World China 2010 Beijing Terrapinn www.terrapinn.com
March 29-31 Timberland Investing Latin America Summit 2010 Sao Paulo IQPC www.iqpc.com
To view the complete conference calendar, visit The Marketplace section of HFAlert.com
To start your subscription, return to the e-mail we sent with this issue and click on the "subscribe now” link.
Or call 201-659-1700. You can also complete the Order Form on the last page of this newsletter and fax it to 201-659-4141.
February 17, 2010 Hedge Fund ALERT 11
LATEST LAUNCHES
Equity at
Portfolio managers, Launch
Fund Management company Strategy Service providers Launch (Mil.)
SW Global Credit Opportunity Fund David Hinman and Long/short: Custodian: State Street Jan. 1
Domicile: U.S. Raymond Zucaro emerging markets Law firm: Proskauer Rose
ASee Page 7 SW Asset Management, Auditor: PricewaterhouseCoopers
Newport Beach, Calif.
949-207-6313
To view all past Latest Launches entries, visit The Marketplace section of HFAlert.com
presents
RETHINKING STRATEGIC Here from: Juan Carlos Artigas, Investment Research Manager, World Gold Council
ASSET ALLOCATION: Bucknell University
Michael Beblo, Director of Private Equity, Alfred I. duPont Testamentary Trust
Robert Wood Johnson
• Pinpointing the asset classes Foundation Nathan Fischer, Former Chief Investment Officer, The Lumina Foundation
that suffered the biggest Museum of Virginia Kenneth J. Frier, Chief Investment Officer, Hewlett-Packard Company
losses over the past 2 years Endowment Fund
Lisa Mazzocco, Chief Investment Officer,
University of Los Angeles County Employees Retirement Association
• Dissecting what Connecticut Foundation
opportunities are available Stuart Odell, Assistant Treasurer Director, Retirement Investments, Intel
Penn State University
for foundations and Corporation
Pepperdine University
endowments Jeffrey Scott, Chief Investment Officer, Alaska Permanent Fund
The Edward W. Hazen
• Debating whether the Foundation Lincoln K. Walworth, Director - Investments, AAA Northern California,
Nevada & Utah
prospects for alternatives Jay Yoder, Former
are as good in the future as Director of Investments Johnny Wu, Managing Director, Head of Institutional Coverage Group,
DePaul University Investor Solutions Americas, Barclays Capital
they have been in the past
and Many Others! Mark Yusko, President and Chief Investment Officer, Morgan Creek Capital
To start your subscription, return to the e-mail we sent with this issue and click on the "subscribe now” link.
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February 17, 2010 Hedge Fund ALERT 12
desk. He is currently on gardening leave services until Jan. 24, is now in the
THE GRAPEVINE until mid-April. recruiting business. She joined San
Francisco search firm Innovations PSI
... From Page 1
Jennifer Strickland, who formerly this month. Heske has spent 15 years in
Patterson’s lieutenant on a new worked in investor relations for HBK the financial-services business, primarily
corporate-credit fund that’s expected to Capital of Dallas, starts this week at $4.5 in the hedge fund industry.
grow to $1 billion by yearend. Two weeks billion hedge fund shop BlueMountain
ago, equity analyst Markus Homor joined Capital of New York. She will handle Bob Kulperger joined the hedge fund
a new event-driven proprietary-trading investor relations and sales, reporting to team at third-party marketer Park Hill
unit at Societe Generale in New York. BlueMountain co-founder Stephen Group last month. Kulperger is a princi-
The unit is headed by Citadel Investment Siderow. pal in the firm’s San Francisco office. He
alumnus Wayne Yu. previously spent seven months in the
Michelle Sweda has rejoined UBS’ capi- sales and marketing group of New York
Sanem Tatlidil started last week as head tal-introduction team in Chicago, where hedge fund operator Fir Tree Partners.
of investor relations for startup incuba- she worked from 2005 to late 2008 before Before that, he was a vice president for
tion firm Stride Capital of New York. taking a job at commodity-trading advi- U.S. marketing at Toronto-based
Tatlidil, who is a partner at Stride, previ- sor 2100 Xenon. She now reports to Northwater Capital.
ously worked at New York fund-of-funds Charlotte Burkeman, head of UBS’ cap-
operator Archery Capital. Stride is headed intro team. A slew of hedge fund operators —
by Don Rogers, who has spent 15 years in including Caxton Associates, Davidson
the hedge fund-seeding business, includ- Researcher Dustin Cappalletto left Verition Kempner, J.P. Morgan Asset Management,
ing a stint at Skybridge Capital. Fund Management last month. The Paulson & Co., Perella Weinberg Partners
Greenwich, Conn., multi-strategy firm is and Third Avenue Management — are
David Memmott left Morgan Stanley last now scouting for a replacement. Verition’s considering a play for troubled
week to head the trading desk at ISI chief, Nicholas Maounis, led Amaranth Blockbuster Video. Competition from
Group, a New York broker-dealer that Advisors before that firm collapsed in Netflix and digital video recorders has
caters to hedge funds, long-only man- 2006 because of a bad bet on natural gas. eroded Blockbuster’s customer base,
agers and pension funds. Memmott forcing the sale of assets. But potential
spent 14 years at Morgan Stanley, includ- Suzanne Heske, who had been selling acquirers believe the company still has
ing five years heading the equity-trading Fidelity Investment’s prime-brokerage plenty of value left to salvage.
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02/17/10