It seems, foreign institutional investors’ (FII) have to wait some more time to enter into currency futures markets in India. The Reserve Bank of India (RBI) is not in favor of foreign institutional investors’ entry into currency derivatives, even as the futures market for currencies and commodities segments continues to grow strongly. In a joint meeting of regulators comprising RBI officials and the Securities and Exchange Board of India (Sebi) recently, the RBI expressed unwillingness to allow FIIs into currency derivatives and commodities futures where even domestic institutional players are not allowed entry. Average daily volume of currency derivatives for the current month till last week was Rs 30,190 crore on the MCX Stock Exchange and National Stock Exchange (NSE). In April 2009, it was Rs 4,677 crore.   more »

Hedge fund strategies ended the first month of the year down 0.94 per cent as stocks pulled back amid fears about the global economy and the fiscal health of some Eurozone countries, according to the Lipper Hedge Fund Composite Index. Convertible arbitrage (-0.12 per cent) and credit focus (+0.27 per cent) led the performance league table for January. In contrast, other hedge (-2.67 per cent) and managed futures (-2.79 per cent) were the worst performing strategies. All equity-related strategies ended in negative territory in line with the global stock markets. Meanwhile, trend followers also posted losses, hammered by a correction in stocks and commodities.   more »

Hedge fund manager Orchard Capital Partners, which spun-off Stark Investments in 2009, said it has launched a new long/short fund on Thursday which it aims to grow to $500 million in two-three years. The fund, Orchard Gemini, which began trading in January is expected to open up to outside investors in April 2010. Orchard was formed in October 2009 after Teall Edds and Stuart Wilson who were running Stark's Asia investments quit the Milwaukee-based hedge fund taking the firm's Hong Kong and Singapore operations with them.This new long/short fund will look to invest across the region, most notably in Australia, South Korea, Hong Kong, Singapore, Japan, India, China, Taiwan and Indonesia, said Orchard Capital in a statement.   more »