Tag Archives: Banking

Chart of the Day: Hedge funds’ changing investor base

The half-yearly report on possible systemic risk created by hedge funds was published last week, and identifies the sources of investment in the industry. It found that pension funds have increased their share, representing 23% of the investor base in March 2012, up from 17% a year earlier [see chart].

As reported by Harriet Agnew, High-net-worth individuals and family offices, meanwhile, decreased their share of the investor base to 12% from 15% over the same period. The regulator collected data on funds with a total of more than $380bn under management, which represents just under a fifth of industry assets.

The results chime with other surveys, and reflect an increasing institutionalisation of the hedge fund industry over the past decade which has gathered pace since the financial crisis. According to Deutsche Bank, institutions – including pension funds, sovereign wealth funds, insurance companies and endowments – now account for approximately two thirds of hedge fund assets, compared with less than one fifth in 2003.

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Paulson to Talk With BofA

Bank of America Corp.’s wealth-management arm will host a conference call Tuesday with Paulson & Co.’s John Paulson, offering some of its financial advisers and their clients a chance to grill the struggling hedge-fund manager, people familiar with the matter said.

According to David Benoit and gregory Zuckerman of the Wall Street Journal, the call comes within days of the decision by a major Paulson client, Citigroup Inc.’s private bank, to stop investing with Mr. Paulson’s firm. That move is expected to lead to withdrawals of about $410 million.

Bank of America’s wealth arm, which includes its Merrill Lynch retail brokerage and U.S. Trust private-client business, had arranged …

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Morgan Stanley Hedge-Fund Capital Raiser Barrett Said To Depart

Morgan  Stanley (MS)’s David Barrett oversaw a unit that raised money for hedge funds and private companies, is leaving after 22 years to look for a job outside banking, two people with knowledge of the matter said.

Barrett ran the New York-based firm’s private capital markets business, where he reported to client-solutions head Wylie Collins and equity capital markets co-heads John Moore and Paul Donahue. Barrett is considering positions at several hedge funds, said one of the people, who asked not to be identified because the information hasn’t been made public.

Since 2008, Barrett developed and led a new business at Morgan Stanley raising money for hedge funds in exchange for fees, the people said.

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JPMorgan loses $4.4 billion on trades; traders may have hidden losses

(Reuters) – JPMorgan Chase & Co, the biggest U.S. bank, said it had lost $5.8 billion in 2012 from disastrous credit bets and that traders might have tried to conceal the extent of the losses earlier this year.

Of the trading losses, $4.4 billion came in the second quarter. But the bank still generated nearly $5 billion of overall profit for the period.

JPMorgan‘s disclosure about traders misstating the value of their positions was the first indication that the problems with the company’s bad trades may have extended beyond bad judgment about markets.

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JPMorgan Shuts Europe Money Market Funds On ECB Rate Cut

By Dawn Kopecki – Jul 6, 2012

JPMorgan Chase & Co. (JPM), the biggest U.S. bank, closed five of its European money-market funds to new investments after the European Central Bank lowered deposit rates to zero.

JPMorgan notified clients yesterday that it won’t accept new investors or money in five euro-denominated money-market and liquidity funds because the rate cut might generate negative returns for investors, the New York-based company said in a notice to shareholders.

The ECB yesterday reduced its benchmark rate to a record low of 0.75 percent and took its deposit rate to zero, with PresidentMario Draghi saying the cuts may have only a “muted” economic impact.

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Is Indonesia the Next Hot Emerging Market? Find Out at Private Equity Happy Hour, in New York City

Private Equity Happy Hour Will Bring Together Indonesian Executives and Professionals for an Evening of Networking and Cocktails in New York City, July 17, 6PM-9PM

(June 18, 2012, New York) As reported in IBTimes, Now that Fitch and Moody have upgraded Indonesia’s credit rating to an investment grade economy, the future is looking up for economic growth for Southeast Asia’s largest economy.

With a credit rating now matching India’s, Indonesia’s poor infrastructure, overloaded roads, government corruption and bureaucracy were among the problems Fitch and other economists pointed out as problems needing work. However, if Indonesia fixes the roads by investing in infrastructure, it may not be able to maintain the debt-to-gross domestic product ratio that led to Moody’s decision to upgrade their credit rating in the first place.

For this reason, attracting investors to build new infrastructure is one of the government’s top priorities. Recently, Indonesia passed a bill to speed up land acquisition and give a tax break to investors helping build roads, bridges and ports or invest in base metals and petrochemicals.

The credit upgrades will also decrease the country’s borrowing costs to build at a time when more developed economies have been downgraded because of their countries’ debt. Indonesia has steadily reduced its debt in the past decade to around 25 per cent of gross domestic product (GDP).

Golden Networking’s (http://www.goldennetworking.net/) Private Equity Happy Hour New York City (http://www.PEHappyHour.com), Tuesday July 17, will bring Edgar Perez, the distinguished expert who wrote the high-frequency trading global bestseller The Speed Traders, and author of the upcoming Beyond China and India: The Remarkable Indonesia Story, to help us Discover Indonesia, the World’ Sexiest Destination for Private Equity. Mr. Perez just returned from Indonesia after interviewing investors, businessmen, government officials and academics. He brings the fresh insights from the country of the 17,500 islands that no emerging markets’ investor, analyst or practitioner can’t afford to miss.

Private Equity Happy Hour receptions are great opportunities for them to speak with unprecedented candidness about their trade, both opportunities and challenges. Former attendees to Private Equity Happy Hour have included senior executives from firms such as AnEx Global Partners, LLC , ARCAP PArtners LLC, Blue Ox Capital, Deloitte Financial Advisory Services, Deutsche Bank, Fisher Enterprises, Hain Capital, Jameson Capital, KC Partners, LLC, Marc Bell Capital Partners, McKinsey & Co., Midsummer Capital, Morgan Stanley, Natixis, Perseus Telecom, RJW Capital Management, Seaport Capital, SteelRiver Infrastructure Partners, Terranova Capital, Ltd., and Veronis Ventures, among others.

Golden Networking (http://www.goldennetworking.net/) receptions have been known to attract executives and professionals not only from financial services but also from all areas of business; Private Equity Happy Hour won’t be the exception, as the country has been named the most attractive emerging markets destination in the world.

Golden Networking is the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net.

The World’ Sexiest Destination for Private Equity Investments

The World’ Sexiest Destination for Private Equity Investments

Indonesia: World’ Sexiest Destination for Private Equity Investments

Indonesia’s gross domestic product will increase 6.5 percent in 2012, the World Bank has said, compared with a global average of 2.5 percent. Indonesia’s growth has so far weathered the faltering global economy, helping it regain an investment grade rating for its sovereign debt at Fitch Ratings and Moody’s Investors Service for the first time since the Asian financial crisis. Standard & Poor’s rates Indonesia at BB+, the highest non- investment grade rating, with a positive outlook.

Therefore, it shouldn’t come as a surprise that new investors are pushing into Indonesia’s private-equity market; newcomers will compete for deals with global firms such as KKR & Co., Carlyle Group, TPG Capital and CVC Capital Partners Ltd., plus local firms such as Northstar Pacific Partners, Saratoga Capital, Yawadwipa and Falcon House. Firms are now shifting focus to companies that will benefit from growing consumption in the world’s fourth-most populous nation, 240 million people, away from natural resources investments.

Golden Networking’s Private Equity Happy Hour New York City (http://www.PEHappyHour.com), Tuesday April 17th, will bring Edgar Perez, the distinguished expert who wrote the high-frequency trading global bestseller The Speed Traders, and author of the upcoming Beyond China and India: The Remarkable Indonesia Story to Discover Indonesia, the World’ Sexiest Destination for Private Equity. Mr. Perez has interviewed Indonesian investors, businessmen, government officials and academics conducting research for his upcoming book. He brings the fresh insights from the country of the 17,500 islands that no emerging markets’ investor, analyst or practitioner can’t afford to miss.