Tuesday, 21 October 2014
Last updated 2 hours ago
Oct 29 2007 | 7:45am ET
Investors in troubled hedge fund Absolute Capital Management have given their approval to the firm’s restructuring plans, but one group is promising that this past weekend’s vote in the Cayman Islands would not be the end of the story.
Shareholders of four Absolute funds assented to the proposed changes, placing the most illiquid portions of their portfolios—believed mostly to be U.S. pink sheets—into “side pockets,” and instituting a one-year lockup to allow the firm enough time to unwind those positions. Absolute agreed to a variety of concessions last week in an effort to sway skeptical shareholders.
But those swayed shareholders, led by the so-called Absolute Investors Action Group, are demanding answers as to how founder Florian Homm—who abruptly left Majorca, Spain-based Absolute Capital last month—was able to pour roughly US$500 million of the firm’s assets under management into pink sheets.
“There will have to be an investigation into how the funds got into this position,” William Rodger of law firm Simmons & Simmons, which represents the Action Group, told The Times of London. “My clients want explanations as to what has led to this situation. In this case, they now find themselves invested in these illiquid securities.”
On the bright side for AbCap, Rodger says he sees no need for a criminal probe.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...