Singapore Hedge Fund

Alternative asset management in Singapore

25 biggest hedge funds in Asia

Asia’s 25 biggest hedge funds in 2009
1..Sparx Group (Tokyo) US$4.82bn
2. Value Partners (HK) US$3.19bn
3. Artradis Fund Management (Singapore) US$2.722bn
4. ADM Capital (HK) US$2.2bn
5. Arisaig Partners (Singapore) US$1.996bn
6. Penta Investment Advisers (HK) US$1.910bn
7. Pacific Alliance Investment Management (HK) US$1.450bn
8. Target Asset Management (Singapore) US$1.400bn
9. Aisling Analytics (Singapore) US$1.186bn
10. Ortus Capital Management (HK) US$805m
11. LIM Advisors (HK) US$800m
12. Tree Line Investment Management (HK) US$760m
13. JL Capital (Singapore) US$618m
14. Sofaer Capital (HK) US$610m
15. Symphony Financial Partners (Singapore) US$600m
16. Asia Genesis Asset Management (Singapore) US$599m
17. Tower Investment Management (Tokyo) US$581m
18. Ward Ferry Management (HK) US$575m
19. Income Partners Asset Management (HK) US$520m
20. Lapp Capital (Singapore) US$500m
21. UG Investment Advisers (Singapore) US$496m
22. Argyle Street Management (HK) US$458m
23. Abax Global Capital (HK) US$455m
24. Brooke Capital (HK) US$450m
25. Asuka Asset Management (Tokyo) US$428m
Source: this document

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Recruiting Quant interns in Singapore

We are looking for Quant Interns to come to Singapore. We provide R/T ticket – accomodation and living allowance for 12 month and the possibility of joining the team after that. This is for a joint venture between a singaporean university and a North American hedge fund to research Risk Analysis in derivative portfolios.

you can apply at HR@singaporehedgefund.com

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Forex Guides in Italian, Spanish and French

From our friends at Qnet Exchange, some useful websites with information on Forex trading in the Italian, Spanish and French markets :


Italian  Markets Forex guide:

Guadagnare col Forex Online

________________________

Spanish Markets Forex guide:

Sabemos sobre Forex en línea

________________________

French  Markets Forex guide:

Votre source sur le marché des devises Forex

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New Asia-focused team at FrontPoint

FrontPoint Partners hired a new Asia-focused event-driven and special situations hedge fund investment team, led by portfolio manager John Foo.

The Singapore-based team all came from Kingsmead Capital Advisors, which Mr. Foo founded.

Joining him is Edgar Chia, analyst, and Hubert Yong, trader; they held similar positions at Kingsmead Capital, according to a FrontPoint news release.

Kingsmead Capital liquidated its similarly managed Asian hedge fund in July 2008, said Erica Platt, a spokeswoman for FrontPoint’s parent, Morgan Stanley Investment Management.

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Goodyear will not be Temasek's next CEO

Singapore government investment fund Temasek said Charles W. Goodyear won’t take over as chief executive because of differences in strategy, a surprising reversal that leaves the wife of the prime minister in the company’s top job.

Goodyear, who had been working alongside outgoing chief executive Ho Ching since March, will leave the sovereign wealth fund next month, Temasek said in a statement Tuesday.

Temasek in February named Goodyear, a former chief executive of the world’s No. 1 mining company BHP Billiton, to take over on October 1 from Ho. The wife of prime minister Lee Hsien Loong had headed Temasek since 2004 and announced her resignation days before the fund said it lost $39 billion, or 31 percent of its assets, between March and November last year.

In tightly controlled Singapore, the appointment of Goodyear, an American, had been seen as a sign that the government was loosening its grip and acknowledging the need for specific expertise from abroad. Now just five months later, that experiment appears to have been derailed.

“It’s embarrassing for sure,” said David Cohen, an economist with consultancy Action Economics in Singapore. “This isn’t the way they normally operate here. Professionalism has been the rule.”

Temasek said the decision to part ways was in its and Goodyear’s interests.

“The Temasek Board and Mr. Goodyear have concluded and accepted that there are differences regarding certain strategic issues that could not be resolved,” the fund said in a statement.

Making the move even more unusual was the long vetting process Goodyear went through before accepting the job.

Goodyear, who has a masters of business administration from the Wharton School of Finance, University of Pennsylvania, said in February he had been in talks with Temasek for the previous 15 months.

“Surprising is the word,” Cohen said. “He was about to command a substantial portfolio. You wouldn’t think he’d walk away from that very easily.”

Temasek’s investments were worth $84 billion as of Nov. 30.

Ho, who has a master’s degree in electrical engineering from Stanford University, said in February she would step away from the day-to-day operations of the fund.

“Chip brings capabilities that I don’t have,” Ho said at the time. “I don’t see myself as needing to direct it (Temasek) in any way.”

Singapore’s Ministry of Finance is Temasek’s only shareholder. The company, which is smaller than the city-state’s other sovereign wealth fund, the Government of Singapore Investment Corp., owns large stakes in many of the country’s biggest companies, including Singapore Telecommunications and Singapore Airlines.

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Sovereign Wealth Funds and the Global Economic Crisis

The global economic crisis has left many sophisticated institutional investors reeling. Most are yet to fully recover even though markets have clawed back some of their early losses. Worst hit are the hedge funds with exposure to financials and commodities. For instance, New York based Ospraie Fund that was worth some $2.8 billion at the start of August 2008 wound up later in the year as its holdings took a massive hit due to falling commodity prices. London based RAB Capital, which invests in small cap mining stocks, had to seek protection from redemptions due to falling commodity prices and consequent poor performance. Assets under management by RAB have reportedly fallen by 74% in 2008.

It is not only regular hedge funds that have crash landed but also mighty Sovereign Wealth Funds (SWFs). The Monitor Group, a US based consulting firm, estimates SWFs to have lost $57.2 billion on the publicly disclosed investments of $125.7 billion they have made since 2006. According to a working paper on Gulf Cooperation Council (GCC) SWFs published by The Council on Foreign Relations (Brad Setser and Rachel Ziemba), SWFs in the GCC have lost as much as $350 billion in 2008. SWFs elsewhere haven’t faired any better.

SWFs are returning to the market again and are making big investments. Some of these investments are in strategically important assets to their sponsors; i.e. their respective governments. SWFs have made a wide range of investments covering a multitude of sectors such as banks, real estate, energy and technology.

With their massive wealth and sprawling investments, SWFs have marked the rise of state capitalism. Owned directly by a sovereign government and managed independently of other state financial institutions, SWFs were created to manage the country’s foreign exchange reserves. Some high profile SWF investments include $3 billion in Blackstone Private Equity Firm by the Chinese Investment Corporation (CIC), $75 billion in Citigroup by Abu Dhabi Investment Authority (ADIA) and $800 million investment by Mudabala Investment Company from Abu Dhabi (Mudabala).

The advent of SWFs was viewed by many with considerable hostility and even prompted Mr. Larry Summers, the former US Treasury Secretary, to express concerns over potential threats by SWFs. Mr Summers’ concerns stem from the differences between investments by governments through SWFs and those by other conventional institutions as the former may have different motives. Mr Henry Paulson, another former US Treasury, urged the International Monetary Fund (IMF) to develop “best practices” to govern SWFs investments to, “demonstrate to critics that SWFs can be constructive, responsible participants in the international financial system.”

Those were the heady days of 2007-2008, when markets were defying gravity and oil was reaching new highs. And most of the SWFs are actually from oil rich nations. With government coffers brimming with foreign reserves on the back of the oil windfall, SWFs such as ADIA, Kuwait Investment Authority (KIA) and Qatar Investment Authority (QIA) were making inroads into markets in the West with investments in large corporations, banks and private equity firms.

Given the influence SWFs can exert and the magnitude of funds under their management (estimated to be $3.22 trillion), an analysis of SWFs and their investment strategies would prove to be appropriate. So what are the implications of these losses to the investment world? What have been the responses by SWFs? How will they change the investment strategy of these funds? What would be their role in a post financial crisis environment?

We interviewed investment officials and policy makers from several prominent SWFs to determine the answers to the questions above. In a series of articles we will be publishing views, findings and conclusions, of course within the boundaries of confidentiality.

One notable observation was that SWFs have started reducing their investment time horizons in response to market uncertainties and declines in reserve transfers. This appears to be the case particularly for SWFs established by oil producing countries. Views on expected returns have changed, leading to the postponement of some investments. It is fair to say that SWFs will not be making aggressive investments such as those in 2007 – 2008, unless of course the assets are at fire sale prices.

SWFs are also moving towards the establishment of stabilisation funds, to insulate their respective economies from falling commodity prices and export earnings. They are also expected to provide stability in fiscal revenues and protect against Dutch disease. Russia’s Stabilisation fund is a classic example which prevented the emergence of Dutch disease in the country.

SWFs as stabilisation funds are also expected to make investments in ailing domestic companies, as indicated by Kazakhstan’s sovereign wealth fund Samruk-Kazyna. The fund is seeking to buy gold, copper and iron assets which would benefit companies such as London listed KazakhGold Group (LSE: KZG), Kazakhmys (LSE: KAZ), Eurasian Natural Resources Corporation (LSE: ENRC) and Toronto listed Alhambra Corporation (TSX: ALH). Similar investments in local companies are expected by Singapore’s Temasek, CIC and Brazil’s SWF.

According to the International Monetary Fund (IMF) some SWFs are seeking indirect hedges in response to falling commodity prices. This would change the asset allocation strategy in the SWF portfolios resulting in overweighting assets that are negatively correlated with the price of the commodity that funds them. For example, though not exactly a SWF, Gazprom’s investment in Airbus Industries provides a natural hedge against falling energy prices. This may lead to SWFs seeking investments in new sectors and new regions as well as different asset classes that they have not invested in before.

This bodes well for sectors such as natural resources, particularly mining, as they currently have a relatively low exposure amongst current SWFs. At present, SWFs have the highest exposure to banks and financials, even after the market meltdown, followed by real estate and energy. As SWFs seek to diversify into other sectors, the mining sector emerges as an attractive candidate.

While SWFs have already made investments in the mining sector, it is worthwhile highlighting the latest SWF investment in a mining company. The China Investment Corporation (CIC) invested C$1.75 billion (US$1.5 billion) in Teck Cominco’s (TSX: TCK.A and TCK.B, NYSE: TCK) outstanding Class B subordinate voting shares. This acquisition represents approximately 17.2 per cent equity and 6.7 per cent voting interests in the company. Other SWFs may also make similar investments in mining companies with Chinese SWFs however securing the lion share.

SWF investments in the energy sector is expect to be relatively low however, as most of the large SWF sponsoring governments already have an exposure to the sector either through investments already made or naturally through their own economies. SWF investments in oil are therefore expected to come from SWFs from countries that do not have oil resources (such as Korea Investment Corp, Temasek and Government of Singapore Investment Corporation) or from industrial nations such as China and Japan that are heavy energy consumers.

While the objectives of SWFs sponsoring governments cannot be fully ascertained, some display very clear-cut investment aims. For instance, Singapore’s Temasek Holdings acts like a reserve investment corporation seeking to generate returns to its sponsors through investments in diverse industries including energy and resources. Stabilisation funds such as the Kazakhstan National Fund seek to insulate the economy against the price swings of oil, gas and metals, on which the country heavily depends. The Government Pension Fund of Norway seeks to facilitate government savings necessary to meet future public pension expenditures and to support a long-term management of petroleum revenues.

However, concerns by the likes of Mr. Summers and Mr. Paulson are not ill-founded and it is imperative to determine if SWFs can be used as a government policy tool.  Sponsoring countries could use the SWF muscle in a protectionist backlash. SWFs such as CIC can not only ensure base metal and energy supplies, they may also use their clout to gain access to greenfield energy and mining projects in places such as Africa.

Governments have so far not used their SWF clout as a policy tool. SWFs such as Temasek, ADIA, KIA and QIA have indeed remained passive partners. In the case of ADIA, Yousef al Otaiba, Abu Dhabi’s director of international affairs, even assured that they have no plans to use investments by ADIA as a foreign policy tool. CIC in its investment in Teck has also assured that they seek to be mere passive investors. One would fervently hope that SWFs would indeed follow similar policies and usher in a more effective system of corporate ownership.

Sources & Acknowledgements:
Sovereign Wealth Fund Institute, International Monetary Fund, International Financial Services London, Council on Foreign Relations, The Economist, Individual Sovereign Wealth Funds, The Monitor Group

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Winners of the Asian Hedge Fund Awards 2009

The news is a month old… but for thoses who missed it, here are the winners of the Asian Hedge Fund Awards 2009 held in Singapore on the 29 may 2009:

Regional Awards

Presented by:

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Best Asian Hedge Fund
Artradis AB2 Fund

Presented by:

Best Asia ex-Japan Hedge Fund
PMA Harvester Fund

Presented by:

Best Japan Hedge Fund
Prowess of Japan Fund

Presented by:

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Best Singapore Hedge Fund
Artradis AB2 Fund

Presented by:

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Best Greater China Hedge Fund
QBridge Fund

Presented by:

Best New Asian Hedge Fund
DoReMi Fund

Click here for the nominations

Strategic Mandate Awards

Presented by:
Best Asian Multi-Strategy Hedge Fund
Artradis AB2 Fund
Presented by:
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Best Asia-based Macro Fund
BIA Pacific Macro Fund
Presented by:
Best Asian Other Strategies Hedge Fund
Northwest China Opportunities Fund
Presented by:
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Best Asia-based CTA/Managed Futures Fund
The Merchant Commodity Fund
Presented by:
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Best Asian Long/Short Equities Fund
Riley Paterson Asian Opportunities Fund

Click here for the nominations

Judges

The winners were selected by an independent panel of judges based on both quantitative data and qualitative knowledge of the funds listed in the Eurekahedge database.

The five judges are:

Peter Douglas,
Principal, GFIA, Singapore & Chairman,
AIMA Singapore Chapter
Richard Johnston,
Managing Director,
Albourne Partners,
Hong Kong
David Walter,
Director,
Pan Asia Alpha Strategies,
Singapore
John Knox,
Director,
LGT Capital Partners (Asia Pacific) Limited,
Hong Kong
Akane Hashimoto,
Director,
HC Asset Management Co Ltd,
Japan

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We are migrating to singaporehedgefund.com

Right HERE

And we have another successful blog: My Solar News

Give it a try…

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New Views of the Hedge Fund Industry…

We are Migrating the blog here: http://singaporehedgefund.com – faster, better,bigger…….

From our good friends at State Street, here comes their latest report on the Hedge Fund world.

Two major trends are emerging in the hedge fund industry with far-reaching impacts: a migration among the maturing hedge fund industry to third-party administration, custody and specialized services, and the most comprehensive reconsideration of financial regulations in generations. Today’s institutional investors need to understand the ramifications of these trends and participate in shaping the new structure of this critical, but evolving industry.

The global financial crisis is bringing about an evolution in hedge funds that will render significant changes to the industry. Record investment losses and investor withdrawals have cut assets under management by more than one-quarter, consolidation is under way, and both investors and regulators are calling for greater transparency.
The Evolution of an Industry

Two major trends that will have far-reaching impacts are emerging: a migration among the maturing hedge fund industry to third-party administration, custody and specialized services, and the most comprehensive reconsideration of financial regulations in a generation. According to State Street’s annual hedge fund study conducted in October 2008, 84 percent of institutional investors surveyed expect more frequent disclosure of hedge fund positions, while 49 percent anticipate more frequent reporting.

Before the dust from the crisis settles, it will be important for all of the stakeholders in this market to understand the ramifications of these trends and to participate in shaping the new structure of this changing industry. Though forever altered by current market conditions, hedge funds will retain their critical and proven role in institutional investors’ financial portfolios.

You can download the full Document here.

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A new breed of Hedge Fund – smaller and thriftier

We are Migrating the blog here: http://singaporehedgefund.com – faster, better,bigger…….

Here is a good post I found a singaporean Blogger, “the dude”, on It’s all about the moolah.

An industry lately synonymous with losses, liquidations, and fraud is showing signs of recovery. An uptick in new hedge funds suggests that investors are warming to them again. And trends among the newly launched funds show how that high-rolling world has changed in the aftermath of the credit collapse.

Hedge fund formation lay mostly dormant through February, says Bryan Hunter, a partner at Bermuda-based law firm Appleby Global, who structures and advises hedge funds. About 15% of funds shut down in 2008, according to Hedge Fund Research. At the end of the first quarter, the industry had $1.3 trillion in assets under management, down from about $2 trillion in 2007.

Investors began to open their wallets to new hedge funds this year, including startups by hotshots like Joshua Berkowitz, who left Soros Fund Management to start Woodbine Capital in January, and Christopher Pia, who left Moore Capital to start Pia Capital in March.

Despite the steep declines of last year, the industry is starting to regain its allure because of the evident opportunities as the economy bottoms out and starts to recover, says Tom Kreitler of C.P. Eaton Partners, a firm that helps institutional investors place money with hedge funds.

Many new funds are for distressed investments: debt, asset-backed securities, and investments taking advantage of the government’s Term Asset-Backed Securities Loan Facility (TALF). However, managers are also getting back to basics with traditional long/short equities funds.

“Markets are extremely mispriced and inefficient in many areas,” Kreitler says. “There has also been a large reduction in the number of funds; and proprietary trading at the old investment banks, which took out a lot of investment opportunities, has almost ended. Any strategy that uses some asset mix of equities, debt or currencies could succeed given the current dislocation.”

Even so, launch activity is modest. While about 2,000 new funds were launched in 2005, according to Hedge Fund Research, the industry may not even see a tenth of that activity in 2009, many fund-of-funds managers say. This is a good thing given how overcrowded the industry was, says Randy Shain, vice president of First Advantage, which performs independent background investigations.

“The apex was near when everyone and their brother could become a hedge-fund manager. It was a time of easy money and few barriers to entry, but many of those managers probably weren’t going to succeed,” says Shain. And investors were more than willing to fund the boom, lured in by the promise of huge returns.

New funds are also smaller this time around because it’s still hard to raise money, says Jayesh Punater, CEO of Gravitas Technology. Joshua Berkowitz, for example, launched Woodbine with about $200 million; industry experts say he would have launched with $1 billion out of the gate two years ago.

Startups are saving money whenever they can, which often means outsourcing everything that is not part of the proprietary trading strategy. For example, this could mean hiring a company like Gravitas to host back office IT needs like data warehousing.

Industry players see other changes afoot that they say should be beneficial for hedge funds and for investors. Among the themes that have cropped up among this year’s smaller class of funds:

Managers are scrutinized
Thanks to a steady stream of hedge-funds scams, investors won’t put money into new funds unless they’re run by managers with verifiable track records, says Harold Yoon, head of ING Investment Management’s fund of funds.

“We’re seeing established managers launch additional funds on top of those they already run. We’re also seeing well-known managers from established shops strike out on their own,” says Yoon. But it is nearly impossible for anyone else to raise money.

People are asking more questions of managers, says Shain.

“Managers are being asked about whether they’ve been sued before, their trading backgrounds, and what businesses they’ve run. It sounds mundane, but people who defrauded investors were accused of similar shady behavior in the past,” he adds.

Transparency counts
Although the industry is not yet heavily regulated, new funds are being launched with a consideration of best practices and transparency, says Punater. In short, the industry is shedding its Wild West image and becoming institutionalized. Investors want to see real business plans.

In anticipation of a slew of rules, new funds are more transparent in terms of investment strategy and holdings.

Fees are easing
Ten years ago, 1 and 20 was the standard for funds, says Yoon. This means that managers charged investors a 1% fee on their assets just to manage the money and took a 20% cut of the profits. He says fees grew during the bubble years, to an average 2% of assets under management and 20% performance fees. Some players, like SAC, charged up to 3% management fees and 50% performance fees. But investors are balking at such steep payments, and some new funds are offering less onerous terms.

Lockups are looser
New funds may be more flexible about locking up investor money. Managers will want to keep money for longer periods to match illiquid trading strategies, or they may allow investors to redeem their money more frequently, say observers. Either way, new funds will be clear about their terms. Investors are still upset about managers who took them by surprise when they imposed gates and suspended redemptions during the credit crisis.

While these changes are healthy overall, it is largely up to investors whether they are permanent. Says Yoon: “They won’t stick if investors encourage and fund bubble behavior all over again.”

Find this article at:
http://money.cnn.com/2009/05/22/pf/funds/new_hedge_funds.fortune/index.htm

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