http://www.hedgefundsindia.com/blog en-us Fri, 12 Mar 2010 15:43:48 +0530 Main Page Blogware Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476760.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476760.html Wed, 10 Mar 2010 22:57:59 +0530 Global business in Mauritius is active mainly in the area of investment in India, Africa and China. Mauritius is a leading provider of foreign direct investment in India due to favourable treatment under the double taxation agreement between the two countries. Since the signing of the agreement, many investment and hedge funds have been (and continue to be) incorporated in Mauritius for the specific purpose of investment in India. The benefits of including Mauritius in investment in the Indian market are unparalleled, whether by way of a collective investment scheme, a closed-end fund or other investment vehicle. Institutions, like individuals, are making more calculated decisions to maximize productivity and reduce risk and unqualified expenses. A more cautious period for hedge funds is thus envisaged, with international clients rethinking large-scale refinancing and extending timeframes for existing projects. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476757.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476757.html Wed, 10 Mar 2010 22:54:55 +0530 According to separate amended Reg D filings with the U.S. Securities and Exchange Commission, two hedge funds managed by Bethesda-based Monsoon Capital have gathered $387.9 million total in pooled investment fund interests. Monsoon India Inflection Fund LP now has $163.1 million from 93 investors, while Monsoon India Inflection Fund 2 LP has $224.8 million from 167 investors. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476744.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476744.html Wed, 10 Mar 2010 22:37:51 +0530 Hedge fund investors could be left out of pocket as managers conjure up shortcuts to earn once again the lucrative bonuses based on performance fees that were a feature of the industry before the credit crisis. Despite 20 percent returns last year, big losses in 2008 mean that between a half and two-thirds of hedge funds are below high-water marks -- performance levels they must hit before claiming a 20-percent fee on a fund's profits. This could persuade more managers to move to new firms where they can start earning these bumper fees straight away, forcing clients to decide whether the quality of the managers justifies the additional cost and disruption needed to follow them. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476739.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476739.html Wed, 10 Mar 2010 22:33:38 +0530 Standard & Poor's, the world's leading index provider, announced today that it has licensed the National Stock Exchange of India (NSE), the largest stock exchange in India, to create and list Indian Rupee-denominated futures contracts on the S&P 500 (subject to regulatory approvals). The licensing agreement, jointly from S&P and S&P-licensee Chicago Mercantile Exchange to NSE, is part of a landmark cross-listing arrangement announced today by CME Group, the world's leading and most diverse derivatives marketplace, and NSE that covers benchmark indices for U.S. and Indian equities. The Rupee-denominated S&P 500 futures contracts will be made available on NSE via a sublicense from Standard & Poor's. Widely considered the single best gauge of the U.S. equity market since it launch in 1957, the S&P 500 is the world's most followed stock market index with nearly $1 trillion directly indexed and $3.51 trillion benchmarked to it. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457623.html http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457623.html Tue, 16 Feb 2010 22:44:02 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457619.html http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457619.html Tue, 16 Feb 2010 22:41:19 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/2/12/4454110.html http://www.hedgefundsindia.com/blog/_archives/2010/2/12/4454110.html Fri, 12 Feb 2010 21:25:01 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/1/19/4432472.html http://www.hedgefundsindia.com/blog/_archives/2010/1/19/4432472.html Tue, 19 Jan 2010 21:26:17 +0530 The fast-growing BRIC group of economies will be back in favor in 2010 among emerging markets-focused hedge fund managers, who may shun European countries slammed by recession, an industry expert said. While strong growth is expected in Brazil, Russia, India and China, the European Commission expects the fiscal position of so-called PIIGS -- Portugal, Ireland, Italy, Greece and Spain -- to worsen even further in 2010. "Concerns about absorption of new government bond issues will affect the intermediate-to-long sector of the yield curve in those countries," Lipper hedge fund research head Aureliano Gentilini told Reuters on Friday. "Rating agencies will downgrade further the credit rating of PIIGS countries." Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382150.html http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382150.html Mon, 16 Nov 2009 23:36:28 +0530 A broad spectrum of participants are buying up gold as it sits at record highs, all hoping to add a little glitz to their portfolio. To be sure, some of the gold demand is from jewelry fabricators or buy-and-hold type investors such as those who purchase small bars and coins. But a large chunk is also coming from those who move in and out of the market more often. The sharp gains in gold -- up about 26% on the year -- have made it all the more alluring to these speculators who do not need physical metal and are making short-term bets on price direction. "All told, investors poured $552 million into gold bullion ETFs in October," a Morningstar report said. Some hedge fund managers who have been spotlighted for their investment in gold include John Paulson at Paulson & Co. and Greenlight Capital's David Einhorn. Mr. Paulson at one point this year held nearly 9% of the SPDR Gold Trust. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382142.html http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382142.html Mon, 16 Nov 2009 23:19:27 +0530 The hedge-fund industry may be on track to deliver its best annual returns in years, but many managers still aren't in a position to collect performance fees. Most hedge-fund fortunes were earned through the collection of performance fees, typically 20% of any profit. The fee structure gives managers an incentive to outperform and provides some protection for their investors. But in the third quarter, roughly two-thirds of funds globally still hadn't recovered from the steep declines of 2008, estimates Chicago data tracker Hedge Fund Research Inc., or HFR. About a quarter of funds were more than 20% below their previous high point, or high-water mark, and thus couldn't charge performance fees for this year's gains. The industry "is recovering, but not yet recovered," said Kenneth Heinz, HFR's president. For many managers, 2009 will be the second year in a row that they won't be pocketing performance fees. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360606.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360606.html Sat, 24 Oct 2009 23:34:06 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360602.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360602.html Sat, 24 Oct 2009 23:31:52 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360600.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360600.html Sat, 24 Oct 2009 23:28:05 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360596.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360596.html Sat, 24 Oct 2009 23:24:29 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360591.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360591.html Sat, 24 Oct 2009 23:21:41 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/19/4355598.html http://www.hedgefundsindia.com/blog/_archives/2009/10/19/4355598.html Mon, 19 Oct 2009 21:33:52 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347802.html http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347802.html Sun, 11 Oct 2009 23:12:12 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347798.html http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347798.html Sun, 11 Oct 2009 23:03:46 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347796.html http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347796.html Sun, 11 Oct 2009 23:00:04 +0530 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. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319292.html http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319292.html Sat, 12 Sep 2009 14:14:13 +0530 The price of gold could rise as high as $1,600 an ounce as investors opt for assets with lasting value rather than volatile currencies, says one hedge fund manager who has increased his exposure to the precious metal. "All the fundamentals are in place. If it breaks last year's high it can go to $1,200 to $1,400 quite quickly," Pedro de Noronha, managing partner of Noster Capital told Reuters in an interview on Tuesday. Spot gold rose through the psychologically significant barrier of $1,000 an ounce this week-- its highest since March 2008 when it hit a record $1,030.80. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319290.html http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319290.html Sat, 12 Sep 2009 14:12:23 +0530 US-based hedge funds DE Shaw and Citadel Investment Group have filed a winding-up petition against Venus Remedies, after the Chandigarh-based company defaulted on a foreign currency convertible bond (FCCB) issue. New York-based DE Shaw, which has invested in several Indian companies such as DLF Assets, and Chicago-based Citadel Investment subscribed to a $12-million FCCB issue of Venus Remedies in May 2006. The bonds came up for redemption on May 2 this year, but company failed to pay the investors. This is the first time that an Indian company is slapped with a winding-up petition — a formal request to a court for the compulsory liquidation of a company — by FCCB investors. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300323.html http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300323.html Wed, 26 Aug 2009 12:30:02 +0530 Europe's largest hedge-fund manager has set up two Mauritius-based vehicles as a way for its flagship global-macro fund to invest in India, underscoring the growing interest in the region. London-based Brevan Howard Asset Management LLP, which manages $24 billion, said in a stock-exchange filing late last week that it had created two funds in Mauritius to hold Indian investments for its flagship Brevan Howard Master Fund. That $15 billion fund pursues a freewheeling global macro strategy, investing in instruments its managers expect to be influenced by global economic themes. A spokesman said Mauritius funds are a standard way to invest in India for those who want to keep assets offshore. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300320.html http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300320.html Wed, 26 Aug 2009 12:27:57 +0530 As individual hedge funds recover in the first half of 2009, hedge fund of funds are still suffering heavy redemptions. A recent study of the top 50 hedge funds of funds found all but two funds have not recovered from the drop in assets since September 2008. Assets in hedge funds of funds fell from a spike of $825 billion to just $530 billion in June. This is a staggering loss for the hedge fund of fund industry which has increased at a rate of more than 20 percent annually from 2000-2008. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/7/31/4273123.html http://www.hedgefundsindia.com/blog/_archives/2009/7/31/4273123.html Fri, 31 Jul 2009 12:47:08 +0530 Assets under management of foreign institutional investors (FIIs) slumped 39 per cent in the 18-month period ending June 30, broadly in line with the drop in stock prices from the peak recorded in January 2008. According to data released by SEBI last week, FIIs’ asset base shrank to Rs 6,29,647 crore towards the end of June from Rs 10,27,141 crore recorded at the end of 2007. The benchmark, BSE Sensex, declined 28 per cent in this period while the broad-based BSE-500 and the BSE Mid-cap indices are down 36 and 48 per cent respectively. SEBI released this data for the first time on Friday. According to Mr Gul Teckchandani, an independent strategist, some of the investments FIIs made in mid-cap stocks at the peak are still quoting 50-75 per cent lower from that level. This explains the slightly larger value erosion of FIIs’ asset base. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/7/17/4257970.html http://www.hedgefundsindia.com/blog/_archives/2009/7/17/4257970.html Fri, 17 Jul 2009 18:22:09 +0530 Citigroup-owned hedge fund Old Lane is increasing its stake in KVK Energy & Infrastructure in a deal worth Rs 116 crore, a person directly involved in the transaction said. Old Lane will invest by subscribing to compulsorily fully convertible debentures of the Indian infrastructure development company. After conversion into equity, the total foreign direct investment in privately held KVK Energy & Infrastructure will rise to 70% from 33%. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/7/17/4257966.html http://www.hedgefundsindia.com/blog/_archives/2009/7/17/4257966.html Fri, 17 Jul 2009 18:16:26 +0530 An India-focussed hedge fund, which owes its name to this year’s Oscar winner for the best song, has garnered $11 million for buying Indian stocks which are ‘slumdogs’, but with potential to become ‘millionaires’. The money has been raised by ‘Helios India Jai Ho Fund’ named after the theme song of the movie ‘Slumdog Millionaire’ that scooped eight Academy Awards this year— and would be invested in the stocks that are like slumdogs of the market, but could gain significant value over time. The fund, launched by Singapore-based Helios Capital Management, seeks to replicate the storyline of worldwide box office hit, wherein the protagonist rises from Mumbai slums to become a millionaire after winning a television quiz show. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230597.html http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230597.html Mon, 22 Jun 2009 21:52:05 +0530 Hedge funds returned an average 5.2 percent in May, the best performance in more than nine years, as they attracted more money and global markets rallied, Eurekahedge Pte said. The Eurekahedge Hedge Fund Index, tracking more than 2,000 funds, has advanced 9.2 percent this year, according to a preliminary report by the research firm based on the 27 percent of funds that reported May performance. The industry recorded net inflows for the first time in 10 months in May, gaining $1.5 billion, while total assets rose by $5 billion, the report said. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230583.html http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230583.html Mon, 22 Jun 2009 21:44:00 +0530 India will introduce exchange-traded interest-rate futures to provide a mechanism to institutions and households to hedge their interest-rate risks. The contract will have 10-year government bond with a 7% semiannual compounding notional coupon rate as the underlying security, the Reserve Bank of India and the Securities and Exchange Board of India said in a joint report on interest-rate futures. The size of a single contract will be 200,000 rupees ($4,196) and the maximum maturity of the contract will be 12 months, it said. The contracts will be traded on the currency derivatives segment of a recognized stock exchange, the report said. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230579.html http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230579.html Mon, 22 Jun 2009 21:41:59 +0530 Better fasten those seat belts, investors, because if hedge fund managers have any insight at all, the credit crunch and market turmoil may not be over yet. About 800 gathered for the GAIM International hedge fund and alternative investment event in Monaco.Russell Abrams, founder and senior portfolio manager of Titan Capital Group, which manages hedge funds using volatility arbitrage strategies, said 2009 could shape up as mirroring 2008 somewhat.As for the major currencies in the short term, he said the dollar will benefit as stimulus efforts begin to kick in: "I feel once [stimulus efforts] they start to bite, the American economy is ready to go and could go really, really strongly." But for the longer run, Leskinen said, the strength is not that convincing. "I think the shift of the world's economies has gone to China and India and these BRIC (Brazil, Russia, India and China) economies. They are the new economy superpowers in the economic world. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230569.html http://www.hedgefundsindia.com/blog/_archives/2009/6/22/4230569.html Mon, 22 Jun 2009 21:34:55 +0530 Asia-based hedge funds will see a turnaround in inflows in the third quarter as investor confidence returns, but new players may still struggle on concerns over risk controls in the scandal-hit industry. Like their counterparts in Europe and North America, Asian hedge funds have suffered heavy redemptions since Lehman Brother's collapse in September and the Madoff fraud spooked investors and spurred a retreat to safer assets. But the pace of withdrawals is slowing, and several industry players predict Asian hedge funds could see net inflows during the second half of 2009, judging by expressions of interest by potential investors and requests for research and due diligence. Lipper's Gentilini estimates that in a post-Madoff era, new funds may need $250 million in assets under management to generate enough fees to cover the overheads needed. Main Page