Trading volumes in the currency futures segment of both the MCX SX and the National Stock Exchange (NSE) have risen by nearly 44 per cent in October so far, compared to last month. The rise, say experts, can be linked to a strengthening rupee, which went up 3 per cent against the greenback during this period. On NSE, over 1.68 million contracts have been traded in October so far, compared to around 1.17 million contracts in September. On the MCX SX, over 1.72 million contracts have been traded so far this month, compared to a little over 1.19 million contracts in September. The rupee, which has gained over 10 per cent from its March 2009 low of 52.17, was last traded at 46.74 against the dollar.   more »

US hedge fund Wexford Capital LP is looking to buy equity stakes in Indian hydroelectric power generation companies and has chalked out a plan to invest Rs 500 crore in the country. The fund house will make investments through its wholly-owned subsidiary, Indus Renewable Energy India. At present, Indus Renewable Energy does not have any operations or any downstream investment. A person familiar with Wexford’s expansion plans in India said Indus Renewable Energy has already sought approval from foreign investment promotion board(FIPB) to make investment. Wexford Capital LP is an investment advisor with over $5 billion of assets under management. The firm, which was formed in 1994, manages a series of hedge funds and private equity funds.   more »

Life could become tougher for hedge funds and private equity firms, with the European Union and US policy makers considering stricter regulations for the trillion dollar industry. The watchdogs are aiming to fill in the gaps in the system and have called for greater transparency in the funds’ investment style, periodic disclosure of portfolio, besides limiting their aggressive leverage. The proposal, if implemented, could impact India too, say industry observers. This is because most of the funds that invest in India are from these countries.   more »

PMA Capital Management has launched a new India fund, which focuses on alpha generation from long and short positioning in the top 250 Indian companies according to market capitalization. The new vehicle, the PMA India Fund, utilizes a mix of rigorous qualitative and quantitative processes that combines a top-down discipline with bottom-up analysis. The PMA India Fund is being managed by Anoop Villait, who heads the PMA India Strategy and has over 15 years of experience in the Indian markets, as well as an extensive contact base with Indian corporates and foreign banks.   more »

Galleon, which is winding up after its founder was charged with masterminding the biggest-ever insider-trading scheme involving hedge funds, has sold almost half its stake in one of the three Indian listed firms it directly holds shares, stock exchange data showed. New York-based Galleon sold 950,000 shares in Indian engineering firm Shriram EPC at 223 rupees ($4.8) a piece to cut its stake in the firm to about 2.4 percent from 4.6 percent, data from the National Stock Exchange showed. The move comes after investors asked Galleon, which managed $3.7 billion, to return funds and as the founder Raj Rajaratnam told investors and employees he was winding down the Galleon funds.   more »

US hedge fund Wexford Capital LP is looking to buy equity stakes in Indian hydroelectric power generation companies and has chalked out a plan to invest Rs 500 crore in the country. The fund house will make investments through its wholly-owned subsidiary, Indus Renewable Energy India. At present, Indus Renewable Energy does not have any operations or any downstream investment. A person familiar with Wexford’s expansion plans in India said Indus Renewable Energy has already sought approval from foreign investment promotion board(FIPB) to make investment. Wexford Capital LP is an investment advisor with over $5 billion of assets under management. The firm, which was formed in 1994, manages a series of hedge funds and private equity funds.   more »

Hedge fund struggled to keep pace with equity markets in September, with the Hennessee Hedge Fund Index gaining 3.18% during the month (20.89% YTD). At the same time, the S&P 500 increased 3.57% (17.03% YTD), the Dow Jones Industrial Average increased 2.27% (10.66% YTD), the NASDAQ Composite Index advanced 5.64% (34.59% YTD), and the Barclays Aggregate Bond Index advanced 1.05% (5.72% YTD). “Hedge fund managers we talk to are concerned that the markets are rallying while the real economy is shrinking,” said Charles Gradante, co-founder of hedge fund advisory the Hennessee Group.   more »

The quality of overseas money being invested in Indian stocks seems to be getting better. Despite the return of foreign institutional investors (FIIs) to the market chasing a zooming Sensex, the bellwether Indian equity index that has gained 77.53% since January, the exposure of hedge funds to local stocks has dipped significantly. This could mean that the overseas money currently being invested in Indian stocks is here for the longer term. According to Singapore-based hedge fund tracker Eurekahedge Pte Ltd, hedge fund assets in India were $6-7 billion (Rs28,740-33,530 crore today) at the end of August, sharply down from $18 billion at the end of December 2007, at the height of the bull run. The Sensex hit its lifetime high of 21,206.77 in January 2008.   more »

Hedge funds have made a mint this year betting on gold, and they hope their latest big commodity bet is just as sweet. Hedge funds are investing in raw sugar futures in a big way, Bloomberg News reports, helping to double the price of the white stuff since the spring. Sugar last week traded at a 28-year high. According to the U.S. Commodity Futures Trading Commission, long bets on sugar are up 77% this year.   more »