Hedge Fund News Wrap: Week Ending 11/1/13

Oakley Capital to Close Commodities Fund


Poor performance by commodities hedge funds has continued to discourage investors, and funds of hedge funds continue to close their door this year. Oakley

Capital has joined the growing list of prominent funds that are pulling the plug on their funds for commodities hedge funds.

The commodities fund, which managed $10 million in assets, is following in the footsteps of BlueGold Capital Management, Clive Capital, and Arbalet Capital.

According to the Newedge Commodity Trading Index, funds fell by 1 percent in the first nine months of this year, extending two years of losses.


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Bloomberg News




Balyasny to Reopen Funds, Seeks to Gain from SAC’s Losses

Balyasny Asset Management, which runs a strategy similar to rival SAC Capital, plans to reopen its fund to new investment next year. ValueWalk calls the move “unusual,” as most funds are either closing their doors or returning capital.

In addition, the firm also told investors that they are looking for talent in several areas including Asian Commodities and European Equities.

FINalternatives reported that Balyasny has already added traders “fleeing scandal-tarred” SAC, which is expected to plead guilty to insider-trading charges and pay a record $1.8 billion fine.

As SAC prepares to return most of its outside capital, those redemptions will be looking for a new home. This would ultimately leave SAC managing Steven Cohen’s exclusively as a family office.


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SEC Sues Retired Hedge Fund Consultant

The Securities and Exchange Commission has filed insider-trading charges against Dennis Rosenberg, a retired hedge fund consultant.

Allegedly, Rosenberg used market-moving information from a former executive at the clothing company Carter’s Inc., to trade in advance and make $500,000.

Rosenberg then passed the information off to two hedge funds, which also traded on the information.

According to the SEC, the retired hedge fund consultant did not deny or admit wrongdoing, but will pay a fine of $500,000 with $108,000 in interest.

Rosenberg is the third person connected to Carter’s Inc. to be charged with insider-trading. Two former vice presidents of the company pleaded guilty to criminal charges in 2012.


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Introducing Hedgez, a “Dating Site” for Investors

Since September 23rd, hedge funds have been allowed to advertise to the general public, but many of them have been hesitant to do so or are not sure how to court the public.

In comes Hedgez, a website that matches investors and hedge funds in the same way Match.com and OkCupid does for singles.

According to Jeffrey Schwartz, the founder and chief executive officer of Hedgez, “Hedge funds are very smart about what they do, but don’t have a clue about how to raise money.”

Hedgez uses online marketing to target potential investors, and uses social networking sites such as LinkedIn to target them based on job description, history and location.

Once investors are lured to the website, they can create a profile by answering an anonymous questionnaire about investment style, risk appetite and goals. Similar to dating websites, an algorithm does all the matching.

Kristen Salyer, from Bloomberg BusinessWeek writes, “It’s up to the investors whether they want to break the ice and initiate a relationship. Given the drop in hedge fund performance lately—they lagged the Standard & Poor’s 500-stock index by about 10 percentage points this year; do investors really need an easier way to find them? I think I’d prefer to take my chances with online dating. At least then, I know we’d split the check.”


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PR Web