5.10.2010

John Paulson Finally Bullish on Housing?

John Paulson, whose multi-billion dollar hedge fund Paulson & Co. famously profited from the meltdown in the subprime market is now bullish on the housing market. Yes, this is the same Paulson & Co. hedge fund which keeps coming up in the Goldman Sachs investigation as the hedge fund which was not revealed to other parties to be the firm shorting these CDOs.

Paulson believes housing prices will rise 3-5% in 2010 and 8-12% in 2011. Of course, given the recent price stabilization across the national markets, this is not that grandiose of a prediction. It certainly doesn't rival his brazen decision in the middle of the decade to heavily short the mortgage market while 99% of other investors were still clueless. In any case, investors might do well to listen to Paulson. He has been bullish on gold in 2010. So far gold is up about 10% so far in 2010.

Volatility Hedge Funds Profit from Recent Market Swings

Some long-volatility hedge funds have made a substantial profit from the recent market turmoil, including last Thursday's still unexplained trading "glitches". While many retail investors had their stop-losses hit, or sold for other reasons, long volatility hedge funds require drastic market movements to generate profits.

Volatility funds invest mostly in the options market, typically taking long positions in calls, puts, or both. When implied volatility increases (typically high volatility accompanies downward swings), the value of these long option positions increases as well. In fact, even if the price of the underlying security is the same, increases in implied volatility can increase the value of put and call options.

Who runs these volatility hedge funds? One is run by Tim Gascoigne of HSBC Alternative Investments. That fund gained 10% last week and 4% on Thursday alone.

Meanwhile, the unexpected market action left many other hedge funds on the sideline as they tried to sort out what exactly had just happened.



4.16.2010

2100 Xenon Group - Hedge Fund Manager Profiles

2100 Xenon Group

Strategies:
Managed Futures, Fixed Income

Description:
2100 Xenon is a hedge fund / CTA specializing in a full range of futures products including global equity, fixed income, currency, energy, metals and other commodities. The 2100 Xenon Long/Short Global Fixed Income Program is a systematic managed futures strategy that invests in global fixed income markets with an expected volatility of 7.5-10% annualized.

Leadership:
Steven Schnur, Director
CEO, Director

Assets Under Management (AUM):
$120 Million

Website:
www.2100xenon.com

Contact Information:
2100 Xenon Group
430 West Erie Street, Suite 310
Chicago, IL 60610

Phone: 3123379411
Fax: 3123379685

4.10.2010

360 Global Capital - Hedge Fund Manager Profiles


360 Global Capital

Strategies:
Global Equity, Long/Short,

Description:
360 Global Capital is a New York based global equity long/short hedge fund launched in 2008 by Rick Abeyta.

Leadership:
Enrique J Abeyta, Founder

Website:
www.360globalcapital.com

Contact Information:
360 Global Capital
529 Fifth Avenue, 8th Floor
New York, NY 10017

Phone: 2129463556

4.06.2010

3 Sigma Value Management - Hedge Fund Manager Profiles


3 Sigma Value Management

Strategies:
Global Equity, Long/Short

Description:
In 2007, 3 Sigma Value, a New York based hedge fund launched its $6million equity long/short fund, using a deep-value, fundamental-based, long-short investment strategy. 3-Sigma Value Offshore, Ltd, is domiciled in the British Virgin Islands


Leadership:
Benjamin Weinger, Portfolio Manager
Portfolio Manager, Portfolio Manager

Website:
http://3sigmavalue.com

Contact Information:
3 Sigma Value Management
250 Park Avenue South, 10th Floor
New York, NY 10003

Phone: 6464523004
Fax: 6464523004

4.05.2010

1794 Commodore Funds - Hedge Fund Manager Profiles


1794 Commodore Funds

Strategies:
Fund of Funds

Description:
1794 Commodore Funds is a boutique fund of hedge funds manager in New York. The 1794 Commodore Funds is a joint venture between York Capital Management, a multi-billion dollar event driven hedge fund manager, and William A.M. Burden & Co.
As a fund of hedge funds advisor, 1794 Management, specializes in identifying asset managers who invest where market inefficiencies have created asymmetric return opportunities.


Leadership:
Oscar Leal, Managing Director
Chairman and CEO, Managing Director

Website:
http://1794commodore.com

Contact Information:
1794 Commodore Funds
400 Madison Avenue, Suite 9D
New York, NY 10017

Phone: 2126510502

4.04.2010

Top 25 Hedge Fund Managers' Avg. Compensation Exceeds $1 Billion

2009 Hedge Fund Manager Compensation Sets Record

According to Absolute Return magazine, the top 25 hedge fund managers earned $25.3 billion in 2009, $3 billion more than the previous record set in 2007. Hedge fund managers typically get most of their income from an incentive fee (percentage of the funds returns) as well as gains on their personal investments in their funds. Strong overall equity markets in 2009 contributed to strong earnings for thousands of hedge fund managers, not just the top 25.

The top hedge fund manager in terms of 2009 compensation was David Tepper of Appaloosa Management who made large bets that the US govt. would not let large banks fail as well as a successful investment in AIG. Tepper's to-big-to-fail bet paid off in the amount of about $4 billion in total compensation. Behind Tepper in second place overall, was billionaire investor George Soros and his hedge fund Quantum Endowment. Soros made over $3 billion in investment gains and fees. Renaissance Technologies' James Simon was third on the 2009 Top Hedge Fund Earners List.

4.03.2010

1492 Capital Management - Hedge Fund Manager Profiles

1492 Capital Management
Strategies:
Multi Strategy
Description:
1492 Capital Management is a Milwaukee-based hedge fund. The firm's investment approach is based on:
Intensive company research used to assess which companies will be the major beneficiaries of an industry or sector theme.
Face-to-face interviews with companies, their competition and suppliers to accurately analyze finances and understand managements’ plans and motivations.
Leadership:
Tim Stracka, Founding Principal
Chief Operating Officer, Founding Principal

Website:
www.1492capitalmanagement.com

Contact Information:
1492 Capital Management
309 North Water Street, Suite 505
Milwaukee, WI 53202

Phone: 4142249160

4.02.2010

1607 Capital Partners - Hedge Fund Manager Profiles

1607 Capital Partners

Strategies:
Equity

Description:
1607 Capital Partners is a Richmond, VA based RIA specializing in separate accounts for institutional clients. Minimum account size is $25 million. Investments are evaluated by a number of factors including relative value as measured by the fund’s discount to its underlying net asset value; macroeconomic factors influencing the fund’s specific country or region of investment; historical performance of the managers versus their peers; and more.

Leadership:
Jim Mallory, Managing Director
Chairman, Managing Director

Assets Under Management (AUM):
$500 Million

Website:
http://1607capital.com

Contact Information:
1607 Capital Partners
4991 Lake Brook Drive, Suite 125
Glen Allen, VA 23060

Phone: 8045251750
Fax: 8049340014

3.29.2010

47 Degrees North Capital Management - Hedge Fund Manager Profiles

47 Degrees North Capital Management

Strategies:
Fund of Funds, Emerging Markets

Description:
47 Degrees North Capital Management is a specialist alternative investment firm offering fund of hedge fund investments to institutional investors seeking access to emerging managers, innovative strategies and thematic hedge fund investments. $& Degrees North identifies managers using a qualitative and quantitative process.

Leadership:
Claude F. Porret, CEO
Managing Member, CEO

Assets Under Management (AUM):
$100 Million

Website:
www.47n.com

Contact Information:
47 Degrees North Capital Management
440 Park Avenue South, 14th Floor
New York, NY 10016

Phone: 2129203570
Fax: 2129203571

6800 Capital - Hedge Fund Manager Profiles

6800 Capital

Strategies:
Multi Strategy, Fund of Funds

Description:
6800 Capital is a New Jersey based fund of hedge funds manager. The firm's manager selection is based on a database of over 5,000 advisors from ultiple asset classes including equities, interest rate markets, commodities, and currencies. The firm also offers specialized and custom tailored funds designed for those investors looking to enhance their existing portfolio of alternative investments.

Leadership:
Paul R. Morin, Director of Research
Chairman, Director of Research

Assets Under Management (AUM):
$240 Million

Website:
www.6800capitalllc.com

Contact Information:
6800 Capital
One Palmer Square East, Suite 530
Princeton, NJ 8542

Phone: 6099216595
Fax: 6096831397

3.22.2010

Hedge Fund Gains From Cold Arctic Weather

Betting on Weather
Plenum Power Surge, a hedge fund based in Switzerland, is up 19% in just the first two month sof 2010 after betting on increasing power prices in Scandinavian countries.

The Plenum Power Surge fund manages almost $100 million in assets and has correctly predicted increasing prices after the coldest winter in Sweden in more than 20 years.

Henrik Wennberg, portfolio manager of the fund said, "...we were bullish on weather....and started buying then to take long positions."

Read More

Hedge Fund Cover Letter Tips

Hedge Fund Cover Letters

Applying for a hedge fund job? You are going to need a strong hedge fund cover letter. Most hedge fund managers won't give your resume/cover letter more than a few seconds of their time (time is money). Writing a unique and concise cover letter is essential if you want a second-glance from most hedge fund managers.

Brevity is important. Don't waste the time of the person reading with boring cliches or superfluous information. However, there are a few key things you must say in your hedge fund cover letter:
  • Who are you and what can you do for this specific hedge fund manager?
  • What do you want to do for the hedge fund (research, quant, programming, internship)?
  • Why are you qualified for this role / what makes you the right person?
Answer these questions concisely and you will be ahead of most of your competition. Also, remember this: the vast majority of job postings for hedge fund jobs specifically state that outstanding communication skills are required. What better way to demonstrate your written communication than in your cover letter to a hedge fund manager. Spend the time necessary to answer these questions and show your ability to communicate key information.

Of course, you shouldn't forget cover letter basics such as formatting and closing with a call to action (invite to meeting, or commit to a phone call etc.) You can find some cover letter basics here.

Also, make sure to check out our Hedge Fund Resume Writing Guide.


More info on hedge fund cover letters:


Guide to Getting a Hedge Fund Job

Cover Letter and Resume Editing

Hedge Fund Resume Writing Tips

Hedge Fund Resumes

Increased competition and consolidation among hedge funds and other alternative investment companies has potential employees scrambling to get an advantage. Though your qualifications are paramount, presenting your skills properly through a well-designed resume can be of significant importance. Below, you will find some tips on writing a quality hedge fund resume.

There are plenty of resources on general resume writing. If you need a refresher course on the basics of resume writing, go here. This post will focus specifically on some of the important considerations for writing hedge fund resumes with impact. We also assume that many of those reading this post are looking for relatively entry-level hedge fund jobs such as Hedge Fund Analyst or Hedge Fund Associate, maybe even an internship with a hedge fund.

The first step is to identify anything from your academic or employment history that might help you stand out from the dozens or hundreds of other potential applicants for the job. Most people applying for a hedge fund Analyst role, for example, will have excellent GPAs from top universities. This is especially true for large hedge funds in New York, which often draw many Ivy League applicants. If your GPA or SAT scores were outstanding, include them, but if you put too much focus on something like grades or test scores, you risk being outmatched by an applicant with even better ones. Instead, try to focus on an unique achievement that demonstrates why you are qualified and also helps you to stand out from the competition. Maybe you helped found your university's investment club, maybe you had an internship with a boutique hedge fund, maybe you helped create a charity sponsoring micro-loans in Asia.

Find that achievement that differentiates you and highlight it. Unless your academic and professional history are superb, being bland will get your resume and cover letter tossed in the trash.

Remember, your resume will be unlikely to get more than a brief glance from most hedge fund managers. You have to make an impression. If necessary, you can use the interests section of your resume to get some attention. Be careful not to overdo this section, but if you happen to know that a certain hedge fund manager dines at fancy French restaurants, and you are huge wine connoisseur, maybe you mention in here.

Now, focus on creating a hedge fund cover letter that will give the person reviewing your application reason to look at your stellar resume.

More info on hedge fund resumes:
Foot in the Door, The Art of the Hedge Fund Resume
Guide to Getting a Hedge Fund Job

2.24.2010

Largest Hedge Funds Control Only 1% of Market?

Do Hedge Funds Only Control Small Portion of Market?
It is a common perception that major hedge funds control much if not most of the equity and commodity markets. This is not an unreasonable belief considering hedge funds in the US control over $1 trillion in assets. Citadel Investment Group, one of the US' largest funds, is said to account for almost 3% of US trading volume.

Well, on Tuesday Feb. 23, the U.K. Financial Services Authority found that 50 of the U.K.'s largest hedge funds control less than 1% of the European stock market. The 50 firms in that survey manage about $300 billion USD in assets. They also concluded that no individual hedge fund posed any systemic risk.

According to the WSJ, the study looked at all assets of these funds including their long and short positions as well as derivatives.

There are some flaws with the above conclusions though. Conspicuously absent is a report on hedge funds' total share of market activity as opposed to simply their holdings. It is also unclear from the WSJ article how the derivative values were calculated and whether short positions were netted against long positions or added.

Still it is interesting that based on UK regulators' statements, they see even large hedge funds as posing little risk to the system.



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