Tuesday, July 05, 2005
See if Jon Berg Needs New Head Marketer
Vega Hedge Fund suffers large investor redemptions
posted on Thursday 30 Jun 2005 07:08 BST - Albourne Village
From Reuters
Reuters reports, Vega Asset Management LLC, one of the world’s biggest hedge fund managers, suffered large investor redemptions last month in the face of what it acknowledged was “disappointing” performance, while some say that the Madrid and New York-based fund group, might have been hit by unusual investor redemptions because it over-promised return performance.
The group, which has $7.4 billion in assets in seven funds, was hit by $241 million in investor redemptions in May at its flagship Global Fund, while two other funds, Relative Value and Select Opportunities, also faced May investor redemptions of $87 million and $65 million respectively.
According to a May, 2005 newsletter to investors, “The fund’s highly diversified portfolio experienced losses as a vast majority of trades performed poorly.” The fund, which trades fixed income, currencies and emerging market securities, has generated returns of 92.4% since inception in 1996.
posted on Thursday 30 Jun 2005 07:08 BST - Albourne Village
From Reuters
Reuters reports, Vega Asset Management LLC, one of the world’s biggest hedge fund managers, suffered large investor redemptions last month in the face of what it acknowledged was “disappointing” performance, while some say that the Madrid and New York-based fund group, might have been hit by unusual investor redemptions because it over-promised return performance.
The group, which has $7.4 billion in assets in seven funds, was hit by $241 million in investor redemptions in May at its flagship Global Fund, while two other funds, Relative Value and Select Opportunities, also faced May investor redemptions of $87 million and $65 million respectively.
According to a May, 2005 newsletter to investors, “The fund’s highly diversified portfolio experienced losses as a vast majority of trades performed poorly.” The fund, which trades fixed income, currencies and emerging market securities, has generated returns of 92.4% since inception in 1996.
Find Intro (HARISH?) to Mike Hutchins for New Dillon Read HF
UBS to integrate new alternative investment management business
HedgeWeek 7/1/05
UBS is launching a new alternative investment management business, Dillon Read Capital Management, under the leadership of John P. Costas as CEO.
Costas is currently Chairman and CEO of UBS’s Investment Bank. Dillon Read Capital Management will form part of UBS’s Global Asset Management business led by Chairman and CEO John Fraser.
Costas will leave UBS’s Group Executive Board at the end of 2005. He will remain as non-executive Chairman of its Investment Bank.
This new initiative will see UBS’s Principal Finance and Commercial Real Estate trading businesses move from the Fixed Income, Rates and Currencies area of its Investment Bank to form the core of the new unit within the Global Asset Management business.
Mike Hutchins, currently Global Head of Fixed Income, Rates and Currencies, Investment Bank will be appointed President, Dillon Read Capital Management. Approximately 120 staff will transfer, mainly based in New York. Subsequently, the trading strategies managed by the team will be opened up to co-investment from sophisticated, principally institutional clients, and will be supplemented by further new offerings.
UBS intends to build a new stream of investment management fees from what has until now been a purely in-house trading activity. UBS will retain its current direct investment in the relevant trading portfolios, with any incremental future investments subject to UBS’s usual risk management processes. This new business is similar in concept to other successful alternative asset management units within UBS, based on trading strategies developed within UBS’s Investment Bank.
Huw Jenkins, currently head of the Equities business, will succeed John Costas as CEO of UBS’s Investment Bank, based in London. He will become a member of the Group Executive Board from 1 July 2005. Prior to running UBS’s world-leading equities business,Jenkins built its US equities franchise into a significant market force.
Dillon Read Capital Management will be launched on or around 1 January 2006. All management changes concerning UBS's Investment Bank are effective 1 July 2005.
Before becoming CEO of UBS Investment Bank in December 2001, Chairman in September 2002 and Deputy Group CEO in May 2004, Costas was the President and Chief Operating Officer of UBS Warburg. He served from 1996 to 1997 as Head of US Fixed Income and Derivatives at UBS, becoming Global Head of Fixed Income at Warburg Dillon Read in 1998. In 1999, he also took over the position of Chief Operating Officer for UBS Warburg, and became a member of the Group Managing Board. Before joining UBS in 1996, Costas worked at Credit Suisse First Boston as Co-Head of Global Fixed Income. John Costas was born in 1957. He is a US citizen.
Costas said: “I am terrifically excited to have this entrepreneurial opportunity to build a new business within UBS. Investors have huge appetite for alternative investment products backed up by the quality assurance of a global financial leader – we can fulfill that demand. I am proud of what we have achieved in building UBS’s Investment Bank into a world leader, and am confident that Huw (Jenkins) can build on our current momentum.”
HedgeWeek 7/1/05
UBS is launching a new alternative investment management business, Dillon Read Capital Management, under the leadership of John P. Costas as CEO.
Costas is currently Chairman and CEO of UBS’s Investment Bank. Dillon Read Capital Management will form part of UBS’s Global Asset Management business led by Chairman and CEO John Fraser.
Costas will leave UBS’s Group Executive Board at the end of 2005. He will remain as non-executive Chairman of its Investment Bank.
This new initiative will see UBS’s Principal Finance and Commercial Real Estate trading businesses move from the Fixed Income, Rates and Currencies area of its Investment Bank to form the core of the new unit within the Global Asset Management business.
Mike Hutchins, currently Global Head of Fixed Income, Rates and Currencies, Investment Bank will be appointed President, Dillon Read Capital Management. Approximately 120 staff will transfer, mainly based in New York. Subsequently, the trading strategies managed by the team will be opened up to co-investment from sophisticated, principally institutional clients, and will be supplemented by further new offerings.
UBS intends to build a new stream of investment management fees from what has until now been a purely in-house trading activity. UBS will retain its current direct investment in the relevant trading portfolios, with any incremental future investments subject to UBS’s usual risk management processes. This new business is similar in concept to other successful alternative asset management units within UBS, based on trading strategies developed within UBS’s Investment Bank.
Huw Jenkins, currently head of the Equities business, will succeed John Costas as CEO of UBS’s Investment Bank, based in London. He will become a member of the Group Executive Board from 1 July 2005. Prior to running UBS’s world-leading equities business,Jenkins built its US equities franchise into a significant market force.
Dillon Read Capital Management will be launched on or around 1 January 2006. All management changes concerning UBS's Investment Bank are effective 1 July 2005.
Before becoming CEO of UBS Investment Bank in December 2001, Chairman in September 2002 and Deputy Group CEO in May 2004, Costas was the President and Chief Operating Officer of UBS Warburg. He served from 1996 to 1997 as Head of US Fixed Income and Derivatives at UBS, becoming Global Head of Fixed Income at Warburg Dillon Read in 1998. In 1999, he also took over the position of Chief Operating Officer for UBS Warburg, and became a member of the Group Managing Board. Before joining UBS in 1996, Costas worked at Credit Suisse First Boston as Co-Head of Global Fixed Income. John Costas was born in 1957. He is a US citizen.
Costas said: “I am terrifically excited to have this entrepreneurial opportunity to build a new business within UBS. Investors have huge appetite for alternative investment products backed up by the quality assurance of a global financial leader – we can fulfill that demand. I am proud of what we have achieved in building UBS’s Investment Bank into a world leader, and am confident that Huw (Jenkins) can build on our current momentum.”
Joe Moglia a Key Channel Partner for HF/FOF Product?
InvestmentAdvisor.com
Moglia Pledges “More Aggressive” Stance in Advisor Market
06/30/05 03:48 AM
By William Glasgall
Cites “expertise”of TD Waterhouse Institutional Services
Joe Moglia, the Ameritrade CEO who engineered the proposed $3 billion merger of his firm with TD Waterhouse, says he plans to get “more aggressive” in pursuing relationships with advisors once the two discount brokers are combined into TD Ameritrade. Singling out Charles Schwab and Fidelity Investments as his chief competitors for advisor assets, Moglia says, “I’m not as interested in the custody business. I’m interested in the advisor business.”
TD Waterhouse currently has $41 billion in advisor assets, while Ameritrade claims an additional $4.1 billion. In an interview June 30, Moglia, 56, who will become TD Ameritrade’s CEO, said that capturing more advisor assets would be part of a strategy he first outlined in 2001, shortly after joining the Omaha-based online broker. At the time, he recalls, “I said that ultimately we need to move to a client segmentation strategy.” TD Waterhouse, he adds, “is an asset gatherer and we want to get into that business.” Through the TD Waterhouse advisor network and the Canadian-owned firm’s separate chain of branch offices, “literally overnight we get into the long-term investor space,” Moglia says.
Moglia won’t say whether TD Waterhouse Institutional Services President Tom Bradley will be tapped to lead the combined firms’ advisor business. However, “one of the reasons we are doing the deal is to tap into” the expertise of Bradley’s group, Moglia acknowledges. “I’ve got to believe we want to capitalize on that.”
Moglia also declines to rule out buying financial advisory firms to help build his business. “Anything that would be better [for TD Ameritrade] long term, we’ll look at that carefully,” he says.
Moglia Pledges “More Aggressive” Stance in Advisor Market
06/30/05 03:48 AM
By William Glasgall
Cites “expertise”of TD Waterhouse Institutional Services
Joe Moglia, the Ameritrade CEO who engineered the proposed $3 billion merger of his firm with TD Waterhouse, says he plans to get “more aggressive” in pursuing relationships with advisors once the two discount brokers are combined into TD Ameritrade. Singling out Charles Schwab and Fidelity Investments as his chief competitors for advisor assets, Moglia says, “I’m not as interested in the custody business. I’m interested in the advisor business.”
TD Waterhouse currently has $41 billion in advisor assets, while Ameritrade claims an additional $4.1 billion. In an interview June 30, Moglia, 56, who will become TD Ameritrade’s CEO, said that capturing more advisor assets would be part of a strategy he first outlined in 2001, shortly after joining the Omaha-based online broker. At the time, he recalls, “I said that ultimately we need to move to a client segmentation strategy.” TD Waterhouse, he adds, “is an asset gatherer and we want to get into that business.” Through the TD Waterhouse advisor network and the Canadian-owned firm’s separate chain of branch offices, “literally overnight we get into the long-term investor space,” Moglia says.
Moglia won’t say whether TD Waterhouse Institutional Services President Tom Bradley will be tapped to lead the combined firms’ advisor business. However, “one of the reasons we are doing the deal is to tap into” the expertise of Bradley’s group, Moglia acknowledges. “I’ve got to believe we want to capitalize on that.”
Moglia also declines to rule out buying financial advisory firms to help build his business. “Anything that would be better [for TD Ameritrade] long term, we’ll look at that carefully,” he says.
Sunday, July 03, 2005
Get CAIA Charter???
HEDGEWORLD HEDGE FUND FOCUS: Getting Schooled in Alternatives
September 2004
As investor interest in absolute return investments grows, so does the business of educating financial advisors about alternative investments. To address this demand, the Alternative Investment Management Association (AIMA) and the Center for International Securities and Derivatives Markets (CISDM) co-founded the Chartered Alternative Investment Analyst Association to sponsor a new educational certification program focusing specifically on alternative investments.
Although not quite two years old, the Chartered Alternative Investment Analyst (CAIA) designation is rapidly gaining industry acknowledgement as the preferred curriculum for individuals who seek to increase (and demonstrate) their knowledge of alternative investments including hedge funds, managed futures, commodities, private equity, and real estate.
To date, over 1,000 registrants, representing 300 financial institutions, have signed up to take the CAIA exams. As of August, 112 individuals had successfully completed the required Levels I and II, and had received the CAIA designation, although that number should soon increase as the third round of Level II exams have yet to be graded. More enrollees are expected as well, as several firms are now encouraging their reps and advisors to sit for the CAIA, notably Citigroup, Morgan Stanley, UBS, Pacific Alternative Asset Management Co., and Tremont, among others.
The program was conceived by CISDM’s influential Thomas Schneeweis, and AIMA’s head, Florence Lombard, after the two noticed that unlike many other professions related to finance, the alternative investment industry lacked agreed-upon professional standards with respect to knowledge, ethics, and best practices—a deficiency that the SEC also cited in last fall’s staff report on the growth of the hedge fund industry.
The CAIA Curriculum and Examination Committee and Advisory Board comprises an impressive list of industry academics and practitioners, including Mark Anson, the chief investment officer of CalPERS, Josh Lerner of Harvard Business School, Harry Kat of City University in London, and Alexander Ineichen, global head of alternative investment strategies at UBS.
The CAIA examinations are offered twice yearly, a schedule that provides candidates with the opportunity to complete the program within a single year. The Level I exam takes about four hours, covers quantitative analysis, investment theory, performance measurement, and regulatory issues regarding both traditional and alternative investments. Level I candidates have posted a passing rate of approximately 75%. Level II focuses exclusively on risk management and portfolio optimization questions about alternative investments, and includes an essay.
Although not as grueling as the Chartered Financial Analyst (CFA) designation, exam preparation requires a serious commitment on the part of CAIA candidates. CAIA promotional materials suggest that candidates commit a minimum of 100 hours of preparation prior to each level. In the past, CAIA representatives have touted the comprehensive nature of their study materials and noted that the exams do not ask candidates questions on subjects that have not been explicitly covered in their study materials.
The next test will be in February 2005; registration and exam fees total $1,200 per level. More information about the CAIA designation is available at www.caia.org.—Jeff Joseph
Jeff Joseph is managing director of Rydex Capital Partners and serves on the advisory board of HedgeWorld (www.hedgeworld.com), a global provider of hedge fund information and investment products.
Have a hedge fund question? Contact Jeff Joseph at jjoseph@rydexfunds.com.
For further inquiries about HedgeWorld, e-mail inquiry@hedgeworld.com.
September 2004
As investor interest in absolute return investments grows, so does the business of educating financial advisors about alternative investments. To address this demand, the Alternative Investment Management Association (AIMA) and the Center for International Securities and Derivatives Markets (CISDM) co-founded the Chartered Alternative Investment Analyst Association to sponsor a new educational certification program focusing specifically on alternative investments.
Although not quite two years old, the Chartered Alternative Investment Analyst (CAIA) designation is rapidly gaining industry acknowledgement as the preferred curriculum for individuals who seek to increase (and demonstrate) their knowledge of alternative investments including hedge funds, managed futures, commodities, private equity, and real estate.
To date, over 1,000 registrants, representing 300 financial institutions, have signed up to take the CAIA exams. As of August, 112 individuals had successfully completed the required Levels I and II, and had received the CAIA designation, although that number should soon increase as the third round of Level II exams have yet to be graded. More enrollees are expected as well, as several firms are now encouraging their reps and advisors to sit for the CAIA, notably Citigroup, Morgan Stanley, UBS, Pacific Alternative Asset Management Co., and Tremont, among others.
The program was conceived by CISDM’s influential Thomas Schneeweis, and AIMA’s head, Florence Lombard, after the two noticed that unlike many other professions related to finance, the alternative investment industry lacked agreed-upon professional standards with respect to knowledge, ethics, and best practices—a deficiency that the SEC also cited in last fall’s staff report on the growth of the hedge fund industry.
The CAIA Curriculum and Examination Committee and Advisory Board comprises an impressive list of industry academics and practitioners, including Mark Anson, the chief investment officer of CalPERS, Josh Lerner of Harvard Business School, Harry Kat of City University in London, and Alexander Ineichen, global head of alternative investment strategies at UBS.
The CAIA examinations are offered twice yearly, a schedule that provides candidates with the opportunity to complete the program within a single year. The Level I exam takes about four hours, covers quantitative analysis, investment theory, performance measurement, and regulatory issues regarding both traditional and alternative investments. Level I candidates have posted a passing rate of approximately 75%. Level II focuses exclusively on risk management and portfolio optimization questions about alternative investments, and includes an essay.
Although not as grueling as the Chartered Financial Analyst (CFA) designation, exam preparation requires a serious commitment on the part of CAIA candidates. CAIA promotional materials suggest that candidates commit a minimum of 100 hours of preparation prior to each level. In the past, CAIA representatives have touted the comprehensive nature of their study materials and noted that the exams do not ask candidates questions on subjects that have not been explicitly covered in their study materials.
The next test will be in February 2005; registration and exam fees total $1,200 per level. More information about the CAIA designation is available at www.caia.org.—Jeff Joseph
Jeff Joseph is managing director of Rydex Capital Partners and serves on the advisory board of HedgeWorld (www.hedgeworld.com), a global provider of hedge fund information and investment products.
Have a hedge fund question? Contact Jeff Joseph at jjoseph@rydexfunds.com.
For further inquiries about HedgeWorld, e-mail inquiry@hedgeworld.com.
