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1. Bloomberg Hedge Funds 01.15.13
BRIEF News, analysis and Commentary
www.bloombergbriefs.com
Ex-SAC Portfolio Manager Simonian to Start Fund
By Kelly Bit league table: prime brokers
Charles Simonian, a former portfolio manager at SAC Capital Advisors LP’s Sigma Goldman Sachs tops the list ahead of UBS.
Capital unit, plans to start a long-short equity hedge fund, according to a person with page 9
knowledge of the matter. performance snapshot
Simonian, 41, will begin New York-based Trove Capital Management LLC in March or Harmonic Capital and Fort LP head the CTA/
April, said the person, who asked not to be identified because the information isn’t public. managed futures tables. page 8
The fund will focus on industrial, consumer, media, telecommunications and business
from the minutes
services stocks with market capitalizations of $1 billion or more, and its capacity for as- Connecticut may seek a fund of hedge funds.
sets is at least $1 billion, the person said. San Antonio’s Fire & Police Pension Fund
Simonian confirmed the start of his fund. moves closer to filling its direct lending man-
Simonian joined SAC’s Sigma Capital unit in 2008 and left in September, the person date. page 4
said. At SAC, the Stamford, Connecticut-based hedge fund run by Steven A. Cohen, region report
Simonian invested in the same industries his new fund will target, the person said. Josh Asian hedge funds, led by Myriad Asset Man-
Fischer, 42, a former portfolio manager at SAC from 2008 to 2010 who also traded in agement and Azentus Capital, outperformed
industrials, consumer, media and telecommunications stocks, will join Simonian at Trove global peers in 2012. page 3
Capital as director of research, the person said. Simonian has also hired a chief financial Fund launches
officer and may add one or two analysts. Palmer Square Capital started a credit fund
Prior to SAC, Simonian was founder and portfolio manager of Exton Capital Manage- with Fountain Capital Management. page 4
ment LLC, a hedge fund that invested in the same areas he’ll focus on at Trove Capital,
from 2005 to 2007, the person said. Before that, Simonian was a partner and portfolio research round-up
Female hedge funds outperform the industry
manager at Gracie Capital LLC from 1999 to 2004. From 1996 to 1998, he was a vice average, according to Rothstein Kass. page 5
president at Atticus Capital LLC. He started his career as a merger and acquisitions
investment banking analyst at Gleacher & Co. from 1994 to 1996. from the courts
Trove Capital’s prime brokers are Goldman Sachs Group Inc. and JPMorgan Chase & Leonard Blavatnik sues JPMorgan over RMBS
fund. Chip Skowron appeals Morgan Stanley
Co. and the fund will have a one-year soft lock-up period, the person said. In a soft lock decision. page 6
up period, investors can usually take out their money before the term finishes if they pay
a redemption fee. OVER THE HEDGE
The U.S. Securities and Exchange Commission told SAC in November it is consider- BlueMountain Capital’s Jes Staley attends Mu-
seum of American Finance gala. page 7
ing pursuing civil fraud claims related to alleged insider trading in two drugmakers. The
investigation marks the first time government officials linked Cohen, 56, to trades at the CALENDAR
center of an insider-trading case, as part of their multiyear probe into the hedge fund pages 10-11
industry. Cohen hasn’t been charged with any wrongdoing.
SPOTLIGHT
SAC has told portfolio managers it will raise their bonuses by 3 percentage points to Exis Capital Management founder Adam
help retain employees amid the probe by regulators, a person familiar with the matter Sender on how his fund produced double digit
said last week. The managers are typically paid an annual bonus of about 15 percent to gains in 2011 and 2012. page 12
25 percent of the profits they generate from their trades, another person said.
new mandates
Investor Allocation Search Specifics manager requirements
Fund of hedge funds SRF Germinate Fund, started Dec. 1, Equity-related strategies preferred. At least 10 percent returns
SRF Group Pte N/A
seeks up to six “early stage” managers based in Asia. sought. See story, page 5, for more information.
“Botttoms-up, fundamental stock picker” with about $500 million
Ridgefield, Connecticut-based fund of funds seeks a long/
Simple Alternatives LLC $10 million in assets preferred. Funds should use single-name shorts, not
short equity manager.
exchange-traded funds. See story, page 4, for more information.
Public pension seeks “one or more full-service real estate Five year track record, “minimum of $2.5 billion of institutional
Los Angeles County Employees Retirement Association N/A investment firm(s) with capabilities of investing in core, real estate assets under management.” See RFP for more
value-add and high return strategies.” information: http://bit.ly/UNabmB
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3. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 3
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1 2 3 4 5 6 7 8 9 10 11 12
4. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 4
Region Report
Myriad, Azentus Post Gains as Asian Hedge Funds Beat Peers
By Bei Hu which started trading in Hong Kong in million, according to investor newsletters.
Myriad Asset Management Ltd. and December 2011, have grown to $1.7 bil- The $420 million Asian Opportunities
Azentus Capital Management Ltd. post- lion, one of the people said. The fund has fund of New York-based York Capital
ed gains in 2012 as a market rebound in indicated that it will soon stop taking ad- Management returned 11 percent last
the last months of the year helped Asian ditional money after existing investors take year, driven by a 6.3 percent gain in the
hedge funds outperform global peers. assets to $2 billion, the person added. fourth quarter, according to an investor
The Myriad Opportunities Master Fund, Azentus’s fund, overseen by former newsletter.
a $1.4 billion multistrategy fund led by Goldman Sachs Group Inc. proprietary Tybourne Equity Fund, the Hong Kong
Carl Huttenlocher, former Asia head of trader Morgan Sze, focuses on Asia and manager founded by former regional head
Highbridge Capital Management LLC, employs strategies including event-driven, of Lone Pine Capital LLC Eashwar Krish-
returned about 7 percent last year, said capital structure and convertible-bond nan, returned about 5 percent in 2012,
two people with knowledge of the perfor- arbitrage, distressed, volatility trading, said a person with knowledge of the mat-
mance. Azentus’s $1.7 billion multistrategy private securities and equity long-short. ter. The fund started trading on July 2 with
fund reversed earlier losses to post a gain Not all funds saw gains in the year. The $500 million, two people with knowledge
of about 1 percent for the year, said two event-driven fund of Senrigan Capital of the matter said then.
others with knowledge of the returns. Group Ltd., founded in Hong Kong by Myriad Chief Operating Officer Scott
An index tracking Asian hedge funds former Citadel LLC executive Nick Taylor Gaynor, Azentus COO Roger Denby-
advanced 9.7 percent in 2012, according and backed by Blackstone Group LP, Jones, Senrigan’s investor relations
to Singapore-based data provider Eureka- pared its loss to about 11 percent after officer Katarina Bendle, Tybourne COO
hedge Pte. That beat the 6.2 percent re- four consecutive positive months, accord- Tanvir Ghani and Feng Hsiung, Asia
turn by Eurekahedge’s global benchmark. ing to an investor newsletter. Assets of chief executive officer at York Capital,
Assets of the Myriad Opportunities fund, Senrigan Master Fund increased to $506 declined to comment.
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5. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 5
Brief Exclusives
Simple Alternatives Searches for Long/Short Equity Strategy
Simple Alternatives LLC, the $70 million Ridgefield, Connecticut-based fund of From the Minutes
funds that launched in 2011, is seeking a long/short equity manager for an allocation
starting at $10 million. ■■ The State of Connecticut will
The firm prefers a bottoms-up fundamental stock picker with about $500 million in expand its “Connecticut Horizon
assets, Jim Dilworth, founder and chief executive officer, said in an e-mail. Fund initiative,” a subset of its Alter-
Simple Alternatives prefers funds with no more than 50 percent net exposure and native Investment Fund, “through
less than 150 percent gross exposure, Dilworth said. It will not consider managers a competitive search for a sepa-
that use exchange-traded funds. Managers should use single-name shorts to gener- rately managed account fund of
ate risk-adjusted returns, rather than as offsetting bets, he said. hedge fund manager,” according to
Simple Alternatives currently invests in five underlying funds, Dilworth said. The firm statements attributed to Treasurer
would consider being a “day-one investor” for “the right manager with a solid pedigree Denise L. Nappier in the minutes
and track record,” he said. of its Dec. 12 investment advisory
– Kelly Bit council meeting.
http://bit.ly/WHPE2z
Palmer Square Starts Credit Pool with Acquired Hedge Fund ■■ Fire & Police Pension Fund San
Antonio is scheduled to discuss
Palmer Square Capital Management, the $1.8 billion Leawood, Kansas-based and possibly take action on its
credit and alternative investment firm majority owned by Mariner Holdings LLC, search for a direct lending manager
started a credit fund with Fountain Capital Management LLC, the high-yield bond and at its investment committee meeting
bank loan portfolios firm Palmer Square acquired this year. tomorrow. Candidates include Gen2,
The $50 million Palmer Square Opportunistic Credit Fund launched in November, Highbridge and White Oak, accord-
primarily investing in secondary mezzanine and equity collateralized loan obligations, ing to meeting agenda.
according to a person familiar with the matter. The fund, run by Angie Long, chief http://bit.ly/WHDZRj
investment officer of Palmer Square, and Erin Carney, portfolio manager and partner
of Fountain Capital, has a one-year lock-up period.
Palmer Square bought a majority stake in Fountain, the firm said in a statement ■■ Milwaukee County Employees’
last week, its first credit fund acquisition. Fountain, based in Leawood and founded in Retirement System has placed
1990, had previously done advisory work within Palmer Square’s mutual funds. managers AQR, Barings EM and
“We’re not planning on being incredibly acquisitive -- this is a partnership we’ve had K2 on alert, according to minutes
for a long time,” Long said in a telephone interview. from its Jan. 3 meeting.
http://bit.ly/Ves54C
Palmer Square last year sought emerging managers for allocations, a search that
has since been completed, Long said. The last investment the fund of funds made
was in Geneva Arbitrage Fund LP in September. ■■ Sacramento County Employ-
– Kelly Bit ees’ Retirement System will
decide on a “proposed engage-
ment” with Grosvenor Capital at its
Gapstow Sees RMBS Gains, Eyes CLO Opportunities retirement board meeting tomorrow.
Gapstow Capital Partners, the $650 million New York-based fund of funds, sees SCERS will also receive an “educa-
opportunity in non-agency residential mortgage-backed securities, collateralized loan tional presentation” by Claren Road
obligation equity, regulatory capital transactions, trust preferred collateralized debt Capital Management, according to
obligations and community bank equity, Chris Acito, chief agenda items.
http://bit.ly/105zffB
executive officer and chief investment officer, said during a
presentation last week.
While home loan debt not backed by the U.S. government ■■ Fresno County Employees’
rallied in 2012 and early 2013, prices have only matched Retirement Association had $48
2010 peaks, Acito said. The firm favors funds investing in million invested in CSP - Common
non-agency RMBS that target option-ARM, seasoned sub- Sense Partners LP, a holding that
prime, home equity line of credit and second lien segments, was down 4 percent in 2012 through
as well as put-back strategies. Nov. 30, according to performance
Gapstow expects CLO issuance to continue in 2013 and a summaries included for discussion
pickup in regulatory capital transactions as banks are able at its board meeting tomorrow.
to get beneficial capital treatment for assets if they share http://bit.ly/W2Vugu (meeting agenda)
the risk with external parties, such as hedge funds, Acito http://bit.ly/W2Vugu (performance)
Chris Acito continued on next page
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6. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 6
brief exclusives
continued from previous page
said. Community banks are attractive as the banking industry continues its recovery,
he said. One way to gain exposure to community banks is through trust preferred
CDOs, he said. Research Round-Up
Gapstow gains exposure to the areas in which the firm sees opportunity through
hedge fund managers and in some cases direct investments, Acito said.
Female Managers Beat
– Kelly Bit Average Returns: Study
By Kelly Bit
Female hedge fund managers
launches posted average gains of 9 percent
last year through the third quarter,
Ex-UBS Banker Starts Asia Fund of Hedge Funds beating the overall industry, accord-
ing to a report by Rothstein Kass.
A former UBS Securities Japan Ltd. prime broker and a manager at Zest Asset Hedge funds overall rose 2.7
Management Co. have started a fund of hedge funds that will invest mainly in Asia- percent on average over the same
based managers seeking to grow. period, according to Hedge Fund
The SRF Germinate Fund started on Dec. 1 with $20 million and has grown to $35 Research Inc. The Standard &
million, said Osamu Yamashita, chief executive officer of Singapore-based SRF Poor’s 500 Index rose 16 percent
Group Pte who set up the fund with Zest manager Toshikazu Yamazaki. It is in- during that period. Over five years,
vested in nine funds in Asia and returned 1.5 percent the first month, Yamashita said. hedge funds run by women gained
The SRF fund plans to capitalize on finding emerging hedge funds in the region. 20 percent, compared with a 14 per-
Some 821 funds started last year, compared with 1,139 in 2011, according to Singa- cent loss for the industry, according
pore-based data provider Eurekahedge Pte. to Rothstein Kass and HFR, and a
“Money has been flowing to bigger managers that are requiring longer track record 5.4 percent rise in the S&P 500.
and larger assets,” Yamashita, 45, said in an interview in Singapore. “For us, none of “Studies have consistently shown
that matters. So long as we can find quality managers, we are willing to become an that women tend to have different
early-stage investor and that’s where we think we can find the low-hanging fruit.” risk-reward profiles than men, which
SRF is betting that Japan-focused managers will outperform at least until March could lead to disconnects between
after a leadership change in December, said Yamazaki, 33, senior fund manager of how the constituents want their
SRF, said in the interview. Eight out of nine managers that the fund invests in are money managed and how it actually
Japanese hedge funds, with strategies dominated by equity long-short, he said. is managed,” Rothstein Kass said in
The fund will get an additional $15 million from investors on Feb. 1, bringing total the report.
assets to $50 million, Yamashita said, adding that it targets $120 million in three “The literature out there suggests
years. It will invest in about 10 to 15 managers and aims to get at least 10 percent that it’s not risk aversion, it’s less
return annually, Yamazaki said. ego,” said Kathleen Kelley, chief
– Tomoko Yamazaki and Komaki Ito investment officer of New York-
based Queen Anne’s Gate LLC.
“Women tend not to get so married
CarVal Investors Raises $1.1 Billion for Distressed Debt Fund to an idea when they’re traders --
CarVal Investors LLC, the asset-manager unit of Cargill Inc., raised $1.1 billion for they will cut loss.” The bar is high for
a distressed debt credit fund as it seeks to invest in assets off-loaded by European female entrants in a male-dominat-
banks shrinking their balance sheets. ed industry, which may be another
The CVI Credit Value Fund II, which CarVal expects to close later this year, will explanation for why those who start
invest in a range of debt, including corporate bonds, mortgage-backed securities and their own funds or lead investment
loan portfolios, the Minneapolis-based company said in an e-mailed statement. teams at firms post higher average
“The fund will invest globally in distressed credit opportunities coming from the dele- performance, Kelley said.
veraging of financial institutions in Europe and beyond,’’ according to the statement. Rothstein Kass created an index
European banks will sell off about 60 billion euros ($80 billion) of loans this year, of 67 hedge funds run by women
compared with 45 billion euros sold in 2012 and 36 billion euros in 2011, according to that reported monthly performance
estimates by PricewaterhouseCoopers LLP on Jan. 4. to either HedgeFund.net or HFR, it
CVI Credit Value Fund I, a CarVal-managed credit fund that already invests in said in its annual Women in Alterna-
distressed debt, recorded a 28.4 percent return in the first 10 months of 2012, CarVal tive Investments report. The funds
said Nov. 28. were selected based on individual
CarVal, founded by Cargill in 1987 to focus on proprietary and high-yield debt trad- knowledge of women-owned or
ing, agreed to buy 380 million euros of non-performing real estate loans from Lloyds -managed status or the presence of
Banking Group Plc in November, paying about 25 percent of the face value, people female principals in the HFR diver-
with knowledge of the transaction said at the time. sity category listing, the firm said.
– Patricia Kuo
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7. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 7
from the courts
Blavatnik Says JPMorgan ‘Stuffed’ Fund With Risky RMBS
JPMorgan Chase & Co. filled a fund started by billionaire Leonard Blavatnik with risky Goldman Demands Audio
mortgage securities instead of the conservative investments it was told to make, lawyers Records in Abacus Lawsuit
for Blavatnik told a New York state judge. By Phil Milford, David McLaughlin
The CMMF fund was started by Blavatnik’s Access Industries in 2006 as a “short-term, Goldman Sachs Group Inc. ac-
highly liquid and very conservative cash management account,” according to court filings. cused ACA Financial Guaranty
JPMorgan “stuffed” the account with risky mortgage securities, turning it into something Corp. of withholding thousands of
it was never meant to be, said Richard I. Werder Jr., an attorney with Quinn Emanuel audio recordings the investment
Urquhart & Sullivan LLP, which is representing the fund. bank wants in its fight against a
JPMorgan should be held responsible for the loss, Blavatnik, who is ranked 47th in lawsuit over a collateralized debt
Bloomberg’s billionaires index with a net worth of $15.3 billion, said in his lawsuit, be- obligation called Abacus.
cause it loaded his Access Industries fund with subprime and Alt-A mortgages while CEO Goldman Sachs asked a New
Jamie Dimon was unloading such securities from the bank’s books. York state judge in court papers
“The market believed these securities were safe,” Lewis R. Clayton of Paul Weiss Rif- Jan. 11 to order bond insurer ACA
kind Wharton & Garrison LLP, which is representing JPMorgan, said during opening argu- to produce the recordings, pointing
ments. The securities had no downgrades until March 2008, Clayton said. to one phone call that it says “utterly
The trial is set to last as long as two weeks. Blavatnik isn’t scheduled to testify, ac- eviscerates” ACA’s claims.
cording to a list of witnesses. Goldman’s bid for the recordings
– Chris Dolmetsch comes after ACA sought court per-
mission to file a revised complaint
that adds Paulson & Co. as a defen-
Morgan Stanley Seeks $10.2 Million From Skowron dant. ACA claims it was deceived
Insider traders like Joseph F. “Chip” Skowron III must be held responsible for the harm into believing that Paulson was a
they cause their employers, Morgan Stanley lawyers told an appeals court yesterday in a long investor in the deal when the
bid to recover $10.2 million. fund was in fact betting against it.
Skowron, 43, who is serving five years in prison, was a hedge fund manager at Morgan Goldman agreed to a $550 million
Stanley’s FrontPoint Partners LLC until he was charged in April 2011 with using inside settlement in 2010 with the SEC.
information to avoid $30 million in losses. In its filing, Goldman Sachs quotes
The U.S. Court of Appeals in Manhattan heard arguments yes- from a May 2007 call between an
terday in Skowron’s appeal of a judge’s order that he pay $10.2 ACA portfolio manager and a bond
million in restitution to the New York-based bank. Morgan Stanley trader at Morgan Stanley in which
and prosecutors argued in support of the judge’s order, saying ACA is told Paulson was pursuing
he hid his activities from his employer and the government. a “doomsday” strategy and betting
Joshua Epstein, Skowron’s lawyer, told the appeals panel against the mortgage market.
that Morgan Stanley is entitled to file a lawsuit to seek the Marc Kasowitz, an attorney for
money it paid his client. The firm isn’t entitled to restitution New York-based ACA, said in an
in the criminal case, he said. Jerika Richardson, a spokes- interview that the call wasn’t about
woman for U.S. Attorney Preet Bharara, declined to comment Abacus and was instead “anecdotal
on the case. Jim Wiggins, a Morgan Stanley spokesman, market chatter” about Paulson.
Chip Skowron declined to comment on the appeal. ACA, which is seeking to recover
– David Glovin, David Voreacos and Bob Van Voris
$120 million in damages, cites in
its complaint a recording in which a
Goldman Sachs managing director
told ACA that Paulson was a “100
Albert Hu Gets 12 Years in Prison for Fraud percent equity” investor in the deal.
Albert K. Hu, who was convicted of running a scheme that the government said ACA has produced 6,900 recordings
cheated investors of at least $6.5 million, was sentenced to 12 years in prison. to Goldman Sachs and will turn over
Hu, 50, formerly of Fremont, California, and Hong Kong, was found guilty by a jury in more as they become available,
June of seven counts of wire fraud. Hu also faces a civil lawsuit by the SEC. Kasowitz said.
Jerry Fong, a lawyer for Hu, had no immediate comment on the sentence. “Goldman Sachs’s specific misrep-
Hu founded and operated hedge funds under the names Asenqua Beta Fund and resentation to ACA about Paulson’s
Fireside LS Fund out of San Francisco, Singapore, and Sunnyvale, California, pros- ‘100 percent equity’ interest in Aba-
ecutors said. He lured investors with promises of returns as high as 30 percent a year, cus trumps any anecdotal market
according to prosecutors. Instead of investing the money, Hu “converted that money for ‘color’ by a third party,” Kasowitz
his own personal use and for other non-investment purposes,” according to an indictment. said in a statement.
– Joel Rosenblatt
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8. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 8
Over The Hedge
■■ Jes Staley attended the Museum of Co. when Banc One was acquired, bringing
American Finance’s gala last week, just Jamie Dimon into the firm as his successor.
hours after he announced his departure – Amanda Gordon
to BlueMountain Capital Management
■■ While wine sales by the biggest auction
LLC, where he’ll be managing partner,
houses fell 19 percent last year, the market
from JPMorgan Chase & Co, where he
“feels a bit more positive,” Chris Smith,
worked for more than 34 years.
investment manager at The Wine Invest-
The museum’s exhibitions include a 1792
ment Fund in London, said. “Demand has
treasury bond issued to George Washing-
been fairly consistent over the past six
ton as well as information on hedge funds
months.” The fund, which has $73 million
and electronic trading.
under management, is predicting a 14 per-
The 25-year-old institution has a $3.6
Duncan Niederauer, CEO of NYSE Euronext, cent increase in the Bordeaux-dominated
million budget and last year had 43,000 Jes Staley, managing partner, BlueMountain Liv-ex Fine 100 wine index this year.
visitors. The newest temporary exhibition Capital Management LLC, and Debora Staley. – Guy Collins
lets visitors weigh in on five investments Photographer: Amanda Gordon/Bloomberg
made by Barings Bank, including the ■■ Anne Carley, managing partner at
Louisiana Purchase. Award for Distinguished Public Service and Greenwich Advisors LLC, attended
The museum is located at 48 Wall St., Financial Leadership, created by former Labyrinth Theater Company’s “Celebrity
the site of Alexander Hamilton’s Bank of Goldman Sachs co-chairman John White- Charades” benefit at Capital in New York
New York. head, who was present and lamented the last night. The event featured Chris Rock
The event raised a record $750,000 and “lack of leadership today.” and Paul Rudd in a game of charades. The
had record attendance of 250 guests. The recipient of the award was Bill Har- company spends about $1 million a year on
After a meal of asparagus salad and rison, who expanded Chemical Bank and productions, readings and workshops.
beef, the museum presented its Whitehead was chief executive of JPMorgan Chase & – Amanda Gordon
GLOBAL
MARKETS
SUMMIT
THE Jan 17, 2013
FOREIGN AFFAIRS
NEW YORK
BOLDEST SPEAKERS
DENNIS P. LOCKHART
Federal Reserve Bank of Atlanta
CALLS
DAVID MCCORMICK
Bridgewater Associates LP
MARK L. ATTANASIO
Crescent Capital Group
FOR 2013 TERRENCE A. DUFFY
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DEEPAK NARULA
Metacapital Management LLC
+MORE
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Sponsor:
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9. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 9
Performance Snapshot: CTAs/Managed Futures
A look at some of the best-performing CTAS/managed futures funds that report to Bloomberg data. Only funds with $50 million or more under manage-
ment that have reported performance through at least Nov. 30 are included. For questions contact Anibal Arrascue at aarrascue@bloomberg.net
By 2012 Returns
Firm Fund manager inception date sharpe ratio Return %
Richard Conyers
Harmonic Capital Partners LLP Harmonic Alpha Plus Global Currency Fund 4/30/2003 1.65 25.47
David Pendlebury
Alexei Chekhlov
Systematic Alpha Management LLC Systematic Alpha Futures Fund Ltd 12/31/2007 1.09 22.14
Peter Kambolin
Man Investments Ltd AHL Evolution Ltd Timothy Wong 11/1/2006 3.76 21.2
Amplitude Capital AG Amplitude Klassik Fund-A USD Karsten Schroeder 9/1/2009 1.04 17.36
Global Sigma Group LLC Global Sigma Plus Program Dr. Hanming Rao 11/1/2009 6.41 15.13
Paolo Compagno
Low Volatility Asset Management Ltd The 1.2 Fund Ltd 6/20/2008 7.59 14.09
Andrea De Lorenzo Smit
John R Hummel
AIS Futures Management LLC AIS Futures Fund LP (3X-6X) 4/1/1993 0.59 13.74
Bradley C Stern
Jaffray Woodriff
Quantitative Investment Management LLC Quantitative Global Fund 3x LLC 6/13/2005 0.51 12.36
Michael Geismar
Fred G Schutzman
Briarwood Capital Management Inc Briarwood Diversified Trading Program 07/12/2001 1.06 10.7
Paul J Demarco Jr
Conor MacManus
LCJ Investments SA LCJ FX Fund-A EUR 9/7/2007 1.35 7.61
Jonathan Tullett
By Five-Year Annualized Returns
Firm Fund manager inception date sharpe ratio Return %
Yves Balcer
Fort LP FORT Global Diversified Program 10/31/1993 1.15 17.47
Sanjiv Kumar
Hawksbill Capital Management Hawksbill Global Diversified Program Thomas Shanks 11/1/1988 0.68 15.37
Jaffray Woodriff
Quantitative Investment Management LLC Quantitative Global Fund 3x LLC 6/13/2005 0.66 15.26
Michael Geismar
Man Investments Ltd AHL Evolution Ltd Timothy Wong 11/1/2006 1.2 15.07
Yves Balcer
Fort LP FORT Global Contrarian Program 10/01/2002 1.1 13.01
Sanjiv Kumar
Saxon Investment Co Saxon Aggressive Diversified Program Howard Seidler 11/1/1993 1.14 12.91
Bayesian Efficient Asset Management LLC BEAM LLC-Multi-Strategy Program Dr Jose Mario Quintana 6/19/2007 1.18 12.48
Mulvaney Capital Management Ltd The Mulvaney Global Markets Master Fund Ltd Paul G Mulvaney 4/30/1999 0.5 12.38
Dunn Capital Management LLC World Monetary & Agriculture Program William Dunn 11/1/1984 0.54 11.25
Paskewitz Asset Management LLC Paskewitz Contrarian S&P 500 Stock Index Bradford Paskewitz 12/1/2003 0.6 8.97
For Sharpe Ratio Calculation MEthodology Type FLDS Sharpe <Go> on Bloomberg. “Risk Free Rates” IDOC 2047613 <go>
1 2 3 4 5 6 7 8 9 10 11 12
10. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 10
league table: prime brokers
The table below lists prime brokers of U.S. hedge funds by their clients’ fund assets, as reported by the funds to Bloomberg data. “Fund clients” refers to
individual funds with each prime broker in Bloomberg’s database. For questions contact Anibal Arrascue at aarrascue@bloomberg.net.
Fund clients corresponding assets (US$ millions)
Goldman Sachs Group Inc. 152 41,329
UBS AG 85 28,773
JP Morgan Chase & Co. 104 28,491
Morgan Stanley 92 23,610
Citigroup Inc. 39 7,696
Credit Suisse AG 25 7,352
Banc of America Securities LLC 49 5,612
Newedge Group SA 35 3,634
Deutsche Bank AG 24 3,602
Jefferies & Co 32 1,976
Total Funds Surveyed 728
Hedge Funds Added to Bloomberg This Week
The 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).
Manager Inception
Ticker bloomberg id Fund Manager Management Company strategy administrator
Location Date
GRAMBOB KY BBG003S3WHP6 DEREK KWONG Basic Asset Management Ltd Long Biased Hong Kong 10/25/2010 ABN AMRO Fund Services Cayman Ltd
Mortgage-Backed
BKOPPSA KY BBG003S0FBV7 OLIVIER GOZLAN BK Advisory Ltd U.K. 11/30/2012 Apex Fund Services Ltd
Arbitrage
Event Driven Diversi- Wells Fargo Global Fund Services
BREQRVF US BBG003T53V08 MARTIN SMITH Black River Asset Management LLC U.S. 3/1/2012
fied Ireland Ltd
Fixed Income
CHMS2EU KY BBG003SDJM78 LOIC FERY Chenavari Credit Partners LLP U.K. 2/29/2012 Quintillion Ltd
Diversified
Emerging Market
CCFFSA1 KY BBG003SGHG49 LUIS A PIMENTA GARCIA Corttex Capital Gestao Recursos Ltda Brazil 1/2/2013 UBS Fund Services Cayman Ltd
Equity
Managed Futures
AITFFKY KY BBG003S44FG9 TEAM MANAGED EuroFin Investments Pte Ltd Singapore 11/30/2012 Standard Chartered Bank
Systematic
Emerging Market
GRAMDEE US BBG003SDLV11 ROBERT KOENIGSBERGER Gramercy Fund Management LLC U.S. 3/1/2010 International Fund Services NA LLC
Equity
NEBCRFA KY BBG003S42Y43 TEAM MANAGED Hesperian Capital Management Ltd Long Short Canada 7/1/2011 Admiral Administration Ltd
Lyxor Asset Management Ireland Managed Futures Societe Generale Securities Services
LYXCFUU ID BBG003SB2J31 PHILIPPE BALTHAZARD Ireland 3/28/2011
Ltd/Ireland Systematic Paris
OCEBZEQ KY BBG003S9XNQ8 LEONARDO MESSER Oceana Investimentos Ltda Long Biased Brazil 12/31/2012 UBS Fund Services Cayman Ltd
MONSREMS CN BBG003RYRR46 FRANCOIS MAGNY RDA Capital Multi Strategy Canada 1/1/2011 CIBC Mellon Global Securities Services
SREDGAA GU BBG003T1SZF5 TEAM MANAGED Sciens Group Fund Services Ltd Multi Strategy Guernsey 2/1/2013 HSBC Securities Services Guernsey Ltd
WAINSCP US BBG003S451G9 THOMAS S GILBERT Wainscott Capital Management LLC Long Short U.S. 9/1/2011 Wainscott Capital Management LLC
1 2 3 4 5 6 7 8 9 10 11 12
11. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 11
Calendar To submit an event email hedgebrief@bloomberg.net
daTe event featuring location contact / registration
Jan. 16, IAFE's The "Retailization" of Alternative Kirk Strawn, Altegris; Jason Schwarz, Wilshire Funds
PwC, New York http://bit.ly/YTUoUD
6pm Investments Management; Andrew Hoffman, PIMCO.
Jan. 16, Hedge Fund Symposium South Florida: Luis Laboy, Everest Capital; Michael Levas, Olympian Turnberry Isle,
http://bit.ly/TJkqen
5pm Hedge Funds in the New Year Group; David Friedland, Magnum. Miami
David McCormick, Bridgewater; Wilbur Ross; Council on Foreign Rela-
Jan. 17 Bloomberg Global Markets Summit http://bit.ly/UnAimO
Dinakar Singh, TPG-Axon. tions, New York
For more information, call +1 845-260-2785 or
Jan. 17 National Audubon Society gala Honoring Louis Moore Bacon. Plaza Hotel, New York
email jhannan@audubon.org.
Jan. 17, 100 Women in Hedge Funds' Washington, D.C. (location
Keynote speaker Alfred Pollard, general counsel, FHFA. http://bit.ly/W5IStb
6pm Winter Cocktails and Networking Reception provided to attendees)
First-ever "hedge fund immersion" program where criti-
Jan. 21-24 GAIM USA 2013 Boca Raton Resort & Club www.gaimusa.com
cal issues are discussed in classroom setting.
Keynotes by Scott Minerd, Guggenheim; Marriott London
Jan. 21-22 LSE's Hedge Funds & Private Equity www.lseaic.com
Randall Dillard, Liongate. Grosvenor Square
Fourth annual conference on quantitative strategies,
Jan. 23 CBOE/Bloomberg Equity Volatility Symposium Hilton Toronto E-mail naseminar@bloomberg.net
market trends and the outlook for volatility.
Presenters Ray Carroll, Breton Hill; Geoffrey Fila, Gal- New York (exact location
Jan. 23 2013 Newedge Macro Outlook www.newedge.com/primebrokerage
tere; Mark Spindel, Potomac River. provided to attendees)
"Celebrate fund excellence in the European hedge fund Grosvenor House Hotel,
Jan. 24 EuroHedge Awards 2012 http://bit.ly/TGvhBw
industry." London
Jan. 24, 100 Women in Hedge Funds' Greenwich, Conn. (location
Joan Solotar, Blackstone Group. http://bit.ly/ZIkteh
5:30pm View from the Top provided to attendees)
Crosby Street Hotel,
Jan. 25 HFMWeek U.S. Breakfast Briefing "Investor Outlook for 2013" http://bit.ly/VPOgvS
New York
"New in 2013 'Meet the Manager' booths and business The Ritz -Carlton Key
Jan. 28-30 Managed Funds Association Network 2013 http://bit.ly/Sl3GJE
development salons." Biscayne, Florida
"Next generation education for single and multi-family Intercontinental
Jan. 29-30 National Family Office Forum http://bit.ly/SM5AlH
offices." Los Angeles
Jan. 30, 100 Women in Hedge Funds' Jane Mendillo, Harvard; Larry Schloss, NYC Retirement Deutsche Bank,
http://bit.ly/RGstJ8
6pm 2013 and Beyond - The CIO Perspective Systems; Ash Williams, Florida Board of Administration. New York
Jan. 30- One-on-one meetings between qualified investors, al- Fontainebleu
AlphaMetrix Miami 2013 Summit http://bit.ly/PQA8Ev
Feb. 1 locators and hedge funds. Miami Beach
Institutional Investor's 19th Annual Alpha Daniel Levinson, Atalaya; Peter Lupoff, Grayco; Westin Canal Place,
Feb. 5-7 http://bit.ly/XVlcJ7
Hedge East Conference Jason Huemer, Visium. New Orleans
100 Women in Hedge Funds' Setting the Anne Casscells, Aetos; Lisa O'Connor, Mellon; Susan Blackrock,
Feb. 6 http://bit.ly/VHTI4k
Course in 2013: Women Investment Managers Preston, CalCEF; Alyssa Rieder, Dignity Health. San Francisco
7th Annual Alternative Investment Consul- "How to develop new business opportunities" from Hyatt Regency Greenwich,
Feb. 7, 8am http://bit.ly/UB9i0u
tants Summit consultants and family offices. Connecticut
Hedge Funds Care Young Professionals Com- Parlor Private Club, http://bit.ly/Sio1Sk of contact Sarah Blaker at
Feb. 7, 7pm Cocktail party fundraiser. Open bar and hors d'oeuvres.
mittee's Hedge Funds' Night Out New York sblaker@HedgeFundsCare.org
"Identify the best-performing U.S. hedge fund managers Gotham Hall,
Feb. 12 Absolute Return Awards for 2012 http://bit.ly/TUOIqK
based on risk-adjusted returns." New York
Feb. 13, The Museum of Mathemat-
IAFE's Financial Engineer of the Year Gala Reception followed by award dinner and ceremony. www.iafe.org
6:30pm ics, New York
"Navigate regulation to gain investment from Europe, New York (exact location to
Feb. 27 HFMWeek's UCITS for U.S. Managers http://bit.ly/VhhlTZ
Asia and LatAm." be determined)
continued on next page
1 2 3 4 5 6 7 8 9 10 11 12
12. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 12
Calendar
continued from previous page
daTe event featuring location contact / registration
Connecticut Hedge Fund Association's Indian Harbor Yacht Club,
Feb. 28 Agenda to be determined. http://bit.ly/Zn91Qt
Liquid Alternatives Greenwich, Connecticut
Opal Financial Grop's "Dialogue driven panel discussions led by consultants Crowne Plaza Times Square,
March 4 http://bit.ly/SiAx4i
Family Office Winter Forum and family offices." New York
"Where Middle East investors access global hedge Jumeirah Beah Hotel,
March 4-5 Hedge Funds World Middle East http://bit.ly/RKHqEl
funds." Dubai
March 7, Hedge Funds Care's 15th Annual New York Cipriani 42nd Street, http://bit.ly/SLQY5C or contact Sarah Blaker at
Fundraising dinner.
6pm Open Your Heart to the Children Benefit New York Sblaker@HedgeFundsCare.org
"Will give focus to key issues of importance to serious British Museum,
March 13 Bloomberg #FXDebates http://bit.ly/Us226R
participants in the foreign exchange markets." London
II's 5th Annual Middle East Institutional Daniel James, Aviva Investors; Emirates Palace,
March 13 www.iiforums/meiis
Investor Summit Greg Saichin, Pioneer Investments. Abu Dhabi
March IMN's 8th Annual Foundations & Endow- Bill Lockyer, State Treasurer, and Dave Jones, Insurance Hyatt Regency Huntington
http://bit.ly/UHo8b2
14-15 ments Summit Commissioner, State of California. Beach, California
March David Marcus, Juilliard School; Christine Kelleher, Copacabana Palace Hotel,
Latin Markets' Hedge Fund Brazil Forum http://bit.ly/123kpoR
18-19 Georgetown; Dan Slack, Colorado Fire & Police. Rio de Janeiro
Goldman Sachs's Fifth Annual
April 23 Capital introduction event . New York Private event by invitation only
U.S. Hedge Fund Symposium
Goldman Sachs's Fifth Annual U.S. Yankee Stadium, Bronx,
April 23 Capital introduction event . By invitation only
Hedge Fund Symposium New York
TRADEBOOK BUYSIDE MARKET INSIGHT EVENT:
USING RISK TO RAISE
ASSETS IN 2013
>>> How are alternative investments being used to fulfill the needs of institutional investors?
>>> What are the preferred investment structures and investment vehicles for institutions?
>>> How can hedge fund managers position their offerings to win allocations?
MODERATOR: John Netto: President, M3 Capital and author of The Global Macro Edge
PANELISTS: Steve Hotovec: COO, Sitra LLC
Curt Overway: President, Natixis Global Asset Management
Saro Picciotto: Chairman and CEO, of Wainwright Investment Counsel
Brian Weiner: Senior Managing Director, Family Endowment Partners
DATE: Tuesday, January 29th 2013 5:00-7:30 PM
LOCATION: 731 Lexington Ave., New York, NY
RSVP: tbevents@bloomberg.net
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13. 01.15.13 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 13
Spotlight
Exis Capital’s Adam Sender on How to Trade Global Markets Amid Government Interventions
selling, not a potential shift in monetary saying they had the votes and at the time
Adam Sender, founder and chief investment policy coming. The previous year, a similar consensus was Boehner could deliver the
officer of Exis Capital Management, spoke trade took place and gold and silver had House. Because of that, most of the street
to Nathaniel Baker about his fund’s discretion-
their best months of the year bouncing was looking at it as a non-event and for
ary global macro strategy, how it was able to
produce double digit returns the last two years
back in January. When the minutes hit, we us to go on our merry way. Our style is to
and why U.S. equities may be on the verge of a knew the market was playing for a repeat look for outlier events and inflection points
secular bull market. of the same trade so we got short silver so we had traders watching every news
and it dropped about 4 percent or so. source. When the news hit that the vote
was going to be postponed, we were able
Q: Your fund was up 20 percent in 2011 Q: What are some other areas that are to get short a large S&P futures position
and 15 percent last year. Few hedge ripe for opportunities? ahead of the market dropping 40+ handles
funds hit double digits both years. What A: Our thesis, and why we tend to be long during a normally quiet period.
differentiates your strategy? risk currently, is that market internals and
A: We specialize in short-term directional seasonals are very strong right now. In Q: If there is a big equities rally, how
trading, which I don’t think many hedge the U.S. equity market, a lot of small-cap much of a concern is it that the Fed
fund managers are still doing. Our forte is names and beat-up stocks are rallying. might decide to remove the punchbowl a
capturing inflection points in global mar- There’s clearly a lot of new money coming little early, or at least make noise to that
kets. Basically whatever’s volatile, wherever in. We could potentially be on the cusp of effect? Or is that premature?
we think we’re going to get the biggest a massive asset allocation where flows A: For my purposes it’s premature but it’s
bang for our buck as quickly as possible, move out of bonds and into stocks. China certainly something that we think about.
is where we’re looking to trade. We start data has been getting better, Europe One concern coming into this month’s
with a top-down world view: what we think is stable and with the fiscal cliff hurdle payroll release was the possibility that the
about the economy, where the equity mar- jumped, it just seems as though there is a number might be stronger than expected
kets are going, what fiscal and monetary green light for guys to put money to work. and it would cause the bonds to collapse,
policies are in place, and from there we try Our concerns are what happens when we leading to a worry about a backup in
to narrow down our investment universe get closer to the end of February and the rates. That being said, interest rates are
to find the best alpha-generating product government starts to be a factor again in so low, I think as long as interest rates
to reflect that view. So if we’re bearish on terms of day-to-day trading. rise slowly, the market will be able to climb
China we might short copper or a machin- that wall of worry. At some point, maybe
ery company levered to Asia or even the Q: That tripped up a lot of folks in 2012. when the 30-year gets above 5 percent
Aussie dollar. We’re really migrating all over How did you, a macro fund, avoid it? or so, it will be a concern. I like to stay in
the world and looking for what the best A: We spent a lot of time and energy on harmony with the trend. This asset alloca-
instrument is to trade at that moment. different scenarios and potential market re- tion that I’m talking about, out of bonds
actions. One of the best trades that we had and into equities, could potentially be the
Q: And then you won’t stay in these in December was the day that Speaker beginning of a brand new secular bull
positions very long? Boehner was going to hold the vote for market. I wouldn’t be surprised at all to
A: No, our average holding period is mea- Plan B. Earlier in the day, Representa- see the U.S. equity market have a much
sured in days and weeks, not months and tive Cantor had called a press conference better year than most people predict.
years. But we are not day-trading looking to
make pennies or doing what these high-
frequency traders are doing.
Age: 43
Q: Got it. Can you provide an example of
your strategy in action? Hometowne: Woodmere, New York
A: When the Fed minutes came out Family: Married, two kids
this month it was clear something had
Education: University of Michigan (B.A., history)
changed regarding the very consensus
QE-infinity trade. The Fed expressed Professional Background: Founder, Exis Capital Management, in 1998.
potential concerns arising in the future Previously portfolio manager at SAC Capital Advisors.
regarding their balance sheet and silver
and gold at that moment became very vul- Charitable Work: Business committee, Metropolitan Museum of Art.
nerable. Both metals had been performing Trustee at Parish Museum and JCC Miami.
poorly into the end of the year and the
common view was it was due to year-end Favorite New York City Restaurant: Emilio’s Ballato
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